LA MARQUE – City Council is warning of a financial emergency after revealing the city has just $1.2 million left — enough to cover only two weeks of expenses.

During a tense two-hour council meeting on Monday, City Manager Barbara Holly stressed that the crisis is not linked to fraud but to years of overspending and inaccurate budget estimates. City funds were not properly organized into separate accounts, leaving leaders unaware of the full shortfall.

“We’ve been spending more than we have coming in,” Holly said.

The council has approved a recovery plan presented by the city’s newly hired financial director, Worth Ferguson. The plan includes a proposed property tax increase to $0.45 per $100 valuation, along with potential water and sewer rate adjustments, a short-term emergency loan, grants, and a request for financial assistance from the Economic Development Corporation.

Ferguson noted that even a modest tax increase of six cents could generate an additional $900,000 in revenue. City leaders said that any tax hikes would be temporary, designed only to stabilize operations until long-term fixes take effect.

If new revenue isn’t secured soon, officials warned that the city may also not be able to make payroll, potentially leading to layoffs.

Several citizens voiced frustration at the meeting, with several residents demanding answers: “We want to know where the money has gone.”

Ferguson said rebuilding La Marque’s finances will require difficult but necessary decisions. “We’re looking at every option available — from loans and grants to revitalization funds,” he said.

For now, city officials are racing against the clock to prevent both services and paychecks from being disrupted.