Why are you running for this position?  What are the three main attributes that make you the most qualified for this position?

I am a conservative with a strong work ethic, the qualifications and experience to understand the underpinnings of our municipal government, and the new ideas to make an impact on the lives of residents in Shenandoah. Each of these attributes by itself would be insufficient, but combined, they make me the best candidate for this position. I am running because I can make a positive impact for the City and the timing works well for me personally.  My family is young and as time progresses, we will add additional family obligations, making this particular time an ideal window for me to serve the City. On that note, I also fully believe in self-imposed term limits, and will run to serve no more than three consecutive terms on City Council. 

Every job I have had since my first job out of college, I have been recruited by either a client or a former employer. The people most familiar with my work - clients and employers - are recruiting me to work on their team. As a civil engineer with extensive experience in public infrastructure, I understand the processes for project development and capital improvement planning. My experience directly with the City of Shenandoah means I will not have a learning curve to understand the best way to implement effective change. My ideas for the City will make an immediate and positive impact for Shenandoah’s residents. My Residents First agenda will help lower the costs residents pay the City, improve the quality of life for residents in the City by investing in our police department, and by implementing measures for a smarter government, provide greater access and efficiency for the residents. I have specific ideas for each of these items, some of which are outlined in my answers to questions below, and others are explained in more detail on my website: www.byronforshenandoah.com.

What are the 3 most pressing issues in Shenandoah and what is your preferred solution to each?

The three most pressing issues are the costs residents pay the city including taxes and proposed debt, the need to invest in our public safety, and excessive regulation imposed by the City.

The City is currently considering increasing its debt for a $3 million water plant and a $30+ million dollar special events center. The water plant can be funded through an existing fund balance in the Municipal Development District (MDD) and there is no need to borrow $30 million for a special events center. This will prevent increasing the debt the City currently has and also prevents an approximate 10% water rate increase.

Although the City has reduced the tax rate each year, City residents have seen an approximate 10% increase in taxes in the past 3 years because their appraisals are rising faster than the City is reducing the tax rate. Last year, the City’s general fund collected approximately 25% more in revenue than it spent in expenses - proving the increase in taxes to City residents is not necessary. I will drive down the tax rate so that residents do not see an increase in taxes and will end up seeing an actual tax deduction not merely a reduction in tax rate.

Over the past few years the City has seen built or approved a 150% increase in hotel rooms, 15% increase in residential lots, a 300-unit apartment complex, and a movie theater.  The City’s existing businesses are busier and expanding, such as Memorial Hermann hospital and Shenandoah’s restaurants which have sold 30% more alcohol in the past 3 years. During this period, the City’s investment in patrol for the Police Department has been stagnant. I believe one of the City’s core functions is public safety and we should be increasing our investment in the Police Department patrols. This year, the City added a police officer position but it was a code enforcement position, not a patrol position which should be the priority. Subsequently, the City has eliminated a police officer position by choosing to not fill the vacated Fire Marshal position.

The City is involved in excessive regulation. I believe less government is better government. Community Impact reported after the February 22, 2017, meeting that a sign ordinance amendment allows for an open house sign but “does not allow for balloons”. The City doesn’t need to regulate whether or not a balloon is attached to an open house sign when a resident is trying to sell their house. The March 22, 2017 City Council meeting included new rules for the park, clarifying that activities where a resident takes direction from “anyone other than an immediate family member” are prohibited in the City park - rendering illegal activities as harmless as receiving a tennis lesson. The City doesn’t need to be in the business of restricting tennis lessons in the park. My preferred solution is to limit regulation only to the minimum amount necessary.

How can the operation of your city government be made more efficient and cost effective?

