Considering our Future..... City of San Angelo

Water Supply Community Projects Economic Development Reauthorization of ½ Cent 4B Sales Tax Published by the City of San Angelo

Consider Reauthorization of 4B Sales Tax Election Date: September 11, 2004 Introduction In 1999 the citizens of San Angelo approved use of the 4B ½ cent sales tax for major community projects like the dredging of Lake Nasworthy. The funds were also approved for economic development and over 1,000 primary jobs will have been created or planned since approval. At an election on September11, 2004 the Citizens of San Angelo will have the opportunity to consider reauthorizing the sales tax in order to fund a new list of community improvement projects. Proposed Projects Three main categories of projects are under consideration. Funds committed over the next 20 years will amount to an estimated $93 million and will be allocated to each project below: § Water Supply – Begin developing additional water resources by considering reuse of waste

water and the development of fresh and brackish ground water and the development of water conservation programs.

§ Community Improvement Projects – Make substantial improvements to the Concho River,

Sport and Athletic Facilities, Coliseum and Fairgrounds including major street improvements in the immediate vicinity, City Parks, some improvements at Fort Concho and the Convention Center and add funding for Affordable Housing.

§ Economic Development – Continue the creation of primary jobs and the diversification of

San Angelo’s Economy ($1 million annually plus growth in sales tax funds). Quick Sales Tax Facts The 4B ½ cent sales tax is a funding source authorized by the State of Texas to enable the completion of major projects. A few facts about the tax follow: § State law requires voter approval to authorize collection and use of the 4B sales tax. § The 4B sales tax authorizes a City to collect ½ cent on each dollar spent on most goods and

services to pay for projects authorized by voters. § On a $10 purchase, the amount of sales tax collected is 5 cents. § Not everything is subject to the sales tax. Groceries and medical services are examples of

items that are not taxed. § In San Angelo, the 4B sales tax generates about $4.5 million annually. § As much as 25% to 30% of the sales tax is paid by people who visit San Angelo to shop, visit

Fort Concho and other attractions, or to attend special events and activities. § The citizens of San Angelo adopted the sales tax in 1999 for a six year period. The City

Council plans to continue using a time limitation for greater accountability by the City. The proposed time limitation this time is 20 years. This term is necessary to fund the water supply projects in addition to the other community improvement projects.

§ All projects approved in 1999 by the voters are complete and will be paid for in 2005. § All projects are directly administered by an appointed citizen board which is named the City

of San Angelo Development Corporation.

Accomplishments So Far . . . . . Projects Completed with 1999 4B Sales Tax

Dredging of Lake Nasworthy Lake Nasworthy Dredging was completed in 2002. The project increased the capacity of the Reservoir by about 2,500 acre feet or by over 800 million gallons. This is enough water to supply San Angelo for a two month period. The dredging also improved safety and fun for boating, water skiing, fishing and other recreational activities.

Spur Arena & Pavilion The completion of the Spur Arena and the renovation of the Pavilion allow for more exciting events in San Angelo and for greater use by citizens. Over 115,000 people now use the Pavilion annually. The Spur Arena now hosts events like Rope America Finals and the US Team Roping Championships.

Coliseum Improvements The Coliseum received a major face lift with a new entry that includes ticket facilities, new restrooms, and improved fire safety facilities. Last year 142,000 people came to the Coliseum for a wide variety of activities and events.

Economic Development Economic development, the creation of primary jobs, is important to San Angelo’s economic strength. So far over 300 primary jobs have been created with another 1,000 + jobs now in the process for a total of over 1,300 new jobs. An Industrial Park has been developed for new and developing industry, and a Business Incubator is operational to help new businesses.

Summary of Proposed Projects and their Funding Allocation ……. The following is intended to give citizens a quick summary of the estimated number of dollars allocated for each project. The funds committed over the next 20 years total approximately $93 million and are allocated as follows: Water Supply: $20.8 million for:

(a) treatment of wastewater and/or treatment of brackish groundwater; and (b) enacting water conservation programs.

