Kilgore News Herald Community Service Entry for Texas Press Association's 2013 BNContest

wading through

H.O.T. waters

Kilgore News Herald 2013 Community Service Entry

In late January, 2012, the Kilgore News Herald received a call from the director of a local museum, one of the city’s principal tourist attractions. He asked a simple question: “What are Hotel Occupancy Tax funds and how do I get some?”

Unprepared to provide a complete answer, the News Herald began investigating the city’s distribution of the tourism taxes: Who requested allocations? How much did they receive? How did they use the funds? How did city staff monitor the program?

As soon as the newspaper began looking into the HOT program, the president of the Kilgore Chamber of Commerce – which for years had received the largest portion of hundreds of thousands of dollars in hotel/motel taxes collected annually – attempted to block the investigation of his organization’s use of the public funds.

The chamber’s red flag reaction began a year-long series of articles: months of forensic reporting, ongoing coverage of the city’s allocation of the monies and steady pressure from the newspaper to ensure the funds, meant to increase tourism in the community and bolster the hotel industry, were being distributed and expended appropriately and according to state guidelines.

Brought into the light, the chamber’s use of the funds was ultimately found to be in violation of the organization’s contract with the city and, time after time, counter to state guidelines directing HOT expenditure.

After many Freedom of Information Requests, scores of interviews and conversations with city officials and employees and ongoing scrutiny, the News Herald’s coverage helped spur City Hall to more closely-monitor the Hotel Occupancy Tax collections and expenses toward proving a return on investment that followed the law and would lead to a positive impact on the community as a whole.

STIRRING THE WATER: February 11, 2012

Hotel tax raises millions for local tourism The Kilgore News Herald’s coverage of local Hotel Occupancy Tax usage began with an overall description of the city’s allocation program, its local history and its intent.

Immediately, Kilgore Chamber of Commerce President Mike Coston refused to respond to questions about his organization’s usage of HOT funds. In the following weeks, he avoided calls and refused to fulfill Freedom of Information Requests related to the newspaper’s investigation.

+

SATURDAY, FEBRUARY 11, 2012

KILGORE NEWS HERALD 2 SECTIONS, 18 PAGES

VOL. 81, NO. 12

AMERICA’S NO. 1 SMALL CITY

CAPITAL OF THE EAST TEXAS OIL FIELD

KILGORENEWSHERALD.COM

50 CENTS

Hotel tax raises millions for local tourism required to report how they spent the money to attract new visitors.

According to the Office of the Attorney General, there is a two-part test that all expenditures of local hotel occupancy taxes must pass. In addition to directly enhancing and promoting tourism and the convention and hotel industry, "likely to attract

Groups split revenue to attract new visitors

By JAMES DRAPER news1@kilgorenewsherald.com

With eight hotels and motels operating here, each year since 2005 the City of Kilgore has collected between $186,000 and $342,000 in taxes to be reinvested in

tourism through several local organizations.

The state levies a six percent tax on rented rooms that cost more than $15 per day and permits cities to add an additional Hotel Occupancy Tax to rooms that cost more than $2 per day, up to

seven percent of the value of the room. Kilgore and neighboring Longview both charge the maximum rate.

Over the past seven years, the local room tax has netted the community about $2 million. The organizations tasked with investing it are

visitors from outside the city into the city," the expenditures must also fit into specific categories defined by the state.

The City of Kilgore reinvests its collections through four entities, allocating the total by percentages approved annually by the city council. Each organization is capped at a certain amount

INSIDE

of projected collections and the overage is set aside for specific allocations by the council.

"We have historically always given out to the Chamber (of Commerce), the Kilgore Historical Preservation Foundation and the Shakespeare Festival," said Kilgore See TOURISM TAX, Page 3A

Sales tax allocations fall again for Kilgore

SPORTS: The Kilgore High School boys basketball team is trying to break almost 30 years of misery by making the playoffs this season.

See Page 10A SHOPPING SMART: Look inside for money-saving specials from CVS Pharmacy, East Texas Hardware, JC Penney, Walgreens, Lupe’s Mexican Restaurant and Mobbs Real Estate Group.

By JAMES DRAPER news1@kilgorenewsherald.com

Facebook:

Twitter:

Kilgore News Herald

KilgoreNews

KILGOROUND BILL WOODALL

+

SUMMER OF 2012 IS looking better.

WE feared it would be merely a season of heat and drought.

As it turns out, there will also be wooden-bat baseball.

MIKE Lieberman, general manager of the East Texas Pump Jacks, announced this week the Texas Collegiate League team will be back at Driller Park this summer.

IN THE “My, how time flies” category: This will be the team’s fifth season in Kilgore.

• AYRTON Chapman, daughter of Karol and Rusty Chapman, is getting an expense-paid trip to San Francisco.

SHE recently won a 2012 Student Award from Society for Photographic Education. She was one of only two undergraduate students in the nation to win the

NEWS HERALD photo by AUSTIN KING

Kilgore National Bank Executive Vice President and active community volunteer Pam DeCeault laughs with well-wishers Tuesday after being named Citizen of the Year.

Pam DeCeault named Citizen of the Year

BY AUSTIN KING

news2@kilgorenewsherald.com

Pam DeCeault was named Kilgore Citizen of the Year Tuesday.

“Kilgore is the city of stars. I can assure you our 2011 citizen of the year shines brightly,” Pat Nault told the crowd at the Chamber of Commerce banquet.

Nault, 2010 Citizen of the Year, was charged with introducing his successor.

“Swallow a goldfish for charity and look what happens,” DeCeault quipped. Last month DeCeault famously swallowed a live goldfish in exchange for a $1,000 donation at the Texas Two-Step event for Boys & Girls Club and

Khoury encourages city to ‘catch the wave’ in 2012

Judge Alvin Khoury

The future of Kilgore was discussed as the community’s Chamber of Commerce celebrated its 81st year of service Tuesday night.

Judge Alvin Khoury has taken the mantle of Chairman of the Board, succeeding Donna Beets.

Classified Crossword Daily Digest Horoscope Obituaries Sports

By JAMES DRAPER news1@kilgorenewsherald.com

Channel 5 may be due for a facelift if the city pursues a new fee funding public education.

During Tuesday's council meeting, Kilgore City Manager Scott Sellers plans to bring the council up-to-speed on Public Education Government channel fees and how they can be utilized here to fund new broadcasting equipment.

The numbers are still being crunched, but adopting the fee would mean an approximate $0.70 monthly increase to local

See KHOURY, Page 7A

Liberty liberates locals’ letters

NOW, THAT’S A BAR OF CHOCOLATE

6-7B 3B 8A 3B 4A 9-10A

Last year, the Chamber of Commerce launched the “Keep It In Kilgore” (KIIK) campaign to encourage citizens to shop locally and stimulate the economy.

“As the year progressed, I found that

City may seek broadcast fee for Channel 5

See CHANNEL 5, Page 3A

See KILGOROUND, Page 8A

INDEX

See SALES TAX, Page 3A

Habitat for Humanity.

DeCeault was born in New Bedford, Massachusetts. After her father passed away when she was only 7, DeCeault moved to Denton with her mother and older brother.

Denton would be DeCeault’s home until she graduated from See DECEAULT, Page 6A

For the fourth month in a row, Kilgore's sales tax showed a decline as it continues to fall behind statewide increases in revenue.

Texas' sales tax collections continued their upward climb in January at $2 billion brought in from December sales, 9.5 percent more than the same month last year. But Kilgore's allocation this month fell by 2.53 percent against the previous year.

The city's $1,139,746.51 check from State Comptroller Susan Combs did beat the $1 million mark again, and, while down, it’s better than the 18 percent dip

By JAMES DRAPER

Students ogle the 12,000 pound bar of World’s Finest Chocolate on display at the intermediate school on Thursday.

news1@kilgorenewsherald.com

Kilgore police investigators are filling out forms on behalf of Rodney Allen Ware this week after the tax solicitor was caught in the act stealing mail from residents.

The 28-year-old Kilgore man spends much of his days dressed in a Statue of

NEWS HERALD photo by AUSTIN KING

Liberty costume, waving at passers-by and pointing them toward an income tax preparation firm. He was still wearing the green toga at about 5:40 p.m. Feb. 6 when he was reportedly seen hiding letters he'd allegedly taken from mailboxes.

A neighbor reported Ware's 'suspicious activity' to the police department.

"One of our patrolmen

Rodney Allen Ware

See MAIL THEFT, Page 5A

903.984.2006 1615 Hwy. 259 N. • Kilgore, TX 75662 www.kilgoreford.com

903-983-1494 1201 Stone St. • Kilgore, TX www.walmart.com

+

CMYK

+

LOCAL

SATURDAY, FEBRUARY 11, 2012

KILGORE NEWS HERALD ◆ PAGE 3A

SALES TAX

CHANNEL 5

Continued from Page 1A

Continued from Page 1A

recorded in last month's allocation.

In Gregg County, only Longview and Gladewater showed increases, by 1.03 percent and 16.42, respectively.

Like Kilgore, neighboring cities White Oak, Warren City, Clarksville City, Eason and Lakeport all showed declines ranging from 15.79 percent to 51.05.

Factoring in all of the percent changes, countywide sales tax allocations were down a minimal 0.06 percent, just shy of $3,000 below last year's checks.

Rusk County showed an overall 2.85 percent increase with four of five cities coming in above last year's numbers – 0.25 percent for Henderson, 12.92 for Overton and 48.61 for Mount Enterprise.

Slow Christmas sales likely contributed to Kilgore's dip, said city finance director Lawanna Williams. It also underscores an ongoing concern about the possible relocation of oilfield services.

"Looking around town, you see a lot of these small offices that used to be open for these companies," she explained. "They're moving south and west to where the oil is."

With conservative budgeting for Fiscal Year 2012, though, Kilgore is prepared for volatility in its sales tax allocations, Williams said. Though the prior year brought $7.4 million from the state's allocations, the city's line item for sales tax in 2012 is $6.2 million.

"We're going to be down, but I don't think it's going to put us in a bind. We didn't want to get caught with it just making us come to a standstill if it didn't happen."

cable bills.

Improving the public access channel was No. 16 on the list of prioritized tasks discussed by the city council during their retreat with the city manager in November.

According to Sellers, state telecommunications franchise agreements allow municipalities to collect franchise fees from local telecommunications operators, like Longview Kilgore Cable TV, because those companies utilize a city's right-of-ways to install equipment and provide service to the community.

Beyond the franchise fee, municipalities have the option to exercise a PEG channel fee, typically one percent of gross revenue returned back to the community for the operation of a public broadcast, like Channel 5.

"That fee goes to actual capital equipment expenditures for that channel. It cannot go toward operational costs," Sellers explained. "We would look at installing equipment for possible broadcast of council meetings, broadcast of other city functions and events. We would take what we currently have as far as a PowerPoint approach to the channel to more live television or motion-picture approach."

Doing so would require more studio equipment, and the city would likely utilize a volunteer, intern or staff member to man the controls at the city's expense.

"Using Channel 5 in an interesting and dynamic way is a great forward step toward enhancing the visibility of government, the transparency of government and provides a more interesting medium for people to get involved," Sellers said. "Where I have implemented a PEG fee in the past, the decision has been very positive for the community.

While it could add anywhere from 50 cents to even a dollar a month to a subscriber's bill, the benefits of having a more accessible government far outweigh the costs.

"I have not found that the fee has been as much of an issue as I've heard from positive feedback from the community on how accessible and transparent the government is. That's what people are looking for today, and we want to be able to provide that to them."

NEWS HERALD photo by AUSTIN KING

A Sabine Elementary student gives his best at the school’s Jumpa-Thon Friday. Jump-a-Thon promotes being active and exercise to students.

TOURISM TAX Continued from Page 1A

Finance Director Lawanna Williams, who has worked for the city since 1987.

"When we started our Main Street program we reallocated to include them."

The city transitioned to its current allocation model under former city manager Jeff Howell. Previously, the Chamber of Commerce received five parts of the seven percent rate; KHPF and TSF each received one part.

The Chamber still receives the lion's share of collections, 68.42 percent capped at $195,000 this year. Both KHPF and the TSF receive 12.28 percent, up to $35,000. Kilgore Main Street program initially received 3.6 percent of the total in its first allocation in 2007; the amount was increased to 7.02 percent for Fiscal Year 2012, up to $20,000.

Room tax collections are distributed in monthly payments according to the percentages.

That way, Williams said, if collections one month are lower than anticipated, the city is not out any money – "They get 100 percent up until they reach their max, and it's usually late summer."

The approved organizations, and others who fit the state's tourism guidelines, can request the city council allocate additional funding

from the excess collections.

"It's kept in a separate set of books all by itself. It's not comingled with any of the general fund. Right now there's almost $85,000 (in that account). That mostly came in from last year. We had a really good year last year," Williams explained. "Historically, the Chamber has always come back and asked for more. So did Main Street."

For example, she said, in 2010 the Chamber requested, and was awarded, an additional $7,500 for the Kilgore Snow Hill. The same year, the Main Street Program tapped into the overage for an additional $18,000 for downtown lighting. Neither KHPF nor TSF have requested additional funding above their capped amounts, Williams said.

In fiscal years 2010 and 2011, the city exceeded its projected collections of $277,000 and $275,000 by 6.9 and 24.3 percent respectively – a two-year total of $638,000 to be spent attracting more 'heads in beds' in local rented rooms. Onethird of the way into FY2012, the city has already received 44.7 percent of its projection, $127,600 of an anticipated $285,000.

"What we did, from last year with the $275,000, we upped the anticipated amount by $10,000. That total $10,000 was ear-

marked for the downtown stuff," Williams explained.

"The anticipated increase we shared with the Main Street. We really want that to stay with the downtown bands, with the events that are going on downtown."

Hotels and motels contributing to the revenue include Best Western Inn, Comfort Suites, Days Inn, Hampton Inn, Holiday Inn Express, America's Best Value Inn, Ramada Inn and Delux Inn. State law allows occupancy tax to be spent in six categories, only five of which apply to the city of Kilgore. According to the "Handbook on Economic Development Laws for Texas Cities," the collections can fund "the establishment, improvement or maintenance of a convention center or visitor information center" if that facility is primarily used to host conventions and meetings. The monies can fund administrative costs for facilitating convention registration and can pay for tourism-related advertising and promotions of the city or its vicinity. The HOT revenues can fund programs that enhance the arts as well as fund historical restoration or preservation programs.

The sixth category, for funding sport events, does not affect Kilgore as it applies only to cities located in a county with a population

smaller than 65,000.

The attorney general’s office also notes the simpler test: the tax may not be used for expenses which are not directly related to increasing tourism.

"In summary, local hotel occupancy tax revenues may only be spent to establish or enhance a convention center, cover the administrative expenses for registering convention delegates," the handbook states, "pay for tourism-related advertising and promotions, fund programs that enhance the arts, pay for historic restoration or preservation projects that will enhance tourism, or sporting events in which the majority of participants are tourists in cities located within a county with a population of 65,000 or less.

Also, in cities with fewer than 125,000 people and a HOT rate of more than three percent, at least one percent of the rate ($40,714 of the projected collections here in FY2012) must be spent on advertising and promotion.

There is no time limit within which a city must spend all of the accrued funds, but cities are required to keep track of hotel occupancy tax collections and expenditures in order to ensure the funds are expended according to

the law. According to the state's guidelines, beneficiaries of the Hotel Occupancy Tax must submit quarterly reports on how the funds are being spent.

"They are supposed to give us quarterly reports showing us how they spent the hotelmotel money," Williams explained. The documents are public records.

As the Kilgore Main Street Program is tied to the city, at the News Herald's request Williams provided records of HOT-related expenditures dating back to Fiscal Year 2008. The majority of items, ranging from $61.65 to $10,000, are for downtown expenses related to Fridays After 5 concerts, advertising and Christmas lights.

The Texas Shakespeare Festival's reports from 2011, provided to the city by Kilgore College, include a range of expense items: rental for stage weapons ($500), 4,000 season programs ($6,850), costumes ($1,135), meals for members of the company ($7,820) and more.

"They (Texas Shakespeare Festival) are very appreciative," Williams said. "We get a letter of thanks every month when we send them their share. They are very appreciative of it."

Kilgore Historical Preservation Foundation's most recent report to the city cov-

ered Nov. 1, 2010 to Oct. 31, 2011, noting deposits of HOT allocations (and interest accrued on the money) alongside its regular expenditures for derrick restorations and events.

According to staff members, the city has no record of the Chamber's HOT expenses after Sept. 2010.

“We have not received anything from the Chamber of Commerce for quite some time,” Williams said, responding to the News Herald’s request for information.

“They have not furnished us with the reports we need to share with you.”

Chamber secretary Barbara Garrett said the organization has submitted the requisite quarterly reports on Hotel Occupancy Tax expenditures and has copies on hand but said she could not provide the records without the approval of Chamber President Mike Coston.

As of press time Friday, Coston had not returned calls to his office this week.

Without records of the Chamber's HOT expenses, the News Herald was unable to determine if the Hotel Occupancy Tax allocations met the required one-seventh investment in advertising and promotions or if all expenditures fell within the state's statutorily-defined categories.

