Cleburne City Council 4B Issues

City Council / 4B Board Issues
Print this page Commentary by Alden Nellis (Personal opinions by the author are in parenthesis) The joint meeting of the City Council and the 4B Board went well with only a few rough spots. The new 4B Board, chaired by President Mike Lehrmann, instigated the joint meeting in an attempt to overcome the animosity that had developed between the previous 4B Board and the Council. No votes were taken, but there was a consensus of opinion. There was a lot of discussion about who or what the 4B is. The 4B Board (like the City) is a Texas corporation. It has a seven-member board of directors. The directors are appointed by the City Council to serve no more than two two-year terms. The 4B is charged with completing the seven projects approved by the voters in August, 2001, using the $12.4 million bond proceeds authorized plus the ½% 4B Sales Tax (about $1.6 million per year) to complete the projects. The City Council must approve all expenditures before they are made by 4B. Thus, 4B is not autonomous. Mayor Pro Tem John Warren said that John Q. Public views the City and the 4B as the same. Councilman Bob Force said "4B is owned by the City which is the citizens." Both are so intertwined it is impossible to draw a distinct line between them. The city owns the Booker T. Washington property which 4B will convert to the Booker T. Washington Community Center. The City owns the old Esquire Theater property which was to be the Performing Arts Center. The city owns Hulen Park, home of the Splash Station. They ARE the same and they DO belong to the taxpayers who foot the bills. That begs the question "Why have the 4B Board?" Some of the new 4B members have questioned why they are even there since 4B has no capital funds and the council has complete control. The major problem facing the 4B is that the previous board spent all the capital funds on two of the seven projects - the Splash Station at $4.4 million and the Sports Complex at $8.2 million. They do not like to think they are broke, but they do not have any funds to build the remaining projects. They do have a bank balance of $1.4 million, but that is obligated for debt retirement and maintenance and operations of the two completed projects. They project a gain of $200 - $300,000 per year in their capital position. That means it will be five to seven years before a new project can be started. In discussing how the 4B might get more income, the question of the user fees at the Sports Complex was raised. The Sports Associations pay 4B $5 per child per year. (Compare that to the $5 per visit at the Splash Station. In my opinion something is not right there.) Also, the Sports Associations get the proceeds from the concession stands and pay 4B a very small percentage. (The Soccer Moms, Football Dads, and Baseball Grandparents act like the are sole owners of the Sports Complex.) Mayor Pro Tem Warren said "The soccer moms ... do not own the Sports Complex." (The disparity between user fees at the Splash Station and the Sports Complex must be addressed.) When the discussion turned to what the City could do to help 4B, Councilman Kyle Boles said that the City needs to help all they can. Mayor Reynolds stated that before Splash Station, the city was paying $60 - $65,000 per year in maintenance and operations (M&O) on the swimming pool, and now the city pays nothing because 4B pays the M&O. He said that in effect the City is pocketing that money at the expense of 4B and that is exactly what the opponents of the 4B tax feared in the beginning. His feeling was that the City could help with the M&O at least to the extent they were spending before the Splash Station. Councilman Force suggested that the 4B could lease a project to the City. He did not elaborate, but the obvious extension of his thought would be the 4B could lease the Splash Station to the City, thereby giving 4B some lease income and relieving them of the M&O expense. Dale Hannah, 4B Vice President, suggested the City/4B establish better communications with CISD to see if there could be some help from CISD. One reason 4B went to the expense of building a covered Olympic pool was to accommodate the wishes of the swim team and CISD. The CISD pays a pittance for the use of the Splash Station. President Lehrmann brought up the Performing Arts Center. He reported that Hill College is in the process of purchasing the empty Central Church of Christ Complex. They have approached him about 4B participating to the extend of surfacing the parking lot and renovating the auditorium to make it a Performing Arts Center. Hill College would be responsible for the M&O and would allow use of the auditorium any time. This was only the initial contact and no details have been worked out. Councilman Force suggested that the City work with Hill College directly and bypass 4B. President Lehrmann said "I will second that!" If this comes to fruition, it will allow one 4B project to be completed with very little 4B expenditure. (The Railroad Museum people took a realistic look at the 4B situation and decided that if they ever got any help from 4B it would be years down the tracks. They formed a non-profit corporation and are going it on their own. Truth is, as some of us said before the 4B tax was passed, all of the projects should have been done this way. But all the special interest groups fell for the dangling carrot of "free" taxpayer money. Two of them got it. The others did not.) It was inevitable that the subject of more taxes would come up. City Manager Chester Nolen said that Cleburne by law could raise the sales tax ½% by passing a 4A tax, and the funds from that could free up city funds for other uses. (That was the fear of many of us who opposed the 4B tax, and that is exactly how it worked. It is simply a scheme to bring more taxpayer dollars into the city coffers. Somehow bureaucrats never understand that taxpayer pockets have a bottom.) The 4B tax is a quality-of-life-projects funding tax. The 4A is an industrial development funding tax. The politicians do seem to be getting the message and brought in a quick reality check. Councilman Wes Nelson said they probably could not get citizens to support a 4A tax. Councilman Boles said "We need to stick with 4B." Mayor Pro Tem Warren said "We haven't done too much of what we said we would on 4B. Voters will not go for it." Mayor Reynolds said he is opposed to any new tax or raising any existing tax. (They do listen after all.) The City has a separate gas income fund (Fund 21) which grew by over one million dollars just last month. (This is a slush fund from which the city plans to pay for pet projects. I think this money should be used to pay down the more than $100 million city debt and/or lower the property tax rate. However, if the City is really serious about helping 4B out of its hole, they could use Fund 21 on 4B projects.) They city attorney told them they could not legally make a loan to 4B as one councilman suggested. He added that they could not give money to 4B. (In my opinion, there are ways to do this, and all levels of government, including the City of Cleburne, are skilled at circumventing the rules they do not like. If the federal government can make a $500 million gift to the Booker T. Washington Community Center, why can't the City match it and get that project underway? If the City can bypass 4B and work with Hill College on the Performing Arts Center, why cannot they bypass 4B and work with the new Railroad Museum Corporation to build the Railroad Museum?) The previous 4B Board spent all of the 4B capital funds. Current income (4B tax) meets current obligations but leaves little to replenish the capital fund. Every penny the 4B spent had the approval of the City Council. City staff has worked on all completed and working 4B projects from design through construction. In my opinion, the City is obligated to finish the projects they promised the voters when they were trying to get votes for the 4B tax.

