You should be concerned about DCOA oversight.
The DCOA oversees millions of public dollars (tax money) and is currently being divorced from the City of Abilene into an independent organization. However, there are some very troubling spending trends that have arisen with the hiring of their new Executives. Because of the nature of the DCOA, transparency is not given and oversight is not guaranteed. EDCs can be confusing. This article will establish what the DCOA is and is not, where its funding comes from, and why people should be concerned about changes from within.
What is the DCOA?
The Development Corporation of Abilene is an Economic Development Corporation (EDC) and is established alongside the creation of a special use tax (Type A or Type B) that is levied from sales taxes within a city for economic development within that city.
According to the DCOA website:
“On November 16, 1989, the Abilene City Council approved Resolution №65–1898 authorizing the creation of the Development Corporation of Abilene, Inc. (DCOA) pursuant to the Development Corporation Act of 1979 (Texas Civil Statutes Article 5190.6), making Abilene the first city in Texas to do so.”
What does this mean?
Generally, if a city wants to create an EDC they have to decide what type. Since 2005, when the type B corporation developed, cities have overwhelmingly decided to create Type B corporations. Generally, this is because Type B EDCs can be used for more than just businesses. The money can be used to maintain roads and infrastructure, develop parks, and invest in non-business projects to improve the lives of the people who live within the city. Type B corporations also have the added oversight benefit of requiring voter approval for any large project. Abilene has a Type A EDC.
Type A EDCs only focus on Manufacturing, Industrial, Research and development, Recycling, Warehouses, Distribution centers, Regional/national corp. Headquarters, Closed/realigned military bases, and Primary job training facilities by higher education institutions. They can approve virtually any amount of public money on any project without voter approval.
More information:
Where does DCOA funding come from?
According to the DCOA website:
“The DCOA is a Type A corporation which the Development Corporation Act provides resources to promote the creation of new and expanded industry and manufacturing activity within the municipality and its vicinity using a ½ cent sales tax. This money is fully controlled at the local level and is not dependent on state or county approval.”
It is important to note that it also does not require voter approval unless they want the money to be used for Type B projects such as road improvement.
What does this mean?
This means that every time you buy a $108 bicycle (with taxes), $.50 goes to the DCOA. This equals about $11,000,000 every year. It’s important to remember that, sales taxes are paid by everyone equally. You own just as much of the DCOA as the business owner on the other side of town, the person who runs a multi-million dollar foundation, or any city councilperson.
Why does it matter?
Recently, the DCOA has begun a process to divorce itself from the city. Meaning that of the little oversight it has, it might possibly have less. My requests for more information regarding this divorce have not been responded to. Currently, a five-person board, appointed by the mayor, oversees the activities of the DCOA staff. Recently, an attempt was made to increase the amount that the Executive director can spend from $250,000 to $1,000,000 without city council approval. This would mean that one individual person could spend one million dollars of taxpayer money without any approval. Currently, the Executive Director is allowed to spend $50,000 without any board approval.
The DCOA has been responsible for several, very expensive blunders. In 2010 it approved and built the ‘Abilene Life Sciences Accelerator’ at an eventual cost of $11,000,000. The building sat empty for most of its life at 1325 Pine street until 2018 when it was purchased by Hardin Simmions University (HSU) for $2,000,000 at a loss of $9,000,000.
This lack of regulatory environment and that the DCOA has never been called to account for its past blunders is incredibly concerning especially given that with their divorcement from the city, they are no longer required to do the meticulous record-keeping required by governmental bodies. This creates an environment that is ripe for some unscrupulous person or people to take advantage of large amounts of public money.
No matter our political persuasion or background, all of us want Abilene to succeed. But succeeding means doing hard things. It means holding ourselves to a high standard of transparency and accountability and correcting ourselves when we do not meet them. We have to hold the DCOA and its leadership to a high standard because we want it to succeed. But in order for it to succeed people need faith in it. They need to know that their tax money is being spent appropriately. It is up to all of us to request transparency, integrity, and accountability from everyone involved with public money.