MS Coast city faces financial woes, fires employees, seeks state investigation
The Pass Christian Board of Aldermen has voted unanimously to ask the state auditor’s office to investigate potential financial mismanagement in the city’s code, water and harbor departments, Mayor Kenny Torgeson confirmed.
Torgeson, a former alderman-at-large who took office July 1, said the city had been trying to investigate financial irregularities on its own.
“We need more help to do the investigation,” he said. “That’s why we’re going to the state.”
Alderman-at-Large Victor Pickich said the investigation is about possible “mismanagement of finances.” He said the city was “still trying to track down money” and that the investigation had so far not led to criminal charges.
“We know it’s bad,” he said. But “we have not connected the pieces yet.”
The request for a state auditor’s investigation follows several recent challenges in Pass Christian. The Board of Aldermen voted this spring to fire three employees in the code, water and harbor departments. Pass Christian also has fallen nearly two years behind on audits while trying to investigate the financial issues. The mayor and aldermen did not describe details of the financial concerns because they said the problem’s full scope was still unknown.
The Board of Aldermen’s action followed a 30-minute executive session Aug 5. The meeting’s agenda says the aldermen were discussing a “personnel issue” in the code, water and harbor departments.
The exact focus of the investigation is unclear.
Investigation in Pass Christian
Alderman Barry Dreyfus confirmed the board had directed the city attorney to ask the state auditor to investigate the three departments. He and other board members declined to comment further. “There is an ongoing investigation and any comments I make may jeopardize the investigation,” Dreyfus said.
Jacob Walters, communications director for the Mississippi Office of the State Auditor, said the agency does not “confirm or comment on ongoing or potential ongoing investigations.”
“But I’m not going to call the city liars,” he said. “If they say they sent it over to us, then they probably did.”
Jimmy Rafferty, the mayor when other city leaders say the financial issues arose, said he is “fully supportive of the decisions of the mayor and board of aldermen” but would not comment further.
The board’s vote last week came several months after the city fired the employees in the code, water and harbor departments.
On May 20, the city voted to fire longtime harbor and water billing supervisor Jennifer Lizana. Lizana had worked in the city since 2013, earning top recognition over the years, including being named the city’s employee of the year in 2023. Lizana could not be reached for comment.
On April 2, the city voted to fire Mark Savasta, community development director, and Virginia “Jenny” Lowery, who worked in the code enforcement office. Savasta declined to comment. Jim Waide, an attorney for Lowery, declined to comment except to say he is preparing a formal complaint against the city alleging Lowery was fired because she reported misconduct.
None of the fired employees have been arrested or charged with a crime. The Board met in executive session before announcing the firings, but did not say why they got rid of those employees because it’s considered a personnel matter.
Audit delays
Records also show the city has not finished an audit since 2022.
The 2022 audit flagged several issues, including that the city did not always check to be sure its accounting records matched transactions listed on its bank statements.
Auditors at the time said the oversight could lead to the loss or misappropriation of public money. The city told auditors it would fix past problems and verify its accounting records with bank statements in the future.
Pass Christian leaders now say their internal investigation and request for state help are further delaying the city’s audits. At a meeting in June, City Clerk Marian Governor told the board that an issue in the harbor department had prompted auditors “to do a more intense audit in every single department that is collecting cash.”
“If we can’t get these investigations done, we cannot have an audit,” Torgeson said. Late audits also prevent cities from getting federal grants. At a budget meeting Wednesday night, Pass Christian Fire Chief Dia’mond Woodman said his department has been unable to apply for grants for more than two years.
Pickich said the board learned of the alleged issues in the code, harbor and water departments about six months ago. Torgeson said the city started noticing “mistakes” as it worked on its newest audit. He also said it was unclear how long a state investigation would take.
Walters, in the state auditor’s office, said cities across Mississippi often bring internal findings to the agency and ask for help.
“It’s very common for them to submit that over to us and let us know about it so we could open an investigation, or maybe open an investigation into it if it actually is fraudulent,” he said. “This isn’t a rare case.”
Pickich said a state auditor’s investigation would give the city an “honest, outside opinion” about its finances.
“Mismanagement, I think, is what it boils down to,” he said. “And we’re getting to the bottom of it.”
This story was originally published August 13, 2025 at 5:00 AM.
