Considering our Future.....
City of San Angelo
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
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.
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
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
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, 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:
$20.8 million for:
(a) treatment of wastewater and/or treatment of brackish groundwater; and
(b) enacting water conservation programs.
$2.5 million for bank stabilization
$7.5 million for dredging
$800,000 for trail improvements
Sport and Athletic Facilities:
$15 million for sport and athletic facility improvements
$2.5 million for maintenance of facilities
Coliseum and Fairgrounds:
$6.7 million for street and drainage improvements
$6.7 million for fairgrounds improvements
$300,000 for coliseum improvements
City Parks, Fort Concho and Convention Center:
$2 million for park improvements
$300,000 for Fort Concho improvements
$300,000 for convention center improvements
$6.7 million for an affordable housing program
Approximately $1 million annually for economic development suitable infrastructure and to
promote business enterprises.
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.
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
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.
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
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.
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
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
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.
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
Improving our Neighborhoods
Affordable Housing Projects
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.
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.
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.
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.
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
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
Total Civilian Employment
Economic development is really a team
1997 1998 1999 2000 2001 2002 2003
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.
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
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.
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.
Per Capita Income
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.
Ballot Language . . .
The City Encourages You to Vote!
September 11, 2004
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):
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;
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
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;
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