Water Operating Fund: Lost Decade Found

Months ago San Angelo City Councilman Dwain Morrison asked for an explanation on the water operating fund and why citizens rarely got a rebate.  The resulting presentation seemed sparse.

City Council April 16, 2013 water rebate from City of San Angelo Texas

Wanting more information I perused City budgets and audited annual reports.  I looked hard, but could not find the two bits of information I desired, the Water Operating Fund balance at fiscal year start and end.  City staff kindly provided that information.

Only once in the last decade did the Water Operating Fund end/start off negative.  That was in 2004.  Every other year the Water Operating Fund was in the black. 

The City enacted water rate increases in 2007 and 2011.  Also in 2011 the City conducted a "one-time transfer of $3.5 million into general fund reserves from the water utility."  Those items are pictured below.

Given the actual Water Operating Fund balances weren't in the annual financial audit, this information could be new to City Council members.

For those who like raw data, I offer the audited figures as well as budget estimates, (which City Council members saw during the budget process):

Looking at audited vs. budget numbers one can see a lag in the two lines.  However, something changed the last two years, when the city experienced major increases in actual water operating funds vs. budget.

Another noteworthy item for the last two years are budgeted transfers out of the Water Operating Fund, $5.4 million and $6.1 million.  It's not clear how these transfers are reflected in the charts or graphs pictured here.  Such transfers likely relate to the city's debt obligations for the Hickory pipeline and planned new water treatment plant.

While my curiosity may be greater than the average citizen, I expected something along these lines in response to any City Councilperson's inquiry.  It happened the one who asked is still in the running for Mayor.  .  

Mayor New's Impromptu MedHab Update

Mayor Alvin New provided the following comments in response to Councilman Johnny Silvas' request for a MedHab update, made in mid-April but yet to be honored:  Silvas indicated he had no axe to grind, he simply wanted to know about jobs.  New responded at the 4:22:30 mark

"Take a look at the COSADC paperwork that was sent out.  No but, that's fine with me, I don't mind at all, but it's been brought up multiple times in the election, so that you know, it is what it is.  The issue, if you look in the paperwork that was handed out, there are no dollars being spent at this time.  There are basically four jobs and I know a lot more than that, but let's go by what is presented.  OK."

Let's be clear, virtually nothing has been presented since Council and MedHab inked the deal.  Circulating a COSADC meeting packet to Council members isn't close to a public update.

Ironically after the April 16th Council meeting, I received a message from Public Information Officer Anthony Wilson that an impromptu update by the Mayor would've been out of bounds. 

The mayor could not have talked about MedHab at the last meeting without violating the Texas Open Meetings Act since a discussion of that topic was not included on the agenda.

I believe the council that approved MedHab's robust incentive package deserved a public update, especially before members step down or change roles.  That didn't happen.

Tech Fort Worth gave the update neither COSADC nor the Mayor shared:

Initially – beginning June 1 – the device will be marketed to athletic trainers and coaches for use in strengthening the legs of healthy athletes, but Ross said he hopes to win Food and Drug Administration approval so that physicians and physical therapists can begin prescribing the device for their patients before the end of the year.

Where will this production occur?  After garnering a $3.6 million economic development package, Ross stated retail production would occur outside San Angelo, something not represented to Council   

MedHab had a large commitment the day after the May 14 Council meeting.  The company had been nominated for a TECH Fort Work IMPACT Award, one of nine finalists.

MedHab didn't win the the TECH Fort Worth IMPACT Award for 2013, but it will have the opportunity to present to accredited investors:

All nine finalists will have an opportunity to pitch June 20 to angel investors from Cowtown Angels, the North Texas Angel Network and other Texas investors. 

Rest assured, those folks will get a more complete story than San Angelo's City Council, provider of a potential $3.6 million nondebt, nonequity capital injection.

Councilman Silvas need not apologize for wanting to know what's going on.  Promises were made.  What's the performance to date and what are the company's plans?

Mayor New to Serve Through Runoff Election

San Angelo Mayor Alvin New will serve an extra month, given today's election will continue via a June 15th runoff between Mayoral candidates Kendall Hirschfeld and Dwain Morrison.

Ironically, two of the three Mayoral candidates will continue as Council members as their districts are also headed to a runoff.  Paul Alexander's district will see Rodney Fleming vs.Trinidad Aguirre.  Kendall Hirschfeld's district has H.R. "Winkie" Wardlaw vs. David McBride.  Marty Self, Don Vardeman and Charlotte Farmer were the outright winners in today's meeting.

Only Dwain Morrison will cease to serve as City Council member as a result of today's election.  He'll have a choice as to how his spend his time, sitting in the audience and making observations or out campaigning.

I'd bet Morrison will be present when the MedHab update hits the agenda, which won't be Tuesday, May 14.  Will Councilman Silvas ask why his request wasn't honored?

