Argyle Town Council Member Ronald Schmidt said he had a “moral obligation” to share what he learned about Denton County Emergency Services District No. 1 at the July 17 town meeting.
Schmidt said he attended a meeting at the ESD 1 during the first week of July and heard information that was concerning. The department asked for money from the town, which council approved in June.
He said although he did not like what he heard, he said he still felt obligated to pass the information along and thinks the ESD needs an audit of its books. ESD representatives were at the meeting, and Schmidt returned to council to give direction to city staff about what the town should do regarding the ESD.
The backstory
As previously reported in Community Impact, ESD 1 Capt. Sam Johnson said in June that former Argyle District Chief Troy Mac Hohenberger falsified the ESD’s budget, leaving the department with an operational deficit of between $1.5 million-$1.9 million.
Hohenberger pleaded guilty May 24 to federal theft of funds and theft or embezzlement from an employee benefit plan. He was indicted in November and awaits sentencing. Johnson, who spoke as president of Argyle Professional Fire Fighters Local 5190 and not in any capacity as the fire department representative, said the department could run out of money for personnel by August if it can’t receive money from outside sources.
Zooming in
“By the time we were done, it was so confusing; it was so convoluted,” Schmidt said about the ESD 1 meeting July 7.
He added he didn’t blame anyone there and that they were “trying to do the best they can.”
Schmidt, who said he holds two accounting degrees, pointed to how council recommended last year that the ESD have a new board with new members and that a forensic audit be performed.
“Neither one of those have fully been executed,” Schmidt said.
The details
Schmidt gave some background, explaining how ESD 1 and the Argyle Volunteer Fire Department functioned, including financially. He said the volunteer fire department has never been audited and that there is backpay of $3.1 million of overtime compensation it has not paid to firefighters of both departments. He also said ESD 1’s deficit was not only because of the activities of the former chief, but “mismanagement in general.”
He recommended that there be a “complete reshuffle” of the board as well as a forensic audit of the voluntary fire department. He said he hoped local cities would join Argyle in making this recommendation to the Denton County commissioners.
Council Member Casey Stewart said he agreed with Schmidt that he didn’t have confidence in the ESD 1’s process. Town Administrator Erika McComis said the town should be a partner with ESD 1 going forward and agreed a forensic audit should be conducted.
The outlook
Council wanted McComis to find out what entity the ESD is accountable to and see whether the county could fund or help with the cost of the bulk of the audit. McComis said the town wants to acknowledge the efforts of ESD1 Chief Ricky Vaughan.