City Council / 4B Board Issues

Commentary by Alden Nellis
(Personal opinions by the author are in parenthesis)

The joint meeting of the City Council and the 4B Board went well with only a few rough spots. The new 4B Board, chaired by President Mike Lehrmann, instigated the joint meeting in an attempt to overcome the animosity that had developed between the previous 4B Board and the Council. No votes were taken, but there was a consensus of opinion.

There was a lot of discussion about who or what the 4B is. The 4B Board (like the City) is a Texas corporation. It has a seven-member board of directors. The directors are appointed by the City Council to serve no more than two two-year terms. The 4B is charged with completing the seven projects approved by the voters in August, 2001, using the $12.4 million bond proceeds authorized plus the ½% 4B Sales Tax (about $1.6 million per year) to complete the projects. The City Council must approve all expenditures before they are made by 4B. Thus, 4B is not autonomous. Mayor Pro Tem John Warren said that John Q. Public views the City and the 4B as the same. Councilman Bob Force said "4B is owned by the City which is the citizens."

Both are so intertwined it is impossible to draw a distinct line between them. The city owns the Booker T. Washington property which 4B will convert to the Booker T. Washington Community Center. The City owns the old Esquire Theater property which was to be the Performing Arts Center. The city owns Hulen Park, home of the Splash Station. They ARE the same and they DO belong to the taxpayers who foot the bills. That begs the question "Why have the 4B Board?" Some of the new 4B members have questioned why they are even there since 4B has no capital funds and the council has complete control.

The major problem facing the 4B is that the previous board spent all the capital funds on two of the seven projects - the Splash Station at $4.4 million and the Sports Complex at $8.2 million. They do not like to think they are broke, but they do not have any funds to build the remaining projects. They do have a bank balance of $1.4 million, but that is obligated for debt retirement and maintenance and operations of the two completed projects. They project a gain of $200 - $300,000 per year in their capital position. That means it will be five to seven years before a new project can be started.

