NO to Residential MMDs as a Solution for Corpus Christi Streets

MMDs in Corpus Christi

Municipal Management Districts (MMDs) are relatively new to Corpus Christi. The first Municipal Management District created in Corpus Christi was the Downtown Management District (1993) which is a commercial district. Although commercial MMDs are often controversial among business owners, MMDs created to fund improvements in commercial districts are consistent with the original intention of the law.

In the past few years Municipal Management Districts are being proposed and created in predominately residential neighborhoods. MMDs were not created by the Legislature to be used in residential areas. In fact, in the enabling statute creating MMDs, most residential properties are exempt from being taxed by the MMD. There are currently 2 MMDs on N. Padre Island. The proposed King's Crossing MMD seems to have failed.

MMDs as a Funding Source for Corpus Christi Streets and Infrastructure

The latest MMD to be proposed is the Lindale Municipal Management District which is being promoted as a financing mechanism for rebuilding neighborhood streets. If the Lindale MMD is successfully implemented as it is currently being presented by the Lindale Neighborhood Association, residential property taxes in Lindale will rise more than 30% for a minimum of 20 to 30 years.

"[S]ome members of LNA's leadership began to hold meetings with city staff since last September to explore options that could lead to the improvement of neighborhood streets. One of the options LNA proposed calls for the creation of a Municipal Management District (MMD) as a way to finance the reconstruction of streets, curbs, sidewalks, and storm water drainage systems in the Lindale neighborhood. The culmination of those meetings [with city staff] led to an invitation of Assistant City Manager Oscar Martinez to the special meeting of the Lindale Neighborhood Association held on May 1st in order to acquaint neighbors with the Municipal Management District option. Mr. Martinez made a PowerPoint presentation on the MMD option and answered neighbors' numerous questions at that meeting." [Source: Lindale MMD Summary by Lindale Neighborhood Association officer Adam Chavarria -DOC 31KB]

Coming Soon to Your Neighborhood?

Why should you care if you don't own property in Lindale? Because you very well could be the next neighborhood in line to be subjected to this quasi-governmental, non-representative taxing entity to fund services for which you already pay property and sales taxes and soon you will also be paying a monthly dedicated street maintenance "fee". There are other, better ways to finance street reconstruction and repair than creating new taxing entities run by unelected Boards. Following are some quotes and documents showing that Municipal Management Districts are going to be a city-wide problem if citizens do not speak out.

Proposed in Corpus Christi City Council Workshops: "Citywide" MMD

One proposal to fund streets was a "Citywide municipal management district". [Source 1: caller.com][Source 2: Street Improvement Finance Work Plan - CITY COUNCIL WORKSHOP NUMBER 1 MARCH 20, 2012 (PDF)][Source 3: caller.com]

MMDs are increasingly becoming an attractive funding mechanism for Texas cities who are having trouble funding basic city infrastructure maintenance.

"The rapid spread of special districts in Texas can be traced to several factors, most notably the inability or unwillingness of counties and cities to deal with various regional problems. Special districts provide a way that the fragmented power which characterizes local government in Texas can be overcome in order to solve area-wide and cross-jurisdictional problems. Since Texas political culture has tended to call for minimal government and the lowest possible taxes, special districts provide a mechanism whereby government services can be delivered without existing government assuming responsibility for them. This therefore preserves the myth of limited government while insulating local public officials from citizen complaints about inadequate service performance or mandatory taxes." [Source: Fiscal Capacity of Texas Cities]

While arguments can be made for the taxing power of cities, counties, school districts and water and utility districts, most special purpose districts are duplicative of the mission of cities and counties and constitute nothing more than another layer of government and another revenue stream. ... Fundamentally, many of these kinds of special purpose districts are created purely to funnel more revenue into the coffers of local government. [Source: Special purpose districts are weaving a tangled tax web - chron.com]

Lindale MMD as a model for other Corpus Christi neighborhoods

"Such a project, if it's successful, would do two things. Besides improving the infrastructure in Lindale we also could serve as a model and a template for other neighborhoods in the community who wish to initiate their own neighborhood improvement projects." - Lindale Neighborhood Association Vice President Carl Yowell during Public Comments section of the December 13th, 2011 City Council meeting. (emphasis added) [Source: Video of the December 13th, 2011 City Council meeting - corpuschristi.granicus.com]

Concerned about the neighborhood's ongoing drainage and safety issues, as well as a general lack of area development, they are creating the blueprint for a neighborhood-based potential citywide revolution. ... Along with redevelopment, infrastructure improvements and safety concerns, one of the group's goals, is a fully programmed neighborhood calendar including outdoor concerts, movies and sports events all designed to inject life, traffic and commerce into their neighborhood. ... Your neighborhood can — no, should — be next, but if you wait for Someone to do it, it's not going to happen. (emphasis added) [Source: Corpus Christi's Lindale neighborhood creates blueprint for citywide revolution - caller.com]

1) Attend the next LNA Meeting

6PM Monday, August 19, 2013
Lindale Senior Center
3135 Swantner Dr.

Attend the Lindale Neighborhood Association meeting and let them know that a 30% property tax increase is not the right solution for Lindale streets.

2) Talk to your neighbors

Let your neighbors know about this important issue and encourage them to attend the next Lindale Neighborhood Association meeting.

 Download Printable Informational Flyer

 Download Printable Lindale MMD Fact Sheet

3) Network

If you would like to receive email notification of important events related to the Lindale MMD (including meeting dates) please email us at . We will only contact you to inform you of important Lindale MMD developments and your information will not be shared with third parties.

Lindale in the News

[July 24, 2013] Letter to the Editor: No Municipal Management District for Lindale - Caller Times (paywall)

[July 12, 2013] Texas' special tax districts need more accountability - Caller Times (paywall)