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1. Will senior citizens be affected by this increase?

In 2005, the City of Galveston voted to approve a tax rate freeze for all senior citizens over the age of 65, and the disabled, who have their homestead on the island. That means the increase will not affect them. That being said, should a senior citizen move to a new home of higher value, or modify (add-on, build secondary structures, etc) their home and increase the value, the tax freeze for that individual would be recalculated based on the new value and the new tax rate.

2. Why are the projects on the informational handouts and online listed as “Sample Projects”? Is it a complete list?

All projects included in the bond election are on the website. The notation for it being a “sample list” was used due to the fact that we will also be including other streets that are identified in the current assessment that is being done. The assessment may also deem it necessary to move certain streets up and down in the priority list, however, our hope is that we will be able to address all of the streets identified in the assessment with the funding that would be made available if the bond measure passes.

3. How do they know the cost of these projects? Have they received bids?

All quoted costs are based on engineer estimates. By state law, and city ordinance, all work will be publicly bid.

4. What is the timeline and priority for each project?

The City’s Capital Improvement Plan outlines all work to be done in the next 5 years. The projects that will require funding by tax supported bonds have that notation on their project pages. Each project page outlines the timeline for the project. Residents can view the CIP online. Adopted FY 2017 Capital Improvement Plan

5. Why does the ballot language for the bond election include the words "and other related public infrastructure"?

The term other "related" public infrastructure is in there because bond counsel requires it. "Related" would mean connected to or with one of the listed projects. They require the language so that if you scope of a project changes due to unknown conditions of utilities under a roadway or in a drainage system, you can still use the funds for the additional work needed to complete the project. The bond covenant is very clear that the money can only be used for roads and drainage.  The City of Galveston cannot buy buildings or even install water or sanitary sewer lines with it.

6. The City received a significant amount of federal funding after Ike. Why would you need to ask for additional funds?

We have outlined the projects funded in each round of the CDBG funding below. The Texas General Land Office had sway and direction over these projects.

Round 1 Budget
City of Galveston
GLO Contract/DRS#: 10-5051-000-5027/DRS010051

Activity Status Budget

Water Facilities Complete 7,789,160.19
Sewer Facilities - Lift Station #1 Complete 2,401,581.72
Sewer Facilities - Main WWTP Complete 85,991,680.66
Fire Facilities - Pumper Truck Complete 487,046.03
Fire Facilities - Fire Station #4 Complete 4,457,925.41
Clearance/Demo - Fire Station #4 Complete 42,250.00
Historial Preservation Complete 1,150,620.70
Economic Development Loan Complete 2,367,845.32
Planning - Downtown Redev Complete 94,601.03
Planning - City Ordinances Complete 1,807,428.28
Planning - Construction Specs Complete 279,482.66

Total 106,869,622.00

Round 2.1 Budget
City of Galveston
GLO Contract/DRS#: 11-337-000-5356/DRS210051

Activity Budget

Market Street (25th - 19th Street) 5,571,052.13
43rd Street (Broadway - Ave U) 8,605,304.67
53rd Street (Broadway - Seawall) 9,918,328.20

Total 24,094,685.00

Round 2.2 Budget
City of Galveston
GLO Contract/DRS#: 15-081-000-8748/DRS220051

Activity Status Budget

59th Street Pump Station In Construction 12,161,620.00
30th Street Tank Rehab In Design 2,596,629.00
59th Street Tank Rehab in Design 7,737,480.00
New Tank 59th Street In Design 7,532,431.00
Airport WWTP In Design 6,126,948.00
69th Street Reconstruction In Construction 2,799,519.00
65th Street Reconstruction In Construction 3,094,904.00
Saladia Ave Improvements In Construction 2,155,669.25
51st Street Improvements Out For Bid 2,480,499.25
Avenue S Improvements In Construction 3,690,645.25
Sealy Ave Improvements Out For Bid 3,249,708.25
Fire Station #1 In Design 10,666,730.00
Demo Fire Station #1 In Design 876,786.00
Cedars-Walkways In Design 682,501.00
PW Facility In Design 11,205,789.00
Cedars- Water & Electric Light Station In Design 1,175,612.00
Incinerator Site In Design 2,719,340.00
Cedars- Tank Demo In Design 248,749.00

Total 81,201,560.00

7. Will the proposed tax rate increase be rescinded after the completion of the projects?

The tax rate is set each year by council and no council can bind future councils as to that rate as a matter of state law. By that same law, future councils could roll back the rate at any time or raise it at any time. If council votes to lower it while money is still owed on the debt, they would need to make cuts elsewhere in services to pay for it. For reference, Council has voted to lower the tax rate each year for the last three years because home values on the island increased, giving council the ability to lower the tax rate without cutting services.

