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VOL 8 No. 31
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FORT BEND FAIR. BALANCED. INFORMATIVE. WEDNESDAY, AUGUST 5, 2015
P. O.BOX 623, SUGAR LAND, TX 77487-0623
Official newspaper of Fort Bend County, Missouri City & Sugar Land
Sheriff’s office begins probe of allegations in LCISD elections
During Commissioners Court meeting on July 28, Dave Manz from U.S. Communities presented the Fort Bend County Purchasing Agent with a “U.S. Communities Appreciation Award.” Each year the award is granted for saving taxpayer dollars by using cooperative purchasing agreements. Only 15 agencies receive the annual award out of 55,000 participating entities. U.S. Communities is the leading national government purchasing cooperative, providing government procurement resources and solutions to local and state government agencies, school districts, higher education institutions, and nonprofits. Fort Bend County Judge Bob Hebert said, “We are honored to be recognized for the efficiency, dedication and hard work of the FBC Purchasing Department. This frugal attitude is a core value of FBC Commissioners Court and I am proud of the Purchasing Department for their commitment to this value in service to the community.” Above, Dave Manz, left, presents the award to Debbie Kaminski, Assistant Purchasing Agent and Cheryl Krejci, Senior Buyer, in the absence of Fort Bend County Purchasing Agent Gilbert Jalomo.
By SESHADRI KUMAR The Fort Bend County Sheriff’s Office has begun an investigation into recent allegations made in the Lamar CISD board elections. “Our office has been asked to conduct an investigation into recent actions and allegations being made in the most recent LCISD election,” said Sheriff Troy E. Nehls. “The allegations being made are receiving an enormous amount of attention and it is our responsibility to conduct a thorough investigation.” The investigation is being conducted by the Sheriff’s Office Fraud Unit. No other comments will be made during the investigation, Nehls said. The genesis of the allegations was the statement made by a newly elected Lamar CISD Trustee, Dr. Tyson Harrel during the June 18 board meeting that he and trustee James Steenbergen were offered cash in an envelope by
Jim Gonzales, president of IDC, Inc. The statement was made during a discussion to award the contract for bond projects to Gilbane Building Co. of which IDC was a subcontractor or consultant. The board of trustees did not award the contract to Gilbane as was originally proposed, but Rice & Gardner received the contract. Meanwhile, Jim Gonzales, maintaining that he had done nothing wrong, recently filed a lawsuit in Fort Bend County against Lamar CISD and school board members Tyson Harrell and James Steenbergen. Gonzales and his company IDC, Inc., are seeking damages in excess of $1 million. Nearly six weeks after the alleged wrongdoing surfaced during the Lamar CISD board meeting, the sheriff’s office disclosed the ongoing investigation. The school district has re-
mained aloof from the allegation on the ground that no school district official or employee has been accused of any wrongdoing. It is not known who made the official complaint with the sheriff’s office. The allegations implied that a contractor doing business with the LCISD has offered cash as campaign contribution to the trustee candidates during the May 2015 elections and one of the trustees is quoted as saying, in published reports, that the candidates did not accept the cash. Under the Texas Election Code a cash contribution of more than $100 is illegal. It is to be established if there were any such illegal cash contributions made and in this case, it appears to be “attempted illegal contribution.” The investigation by the sheriff’s office should shed light on what actually transpired and if there was any criminal wrongdoing.
Why are elected officials averse to cutting property tax rate? By SESHADRI KUMAR Fort Bend County’s economy is booming. Sales tax revenue is growing impressively. Property values have increased close to 12 percent in Fort Bend ISD and nearly 8 percent in Sugar Land. Homeowners are set to get a token relief in higher homestead exemptions, but not enough to offset the increased valuation. Neither the school district nor the city of Sugar Land is proposing any increase in the property tax rate. Yet, the cities, the county and the school district will receive substantially more tax revenue than last year. FBISD and Sugar Land budgets justify no change in the tax rate as expenditures have increased that would require the higher tax revenue. The county is likely to adopt a token cut in the tax rate of one cent or less. Elected officials point to the growth in population and demand for increased services to justify higher budgetary expense. They take pride in saying they have not increased the tax rate. If there is so much growth
in tax revenue, more than enough to pay for growth in services, why not return some money back to the taxpayers is a logical question. But, elected officials are cautious and almost reluctant to utter the word tax cut. What happens if the economy tanks next year, especially given the falling oil prices, they ask and want to keep more than enough rainy day fund. To address the demand of some taxpayers asking for a tax cut, as the school district revenue rose by about 10 percent, Fort Bend ISD has taken pains to explain why there can’t be a tax cut. FBISD website prominently features an article captioned “Straight Talk about the 201516 Fort Bend ISD Budget and Tax Rate.” What would happen if we lowered the M&O tax rate by one penny, or more pennies? Answer: Each penny of tax rate equates to $3.1 million of collections. A reduction of three pennies would reduce revenue to the extent that we would not have been able to give teachers and employees a raise of 2%.