In discussing how the 4B might get more income, the question of the user fees at the Sports Complex was raised. The Sports Associations pay 4B $5 per child per year. (Compare that to the $5 per visit at the Splash Station. In my opinion something is not right there.) Also, the Sports Associations get the proceeds from the concession stands and pay 4B a very small percentage. (The Soccer Moms, Football Dads, and Baseball Grandparents act like the are sole owners of the Sports Complex.) Mayor Pro Tem Warren said "The soccer moms ... do not own the Sports Complex." (The disparity between user fees at the Splash Station and the Sports Complex must be addressed.)

When the discussion turned to what the City could do to help 4B, Councilman Kyle Boles said that the City needs to help all they can. Mayor Reynolds stated that before Splash Station, the city was paying $60 - $65,000 per year in maintenance and operations (M&O) on the swimming pool, and now the city pays nothing because 4B pays the M&O. He said that in effect the City is pocketing that money at the expense of 4B and that is exactly what the opponents of the 4B tax feared in the beginning. His feeling was that the City could help with the M&O at least to the extent they were spending before the Splash Station.

Councilman Force suggested that the 4B could lease a project to the City. He did not elaborate, but the obvious extension of his thought would be the 4B could lease the Splash Station to the City, thereby giving 4B some lease income and relieving them of the M&O expense.

Dale Hannah, 4B Vice President, suggested the City/4B establish better communications with CISD to see if there could be some help from CISD. One reason 4B went to the expense of building a covered Olympic pool was to accommodate the wishes of the swim team and CISD. The CISD pays a pittance for the use of the Splash Station.

President Lehrmann brought up the Performing Arts Center. He reported that Hill College is in the process of purchasing the empty Central Church of Christ Complex. They have approached him about 4B participating to the extend of surfacing the parking lot and renovating the auditorium to make it a Performing Arts Center. Hill College would be responsible for the M&O and would allow use of the auditorium any time. This was only the initial contact and no details have been worked out. Councilman Force suggested that the City work with Hill College directly and bypass 4B. President Lehrmann said "I will second that!" If this comes to fruition, it will allow one 4B project to be completed with very little 4B expenditure.

(The Railroad Museum people took a realistic look at the 4B situation and decided that if they ever got any help from 4B it would be years down the tracks. They formed a non-profit corporation and are going it on their own. Truth is, as some of us said before the 4B tax was passed, all of the projects should have been done this way. But all the special interest groups fell for the dangling carrot of "free" taxpayer money. Two of them got it. The others did not.)

It was inevitable that the subject of more taxes would come up. City Manager Chester Nolen said that Cleburne by law could raise the sales tax ½% by passing a 4A tax, and the funds from that could free up city funds for other uses. (That was the fear of many of us who opposed the 4B tax, and that is exactly how it worked. It is simply a scheme to bring more taxpayer dollars into the city coffers. Somehow bureaucrats never understand that taxpayer pockets have a bottom.) The 4B tax is a quality-of-life-projects funding tax. The 4A is an industrial development funding tax.

The politicians do seem to be getting the message and brought in a quick reality check. Councilman Wes Nelson said they probably could not get citizens to support a 4A tax. Councilman Boles said "We need to stick with 4B." Mayor Pro Tem Warren said "We haven't done too much of what we said we would on 4B. Voters will not go for it." Mayor Reynolds said he is opposed to any new tax or raising any existing tax. (They do listen after all.)

The City has a separate gas income fund (Fund 21) which grew by over one million dollars just last month. (This is a slush fund from which the city plans to pay for pet projects. I think this money should be used to pay down the more than $100 million city debt and/or lower the property tax rate. However, if the City is really serious about helping 4B out of its hole, they could use Fund 21 on 4B projects.) They city attorney told them they could not legally make a loan to 4B as one councilman suggested. He added that they could not give money to 4B. (In my opinion, there are ways to do this, and all levels of government, including the City of Cleburne, are skilled at circumventing the rules they do not like. If the federal government can make a $500 million gift to the Booker T. Washington Community Center, why can't the City match it and get that project underway? If the City can bypass 4B and work with Hill College on the Performing Arts Center, why cannot they bypass 4B and work with the new Railroad Museum Corporation to build the Railroad Museum?)

The previous 4B Board spent all of the 4B capital funds. Current income (4B tax) meets current obligations but leaves little to replenish the capital fund. Every penny the 4B spent had the approval of the City Council. City staff has worked on all completed and working 4B projects from design through construction.

In my opinion, the City is obligated to finish the projects they promised the voters when they were trying to get votes for the 4B tax.