City of Pearland to hire independent auditor after a miscalculation within city's budget

PEARLAND, Texas (KTRK) -- The City of Pearland is looking to hire an independent auditor after an unprecedented miscalculation of their annual budget.

"Here comes the values, and we see the decrease by $1.3 billion. Train wreck, right," Kevin Cole, the mayor of Pearland, said.

He says the $1.3 billion miscalculation means a $10 million shortfall in the city budget that has already been approved.

Cole says they have been working for two weeks to determine how this happened since city staff found the miscalculation.

"I think it's an honest mistake. I don't think any maliciousness at all on any agency's part."

He says the miscalculation came from the Brazoria County tax assessor-collector, who he says has the complicated job of compiling tax appraisals for Pearland from three different appraisal districts, Brazoria, Fort Bend, and Harris counties.

"The different appraisal districts send all this information. It comes in different forms, and different ways that they collect the data. It's very confusing when it all comes in," Cole said.

When the Harris County Appraisal District sent in their numbers, he says the tax assessor-collector in Brazoria County doubled the value.

"So at the end of the day, the $1.3 billion got put into the worksheet twice," said the mayor holding up a stack of papers. "In hindsight, that was a mistake."

Cole says of the $10 million shortfall, $5 million comes from their regular operating budget and another $5 million from their debt services.

They have been working to cover those gaps, and he says residents should feel no impact on safety or city services as they make up this shortfall.

"No change in public safety, no change in streets and sidewalks, no change in what they see in the level of service."

And as for those property taxes, Cole says, "This doesn't affect their tax bill one dollar."

As they work to shore up funds to cover the gaps, Cole says new purchases for city vehicles are on hold.

"There's a few things in the budget we will have to delay."

The Harris County Appraisal District sent this statement saying:

The information HCAD provided was correct.

HCAD provides value information to all - over 600 - the taxing jurisdictions in the county and that information is required by the Tax Code and done in accordance with state law. However, the Truth-In-Taxation calculation the jurisdictions must do is very complex.Any statements about the City of Pearland's budget should come from the City of Pearland.

ABC13 reached out to the Brazoria County tax assessor-collector. There has yet to be a response.

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