DIVING DEEPER: February 15, 2012

City awaits Chamber’s tax reports

February 25, 2012

Chamber offers summaries of tax expenditures

March 7, 2012

City reconciles chamber’s account of Hotel Occupancy Tax funds use Coston continued his attempts to block the News Herald’s coverage of his organization’s Hotel Occupancy Tax revenue use and maintained his silence on the issue. The City of Kilgore fulfilled the News Herald’s FOI requests, enabling the newspaper to develop background on the chamber’s HOT usage and establish the organization’s negligence in its contractual reporting requirements. The ongoing investigation by the News Herald prompted further review of the chamber’s records by the city in order to answer the newspaper’s queries, revealing further accounting problems and improper usage of the HOT funds.

+

WEDNESDAY, FEBRUARY 15, 2012

KILGORE NEWS HERALD VOL. 81, NO. 13

1 SECTION, 10 PAGES

INSIDE SPORTS: Kilgore, Sabine boys basketball teams clinch playoff trips; KC sweeps Panola College.

See Page 10 SHOPPING SMART: Look inside for money-saving specials from Alford & Pace A/C & Heating, Blake Furniture, East Texas Hardware, Johnny’s Ozark Fried Chicken and Sam Azzam – Allstate Insurance.

Facebook:

Twitter:

Kilgore News Herald

KilgoreNews

AMERICA’S NO. 1 SMALL CITY

CAPITAL OF THE EAST TEXAS OIL FIELD

KILGORENEWSHERALD.COM

Tuition continues rise at college KC officials attribute latest increase to ongoing cuts in state funding

BY AUSTIN KING news2@kilgorenewsherald.com

Kilgore College trustees voted Monday night to raise fees and tuition for the next school year.

from school districts in KC’s tax district will have tuition raised by $2 per course hour.

Students from other districts, such as Longview and Henderson, will see an increase of $6 per semester hour. Out-of-state tuition will also increase by $6 per course hour.

In total, hourly tuition

The decision comes in the wake of a string of state cuts in funding for community colleges.

The general education fee will be increased by $2 per semester hour. Students

rates for in-district students will be $57. For out-of-district students, tuition will be $125.

Since 2005, tuition rates have steadily risen. Excluding the upcoming tuition increase, general education fees have been increased by $11.

In-district tuition has been raised by $4 and out-of-dis-

BILL WOODALL

+

See KILGORE COLLEGE, Page 2

By JAMES DRAPER news1@kilgorenewsherald.com

Allowing for the possibility the originals may have been misplaced, city leaders are seeking copies of the Kilgore Chamber of Commerce's reports of how tourism dollars were spent.

The chamber, one of four organizations that receive Hotel Occupancy Tax revenue, has collected approximately $1.7 million dollars from the revenues since Fiscal Year 2001. The total includes disbursements of $203,078 in FY2011 and $197,000 the previous year.

Benefitting organizations – tasked with investing the money in activities that put more 'heads in beds' at local NEWS HERALD photo by JAMES DRAPER

2011 First Lady of Kilgore Jacqueline Carter (center) visits with K Castles (left) and Evelyn Bolding Monday afternoon during the Beta Sigma Phi Sorority’s First Lady Valentine’s Luncheon at First Baptist Church.

By JAMES DRAPER news1@kilgorenewsherald.com

There will be a contested race on the city's May 12 ballot following another filing for city council this week.

Kilgore High School Orchestra Director Tristan Roberts on Monday challenged incumbent Neil Barr for Place 3.

Barr, who is wrapping up his first term on the council dais, said it's only natural that another person is angling for his seat, but he's not letting it go.

"I think I should win," Barr said simply. "That's the way it is. Sooner or later, somebody's going to challenge you. If it's in school, your job or whatever – especially in politics. Someone wants your job or thinks they can do better, they're

X X 4 X 4 X

See BALLOT, Page 3

BY AUSTIN KING news2@kilgorenewsherald.com

Neil Barr

Tristan Roberts

On February 25, 1987, the Early Childhood Center was opened at Kilgore College. Now, the ECC prepares to celebrate its 25th anniversary of service to the college and community.

“The primary purpose upon opening was for the center to serve as a model program where students in the Child Development and Education Department could observe excellence in teaching and have opportunities to interact with and plan activities for children,” said ECC Director Lara See CHILDHOOD CENTER, Page 3

Drugs smuggled in body cavity land trio in jail after weekend traffic stop

By JAMES DRAPER news1@kilgorenewsherald.com

INDEX

going to challenge you."

Roberts, for his part, said there was no particular motive that led him to challenge Barr. The two don't know each other personally, nor is Roberts familiar with his platform or voting record.

"I haven't spoken with him," said Roberts, 25. But after visiting with candidate Sherry Bustin, who is running for Randy Renshaw's open seat, he's unwilling to challenge the Allegiance Specialty Hospital CEO. "I'd rather serve with her than me win and her not be on the board.

"I don't think I really had a plan about it, I just hope it's going to work out."

As for Barr, 74, he accepts the challenge

See REPORTS, Page 3

KC center marks 25 years teaching childhood studies

Two candidates vie for council Place 3

See KILGOROUND, Page 4A

Classified Crossword Daily Digest Horoscope Obituaries Sports

trict by $20. Out-of-state tuition has risen by $26.

With the new tuition in place, the increases will be $13, $6, $26 and $32 respectively.

In other business, the Board of Trustees approved recommendations given by

City awaits Chamber’s tax reports

KILGOROUND THERE ARE, WE HAVE been assured, no Native Americans buried on the property Kilgore school district bought on the south edge of town.

CONTRARY to the rumor making the rounds, construction crews did not uncover a burial site. They did turn up some pottery shards and a couple of arrowheads, though, we’re told by superintendent Jody Clements.

• WHY is it we call a Native American cemetery a “burial ground” instead of a cemetery?

• FOR THE first time since 1982 you have an opportunity to buy a KHS boys basketball playoff shirt.

THE commemorative shirt is available for $10 bucks. To get a shirt, or to find out if there’s still one left, call Sharon Breedlove at the KISD athletic department office, 903-988-3920.

• THE OFFICIAL Texas Gumbo Cook-off? Who knew it was The Official?

Who even knew Gumbo was a Texas thing?

PIRTLE United Methodist Church will celebrate – with a boost from its Marketing Vice President and Pastor, Dudley Plaisance – its 165th anniversary this year. The celebration calendar gets going with the gumbo thing on March 3.

TO correctly pronounce

50 CENTS

An early morning traffic stop Saturday netted guns, cash and thousands of dollars worth of black tar heroin a suspect had concealed in a body cavity.

Driver Jedarious Rashad Lowery's erratic driving caught the attention of Cpl. Terry Linder, Kilgore Police Department spokesman Roman Roberson said Monday. At about 2:46 a.m., the 19-year-old Dallas man was reportedly travelling without headlights

and had crossed over into oncoming traffic when he was pulled over.

Approaching the vehicle, Linder noticed a strong odor of marijuana coming from within and found other evidence of drugs during an ensuing search.

Two loaded handguns (one of which was stolen), bags of marijuana, drug paraphernalia and $3,260 in cash were seized. The vehicle's three occupants arrested, including Lowery, Kadeem Brackins Ray, 21, and Jerry Bernard Collins II, 22, NEWS HERALD photo by AUSTIN KING

See DRUGS, Page 6

Dawn Youngs performs a monologue as part of her audition for a spot in the 2012 Texas Shakespeare Festival.

903.984.2006 1615 Hwy. 259 N. • Kilgore, TX 75662 www.kilgoreford.com

903-983-1494 1201 Stone St. • Kilgore, TX www.walmart.com

+

CMYK

East Texas Hardware

1111 N. Kilgore St., Kilgore, TX • 903-984-2036

+

LOCAL

WEDNESDAY, FEBRUARY 15, 2012

KILGORE NEWS HERALD ◆ PAGE 3

REPORTS Continued from Page 1

hotels and motels – are required by the state to submit quarterly reports on tourismrelated expenses. The City of Kilgore has provided copies of the most recent expense reports for the Texas Shakespeare Festival, Kilgore Historical Preservation Foundation and the Kilgore Main Street Program.

City staff members say they do not have the reports on the chamber's expenses after Sept. 2010 but acknowledge the documents could simply be lost.

Staffing changes and relocated offices may be to blame.

"Because of transitions and moving around, we could not verify that the chamber records were not there positively," Mayor Ronnie Spradlin said Monday. Either way, "In the future, (staff ) will request and have a place for the reports from the agencies that get the hotel/motel tax.

"I think it'd be appropriate that any copies we have missing from our files, we request backup copies of them."

Tuesday afternoon, chamber president Mike Coston hand-delivered to the city an unitemized plan totaling $200,000 for spending Hotel Occupancy Tax revenues in the current fiscal year.

The document, provided to the News Herald by city staff, notes a variety of unvalued chamber expenditures including salaries, administrative costs, advertising, promotional shows, special projects and other anticipated expenses.

As of press time, attempts by the News Herald to attain copies of expense records from the chamber have been ignored, and chamber president Mike Coston has not yet commented on the organization's investment of its HOT allocations.

City council member Randy Renshaw is confident the documents will turn up.

"That would surprise me that they wouldn't be willing to furnish the numbers.

They give it to the city," he said. "There's never been a problem with the chamber giving the reports. I would think that it is just a misplacement."

The longest-serving member of the council, Renshaw was elected to the position

in 2003. The city wasn't always strict on the Hotel Occupancy Tax reporting until former city manager Jeff Howell's tenure, Renshaw explained, but he's sure the numbers are in order.

"There's not a question about the funds and how they're utilized," Renshaw said. "I don't think that's a problem at all."

Coston was scheduled to bring the chamber's annual report to the city council at their Jan. 24 meeting but was unable to attend.

According to Kilgore City Manager Scott Sellers, the presentation has not yet been rescheduled but will be on tap for an upcoming meeting.

"The city would expect to receive those (HOT) reports in time for the annual report from the chamber," he added.

"We will work with the chamber to locate those reports and ensure that all the necessary preparations have been made for their annual report."

The state collects a six percent HOT rate on all hotels and motels and stipulates the ways municipalities can collect and utilize their own rate.

The City of Kilgore applies the maximum-allowed Hotel Occupancy Tax on rooms rented at eight hotels and motels within the city limits – seven percent of the value.

The city collected approximately $342,000 from visitors to the hotels in FY2011 and projects a tax revenue of $285,000 for Fiscal Year 2012.

"The local people don't pay that tax," Renshaw explained. "It's paid by visitors and tourists and then it's used to increase tourism."

Kilgore College, the Region VII Service Center, the Texas Shakespeare Festival and oilfield service-related industries are all significant draws for 'heads in beds,' he added.

"We would not have the rooms that we do" if not for those outlets and others like them, Renshaw said.

"They are really beneficial to the hotel service industry here. We're fortunate to have those."

Hotel Occupancy Tax collections on the room rentals are disbursed to the chamber, TSF, KHPF and Main Street Program on a monthly

basis according to percentages approved by the city council and capped at specific amounts. In the current budget, the chamber is allotted 68.42 of total collections, up to $195,000. The Shakespeare festival and preservation foundation receive 12.28 percent, up to $35,000 and Main Street's monthly check includes 7.02 percent of the collections, up to $20,000 for the year.

According to the state's guidelines, the city can set aside excess collections in a separate account to allocate at the direction of the city council for additional 'heads in beds' activities.

Additionally, one percent of the rate (approximately $40,000 of total projected collections in FY2012) must be invested in advertising and promotion.

In the fiscal year that began Oct. 1, the city has so far collected and disbursed $127,599.70, including $87,303.70 to the chamber, $15,669.24 to TSF and KHPF and $8,957.51 to Main Street. The most recent round of checks, on Feb. 3, issued approximately $20,000 to the chamber, $3600 to TSF and KHPF and $2050 to Main Street.

The next series of disbursements is scheduled for the first full week of March.

Rohena Patel, owner and operator of Comfort Suites, agrees that the city's collection and distribution of Hotel Occupancy Tax benefits the community as a whole.

"The only thing I could ask is that it would be used to bring more business into Kilgore so it kind of benefits everybody. That money is there for us for more advertising and things like that," she said. "It's not just hotels that benefit from that. It's restaurants, gas stations and things like that also.

"The more people we bring into town, the more likely they are to recommend us to others."

Consequently, Patel said, it's important that the community know how the monies are being expended.

"It would be nice for us to have a greater say-so in how it's spent," she explained.

"Since the hotels generate that money, we'd like to know where it's going."

NEWS HERALD photo by AUSTIN KING

Process Technology instructor Dewey Greer gives the Kilgore College Board of Trustees a tour through the Process Technology facilities.

KILGORE COLLEGE

NEWS HERALD photo by AUSTIN KING

Early Childhood Development Center teacher Debbie Muklewicz overlooks a student in the play area of the ECC.

CHILDHOOD CENTER Continued from Page 1

Pauley.

Pauley said Candace Bowers chaired of Child Development and Education when the ECC opened, and credited Bowers as instrumental to the opening of the center.

The Child Development and Education Department is currently led by department dean Dr, Richard Harrison.

“The ECC has maintained a standard of excellence since its opening,” said Pauley.

“The program has maintained continuous accreditation from the National Association for the Education of Young Children since its opening.”

Pauley also stated that the ECC prides itself by far exceeding the Texas Minim Standards of Childcare.

The ECC offers care for children between the ages of 18 months and 4 years old. The ECC is open to all members of the Kilgore community.

“We believe that the early childhood years are the most important years of a person’s life,’ said Pauley. “We believe that young children learn through active participation.

As children interact within a well-planned and developmentally appropriate environment under the guidance of trained teachers, they ‘create’ knowledge. We view children as active rather than passive learners.”

The ECC seeks to fit the needs of each child’s family, as well.

“We feel our center must serve the child as well as the family,” said Pauley. “We see each child and family as unique. Therefore,

we strive to meet individual needs in a respectful manner.”

Pauley said the ECC has served over 800 children. With a 25-year history, children of former ECC children are now enrolled.

“The center has been a model for over 5,000 Kilgore College students who have gone on to become teachers in area school districts and in child care facilities, as well as to open child care facilities in this area,” said Pauley.

For now, the ECC plans to continue the level of excellence the center has provided to the community.

The ECC will hold a fundraising campaign in celebration of the 25th anniversary. All money raised will go towards playground improvements and equipment.

For more information about the ECC, contact Pauley: lpauley@kilgore.edu.

BALLOT Continued from Page 1

with a grin.

"I've been challenged all my life because I'm short and I talk a lot," he joked. Uncontested in his first bid for Place 3, Barr is ready to put his unused campaign slogan in service: 'Spokesman for the young folks because I've been there and for the elderly folks because I am there.'

"I would never give it up. I told them I was going to stay here 10 years when I got the job."

EAST TEXAS HARDWARE $10

$10

Paints Continued from Page 1

the Board Investment Committee. These include the reallocation of expendable balances from various accounts and the transfer of endowment funds to the Texas Presbyterian Foundation.

Trustees also authorized the administration to move forth with several capital projects. The projects include: new turf at the football stadium; heat, ventilation and air conditioner repairs for Devall Student Center; renovations at the Quad dorm; a new fry grill in Devall Student Center;

AEC work at Woodruff Building; new kitchen equipment, new benches and tables and the renovation of the welding shop for a new grant program. In total, the cost of these expenditures is estimated to be $566,000.

The Board approved all items regarding KC personnel in regards to employee resignation, retirement, employment and change in employment.

The board discussed the Capital Improvement Projects to August 31, budget

reports and quarterly investment reports.

There were no citizen comments, nor was an executive session taken.

Monday’s Board of Trustees meeting was held in the Applied Technology Center, rather than the normal location at the Administration Building.

Prior to he meeting, Process Technology instructor Dewey Greer told the board of KC’s Process Technology program and gave a tour of the Process Technology learning center.

$10 off any purchase of $40 or more

$10

Good Thru February 29

MADE IN AMERICA

$10

+

SATURDAY, FEBRUARY 25, 2012

KILGORE NEWS HERALD 3 SECTIONS, 30 PAGES

VOL. 81, NO. 16

AMERICA’S NO. 1 SMALL CITY

CAPITAL OF THE EAST TEXAS OIL FIELD

KILGORENEWSHERALD.COM

50 CENTS

HOTEL OCCUPANCY TAX

Chamber offers summaries of tax expenditures putting 'heads in beds,' organizations that enter an agreement with the city are required to provide quarterly, itemized reports of those expenditures according to state statutes governing the revenues.

A Kilgore News Herald review of the City of Kilgore's

City sends exec back for details

By JAMES DRAPER news1@kilgorenewsherald.com

The Kilgore Chamber of Commerce submitted copies of two years' worth of quarterly reports on Hotel Occu-

INSIDE SPORTS: Kilgore and Sabine advanced to the second round of the boys basketball playoffs this week, and baseball season has officially started.

See Page 10A SHOPPING SMART: Look inside for money-saving specials from Conaway Homes, CVS Pharmacy, East Texas Hardware, Longview-Kilgore Cable TV, Walgreens and WalMart.

Facebook:

Twitter:

Kilgore News Herald

KilgoreNews

collected through a seven percent tax on local rented rooms, are allocated at the city council's discretion to certain organizations each year. Tasked with investing the funds in local tourism,

pancy Tax expenditures to City Hall this week and, following a review by the city attorney, has been asked to provide more detail itemizing the expenses.

The "hotel/motel" funds,

records of HOT expenditures by the Chamber of Commerce indicates the organization has not provided the requisite itemization of expenses since May 2009.

