Liberty voters will decide in November whether to dissolve the Liberty Community Development Corporation and redirect the half-cent sales tax that currently funds it to the City of Liberty.
Liberty City Council voted unanimously Monday, Aug. 17, to call the Nov. 3 election, putting the final decision in the hands of voters. If the proposition passes, LCDC and its dedicated half-cent economic development sales tax would be eliminated. At the same time, the city’s sales tax would increase by a half-cent, bringing the city’s portion to 1.5 percent.
For shoppers, the total sales tax rate would not change and they will feel no financial impact from the switch. Instead, the half-cent that now goes specifically to LCDC would go to the city, where council would have more flexibility in deciding how the revenue is used.
The proposal grew out of recent discussions about how Liberty can tackle some of its worst streets without placing the full cost on property taxpayers. City officials are considering a multi-year street program that could require roughly $25 million over five years, along with significantly more money for preventative maintenance once the major work is completed.
City Manager Bryan Kendrick said in last week’s meeting that the city has reached the point where it needs to make a significant investment in its streets, not only rebuilding those in poor condition but also maintaining the streets that are still in relatively good shape.
Redirecting the half-cent sales tax would give the city another source of revenue to help pay for that work. Without additional revenue, the city could have to rely more heavily on property taxes to repay debt issued for street projects.
Mayor John Hebert Jr. acknowledged Monday that the possibility of ending LCDC brings mixed emotions. He noted that the corporation was created in 1995 in part to help pay for Liberty’s levee, which played an important role in protecting the community from major flooding along the Trinity River.
“I just want to go on record of saying that this is kind of bittersweet,” Hebert said. “I had mixed emotions about letting something like that go away.”
Hebert said the city’s needs have changed over the years, and one of Liberty’s biggest challenges now is the condition of its streets. He said the city needs to do more than repair failing streets; it also needs to return to the kind of preventative maintenance program it had years ago.
Hebert also pushed back on the idea that using the money for infrastructure would mean turning away from economic development.
“Fixing streets is also economic development as well,” he said, pointing out that businesses considering Liberty also look at the condition of the community. “Making our town attractive, having good streets, good sewer, good water — that makes people want to move here. That makes businesses want to come here.”
Hebert said those issues are connected to both economic development and residents’ quality of life.
“It’s all intertwined,” he said.
The mayor also addressed what could happen if voters reject the proposition. With the city looking at taking on debt for major street improvements, Hebert said the alternative could be relying more heavily on property taxes to make those payments.
“The only other option we have is going to be on the property tax side,” Hebert said. “There’s lots of people out there that are opposed to raising property taxes.”
Hebert said he is willing to put the proposed change before voters and see what they decide, but he made clear that the city’s street problems will have to be addressed regardless of the outcome.
“We’re going to fix streets in Liberty, Texas, one way or another,” he said.
With Monday’s unanimous vote, council has formally put the question on the Nov. 3 ballot. As Kendrick said after the vote, “Now it’s all up to the voters.”