La Marque flags $200K in payments after contract expired

City officials have uncovered over $200,000 in payments made to a grant contractor following the expiration of her contract, a revelation that is heightening scrutiny of La Marque’s financial oversight and procurement practices.

As per the Galveston County Daily News, the revelation, shared by interim City Manager Barbara Holly and Finance Director Worth Ferguson, contributes to an expanding array of financial worries as the city grapples with constrained reserves and persistent budget volatility. Authorities indicated that the payments occurred without a valid contract, prompting concerns regarding internal controls and adherence to purchasing policies.

The disclosure emerges as La Marque grapples with an ongoing financial crisis. In September 2025, a report from KPRC Click2Houston highlighted concerns from city leaders regarding dwindling reserves, which had fallen to approximately $1.2 million. This amount is only sufficient to maintain operations for a limited time at the current spending rate.

Holly and Ferguson have highlighted the necessity for enhanced oversight mechanisms, pointing out that deficiencies in financial reporting and accountability played a role in the current circumstances. Officials noted that the city had previously struggled with inconsistent financial statements and delayed audits, which hindered leadership's capacity to identify irregularities in a timely manner.

According to another report from KPRC, this issue further exacerbates the strain on a budget that is already feeling the pressure. La Marque allocates tens of thousands of dollars each day to sustain essential services, with officials indicating that the city might require millions more to ensure operational stability throughout the year.

Details regarding the contractor involved remain undisclosed, and it is unclear if there are ongoing efforts to recover the funds. 

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