Community Projects: 1. Concho River: a) $2.5 million for bank stabilization b) $7.5 million for dredging c) $800,000 for trail improvements 2. Sport and Athletic Facilities: a) $15 million for sport and athletic facility improvements b) $2.5 million for maintenance of facilities 3. Coliseum and Fairgrounds: a) $6.7 million for street and drainage improvements b) $6.7 million for fairgrounds improvements c) $300,000 for coliseum improvements 4. City Parks, Fort Concho and Convention Center: a) $2 million for park improvements b) $300,000 for Fort Concho improvements c) $300,000 for convention center improvements 5. Affordable Housing: $6.7 million for an affordable housing program Economic Development: Approximately $1 million annually for economic development suitable infrastructure and to promote business enterprises. NOTE: All dollar amounts include estimated financing costs for a 20-year period. Final figures

will vary depending on the cost of the project and financing costs.

Priority Water Alternatives . . . . Providing Water for San Angelo’s Future Waste Water Reclamation and Reuse The City uses about 5.2 billion gallons of water annually. About half of this is treated at the waste water treatment plant. This water could be treated further and used for irrigation purposes on parks, golf courses, cemeteries, or treated to the point where it could be stored in an area lake for future use. The development of technology presents more opportunities for the reuse of waste water. Desalinization may be an important part of this process.

Use of Ground Water (Aquifers) San Angelo has diversified by investing in five different reservoirs. Now it is time to continue that diversification by developing ground water sources. Two alternatives are under immediate consideration: fresh groundwater (Hickory Aquifer) and brackish groundwater (salty water in the Whitehorse/Dockum Aquifers). Brackish water will require reverse osmosis or other technology to make the water drinkable. Aquifers provide opportunities to withdraw water for the City’s water supply during times of drought, and also an opportunity to store water that does not evaporate during times of plenty.

Water Conservation San Angelo has already decreased water usage by 30%. This success has come through the conservation efforts of San Angelo businesses and citizens and through the replacement of leaky, dilapidated 2” water lines. Additional programs to encourage conservation education and the use of water saving plumbing fixtures and devices are necessary.

Proposed Concho River Improvements . . . . Protecting a precious natural resource Bank Stabilization Alternatives for bank stabilization include naturalizing the bank with appropriate plants, using riprap (layered rock), and using large cut and stacked rock. The bank stabilization can protect from bank erosion and improve the aesthetics of the river.

River Dredging Over time, silt and debris accumulate as drainage from storms carry dirt, plant material, and other debris into the river. The materials settle in the bottom of the river. Some of this process is natural, but development can significantly add to the problem. The solution is to not only dredge, but to continue building gabion dams which capture the materials before they enter the river.

River Trail Improvements The Concho River Trail System takes many walkers, hikers, joggers, and bikers through many beautiful areas of San Angelo. The Concho River Trail has deteriorated over time. Repair work is needed to make it safe and accessible. Extensions to the River Trail can eventually link important sites like San Angelo State Park and downtown facilities like the River Stage, Fort Concho and the Art Museum.

Refurbish Existing Sport and Athletic Facilities Helping Youth, Adults, and the Economy Improved Fields Many of San Angelo’s sport and athletic facilities do not meet industry standards. Many volunteer organizations do not have sufficient funds to properly maintain these facilities. A beginning step would be to rebuild and refurbish existing facilities and allocate money for maintenance. This would not only benefit citizens, it would also open the door for more tournament play in San Angelo. Tournament play can bring in many visitors who will use or shop at local stores, restaurants and businesses.

Improved Parking Many of the parking facilities are not in good shape. Where pavement exists, potholes are extensive. In many instances there is not pavement. The lack of adequate parking and of paved and marked parking does create safety issues and appearance issues.

Improved Design and Support Facilities Many facilities have grown over time without a plan for development. Some redesign work can be completed to improve function and access. Support facilities like concessions, bleachers, and restrooms can also be developed within the design of the facility to improve the quality of facilities that San Angelo offers.

