Ethics Controversy Erupts in Austin Over Former City Manager Jesús Garza’s Hiring Decisions

AUSTIN: Ethics Controversy Erupts Surrounding Former City Manager Jesús Garza

AUSTIN — The city of Austin is once again caught up in a swirl of controversy, this time involving former interim city manager Jesús Garza. A complaint has been lodged with the Ethics Review Commission (ERC), claiming Garza violated the city’s code of ethics during his short tenure.

After taking the helm as interim city manager in February 2023, Garza allegedly made improper hiring decisions that have now raised some eyebrows. According to an independent investigation carried out by the city’s auditor’s office, Garza hired two individuals—Joe Canales and Laura Huffman—without obtaining the necessary approval from the Austin City Council. Talk about a major no-no!

What’s the Scoop?

The city’s contract with PFM Financial Advisors, LLC, established back in 2017, was originally meant to provide financial advisory services. However, the roles assigned to Canales and Huffman veered away from the intended scope of work, focusing instead on organizational health, workforce initiatives, and other areas not covered by the original contract.

According to the findings, Canales and Huffman raked in over $265,000 in city funds during their time as subcontractors. And here’s where it gets sticky: the city charter limits the purchasing authority of a city manager to just $76,000. This federal limit means Garza arguably overstepped his bounds by hiring them without going through the council.

City Weighs in

The City of Austin released a statement acknowledging the allegations. They’re letting the process unfold as intended, ensuring that all parties involved get a fair chance to present their sides. A spokesperson said, “The City of Austin has been apprised of this allegation, which has now been referred to the Ethics Review Commission, and will let the process run its course.” Sounds like they’re keeping things formal!

Garza’s Side of the Story

In a statement representing Garza, he asserted his disagreement with both the complaint and the findings. He explained that when he stepped into the role, Austin was experiencing a “perfect storm” of crises—from complications arising after severe winter storms to serious setbacks at the 911 call center. With public confidence hanging in the balance, Garza felt it was crucial to bring in experienced help rapidly.

“In the essence of time, I brought two highly skilled former City of Austin employees to address and solve these issues effectively,” Garza mentioned. He emphasized that these individuals “upended their lives to serve the city” and that their work warranted the compensation they received.

Looking Ahead

As the ERC prepares to weigh in on the matter, the city of Austin and its residents watch closely. Will Garza be held accountable for his alleged missteps, or will he emerge unscathed from this storm? One thing is for sure: the outcome of this investigation could have significant implications for how Austin’s city governance operates moving forward.

With ethics at the forefront of this case, residents are left wondering how local leaders will shape the city’s future, making it imperative that they uphold both transparency and integrity. Stay tuned, because this story is just getting started!