Nearly a decade after dissolving the Chamber of Commerce due to an alleged misappropriation of funds, Pearsall city councilors have made a unanimous decision to fund the entity with strict guidelines.
The city began talks with local business owners and community members to re-establish the organization in November 2022. In October 2014, then-City Manager Richard Alvarez and the council at the time had ordered an audit of the organization after learning the Chamber of Commerce had overdrawn its account by some $40,000, according to former Mayor Davina Rodriguez.
Further investigation at the time showed checks totaling $186,102.86 were either cashed or deposited at a local bank by the Chamber between April 2013 and January 2014.
Pearsall City Manager Federico Reyes told councilors the city has allocated 40 percent of its quarterly hotel occupancy tax revenues to the Chamber for the 2023-24 fiscal year.
“Simply because we have other expenses,” the city manager said of the allotment during a Tuesday, September 12 meeting. “Like the Hispanic Heritage Festival and the upkeep of the Civic Center.”
Reyes said the city collects approximately $360,000 annually in hotel tax revenues, of which the Chamber is slated to receive $150,000.
The city manager noted strict stipulations the contract between the city and the organization include requiring that accurate financial records be kept; funds not be allowed to co-mingle; that the Chamber must create a separate account for revenues collected; and all financial records must be readily available for city inspection.
Chamber Vice President Oscar Vasquez attended the Tuesday meeting and extended his appreciation to city administration and councilors for their decision to fund the organization.
“We appreciate anything you guys can help us with,” Vasquez said. “More importantly, we want to be more a part of that, and that is growth.”
