In meetings expected to last all afternoon and into the night, Port Arthur’s City Council will consider a variety of issues beginning with whether to spend additional tax dollars on city streets and affordable housing in a targeted downtown area.

In November, the city’s economic development corporation voted to place an item on the May 2016 election ballot to spend one-eighth of the half cent the EDC gets from sales tax revenue for city streets and maintenance.

Depending on how much sales tax is generated in the city, the EDC is proposing to set aside $4.5 to $5 million over a four-year period for upgrades to city streets.

The EDC is also proposing to $300,000 to $400,000 a year on construction of houses valued at $130,000 each in an area around Fifth and Sixth Streets.

Before either matter can be placed on the ballot for voters to decide, Port Arthur’s City Council will have to approve doing so.

City Council and the EDC will meet jointly at 3 p.m. in a special meeting Tuesday. During the meeting there will be a presentation regarding the city’s housing programs and discussion of the city’s existing and future street maintenance program.

Two weeks ago City Council considered the EDC special funding, but declined to vote on the matter after requesting more information.

Voter approval is needed for both EDC spending recommendations because the projects fall outside of what is allowed under 4A tax dollar spending.

Since the EDC voted to make recommendation that the expenditures be placed on the May ballot, a development firm has expressed interest in refurbishing the old Hotel Sabine in downtown Port Arthur into a housing project by using tax credits.

City Manager Brian McDougal has said he is not in favor of the Hotel Sabine project, but would not opposed to the EDC’s plan to build a few single-family dwellings in the downtown area targeted for revitalization.

“We can’t revitalize our downtown by putting low income housing in it” McDougal said.

Following the special meeting, City Council will meet in closed session to discuss pending litigation, the value of land in the city’s extra territorial jurisdiction and incentives for commercial, residential and/or industrial business prospects.

At 5:30 p.m. Council meets again in open session with a lengthy agenda beginning with the results of the 2014 financial audit.

McDougal said the city received an unqualified opinion, meaning it is the independent auditor’s judgment that the city’s’ records and statements are fairly and appropriately presented, and in accordance with generally accepted accounting principals.

The auditing firm will have some recommendations, McDougal said.

“There are several issues we need to address going forward,” he said. “For example, purchasing. In some cases the city was purchasing items before a purchase order was approved.”

While the audit does contain recommendations, it is completed, though nearly a year late.

State guidelines dictate a municipality should have its audit complete by the end of the month of March following the end of a fiscal year. A fiscal year ends the last day of September each year.

“There were delays in getting the work product to the auditor and it snowballed,” McDougal said of the 2014 audit.

The city is now working on its 2015 audit, which is due by the end of March.

At the same time, the city is expected to officially hire the Houston-based accounting firm BKD. LLP to perform a forensic audit into the city’s’ finances.

The city has set aside $100,000 to perform Phase I of a three-phase deep audit into the city’s books.

Among other agenda items Tuesday, Council will consider:

• A tax abatement agreement with Seahawk Landing, Lamar State College-Port Arthur’s dormitories.
• Application for the Fiscal Year 2016 State Homeland Security Program Law Enforcement Terrorism Preventing funding. This year the city of Port Arthur is allotted $65,081 in federal funding, and expects to purchase radio equipment for the police and fire department with the grant.
• Resolutions approving interlocal agreements between the city and local taxing entities.
• Resolution changing the ways members are appointed to the Zoning Board of Adjustment.

E-mail: sherry.koonce@panews.com

Twitter: skooncePANews