Galvestons for Fair Tax Treatment

Facts:
1. The residents of Galveston are the city’s largest, and most efficient, economic driver and pay local, state, and federal taxes.
2. The Port of Galveston (PoG) is a municipal entity that pays no local, state, or federal taxes.
3. Galveston voted to buy the PoG in 1945 with the promise, by city leaders and the Daily News, that payments (property taxes) to the city would continue as they had in the past.
4. In 1942, PoG payments to Galveston represented 13.2% of the PoG’s gross revenues.
5. In 2014, the PoG payment to the city represented 0.58% of the PoG’s gross revenues.
6. If PoG payments remained at 13.22% of gross revenues, they would have paid the city $3.7 million in 2015. Actual 2015 PoG payment was $188,076.
7. Since 1975 Galveston taxpayers have had their property taxes increase, on an annualized basis, by over 20%.
8. Since 1975 PoG payments to the city have increased, on an annualized basis, by 0.76%. [Note: Taking inflation into account, the actual rate of increase for PoG payments is negative.]
9. PoG revenues have increased with inflation since 1945.
10. If PoG payments to the city had kept pace with inflation, they would have paid the city $2.7 million in 2015. Actual 2015 PoG payment was $188,076.
11. By Charter, the Wharves Board and the PoG do not answer to Galveston’s City Council. Any lasting, permanent change to the PoG’s payments can only be accomplished through a Charter change.
I am asking the Galveston City Council to vote, this year, to place the following Amendments on the next Charter ballot.
1. Beginning on the first day of the city's next fiscal year, the Port of Galveston shall pay the City of Galveston 7.50% of all gross revenues, and any benefits received, on a quarterly basis, two quarters in arrears.
2. Failure of the Port to deliver the above payment on time shall result in the removal, within ten business days, of all Wharves Board members to be replaced by popular vote at the next available opportunity.
3. The City of Galveston shall make a payment, equal to 1/3 of the funds received from the Port of Galveston, to the Galveston Educational Foundation no later than 30 days after the funds have been received.