ELECTION 2017

There are a number of signs and posters around town saying vote “no” on the MDD.

The idea, however, has been bandied around for a number of years by those in favor.

Residents of Copperas Cove will decide this election on the issue of possibly changing over to a Municipal Development District. Election Day is Tuesday.

Proposition A, as worded on the ballot, calls for: “The authorizing the creation of the Copperas Cove Municipal Development District and the imposition of a sales and use tax at the rate of three-eighth percent for the purpose of financing development projects beneficial to the district.”

If approved, the MDD would not be funded until the Economic Development Corporation was dissolved. That would take a separate election, more than likely in May.

There would not be an increase in taxes.

If the MDD is passed, and the EDC is dissolved, tax money from the EDC would be transferred to the MDD.

Under the current Texas structure, the sales tax is 8.25 percent, of which the state gets 6.25 percent. The remaining 2 percent amount is considered the local option. The economic development portion is three-eighths of 1 percent of sales and use taxes.

That formula would not change with an MDD.

The primary purposes of an EDC is to create or retain primary jobs. A MDD is a special purpose district created for the purpose of generating economic development and growth opportunities within the boundaries of the district. The MDD also allows a government to use tax dollars for quality of life projects such as parks and sidewalks.

Unlike an EDC, with an MDD:

Boundaries for tax collection can be expanded beyond the city limits.

Cove council members could be included on a MDD board of directors.

The MDD does not require public hearings, performance agreements or elections, although bylaws could be created to tackle some of those issues.

MDD projects would include all of the projects from a Type B economic development and community development plus a convention center facility, a civic center building, hotel or auditorium.

jsteers@kdhnews.com | 254-501-7464

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