There are several ways the operation of Shenandoah’s government can be more efficient and cost effective. First, the City should refrain from using taxpayer funds for private developers. The City recently approved using taxpayer funds (Municipal Development District (MDD)) to pay for the extension of David Memorial Drive. This should have been a developer-paid road but instead, the City has approved taxpayer funds to build the road. Second, the City should seek funding from the MDD for the proposed water plant instead of a 10% water rate increase to fund new debt for the proposed water plant. Third, as noted above, the City added its second code enforcement officer position instead of investing in patrol activities of the police department. Fourth, the City currently requires residents to go to City Hall in order to reserve the park pavilion and pay by cash or check, when it should accept credit cards and allow residents to reserve the park pavilion online without having to be at City Hall during business hours.These are four examples of ways I proposed to make the City government more efficient and effective for residents.

What's your interpretation of the "Separation of Church and State"?

In general, I am more concerned about the interpretation of the Constitution than I am of a popular phrase taken from a court opinion. Relative to the church, the Constitution states ‘Congress shall make no law respecting an establishment of religion, or prohibiting the exercise thereof…”  The founders of this nation never intended for a wall to be built between the Church and State. If they had, they never would have stated in the Declaration of Independence that “We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness.”

Further, my wife is a Blackstone Fellow with Alliance Defending Freedom and our family is committed to supporting efforts for religious liberty.

What is your primary resource to help you make difficult decisions as it relates to public policy?

My primary resource is the Bible. My fundamental philosophy is rooted in the Bible and therefore it is the measure by which I will make difficult decisions in life. After that, my primary resources will be the United States Constitution, the Texas Constitution, City ordinances and as a general law city, state statutes regulating the operation of the City.

What is the current budget surplus and should any of it be returned to the residents, pay down debt or retained in a rainy day fund and if so, how much and why?

The City’s budget is comprised of 3 primary funds: General Fund, Water/Sewer Fund, and the Convention & Visitor’s Bureau. The surplus for each of these funds should be treated specifically based on the needs of the individual fund. For example, the General Fund is primarily funded by sales tax which has greater volatility than other forms of revenue and therefore a higher reserve (or rainy day) fund is appropriate. I recommend reserves of 9-12 months for the General Fund. The City’s general fund reserves are currently at 92% of the annual general fund expenditures (approximately 11 months). Last year, the general fund had a surplus of $1,785,084, or 25% of its expenditures. At the same time, residents have seen an approximate 10% increase in their tax bill to the City over the past 3 years. This surplus should be returned to the residents through reduced taxes so that our tax bills do not continue to rise. More specifically, I recommend the following use of surpluses:

• Fund the reserve fund – currently sufficiently funded
• Annual budget return of surplus to residents through reduced taxes and reducing other costs the City charges its residents
• Establish a policy to split unbudgeted surpluses (generally greater sales tax collected than budgeted) between accounts for advanced debt payments and future capital improvement projects (to avoid additional debt).

The City’s water/sewer fund will have lower volatility than sales tax but can vary on a year-to-year basis based primarily on weather patterns affecting irrigation use and therefore water demand in the City. I recommend a minimum 6-month reserve in the water/sewer fund.  I recommend designating a portion of the water/sewer surplus specifically for future water and sewer system improvements so that capital projects can be paid for on a pay-as-you-go basis. The City is currently looking at issuing additional debt to fund a new water plant.  I recommend the City request the City’s MDD to fund the water plant; the MDD currently has a $5.75 million fund balance and can pay cash for the water plant. This method would eliminate the need for additional debt and therefore the eliminate the need for a water rate increase (estimated at 10%) to repay the debt.

The City’s Convention & Visitor’s Bureau (CVB) is funded by hotel occupancy tax. There are specific regulations related to the use of hotel occupancy tax and therefore these funds cannot be used to fund operations in the city. The CVB has limited obligations that would require expenditures if an unexpected event occurred and therefore a 6-month reserve is adequate. In the past 3 years, there has been an additional 1,000 hotel rooms built or approved. This is a 150% increase and therefore the CVB surplus is expected to continue to rise. The City is currently considering a special events center that will cost in excess of $30 million and require additional debt. Instead of taking on additional debt and building the special events center, I recommend the City adjust how it collects hotel occupancy tax so that this excess surplus is returned to the taxpayers. This will create a competitive advantage for hotels in Shenandoah as hotel patrons shop for hotel rooms since the same hotel rate will end up being cheaper in Shenandoah than other hotels in the region due to lower taxes.

