Council OKs water option funds
Town Hall meeting Jan. 18
BY CHARLOTTE SMITH Editor

The propsed park plan sits on 25 acres, bordered on the north by Hillcreek Road, to the east by Karla Drive and the south by Highway 346. A new thoroughfare would run north and south on the park’s western edge.

Whitehouse City Council approved $150,000 a year to reser ve water from Lake Striker and okayed a preliminary park site plan at Tuesday night’s regular meeting, with member Mike Adams calling for a town hall meeting to discuss the park project’s impact on the city’s tax rate.

The special town hall meeting will be 6:30 p.m. Thursday, Jan. 18 at a site yet to be determined. Items open for discussion will include water issues, transportation and the park project.

Council approved the water option contract with Lake Striker after hearing a revised contract offer from the City of Tyler. The latest proposal offered a 25-year contract instead of 30, but still lacked terms to control rate increases, according to City Manager Ronny Fite.

The contract with Lake Striker will reserve rights to 3.9 million gallons of water per day, at an annual cost of $150,000. In order to draw water, a plant and pipeline will have to be constructed. According to Fite, Lake Striker officials want to assume ownership, and costs, of the plant and a segment of the pipeline, which would lower Whitehouse’s share of construction costs but increase potential raw water fees.

The option contract will not affect this year’s budget or tax rate, said Jed Dillingham, financial director. He proposed using $100,000 in interest from a completed capital project to pay the bulk of the cost, which could actually be $112,500 if the City of Troup comes on board with an option contract for $37,500 to reserve 500,000 gallons of water per day from the 3.9 million available.

After this year, the contract cost could be paid by increasing monthly water bills for the city’s approximate 2,400 meters.

A flat fee of $4 per meter charge would cover the cost, said Dillingham, who suggested that a progressive tax might be more appropriate, giving a more proportionate share of the cost to those who use the most water.

Adams called the decision to reserve the water “the most important thing this council will do.”

“If we miss this option, the window’s going to close quick,” he said.

Should Whitehouse decide not to exercise its option for the Lake Striker water, the option contract can be sold to another entity.

Council approved the Lake Striker funds unanimously, though member Bill Powers had earlier reconsidered his support and voiced approval of the new contract with Tyler.

Fite responded that Tyler had proven that they will increase rates, and “a contract is only as good as the people who stand behind it.”

“Don’t kid yourselves that Tyler won’t stick it to you,” he said.

In the night’s other major agenda issue, council approved a preliminary park site plan and a resolution to publish the city’s intent to issue certificates of obligation in the amount of $4.5 million. Roughly $3 million of that amount is for the park project, with the other $1.5 to complete a water well.

Before council unanimously approved the $4.5 million amount, Adams made a motion to issue COs in the amount of $1,840,000 to cover the completion of the well and $340,000 for a land purchase obligation. His motion died without a second.

Though he voted yes for Dale Moran’s motion for the full amount, Adams questioned the park’s impact on the city’s tax rate.

Estimates project that debt service for the park would require raising the tax rate from 6.233 to roughly 7 cents. The average homeowner ($111,800 property value) would pay an additional $80-85 per year to

fund the project. Adams also noted that the voter-approved bond for a new elementary school will also affect the tax rate.

“Taxes are already too high,” he said, asking council to call for a town hall meeting to get citizen input on the matter.

The monies requested in certificates of obligation include $1.5 for water well completion (to be paid for from water revenues), and park project breakdown of $340,000 for park land acquisition, $1.5 for improvements and $1,180,500 for road construction.

Future park maintenance and the need for at least two more full-time employees would also need to be addressed in further budget discussions.

Planning Concepts of Tyler prepared the park’s conceptual plan, which includes three practice soccer fields, a full basketball court, lake, pier, running trails, pavilion and restroom facilites, picnic tables and a spray ground.

Council questioned representatives from Planning Concepts about security, parking, future upgrades and the cost of certain features before approving the preliminary site plan.

In a separate agenda item, council also gave Planning Concepts the go ahead to make application for applicable grants from Texas Parks and Wildlife that might help cover costs.

In other matters, council approved an interlocal agreement between the city and the Whitehouse Community Library, and held a short executive session with no action following.