City Manager Scott Sellers met with Mayor Ronnie Spradlin, City Attorney Rob Schleier and Chamber of

Commerce President Mike Coston Thursday afternoon to discuss the most recent reports provided by the chamber. Those documents cover Jan. 1, 2010 through Dec. 31, 2011 and reflect the categories and values submitted See HOT TAX, Page 3A

KPD arrests first suspect in video store homicide

KILGOROUND BILL WOODALL

+

MANY OF YOU WILL claim to have other, pressing engagements. Mowing the lawn, giving your son his springtime haircut, scouring the refrigerator after someone spilled (and didn’t tell you) that spaghetti left over from dinner last month.

THAT kind of stuff.

SOME of you, though, will put on your laughing shoes and join Kilgore Community Concerts Association at Dodson Auditorium for a slap-dash performance of song and comedic introspection.

The Water Coolers will be on stage.

THEY sing, the dance, they make fun of office life.

HOWEVER… you must be a member of KCCA to get past the door.

CALL 903-983-2834 or 984-3357 for the full story on membership.

• IN an American History See KILGOROUND, Page 4A

INDEX Classified Crossword Daily Digest Horoscope Obituaries Sports

+

COURTESY photo from KILGORE POLICE DEPARTMENT

Det. Trae Portwood (right) and officer Mitch Autrey arrest 20-year-old Samantha Gonzales Lara Friday afternoon. Lara was booked into the Gregg County Jail on $500,000 bond, charged with Felony Murder and Aggravated Robbery. According to KPD officials, more arrests are forthcoming in the investigation of video store clerk Renee Garrett’s 2011 murder.

Investigators anticipate more arrests in murder-robbery

By JAMES DRAPER news1@kilgorenewsherald.com

A little more than a year ago, Renee Garrett was shot to death during an aggravated robbery at the video store

where she worked.

On Friday, Kilgore Police Department investigators arrested the first of several people suspected of Garrett's murder.

Samantha Gonzales Lara, 20,

"WE BELIEVE, BASED ON THE EVIDENCE,

THAT THERE ARE OTHER PARTIES INVOLVED." KPD Capt. Roman Roberson

of Kilgore, was taken into custody at her residence by lead Det. Trae Portwood and other officers at 4:14 p.m. before being transported and booked into the Gregg County Jail, charged with Felony Murder and Aggravated Robbery.

Lara’s bond is set at $500,000.

"We do anticipate other arrests," Capt. Roman Roberson

See COMMITTEES, Page 8A

Samantha Gonzales Lara

By AUSTIN KING news2kilgorenewsherald.com

By AUSTIN KING Kilgore Independent School District has a busy schedule in the coming years. Superintendent Jody Clements is forming two public committees as an effort to include the Kilgore community in planning for

See SUSPECT, Page 3A

Speaker reflects on growth, achievement in adversity

Kilgore ISD forms new committees news2@kilgorenewsherald.com

6-7B 3B 4A 3B 4A 10A

said Friday. "We believe, based on the evidence, that there are other parties involved."

According to previous reports, Garrett was finishing her shift at the Adult Video and DVD store at 1907 Industrial Ave. just after midnight on Monday, Jan. 10, 2011. The

COURTESY photo from KILGORE POLICE DEPARTMENT

The Voices of Soul choir performs during KHS’ Black History Month program Friday morning.

A boy saw a caterpillar struggling to come out of its cocoon. As the boy attempted to free the caterpillar, his father stopped him.

“The butterfly needs the struggle to get out of the cocoon,” said the Rev. S.L. Curry Jr. Friday morning at Kilgore High School’s Black History Month program.

Otherwise, “his wings won’t develop and he’ll never fly.”

Curry encouraged students to stay strong in the face of adversity.

“Young people, you can achieve all you can be,” said See BLACK HISTORY, Page 8A

903.984.2006 1615 Hwy. 259 N. • Kilgore, TX 75662 www.kilgoreford.com

903-983-1494 1201 Stone St. • Kilgore, TX www.walmart.com

+

CMYK

LOCAL

SATURDAY, FEBRUARY 25, 2012

KILGORE NEWS HERALD ◆ PAGE 3A

SUSPECT Continued from Page 1A

25-year-old Kilgore resident called her manager to report a problem with a customer; the manager, in turn, notified KPD of the situation.

Officers arrived on the scene and found Garrett dead from an apparent gunshot wound to the torso. The suspects had already fled, taking a cash box and an

unknown amount of money.

In the days, weeks and months following the murder a team of investigators from multiple agencies collected DNA evidence

ARCHIVE PHOTO

Renee Garrett, 25, was found shot to death at the Adult Video and DVD store on Industrial Avenue soon after midnight on Jan. 10, 2011.

vestigation of the crime from the store, used including the Federal digital mapping equipBureau of Investigation, ment to recreate the the Texas Rangers, the scene and recovered Smith County Sheriff 's video surveillance Office Crime Scene footage that indicated Unit and the Gregg more than one person County District Attorwas involved in the ney's office. murder and captured "There was a lot of images of the suspects' Renee Garrett cooperation," Hunter vehicle.

The DNA evidence has since added. "We worked very closely been matched to at least one of with the District Attorney's ofthe suspects. Previously, investi- fice throughout this investigagators said there were three per- tion to make sure we had a solid sons involved but did not release case and to make sure they were the total following Friday's ar- included every step of the way.

"I'm very proud of the detecrest.

"We're not going to discuss a tive here and others that were innumber," Kilgore Police Chief volved."

The Gregg County Video CorTodd Hunter said. "The investiporation, which owns the Indusgation is ongoing."

Hunter praised Portwood and trial Avenue store, is offering a other investigators for their re- $10,000 reward for information leading to the arrest of additionlentless pursuit of the suspects.

"This has been his major case, al parties responsible for the and he's worked on it daily for crime.

Anyone with information on many months," Hunter said.

"He's really worked on this, Garrett's murder or the remainbrought everyone together and ing suspects can contact Portwood at 903.983.1559. Informahas worked tirelessly.

"He had compassion for this tion can also be provided anonymously by calling the Gregg case because she was a victim."

According to Roberson, several County Crime Stoppers at organizations assisted in the in- 903.236.STOP.

HOT TAX Continued from Page 1A

on the organization's annual, projected budgets for HOT expenses. They do not provide the itemization required by the city and state.

"The Chamber is going to provide a copy of their general ledger reports as they pertain to the Hotel Occupancy Tax monies to the city, hopefully by early next week," Sellers explained later. The chamber is compliant in its accounting for those monies separate from its own revenues, as provided by the state statute, he added. "We also sat down with our city attorney to determine the extent by which the city and the chamber have been adhering to the HOT statute and have clarified certain reporting requirements that have not been strictly followed over the past several years, which is a detailed line item reporting of each expenditure.

"In the future the quarterly reports that are submitted to the city will contain those line item figures."

Since Feb. 8, Coston has not returned phone calls made to his office seeking comment on the Hotel Occupancy Tax. Chamber staff did provide the most recent reports to the newspaper this week following a Freedom of Information Act request.

According to Sellers, in recent years the chamber has turned in its projected budget for HOT expenses during the city's budget process, when the city council determines what percentage of HOT revenues will be allocated to various organizations.

Currently, the chamber receives 68.42 percent of total collections each month, up to $195,000 per year. The Texas Shakespeare Festival and Kilgore Historical Preservation Foundation each receive a monthly disbursement of 12.28 percent of the HOT revenues, up to a $35,000 annual maximum. The Kilgore Main Street Program receives 7.02 percent of the monies, up to $20,000 per year. Excess funds beyond the city's projected collections for the year – $285,000 in Fiscal Year 2012 – are set aside to be distributed by the city council at the request of the four organizations or others.

The three other organizations are up-to-date on their reporting requirements, and the chamber, Sellers said, will soon be as well.

"What I will call it is more of a misunderstanding for what is required of the statute," Sellers said. "What

the chamber has been submitting to the city has been an annual budget request with a detailed listing of how those monies will be spent.

Additionally, the statute does require quarterly expenditure reports, which is not what we have been receiving.

"We have not discussed any sort of penalties for noncompliance with the statute."

The various organizations are scheduled to receive their next disbursement of Hotel Occupancy Tax revenues during the first week of March.

REPORTING REQUIREMENTS According to the current HOT agreement with the city (which has remained substantially unchanged for several years), an organization that receives Hotel Occupancy Tax revenues agrees to provide, in advance, "its annual budget to city and will make periodic reports to the city at least quarterly listing the expenditures made by contractor with revenue from the Hotel Occupancy Tax." In a letter dated April 27, 2004, then-City Clerk Karen Custer informed Coston that the documents that had been provided by the chamber were incomplete according to the requirements of the agreement between the city and the organization, re-signed each year when the allocations are made.

"As required by state law and pursuant to this Agreement, the City was to receive a copy of your annual budget for the current fiscal year, quarterly reports listing expenditures made with revenue from the Hotel Occupancy Tax, and a list of scheduled activities, programs or events that you will offer that will directly enhance and promote tourism," Custer wrote. "In order to comply with state law and the Agreement and also bring my files up-todate, please provide me with a list of scheduled activities, a copy of your budget, and a report listing the first six months (October 2003 – March 2004) of expenditure of funds received from the Occupancy Tax revenue."

Consequently, the chamber's May 2004 report on hotel/motel tax expenditures noted its use of revenues at that time: for the Visitor Information Center located inside the Chamber; for advertising, solicitation and promotion; for expenditures to promote the arts; and for administrative expenses including supplies, salaries, travel expenses and certain day-today operational expenses.

The report also included a categorized 'Profit & Loss Budget vs. Actual YTD' for Feb. 1, 2003 through Jan. 30, 2004 and a 'Custom Transaction Detail Report' that listed deposits of the city's HOT disbursements and itemized approximately 70 of the chamber's Hotel Occupancy Tax expenditures. These range from a $7.03 'tape for travel show' to the chamber's $5,000 coalition fee for participation in the former Holiday Trail of Lights.

Based on the available records, by 2007 the chamber had adopted a new reporting format. Those reports list total amounts for expenditures in certain categories (administration expenses, payroll tax, tourism events, travel and tourism organizational dues and publications, etc.) and list various subcategories of expenses. For example, between Jan. 1 and March 31, 2007, the chamber reported total expenditures of $8,045.23 on 'Travel & Tourism Promotions' including radio, television, newsprint, magazine, brochures, maps, lapel pins, presentation folders, rack cards and its Web site but did not itemize the expenses.

The report also notes $39,287.33 in HOT revenue received alongside total disbursements of $53,434.46.

The chamber's report of March 17, 2009 covers Oct. 1 through Dec. 31, 2008, and includes the organization's categorized expense report as well as 37 pages showing itemized transactions from the chamber's accounts, some of which include HOT expenditures. A report covering Jan. 1 to May 31, 2009, includes 19 pages of itemized HOT expenditures and 38 pages of chamber transactions, including HOT expenditures.

A report from July 9, 2010 covers Oct. 2009 through May 2010, showing the category totals without any itemization. It also includes a projected budget for Fiscal Year 2011.

The last report, provided from the city's files at the News Herald's request, shows expenses from Jan. 1 to Sept.

30, 2010.

The chamber's eight quarterly, unitemized reports submitted to the city Tuesday resemble the last two reports in the city's possession, showing spending categories with totals rounded off to the nearest dollar, total disbursements and HOT revenues received from the city during each

three-month period.

According to the documents, the chamber's quarterly HOT revenues disbursed by the city from Jan. 2010 to Dec. 2011 range from $51,440.43 to $148,148.00 per quarter. The totals do not match the city's records of the chamber's Hotel Occupancy disbursement checks, which did not exceed $67,346.65 per quarter during that period.

Sellers could not explain the discrepancy in the chamber's reported totals and the city's but said it could be due

to the different beginningand end-dates of the two organizations' Fiscal Years.

"Without auditing the numbers I can't give you specifics, but the nature of the overlapping budget years means that we would have to correlate the off-months to get exact figures," he explained.

MOVING FORWARD Spradlin said he anticipates a quick response to the city's request for more information from Coston.

"He was very open to what we wanted," Spradlin said

Thursday afternoon.

For Sellers, who is in his fourth month as city manager, the recent dialogue on the Hotel Occupancy Tax creates an opportunity to scrutinize and streamline the HOT allocation and reporting process.

The city will review the way it disburses and accounts for the HOT expenses in the future, he said.

"After meeting with our city attorney, we all feel much better about how those reports need to be submitted as we move forward."

+

WEDNESDAY, MARCH 7, 2012

KILGORE NEWS HERALD VOL. 81, NO. 19

1 SECTION, 10 PAGES

AMERICA’S NO. 1 SMALL CITY

INSIDE

Four groups split $16,852 in March

SHOPPING SMART: Look inside for money-saving specials from Alford & Pace A/C & Heating, Blake Furniture, East Texas Hardware, Johnny’s Ozark Fried Chicken, Creel’s Service, Conaway Homes and WalMart.

Facebook:

Twitter:

KilgoreNews

KILGORENEWSHERALD.COM

50 CENTS

City reconciles chamber’s account of Hotel Occupancy Tax funds use

SPORTS: Both Kilgore College basketball teams will try to extend their seasons in the Region XIV Conference tournaments this week.

See Page 10

Kilgore News Herald

CAPITAL OF THE EAST TEXAS OIL FIELD

By JAMES DRAPER news1@kilgorenewsherald.com

Rep. David Simpson had the stage to himself Monday night in Longview. SEE PAGE 3

There is still some work ahead as city employees analyze the Kilgore Chamber of Commerce's accounting for Hotel Occupancy Tax revenues and expenses, but after submitting an itemization of its 2011

funds, the organization is coming back into compliance.

Granting the chamber an additional two months to bring its reporting up to standard, this week the city will send the organization a check for $11,531, its 68.42 percent share of HOT collections.

The 'hotel/motel' monies, raised by

a seven percent tax on local rented rooms, are also split with three organizations each month: the Texas Shakespeare Festival and Kilgore Historical Preservation Foundation will each receive $2,069 (12.28 percent of revenues, each) while the Kilgore Main Street Program will accrue an additional $1,183 of its annual share.

Organizations that receive HOT See ACCOUNTING, Page 3

KILGOROUND BILL WOODALL

+

WITH AN ASSIST FROM Defense attorney Roscoe (Daryll) Bennett, Rusk County Judge Joel Hale was at Pirtle United Methodist Church Saturday, pitching mighty fine gumbo to all who would listen.

OR, maybe it was Roscoe Bennett pitching with an assist from Rusk County Judge Joel Hale.

WHICHEVER of them was in charge, it was entertaining to watch a Democrat defense attorney and a Republican judge working together.

AND, we discovered a couple of days later, theirs was the gumbo favored by a panel of food-loving judges, including this newspaper editor.

• ALONG those lines, when someone invites you to a free afternoon of music by Tout Le Soir, take them up on it.

• LATER in the month – way beyond Fat Tuesday – East Texas Treatment Center’s annual gala will revolve around a Mardi Gras theme.

SO, if you saved your purple and green and white beads from the Party at Pirtle, hold onto them for a few weeks longer. You can use them at ETTC’s party on March 31.

• Q: IS IT just me or did we pass the school bond See KILGOROUND, Page 4A

+ NEWS HERALD photo by AUSTIN KING

KISD employees and board members, local officials and schoolchildren break ground on the site of the district’s new elementary and middle school campuses Tuesday afternoon. Ten months after voters approved the bond funding the schools, KISD estimates 16 months of construction.

District Breaks Ground

Two new campuses set for final completion deadline of July 2013

By AUSTIN KING

news2@kilgoenewsherald.com

Kilgore Independent School District Superintendent Jody Clements led the gathered representatives of Kilgore and KISD in the ground breaking for two new schools Tuesday afternoon.

“Many people in the community said it wouldn’t happen,” said Clements.

These new schools will be the first built in more than 15 years.

Clements, along with President of the Bond Committee Trey Hattaway and KISD Board of Trustees President Terry George reflected on the history of the project.

The ground breaking of the schools has been in the works for about two-and-a-half years.

The issue was first brought to attention in October 2009.

Concern was raised about the age and condition of some of the school buildings. The dis-

trict set out to find possible solutions.

In 2010, KISD performed a year-long study on its schools. The district looked at schools in other areas such as Longview and Dallas. KISD participated in studies with other districts to research how schools that have been built in the past 10 years have held up, To help raise awareness of the condition of the school buildings, KISD hosted public meetings to discuss problems

Six candidates file for spots on KISD board

Open space in high demand downtown

By JAMES DRAPER news1@kilgorenewsherald.com

INDEX Classified Crossword Daily Digest Horoscope Obituaries Sports

8 9 4 9 4 10

There are businesses eager to set up shop in downtown Kilgore, but with only a few spaces available they have to wait in line.

"I currently have two people looking for a place to go downtown, but there's no actual building open and available and ready to go for them," says Main Street Manager Clara Chaffin.

"There's no place for them to go. Which is good – it's a good problem to have downtown."

Granted, the Main Street area isn't at max See PROPERTIES, Page 6

See GROUND BREAKING, Page 2

By AUSTIN KING news2@kilgorenewsherald.com

NEWS HERALD photo by JESSICA MATLOCK

Pirtle United Methodist Church Pastor Dudley Plaisance tries a sample of gumbo Saturday during the church’s annual cook-off.

A half-dozen candidates have filed for a shot at one of two Kilgore school board seats subject to election this spring.

