Crony Capitalism

We now have the cost of the crony capitalism($91M) that the City has awarded the developer of Wolf Lakes Village at the northwest corner of Hwy 29 and I35.

Georgetown has been abusing tax-increment financing (TIRZ) for years, diverting tax dollars from roads, public safety, health & human services, and other essential programs in order to subsidize economic development. The main beneficiaries of TIRZ are a few developers and contractors. City taxpayers are often forced to back fill the lost revenue for essential services by raising taxes and fees.

This is the very definition of crony capitalism, picking winners and losers instead of letting markets decide the appropriate use of undeveloped land. Iva Wolf McLachlan, president of Wolf Lakes LP, which is developing the project has been selected as the winner by the City Council. 

The Georgetown City Council gave its initial approval Tuesday to give an estimated $91 million of the property taxes it will earn over a 30-year period on a 164-acre planned development with an Italian village theme to pay for infrastructure costs including five parking garages, utilities and streets. Statesman

The vote on a final approval for the creation of a tax increment reinvestment zone for Wolf Lakes Village will be Dec. 11. Under such a financing tool, the city would continue to collect the same amount of tax revenue from that area that it gets today. But as the area grows in value, 70 percent of any additional tax revenue over the next 30 years would go toward improvements in that district. The amount the city would give would be capped at $100 million.

More Traffic Congestion Coming

Americans are taught at a early age that cars have the steering wheel on the left side of the vehicle and the vehicles are driven on the right side of the road, unlike England where the opposite is true. Now we have traffic engineers telling us that we should drive on the "wrong" side of the road in some instances, namely, when using the diverging diamond freeway overpass.

Welcome to more confusion and congestion coming to Georgetown. This is the same design that has been implemented at RM 1431 in Round Rock. These are a "lot of fun" to traverse at night and it is likely even worse on a rainy night.

Click to Enlarge

It is unclear how this radical design will help the traffic congestion at Williams Drive and Austin Avenue. It fact it would seem to exacerbate the problem by reducing the distance between the switch back from left side of the road to the right side and Austin Avenue.

Keep your "cool" or avoid this area in the future.

Georgetown Enamored with Traffic Circles

It looks like the City has embraced the traffic circle. They plan on installing two on the upcoming Rivery Blvd extension which connects Williams Drive to Northwest Blvd and the new bridge to be constructed over I35

Here is a graphic depicting a traffic circle.

As you can observe this particular traffic circle has two lanes that circulate around the circle intersecting with feeder streets.

As long as the traffic is light, these concepts work well, however, they become points of congestion and driver frustration when the traffic is heavy.

These devices are particularly problematic at night unless they are extremely well lighted and/or the drivers are familiar with their entrance and exit locations.

Check out this nightmare!

Hopefully we will not see this level of traffic congestion in Georgetown for a very long time, but, it does raise the question if traffic circles are a good idea.

SURPRISE! Electric Company Lost $11.6M

Electric Fund
• Electric expenditures exceed budget due to higher than projected purchase power costs. The net of purchased power and CRRs exceed budget by $11.6 million.

More analysis coming later.

Show Me the Money Follow Up

Well, that didn't take long! This is on the Council Workshop agenda for tomorrow.

Council Fund
• The proposed amendment is to transfer funds from the Council fund to the General Capital Projects Fund to partially fund the City Center project (new City Hall and Council Chambers/ Muni Court). This action is in lieu of selling the Visitors Center building.

General Capital Projects
• The proposed amendment is to transfer funds from the Council fund to the General Capital Project to partial fund the City Center project (new City Hall and Council Chambers/ Muni Court). There is no adjustment to the expenses. Staff is recommending to reduce the budgeted revenue from the sale of the buildings by $1,108,200 and increase the transfer in from the Council fund by the same amount.

So, the additional funding to complete the City Hall is coming from the City Council Fund, aka the Council Slush Fund! Good use of those excess $s.

