Dallas Council Reluctantly Agrees to Accept Reduced Amount in DART Sales Tax Revenue
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It was evident months ago when Dallas Area Rapid Transit officials began arguing with Dallas City Council members over how much excess sales tax revenue was due the municipality that the discussion wasn’t going to end well.
The matter went into mediation and an agreement was reached that the city would receive significantly less than the originally-promised $111 million because DART already committed some of the city dollars toward “betterment projects” within the Dallas limits. The transit authority also penalized the city for what they say were intentional permitting and plan-review delays on the Silver Line project.
The issue resurfaced in a June 14 council meeting, as council members reluctantly agreed to accept $90 million, significantly less than the $111 million originally promised.
At least one council member, District 12’s Cara Mendelsohn, said she doesn’t think they’ll ever see the $90 million.
All the funds must be used to complete projects that will benefit DART’s public transportation system or provide complementary transportation services in Dallas.
“These are not funds that we can just sit around and wait on,” said Councilman Omar Narvaez, who chairs the transportation and infrastructure committee. “DART is not going to change their minds. They have put a line in the sand and said [we] can take it or leave it. I cannot sit here in good conscience and try to get a slightly better deal and give up on $90 million that we desperately need … especially in our most vulnerable neighborhoods.”
Broken Trust With DART
District 12 resident Maura Schreier Fleming was one of several who criticized the fumbled agreement.
“Dallas city staff needs to exercise a lot stronger and wiser negotiating skills with DART,” Fleming said. “DART has a history of making false statements to the public and elected officials to gain an advantage.”
The sentiment also was underscored by Mendelsohn, who said an interlocal agreement between the city and DART is poorly and vaguely written to purposely hold the city’s funds hostage. Dallas has been targeted by DART and treated differently than the 12 other member cities, she said.
“This is a proposal to penalize ourselves with our own tax dollars,” Mendelsohn told her colleagues. “We must seek a solution that’s legally sound and fair or we’ll make this deal thinking we’ve put this issue to bed, but we’ll never see the dollars expected and it will be too late to do anything about it. If you approve today, you will be risking any dollars because you will have given away your authority and your fiduciary duty.”
What’s Next For DART And Dallas
Dallas was treated differently than DART’s other member cities because the transit authority accused the city of causing permit and design review delays, City Manager T.C. Broadnax explained during the June 14 briefing.
The negotiations resulted in an agreement that DART put about $30 million into escrow and release the funds contingent upon the city’s ability to remain in good standing and build back trust, Broadnax added.
“If we don’t sign the [interlocal agreement], we’re not going to get any resources,” Broadnax said. “You can put the heat on me and my team to perform going forward to ensure that we get the $90 million. If there’s anything within the [memorandum of understanding] that speaks to them extracting penalties from us, we will work diligently to make sure we resolve those before any penalties come against the $90 million …
“Let’s move on,” Broadnax continued. “All we’re doing is delaying, again, the city receiving the resources. People may not like the project, they may not like DART. At the end of the day, the money is green, we’ve got needs, it’s their resources to give, and they don’t have to give them. The only thing we have to say is, ‘I guess you don’t get a train.’ We would be in default of the original ILA if we sat down and did nothing.”
A June 9 memo issued by Assistant City Manager Robert Perez addressed some additional council concerns. The city attorney’s office raised its own concerns about the wording of the interlocal agreement. No other member city has been treated like Dallas, but the other municipalities have signed interlocal agreements because they want the money, Broadnax said.
DART has said it won’t amend the agreement again, so the only option is to accept DART’s terms or not get any money at all, Broadnax reiterated.
The reason for the project delays, Mendelsohn countered, is DART’s incompetence and poor project management.
“I want this money, too,” she said. “I will fight to get every dollar for our city because it’s not just about my one district … I’m just going to tell you, we will not see this money. It will further erode our relationship [with DART] when that happens.”
Mendelsohn attempted to delay the matter to the first agenda meeting in August. The council will be at recess for the month of July.
Ultimately, a council majority got on board with Broadnax’s repeated drumbeat that DART had no intention of amending the interlocal agreement and a delay wouldn’t accomplish anything.
“I feel like the words coming out of my mouth, people don’t understand,” he said. “To want and think [an amended agreement] is a possibility, you might as well ask if a unicorn is going to float in here. It’s not going to happen.”
CandysDirt.com will continue following this story. To read more about how the excess sales tax revenue will be spent if and when those dollars become available, check out this story from June 8.