Coliseum & Fairground Improvements Building on Success and Maintaining a Competitive Edge

Parking, Street and Drainage Improvements Most everyone is aware that the Stock and Rodeo Show almost always brings wet weather. Parking and drainage improvements would help improve the quality of the event for local residents and visitors. Street improvements would improve traffic flow for area residents, visitors, and citizens who use the facilities. Improvements include the extension of 50th Street to Armstrong and improving Grape Creek Road.

Stock Show and Stall Facilities San Angelo competes with other larger and better financed communities in order to keep the annual Stock and Rodeo Show as well as many other events. Additional facilities would allow San Angelo to keep its competitive edge and to keep these and additional events coming to San Angelo. Coliseum Improvements A few additional projects are needed at the Coliseum. The first is the replacement of the sound baffles that line the underneath portion of the roof structure. These baffles help improve the sound and reduce the echo effect in the Coliseum. They need to be replaced because of an accumulation of dust, dirt and mold over the years. Also some painting and a ramp for large trucks is needed for special events.

Improving our Neighborhoods Affordable Housing Projects The Background Many citizens live in substandard homes. Out of the 35,000 homes in San Angelo, 10% or over 3,600 homes need to be rehabilitated or to be replaced. Of these 3,600 homes, over 1,500 are suitable for rehabilitation and over 2,000 are not. The City receives federal grants through the CDBG and HOME programs to assist with housing. The City works to rehab existing housing and to construct new housing under the programs. More resources are needed to keep up with and improve the substandard housing. The Plan Improving housing in San Angelo is a team effort. The City, Christmas in April, Habitat for Humanity, Galilee Development Corporation, the Housing Authority of San Angelo and other entities all play a role in improving housing. The City has identified a number of target areas to revitalize. Some of these communities include: Rio Vista, Fort Concho, Blackshear and Reagan. Neighborhood revitalization is an important part of this process since it involves citizens who live in the area. The citizens as well as governmental entities must have an interest in redeveloping homes and neighborhoods. Additional funding is also necessary. The City will pursue grant opportunities as often as possible, but local support will significantly improve progress. The Priority Quality housing is important to San Angelo. It directly impacts the quality of life of many citizens. It also directly impacts the appearance of our community. Efforts to provide quality housing will improve the quality of life for many citizens. Next Step The City will continue to allocate CDBG and HOME funds for housing, to request additional federal funding, and to work with community groups. Community wide efforts help the overall success. If voters approve of this additional funding, the City will be able to create an affordable housing program as defined in 42 U.S.C. 12745. Financial Plan With additional funding of almost $6.7 million over the 20 year period, an affordable housing program can be established. This fund, combined with other housing grants, would allow for the construction of 6 to 7 new homes annually.

Economic Development: Providing Jobs The Background San Angelo has opportunities and challenges as world wide economic conditions, global competition, and federal government policy bring about many changes. Many corporations have downsized or relocated facilities to foreign countries. In 2003 San Angelo once again reached the total civilian employment of over 51,500 that existed in 1997. The City has yet to regain the total civilian employment of 1998. At that time there were 52,223 employed. During this same time period, San Angelo lost over 1,000 manufacturing jobs and a total of more than 2,000 civilian jobs. San Angelo needs to retain existing primary jobs and to develop new primary jobs. One major change that has already occurred is a shift from manufacturing towards telecommunication and information and financial services. The location of companies like Sitel, Blue Cross Blue Shield, and DCS to San Angelo are examples of change and opportunity in a new economic environment. The Plan Economic development is really a team effort which involves citizens, businesses, the City, the County, the economic development arm of the Chamber of Commerce – “Priority One”, ASU’s Small Business Development Center (SBDC), and San Angelo Industries. In 1999 the City of San Angelo Development Corporation (COSADC) was created with the authorization of the 4B sales tax and it now plays a major role as a team player in the retention and expansion of existing businesses and in the location of new businesses to San Angelo. Funding will remain a team effort as well. Funding for economic development enables the creation of jobs. With the 4B sales tax funds dedicated to economic development, COSADC has contracted with existing and new companies to create over 1,300 new jobs. Of these jobs, over 300 are already in place and over 1,000 new jobs are committed over the next several years. In addition, more than 500 existing jobs have been retained. Facilities for economic development are an important part of the team effort. The City now has an Industrial Park where expanding or new businesses can locate. The Industrial Park has 140 acres of developed sites and an additional 260 acres of land to develop for future business and industry sites. The first customer to locate in the park is an existing company Taylor Publishing.