Given Silvas was Mayor Pro Tempore when Council gave final approval for the "robust" economic development incentive package, he is well within his bounds to ask what's happened in the interim.  Minutes from August 21, 2012 stated:

Councilmember Silvas resumed the meeting as Mayor Pro Tempore.

CONSIDERATION OF ADOPTING A RESOLUTION BY THE CITY OF SAN ANGELO CITY COUNCIL, WITH ATTACHMENTS, AUTHORIZING THE CITY OF SAN ANGELO DEVELOPMENT CORPORATION (COSADC) TO EXECUTE AN ECONOMIC DEVELOPMENT PERFORMANCE AGREEMENT IN SUBSTANTIALLY THE ATTACHED FORM, WITH MEDHAB, LLC, PROVIDING FOR DIRECT INCENTIVES IN THE FORM OF GRANTS FOR REIMBURSEMENT TO MEDHAB, LLC OF PORTIONS OF BUSINESS EXPENSES INCURRED FOR JOB CREATION AND RETENTION, AND, FOR CAPITAL INVESTMENT AND LEASING OF FACILITIES, MACHINERY, AND EQUIPMENT IN SAN ANGELO, TEXAS

Silvas is not going away, regardless of who becomes Mayor.  It would behoove paid city leaders to honor his request.  If history repeats itself, Mayor New will not be present for any MedHab related business, which I expect to apply to MedHab updates 

Alvin New may not want his two hats to collide, his San Angelo Mayor hat and MedHab Board of Director's cap.  Will the MedHab update come before New hangs up his Mayoral hat?  We may find out on the 14th.

"Most Commented" Numbers Fall Precipitously

San Angelo's Standard Times new pay-wall has been in place for one week.  The surprise change decimated the paper's active online community. 

Comments are a fraction of prior levels.  Will Scripps bean counters run the numbers?  If eyeballs fell at the same rate as comments, advertisers might be concerned. 

One Less Chance for Immunizations Before Price Hike

San Angelo citizens will have one less opportunity for immunizations before prices increase June 1.  Here's the reason:

The San Angelo-Tom Green County Health Department’s weekly immunization clinic on Tuesday, May 14, will be postponed as local health department officials assist the Texas Department of State Health Services with tracing contacts of those suffering from communicable diseases. The next immunization clinics will be on Tuesday, May 7, and Tuesday, May 21.

Postponed?  As I didn't see a makeup date, I believe the word should be cancelled.  The reason involves tracking communicable diseases.  Is that Tuberculosis or Sexually Transmitted Diseases? 

Such tracking is a normal public health function.  Why should immunizations be displaced, especially with a nearly 50% price hike on the horizon? 

On June 1, the fee for eligible children will increase to $22.06 per child per visit. The new fee for eligible adults will be $22.06 per vaccination. 

Given immunizations prevent communicable diseases, how might restricted access and steep fee increases come back to harm our community?  Maybe in a few years, someone can ask Mayor New and the band of soon to be ex-Councilmembers. 

Preliminary Medhab Update

Councilman Johnny Silvas asked for an update on the City's economic development agreement with MedHab during deliberations on agenda items for the next Council meeting.  At the time Council considered moving the meeting up to April 30.  After Silvas' request I detected a change in Mayor Alvin New, a MedHab board member.  New stated he wasn't inclined to hold a council meeting before elections on May 11. 

San Angelo Development Corporation will meet on May 9.  Their board packet showed MedHab received no money thus far from the City.  MedHab founder Johnny Ross called the city's economic development package robust, but defended it as performance based.  In Ross' words:  Zero funds means zero performance. 

We'll see if that's the case on May 14, when the MedHab report is due. 

Paywall Obliterates Commenter Community

The Standard Times paywall, nearly a week old, wiped out a vibrant commenter community.  The front page looks like a lightly read blog, with zero comments next to every headline and top story.  Of five "most popular" stories, two had a comment, as in singular.

"Most commented" had 38 comments under the Publisher's Letter announcing the move, which came with no, as in zero, notice.  The other four "most commented" ranged from six to two in number.

The Standard Times even turned Rick Smith's column into a comment-less zone.  I wonder how zero compares to Rick's historical average.  I hope the bean counters at Scripps run that number.

I wonder how the discussions went inside the Publisher suite on the new paywall.  I bet they said, "We have loyal readers."  "What alternative local news sources do they have?"  "We offer premium local content which has value." 

Who suggested pricing the digital version at $14.99 per month, when Scripps' other Texas papers offer the same service for $9.95 a month?  Let's assume the Standard Times' loyal online readers were willing to consider paying for access   How might they feel showing up one day to find the rules changed overnight?  The vibrant online community didn't have the opportunity to discuss their reactions, give any advice or share their plans.

Also, I wonder how much the active online community contributed to the overall value proposition?  With community interaction gone, how much is the site worth per month?

The Standard Times razed its active online community in the interest of profit development.  This is a metaphor for San Angelo, from Lake Nasworthy to the Cline Shale, which will boom, then bust. What's coming may be premium priced, i.e. not for existing users.