Candidates for position 4 – being vacated by trustee Mark Dickey – are Karl Riley, See SCHOOL BALLOT, Page 6

903.984.2006 1615 Hwy. 259 N. • Kilgore, TX 75662 www.kilgoreford.com

903-983-1494 1201 Stone St. • Kilgore, TX www.walmart.com

+

CMYK

LOCAL

WEDNESDAY, MARCH 7, 2012

KILGORE NEWS HERALD ◆ PAGE 3

Simpson unchallenged on tea party’s stage as Merritt skips Longview debate

By JAMES DRAPER

Merritt's campaign previously stated the candidate news1@kilgorenewsherald.com would not attend the event Absent but not forgotten, because of a perceived bias Tommy Merritt did not at- by the program's tea party tend a debate Monday organizers – We the People night with incumbent Dist. of Longview is led by Mike 7 Representative David and Cindy Schwartz, who Simpson. He was neverthe- reportedly offered support less a favorite topic of con- and monetary contributions to Simpson's camversation.

Hammering Merritt for paign previously.

Opening the evening, Mike refusing their invitation, the event's organizers and mod- Schwartz outlined the origierator re-styled the We The nal question-and-answer forPeople of Longview as a mat proposed to the two can'conversation' with Simp- didates in early January and son, offering the candidate noted the necessary change to an all-but-open microphone an interview format with only to woo local tea party voters. one candidate on hand. He Simpson ended Merritt's chided Merritt for ignoring 14 years in office when he the group's invitation and for earned the GOP nomina- claiming bias.

"Apparently, Tommy's tion and ultimately the seat in 2010. The incumbent, camp feels that answering seeking his second GOP the same questions Mr. Simpson is renod and term in quired to answer the May 29 priis somehow bimary, referenced ased," Schwartz his opponent a said, and joked, handful of times "Tommy's reabut stuck mainly sons for not being to his tried and here tonight simtested talking ply have no merpoints: conservait. This means tive ideals, limited our debate government interRep. David Simpson tonight will also vention, fiscal responsibility, individual have no Merritt.

"I thought that was kind rights and moral values.

"Ultimately we need to of cute. Can I at least get do what's right and we some applause for that?"

The audience members need to look to God to make it effective," Simpson did not hold their applause told the 100-plus audience on many occasions during members. "Life, liberty, the evening, at times interproperty and get (govern- rupting Simpson after he hit a crowd-pleasing point. ment) out of the way."

Campus construction cost won’t exceed $44.9 million

By AUSTIN KING news2@kilgorenewsherald.com

The Kilgore Independent School District Board of Trustees approved a guaranteed maximum price, or GMP, for construction of the new elementary and middle school Friday.

The total price of construction for the new schools will be no more than $44,943,505.

The final figure was summed up after the board approved a number of items. The items were first brought to the board’s attention at the Feb. 27 KISD Board of Trustee meeting.

Board members needed time to overlook the list of items before approving it.

“This couldn’t be done last Monday as an action item,” said KISD Superintendent Jody Clements.

“They had to approve the list they looked at.”

At the Feb. 27 meeting, a special meeting was scheduled for last Friday. There, trustees approved the GMP. According to Clements, the approval of the GMP means construction can begin soon.

“The approval allows the construction companies to proceed,” said Clements.

Clements explained that it will take about a week for construction preparations to be made.

“Possibly on Friday, we can begin dirt work,” said Clements.

The new schools will be the first new school buildings to be constructed here in more than a decade.

Kilgore Intermediate School, built in 1996, is the newest.

Kilgore Heights and Maud Laird Middle School buildings will be replaced by the new schools.

Clements has formed a public committee for those interested in having input on the future of these buildings. Clements also formed a long-range planning committee for important debates that surrounds KISD. To join either committee, contact Clements: jclements@kisd.org.

NEWS HERALD photo by JAMES DRAPER

Dist. 7 Representative David Simpson discusses his ideals during the We The People Longview ‘conversation’ with the candidate Monday night in Longview.

On illegal immigration, "No. 1, stop paying people who should be working for not working," Simpson said.

As for the illegal immigrants themselves, "We all ultimately are immigrants. It's not anti-immigration. It's a rule of law issue, I believe, for our country and our state."

Looking back on his first term, Simpson proudly listed the de-funding of Planned Parenthood and institution of the option for women considering abortions to view a sonogram of their fetus: "I believe that is a step forward in our protection of life."

Simpson reminded the au-

dience how he fought for civil rights in opposing a bill restricting puppy mills that would have given law enforcement an open door into breeders’ homes and in supporting legislation restricting Transportation Security Administration employees.

It was hard to anticipate the amount of support the bill would receive, Simpson said, when he fought patdowns by airport screeners.

The anti-groping bill, which passed the House unanimously, ultimately died.

"I believe it's a very important legislation and we need to keep the government from sticking their

hands down our pants and up our skirts."

Simpson said he also supported voter IDs while Merritt opposed the system.

"I want to ensure the integrity of our election. We are a democratic republic," he said. "I'm not sure why Tommy Merritt voted against voter ID but he obstructed it and he opposed it."

Spending cuts were (and are) an ongoing issue, Simpson responded, factoring into a larger issue of taxation and the size of government.

"I believe there should be a cap on how much we can raise on spending at any one time," he said. "I do

think we need an equitable system of taxation. I believe the first duty we have is to reduce the size and scope of our government.

As far as the state revenues are concerned, Simpson said he certainly doesn't think residents are under-taxed.

"I think we're spending too much" and must refocus on important issues, like equitable funding for schools, he said. "I believe we need to cut out the waste and our misplaced priorities first...When we are getting ready to go over a cliff we don't just need to slow down."

Opposed to any income tax, Simpson said it should be repealed at the federal level.

"The government shouldn't know all the ins and outs of how you make your money and where your assets are.

I think that's a violation of the 4th amendment."

Simpson said his top three issues moving forward are the size and scope of government, equitable school funding and water.

Government is not reason, Simpson quoted; it is force, "like a dangerous servant or fearful master."

"We are about to lose our country if we do not return civil government to its proper limited role," he insisted.

"Freedom is risky. But it's made us a prosperous nation and a great state."

The Merritt campaign chose to make no comment on Monday night's event.

ACCOUNTING Continued from Page 1

money are required to submit quarterly, itemized expense reports to the city showing how the funds have been used to increase local tourism.

The chamber, which for two years has been out of full- or partial-compliance with the accounting mandated by both the state and city, is in the midst of a bookkeeping update.

"Our finance director, Lawanna Williams, has met with the Chamber several times to reconcile their books with the city's," Sellers said. "The Chamber uses a different reporting software which was not set up to display the information based upon certain categories that typically you would see in governmental accounting.

Lawanna has discussed what sort of accounting categories (are needed) and is also helping the Chamber rearrange their numbers by those categories."

Like the three other organizations, the chamber must submit its next quarterly report, covering January through March 2012, by the end of April. In the meantime, city staff will continue reviewing the reports that are on hand and pursue any information that is still missing from the most recent reports.

"They were not in the format that we would have preferred," Williams said.

"It's not a really clean report and that's what we're hoping for the next time."

"One that's more reconciled with the way the city runs its financial reports," Sellers added. "When any organization rearranges their financial books, it does take a little time to get all the expenditures recoded and recategorized. Therefore, we have asked the Chamber to have those reports complete by their

next submission to the city."

According to its eight-page itemization of Hotel Occupancy Tax revenues and expenses between Jan. 3 and Dec. 31, 2011, the Kilgore Chamber of Commerce carried over almost $67,000 in unspent monies from 2010. Receiving and spending approximately $202,120 during that time, the organization closed 2011 with a HOT balance of $67,826.66.

"They spent almost 100 percent of everything they took in," Williams explained.

Overall, the numbers indicate the chamber is spending its portion of Hotel Occupancy Tax revenues according to state guidelines, she said, funding tourism-related projects that put 'heads in beds' at the local hotels and motels that charge the seven percent tax on rented rooms.

For example, according to state guidelines one-seventh of the city's total HOT collections must be spent on advertising and promotion, approximately $42,000 of the $295,000 the city has projected for FY 2012 collections.

Based on the itemized numbers, Williams said, the chamber seems to be meeting that requirement.

"I think they are if you consider those trade shows and promotions that are advertising Kilgore. It's more than just buying a piece of paper in a magazine. If you take those two numbers they had then they spent well over the seven percent."

There are still some unresolved issues with the chamber's accounting.

For example, $72,900 – in 17 deductions ranging from $1,500 to $10,000 – is categorized as "Sus-

pense," with no notes on its usage.

"The problem with suspense accounts is it's just a holding account so it could mean different things," Sellers explained. "We are trying to identify those funds that are being categorized currently as 'Suspense,' as to what their ultimate use was."

"That was the transfers from the hotel/motel dollar expense account into the general operating account to cover the payroll expenses," Williams explained. But there is another problem, she added, in that 100 percent of tourism director Carol Hinton's salary has been drawn from hotel/motel tax money. "That's what we determined when we were going over (the numbers)."

According to state guidelines for Hotel Occupancy Tax usage, the money can cover a portion of an employee's salary, depending on how much time is actually spent on tourism-related activities. According to the chamber's projected expenses, Hinton spends 95 percent of her time putting 'heads in beds.'

"Now that we all have a better grasp on how the funds should be spent, and as we move into our next contractual year with the chamber," Sellers said, "we will look closer at how those allocations should be met, and we will work more closely with the chamber to determine how best to allocate their time."

The chamber has not provided an itemized accounting of its 2010 Hotel Occupancy Tax usage. Chamber of Commerce President Mike Coston has not returned calls to his office seeking comment on Hotel Occupancy Tax.

Business & Professional Service Guide Accounting

Appliances

David M. Hayes, CPA Serving your accounting and tax needs.

Christian School

Health Care

Hargrave’s Appliance Service

EAST TEXAS Christian School 4yr olds thru 12th grade ICAA and TEA Accredited

Nancy Rhodes, RN BSN AdvoCare Distributor Kilgore, TX 75662 (Cell) 903-371-3769 fancies4nancy@aol.com ADVOCARE.COM/110913396

Since 1975

Machine Shop

Storage

Walden Machine

Peavine Stor - All

Job Shop - CNC Production Serving Oil & Gas, Aerospace, Satcom CAD design and mfg.

TIG welding: Aluminum, Stainless 534 FM 3053 Kilgore, TX 75662 Ron Walden 903.983.2008

Now leasing all sizes Call David Mangrum

Income tax, bookkeeping, payroll services and IRS problems.

407 E. Lantrip St., Kilgore 903-983-1984

Professional Service on most major brands including Sears & GE • Reasonable rates

Guy Hargrave 903-984-0844

903-757-7891 5621 Fm 2087 South

Air Conditioning/Heat

Automotive Alex’s Automotive Service AC service

Excavating

Lumber

Small Engine

Veterinary

PRECISION

East Texas Lumber Company 903/984-3629

RICK’S SMALL ENGINE REPAIR

Kilgore Small Animal Hospital

Pick up & Delivery

1508 N. Hwy. 259 903-984-0621

Alford & Pace Air Conditioning/ Heating J.B. Pace, Owner 903/984-3287

General Automotive Repair

600 N. Hwy. 135 903/984-4611

Excavating Services Commercial- Residential- Rural Insured, Marcus Davis 903-987-1478 or Nikki Davis 903-987-1500 Land Clearing- Oilfield Tie Ins & Lease Maintenance Pond, Roads Driveway Cut Ins House Pads Site Preparation- Fence Rows Cleared

Try our Weight Loss Products!

500 S. Rusk Kilgore

903.987.2474

903-984-0405

OPENING THE FLOODGATES: March 10, 2012

Hotel tax money, wastewater on council’s agenda March 17, 2012

KC’s Holda requests extra tourism funds for museum, Revels March 31, 2012

Council approves one-time HOT allocations June 20, 2012

Main Street will ask for more hotel tax funding July 4, 2012

Festival director outlines vision for theater’s future September 1, 2012

Veterans request HOT funds to expand memorial park October 27, 2012

KSA seeks HOT funds

As the News Herald continued to cover the Hotel Occupancy Tax program, local organizations – more than twice as many as had ever applied for the tourism funds – took advantage of the opportunity to request allocations from Kilgore City Council members.

LOCAL

SATURDAY, MARCH 10, 2012

KILGORE NEWS HERALD ◆ PAGE 3A

Year-to-year sales tax shows eight percent bump

By JAMES DRAPER news1@kilgorenewsherald.com

The City of Kilgore ended four months of year-to-year declines in sales tax allocations this week, receiving $853,185.32 from the state comptroller's office and beating last March's check by 8.13 percent.

One of only two Gregg County cities to show a marked increase (much less to avoid 20 to 40 percent declines), Kilgore's sales tax allocation – based on revenues collected in February from sales in January – puts

the city well-ahead of its sales tax projections for Fiscal Year 2012, running from Oct. 1, 2011 to Sept. 30.

Halfway in, "Instead of 50 percent we're at 62 percent of our budget," said city finance director Lawanna Williams. "It looks like we're on track. Even if it drops a little bit, we'll still meet our budget expectations."

Despite that cushion, the city is down two percent from total collections by the same time last year. January's allocation, 18 percent below the same month in 2011, was a hard hit, and

February's check, down 2.5 percent, didn't break the downturn.

The March check did surpass 2011 ($789,042) which exceeded 2010 ($752,626) but is well-below the record-setting March of 2009, which saw $1,016,774.10 in revenues.

This month's boon is still a relief for Williams.

"What I am hoping this tells me is that not all of the oilfield is moving to south Texas," she said. With active fields elsewhere drawing the focus of the oil and gas industry, "We were pre-

pared for a decline since we knew that the oilfield was moving to the south. This is in hopes that they're still operating out of their Kilgore hubs."

According to Texas Comptroller Susan Combs, statewide sales tax revenues collected in February (from January sales) were $2.01 billion, up 14.8 percent from the same time last year.

“Sales tax revenue in all major industries was up, indicating growth in both business and consumer spending,” Combs said in a

release. “Rapid growth in tax collections continued from oil and natural gas sectors, while revenue from retail trade, restaurants and telecommunications was also up significantly.”

Countywide, White Oak showed the largest percent increase at 17.32 whiled Gladewater maintained between March 2011 and 2012 with allocations of $76,002.12 and $76,051.91 respectively.

Gregg County as a whole (collecting $3,188,148.78) was down 0.46 percent with year-to-year declines in

Longview (-3.69%), Lakeport (-20.25%), Clarksville City (-32.31%) and Easton (-47.64%).

By comparison, Rusk County collected $43,532.75 more this month than the $339,526.82 of March 2011, up 12.82 percent. Mount Enterprise showed the largest gain at 72.74 percent as Henderson and Tatum both showed increases of 14.02 and 17.02, respectively. Overton was down 17.20 percent from the same time last year while Reklaw's check of $157.20 was almost 61 percent below 2011.

Hotel tax money, wastewater on council’s agenda

By BILL WOODALL bwoodall@kilgorenewsherald.com

NEWS HERALD photos by JAMES DRAPER

Jennie Funk stocks shelves alongside other Helping Hands volunteers – Steven Reagh, Sandra Kimble and Carolyn Herd – Thursday afternoon. (Below) Bill Ele directs Lloyd Hill on the forklift while unloading a delivery truck from the East Texas Food Bank.

HELPING HANDS Continued from Page 1A

the economy or what, but we had to raise the funds to operate."

That day, 25 duck sponsors went home with a prize -- not just for first place or tenth place, but the last place duck earned a reward as well as others.

Much will be the same when Helping Hands hosts the second annual duck race on Saturday, May 5, at the park. Set from 11 a.m. to 2 p.m., Kilgore firefighters will once again provided the wet-track and waterflow to send the plastic competitors racing.

Sponsoring a duck is $10 again -- donors receive a numbered ticket corresponding to their single quacker or several if they invest in a flock. The tickets also serve in the door prize drawing.

"We're adding this year a duck-calling contest," Hampton said. Contestants can only use their hands and voice, he added.

Organizers are gathering prize donations from local businesses and have a short amount of time to build the stockpile: according to Hampton, state laws governing such contests require the pantry to have all its prizes

in hand well before the event and Helping Hands can pursue the prizes through March 16.

Meanwhile, volunteers like Steven Reagh, Sandra

Kimble, Carolyn Herd, Lloyd Hill, Bill Ele and Jennie Funk help out at the food pantry each week, assisting director Amanda Mohn in unloading the food

bank's contribution on Thursday mornings and helping sort the groceries at the Martin and South Street facility.

Meat and other proteinrich products are still in high demand at the charity, where local qualifying families can receive a shopping cart's worth of groceries once a month. The pantry is open from 3 p.m. to 6 on Mondays, 9 a.m. to noon on Tuesday and Thursdays and 9 a.m. to 1 p.m. on Wednesdays and Fridays.

Eyeing an all-too-small stack of tuna cans, Hampton underscored the ongoing need for donations, whether through groceries, cash or support at the duck race.

"If you want to see how prices have gone, when we had to buy these in the past they were 42 cents a can.

They they were 54 cents.

They they were 65 cents.

Now they're 75 cents a can," he lamented. "I don't know if it's the economy or not, but things are more expensive."

For more information about Helping Hands, to donate a fundraiser prize, reserve a rubber duck, or contribute to the pantry call 903.984.1796.