Another fund is governed by a separate board appointed by City Council: the Municipal Development District. The MDD primarily funds capital projects and has very low operational expenses. A 6-month reserve for MDD is appropriate. I recommend MDD be utilized to a greater extent to fund capital projects, offsetting the needs for general fund and water/sewer fund capital projects. The City and MDD are currently funding an extension of David Memorial Drive through a private development. I recommend developers fund these types of projects in Shenandoah, which would create additional funding for other projects in the City. As noted previously, the MDD could fund the proposed water plant. Another example is the City’s general fund is paying for sidewalks that could be completely funded through the MDD, reducing the burden to the general fund.  

What is Shenandoah's bond rating?  What is the current debt load and is it too high? Please describe how you will determine the proper debt load.

The City’s bond rating is AA+. During a recent rating from Standard & Poors Ratings Services, the City scored well in most categories except in the management field and in debt and contingent liability position. The rating analysis states “We view the city’s management as adequate with “standard” financial policies and practices under our FMA methodology, indicating the finance department maintains adequate policies in some but not all key areas. We revised our FMA score on the city to “standard” from “good” based on our view of management’s indication there is no long-term capital plan developed at this time.” The City should use this third party analysis and work to improve its finance policies in the key areas identified by the rating service. The City should also develop and formally adopt a long-term capital plan. This will allow the City to plan for future expenses and avoid additional debt.

The City has debt payments of $2,332,526 budgeted for the current year which is 16% of the overall city revenue and 125% more than the City’s revenue from property tax. These reasons are why the Standard & Poor’s Rating Service stated the City has a weak debt and contingent liability profile. There are 2 methods by which the City could improve its position related to this performance measure. The first is by raising or maintaining the tax rate which is unacceptable in my opinion. The second is by reducing the City’s debt load so that it is a smaller burden on the overall City’s budget. In the next 10 years, approximately 75% of the City’s debt will be repaid. Avoiding additional debt in this period will reduce the City’s debt load and allow the City to use revenue to fund future projects in lieu of repaying debt. I will push to reduce debt whenever possible.

At the conclusion of the most recent fiscal year, the City had outstanding debt of $22,145,000. This debt is primarily the result of the Shenandoah Valley Infrastructure Replacement project that replaced or improved the streets, waterlines, sewer lines, and storm sewers in the original neighborhood in Shenandoah. This project was specifically voter approved. However, the current debt load is the maximum it should be and ideally substantially lower. As the City deliberately reduces the tax rate, it must deliberately reduce its debt load accordingly. Reducing taxes goes hand-in-hand with reducing debt.

If elected, I will use a variety of factors to determine the proper debt load for the City. First and most importantly, I will consider how essential is the project being considered for debt. Debt should only be used to fund the most essential capital projects. For example, if a catastrophic event occurs that requires immediate replacement of a piece of the City’s water or sewer infrastructure, debt may be appropriate. However, I do not believe debt is appropriate for non-essential projects such as the currently proposed special events center ($30+ million).

The second factor I will use when evaluating the debt load will be whether the project can be funded on a pay-as-you-go basis. With proper planning, projects can be anticipated and planned for over time without surprises necessitating additional debt. This includes planning for infrastructure replacement, maintenance, and regulatory requirements such as those imposed by the Lone Star Groundwater Conservation District. This also includes looking at all sources of funding and using those to the greatest extent possible to limit the City’s debt load. For example, the MDD could fund the proposed water plant instead of requiring additional debt and an increase in water rates to repay the debt.

