SEDCO Supports Sales Tax Increase

By Kathy Williams
Herald Democrat

Sherman Economic Development Corporation’s board members said they support both of Sherman’s sales tax increase measures, but can’t contribute to the political action committee formed to push them.

The SEDCO Board of Directors decided to continue to consider how they might support passage of the measures. However, they said there are two gray areas for SEDCO in considering the request to fund Sherman Households and Industry for Tax Relief and Streets. This PAC formed recently to support the two measures designed to provide funding for street maintenance and to reduce property tax rates.

Sherman voters will consider two issues Nov. 6 that would raise sales taxes. One would increase sales tax by one-eighth of a cent to fund street repairs and will expire after four years. The other would raise sales taxes by one-eighth cent to lower property taxes. The Sherman City Council has promised, through a resolution that if voters pass both tax measures, they will reduce property taxes further for a total reduction of 20 percent.

“I think that the part that impacts SEDCO the most is that if both sales tax initiatives pass, it will drop property taxes by 20 percent, down to 32 cents per $100, which puts us at an advantage when trying to recruit capital intensive employers,” said SEDCO President John Boswell. “So, not only does it provide another advantage to our existing businesses, but helps us attract new ones.”

Boswell said he didn’t think there were any “cons” to SEDCO’s support of the two measures, and that there are many “pros.”

“I feel like obviously SEDCO supports that and it supports our mission,” said SEDCO Board of Directors Chairman Joe Fallon Jr. “What I have some concerns with is that they are asking us to give money. ... with SEDCO as a corporation giving money to a PAC.”

Boswell said there are several sections of the law that deal with whether corporations can give money to PACs and single or special issue political committees. He said there are also issues about using public funds to support or oppose propositions that go to voters.

SEDCO is funded by sales taxes and the interest on investment of those taxes. It is a non-profit corporation whose members are appointed by the Sherman City Council.

Rad Richardson, SEDCO’s newest member, serves as treasurer for Sherman Households and Industry for Tax Relief and Streets, so he excused himself from the room for the discussion.

Fallon said he definitely thinks the members of the SEDCO board should do what they can personally and individually to support the initiatives, including speaking about it and writing checks. However, “As chairman of SEDCO I don’t think we (as a board) should get into any of those gray areas.”

Sherman City Councilor Willie Steele appeared before the board to support the request.

“What’s the thought of SEDCO, under their marketing umbrella paying for some marketing for this initiative?” Steele asked. “Is that a possibility? ... In my opinion this is a great marketing tool, it only helps your bargaining position with that company if property taxes are reduced by 20 percent.”

Steele said the PAC is sending out a “mailer” advertising the benefits of the sales tax increases and asked if perhaps SEDCO could help pay for that.

SEDCO Board Member Andy Olmstead asked if the corporation couldn’t just develop its own marketing product for the initiatives.

Steele said that he and the rest of the council are strongly in favor of the initiative and feel that past sales tax elections have failed because the public did not know enough about the projects that would be funded.

Olmstead asked, “Can we make a recommendation that if we can legally figure out how to support through marketing or advertising, then we could do that and if we can’t, it would be up to John (Boswell) to tell us that we can’t do that.”

Board Member Kelly Bickerstaff said, “Why can’t we do something as simple as writing a letter that’s signed by the board saying we’re in favor of the initiative and pay for it to run in the newspaper.”

Steele said he thinks that would be a good idea and that some community leaders already have sent out a letter to the community.

The election will be held Nov. 6, but early voting will be held Oct. 22 through Nov. 2.

Boswell said the board can come out in favor of an issue and has in the past, specifically, saying they were in favor of the Sherman ISD school bond.

SEDCO’s board decided to try to find a way to market it or advertise it without crossing over into the PAC arena.