COUNTRY CLUB Continued from Page 1A

founded in 1932. The nine-hole golf course surrounds the current clubhouse (which replaced the 30s era building in 1980), swimming pool, Pro Shop and 19th Hole restaurant.

Mobley anticipates no looming staffing changes at the club beyond typical decisions made by Kilgore Meadowbrook Country Club, the entity that operates the club itself, separate from the investors.

"There will probably be some organizational changes that are not significant, but change in significant management ways, the ways it's operated – those have not yet been determined," he said.

According to Mobley, the investors and country club organization agree the facility should continue operating

as a country club, with as little effect on members as possible.

"We as investors are going to do what we can to accomplish that. We know there are going to have to be some changes and we don't know what they are right now. We're in the process of developing a more solid plan to go forward, but it's all crafted around the desire and the expectation that we will be a viable, ongoing country club."

Mobley declined to explain the details of the new "boiler-plate" lease between the investors and the country club organization, focusing instead on moving the club forward, whatever the return on investment.

The investors’ original goal, he said, was to keep the club operating. That purpose hasn't changed, but it has

evolved into a more philanthropic decision.

"I think most of the investors did not anticipate getting all their money back and still want the club to have a chance to continue," he explained. "It depends on the successful operation, which means we will probably have to get some new members. You need monthly income to fund your operations and a good part of that is members' dues. The club will be trying to get new members – we think they're in the community, and with a successful membership drive we will be able to get some new members and increase the usage of the facilities by current members.

"These last few days with good weather, lots of golf carts out on the course. It was encouraging."

Kilgore College regularly receives for Texas Shakespeare Festival a share of the Hotel Occupancy Tax collected and set aside for promoting tourism, arts and historical preservation.

When the city council meets Tuesday night, college president Dr. Bill Holda will be on hand to ask for a larger share of the money. Holda will ask to add the East Texas Oil Museum and the Rangerette Revels to the list of agencies receiving room tax proceeds.

Under arrangements in place today, the Kilgore Chamber of Commerce receives 68.42 of the money each year.

Kilgore Historical Preservation Foundation and the Shakespeare Festival each receive 12.28 percent and Main Street receives seven percent.

This fiscal year – Oct. 1 through Sept. 31 – the city expects to collect about $285,000 from the tax levied on hotel and motel room rent.

A request for hotel tax money has been presented on behalf of the oil museum each of the last two years, says director Joe White, but the request has been denied.

The tax has been the subject of controversy over the past month while the city and the Kilgore News Herald worked to obtain an accounting of how the chamber of commerce spent its share of the tax money in 2010 and 2011. The city received the 2011 accounting last week.

The council will meet Tuesday, March 13, at 5:30 in council chambers at city hall.

In other business, the council is scheduled to approve an agreement calling for the sale of treated waste water to TD Water Resource Management/Alpha Reclaim Technology, LLC. The company has proposed buying treated waste from a number of East Texas cities. The water, clean enough to be returned to the Sabine River, will in turn be sold to companies engaged in hydraulic fracturing – fracking – to help with the production of oil and natural gas.

The agreement calls for the buyer to pay Kilgore $1.67 per thousand gallons of treated waste.

During staff reports, city attorney Rob Schleier will talk to the city council about hotel occupancy tax collections. Planning director Carol Windham will discuss sheriff ’s sale deeds and fleet director James Womack will discuss the policy governing sale of used equipment.

The council will also conduct the first public hearing on the annexation of 217 acres along Baughman Road in the vicinity of the new school campus.

The city council meeting is open to the public.

Log on to KilgoreNewsHerald.com

Receive FREE $10 American Express Gift Card when you contact us for an insurance quote.

Sam Azzam, Exclusive Agent Allstate Insurance Company 3209 Stone Rd, Suite A Kilgore, Texas 903-984-6250 a010930@allstate.com Auto, Home, Business, Life

+

SATURDAY, MARCH 17, 2012

KILGORE NEWS HERALD 3 SECTIONS, 28 PAGES

VOL. 81, NO. 22

AMERICA’S NO. 1 SMALL CITY

CAPITAL OF THE EAST TEXAS OIL FIELD

KILGORENEWSHERALD.COM

50 CENTS

City on the outs with two inns Hotels neglect $16,400 of HOT payments

By JAMES DRAPER news1@kilgorenewsherald.com

Guests pay a 13 percent Hotel Occupancy Tax on local rented rooms.

Hotels and motels collect the tax, hold it in trust temporarily and

pass six percent on to the state, the rest to the City of Kilgore.

The city allocates its share of the tax revenues at its discretion.

Local tourism-focused groups expend and report their investment of the money in putting

more heads in beds at the hotels and motels.

At least, that's how it's supposed to happen.

There's a disconnect in the cycle right now between the City of Kilgore and two hotels, to the tune of

nance director) Lawanna Williams and I had been working here lately on two entities who are behind, really a lot behind, in payment of the Hotel Occupancy Taxes."

A prior audit found three of the city's eight hotels and motels were delinquent. Currently, Schleier told the city council, the Delux

$16,400, with the looming possibility of a operations-injunction or criminal charges.

"The Hotel Occupancy Tax is in the news a lot here lately," Kilgore City Attorney Rob Schleier said Tuesday, referring to the city's ongoing efforts to bring the Kilgore Chamber of Commerce into compliance with HOT reporting guidelines. "Coincidentally, (fi-

See HOT MONEY, Page X

Rusk Co. constable indicted for drugs, firearms

INSIDE SPORTS: Kilgore baseball team gets 4-3 win at Pine Tree; Sabine girls now 4-0 in district play.

See Page 8A SHOPPING SMART: Look inside for money-saving specials from Conaway Homes, CVS Pharmacy, J.C. Penney, East Texas Professional Credit Union and Walgreens.

Facebook:

Twitter:

Kilgore News Herald

KilgoreNews

KILGOROUND BILL WOODALL NEWS HERALD photo by JAMES DRAPER

+

YOUR SPRING BREAK was this week; you left town and you enjoyed it.

DR. Joey DeGraffenried – with a group of fellow dentists – is headed out of town next week. The group is going to Belize; there they will spend the week providing free dental care to folks who can’t afford to visit a dentist.

THOUGH mission is important, Dr. Joey, as his staff calls him, is also looking forward to the spicy local food. He swears he’s even eaten – though he did not say enjoyed – the Belize (Belizian?) delicacy, chicken feet.

• THE DAILY Digest is still a critical component of the Kilgore News Herald; a similar column runs in virtually every newspaper on the planet and it’s a valuable reminder of coming events.

BUT not everyone on the planet reads the printSee KILGOROUND, Page 4A

INDEX Classified Crossword Daily Digest Horoscope Obituaries Sports

Kilgore police officers and other law enforcement discuss the pursuit of a suspect who fled a routine traffic stop into a wooded area before he was captured and taken into custody.

Suspect flees, nabbed quickly

By AUSTIN KING news2@kilgorenewsherald.com

A Tyler man hiding from an arrest warrant fled on foot – briefly – from Kilgore Police officers Wednesday afternoon.

Jerry Warren Boghue, 42, of Tyler, was caught by KPD after

about an hour in the woods. Officers from Kilgore, Department of Public Safety, Gregg County K9 Unit and Kilgore College police were all involved.

KPD Lt. Tony Stone reported that patrol officer DeeAnn Brown noticed a 2007 GMC Sierra parked behind the Kilgore Day’s Inn. Suspicious,

TYLER - Benjamin Thomas Ferrell, the current Rusk County Precinct 2 Constable, has been charged with federal drug and firearms violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales Thursday.

Ferrell, 36, of Henderson, was indicted on Mar. 8, 2012 and charged with conspiracy to possess with intent to distribute controlled substances and delivery of a firearm to a convicted felon.

See CONSTABLE, Page 5A

INSIDE +

Brown ran the vehicle’s license plate for prior warrants. KPD Captain Roman Roberson reported that the report came in at about 12:33.

“The owner comes back – wanted,” said Stone. “He bolts and runs.

It turns out the female (passenger)

New London Explosion

See FUGITIVE, Page 5A

75 Years Later

City seeks new volunteers for numerous tasks

KC’s Holda requests extra tourism funds for museum, Revels

By AUSTIN KING

news1@kilgorenewsherald.com

By JAMES DRAPER

news2@kilgorenewsherald.com

Under the supervision of Deputy City Clerk Karen Custer and City Manager Scott Sellers, a new program allows local citizens to get involved with the city and get a bit of experience working.

“There are people in our community looking for work COURTESY PHOTO

John Edney and grandson Cason Doyle Edney till the garden Tuesday, getting it ready for planting peas and beans.

See VOLUNTEERS, Page 5A

Four local organizations share the majority of the city's Hotel Occupancy Tax revenues each year, but – in budgeting conservatively – Kilgore typically collects tens of thousands of dollars more than it allocates for tourism investment.

Last year, the city projected revenues of $275,000 See REQUEST, Page 3A

Victory assured, council candidates discuss coming term 6-7B 3b 4A 3B 4A 8A

By JAMES DRAPER news1@kilgorenewsherald.com

Housing is at the top of both Bobby Hale and Sherry Bustin's to-do list for their coming term on the Kilgore City Council.

There were no contenders challenging him this election season, so Hale retains his Place 4 seat for

a second term. With council member Randy Renshaw ending his tenure on the dais and only Bustin filing for Place 1 by March 5, the Allegiance Specialty Hospital CEO also gets a by and will take the oath of office along with Hale on May 15.

While incumbent Neil Barr and challenger Tristan Roberts will

spend the rest of the spring campaigning for Place 3, Hale and Bustin have some time to think about their next two years on the council.

"I would really like to see that we continue our road to providing more homes in Kilgore," Hale said See COUNCIL, Page 6A

Bobby Hale

Sherry Bustin

Re-Elected to Place 4

Place 1-Elect

903.984.2006 1615 Hwy. 259 N. • Kilgore, TX 75662 www.kilgoreford.com

903-983-1494 1201 Stone St. • Kilgore, TX www.walmart.com

East Texas Hardware

1111 N. Kilgore St., Kilgore, TX • 903-984-2036

+

CMYK

LOCAL

SATURDAY, MARCH 17, 2012

KILGORE NEWS HERALD ◆ PAGE 3A

Council approves agreement for sale of wastewater

By JAMES DRAPER news1@kilgorenewsherald.com

Kilgore's wastewater isn't worth its weight in gold, but the treated effluent is set to turn a profit for the city in the future.

During their regular meeting Tuesday night, the Kilgore City Council unanimously approved an agreement with Alpha Reclaim Technology, LLC, for the sale of treated wastewater – up to 1.5 million gallons per day at $1.67 per thousand gallons.

The council also hosted the first public hearing on the 'Rusk County' annexation, discussed Hotel Occupancy Tax (see separate stories in this issue) and approved new rules for storing explosives.

Under its initial five-year agreement with Alpha (with an optional five-year extension) the city will reap at least $4,571.63 annually in addition to the proceeds from selling effluent to the company, which is building transport infrastructure to pipe treated wastewater to oilfield companies for use in fracking wells.

"Through prior written agreement with Alpha we would be able to use our effluent for any other use" if necessary, City Manager Scott Sellers explained.

"Do we have any response from TCEQ about doing this?" council member Harvey McClendon asked.

During a previous discussion of the proposal, McClendon voiced his concern about 1.5 millions gallons per day not being returned to the Sabine River, piped instead out of Kilgore.

Water Superintendent David Hackley said officials from the Texas Commission on Environmental Quality approve of the agreement, which includes a stipulation that the city and Alpha together obtain a Reclaimed Water Authorization from the agency.

"They're fine with everything. The main issue they had right now was the 30-day notice" that the water would be drawn, Hackley said.

"They already have the method in place for re-use. Re-using it for fracking is new to them."

"Any conversations about the im-

pact?" McClendon asked. "Downstream?"

There wasn't a concern, Hackley said.

"There are no issues as far as environmental flows," he explained.

"They don't have any problems with us not putting the water back in the Sabine River."

If that becomes a problem, Alpha representative Marsha Holt said, the company is certainly willing to alter the amount of water it takes.

"There are several ways of getting out of this should the city need the water for other uses," she said.

A handful of Baughman Road-area residents attended Tuesday's meeting to ask questions during the first of two requisite public hearings on the city's proposed annexation of 217 acres to be used for the construction of Kilgore ISDs new middle school and elementary campuses, along with nearby streets, on East Beckley Road and Hwy.. 259.

Zoning, roads and regulations dominated the resident's questions.

"Everything will brought in with a

Continued from Page 1A

HOT MONEY Inn and Manor Inn (formerly Ramada Inn) are still delinquent, behind by $14,000 and $2,400 respectively.

Neither hotel's owners were present at the council's meeting Tuesday, nor could they be reached for comment this week.

"To me, the main problem with this, this is not a tax on the hotels," Schleier pointed out.

"This is not money that comes from their bottom line, this is a tax on the people that occupy the hotels.

"All the hotel operator is supposed to do is collect that tax from those people and remit it to the State of Texas and the City of Kilgore."

In fact, he noted, the two hotels have paid the state's six-part portion but have essentially ignored the city's demands for its share – at one point, the City of Kilgore had reached an agreement with Manor Inn to help the hotel become compliant in turning over its collections.

Since then, the hotel is up-to-date on its current collection payments, but made only sporadic payments on its audited debt.

Those payments have basically ceased.

"They had a year," Williams added. "They made three of the 12 payments."

Delux Inn is much further in arrears. The

operators have not given the city its share of HOT collections since the third quarter of 2010 and is also behind on the audit obligations.

Usually, similar situations can be resolved with a demand letter, Schleier said.

"The purpose of my coming here tonight: We have sent out letters; they didn't help," he explained. "We're just asking for a little guidance as to how the council wishes us to proceed...to collect these delinquent amounts."

"This is not debt. It's a collection. It's a surety," council member Harvey McClendon argued. "They're collecting on behalf of the city to pay to the city. It's not revenue for them."

Yes, Schleier said. The hotels hold the money in trust and are violating their trust obligation.

"I think we ought to take whatever action we need to take and try to get the money. This is not the first time this has happened," council member Randy Renshaw said. "I guarantee if they owed the comptroller's office they would take whatever action is necessary."

The state's guidelines on HOT – Kilgore adopted its hotel/motel ordinance pursuit to those statutes – gives the city several options.

"We can bring a lawsuit. We can bring an injunction suit – we can actually stop them from

REQUEST Continued from Page 1A

from the seven percent tax it levies on rented rooms. Ultimately, local hotels and motels collected approximately $342,000 on the city's behalf.

Adding that excess to the surplus already set-aside, Kilgore currently has some $84,000 to invest at the city council's discretion in activities that put more 'heads in beds' here.

It's likely the city will raise more than the $285,000 estimated this year, but it was the existing, untouched nest-egg that brought Kilgore College President Bill Holda to the Kilgore City Council meeting Tuesday night.

Before making his request for additional HOT funds, Holda thanked the council for the portion the city already shares with the college.

Currently, the Texas Shakespeare Festival housed there is one of four entities that annually receive a share of the city's Hotel Occupancy Tax Revenues. Like the Kilgore Historical Preservation Foundation, TSF was allocated 12.28 percent again in Fiscal Year 2012, up to $35,000 per year. The Kilgore Chamber of Commerce receives the largest allocation, 68.42 percent (capped at $195,000), and the Kilgore Main Street Program gets a 7.02 percent share, or $20,000.

"As we continue to experience losses in state funds, that festival has the past few years run in the black in no small part because of the funds we receive from the city and from many other generous agencies," Holda said. Whatever the amount or the source – taxes, grants, vending revenues, gate fees, donations – when it comes to the college's revenue "Nothing belongs to us, so we're very grateful for any money we get."

With excess funds in hand, he said, the city council has the ability to make

general zoning of agriculture and then we will be going back as we determine the general uses and we will be doing the zoning," Planning and Zoning Director Carol Windham said. "If you are commercial you can choose to come in and zone your property for commercial. Whatever you are zoned initially you're able to still continue you're use."

Certain city services, like police and fire protection, will begin immediately, she said. Rates for water will be cut in half if the area becomes part of the city, Windham added, and the residents will have options on other services, like trash pick-up.

An guide on frequently asked questions about annexation, tied to this proposal, is available at City Hall.

Under their consent agenda (a group of items approved by a single vote with no discussion) the council adopted a new ordinance authorizing businesses to stock explosives in accordance with Federal safety standards.

According to the new ordinance: explosives can be stored by businesses zoned Heavy Manufacturing or

even more of an impact on local tourism by allocating almost half to East Texas Oil Museum and the Kilgore College Rangerettes.

The one-time allocations would fund a $25,000 digital docent program at the museum and offset $15,000 of the costs of the Rangerette Revels production.

"The Rangerette Revels brings in about 7,500 participants – students, people from other communities – in a four- or five-day period. It's a big event for the city," Holda explained. Consequently, the production meets the rule of thumb for a HOT expenditure: tourism, putting heads in beds. "It's a huge volume of folks that come into the community.

"Many of those people coming in...stay the night, buy meals, go to other events and come back on a regular and annual basis. It does have a real impact."

Historically, the cost of producing the mid-April show was much less expensive, he noted, but with technical sophistication of lighting, sound and video the college has been hard-pressed "to continue to keep pace with what the standards are."

"Our costs have continued to rise significantly. We spend about $80,000 to $85,000 to produce Rangerette Revels. We bring in approximately $80,000 to $85,000."

