BROWNSVILLE, Texas - Brownsville leaders have given their initial reaction to a decision by city voters not to proceed with the formation of a Greater Brownsville Municipal Development District.
Proposition A on the ballot went down to defeat. The preliminary vote “for” was 3,944. The preliminary vote “against” was 4,536.
Proposition B on the ballot was approved. The preliminary vote “for” was 4,518. The preliminary vote “against” was 3,043.
• Would have created the Greater Brownsville Municipal Development District (MDD), a new special purpose district that would have funded economic development, infrastructure projects as well as quality-of-life projects within the Brownsville city limits as well as just outside the city limits - otherwise known as the extraterritorial jurisdiction, which is the city's growth area.
• The change has no impact on property taxes or existing City sales taxes.
• The sales tax in Brownsville is currently 8.25% and would not have changed for shoppers in the city.
• The measure would not have meant a change in property taxes.
• If voters had approved both measures, then the sales tax for shoppers in the ETJ (the city’s growth area) would have increased from the current sales tax rate of 6.25% to 6.75%, which is effectively an increase of about five cents (0.05₵) on every $10 purchase.
• Would have led to the termination of the City's existing economic development non-profit agencies, the Brownsville Community Improvement Corporation (BCIC) and the Greater Brownsville Incentives Corporation (GBIC).
Interviewed by the Rio Grande Guardian International News Service, Brownsville City Manager Helen Ramirez said:
“The Municipal Development District is innovative within the state of Texas and cities are successful when they have strong economic development companies, small businesses, entrepreneurs. But the quality of life of where a CEO or any worker or employee wants to live is also important, right? They run in parallel.”
Ramirez continued:
“If I'm going to move my family or if I want to expand my family or expand my network of business, I want to do it in a community where I have great educational opportunities. Somewhere that has, maybe trails and rec centers. And, also, of course, the company for which I work with.
“And so that was really the intent: Proposition A was designed to capture five cents from every $10 of sales tax. It was not going to affect the property tax of areas in the county, which is the extraterritorial jurisdiction.
“So, there was a lot of misinformation out there. So, while Proposition B did pass, which was pretty much eliminating our Type A and Type B EDCs, then (they were to be replaced) through the creation the MDD.”
Ramirez continued:
“So, what we were looking at is making, with a bigger pot of money, which was we had estimated as half a million dollars, was to increase our current sales tax. It wasn't going to affect any of our city's sales or property tax.
“Now that is a lot to take in and so I think some voters maybe did not understand that both propositions had to be voted on as a yes in order for that to occur.”
Ramirez added:
“With the vote not going forward, the EDCs stay as is. BCIC and the Greater Brownsville Incentives Corporation. However, I think the message, and when we look at the strategy of the city and how it grows, with all the wonderful employment opportunities that we have with SpaceX and LNG and everything that's going on, we believe it's still it's very important to work on quality of life projects and economic development hand in hand, because that's where we're going to have a better place to work, live, be educated, and then raise a family and a business.
“So, if you're asking me what that end game is, that's the end game. And I think there's always a way to find ways and different tools in our toolbox to be able to fund those types of different types of projects. Whether it's the city or in our growth areas.”
Asked if the City of Brownsville would go back to the voters, in the hope that they vote for an MDD, Ramirez said:
“Well, that's to be determined. I think every community review understands the why. The why is still there, the importance of having the ecosystem being balanced with regard to the different types of amenities we have, and that's to be determined.”
Brownsville Mayor John Cowen spoke about the MDD vote on News Talk 710 KURV. He told the radio station:
“I think there are a lot of lessons learned from this initiative. I think whenever you have a ballot item that mentions an increase in tax, which in reality… it was not a tax increase for City of Brownsville residents… it was only in the ETJ area… I think there has to be a lot more education and outreach. We probably needed to start earlier on that because… when I talked to people, initially they were against it, and then, when I explained what it is and what it really means for our community, they completely understood why this is important and is needed and why it will be a great thing for us.”
Asked if the City of Brownsville will ask voters to support an MDD in the future, Cowen said:
“So, I think we're going to regroup and analyze what we can do better, and I think we'll try to put it back on the ballot again. Because, as we were talking, our ETJ is growing… the SpaceX development, the $15 million center that they're building out there, that is in our ETJ. So, we wouldn't be able to capture some of that sales tax growth and deploy that revenue towards economic development and quality life projects in our area. I think it’s all about outreach and education. I think there will an opportunity to do it again.”
