In Our Opinion: Shock & Awe, Over SM City Council’s Hypocrisy

IN OUR OPINION…

By Melissa Jewett

 Ok, I know it’s been a couple of days after the Tuesday city council meeting, but I needed that time to digest what transpired during this meeting. Therefore…I went back to the video and spent several hours listening and rewinding.

Even two days may not be enough to comprehend the events and the implications cast from this Council meeting. As I return to the video and rewind, I am thinking that cannot be what I just heard. Maybe by the end of this writing, it will sink in!

It is my belief that the support shown by Dr. Trauth and in conjunction with other local business owners who showed up in droves pledging their continued support of Ms. Adriana Cruz, and the vision of the Greater San Marcos Partnership,… This is an admirable trait we can commend and should expect from our local leaders, as a whole, has long been necessary for this community.

In August, I was given the opportunity to sit down and interview Ms. Cruz at length. Undoubtedly, she is a very intelligent woman, who had the foresight to realize that she could do great work with the GSMP and San Marcos region.

Honestly, it does not take one long in her company to ascertain that she is very bright, full of fresh new ideas, teeming of energy, and experience, and San Marcos is very lucky to have her.

However, I find myself chuckling with what I can only describe as bewilderment that our city council seems to display a tendency to run off the smart dedicated individuals.

No, I am not going to go through the long list, but longtime residents will know and remember, without me rehashing.

What is completely baffling is the narcissistic, condescending, and holier than though attitude that was displayed by those on the left side (no pun intended) of the dais.

If you were an outsider listening, you would now have the belief that our city council runs the GSMP Board. They do not, as it is a regional partnership and it is stipulated that the council be allotted one (1) seat on the GSMP Board.

In Tuesday’s meeting, it has been stated by some that our city council stepped way out of bounds during the evening.

Let me be very clear – The City of San Marcos’ financial contributions are imperative to the GSMP budget and operations, which enable the GSMP to attain their objectives. Need I remind you these are Goals shared by the City!

Subjectively, the underlying message from some on council was to blackmail GSMP, do it my way or the highway, even though this investment had been allocated for in the fiscal year 10/2014-9/2015 budget approved on 9/2/2014.

My reasons for writing this are not solely for my frustrations but stem from others as well. Therefore, I have included a PDF of the SM city council meeting minutes from September 2, 2014, from exactly 3 months ago, to the date.

To make this easier to read, I have included the pertinent excerpts from the original minutes.

Also included below, is a paragraph from an article we published yesterday “What’s the Deal with City Council’s Financing Incentives,” written by David LeDoux, a Corridor News contributor and San Marcos resident. In his article, he mentions in part some of what remains so very confusing and leads us to ask the question of why our city council makes the decisions they do.

In the document below, the council addresses three issues, approval of budget, approval of a tax hike, and approval of additional developer incentives. In connecting back to this week’s council meeting, these events are very disturbing.

Item 9 on the attached 9/2/2014 council minutes states:

Consider approval of Ordinance 2014-45, on second and final reading, adopting a budget in the sum of $173,012,418 for the fiscal year beginning on October 1, 2014 and ending on September 30, 2015; authorizing certain adjustments to the budget with the approval of the City Manager; and approving fiscal year 2014-2015 Capital Improvements Program Projects; and a motion to ratify the property tax increase reflected in the budget.

Mayor Guerrero stated that a Public Hearing regarding the City’s 2014-2015 Budget was held on August 19, 2014, and that today’s agenda item was to approve the budget on second reading and ratify the property tax increase reflected in the Budget.

A motion was made by Mayor Guerrero, seconded by Council Member Prather, that Ordinance 2014-45 be approved on second and final reading. The motion carried by the following vote:

For: 7 – Mayor Guerrero, Mayor Pro-Tem Thomaides, Deputy Mayor Pro Tem Becak, Council Member Thomason, Council Member Scott, Council Member Prather, and Council Member Prewitt

Against: 0

Let us take a moment on the above item. If you go back and review the video, this item passed in about 60 seconds to SPEND a little over $173 million. Ok…I understand, I am a business owner and every business, household and yes government entity needs a budget and reality is life is not free.

