DO-OVER
Bullard EDC holds second meeting to rectify the first one
By Lori Mellinger editor@bullardnews.com

Resolving an earlier issue this month, on Wednesday, Bullard Economic Development Corporation met again - in an officially posted meeting.

While the EDC held a meeting two weeks ago, it was forced to reschedule because of a question about whether the meeting was in violation of the Open Meetings Act.

In Bullard City Manager Larry Morgan's opinion - to "err on the side of caution."

The newly formed group reaffirmed its earlier voting on a president, vice president, secretary and treasurer at last week's meeting, as well as approving by-laws - with a few changes.

Because the first meeting wasn't posted 72- hours in advance, Morgan contacted the Texas Municipal League - a group that helps subscribing cities with everything from legal opinions to lobbying efforts - to ask for its legal opinion.

TML attorney Scott Houston echoed Morgan's thoughts.

"He said it would be better to err on the side of prudence, so that's what we did," Morgan said.

Now the group is ready to get moving - deciding the direction of the group - which under state comptroller's laws are wide and varied.

Morgan has since met with EDC president Clay Thompson - and feels assured that the group will make both good ambassadors and marketers for Bullard - as they work to lure more business to the area.

"This is a very professional group," Morgan said. "They all have something to bring to the table, and with the wide experience each member brings, they will work together well for the interests of the city."

Thompson agreed.

"For this operation to work, there has to be a bond - a working relationship - with both the city and the chamber of commerce, " Thompson said. "It's the only way to make it gel properly."

Funded by a ‰ cent sales tax, the group is cognizant of its duty to the taxpayers.

"More than anything else, we want to have the taxpayers interests at heart," he said. "While we're accountable to the city council; we're still beholden to the taxpayers."

And that's especially true since it was the taxpayers who - in 2006 - voted to add the addition to the local sales tax as allowed by state law.

"It's the mark of a progressive community when this is voted on and wins the first time around," Morgan said. "I've seen cities vote two or three times before it passes."

Voters approved a referendum on last November's ballot giving the city permission to create an economic development group by passing an additional half-cent sales tax.

Mayor A.W. Hines was pleased with the voters' support and the completion of the EDC.

"This is going to help Bullard's ability to attract tourism and fund infrastructure. And it would effectively put the city on a level playing field when it comes to sales tax collection rates," Hines said, in an earlier interview.

The council was unanimous in its agreement to put the issue to voters.

"Every city around us can compete, but without any incentives or proper infrastructure, where does that leave Bullard?" Hines said.

But he hates the word tax.

"It's completely consumption based," Hines said. "Most of us have - unwittingly funded a lot of infrastructure and improvements in other cities - it's about time they reciprocated.

"Every time we shop in Tyler, we're funding their parks and streets, but we're not doing anything about ours," he said. "The sales tax in Bullard was the lowest in the area - which means every other surrounding city is taking advantage of taxable consumer goods and services to aid growth."

The move followed suit of surrounding cities like Tyler, Whitehouse, Troup and Jacksonville that have had what's commonly referred to as an economic development tax added to local sales tax for years.

According to the state comptroller's office - which oversees the collection and distribution of the tax - use of the money includes: projects for streets, roads, drainage, and other related transportation system improvements, water and sewer facilities and public parks, and park facilities.

But getting the EDC in place has taken time, Morgan said, although planning and collection began immediately following the election.

Morgan said the EDC answers to the council - who, in turn, answer to the taxpayers.

Bullard - until the election - was the only area city not using the half-cent tax.

Tyler, Whitehouse, Troup and Jacksonville charge the state maximum of 8.25 percent. Bullard's rate was 7.75 percent before the vote.

"Your citizens are already paying for the economic development of other cities," said John Villareal, from the state comptroller's office, who spoke to the city council last year. "They should see little difference locally in what they spend, but they will reap the rewards of the investment.

"And tourism dollars, which the city expects to continue to increase, will directly benefit economic development."

Based on sales receipts from 2004, Bullard could generate about $46,000 more in yearly revenue. But predictions, Villareal said, make the reality much more abundant than what it was two years ago.

"You all know the growth in the area," he said. "This is a major thoroughfare, and Bullard is set up geographically to be in a very advantageous spot." He said the revenue would most likely triple in the next three years.

Since 1979, Texas law has allowed cities to form economic development corporations to attract businesses and create job opportunities.

The l989 Legislature amended the Development Corporation Act of 1979 to allow eligible cities the option of adopting a dedicated sales and use tax to fund industrial development projects - commonly referred to as a 4A tax. Further legislation in 1991 provided cities with a second form of sales tax to improve their appeal as places to live, work and visit, which is called a 4B tax, which is the one Bullard voters approved.

"This is something we were more interested in," said council member Teresa Adams-Wilks.

Generally, 4B expenditures are those available under 4A and projects that contribute to the quality of life in the community. Such projects include building park-related facilities, professional and amateur sports and athletic facilities, tourism and entertainment facilities, affordable housing and any other improvement or facility that promotes new or expanded business enterprises.

In addition to Thompson, Eileen Gottschalk was voted vice president; Shirley Coe, secretary; and Steve Shaddox, treasurer.

Thompson is market president for the Tyler, Jacksonville and Rusk branches of Franklin Bank, Gottschalk is a salesperson for Clear Channel Communication Coe works as a paralegal for a Tyler law firm and Shaddox is an Athens-based CPA.

Other members include the Rev. Donnie Barron, pastor of Bullard Southern Baptist Church; Terry Cowan, a local surveyor and member of Bullard's planning and zoning commission and Sam Vercher, a developer and homebuilder.

Morgan - who will act as a non-voting member and the city's liaison to the the group - has some ideas.

"Of course the first goal is to figure out what direction the group wants to go with the money," he said.

BDC is funded through a half-cent sales tax, approved by voters last November.

"I'm hoping to have a roundtable discussion soon and bring in people like Darrell Prcin, president of Jacksonville's EDC; Amanda Nobles, president of Kilgore's EDC and Carlton Swab, executive director of the Texas Economic Development Corporation," he said.

Morgan said Nobles would be great because she was at one time on the legislation committee that dealt with the actual laws of EDCs.

"This would give our members perspective from different areas," he said. "Then they could decide on a direction for the group - whether it be funding for infrastructure, focusing on bringing business to the community or other special projects that EDC could assist in."

Hines agreed.

"We're looking for funding that improves the quality of life for all of us, but allowing others to subsidize it, just like we do when we spend our money outside the city," Hines said.