Updated July 7:

Hutto City Manager Odis Jones will approve any expenditures of the Economic Development Corporation after City Council action Thursday night.

The City Council voted 7-0 to run expenditures through Jones indefinitely, after Jones expressed concerns with money spent by the Economic Development Corporation not yielding results.

While Economic Development Corporation Board President Mario Perez and President and CEO Tim Chase explained to the City Council the money has been spent only to bring business back to the community, Jones said the move by City Council will bring more transparency from the group that collects .5 percent of the city's sales and use tax.

“I have two words,” Jones said. “Tone deaf. At a time where citizens are living paycheck to paycheck, with the highest water bills in Texas, we have bureaucrats going on lavish trips. It’s not our money. Taxpayers have invested over $6 million in tax money to the EDC with no return. We have to be stewards of the taxpayer dollars.”

The City Council could decide to form a 4B corporation and appoint board members at its July 20 meeting. If approved, voters will be asked to designate funds from the current 4A structure to the 4B structure, which Jones said will allow for a wider breadth of development in the city.

“We have deals on the table and it’s important to take advantage of the investment opportunities that exist,” Jones said. “We have to improve the quality of life for our residents and spend their money wisely.”

July 6:

Hutto City Manager Odis Jones outlined plans to collect sales tax as a Type B corporation in a wide-ranging memo to City Council members dated June 16. In the memo, Jones said the city’s Economic Development Corporation hasn’t brought results to the city.

Jones said he had “deep concerns about the performance of the EDC,” while recommending the city move toward a Type B corporation to allow “the city of Hutto to be nimble and robust in meeting the growing needs of the community,” Jones wrote.

Jones said the voters would need to approve the switch of the .05 cent sales tax from Type A to Type B. He then outlined the path to accomplish the goal for the Nov. 7 election.

Jones also took the Economic Development Corporation to task for expenditures in the memo.

“Citizens would be outraged to know that just in the first six months of this year, 4 out-of-state trips have been made to such places as Florida, Arkansas, Chicago and Southern California with expensive hotel stays in place like the Ritz Carlton and beach front properties with daily room rates exceeding $400,” Jones said in the memo. “Not to mention local stays in Austin hotels, a mere 20 miles travel from Hutto. City personnel would never be allowed nor would they consider such extravagances.”

Jones went on to say “if these travel expenditures, combined with golf trips, and contributions facilitated networking that yielded results at a 1:3 ration, then that might be excusable. But, with a 0:119 record after the EDC has received more than $6 million in sales tax revenue since 2009, I can not in good conscience recommend anything but moving to a Type B corporation which requires a total restructuring of the current EDC and reestablishing new leadership that will be more accountable to the City Council that provides superior fiscal transparency and oversight.”

Economic Development Corporation Board President Mario Perez said he supports what is best for the city of Hutto. He said in the past, timing wasn't right for the switch, as the growth hasn't come overnight.

Tim Chase, president and CEO of the Economic Development Corporation, said his group has provided funding for the infrastructure that has allowed the city to grow. He said he didn't feel anybody associated with the corporation is satisfied with the amount of new business brought into the city, but feels the money has not been unwisely spent by the corporation.

The move to a Type B corporation was discussed at a special meeting on June 29, and is being discussed at tonight’s City Council meeting, which begins at 7 p.m.