Local Control

Liberal local governance has flourished under a misguided interpretation of local control, and, if left unchecked, it threatens to turn the Texas miracle into a California night mare. Local officials should under stand that local control is not a blank check, nor is it an excuse for tyrannical policies, like oppressively high property taxes and involuntary annexation. Instead, it’s a tool to further the primary purpose of government, i.e., the promotion of life, liberty and property rights. 

In cases where local control is being used to justify oppression and over reach, state law makers have every reason to step in and take action. After all, local governments are creatures of the state, and the Texas Legislature plays an important over sight role. Getting control of Texas’ run away local governments should be a top priority for incoming law makers.

The ultimate in local control is when the control rests with the individual. In our nation, personal liberty and control over all aspects of our life is the cornerstone of our republic. All levels of government should strive to maximize personal liberty while protecting our god given rights!

Show Me the Money!

The City recently authorized closing two deals to sell city property and apply the proceeds to the costs of the new city hall known as Downtown West. The old post office on East Eighth Street sold for $1.5M and the existing council chambers and municipal court building sold for $1.155M for a total of $2.655M.

Prior budget documents have indicated that $6,249,018 in cash would be available to apply to the construction of Downtown West.

Bonds had been sold when the City purchased the old Albertson food store to convert it into a city hall.  When plans changed and the old Albertson store was sold for $3.5M, the proceeds were banked and the original bonds continued to be paid down.

Lets examine the cash elements earmarked for Downtown West.

Albertson proceeds       $3,500,000
Subtract architect fees ($1,014,182)
Old Post Office sale      $1,963,200
Council Chambers        $1,200,000
Visitor Center                $   600,000
Total                              $6,249,018

Observe that both property sales did not meet expectations and the City has decided not to sell the Visitor Center at this time.

The net cash available to contribute toward construction of Downtown West is $5,140,818. And occupancy of Downtown West is projected for early in 2019.

So where is the shortfall of $1,108,200 going to come from?  More bond sales, higher than budgeted revenue, or rearranging other budget items?  Stay tuned!

Ready for More Traffic and Congestion?

The pace of residential development in Georgetown continues at a blistering pace. During the past year, 833 apartment units have been constructed, a 23% increase. Many of these are along Williams Drive.

Another 272 units are being constructed on Wolf Ranch Parkway, behind Walmart, with occupancy in 2019.

The number of planned developments within Georgetown's city limits and its ETJ are eye-watering! A development map can be accessed here.

The principal developments are along Williams Drive and Hwy 29 as those are the only areas available for the City to expand. Areas North, East and South of Georgetown are constrained by existing cities.

Here is the proposed development along Williams Drive and Ronald Reagan.

All this additional housing will bring increased traffic and the need for more services like police and fire. 

Where are the plans to accommodate the increased traffic? Are there plans to expand Ronald Reagan to 4 lanes in the near future? Where is the schedule to add another 2 lane bridge on DB Wood across the San Gabriel River? The City has 4 lanes on DB Wood north of the river and plans to increase DB Wood to 4 lanes south of the river, but, no plans for another bridge? What is going on here with respect to transportation planning?

Beware the Democratic Socialists of America

Democratic Socialists of America, the self-described largest socialist group in the United States, saw four of their candidates elected to office in Texas last week as well as the passage of a DSA-backed referendum.

In a release applauding the campaign wins of Franklin Bynum, Judge-elect of Harris County Criminal Court 8; DaSean Jones, Judge-elect of Harris County’s 180thCriminal Court; Julie Ann Nitsch, Austin Community College Place 9 Trustee-elect; and Danny Norris, Harris County Department of Education Precinct 1 Trustee-elect, the DSA said:

“Yesterday democratic socialists fought and won inspiring election campaigns across the country, representing the rebirth of the American socialist movement after generations in retreat.”

The release goes on to claim success in advancing polices like universal healthcare, a “progressively funded single-payer system,” and a revitalized labor movement.

The group also listed the passage of Austin’s Proposition A, dubbed “Affordable Austin,” as a win.

Prop A was $250 million of an overall $925 million bond package presented to Austin voters. The proposition specifically addressed affordable housing with $100 million going towards buying land, $94 million targeting housing for renters and the homeless, $28 million for affordable housing purchases by low-income residents, and $28 million for home repairs for low-income homebuyers.

