STOP the Lindale Municipal Management District

The Lindale Neighborhood Association has proposed creating a new layer of government called a Municipal Management District (MMD) in order to finance reconstruction of streets in Lindale 1 and 2. MMDs have the power to tax property owners and issue bonds and are not accountable to residents.

Note: Under the proposed Lindale MMD your property taxes will rise 30% or more a year for at least 20 years!

* Lindale MMD Tax Rate: .011018 (residential) based on Full reconstruction estimate provided by Corpus Christi Assistant City Manager Oscar Martinez at the May 1, 2013 meeting of the Lindale Neighborhood Association. Download the Original MS PowerPoint presentation | View the PDF version

Formula: Property Value (no deductions) x MMD Tax Rate (.011018) = Additional Tax collected by MMD

Voluntary vs. Compulsory

While we support voluntary efforts by the Lindale Neighborhood Association to improve the quality of life in Lindale, and recognize the value of the many worthwhile projects the Association has accomplished (entry signage and landscaping, park benches, community garden, concerts in the park, etc.), and while we share the desire to repair our very neglected streets, drainage, and other infastructure, the creation of a new taxing entity crosses a line from voluntary participation to compulsory participation.

A Few Objections to the creation of Lindale Municipal Management District

The creation of a MMD and the additional taxes that we property owners will incur does not take into account some realities about our wonderful neighborhood.

1. Streets are a City responsibility for which we already pay taxes. Street repair, maintenance, and reconstruction is a responsibility of the City of Corpus Christi for which we pay property taxes, sales taxes, and various utility taxes and fees, and soon we will be paying a $5 - $7 a month street maintenance fee on our utility bill. MMDs are a way for governments to increase taxes without the accountability of normal methods. We do not feel that we are under-taxed.
2. Lindale streets are "through streets". Lindale is not a private gated community nor is it a community with a limited number of entrances and exits. All Lindale streets are open to and used by all Corpus Christi drivers. Lindale streets receive heavy through traffic traveling between Alameda and Staples. In addition, the location of HEB and other neighborhood businesses and schools (Ray High School, Incarnate Word Academy, Menger Elementary) contribute heavily to non-Lindale traffic on Lindale streets. Lindale residents should not be asked to pay for streets which arguably receive most of their wear and tear from non-Lindale drivers. Streets open to and used extensively by the public should be funded by the public.
3. Not accountable to Lindale residents. MMDs are not elected governments and are not accountable to the residents of their district. We do not vote to create a MMD. MMDs are administered by a non-elected Board of Directors which is initially appointed by a special act of the Texas State Legislature and subsequent Board members are appointed by a vote of the Corpus Christi City Council. While a MMD can be created by the actions of very few individuals, a MMD can only be dissolved by a petition/vote of 75% of property owners. A MMD cannot be dissolved as long as there are any outstanding bonds and the street project is going to require a 20 year bond.
4. Your property taxes (and Lindale MMD taxes) will increase. If the streets are reconstructed your property values will rise. That's a good thing if you are selling and moving out of Lindale. Not so great if you plan to stay in your home. If your property value increases then your property tax will increase as well as the new Lindale MMD tax that you owe to the Lindale MMD.
5. Neighborhood properties less marketable. The additional property tax burden of MMDs make neighborhood properties less marketable than properties in neighborhoods outside the MMD. If you decide to sell your home, this additional MMD tax burden must be discosed to the buyer. Consider this, if you are deciding between two houses, one in Lindale with an increased tax burden due to the Lindale MMD and one in Del Mar or Morningside with no additional tax burden do you think that the additional taxes would weigh into your decision?
6. Disincentive for neighborhood businesses. The additional tax burden to businesses located in the Lindale MMD creates a disincentive for businesses to locate in our neighborhood. If HEB, Whataburger, or other businesses can move one block down the street and avoid tens of thousands of dollars in taxes, what is their incentive to stay and provide convenient services to our neighborhood? It was also proposed that the Lindale MMD could construct a Tax Increment Financing district (TIF) to collect sales tax from district businesses. This is an additional burden on local businesses and a further disincentive to stay in our neighborhood.
7. Everyone in Lindale does not have income security. There is considerable income disparity in the Lindale neighborhood. While for some residents the additional tax burden may not affect quality of life, for others who are living "paycheck to paycheck" the additional burden may create a situation in which they may not have sufficient funds for normal monthly staples such as food, clothing, utilities or other important expenses.
8. "It's the economy, stupid." In the current economy there are many people who have been laid off a job or are unable to find full time employment or employment in their field of expertise. One out of six American households are on food stamps. Many small business owners are struggling because their customers do not have the same expendable income they had only a few years ago. If there ever was a time to consider "taxing ourselves" to provide a service that should have been provided all along by the City, the present state of our economy argues that this is not the right time.
9. A Municipal Management District is not the only solution for Lindale streets. There are other less coercive solutions to our street problems that do not create an unfair tax burden on Lindale residents such as City Bond Issues and Assessments.
10. Compulsory action is not in the spirit of Lindale. Lindale is a wonderful and rare thing in the world. A place where neighbors watch out for one another and genuinely care about one another. Walking around the neighborhood we meet new friends and visit with old friends. The element of coercion, even if done in a democratic manner, does not contribute to the peaceful coexistence of neighbors which is what most of us love so much about Lindale.

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)