Meeting costs is one thing, but the Rangerette organization pays for all expenditures out of gate revenues – in the past, there was enough money leftover from the show to fund the Rangerettes' travel expenses.

"We are really trying to find long-term underwriters and groups that will really make the operation productive and sustainable."

Likewise, Holda said, the East Texas Oil Museum has welcomed approximately

1.3 million visitors since it opened its doors in 1983.

Running the facility costs the college approximately $500,000 per year – "We have been trying to generate philanthropy, gifts, donations and other resources to keep that operation going."

– but the museum also fits the bill for a Hotel Occupancy Tax expenditure, Holda said, with 60 percent of visitors saying they eat or spend the night in Kilgore, often visiting other sites and events while they're here.

The college's $25,000 request for HOT excess is earmarked for a digital electronic docent system.

"Most of our docents have gotten older, and (we're) hitting the spring, when we have all of these school tours," he explained.

Recording the guides' tours and installing a permanent program for guide-less tours, "… provides real, long-term sustainability to continue to meet the needs of tourists."

At Tuesday night's meeting, Holda's presentation was listed as a 'Citizen's Presentation,' not an action item, so the council did not vote on his request but agreed to consider the proposal.

And, with three ex-Rangerette managers on the council – Mayor Ronnie Spradlin, Neil Barr and Bobby Hale – "You just got your majority," council member Harvey McClendon joked.

Holda acknowledged the council's responsibility to ensure its ongoing allocation of HOT funds is sustainable and emphasized their ability to make one-time expenditures of the revenues can make an impact.

"We can use them immediately," Holda said, with Revels set for April 11-14 and the digital docent program ready for implementation.

"Whatever we get, we're very appreciative."

operating anymore. We can impose penalties," Schleier explained. "The statute also gives us the right, by ordinance, to authorize a misdemeanor punishment for a violation."

As Delux Inn's owners have not made their Hotel Occupancy Tax payments since 2010, "essentially they can have five misdemeanor charges filed against them. Really six since they have not paid their audit amount either."

The council members overwhelmingly encouraged Schleier to turn up the heat on the two hotels until the debts are satisfactorily paid.

"They've collected it. They've just kept it," Mayor Ronnie Spradlin said. "Y'all have battled this for months – I'm happy with whatever you and (city manager Scott Sellers) determine is the right choice."

"Even filing criminal charges?"

"If that's necessary."

The hotel operators have been informed of the range of consequences they face, Schleier answered council member Bobby Hale; the city's letters have warned of the possibility of criminal charges or of an injunction.

"We need to quit barking and bite," Spradlin said.

"I agree with the mayor," Hale concluded.

"Do what you need to do."

Light Manufacturing. Those zoned General Commercial District may also store explosives with an approved Special Use Permit (or if the business was storing explosives as of Tuesday's approval of the ordinance). The business must file a copy of it's Federal Bureau of Alcohol, Tobacco and Firearms license with the Kilgore fire marshal's office along with annually filing copies of the Material Safety Data Sheets for each class of explosives. All explosives storage must follow federal explosives laws and regulations and the businesses must also submit to the fire marshal the amounts and classifications of all explosives in storage.

During the meeting, Kilgore Finance Director Lawanna Williams brought an update on the city's investment policy, and James Womack, Kilgore's fleet services director, requested a change to the city's equipment services policy.

If appropriate, Womack said, his staff would like to assist other city employees with work on their personal vehicles – at no cost to the city, of course.

"The policy that we're proposing is not really new or out of the mainstream. We've been allowed to do this, though it was never a written policy: it was a verbal agreement between myself and various former city managers," Womack explained.

"We're not looking to run a business after-hours but rather to help fellow employees. If the mechanics were allowed access to their tools and facilities after hours at my discretion to change their oil and rotate their tires...it would be a big morale booster.

"No work would be done for profit, it would all be on a courtesy basis and of course all the parts and fluids that were used would be supplied by the owner of the vehicle. We would just like to help the fellow employees without feeling like we're breaking any rules."

At council member Harvey McClendon's request, city attorney Rob Schleier weighed in on the prospect.

"It's a little bit gray to me, but so long as it's not costing the city anything, I don't see a problem with it."

Womack's report did not permit action by the council, but the group agreed to consider a policy on the proposal at an upcoming meeting.

Cecil R. West

I would like to take this opportunity to announce my candidacy for the office of Rusk County Sheriff. I have served the citizens of Rusk County previously as your Sheriff during the years of 1988 through 1996. I am asking you to elect me as your Sheriff on May 29, 2012 in the republican primary.

My background in law enforcement is extensive. I have almost thirty-five years in law enforcement and public service. I worked for the Henderson Fire department for two years. I served the citizens of Rusk county in the Sheriff ’s department for almost sixteen years. Seven years as a deputy and investigator and nine years as Sheriff. From the Sheriff ’s office I went to the U.S. Marshall’s Service in Tyler as special U.S. Deputy Marshall for six years and from there to Chief Deputy of Precinct 3 Constable’s office in Smith County. I hold a Master Peace Officers certificate with the Texas Commission on Law Enforcement.

If elected as your Sheriff I will promise to do my job and provide the citizens of Rusk county with a professional and efficient Sheriff ’s department that you can be proud of.

The sheriff ’s department will respond to your calls for assistance in a more timely manner. I will be available to the public during all business hours unless my duties as Sheriff prevents it. Working together we can make this happen.

I would like to thank your for your support and vote in the republican primary on May 29, 2012.

Vxv|Ä eA jxáà Politcal ad paid for by Cecil R. West, 2167 CR 304 South, Henderson, Texas 75654

LOCAL

KILGORE NEWS HERALD ◆ PAGE 6A

SATURDAY, MARCH 31, 2012

Council approves one-time HOT allocations

By JAMES DRAPER news1@kilgorenewsherald.com

When it comes to putting heads in beds, the Kilgore College Rangerettes' Revels and the East Texas Oil Museum pass the test, city council members agreed Tuesday.

During their regular meeting, the council unanimously approved investing excess Hotel Occupancy Tax funds in the two organizations' tourism efforts and approved a change to the city's signage code, among other business.

Following up on Kilgore College President Bill Holda's request for one-time allocations of $15,000 and $25,000 for the Rangerettes and the museum, respectively, council members noted they did hear some objections to the funding. However, the group determined the $40,000 will continue to bring visitors to local hotels and motels, the simple standard for investing HOT funds.

"Other than annexation, I don't receive as many objections than to giving money to the Rangerettes," council member Randy Renshaw acknowledged. There is animosity among some members of the community about how many local girls make the line, he reported, but "I'm sure the judges make the fairest decision they can as to who's going to be part of the team."

But the key question is whether the group increases Kilgore's tourism profile.

"The focus for that is they represent Kilgore wherever they go. The program is so well-known that

young ladies from all over the country are interested," he said.

The hotel/money tax revenues are not city funds, council member Harvey McClendon pointed out.

The 13 percent tax (six percent of which goes to the state) is levied on patrons of local inns and expressly directed for the advancement and enhancement of tourism.

"The decision should be based on whether or not the Rangerettes do encourage tourism, and I don't think there's any question of that."

The East Texas Oil Museum has earmarked its funds for the creation of a digital docent program to better-serve visitors.

Overall, Hotel Occupancy Tax funds are currently divided between the Kilgore Chamber of Commerce (68.42 percent, capped at $195,000), the Kilgore Historical Preservation Foundation and Texas Shakespeare Festival (12.28 percent or $35,000) and the Kilgore Main Street Program, which receives up to $20,000, a 7.02 percent share.

Any collections above the $285,000 projection for 2012 will be set aside with approximately $85,000 in excess funds from previous years.

Benefitting organizations are contractually required to submit quarterly, itemized reports on how they invest the funds in tourism, and council members review the allocations each year during their annual budget cycle.

Requestors can apply for a share of the funds during the budget season, and the council can adjust the

percentages and beneficiaries at their discretion, as well as approve one-time allocations at any time.

"We can't say that this is going to be an annual donation. It's going to be a case-by-case situation," Renshaw said of the two new allocations. "Otherwise, I don't have any opposition to it at all."

Main Street Manager Clara Chaffin brought the proposed revision to the city's development code as it relates to signage in the Main Street Overlay District.

"Since my time here in the past three-and-a-half months I've had many questions about banners downtown," she explained. According to the current code, banners are allowed for special events only. "We sat down and rewrote it and gave that proposal to planning and zoning. They looked at it and approved it."

The new code, unanimously approved by the council, states that permits must be approved by the Main Street Advisory Board and defines a special event as "any event that generates the need for

additional signage."

The revised guidelines stipulate commercial banners may only be displayed for 14 days per year, no longer than seven consecutive days. Likewise, community event banners may only be displayed for 14 consecutive days.

"This ensures there are not banners up for months before or after an event happens."

Exceptions to the policy are subject to advisory board approval.

"The Main Street Advisory Board is very willing to take on this task in order to maintain the integrity and the feel of the downtown as we have it now," Chaffin said, "especially considering all the work that has gone into it."

Policing the new code is important, council member Randy Renshaw said before the vote.

"Typically when there's a violation downtown we send code enforcement downtown and ask them to remove the banner or the sign," Chaffin explained. "That's pretty much what we normally have to do."

"I don't see how you can have a

Under their consent agenda Tuesday night, Kilgore city council members approved: • A resolution on the city's Equipment Services Policy, allowing that department's employees "access to their tools and use of the city facility after hours, at the discretion of the Equipment Services Coordinator, for courtesy repairs or maintenance to city employees’ personal vehicles and equipment.

No work will be done for profit, and all parts and fluids will be supplied by the person who owns the vehicle and/or equipment."

• Prepared for the city's upcoming general election and special charter amendment election, appointing City Clerk Deborah Dane as early voting clerk as well as deputy early voting clerks Karen Custer, Lawanna Williams, Janell Kinsey and Don Kinsey.

Council members also accepted Valerie Melton as election judge and Margie Hall as alternate judge and approved a contract with Gregg County for leasing and programming electronic voting equipment, ballot tabulation and supervision.

With council’s blessing, city’s zoning chief tackles digital sign ordinance

KINDLES Continued from Page 1A

cords to go with the Kindles, and just received them this week.

“We’re hopeful the public is respectful when they check the Kindles out,” said Johnson.

Due to the high price of the USB and power cords, lost cords will have to be replaced by the library patron.

According to Johnson, KPL is still determining regulations regarding the Kindles, such as how much to charge for late fees or even how long a patron can keep a Kindle. Johnson stated that Kindles will be cata-

loged as library equipment.

In order to check out a Kindle, patrons must fill out an Electronic Device Borrower Agreement that details the terms of use.

“It’s a new area to experience,” said Johnson.

Johnson believes the Kindles will be ready to check out Monday.

The library is open Monday through Thursday from 9 a.m. to 6 p.m. On Friday and Saturday, it is open 9 a.m. to 4 p.m. KPL is closed Sundays.

For more information about the Kindles or KPL, call 903-984-1529.

By AUSTIN KING news2@kilgorenewsherald.com

NEWS HERALD photo by AUSTIN KING

Kilgore Public Library Clerk Deana Hutson displays one of the new Kindles that will soon be available for checkout.

Commissioners praise White Oak athletes, approve election details for upcoming primary on May 29

By AUSTIN KING news2@kilgorenewserald.com

Lunch Specials

Wed.-Taco Salad Thurs.-Chicken Fried Steak Fri.-Taco Salad Sat.- Burgers

Dinner Specials Wed.-Shrimp Cakes Thurs.-Pork Tenderloin Fri.-Ribeyes Sat.- Buy one get one equal value or less half off

law without a penalty," Mayor Ronnie Spradlin said.

According to Planning and Zoning Director Carol Windham, the new policy will carry the same penalties and fines as other code violations, and, likewise, challenges of rulings will go to the Zoning Board of Adjustment of Appeals.

"I don't have a problem with it as long as we enforce it," Renshaw said.

The council also approved $321,569.97 for infrastructure construction at the Mobbs companies' Windsor Park subdivision, about $17,500 less than originally anticipated.

"The agreement is the city will pay for the material, and Mobbs will do the construction," City Manager Scott Sellers explained.

"As the property sells, the city will recapture the share of the material cost for that property."

The measure passed four in favor with one abstention – Spradlin did not vote as his company, East Texas Lumber, won the bid for furnishing rebar to the project.

The Gregg County Commissioners Court honored a number of White Oak students for their athletic accomplishments this school year Thursday morning.

The White Oak High School Boys Basketball Team, the Roughnecks, won the UIL Class 2A State Championship, defeating Brock in the finals. This is the first state title WOHS has won since 1957. The team’s season record was 37 wins with only one loss, and the court honored the team’s players, coaches, staff and parents.

The players are as follows: Jerred Wisenhunt, senior; Slade Sutton, sophomore; Jordan DeAguero, junior; Skylar Sutton, junior; Chadd Johnston, senior; Kris Anderson, junior; Josh Benson, sophomore; Carson Andrews, junior; Josh Hood, junior; Cass Carr, sophomore; Dylan Gale, sophomore; Ian Story, senior; Caleb Carr, senior; Hayden Nichols, sophomore; Gabe Michael, sophomore; Levi Yancy, junior; Clay Hunter, junior.

Head coach Ron Boyett and assistant coaches Jeff Hampton and Billy Terry were honored alongside support staff members Matthew Wofford, Leigha Sheridan, Rebekah Holcomb, Maddy Belcher, Samantha Crossland and Hagen Henson.

The court also honored Bri Matthews of White Oak, who became the Class 2A Girls State Powerlifting Champion. Matthews was recognized alongside WOHS power lifting head coach Eddie Shuttlesworth and assistant coach Kim Taylor as well as the superintendent and board of trustees of White Oak Independent School District.

The following Gregg County employees were given awards for their service to the county: Curtis L. Black, Road and Bridge Precinct 4, 5 years; Cindy A. Browning, Purchasing, 5 years; Cindy L. Hensley, Road and bridge Precinct 3, 5 years; Larry D. King, East Texas Regional Airport 5 years; James M. Lacy, Community Supervision, 5 years; Clarence E. Ramey, Sheriff’s Office, 5 years; Mary E. Pepper, Tax Office, 10 years; Cathleen M. Crank, Tax Office, 15 years; Cathy P. Cerliano, Juvenile Probation, 25 years.

The court also approved an updated Joint Resolution and the early voting schedule of the May 29 Primary Election and announced the updated information for

the election.

Important dates in the election are as follows: March 30 – First day to apply for mail ballot.

April 14 – Last day to mail military ballots.

April 25 – Last day to mail new voter certificates.

April 30 – Last day to register for primary.

May 14 – First day of early voting in person.

May 22 – Last day to apply for a mail ballot.

May 25 – Last day of early voting in person.

July 31 – Primary run off.

Early voting will be available at the following locations at the following dates and times: Gregg County Courthouse: Monday, May 14 to Friday, May 18, 8 a.m., to 6 p.m.; Saturday, May 19, 7 a.m. to 7 p.m.; Sunday, May 20, 12 p.m. to 5 p.m.; Monday, May 21 to Friday, May 25, 7 a.m. to 7 p.m.

Kilgore Community Center: Monday, May 14 to Friday, May 18, 8 a.m. to 6 p.m.; Saturday, May 19, 10 a.m. to 4 p.m.; Monday, May 21 to Friday, May 25, 8 a.m. to 6 p.m.

Gladewater City Hall: Monday, May 14 to Wednesday, May 16, 8 a.m. to 6 p.m.

Liberty City Community Center: Monday, May 21 to Friday, May 25, 8 a.m. to 6 p.m.

Elderville Community Center: Monday, May 21 to Friday, May 25, 8 a.m. to 6 p.m.

In other news, the court approved a request to name April 2012 as Child Abuse Prevention Month in Gregg County.

Approval was granted for the City of East Mountain to place a 3-inch PVC water line in the right of way of Walnut Lane.

The court approved the Sheriff’s Office’s request to utilize inmate labor to assist The ARC of Gregg County, and a request to allow $10,000 from non-capital account to be used to purchase five LED light bars for patrol vehicles.

The court also approved the payment of annual membership dues for 2012 from East Texas Council of Governments in the amount of $18,260.

The board approved all items presented, including payroll and transfer of funds, bills payable and budget transfer amendments and health plan claims payments and the County Clerk’s Quarterly Investment Report for the first quarter of fiscal year 2012.

Today’s businesses are turning to digital signs to attract costumers and spread a larger message. City Planning and Zoning Director Carol Windham recognizes this, and hopes to come up with regulations that will benefit Kilgore in regards to these signs.

“Over the past year I have received several calls regarding digital signage, about our regulations,” said Windham. “We have none.”

Windham proposed that the city council consider adopting a future ordinance to regulate digital signs, which currently do not fit into the same regulations as regular signs in the city.

The council was interested in a proposed ordinance, so Windham must now create one. Factors such as message time, content and lighting are major focuses that Windham will have to determine.

“What we’re really looking at is how long a sign stays up before it changes,” said Windham.

A message that changes too often might provide a distraction for city drivers. The way that messages transition from one to another is another thing Windham must consider. Sign sizes will also be addressed in Windham’s ordinance.

The main concerns of the ordinance will be driver safety and beautification.

“We want to ensure the safety of motorists,” said City Manager Scott Sellers, who spoke with Windham about the future proposed ordinance.

