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Aquifer board cracks down on unpaid irrigation loans

By Marty Kufus

LA VERNIA — In a first-ever move, the ground-water district’s board voted May 30 to take action against three area farmers who are overdue in payment of loans made for irrigation.

The debt totals about $75,000, the general manager of the Evergreen Underground Water Conservation District said.

The board of directors of the Evergreen, a taxational entity, also was briefed on a financial program to lure major residential development to Floresville.

The Evergreen, which is headquartered in Jourdanton, met in the S.S. Water Supply Corporation’s offices near La Vernia.

S.S. Water Supply’s general manager, Steve Snider, is an Evergreen board member representing Wilson County.

Also attending last week’s meeting were Evergreen President Ken Stephens of Atascosa County; Vice President Paul Bordovsky of Karnes, Secretary-Treasurer William Ruple of Atascosa, and board members Clifton Stacy and Blaine Schorp of Frio, Doug Brownlow of Wilson, and Fabian Jendrusch of Karnes County.

Wilson County member Mark Mitchell was absent.

Loans

Three area farmers — one each in Wilson, Atascosa, and Frio — are badly overdue in payment of loans made for the purchase of high-efficiency irrigational equipment, according to discussion.

Since 1993 the district has made 60 to 70 low-interest, seven-year loans using about $3 million from the Texas Water Development Board, Evergreen General Manager Mike Mahoney said.

The three farmers have made little effort to work with the Evergreen on their debts, according to discussion, and one even has failed to insure the equipment as required under the terms of the loan.

The Evergreen’s attorney has contacted the farmers without result, according to discussion.

A representative of the state water board urged the Evergreen to take action, saying there is “no free ride.”

Assistant Audit Manager Dick Maddern, from Austin, said the Evergreen’s position is no different than that of a bank having to pursue a delinquent loan.

Ruple asked Mahoney “how would we go about repossessing the [farmers’] equipment?”

Mahoney recommended the three farmers be notified of a final deadline and pay up “or we will put the equipment up for bids.”

Stacy made a motion: The Evergreen’s staff will notify the three farmers of a final deadline of June 10. After that, if the loans aren’t paid off, their equipment will be advertised for sale to the highest bidder.

The board approved the motion unanimously.

Maddern said afterward the Texas Water Development Board has funded more than $30 million in loans statewide since the late 1980s for farmers’ purchases of irrigational equipment that efficiently uses water and energy.

Housing development

A consultant representing Floresville explained a plan to create a ‘tax-increment reinvestment zone” (TIRZ) that ultimately would increase the Evergreen’s share of local property-tax revenue.

Consultant Craig Blume, of San Antonio, said that in a TIRZ, the financial risk “is all on the developer to run a successful project.”

To a local taxational entity like the Evergreen, he explained, there are two important dollar amounts to keep in mind: the appraised value of undeveloped land and its value after development.

The difference in property-tax revenue between undeveloped and developed is the “incremental increase.”

Under the terms of a board-supervised TIRZ, the developer would pocket that incremental increase over a set number of years in order to recover his costs of building roads and sewer and water lines.

During that period, taxational entities would receive property-tax revenue based on a “frozen” pre-development appraisal.

But after that, Blume said, local entities like the Evergreen would receive property taxes on fully appraised development.

A tract of 600 acres on the southwestern edge of Floresville, near its River Park, is being considered as the site for a development of single-family houses with a “green belt,” according to discussion.

First, Floresville’s city council would have to approve a developer’s master plan, Blume said.

Then, the local taxational entities (state law now excludes school districts from TIRZ projects) would elect to get involved — or not.

“Nothing happens … without this board electing to participate,” he told the Evergreen’s board.

Each entity could influence the terms of the zone’s master agreement, Blume said. The affected entities would be Floresville, the county, Wilson Memorial Hospital District, and the Evergreen.

The Evergreen, for example, could require homeowners’ use of indigenous grasses or xeriscaping and prohibit St. Augustine grass, which needs more water.

The agreement also could require the employment of only local builders, Blume added.

The Evergreen’s board took no action on Blume’s presentation.

Public’s comments

Two members of the Wilson County Water Action Project spoke to the board.

Project Chairman Diane Savage repeated her group’s opposition to regional-water planning options for large-scale pumping of aquifer water in Wilson County.

She said the Texas Water Development Board has issued erroneous aquifer-storage data and county population figures.

Mahoney said the Evergreen has hired the HDR Engineering firm to calculate the amount of aquifer water in storage and available in the district (April 26 Wilson County News).

A June 14 meeting in Jourdanton is set for further discussion of that ongoing study, he added.

Before the Evergreen can update its ground-water management plan, it needs figures “based on good scientific data,” Mahoney said.

Savage repeated her contention that the water board has estimated Wilson County’s population figures low.

Mahoney said if her group has different figures, then “yes, we would like to have ‘em.”

Project member Gaylon Click later urged the Evergreen board and staff to read the Gonzales County Underground Water Conservation District’s management plan.

Portions of that document might be relevant as the Evergreen revises its plan, Click said.