Another factor I will use when considering the debt load is the funding source for repayment. The city and its residents benefit from its sales tax collection. However, sales tax can be a volatile revenue source. I also have concerns about the long-term viability of the City’s sales tax as online shopping is growing exponentially. As shoppers purchase more and more retail goods online, it may limit the City’s ability to continue collecting sales tax from its brick and mortar retail establishments such as Old Navy, Home Depot, and Sam’s Club. This must be considered when evaluating the proper debt load. If sales tax growth is required to repay the debt, it puts the City at risk of needing to raise its property tax rate to pay its bills. Keeping the debt low will enable to the City to continue lowering its tax rate.

How much does this position pay each year? Do you think this amount should be increased, decreased or even, like The Woodlands Township, receive no compensation at all?

I will vote to eliminate council stipends. If unsuccessful, I will vote to reduce council stipends. To the extent the City Council, as a body, disagrees with me and elects to continue stipends, I will donate 100% of the stipends I receive.

On August 26, 2015, the City Council approved Resolution No. R-15-006 providing benefits for Council members in addition to the stipend. These benefits include phone/iPad reimbursement of up to $1,500 annually. I will vote to eliminate the phone/iPad reimbursements. To the extent the City Council, as a body, disagrees with me and elects to continue this benefit, I will not accept the reimbursement.

Additionally, the City taxpayers pay 75% of the insurance premiums for members of City Council opting for medical and dental insurance coverage through the City, per the same resolution mentioned above. Since 2014, the City has experienced a 50% increase in its expenses for providing healthcare coverage to its employees. The City should be looking at methods to reduce this burden and it should start by eliminating taxpayer subsidies for insurance premiums for members of City Council. I will vote to eliminate the subsidies for Councilmembers opting for medical and dental insurance coverage. To the extent the City Council, as a body, disagrees with me and elects to continue this benefit, I will not elect to obtain insurance coverage through the City.

In addition, I will propose the City establish an easy to find page on its website specifically listing the benefits provided to members of City Council for greater transparency.

What is the Sales Tax Rate for the City in which you're running?  Property Tax rate?  How much of the revenue is derived from each? Do you think it would be a good idea to broaden either or both of them to increase revenues?

The City’s sales tax rate is 1.5%, the MDD sales tax rate is 0.5%, and the current property tax rate is $0.2295 per $100 valuation with a 20% homestead exemption. As reported in the recently approved audit report for 2016, revenues from sales tax, property tax, and other sources were collected on these approximate ratios:

• Property tax – 12%
• City sales tax – 42%
• MDD sales tax – 13%
• Hotel occupancy tax – 7%
• Water & sewer rates – 18%
• Other revenues – 8% (including fines, permits, trash, recycling, and investment income)

I am opposed to broadening the taxes by increasing rates paid by individual taxpayers. One of the benefits the City enjoys is a broad tax base for sales tax and property tax and as additional properties are built and additional sales tax is collected, the City should be able to enjoy lower taxes for existing taxpayers as the tax burden will be shared across a greater population.

The City is currently considering broadening its revenue sources through a toll or franchise fee for the installation of conduit the city is considering for a fiber-to-the-home project. The premise of the project is that the City will fund the installation of conduit for a third-party provider to utilize to provide internet service to City residents and the users will pay a 15% franchise fee to pay the city back. I do not believe taxpayers should “pay the city back” through a toll for the use of the conduit. If the project is a viable project, the City has cash and can fund it. The idea of tolling for the use of a City facility is not a practice I support.

Do you support or oppose creation of Improvement Districts and Economic Development Districts? Why or why not?

Shenandoah has enjoyed significant growth through free market development without the use of special districts. As a councilmember, I will oppose the use of these types of districts.

What are the advantages/disadvantages of Economic Development Partnerships?