“With signage in general, you don’t want a city to look cluttered,” said Windham. “I’m all for digital signage, but we need to learn how to adapt to it.”

Windham also hopes to speak with Main Street Advisory Board to discuss regulations and restrictions for digital signs downtown.

At least three more digital signs are to be installed soon in the city. She believes that the ordinance will take about one month to finish before she returns to the city council to propose to have it adopted.

“As I see more digital signs come on, as a planner I feel it’s time we tackle that issue,” she said.

+

WEDNESDAY, JUNE 20, 2012

KILGORE NEWS HERALD 1 SECTION, 112 PAGES

INSIDE SPORTS: KBBA all--star teams pursue district championships this weekend.

See Page 12 SHOPPING SMART: Look inside for money-saving specials from Atwoods, Blake Furniture, CharBurger Stockade, Conaway Homes, Johnny’s Ozark Fried Chicken, Longview-Kilgore Cable TV.

Facebook:

Twitter:

Kilgore News Herald

KilgoreNews

KILGOROUND BILL WOODALL

+

DOES ANYONE know the history of Baughman Road in Kilgore? Specifically, we’re trying to figure out if it’s mispronounced.

Or misspelled.

Why Baughman Road is pronounced Bachman?

• PATRONS OF Kilgore Public Library checked out 870 traditional works of fiction – books on paper – during May. BUT new-fangled digital technology is catching up with the more traditional ink-on-paper technology… patrons also downloaded 674 ebooks – 43 percent of all books checked out. Library patrons also checked out 413 audio books and 356 DVDs. THE library reports 14,887 library cards in circulation.

• ONE OF these days, the police are going to find out who stole the mannequin from The Crystal Spur and the mannequin from Kilgore Historical Preservation Foundation.

And – you heard it here first – when the cops go into that person’s house, they’re going to find some odd stuff.

IF it weren’t so doggone expensive to replace those big windows, the thief with the mannequin fetish would be funny. The story sounds like something cooked See KILGOROUND, Page 4A

INDEX Classified Crossword Daily Digest Horoscope Obituaries Sports

VOL. 81, NO. 49

AMERICA’S NO. 1 SMALL CITY

903.984.2006 1615 Hwy. 259 N., Kilgore, TX 75662

www.kilgoreford.com

KILGORENEWSHERALD.COM

Stealing a mannequin is pretty weird.

Stealing two...

"Isn't that crazy?" KPD Capt. Roman Roberson observed Monday, passing on clues from the second Main Street mannequin misappropriation in as many months.

This time, it was the Kilgore Historical Preservation Foundation office at 105 N. Kilgore Street that took the

By JAMES hit, sometime in the earlyDRAPER morning hours Monday.

A witness called the incident in at 5:19 a.m., Roberson said, reporting that the right-most plate-glass window at the storefront had been reduced to shards by a thrown weight.

The mannequin, meanwhile, was missing. Clad in overalls and vintage KHPF clothing, she apparently put up a fight.

"They lost a leg going out," KHPF President Marian Richardson said Monday evening. "And they left a foot from the statue."

Nothing else was taken – the building also houses vintage costumes from the Texas Shakespeare Festival, KHPF merchandise and other items of varying value. The thieves only had eyes for the life-size doll, worth about $100, but they managed to do about $300 or $400 of

50 CENTS

Main Street will ask for more hotel tax funding

Police pursue pilfered plastic people

Various entities prepare outlook for city’s budget

By JAMES DRAPER news1@kilgorenewsherald.com

Kilgore police are in the middle of a mannequin-hunt after thieves broke into a second Main Street business Monday morning.

City departments and local organizations are in the thick of their budget preparations right now, many of them scheduled for a visit to the Kilgore City Council in the coming weeks.

Main Street Manager Clara Chaffin will make that trip June 26 – currently, her working budget for Fiscal Year 2012-2013 shows a decrease of more than $10,000 in city funding supported by a corresponding increase in Hotel Occupancy Tax funds.

"The actual (departmental total) budget itself is staying very similar to what we had last year," Chaffin said Monday.

The program's personnel costs show an almost 10 percent decrease of $5,300, a readjustment from the past year's budgeted amount – set prior to Chaffin's hire in November 2011, the budget lines reflect a larger amount than her final negotiated salary and benefits.

Projected supplies increase by almost $2,200 with the inclusion of materials for the historic theaters' neon lights, banners for the light poles and additional food supplies for volunteers.

Overall, contractual services within the budget show a $7,150 decrease: Chaffin's first budget as manager reSee MAIN STREET, Page 3

+

Illustration by James Draper

Bard gets bubbly during field kids’ trip to TSF

"I just still go back to kids on a dare. Experience leads me to believe it's probably juveniles, teenagers."

SEE PAGE 3

KPD Captain Roman Roberson

See MANNEQUINS, Page 3

Rabbit Creek project passes halfway point

By AUSTIN KING news2@kilgorenewsherald.com

Kilgore City Council approved a pair of action items regarding the continuing replacement of swage pipes near Rabbit Creek.

“The project itself is moving quite well,” said

Public Works Director Seth Sorensen.

According to Sorensen, the project is just past its halfway mark.

The first item on called for a project change order, a first for the Rabbit Creek Sewer Project. This item requested improvements to

the Rabbit Creek trunk sewer.

The change order will push the completion date of the project back five days. The original projected completion date was 420 calendar days. With See RABBIT CREEK, Page 3

NEWS HERALD photo by J.M. JONES

Overton’s newest celebrities, Kaleb and Micayah Tate, were Mister and Miss Juneteenth 2012 at the head of the parade in downtown Overton Tuesday.

TSF’s players take their marks, make an impression on stage

Overton remembers Juneteenth

news2@kilgorenewsherald.com

By J.M. JONES 8 9 4 9 4 11-12

CAPITAL OF THE EAST TEXAS OIL FIELD

joejones@kilgorenewsherald.com

President Lincoln’s Emancipation Proclamation was announced in Texas on June 19, 1865.

Overton has wrapped up a three-day observance of ‘Juneteenth.’

Local events sponsored

By AUSTIN KING This year’s Texas Shakespeare Festival features the talents of 22 gifted individuals in the acting and intern acting companies.

TSF reaches from coast to coast in search of talent. Artistic director Raymond Caldwell explained that TSF advertises with the professional acting publication “Backstage” to help attract talent.

“We say in our ad what shows we’re doing and how many male and female positions are available,”

and hosted by the Overton Juneteenth Celebration Committee were a block party Friday in Overton Community Center with entertainment, food, music and a talent show.

Saturday, Spring Chapel Combined Methodist Epis-

See ACTORS, Page 6

NEWS HERALD photo by AUSTIN KING

TSF actors rehearse their production of “The Merry Wives of Windsor.”

See JUNETEENTH, Page 7

903-983-1494 1201 Stone St. • Kilgore, TX www.walmart.com

+

CMYK

East Texas Hardware

1111 N. Kilgore St., Kilgore, TX • 903-984-2036

LOCAL

WEDNESDAY, JUNE 20, 2012

MAIN STREET

Continued from Page 1

moves and relocates almost $10,000 in advertising (to now be funded from HOT money), adds an additional $2,000 for her training, conference fees and travel expenses and maintains the $15,000 funding for facade improvement grants.

"We do have between $6,500 and $7,000 left in this year's budget if someone wants to come forward and do a facade improvement that they can complete before October 1," she noted. How much of the current balance or next year's will be used, Chaffin doesn't know – all but two of the primary, occupied buildings and businesses within the Main Street Overlay District have already sought and received the facade grants.

In the current budget, Main Street is allotted 7.02 percent of all Hotel Occupancy Taxes collections anticipated by the city – hotels and motels tack an additional seven percent tax on all rented rooms at the city's direction (the state collects an additional six percent).

The state requires the collected monies be used within certain parameters, specifically for activities that generate more tourism and thus put more 'heads-in-beds' at the hotels and motels.

For Main Street and its share of $285,000 projected in FY2012, that's typically advertising and promotion of the downtown, but the funds can also be used to maintain a visitors center, for certain administrative expenses, historical preservation, restoration and the arts.

Under the current budget (and based on collections so far) the Main Street will likely receive the entirety of its $20,000 portion of HOT money. The Kilgore Chamber of Commerce receives the largest share of the city's collections, 68.42 percent (capped at $195,000); the Texas Shakespeare Festival and Kilgore Historical Preservation Foundation are allocated 12.28 percent each, a maximum of $35,000. Excess collections are set aside for specific allocation by the Kilgore City Council.

According to Chaffin, moving advertising expenses from the regular budget to HOT monies will require an increase in the tax funding to keep the budget stable: $130,282 in 2011-12 compared to $130,085.

"Last year we asked for $20,000. This year I'm asking for $30,000 with a possible increase to $40,000" to support new activities.

MANNEQUINS other damage between the broken window and a smashed glass desktop.

"They probably did more damage to the window than the mannequin's worth," Roberson agreed. "I don't believe in coincidence. It's the same M.O. Same method they used across the street."

At the Crystal Spur Boutique, on May 7, thieves threw a similar dumbbell through a display window, causing about $850 in damage and stole a blonde mannequin.

"I just still go back to kids on a dare," Roberson said.

"Experience leads me to believe it's probably juveniles, teenagers."

Either way, KPD is taking a "real hard look" at the inci-

Continued from Page 1

dent and processing prints lifted from the scene, he said.

In the meantime, the theft drew other local media outlets out of the woodwork Monday to sniff around the crime scene, calling Roberson for soundbites.

"Hopefully, with the press attention, we can get some information from the public.

I'm sure somebody out there knows somebody running around with a couple of mannequins," Roberson said.

"We sure would appreciate it if they would let us know.

Give us a call."

Contact KPD at 903.983.1559 or call in anonymous tips to Gregg County Crime Stoppers, 903.236.STOP.

RABBIT CREEK

NEWS HERALD photos by AUSTIN KING

Texas Shakespeare Festival actor Tommy Kearny prepares to put on a bubble performance for kids, parents and fellow company members at this year’s World of William Shakespeare program Saturday, sponsored by LongviewWOW. (Below) Actor Jared Van Heel instructs one of the WOW youth participants in the basics of juggling.

Actors wow kids during annual TSF workshop

By AUSTIN KING news2@kilgorenewsherald.com

Children and parents alike showed up at the Texas Shakespeare Festival Center to participate in the third annual World of William.

The program was organized through the cooperation of Longview World of Wonders and TSF. LongviewWOW was formed in 2009 in an effort to provide an educational, museum-like experience for East Texas youngsters.

“Basically, this is co-sponsored by LongviewWOW and TSF,” said Becky

Continued from Page 1

the push back from the change order, the expected completion date is December 3.

“They’re on track to finish by the completion date,” Sorensen said.

The second item was a request to replace the pumps at Rabbit Creek.

Sorensen explained that the current pumps are old and have been repaired year after year to continue seeing use. The new pumps are to be distributed by Carter Equipment of Longview.

The city council approved both items.

The original cost of the Rabbit Creek Sewer Project was $2,602,645.23. The change order added $31,951.45 and the pumps added $24,550. The new total of the project is $2,659,146.68.

Council members also approved a request for materials for a water line at the upcoming industrial park at Fritz Swanson Road.

This pipe will be made of PVC and can be used for extensions at later dates.

The industrial park is a part of the Tax Increment Reinvestment Zone program the city is following to help stimulate growth.

“Our contribution to this is that we’re going to widen the road and extend the water line,” Sorensen said.

The item that was passed only extended the water line.

Hayes Pipe Supply Incorporated of Longview will provide the pipes for $16,729.

Commissioners weigh standard summer items

By AUSTIN KING news2@kilgorenewsherald.com

Gregg County Commissioners met Monday and approved a number of items, including a request from Republic Services, Inc. The request called for the court to approve the refunding of Allied Waste North America Inc. 2007A Bonds, and to designate a public hearing officer. The item also called for County Judge Bill Stoudt to execute certificates approving the Order and hearing. The item was approved by the commissioners with no discussion.

The court also approved a request from AgriLIFE Extension Service to make a cost-share purchase on two computers for use by a county 4H and Youth Development agent and an AgriLIFE Extension office administrative assistant.

A request for additional pledged securities held by a

KILGORE NEWS HERALD ◆ PAGE 3

third party bank as collateral for on demand accounts in a local depository bank was approved.

Commissioners also approved the renewal of retainer fee for the employee benefit consulting services of Kenneth Wethe.

Approval was also given for the purchase of a new

welding machine.

The court approved all items presented, including payroll and transfer of funds, bills payable, budget transfer amendments and budget amendments, health plan claims payments, minutes of the May 2012 term and the County Clerk’s Special Report for May.

Supercinski, World of William chairperson. “Then they have an actor’s workshop.”

World of William is a program geared to educate children about theater.

“The children get to see the costumes and props,” Supercinski said.

The day began with a tour though the festival center, where kids and their parents took a look at all the little things that makes TSF work year after year. The group is guided by festival representatives and company members.

After the tour is finished, company actors take over and lead the kids in a

short improvised theater production.

The story and ideas are made entirely by the kids. Imagination is the key.

“The actors tell the kids all kinds of improvisation skills,” Supercinski said.

“It’s an opportunity to be creative and interact with people who aspire to be professionals, and who are professionals,” said TSF vocal and education director Jennifer Burke Once the acting workshop came to an end, participants enjoyed a pizza meal, and then watched as TSF actors Tommy Kearny and Jared Van Heel showed of some of their talents as a special treat. Kearny displayed his skill of creating bubbles and keeping them afloat, while Heel showed off his juggling abilities.

The children were also given a packet to take home with them that included information on a number of activities and a brief history of Shakespeare, the TSF season schedule and seeds of flowers used for the Shakespeare Garden.

They also received a voucher for this season’s children’s play, “Quest for the Lost Chalice.”

LongviewWOW’s next event is “Out of this World,” a science expo about space.

For more information about TSF, visit the company website: texasshakespeare.com. For more information about LongviewWOW or World of William, visit: longviewwow.org.

+

WEDNESDAY, JULY 4, 2012

KILGORE NEWS HERALD VOL. 81, NO. 53

1 SECTION, 10 PAGES

AMERICA’S NO. 1 SMALL CITY

CAPITAL OF THE EAST TEXAS OIL FIELD

KILGORENEWSHERALD.COM

HAPPY FOURTH OF JULY

Local vet among nation's oldest

By AUSTIN KING news2@kilgorenewsherald.com

World War II began over 70 years ago, and one of the United States’ oldest WWII veterans, Elmer Hill, now lives in Henderson, just as he has almost all of his life.

“I’m really not that old,” Hill said.

“I’ve just been here a long time.”

Born August 20, 1906, Hill was

Elmer Hill

INSIDE SPORTS: Area youth baseball allstars begin state tournament play this weekend.

See Page 10

raised alongside his 10 brothers on a farm about six or seven miles out of Henderson. As an adult, during the years when racial segregation was all-but expected in the United States, Hill was the principal of Henderson Colored High School, now known as Hill High School.

Even though he was a part of an See VETERAN, Page 2

NEWS HERALD photo by AUSTIN KING

Facebook:

Law Enforcement Legacy

By JAMES DRAPER

news1@kilgorenewsherald.com

In the past four months the Kilgore Public Library has checked out more than 850 E-books.

The average is seven per day, assistant librarian Janet Marley said Tuesday, but one day drew 20 online borrowers.

“More and more people are calling about it and discovering what a great thing it is,” she said.

The success of the program and new technological developments have prompted an $11,000 bump in the library’s draft budget for Fiscal Year 2012-2013.

“We’re making a shift, I can’t say away from paper, but toward digital,” Kilgore City Manager Scott Sellers

Twitter:

KilgoreNews

KILGOROUND BILL WOODALL

+

THANKS… TO ALL 400 OF you.

CHASE Bank offered 20 grants of $250,000 to small businesses. Applicants were required to answer five or six questions – in no more than 500 words each – about how the money would be spent, level of community involvement and such.

We were among several hundred small businesses across the country that filled out an application.

THE catch was that the application would not even be reviewed unless the business could persuade at least 250 friends to vote for them on a facebook page dedicated to what Chase called Mission Small Business You voted for us – 400 of you voted for us – and our application will be reviewed and evaluated.

If they like it enough, we’ll get a check.

SINCE you voted, here’s See KILGOROUND, Page 4A

See BUDGET, Page 3

BE CAREFUL! NEWS HERALD photo by JAMES DRAPER

H

as well as patrol cars from the Texas Department of Transportation, the Gregg County Sheriff's Office and police departments of Kilgore, Kilgore College, Longview, White Oak and Nash. Fire engines and other emergency vehicles lined the route in Longview and Kilgore as well.

A wide array of uniforms filled Kilgore College's Dodson Auditorium as more than 1,500 people, including hundreds of Ferguson's current and former students and colleagues, remembered the long-time officer and instructor.

undreds of vehicles formed a long cavalcade in honor of Les Ferguson Monday, following the route the East Texas Police Academy Rangemaster took to work last Wednesday – Ferguson died in a motorcycle wreck June 27 en route from his home in north Longview to the Kilgore academy, where he had worked since 1990.

The procession included more than 150 civilian motorcycles – mostly members of Ferguson's law enforcement motorcycle club, the Blue Knights –

Classified Crossword Daily Digest Horoscope Obituaries Sports

8 9 4 9 4 10

Find fireworks safety tips inside on Page 7.