Despite being an affordable housing bond, the overall package is expected to exacerbate Austin’s unaffordability crisis, in part by raising property taxes on the average homeowner.

Georgetown residents have to be continuously on guard to keep socialists programs, like affordable housing, out of our local government!

More Creative Ways to Grow the City

The City Council of the City of Georgetown, Texas will hold a public hearing at their regular meeting commencing at 6:00 p.m. on November 27, 2018 in the City Council Chambers, 101 E. 7th Street, Georgetown, Texas 78626 to consider the designation of Tax Increment Financing Reinvestment Zone Number Five (Wolf Lakes) under Chapter 311 of the Texas Tax Code (TIRZ) for approximately 164 acres of land in the City limits, generally situated on the northwest corner of IH35 and its intersection with SHW29 depicted below and the adoption of a Preliminary Project Plan and Financing Plan for the proposed TIRZ. Interested persons are entitled to speak and present evidence for or against the designation of the Tax Increment Financing Reinvestment Zone Number Five.

Georgetown has been abusing tax-increment financing (TIRZ) for years, diverting tax dollars from roads, public safety, health & human services, and other essential programs in order to subsidize economic development. The main beneficiaries of TIRZ are a few developers and contractors. City taxpayers are often forced to back fill the lost revenue for essential services by raising taxes and fees.

New developments im­pose costs on fire and police departments, and other urban services, so city taxpayers must either pay more to cover those costs or accept a lower level of services as services are spread to developments that are not paying for them.

A TIRZ is a seperate legal entity that has its own set of rules to follow.  This will require additional staff or staff time to track and assure compliance with State law.

This particular development will increase traffic and thus congestion on Hwy 29, Wolf Ranch Parkway and the I35 frontage road. Where is the money coming from to expand the capacity of the I35 frontage road and especially Wolf Ranch Parkway? That is a rhetorical question as we all know it will come from the productive citizens of Georgetown through taxes!

No matter how well-inten­tioned, city officials will always be tempted to use TIRZ as a vehicle for crony capitalism, provid­ing subsidies to developers who in turn provide campaign funds to politicians.

Show up at the Public Hearing and let the Council know that the City does not need another TIRZ!  Development will occur without the City partnering with private developers.  Do not lock up future tax revenues that will be needed across the City.

The key question is: Why is the city involved with your tax dollars in economic development? Is that a core function of City government? We believe economic development is 100% the responsibility of the private sector!

Governor Abbott's Proposal to Limit Property Taxes

The Governor has floated a proposal to change the method for financing schools and to limit the growth of property taxes for all state government entities unless voters vote to override the statuary limit. A brief summary of the Governor's proposal can be found here, an 86-page slide show titled “Improving Student Outcomes and Maintaining Affordability through Comprehensive Education and Tax Reforms”. Texas Tribune

The two main arms of the proposal would give school districts financial incentives to improve student performance, as well as cap the revenue school districts can collect from property taxes in order to decrease tax rates. 

The governor's report appears to propose replicating a Dallas ISD program giving stipends to high-quality teachers who choose to work in struggling schools — cited as crucial in helping the district whittle down its list of low-performing schools.

One comment on the proposal to give stipends to high-quality teachers to work in struggling schools; this needs to be coupled with the removal of many rules and regulations that prohibit teachers from being creative and using techniques that work for individuals and individual classrooms. Without these types of reforms, the "good" teachers will get discouraged and burned out!

An overview of the Governor's proposal.

The Governor's proposal on limiting school taxes follows:

Even though the Governor's proposal does not eliminate recapture, it does significantly reduces its growth.

Here is the Governor's rationale for his proposal.

We know that the City of Georgetown is against any limitation on their ability to increase your property taxes, in fact they have publicly stated they are against such limits and they are going to spend your tax money lobbying against your best interest with the Texas Legislature.

We can hardly wait to see the arguments the City puts forth against this proposal. Austin and San Antonio have already advanced the argument that these limits would not let them invest in affordable housing! It would seem they have forgotten the proper role of government which is public safety, transportation, libraries, waste treatment and parks, NOT affordable housing!

