Another Controversy Brewing re Southwest Bypass?

Georgetown and Williamson County are jointly planning on constructing a bypass around the southwest side of Georgetown.  The County has the lead on this phase and awarded a $1.75M contract last fall to HDR, a Nebraska engineering firm, for planning and design. A conceptual map from last fall follows:

This map indicates the Southwest Bypass would meet the Outer-loop at I-35 to start forming a "beltway" around Georgetown.

The current route shown below comes from the Capital Area Planning Organization (CAMPO) 2040 Transportation Plan and does not show the bypass meeting the Outer-loop at I-35 to form a beltway.

Evidently sufficient design work has been accomplished to show that there will be a sharp turn to the Northeast near I-35 that will necessitate the slowing of southbound bypass traffic from 70 mph to 60 mph. The long-range plan is for this road to be four-lane freeway.

The sharp turn high-lighted in the red rectangular box is known as the Ox-Bow interchange due to its shape. A rational highway design engineer would eliminate the Ox-Bow and design a smooth transition to I-35.  It is unknown precisely why this design is currently the baseline.

Stay tuned to see if wiser heads impose a change in the baseline.

This is reminiscent of the debacle at the intersection of State Highway 195 and Ronald Reagan Blvd.  The transition between the two roads, both Northbound and Southbound are confusing and require one to twist themselves into a pretzel to navigate through the transition.  There are obvious safety issues also.  Already, an ambulance from a nearby town had difficulty negotiating the transition from Ronald Reagan to 195 southbound.

Hopefully good highway engineering design will prevail.

WOW! Look at Our Solar Electric Provider!

Can this company remain in business?  Its stock price has fallen from $33.45 to $7.40 this morning!  It has been burning cash like at a wiener roast!  It spent approximately $3,500,000,000 more than it earned in 2014.  Most of these funds came from borrowing and stock sales.  That is not a sustainable business model.

Ballot Proposition 1

The Texas legislature voted in the last session to provide property tax relief to ALL Texas residence owners, subject to voter approval in the November 3, 2015 election.

The tax relief is to be effected by increasing the residence homestead exemption from $15,000 to $25,000. The increased exemption will also be applied to frozen tax values, so if you are already 65, or disabled, and your taxes have been frozen, you also will realize a decrease in your taxes, as your tax bill will be recalculated using the new homestead exemption ($25,000 vs $15,000), and the reduction then applied to your frozen tax amount.

The proposition also prohibits cities or counties that have adopted the frozen taxes for the elderly and disabled from reducing or repealing the exemption.  This means Georgetown will have to apply the $25,000 homestead exemption to those in the city that currently have their taxes frozen which will result in a reduction in taxes!

Of course all the city council has to do is raise the tax rate to recover those lost city revenues. But watch out for obtuse methods to be proposed to increase your taxes through all kinds of new fees.

The proposition will also permanently ban a tax on the sale of real estate (transfer tax) in Texas. This closes off another revenue source for our politicians to exploit as they have done in 36 other states!

Proposed Texas Constitutional Ammendents

November 3, 2015 Constitutional Amendment Election Ballot Language

Please visit the Texas Legislature Online home page to obtain further information.

Proposition 1 – SJR 1

“The constitutional amendment increasing the amount of the residence homestead exemption from ad valorem taxation for public school purposes from $15,000 to $25,000, providing for a reduction of the limitation on the total amount of ad valorem taxes that may be imposed for those purposes on the homestead of an elderly or disabled person to reflect the increased exemption amount, authorizing the legislature to prohibit a political subdivision that has adopted an optional residence homestead exemption from ad valorem taxation from reducing the amount of or repealing the exemption, and prohibiting the enactment of a law that imposes a transfer tax on a transaction that conveys fee simple title to real property.”

Proposition 2 – HJR 75

“The constitutional amendment authorizing the legislature to provide for an exemption from ad valorem taxation of all or part of the market value of the residence homestead of the surviving spouse of a 100 percent or totally disabled veteran who died before the law authorizing a residence homestead exemption for such a veteran took effect.”

Proposition 3 – SJR 52

“The constitutional amendment repealing the requirement that state officers elected by voters statewide reside in the state capital.”

Proposition 4 – HJR 73

“The constitutional amendment authorizing the legislature to permit professional sports team charitable foundations to conduct charitable raffles.”

Proposition 5 – SJR 17

“The constitutional amendment to authorize counties with a population of 7,500 or less to perform private road construction and maintenance.”

Proposition 6 – SJR 22

“The constitutional amendment recognizing the right of the people to hunt, fish, and harvest wildlife subject to laws that promote wildlife conservation.”

