The concept of a local government corporation (LGC) is not new in Texas.
Scurry County joined other communities in forming a LGC, which was established through the Texas Transportation Code.
A LGC is a non-profit corporation created to aid and act on behalf of one or more local governments to accomplish any governmental purpose of those governments, according to the code.
County Judge Ricky Fritz, who is one of three members on the county’s corporation board, said it is “needed now more than ever.”
When asked if the LGC was established because of previous discussions with U.S. Consults, Fritz said, “yes.”
“I am really excited about the potential. I am anxiously awaiting proposals. We now have a good venue, we are just waiting for a dance partner,” Fritz said. “I wish we had something specific to vote on, but there’s not. Hopefully there will be something soon.”
U.S. Consults, which is a privately-held consulting company based in Jackson Hole, Wyo., has discussed potential revenue sources with five county taxing entities since 2013 — Scurry County, Snyder ISD, Western Texas College, Scurry County Hospital District and Ira ISD.
Board members and other officials for each entity signed non-disclosure agreements with the company concerning any information about the discussions.
Jim Allison, a lawyer from Allison, Bass and Magee, LLP, told the Scurry County Commissioners’ Court that the corporation would allow the county to engage in revenue-producing projects without costing taxpayers extra money.
Allison said he has aware of some possible projects for the corporation, though they are still being developed.
“We are looking at a project, at this time, that would involve oil and gas interests,” Allison said. “That’s pretty heavy activity in this county. We know there’s a lot of interest out there. We can’t say a great deal about it yet, because it’s still in development, but we’re hopeful we would have a project to bring back to you within a few weeks.”
LGCs have been established in different areas of the state, including Amarillo, El Paso, Georgetown, Seguin, Dallas, Houston and Austin.
One benefit of a LGC, according to a 2004 report presented during a Texas Municipal League presentation, is greater flexibility in negotiating and awarding contracts related to the development of a municipal project carried out by the corporation. One or more governmental entities, such as Scurry County and Snyder ISD, may contract under the transportation code for a shared project, the report stated, the report stated
LGCs may also fund the construction of a sports or community project venue or accept land from a government entity in order to perform a project.
The report stated two cities created a corporation to acquire, construct and operate a water utility system and four cities and a county created a corporation to own, fund and operate a performing arts facility.
Fritz said the public may donate money to the corporation, but the earnings “may not benefit a private interest,” the articles of incorporation state.
“Scurry County is entitled at any time to receive any income earned by the corporation that is not needed to pay the corporation’s expenses or obligations,” the articles of incorporation state.
All of the corporation’s board meetings will be subject to the Texas Open Meetings Act. Allison said there is not necessarily a fixed timeframe for when LGCs have to meet, though he said once a corporation is established, directors usually meet at least quarterly to review projects and activities.
“They can meet as frequently as needed,” Allison said. “In the initial phase of getting the project up and running, they might meet weekly. Once you have something up and running, it’s more a matter of supervising.”
Fritz said the public will be given 72 hours notice of any meeting. He said the first meeting, which has not been set, will include the election of officers and approving the bylaws.
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