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Horseshoe Hospitality Services audit by Midland county shows misuse of tax dollars

"We’re here to protect the investment of Midland county taxpayers and that’s what today was about," Terry Johnson, Midland Co. judge said.

MIDLAND, Texas — Emotions ran high at the Midland County Commissioners Court meeting Monday. 

"He disagrees and that's fine, but at some point, we've got to quit name-calling, he-said, she-said. At some point, we've got to say here's what the contract means," Terry Johnson, Midland Co. judge said. 

The issue at hand is an alleged misuse of taxpayer dollars. 

Reports from the Midland County auditor's office claim public funds were given to third party entities illegally. 

The county auditor, Veronica Morales said there were 18 times when tax was taken out but not noted on paper. 

Some of these areas left out were portions of revenue from gratuity amounts, service fees, and other incremental rates from Horseshoe Hospitality Services. 

"I think there's room for Midland county to make more revenue and so, therefore, I'm just presenting the facts of the Commissioners Court regarding some areas where we feel we should receive more revenue from this contract and from the events that happen out at the Horseshoe," Morales said. 

She also explained that money used for incentives and fees completely waived needs to be approved by the court and have public intent.

But Horseshoe Hospitality Services had a different side to tell. 

"To put revenue numbers up there without deducting for taxes, commissions, cost of goods, labor and to suggest that Horseshoe is the recipient of all this money in Midland County is getting just a small percentage... is just deceitful," Joe Kelley, Horseshoe Hospitality Services president said. 

He said these fees the auditor is referring to should not be included and that it's been hard incentivizing people to rent the Horseshoe as Midland isn't a destination city. 

"We've done nothing wrong," Kelley said. 

Commissioners will be revisiting the county's contract with Horseshoe Hospitality Services in the next Commissioners Court meeting on July 13, 2020.  

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