Proposition 7 – SJR 5

“The constitutional amendment dedicating certain sales and use tax revenue and motor vehicle sales, use, and rental tax revenue to the state highway fund to provide funding for nontolled roads and the reduction of certain transportation-related debt.”

Public Hearing Notice on Airport Fuel Farm

If you are concerned about the expansion of the airport to accommodate larger and heavier airplanes, you should attend this public hearing and make your concerns known and part of the public record.

Doubling of the main runway weight capacity and increasing the fuel storage capacity by 59% certainly demonstrates an increase in airport capacity.  One can logically expect the number of aircraft take-offs and landings will increase to utilize this increased capability.  This will likely result in increased noise levels and frequency of noise events.

Mark your calendars for 10am, October 9 at the City Council chambers.

Abandon “mokusatsu”

Others have noticed the city council and city staff's lack of engagement with residents on issues that are important to many in Georgetown.  Mr Carl Norris has penned a letter to the city and all media and local elected officials about Georgetown's practice of  “mokusatsu”, a Japanese term meaning "silent contempt".  That is an excellent description of how Paul Cartusciello, Bill Holland and John Montgomery were treated at the last city council meeting.  Their concerns were not recognized or acknowledged and the council meeting was abruptly adjourned after they spoke.  You can view the last video, item AP, at the September 8 City Council Meeting to see if you agree.

Some council members have said that the way to influence city policy is to engage council members and city staff privately.  That is indeed one effective way to try to influence city policy, however, many people do not have the time to continually try and set up meetings or engage in telephone conversations with council members and staff as every one is busy and has many demands on their time.  In addition, those kinds of interactions are not transparent to the press and residents of Georgetown and thus generate suspicion and mistrust of city officials.  The city needs to develop an open and transparent mechanism for citizens to engage the council and staff periodically on issues that the residents think are important regarding the governance of Georgetown.

Mr Norris' letter describing his organizations treatment by the city council and staff follows:

Mr. Mayor and City Council,

A group of our ACC associates met on Monday, May 5, 2014 with Mr. David Fulton, Director, TxDOT AVN and Mr. Greg Miller, AVN Planning and Programming Director.  We were advised regarding our concerns of lack of public participation for use of our federal tax funds for GTU improvements per the National Environmental Policy Act (NEPA) that the problem lay with our lack of communication with our city leaders.  We responded that we had been engaged continually with our City Council and/or the GTAB for frank and open discussions for a free flow of information and citizen participation that so far had been denied to us.  We stated we would continue with the hope that eventually our city leaders would listen to us with respect.  However, since we began with our first presentation to City Council on January 14, 2014 to this day we have been met with an attitude by our leaders of what the Japanese term “mokusatsu”, or “silent contempt”, i.e. “to kill something by remaining silent about it”.

 

We respect the need to deprive the public open discussions during regular agenda meetings to prevent anarchy.  However, to deprive the public from controlled, limited agenda workshops for open discussion with leaders and staff especially on federal funded issues is not good government.  To ignore specific respectful public requests for staff information briefings at subsequent meetings especially on federal funded programs is not good government.  For our leaders and staff to refuse to join with members of the public to discuss federal funded programs in meetings sponsored by prominent citizen leaders is not good government.  To respond to such respectful requests with an attitude of “mokusatsu” regarding federal funded programs demonstrates a similar attitude toward the NEPA.

 

Attached is the statement made by an ACC associate to the GTAB at its September 10, 2015 monthly meeting. It is the 47th statement since January 14, 2014.  GTAB reacted with “mokusatsu”.  No workshop.  No direction to staff for information at the meeting or the October meeting.  No comments period!  Mokusatsu has been the continued reaction of our city leaders throughout our past 20 months of requests for quality communications. .

 

This particular request for information regarding the GTU 2015 CIP is especially timely because this proposed federal grant program now composed of 25 projects or components is the center stage issue for the Fuel Farm (aircraft gas station) Draft Environmental Assessment (DEA).  As you are aware, this DEA, the first in the over 36 year history of federal funding for the GTU,  is currently going through its second round of community review and comment process.  It has been revised from its March 2015 version of 80 pages to its current August 2015 version of 363 pages.  The Fuel Farm is not the “proposed federal action” as stated therein.  Rather, the proposed federal action is a 90% federal grant for the entire GTU 2015 CIP shown on page 360 with its total cost of about $10 Million.  Federal taxpayer expenditures for this one proposed grant will be about 90% of the entire federal expenditures for the entire history of GTU federal grants completed as of this date. And yet, no one knows the details, purpose, and objectives of this multiple revised program or those that preceded it.  You don’t know.  The GTAB does not know.  Our citizens don’t know. Our local press does not know nor do they seem interested to know.

