By Karen Gleason
The 830 Times
County Judge Lewis G. Owens Jr. on Wednesday told commissioners court the county
cannot and should not contribute money to help fund the city’s “urgent and important”
water projects.
Owens made his comments during the court’s February regular term meeting, saying it
would be illegal for the county to contribute funds for city water projects, pointing out the
county would receive no revenues back from such a contribution and opining the city has
“plenty” of its own money to spend.
Owens made the comments as part of an agenda item addressing a letter emailed to him
from City Manager Shawna Burkhart on Jan. 28. (See separate story on letter here.)
Owens said he had forwarded Burkhart’s letter to each member of the court, adding he
would not read the letter aloud, but saying Burkhart told him the city needs $21 million
for three “urgent and important” water system projects, including the development of a
second water well, reconstruction of a concrete wall around the East Springs and further
development of the Agarita well.
Owens said, “What concerned me was there is ‘an option to consider sharing the cost
between the city, the county and the EDC,’ and I would assume that she’s asking us to
share the cost on the water (projects) because we’re receiving grants to put in water lines
outside of the city limits. So I would assume that’s why they brought that up.
“But – and I’m trying to be real nice – the lines that we put in outside the city limits do
nothing but create another revenue source for the city. They are also charging more
money to people outside the city limits, a percentage higher than what they charge
individuals inside the city limits,” Owens said.
The county judge pointed out the city collects about $5.6 million a year in ad valorem
(property) taxes, not enough to fund even the city’s police department.
He also said the city transfers about $1.3 million a year from its water fund into its
general fund and about $600,000 a year from its wastewater fund into its general fund.
Further, Owens said he believed using county funds on a city project isn’t legal.
Owens said, “The other thing is, I don’t believe it’s legal for the county to make a
payment on something that we’re not receiving a benefit from and is also an enterprise
fund. In order for us to create an enterprise fund, to be able to make money, we’d have to
get permission from the state.
“So, the other deal is, I don’t think that what’s she’s requested, if it is funds, in order to
pay for the $21 million, is legal. Am I correct?” Owens asked County Attorney David
Martinez.
“That’s correct,” Martinez replied.
Owens said, “So, again, not throwing rocks. I am trying, because I have had people call
and want to know how come we would not split some of these funds, I don’t think it’s
right (for us to) create a revenue source and at the end of the day, it’s illegal (for us to do
so).”
He thanked Burkhart and City Public Works Director Greg Velazquez for the information
they provided on the city’s needs for its wastewater infrastructure.
Owens said the city administrators led him and the other members of the court on a tour
of the city’s wastewater infrastructure on Monday (Feb. 10).
“That project, they’re looking at more money. . . (about) $47 million. In that
conversation, (the city manager) said there was already $8 million for the Phase 1
(northside) trunk line, from the plant there on Frontera Road to the Owens subdivision, a
little past Brewer Drive. That right here, they have about $8 million borrowed,” Owens
said.
“Poor thing, bless her heart, the city manager, she sort of stepped into this. This problem
has been ongoing since (at least) 2009, 2010, and we know that because they borrowed
the money back then, and it’s part of their note. I don’t understand why (the city) council
and why councils since then did not move the ball forward, but again, I feel bad for them,
and I want to thank them for inviting us,” Owens added.
The county judge said he has also been asked if the county would support the city if the
city attempted to pass a bond issue.
Owens said, “It’s really, in my opinion, not taking a vote, just giving you information, it
would be really hard to go out and ask the people that pay taxes inside the city limits to
go and borrow more money, when you have $3.4 million, $3.8 million in excess in your
fund balance in your general fund.”
The county judge said the city currently holds funding for five months’ worth of
operating expenses in its budget.
“We (the county) have about 80-odd days. They have five months set aside, so there’s
another $3.8 million sitting above that in the general fund, and then you look at their
enterprise funds and the excess above what they’re supposed to carry, they have over $11
million in their enterprise funds.
“So when I was asked the other night if I would support (the city) going out for a bond
for $48 million, my response was that I would bring it back to the court, and see if the
court would do a resolution in support of it, but my opinion is you need to spend some of
the money you have in excess of what you’re required to have before you go and ask the
taxpayers inside the city limits to pay for a $48 million bond,” Owens said.
Owens said Burkhart has also asked if the court will tour the city’s water infrastructure.
Owens told the court, “In response to the letter, I don’t know what your comments are,
but I will tell you, the water deal, we can’t do. The wastewater treatment plant and the
trunk line, I don’t understand how it’s taken so long to move this ball forward.
“Every council member from 2008, 2009, everybody on the city staff has known about
the problem, and the council that’s here right now is about to take a hit and not look good
because they’re actually trying to get something done, which is a good thing, but they’ve
just stepped into it,” Owens said.
“Again, I wish we could help; (but we) can’t, and when it comes to the water lines, all the
county is doing is providing another revenue source (for the city),” the county judge
added.
Owens then spoke about the money the county is preparing to spend extending water
infrastructure into the Escondido Estates area of the county.
Owens said the court this year has set aside $355,000 for continued work in that area of
the county, but predicted, “It’ll cost us a million dollars before it’s all said and done.”
County Commissioner Pct. 1 Kerr Wardlaw noted that because there are so many septic
tank systems in use by residents outside the city limits, there is less reliance on the city’s
wastewater system than on its water system.
“(The city) makes money off both, water and wastewater. I will say one more time, I was
very appreciative of the city manager and the council and Mr. Velazquez for taking us on
this (wastewater) tour, but this trunk line has been talked about, that I know of personally,
since at least 2010,” Owens said.
No other commissioners commented on the issue, and the court took no action following
Owens’ comments.
Reach the writer at delriomagnoliafan@gmail.com