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The Priorities The creation and retention of primary jobs must remain a priority to offset the economic factors which cause many companies to down-size, out-source, or close down. By law the focus is on primary jobs and not on retail or service jobs. State law outlines in detail the types of jobs that qualify, and they include such jobs as: manufacturing, animal and crop production and processing, warehousing and distribution, telecommunication services, data processing and financial or informational services, scientific research and development, and home and regional offices. COSADC has demonstrated that business retention as well as the location of new businesses to San Angelo must be a priority. Two new businesses have located in San Angelo and at the same time eight businesses have been assisted through retention or expansion efforts. The development of new primary jobs through a local business incubator has also been initiated. COSADC through a partnership with the ASU’s Small Business Development Center and Priority One, created the Concho Valley Center for Entrepreneurial Development (CVCED). This new business incubator has already helped three new companies in San Angelo and has helped create 14 new jobs. This project gives local entrepreneurs an opportunity to develop businesses with primary jobs right here in San Angelo. Next Step Continued funding for economic development is necessary. Out of the revenues collected, a little more than $1 million annually has been dedicated towards economic development. Many positive efforts are underway to find and develop opportunities within the economic challenges ahead. A Reason to Stay More work, employment and career opportunities allow more of our youth to stay in San Angelo. The opportunity to earn a living wage is sought by many in the work force. Compensation levels are on the rise and this trend can improve the quality of life in San Angelo. Financial Plan San Angelo would continue to designate at least $1 million annually towards economic development under the proposed plan. As revenues increase over time, these additional funds would also be available to help with this important issue.

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Ballot Language . . . The City Encourages You to Vote!

SPECIAL ELECTION September 11, 2004

OFFICIAL BALLOT

Make a mark in the space provided beside the statement indicating the way you desire to vote:

The adoption of a reauthorization of a Section 4B sales and use tax within the City of San Angelo at the rate of one-half of one percent to undertake the following projects allowed in Section 4B of Article 5190.6, V.A.C.S (“Act” hereinafter):

1) The use of sales and use tax proceeds for infrastructure relating to the development of water supply facilities for one or more of the following options: water reuse and/or the use of fresh or brackish ground water; and the development and institution of water conservation programs including, but not limited to, education programs and incentives for the installation of water saving plumbing fixtures;

_____ YES 2) The use of sales and use tax proceeds for projects authorized under the Act

including, but not limited to, Concho River improvements; park improvements; sports and athletics facilities and improvements, including maintenance and operations

_____ NO expenses for such sports and athletics facilities and improvements; convention center, Fort Concho Museum, coliseum and fairground improvements; related improvements to enhance the foregoing items; and development and expansion of affordable housing;

3) The use of sales and use tax proceeds for those economic development

purposes authorized under Section 4B of the Act, including, but not limited to, the development, promotion, creation, retention or expansion of business enterprises that create or retain primary jobs, and suitable infrastructure necessary to promote or develop business enterprises.

The term of financing for these projects shall be limited to twenty (20) years, after which time the tax shall cease.

Early Voting – August 25 through September 7, 2004, 8 a.m. to 5 p.m. at the Tom Green County Election Administrator’s Office, 2nd Floor, Judge Edd B. Keyes Annex Building, 113 W. Beauregard Ave., San Angelo Election Date – September 11, 2004