Opinion: Inside Track By Seshadri Kumar “The District anticipates the proposed increase in the homeowner exemption to be approved by voters in November 2015. “The $0.30 tax rate for Debt Service takes into account the reduction in local taxes. “The State has promised the school districts to make up this gap in funding, but FBISD is approaching this upcoming year as if we will continue to not receive State aid for our debt service fund. “The district’s total revenue per student is determined by the state funding formula. “As property value increases, the State’s share of revenue per student decreases. As property values increase, we expect the state’s share of our general fund budget to drop to
40.9% for 2015-16 and down to 36.4% by the 2016-17 school year.” If the school district reduces M & O tax rate, its local revenue would go down. Why would not the state fund that shortage? Why would not the school districts use this strategy to take advantage of the increase in property values? The school district does not believe the state will keep its word because even when the state promised to reimburse the loss of revenue due to higher homestead exemption, the school district does take into account that revenue. Tax payers should read the district’s “straight talk” and see if the district really makes a valid case for not giving a tax cut. Sugar Land City Manager filed a $234 million budget recently, which includes $56 million for capital projects. The city manager in his presentation says: While the revenues in the FY16 budget are based on assumptions of 6% growth in the tax rolls from revaluation, the operating budget is built around an assumed 3% increase; additional tax revenues that would be generated by the higher revaluation are being redirected toward pay as you go capital improvements, pending receipt of the certified tax roll at the end of
July. City Council will have the opportunity to review the certified tax roll and required calculations before setting a tax rate for 2015. To seek the opinion of Sugar Land City Council members, Fort Bend Independent sent an email to the mayor and council members. “The average increase in valuation is 12 percent according to the CAD. Assuming a conservative estimate of a 6 percent growth in Sugar Land, in your opinion, what would be the ideal way to deal with the additional revenue? Would you recommend using the money to pay for capital improvements? Would you consider a proportionate reduction in the rate? If not, why not? Or would you consider a combination of tax rate reduction and spending on capital projects?” At press time, only Council members Joe Zimmerman and Harish Jajoo responded. (Zimmerman and Jajoo are expected to run for mayor next year, though they have not made any formal, public announcement yet.) Zimmerman said: As you know, Sugar Land City Council will begin the formal budget process next Thursday
with a series of workshops in which we will review our projected revenues (Sales & Use Tax, Ad Valorem Tax, Miscellaneous Fees & projected revenues from the various Enterprise Funds) and expenses for every department. Our process allows City Council to discuss the details of the assumptions used by our City Manager and Staff in preparing the 2016 Budget as well as provide staff with any direction and/or input. It will culminate in the adoption of a 2016 Budget and establishing a tax rate to fund that budget. While I am happy to answer your questions once the budget process is complete, any comments at this time would at best be premature. Jajoo said: While the upcoming budget workshops will provide more details on the budget filed by the city manager, as a fiscal conservative, I believe that any revenues from the property tax which are over and above our filed budget should be returned to our tax payers in the form of tax rate reduction. This year in particular, the property values have gone up significantly (latest estimate by FBCAD indicate an average of 9% in Sugar Land) and any relief we can provide to our tax payers will be the right thing to do.
The fourth Convenient Care Center in the Memorial Hermann Health System opened on Aug. 3, in Sienna Plantation. Greg Haralson, Sr. Vice President, CEO of Memorial Hermann Sugar Land Hospital, along with state representative Ron Reynolds, Fort Bend Chamber of Commerce President, Keri Schmidt, Missouri City Mayor Allen Owen, were joined by leaders from Memorial Hermann for the official ribbon cutting. “The Convenient Care Center is an extension of many of the high quality services Memorial Hermann is known for in one convenient location,” says Haralson. “The walk-in center will also allow for easy access and transfer to other Memorial Hermann hospitals should the patient require an even higher level of care.” The 16,000 square foot facility offers a full service, 24-hour emergency room, a full lab as well as breast screenings and imaging. Later this year, primary care physicians from the Memorial Hermann Medical Group will also see patients at the CCC in Sienna Plantation.