Property tax cap
January 18, 2019Wrong solution
December 2, 2018The death of another person on Mesa street near Cincinnati the other day was unnecessary. We grieve for her family and friends.
It seems that the area is a popular nighttime hangout.
The lady was struck at about 1:45 in the morning.
The El Paso Times published an article the other day and wrote:
TxDOT has a long-term proposal for a Mesa Street tunnel running from Glory Road to Robinson Avenue. Vehicle traffic would bypass the entertainment district and the current Mesa-Cincinnati roadway would be a pedestrian area above the tunnel.
The long-term project would cost about $500 million and on the most optimistic time line would not be ready for another five years, Wright said.
Mesa street is unfortunately the main alternate route that can be taken when I-10 is closed.
Creating the tunnel would result in the closure of Mesa for months if not years.
There are other solutions like not crossing Mesa, or the party people taking their business to other locations.
Closing Mesa is not one of them.
We deserve better
Brutus
EPISD–will they get caught?
November 21, 2018EPISD has a real problem.
In EPISD–some real numbers we pointed out that taking ten cents out of the interest and sinking fund rate and giving it to the operations and maintenance fund would leave the district without enough money to make their bond payments.
The district failed to mention that to the voters. The voters approved the move.
The district will have to add at least seventeen cents to our interest and sinking fund rate next year. That will not trigger a rollback election because state law allows them to raise the rate up to fifty cents per hundred without being subject to a taxpayer rollback effort.
Without more money in the interest and sinking fund account the district will not be able to honor its obligation to the bond holders. That could cause a bond default.
The district’s solution is shown in this document:
The document says “To make bond payments, there will be a transfer for the same amount from the GF (general fund, or operations and maintenance fund) to the DSF (debt service fund, or interest and sinking fund)”.
Texas attorney general
In July of 2017 the Texas attorney general wrote:
“Districts do not have authority to increase the maintenance and operations tax rate to create a surplus to pay debt service with maintenance and operations tax revenue”.
There you have it.
Their actions appear to be illegal.
We deserve better
Brutus
Hotel occupancy tax issue
November 3, 2018Good government oxymoron wrote this the other day:
A percentage of the HOT tax was approved soley for paying for the stadium.
How is the city legally allowed to waive it or rebate it back to a hotel???
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That got us to wondering so we found the ballot language that the voters were asked to approve.
VENUE PROJECT AND HOTEL OCCUPANCY TAX PROPOSITION
“AUTHORIZING THE CITY OF EL PASO, TEXAS, TO DESIGNATE THE MINOR LEAGUE BASEBALL STADIUM PROJECT AS A SPORTS AND COMMUNITY VENUE PROJECT WITHIN THE CITY IN ACCORDANCE WITH APPLICABLE LAW AND TO IMPOSE A TAX ON THE OCCUPANCY OF A ROOM IN A HOTEL LOCATED WITHIN THE CITY, AT THE MAXIMUM RATE OF TWO PERCENT (2%) OF THE PRICE PAID FOR SUCH ROOM, FOR THE PURPOSE OF FINANCING SUCH VENUE PROJECT.”
Good government oxymoron is right.
According to the Texas comptroller of public accounts:
The city of El Paso collects the municipal hotel occupancy tax at 7 percent to support an auditorium and convention center, and in 2012 introduced an additional 2 percent levy via a venue district hotel tax for a multipurpose sports stadium. Combined city HOT taxes totaled $13.1 million in fiscal 2015.
The documents with the water park specify the hotel occupancy tax rebate at 7 percent. It looks like the city is respecting its obligation on the 2 percent but the comptroller’s explanation seems to mean that the other 7 percent is also allocated and the city cannot re-purpose it.
We deserve better
Brutus
New water park
October 27, 2018Item 22.4 on the Tuesday, October 30, 2018 city council agenda provides incentives for a company to build a convention center and convention center hotel in west El Paso.
This is the water park that has been the subject of recent speculation.
The estimated investment by the company is $150 million. They are telling us that about 600 jobs will be created.
In return the company will receive:
100% city property tax rebate for 15 years. The city’s rate is .843332 per hundred dollars of valuation. That comes to $1.26 million per year in tax relief at the current rate.
100% city sales tax rebate for 15 years
50% hotel motel tax rebate for 15 years. The tax is 17.5% of the room rate of which the city normally gets 11.5%. That means the operation will collect the 17.5% and then get 5.75% returned to them by the city.
TIRZ 10 will fund $526,100 in infrastructure and safety improvements.
The park will be at 6850 Paseo Del Norte, across the street from the new Walmart.
We deserve better
Brutus
Posted by Brutus 

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