Economic Development Partnerships can be effective recruiting tools to bring new employers to regions. Most of Shenandoah’s growth has been in retail not through economic development policies or partnerships and therefore they have had limited use directly for Shenandoah. However, as the greater region has grown and new employers have moved to the region, Shenandoah has enjoyed indirect benefits such as increased sales tax and employment opportunities for our residents.

Are you now or have you ever done business with The City of Shenandoah and/or a Shenandoah/county official and if so, the nature of that relationship?

For approximately 18 months I was in a business development role for a local engineering firm where I performed work on public infrastructure projects in and around Montgomery County. In this role, I did not conduct business with the City of Shenandoah or any Shenandoah official. Approximately 7 years ago, I worked for a different engineering company that did business with the City of Shenandoah. In neither of my roles with the engineering companies did I receive personal benefits related to doing business on public infrastructure projects for Shenandoah or the county - I was not a shareholder in either company. I have never had a personal business relationship with Shenandoah, the county, or any official with Shenandoah or the county. I have since accepted a position with a different company and am no longer in a position to market to or do business with Shenandoah, the county, or any public infrastructure projects. 

List Civic, Political or union organization or individuals to whom you have contributed time or money (past five years).

Grace Presbyterian Church, 12th Man Foundation, Leadership of Montgomery County, Texas Patriots PAC, Texas Conservative Tea Party Coalition, Craig Doyal, Jay Mac Sanders, Mike Meador, Duane Ham, Charlie Riley, Jim Clark, Bill Daugette, Melissa Miller, Seth Gibson, Lake Conroe Area Republic Women, and Trent Perez. Most of the politically-oriented contributions were small contributions made to attend fundraisers so that I could meet members of the community in my previous business development role.

List all clients you have represented or lobbied for on behalf of any governmental entity during the past five years.

While I have not represented or lobbied on behalf of clients, for 18 months I was in a business development role for an engineering firm focused on public infrastructure projects. I represented the firms interests with public agencies in and around Montgomery County. I have since accepted a role with a different company where I am not in a position to market to or do business with governmental entities except in a regulatory capacity.

Please list your top 5 donors and what their relationship to you is?

I have self-funded my campaign and have not accepted donations.

Please describe what measures you propose to improve transparency and accountability to the public.

I will propose the City adopt measures described by Section 551.006 of the Texas Local Government Code allowing City Council to participate in an exchange of information and communication openly through an online forum. This will provide greater transparency to the public on deliberations of City business and protect the City from potential violations of the Texas Open Meetings Act. I will also propose the City create an easy to find page on its website listing the benefits provided to members of City Council. Currently members of the public must comb through budget documents that are hundreds of pages thick and minutes from previous meetings to identify the benefits.

Have you and/or any of your family members been employed by or working under contract to either The City of Shenandoah or Montgomery County?

For 5 years I was employed by the City of Shenandoah. I am thankful for my time employed with the City. Other than my time employed directly by the City of Shenandoah. I, nor any of my family members, has ever been employed or worked directly under contract to Shenandoah or Montgomery County, notwithstanding companies which I was employed with doing engineering work on public infrastructure projects.

How long have you been consistently voting in elections? For which parties candidates? List all the elections you have voted in for the past 3 years (2014-2016).

I have been consistently voting in elections since I was 18. I have always voted in the Republican primary. While I don’t have my specific voting record over the past 3 years, I cannot recall missing an election including the City, primaries, runoffs, and general elections.

Would you vote in favor of spousal benefits for same-sex partners of State, County and City employees? Please explain your reasons.

As a conservative, one of my primary objectives as a City Council member will be to limit government. One method to limit government in the City will be by not involving myself in political matters beyond the scope of Shenandoah. Since the fiscal year 2014, the City has seen a greater than 50% increase in healthcare coverage. Beyond meeting state and federal law, the City should be looking at methods to reduce its benefits obligations not increase it. For example, I am proposing eliminating the taxpayer funding of insurance premiums for members of City Council.