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by Caitlin Leggett
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ABILENE, Texas — City officials gathered Friday afternoon to address a nearly $800,000 budget shortfall that has left Cisco residents seeking answers.
RELATED | City Council opens investigation into Cisco's financial mismanagement
Approximately a dozen community members and council members were present for the update on what has been a six-month review of the city’s finances.
“Whereas the Texas Rangers have been notified, they incur inquiry and decided not to pursue an investigation of wrongdoing by any current or prior employees related to this city's budget shortfall,” she said.
During the meeting at Cisco City Hall, City Manager Sarah Adams said the issue stems from poor financial management, not criminal activity.
“There is evidence of significant problems with the city’s internal financial controls and record keeping,” Adams said. “Negligence and poor management practices are contributing factors to the financial situation.”
The budget concerns surfaced last fall, shortly after former City Manager Darwin Arch resigned. Following his departure, unpaid debts totaling more than three-quarters of a million dollars were discovered. That prompted the city council to request an investigation through the Eastland County District Attorney’s Office, which included the involvement of the Texas Rangers.
Adams confirmed there was no theft, and the Rangers will not be conducting a formal investigation. She also said a forensic audit is not necessary at this time.
Still, city leaders are taking steps to evaluate the full scope of the debt. The finance committee is currently reviewing the budget to determine the actual shortfall and will make recommendations to help close the gap.
“The Finance Committee, upon completion of their review, will present to the Cisco City Council recommendations that can be undertaken in whole or in part to bridge the gap between revenue and expenses,” Adams said.
KTXS will continue to follow this developing story and provide updates as the city moves forward.
