SALADO — The Village of Salado returned a disputed $945,625.08 deposit to the estate of developer Ralph J. Collins, closing a 3 1/2-year financial controversy marked by commingled funds, a previously undisclosed demand for repayment and sweeping administrative turnover.
Village officials confirmed the reimbursement to Celts International LLC and the Collins estate after formally inspecting and accepting public improvements for Phases 1 and 2 of the Salado Center commercial development.
The payout resolves a protracted administrative dispute over the purpose and handling of the money.
Interim Village Administrator Uryan Nelson recently located 2023 email correspondence confirming the deposit served as a performance guarantee for the infrastructure improvements associated with Phases 1 and 2 of the Salado Center development.
Using this newly found documentation, the village and the developer finalized an amended development agreement to officially stipulate the funds’ purpose before releasing the money.
Collins, who died in April 2025, issued the original cashier’s check to the village in January 2023. While Alderman Jim Lassiter previously claimed the check arrived in late 2022 with “escrow” written on the memo line, public records proved otherwise.
The January 2023 check referenced “Salado Center,” and someone manually added the word “escrow” later to the village’s bank deposit slip.
The village deposited the money into its general fund rather than a separate restricted account, where it was recorded as restricted. An April 2026 financial report confirmed the village used the funds to cover “internal cash flow on projects experiencing overages.”
An auditor identified excess spending of nearly $417,000 on streets, police vehicles and playgrounds, along with hundreds of thousands of dollars in interfund loans to keep the wastewater department operational.
Mayor pro tem Neil Dunch publicly described the prior administration’s actions as a “spending spree.”
The April 2026 village report notably omitted a crucial detail: a Jan. 22, 2026, demand letter from the Collins estate threatening legal action if the village did not return the funds plus interest.
The letter arrived just days after the board terminated former Village Administrator Manuel De La Rosa, a move that triggered the resignations of former Village Secretary Teresa Spinks, former Village Attorney Joshua Katz and former Alderman Michael MacDonald.
During the April meeting, aldermen offered brief comments crediting themselves and Nelson while criticizing the previous administration.
“This was asked to have been done by the former village administrator, and it did not get done,” Alderman Allen Sandor said.
“This should have been brought out at the time the district attorney gave their announcement,” Dunch echoed.
During public comments, resident Jim “Junkyard” Boynton said former Mayor Bert Henry and De La Rosa knew the money belonged to the Collins family but never publicized it. Boynton claimed he informed the Collins family about the check in July 2024, just before Henry announced the alleged discovery of the funds that August.
“The former mayor (Henry) and the former city manager (De La Rosa) both knew who that money belonged to. … It was consciously spent trying to cover up a budget shortfall,” Boynton told the current board. “I feel bad for you guys getting stuck with it.”
The controversy previously sparked criminal investigations.
In April 2025, officials filed a complaint with the Salado Police Department alleging former Village Administrator Don Ferguson stole or misappropriated the funds. Police Chief Allen Fields requested a forensic audit from the Texas Attorney General’s Office.
By December 2025, the attorney general and Bell County District Attorney’s Office closed their investigations into Ferguson’s initial handling of the funds and declined to pursue criminal charges.
The Telegram also obtained development agreements signed Oct. 8, 2025, between village officials and Collins’ son, Tim. The signing occurred only days after Henry resigned when Boynton revealed at a public meeting that the mayor did not reside within village limits.
To prevent future mismanagement, the village established a dedicated, restricted fund exclusively for performance guarantees.
Following the $945,625.08 reimbursement, Salado anticipates ending the fiscal year with roughly $400,000 in unrestricted funds. This covers less than two months of operating expenses.
Although state law requires no municipal reserves, the Government Finance Officers Association recommends a minimum unassigned fund balance of two months.
According to the April report, returning the full amount leaves the village’s restricted funds at about $1.98 million.
The Telegram reached out to village officials last week for comment and with several questions. Village Administrator John Benson told The Telegram the village could not respond to the questions in time, but confirmed the timeline above.