It is safe to assume the school district and the county are also against this proposal and are going to spend taxpayer money to try and defeat this proposal.

It would seem that spending your hard-earned money to lobby the legislature against your economic interests is unethical. What do you think?

If you don't agree with your city, county and school district officials, get involved and let your state legislators know you support limits on taxing authority!

Wind Power is not the Answer!

Another analysis of actual data that shows that wind generators have serious limitations.city-journal 

Two Harvard researchers published a paper four days ago showing that trying to fuel our energy-intensive society solely with renewables would require cartoonish amounts of land. How cartoonish? Consider: meeting America’s current demand for electricity alone—not including gasoline or jet fuel, or the natural gas required for things like space heating and fertilizer production—would require covering a territory twice the size of California with wind turbines.

 Rural residents are objecting to wind projects because they want to protect their property values and viewsheds. They don’t want to see the red-blinking lights atop those massive turbines, all night, every night, for the rest of their lives. Nor do they want to be subjected to the health-damaging noise—both audible and inaudible—that the turbines produce.

Interesting Factoid About Wind Turbines

Research is surfacing that infrasound generated by wind turbines is hazardous to human health.notrickszone

Infrasound has a frequency under 20 Hz and thus is not audible to the human ear. However the low frequency sound is physically perceptible at high sound pressure and lead to health consequences, a German medical researcher said.

Wind turbines convert 40 percent of the wind’s energy into power and 60 percent into infrasound, thus making them a real potential threat to human health.

The problem with wind turbines is that the infrasound exposure is long-term and can travel great distances.

The group led by Prof. Vahl conducted an experiment to find out if infrasound has an effect on heart muscle strength. Under the measurement conditions, the force developed by isolated heart muscle was up to 20 percent less.

Citing the results, Prof. Vahl said: “The fundamental question of whether infrasound can affect the heart muscle has been answered.”

Texas officials need to be aware that wind turbines can adversely affect residents health before they approve new wind farms.

Georgetown Receives $1M Solar Grant from Bloomberg

It was reported in the October 31 edition of the Wilco Sun that Georgetown will use the grant to start implementing its idea to lease rooftop space on residential and commercial properties to install solar panels that will generate enough energy to offset the city’s need to purchase power from outside sources.

The City is now admitting that they have to purchase power from ERCOT even though they have repeatedly told us that the city provides 100% renewable energy to its customers.

Just another "lie" shown for what it is!

Here is an excerpt from the Sun article:

From survey responses, staff learned that residents were willing to let the city use their rooftops for free so they could have reliable back-up energy during a storm.

Does the City staff think we are stupid? The sun will likely not be shining during a storm or maybe for several days after a storm. How many days have we seen without sunshine here in Georgetown this year and we have not suffered any major storms. So these roof mounted panels will not provide reliable back-up energy during a storm.

There are many questions that should be answered before any property owner allows solar panels to be mounted on their roof.

1. Will their property insurance and premiums increase to cover the panels?

2. How will these panels affect the value of the property as the panels reach the end of their productive life, 20yrs?

3. A structural analysis will have to be conducted on each roof to determine if the roof structure needs to be strengthened to accommodate the increased weight of the panels. Many older homes will likely require strengthening. Who pays for this?

4. Who assumes liability for the solar panels over their life, the property owner or the city?

5. Who is responsible for the disposal of the panels at the end of their life?

6. Who is responsible for repairing damages to the panels, say from a hail storm?

7. Is the property owner aware and assumes all responsibility for additional costs for roof replacement when there are solar panels installed on the existing roof?

There are likely other relevant questions that will need to be answered.

Did You Know?

Kenric Ward‏ @Kenricward

Replying to @Ryanexpress77 @GregAbbott_TX and 

School districts are going to voters with bond issues every three years (the minimum legal interval). Either that span must be widened or 2/3 voter-approval must be required. #txlege @TeamBettencourt

7:27 AM - 1 Nov 2018 from San Antonio, TX

It looks like GISD knows the law - it has only been 3 years since the last $160M bond election!