My point is, in that approved city budget was $360k for contributions to the GSMP. Council Member Thomaides reminded us at this week’s meeting in which their investment in GSMP funds comes out of the city’s general funds budget.

Next, is item 10 on the attached 9/2/2014 council minutes;

Consider approval of Ordinance 2014-46, on second and final reading, setting the Tax Rate for the 2014 tax year at 53.02 cents on each $100 of taxable value of real and personal property that is not exempt from taxation; levying taxes for the use and support of the Municipal Government of the City for the Fiscal Year beginning October 1, 2014 and ending September 30, 2015; providing a Sinking Fund for the retirement of the bonded debt of the City.

Mayor Guerrero announced that as required by State Law, two public hearings have been held on the City’s 2014 Tax Rate. Today’s agenda item was to approve the Tax Rate Ordinance on the second reading.

A motion was made by Mayor Guerrero, seconded by Council Member Scott, that the property Tax Rate be increased by the adoption of a Tax Rate of 53.02 cents per hundred, which is effectively a 4.2 percent increase in the Tax Rate. The motion carried by the following vote:

For: 5 – Mayor Guerrero, Council Member Thomason, Council Member Scott, Council Member Prather, and Council Member Prewitt

Against: 2 – Mayor Pro-Tem Thomaides and Deputy Mayor Pro Tem Becak

You might be asking yourself, “What just happened”? Well our council just passed a budget and a tax hike back to back, and they just slid it in, and of course, they put the budget vote first.

Now…have some patience, as the next item should bring in the last piece of the puzzle for you.

Item 14 from the very same council meeting minutes for 9/2/2014

Consider approval of Resolution 2014-121R expressing the City Council’s continuing support of the Paso Robles Development within Tax Increment Reinvestment Zone No. 4; directing the City Staff to proceed with preparation of all documents necessary to increase the total amount of project expenses eligible for reimbursement with tax increment by an additional $10,000,000; and providing an effective date.

For:7 –Mayor Guerrero, Mayor Pro-Tem Thomaides, Deputy Mayor Pro Tem Becak, Council Member Thomason, Council Member Scott, Council Member Prather, and Council Member Prewitt

Against: 0

In David LeDoux article yesterday, he dissects this item by explaining.

“the City Council quietly, but unanimously, approved an increase in the Paso Robles TIRZ. Originally approved in 2010, Paso Robles had an existing TIRZ worth $20 million.  The City Council unanimously approved a $10 million increase to the Paso Robles TIRZ for a total reimbursable amount of $30 million.  In less than a minute’s worth of discussion at their September 2nd meeting, the City Council approved giving away $10 million dollars’ worth of tax revenue to be generated on the property.  Tax revenue that would otherwise have gone into the City’s general fund to support operations. So the City Council approved giving away $30 million in potential tax revenue for a project that has yet to turn a shovel in the four (4) years since its initial approval”

In reality smart growth, done correctly, is a good thing and is desirable for San Marcos, in short if you’re not growing your dying, and I know David LeDoux feels this way as well.

Do not think for a moment I am against the additional $10 million council gave Paso Robles development,  if it’s necessary, but I am going to state either the majority of our city council are complete hypocrites, or at the very least have extremely bad memories.

I am always about the math, so a quick breakdown for you: 

Imagine a different scenario; the city gives GSMP $10 million, which in reality would fund the city’s portion of the Greater San Marcos Partnership’s budget for almost 28 years…

My money would be on Ms. Cruz and her team, betting they would pay that back in spades enticing new business ventures thus increasing tax receipts across the board.

The domino effect is now a benefit for Paso Robles (again, who after 4 years has not even built one house) enabling them to sell housing to the people who own and operate those new businesses, who in turn repay the TIRZ tax bond debt the city obligated to reimburse the developers for the cost of infrastructure.

The math says business creates more income for a municipality than property and city council combined.

If you are interested in this weeks city council meeting you can find it at; http://san-marcos-tx.granicus.com/MediaPlayer.php?view_id=9&clip_id=865