8. If the bonds pass is the City going to raise the value of my home by 3.5%?

No. The bond measure will increase the City portion of your tax bill by 3.5 cents per $100 of valuation. The Galveston County Appraisal District is who sets your properties valuation amount. In our educational materials we used an example of what this meant for residents by showing the amount of increase on your annual tax bill you would see if the bond measure passes. The estimated $60 was based on a home that was valued at $215,000 (the median property value on the island) with a 20% homestead exemption.

9. My tax bill has increased significantly each year, this is only going to increase it more. Why are taxes so high on the island?

Our total tax rate on the island is $2.40 per $100 valuation therein abouts. Compared to many cities, it is quite low, especially as it relates to total tax. You have to look at other municipalities and see if they have MUD's, PID's, ESD's to see the total tax rate for that particular community. We wrap all of those services into your rate in Galveston. Tax bills significantly increase when the value of your property increases. We look at increased property values as somewhat of a positive. Raised values mean the market is growing and sales are good. It also means your house is in good condition and is a nice addition to the community. If your home is unfairly valued vs comparable homes of like condition, then you can protest that value.

10. How did the city come up with the $60 annual increase suggested in the educational materials?

The $60 increase is based off of someone who claims a homestead exemption (20%) on a $215,000 home. That value is the average home value on the island.

Example:
$215,000 x .80 = $172,000/$100 = $1720 x .035 = $60.20

You can do the same math to come up with the impact to you. Simply take the value of your home and multiply it by .80 if you take a homestead exemption. Once you have that value you will divide that amount by $100 and multiply that number by .035.

11. Why is the City holding a bond election rather than paying for the projects as we go?

History has shown that construction inflation far outpaces interest costs and are not fixed as the interest will be on bonds. Based on that, the City determined issuing bonds would be the more fiscally responsible solution for our taxpayers. This holds especially true when you consider the cost of making temporary repairs to infrastructure until we have the funding available to complete the upgrades.

12. Can you assure the citizens that this would fix the drainage problems in the City?

Drainage on the island is not something anyone can fix in the next five years. We can make incremental progress by increasing drains and such but it all comes down to how it gets to the bay or the bayou and the tides at that time. Newer cities have retention and detention. Much like every City our age, Galveston was by design built to provide retention/detention within the street itself. We will continue to upsize the drains and now have a program to attempt to keep them free from tidal silt. Tidal slit can fill up to 50%-60% of some drains when we have high tides and this program has proven to help improve drainage when in place. Solutions beyond what we are doing would be in the billions of dollars and a burden that could not be sustained by local taxpayers. It will take federal intervention, like in New Orleans or New Jersey, to solve it completely and most likely with a coastal barrier of some type.

13. What does this mean for commercial property owners?

The same thing it means for residential property owners. A 3.5 cent rate increase per $100 of valuation of your property.

14. Why can’t you increase the sales tax or gas tax to fund these projects?

The City is already at the highest sales tax we can charge by law, and gas taxes are set at the federal level and we have no local control over them.

15. Why does the ballot language for the bond election include the words "and other related public infrastructure"?

The term other "related" public infrastructure is included is because bond counsel requires it. "Related" would mean connected to or with one of the listed projects. They require the language so that if the scope of a project changes due to additional work needed to complete it, the funding is available for that use. The bond covenant is very clear that the money can only be used for roads and drainage.  The City of Galveston cannot buy buildings or even install water or sanitary sewer lines with it. The entire sentence reads “other public infrastructure, traffic systems, and acquisition of rights of way relating to such projects…” which defines the “other related public infrastructure” much more clearly.