 

It is respectfully requested that the city’s attitude of mokusatsu be abandoned regarding issue communications with the general public especially issues regarding expenditures of federal tax funds requiring compliance with the NEPA.

 

Respectfully,

Hugh (Carl) Norris

Member- Airport Concerned Citizens (ACC

City Council Dissing Citizens Again

At the last council meeting, Paul Cartusciello, the owner of Serenity EMS, also known as Ameristat Ambulance, withdrew his application to provide ambulance service in Georgetown. He had purchased Serenity EMS in 2014 and moved it to Georgetown to compliment his other businesses. He said that he had deposited and transacted $7 million dollars in Georgetown over the last four years. He believed he had until September 22 to fully comply with the city ordinance for ambulance service, but, he was jerked around by the city staff telling him he had to comply by September 11 or September 15. He was not able to meet the ordinance requirements on either of the accelerated dates.

Mr. Cartusciello stated that he employed 38 people in Georgetown and he believed that the city has not been welcoming to him and his three companies, therefore he was withdrawing his application to provide non-emergency ambulance service in Georgetown. As such, he will not be authorized to operate his ambulances in Georgetown effective October 1, 2015.

The council did not offer any comment or possible remedy! It would have been common sense to have allowed Mr. Cartusciello additional time to meet the ordinance requirements. There was nothing "magic" about the October 1 date. They could have directed the city manager to meet with Mr. Cartusciello and arrive at a mutually agreeable solution, but, they just abruptly moved on to the next speaker.

The councils unwillingness to engage Georgetown citizens as a body, either in a council meeting, a workshop, or other official city meeting is a direct slap in the face to the citizens of Georgetown. How can the council purport to represent the citizens if they will not formally engage with the people in an official capacity? This needs to change!

New Westside Service Center

The City Council approved construction of a new service center to be built on the west side of Georgetown just off Williams drive.  See the crosshatched area on the map.

The facility will encompass approximately 22,500 square feet and will house approximately 50 utility workers and 30 office personnel. The rationale for building this facility is that Georgetown is growing and most of the growth is on the west side of town.  The city's current facility to house the utility personnel, vehicles and equipment is in the southeast part of town, beyond I-35.  This makes the response time to utility issues extremely long and the work time is reduced due to the transport time for people and equipment to the west side.

It will cost $5,100,000 to build and equip this facility. $4,000,000 of these funds come from bonds issued in 2012-13.  A question to ask is:  How much interest was being earned over the last 3 years while paying the interest on the bonds?  I would estimate interest earned at less than 1% while paying interest of 5% or more.  Inquiring minds would like to know the answer.

An interesting side note is that this facility in not within the city limits.

Constitution Day

On September 17, 1787, the U.S. Constitution was signed by thirty-nine brave men who changed the course of history.  Now CONSTITUTION DAY is a time for us to continue their legacy and develop habits of citizenship in a new generation of Americans.

Join your local citizens in celebrating Constitution Day on Saturday, September, 19 at the Southwest Williamson County Park in Leander from 3pm to 8pm.  There is a host of great speakers, including Sheriff Richard Mack.  There will be music and food also.

Further Proof of Planned Airport Capacity Expansion

It is often said that one should not judge politicians or government officials by their words, but, by their actions.  City officials have repeatedly stated that the Georgetown airport is not being expanded.  However, a draft environmental assessment for a new expanded fuel farm indicates otherwise.

The draft environmental assessment shows that the tank capacity for aviation gasoline is being expanded from 10,000 gallons to 15,000 gallons and the tank capacity for jet fuel is being expanded from 12,000 gallons to 20,000 gallons.  Thus, the total fuel capacity is being increased 59%.  Why on earth would one expand the fuel capacity by 59% unless increased airport airport operations are planned?

This would be like an accountant expanding his internet capacity and workstation capacity by 59%.  Why would he do that unless he plans on expanding his business?  Similarly, why would a small business owner enlarge his sewer capacity, electrical system and loading dock capacity by 59% unless he expected his business to expand to require that additional capability?  The answer is they would not do that.

The actions of the city to double the main runway load carrying capacity and the 59% increase in fuel farm capacity clearly indicate the city plans on increasing the airport operations to include more and heavier aircraft.

The draft environmental assessment for the new and larger fueling station at the Georgetown airport is available over the next two weeks or so.

Draft Environmental Assessment for Fuel Farm

More Hate Mail

It seems every city has its share of haters and Georgetown is no exception as evidenced by the letter below that was received this past week.

TEXAS Leads the Nation in Layoffs

The jobs picture in the US and in Texas is getting worse according to Challenger Gray https://www.challengergray.com/press/press-releases/2015-august-job-cut-report-retail-manufacturing-contribute-41186-cuts

The following graphic shows Texas leading the nation in layoffs.

