It is a way to increase revenue streams into the District's funds. We would get 50% of the 1% sales tax revenue that Houston charges businesses that are within our District. The down side, depending on your viewpoint, would be having to abide by Houston ordinances (for example, no fireworks) and that full annexation would not be allowed for a period of 30 years. But honestly, Houston is not likely to want to annex us while we are carrying so much debt.
Well, time passed, and last year we had the first opportunity to get an LPAA. The lawyer and engineer did the prep work for the application. Then the lawyer found out that an open meeting was required within the district boundaries. Instead of bringing this to the attention of the Board, he contacted Sharyn Smalls and she told him that there was no facility to hold such a meeting. So the attempt was abandoned. Now, Sharyn and Byron Watson were in the minority on this particular vote. Yet Sharyn, using her power as President, simply did away with the LPAA on a technicality, instead of trying to find a public venue within the district.
Note: We have held open meetings at the Water Treatment Plant in the past. We also could easily have requested the clubhouse at the Alta Cullen apartments for this meeting. None of that was even considered, apparently.
When it was announced at a subsequent meeting that the LPAA didn't go forward because of Sharyn's decision, I was upset. But knowing that we'd have another opportunity to apply in a year, I decided to just hold my tongue. The opportunity arose again four months ago. This time Arthur voted with Sharyn and Byron and the LPAA opportunity was defeated.
At the San Antonio conference, I attended a seminar on district funds and learned that LPAA's are welcome additions to funding streams. Free money! I also had an opportunity to talk with our tax attorney, who was also at the conference, about the Board's decision to not pursue this funding stream. She was shocked and asked why we'd decided not to go for the free money. I said that the only reason given was Sharyn thinking that it would cost more to track than it was worth to collect. I had even volunteered to track the money at no cost to the District, which was dismissed immediately by those in the majority. I asked her if she could let us know how much money we might get from the LPAA and she said that she'd be happy to run the numbers.
On August 21st, I requested that we put an agenda item regarding that information on a future agenda. Sharyn and Byron protested that I had gone way beyond my authority to instruct a contracted vendor to do research without the Board's approval. So, the information that she had already gathered was never to be presented to the Board. I think that's wrong.
I continued to ask the tax collector for the information and she sent me this reply:
I
have found that HC WCID 89 does have 5 businesses that would charge sales tax. I
also believe there are more businesses going in at Cullen & Beltway 8. A
District must have 4 to enter into an LPAA with the City of Houston. I
was told that based on these 5 businesses, the district could receive approx
$2,000 per month in sales tax. This is STRICTLY an estimate since we have not
been given permission by the Board to really put some time into this to
charge for the research.
If this whole matter were to move forward, after
approval , the District’s attorney and engineer would get the agreement drafted
to send to the city and after about 6 months the district would see revenue. At
this time the Board would decide to hire SRI, Inc to track this revenue and to
make sure the businesses were paying and that the State Comptroller has them on
file and transferring all funds to the district ‘s bookkeeper. Please let me
know if you have any questions.
The businesses she mentions on Cullen & Beltway 8 are the now empty strip center called Y Shops. The ones now in business include the Jack in the Box, Sonic, Valero, Exxon, and Fireworks. Let's assume that the addition of the Y Shops would double the potential sales tax. $4000/month would nearly cover the cost of an additional Constable Deputy to patrol our district!
What can you do to rectify this situation? GO VOTE ON 11/6! Be sure to start by going to the bottom of the ballot and locating WCID#89 candidates. The 3 who are challenging the incumbents from Brunswick neighborhoods include Karri Garza, CG Johnson, and Mike Smith. You will be allowed to vote for all three.
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