The Eagle Pass City Council voted to permit the city manager to negotiate a professional services agreement — not to exceed $120,000 — to complete the fiscal year 2023–24 audit, following an executive session and split final vote.

Finance Director Castillo told council the city is behind on audit reporting and that completing the outstanding FY 2023–24 audit is necessary to preserve access to grants, maintain creditworthiness and ensure transparent financial reporting. Castillo said bank reconciliations were incomplete when he began work — noting a general-fund reconciliation gap dating to October 2023 — and described a backlog that had to be cleared to allow timely audits going forward.

Staff sought the council’s permission to hire an external auditor (proposal name: Lial and Carter, P.C., per the agenda) to complete the pending audit within a targeted 30–45 day window once engaged. Councilmembers expressed mixed views: some supported a short, contractually referenced timeline and payment terms to hold the vendor accountable; others cautioned that bringing a new firm up to speed could take longer and urged safeguards in the contract. Councilmember Davis explicitly said the 30–45 day timetable appeared unrealistic given the volume of unreconciled items; other councilmembers said the risk of not completing audits on time (grant loss, credit-rating effects) weighed in favor of hiring the firm with strict contractual deliverables.

Before the final vote, the council moved to executive session under Texas Government Code §551.071 to consult with counsel. After returning to open session, a motion to proceed with administration’s recommendation to negotiate the professional-services agreement passed on a 3–2 vote. The motion included negotiating specific terms; council instructed the city attorney to prepare contract language to enforce timeline and payment safeguards. Council did not adopt contract text at the workshop; the vote authorized negotiation and execution subject to final terms and the city manager’s authority.

The council also directed staff to provide additional reconciliations and documentation and to treat future audits as a priority so subsequent audits can be completed by the March 30 statutory target.

The motion to enter executive session passed unanimously before the closed meeting. The final motion authorizing negotiations passed with three votes in favor and two opposed.