The Georgetown city council should be cognizant of these trends and hold Georgetown spending down instead of increasing spending by 23% for Fiscal Year 2016.

City Pension Bears Watching

Georgetown participates in the Texas Municipal Retirement System(TMRS) to provide for the retirement of city employees when they become eligible.   As previously discussed, TMRS assumes a 7% growth rate in investment returns when calculating the unfunded liability that the taxpayers are liable for.

The latest investment return reported by TMRS for the period ending June 30, 2015 is 1.99%.  Of course the stock market has declined substantially since then so the investment return to date is likely nonexistent.

Another method used to assess the health of a pension fund is to calculate the cash flow.  Cash Flow is employee contributions plus city contributions minus benefits paid minus investment expenses.  That number should be positive for a healthy pension fund.  TMRS reports Cash Flow of $-47,596,720 for the period ending June 30, 2015.  In order to generate the cash to cover the shortfall, funds generally have to sell assets--this is not a good thing in a down market!

Negative Cash Flow is another warning indicator to Georgetown's city staff and city council that they should be paying close attention to their pension liabilities.

Annexation Fair?

The laws of Texas that govern annexation by cities seems inherently unfair.  Cities have had the ability to involuntarily annex areas adjacent to their boundaries since the passage of the Home Rule Amendment to the Texas Constitution in 1912.  There have been some reforms passed since then as the result of abuses, notably by Houston.  The Extra Territorial Jurisdiction (ETJ) was passed in 1963 which allowed cities to impose ordinances and codes on areas adjacent to the city, but its citizens are not required to pay city taxes, receive city services, nor can they vote in city elections.  This seems to be a "taking" of property rights without compensation or a right to vote.

The cities absolutely control the annexation process and the citizens of the area to be annexed have no voice in the matter, either to object or consent.  It is almost legally impossible under current law to challenge or contest an annexation.  This is definitely unfair and the laws need to be changed to allow the affected property owners to decide, by majority vote, whether they want to be annexed or not.

The most egregious abuser of the annexation laws currently is San Antonio.  They have initiated the annexation process for 66 square miles with a population of 200,000, against the majorities wishes.  They are about to start the process on another 87 square miles with a population of about 50,000.  Also against their wishes.  This would increase the city footprint from 486 square miles to 637 square miles.

Another common abuse, especially around Houston, is the  immediate imposition of city taxes, ordinances, and codes with delays of years to provide city services such as fire, police, water and sewer.  Thus the property owners are required to pay for services that they may not receive for many years.

There are a number of reasons that cities annex property, most can be boiled down to economics, although many other reasons will be articulated.

This is another government process that redistributes wealth from outlying areas to the downtown.  The cities look to annex areas that have already experienced significant growth and thus a "rich" tax base, and they look to annex undeveloped areas that are expected to have significant growth in the future.  Of course, developers support this latter approach as it provides them the opportunity to build developments that they can market as having city services. It is all about the money.

Looking at the city of Georgetown, it seems ripe for annexation activities as the map of the city boundaries shows many gaps and holes.  The property owners in these areas, including the ETJ will have to be vigilant to protect themselves from those who would like to redistribute their wealth into the city coffers.

Let your State Senator and Representative know that you expect them to change the state laws on annexation that will allow the property owners in a proposed annexation be allowed to vote, with majority rule, on whether or not they wish to be annexed.

Economy is Slowing as Georgetown Increases Spending

The overall economy in the US is slowing and Texas is no exception. The following information for the Texas economy during the month of August was gathered by the Dallas Federal Reserve Bank.  The survey information is gathered from all of Texas and portions of New Mexico and Louisiana.

Retail sales declined in August, according to business executives responding to the Texas Retail Outlook Survey. After two consecutive months in positive territory, the sales index plunged from 11.5 to -3.6. Inventories increased at the same pace as last month.

The revenue index, a key measure of state service sector conditions, remained positive but retreated from 19.1 to 9.3.

Perceptions of broader economic conditions reflected less optimism in August. The general business activity index for the service sector declined from 7.9 to 2.1.

The general business activity index for manufacturing in the region for August declined to -15.8 from -4.6 for July.  Demand for primary metal manufacturing and fabricated metal manufacturing are both down as a result of the reduction in oil prices.

With respect to Georgetown, sales tax revenue is up 0.98% year to date over last year.  This is a direct indicator of how the consumer is spending in the current economic environment and is also less than 1/2 the growth rate assumed in the Georgetown FY 16 budget.  Tax revenue in Round Rock is down substantially(-1.9%) year to date.

This is not a good time for the city to be issuing more debt to be paid back by the next generation.  These uncertain times call for prudence in spending and debt issuance by Georgetown.