Work progresses at KISD campus construction site

Festival director outlines vision for theater's future

By AUSTIN KING

news1@kilgorenewsherald.com

By JAMES DRAPER

news2@kilgorenewsherald.com

INDEX

U.S. flags line the sidewalk near St. Luke's United Methodist Church – and roadways around town – this week for the Fourth of July through the Kilgore Rotary Club's patriotic flag program.

City plans to expand e-lending at library

SHOPPING SMART: Look inside for money-saving specials from Atwoods, Blake Furniture, Char-Burger Stockade, Conaway Homes, CVS Pharmacy, East Texas Hardware and Johnny's Ozark Fried Chicken.

Kilgore News Herald

50 CENTS

With only eight rainy days getting in the way of progress, the construction of the new Kilgore Independent School District elementary and middle school is well under way.

“We’ve had more rain than expected for this time of the year,” said KISD superintendent Jody Clements. “But we’ve been real pleased with the way things

903-983-1494

1201 Stone St. • Kilgore, TX www.walmart.com

NEWS HERALD photo by AUSTIN KING

A construction crew prepares the ground for plumbing installation at the site of Kilgore ISD's new elementary and middle school campuses.

are going. Everything is still on target.”

Construction of the new schools took off in March.

Clements believes that the slight rain delays will See CAMPUSES, Page 7

903.984.2006

1615 Hwy. 259 N., Kilgore, TX 75662

In a request for additional Hotel Occupancy Tax funding last week, Texas Shakespeare Festival Artistic Director Raymond Caldwell also revealed some of his hopes for the company’s future and ways it can further add to Kilgore’s cultural foundation.

“With its dramatic history, its inspiring downtown renovation, its hope of establishing an arts district with the refurbished Crim Theater as its hub, and its reputation as the home of a respected professional theater, Kilgore is ideally-suited to become a nationally-recognized cultural oasis,” Caldwell said. “By developing a strong partnership with the city, the Texas Shakespeare See FESTIVAL, Page 3

East Texas Hardware 1111 N. Kilgore St., Kilgore, TX • 903-984-2036

www.kilgoreford.com

+

CMYK

+

LOCAL

WEDNESDAY, JULY 4, 2012

KILGORE NEWS HERALD ◆ PAGE 3

BUDGET

Members of the Patriot Guard line Nolan Street Monday afternoon, awaiting the arrival of a motorcade honoring East Texas Police Academy Rangemaster Les Ferguson. (Right) Longview Pipe and Drums performed Amazing Grace and other songs during Ferguson's memorial service in Dodson Auditorium, ending with a 21 gun salute and Taps played by his son, Les Alex Ferguson.

NEWS HERALD photos by JAMES DRAPER

FESTIVAL Festival can help to enhance Kilgore’s profile and play a vital role in helping ‘The City of Stars’ become also ‘The City of Arts.’”

TSF is one of four principle beneficiaries of the city’s HOT monies along with the Kilgore Chamber of Commerce, the Kilgore Main Street Program and Kilgore Historical Preservation Foundation.

Like KHPF, the festival is currently allocated 12.28 percent of funds raised by the city’s seven percent tax on local rented rooms (in addition to a six percent state Hotel Occupancy Tax). The revenue generates a maximum of $35,000 per year for both TSF and KHPF. Main Street was allotted 7.02 percent in the current budget (up to $20,000) and the chamber netted 68.42 percent, up to $195,000.

Caldwell’s initial request during the council’s regular meeting June 26 (ultimately approved by the group) was for an additional one-time allocation of $10,000 from the city’s excess HOT funds. Anything above the city’s projected HOT collections – $285,000 in FY2012 – is set aside for distribution at council members’ discretion.

“Without the city’s contributions the festival may not have survived for 27 years, so on behalf of the 1,200 theater artists who have worked for TSF and almost 200,000 audience members who have attended a performance since 1986, I want to thank the city commissioners of Kilgore for their generosity and most valuable encouragement,” Caldwell said.

“With the city’s help, TSF has become a highly-respected regional theater with an enviable reputation among theater professionals across the country and an asset to the cultural environment as well as to the economy of Kilgore, Gregg County and all of East Texas.”

The money will be used to fund professional recordings of the festival’s 2012 lineup of six shows for archival purposes and DVD sales of select productions.

Caldwell also planted a seed for another request, aiming for an increase in the festival’s overall share of HOT funds in FY2013 and beyond.

Continued from Page 1

According to surveys during the 2010 and 2011 seasons, more than 50 percent of the festival’s audience traveled more than 50 miles; 20 percent came from more than 100 miles away. TSF estimates the crowd generates 200-plus hotel room rentals during the five weeks of performances each season in addition to the extra business marked at local retailers and restaurants from the audience and the festival’s cast and crew.

“Last summer, the festival sold 100 percent of all available permanent seats, a rare accomplishment for any theater,” Caldwell noted, “and ended the 2011 season without a deficit for the second consecutive year.

“Our goal is to repeat those successes this year, of course, and to increase the number of performances beginning in 2013, but to do that we will need additional resources, not only to cover production expenses but also for publicity and advertising.”

With the council in the midst of budget workshops for FY2012-2013 and fast-approaching discussions of how to allocating HOT monies, Caldwell asked for an additional one-seventh of the tax revenue (approximately $40,000 according to current projections).

The money will help the festival promote and publicize its efforts outside the immediate area, Caldwell said.

“TSF has never had a budget for publicity and advertisement and has always depended, therefore, on the generosity of area broadcasters for public service announcements and on donations to cover the cost of additional print ads,” he explained.

More funding will be translated into bolstering TSF’s Web presence at www.texasshakespeare.com as well as placing newspaper ads and television spots in a broader market.

Looking further, Caldwell said, he hopes a strengthened relationship with the city, in addition to the festival’s ongoing patronage from Kilgore College, will grow the reputation of all.

“The City of Kilgore and the Texas Shakespeare Festival can work together to follow the example of Ash-

land, Ore., and Cedar City, Utah – two small college towns that became major tourist attractions mainly because of the successes of the Oregon and Utah Shakespeare Festivals,” he said. “Both towns are evidence of what national studies have shown – that communities where the arts thrive attract not only tourism but other businesses as well.”

In the spring, Caldwell and other TSF representatives toured the historic Crim and Texan Theaters with Mayor Ronnie Spradlin, Kilgore City Manager Scott Sellers and Main Street Manager Clara Chaffin. The festival employees took measurements of the two derelict venues and talked to the city’s leaders about estimated costs for their respective restoration.

“The festival could become a yearround enterprise offering a variety of live performances – not only plays and not just on the college campus,” Caldwell suggested last week. “It could be part of an accredited performing arts conservatory – the only one in the south – training actors, singers and dancers and showcasing their talents throughout the year.”

Caldwell’s $10,000 project drew a unanimous vote by the council. The second request, Spradlin noted, will be considered further in July during the council’s upcoming discussions of revenues and HOT allocations.

“I think the most exciting part of Raymond’s letter was the thought and possibility of us having an arts conservatory here. They have them on the east and west coast but none in the central or southern states,” Spradlin said later. It’s well within the Texas Shakespeare Festival’s abilities, but “To do that they’ll need a home. It will be a vocational acting, dancing – all the arts – program.

They’ll constantly be doing performances throughout the year.

“I think it’s exciting for the downtown arts area and the revitalization of downtown.”

Sellers agrees – if the festival is indeed selling-out shows, it may very well be poised for expansion.

“In light of recent conversations with TSF it appears the city is able to assist in that endeavor.”

Continued from Page 1

explained last week.

Increasing the library’s numbers for the coming year was one of several talking points during last week’s budget workshop following the regular city council meeting.

“This next year we’d like even to add more to our online proferrings,” Sellers told Kilgore’s five council members, “including an online language learning system.”

The Mango Languages program offers more than 40 foreign languages and 15 ESL courses. Once incorporated into the library’s system, all will be accessible through library computers or via patrons’ card accounts and online remote access.

This in addition to $5,000 to purchase more E-books through Overdrive, KPL’s digital lender, and $3,330 for Learning Express Database.

“Learning Data has tutorials for SAT, ACT, GED, citizenship,” Kilgore Public Library Director Linda Johnson explained. “There’s just all sorts.”

Meanwhile, the coming budget also accounts for the library’s wireless component – with Network Communications’ fiber strung to the building for Internet and phones, the city added public-accessible wifi to turn the library into a local hotspot.

“It’s part of moving our library into that digital era and adding the programs to do that,” Sellers said.

Other budgets under review last week included the Main Street program, Health Department, Swimming Pool, Building Maintenance & Inspections, Planning and Geographic Information Systems.

Notable changes for Main Street in the next fiscal year include an additional $7,450 (up from $300) for supplies – the program, through the city, will take over the maintenance of the Crim Theater’s neon facade at an estimated $3,000. The program is also budgeting $4,750 for banner replacements, funding 11 banners each of four designs for the downtown light poles.

Contractual registration fees and travel expenses increase by $395 and $1,700, respectively, covering additional conferences and training for Main Street Manager Clara Chaffin. The program’s overall budget decreases, initially, from $118,951 to $100,632, adjusting for an overestimation of salary in the current budget and shifting some $10,000 of advertising costs to an anticipated increase in Hotel Occupancy Tax funding.

Discussing the health department, Kilgore Special Services Superintendent B.J. Owen said there is no need for the city to hire an additional animal control officer as the coming budget funds cross-training of employees to handle any extra workload.

The budget also pays for an $1,800 laptop and air card for the city’s code enforcement officer, Justin Windham, allowing him to stay mobile rather than returning to the office regularly for paperwork.

The health department’s anticipated budget also shows a $1.7 million decrease as the residential and commercial garbage collection has been relocated to the finance department’s budget.

The budget for the Kilgore City Pool has increased by $5,743 to $124,990 – that includes additional costs for running the concession stand and overall chemical and cleaning supplies.

“We’re having the pool people give us new estimates on it because the technology has changed a bit,” Owen noted.

The budget for building maintenance and inspections drops more than $7,000 from FY2012 to FY2013, projected at $346,073. The the planning department budget increases by $788 overall in FY2012-13 (funding an increase in postage and costs for public notices) while the GIS numbers (lacking a capital outlay of $13,398 for a new server in FY2012) fall from $94,008 to $88,542 – the department’s budget does include almost $7,000 in additional funding for software maintenance, upgrades and licensing.

“I believe council was satisfied with some of the cost-cutting efforts we are making while at the same time trying to be as progressive as possible,” Sellers said later. “An example of this would be in our library as we are implementing much more digital and online services to the existing services that the library offers.”

Want Instant Updates?

Sign up at www.KilgoreNewsHerald.com

LOCAL

KILGORE NEWS HERALD ◆ PAGE 2A

SATURDAY, SEPTEMBER 1, 2012

Veterans request HOT funds to expand memorial park

By JAMES DRAPER news1@kilgorenewsherald.com

No one commented on the city’s proposed tax rate for Fiscal Year 2013 Tuesday night, but a separate public hearing on the draft budget drew another request for Hotel Occupancy Tax funding.

Council members on Aug. 14 set a tentative tax rate of 40 cents per $100 valuation to fund the proposed $22 million budget in the coming fiscal year. The rate is one cent higher than the current FY2012 rate but only slightly higher (two hundredths of a cent) than the 39.980-cent rate recommended by Gregg County Tax Assessor Kirk Shields.

When the group votes on the rate Sept. 11 (following a second public hearing at 5:30 p.m. Tuesday), they can either adopt the proposed rate or decrease it.

During the first and only hearing on the budget, former Kilgore Mayor Joe T. Parker made a HOT request on behalf of the Kilgore Veterans Association.

Hotel Occupancy Taxes are collected from a seven percent tax on rooms rented at local hotels and motels. The revenues are disbursed, according to set percentages on a monthly basis, to a number of organizations selected by council members.

Intended as an investment in local tourism, putting ‘heads in beds’ through the various agencies’ efforts, on July 31 the council projected total revenues of $280,450

in FY2013.

The anticipated collections were divided between the Kilgore Chamber of Commerce (up to $152,450), the Texas Shakespeare Festival and Kilgore Historical Preservation Foundation (capped at $35,000 each), the Kilgore Main Street program ($30,000), East Texas Oil Museum ($10,000), Kilgore College Rangerettes ($10,000), East Texas Pipe Organ Festival ($5,000) and Kilgore Community Concerts ($3,000).

Excess collections are set aside in a separate fund for allocation at council members’ discretion. Currently, the city has an excess HOT fund balance of $83,546.49, set to increase – in the current year, all agencies have been fully-funded, so collections through Sept. 30 will be set aside.

The local veterans group recently purchased a 1950 Dodge ambulance, used in the Korean War, for $3,000.

Once the vehicle is repainted, it will be installed at Harris Street Park alongside the other elements of the Kilgore Veterans Memorial, including the wall of names, the half-derrick and oversized dogtag, memorial stars, two anchors and a vintage 1943 105-mm Howitzer.

“We spent the last bit of the money that the veterans had on that” ambulance, Parker told the council. The association’s now-depleted funds were collected from donations and fees raised by inscribing names on the

memorial wall. “We’d like to purchase some more stuff but we don’t have any money.”

If the council approves the HOT fund allocation, the veterans plan to purchase a 1942 Dodge Half-track – in service in Germany during World War II – ‘as is’ for $10,000.

It’s a good use of HOT funds, Parker said, giving visitors more to see at the park.

“It does create tourism because people come from all over to see the monuments we have out there,” he explained. Ideally, Parker added, the council will also consider an additional $15,000 of HOT funds to buy a 1941 SNJ trainer airplane to fill the remaining space at the memorial. “We’re just trying to improve the park out there where the monuments are.”

The request drew no comments from city council members Tuesday.

They’ll vote on the budget along with the tax rate on Sept. 11.

With no money left in their account after buying the ambulance, fellow veteran John Edney said the expansion of the park will halt without assistance.

“We’ve got to have help from the city. We want this park to be for the whole community, plus we want it to be educational” an outdoor object lesson for students studying the United States’ military history, Edney explained. “Everyone’s been so generous helping out. This time we need a little help.”

NEWS HERALD photo by JAMES DRAPER

A Gregg County Jail trustee navigates his wheelbarrow around the piles of cast out furniture and other items that have steadily collected in the Crim Theater during the past five decades. Above him, the iron skeleton of the theater's lower balcony remains exposed. With the inmates' help, the City of Kilgore is cleaning out areas of the theater, planning to fill it – temporarily – with a maze and fright scenes during the upcoming Crim Theaterror in October. Find more information at theaterror.com.

Code officer keeps close eye on compliance

By AUSTIN KING news2@kilgorenewsherald.com

Justin Windham, Kilgore’s code enforcement officer, is responsible for keeping Kilgore environment clean and citizens in compliance with city code.

“Anything that is an issue for our city, locally, is when I get involved,” Windham said.

Windham served Kilgore as a police officer beginning in 2001. In 2009, he began his career as a code enforcement officer, and earlier this year he received his basic certification in animal control.

Kilgore code enforcement officer Justin Windham explains his duties to Kilgore Lions Club members Thursday afternoon.

NEWS HERALD photo by AUSTIN KING

“The city has me doing animal control or code enforcement, depending on where they need me,” Windham said.

As a code enforcement officer, Windham’s duties include ensuring that local property owners remain in compliance with city standards. One major concern for the city is health standards; an unoccupied building that has become a nest for rodents is right up Windham’s alley for concern.

A cleaner, healthier neighborhood can bring up property values in the area, he told members of Kilgore Lions Club Thursday.

“A lot of the violations with the city code we have to address to the private sector,” Windham explained.

City code also calls for the repair of unsafe buildings, the repair or removal of junked vehicles, mowing and yard standards and other measures the city has taken to help keep

Kilgore healthy, safe and looking fresh. Should a property owner be found in violation of city code standards, Windham notifies the owner, who is given some time to bring the offending property back into compliance or request help.

In some circumstances, a property owner may be given an extension on the allotted time to reach compliance.

“Normally, we give them a certain amount of time,” Windham said.

“After that time runs out, we may issue citations or do the work ourselves, and bill the property owner.”

Windham’s other areas of concern include illegal dumping and disposal, littering and prohibited use of signs.

To learn more about Kilgore code enforcement, visit the code enforcement page of the city’s website, cityofkilgore.com/environmental-services/code-enforcement.

Prepaid tuition enrollment opens today Parents looking to make their child’s college education more affordable can begin enrolling in the Texas Tuition Promise Fund®, the state’s prepaid college tuition program, on Sept. 1.

The enrollment period runs through Feb. 28, 2013.

“This program is a great way to prepay all or part of a child’s undergraduate tuition and fees at Texas public colleges and universities at today’s prices,” said Texas Comptroller Susan Combs.

“And we offer flexible payment options to help fit any family’s budget as they save for college.”

Families in the Texas Tuition Promise Fund purchase prepaid “tuition units” that can later be used toward undergraduate tuition and required fees at schools ranging from Texas public community colleges to four-year, in-state uni-

versities. Prices are based on 2012-13 academic year costs for the state’s public colleges.

Type I units, priced for tuition and required fees for the most expensive public four-year school in Texas, cost $115.92 per unit.

Type II units, based on the weighted average cost of tuition and required fees across all Texas public fouryear schools, cost $82.92 per unit.

Type III units, priced at the weighted average cost of tuition and required fees across all Texas public twoyear schools, cost $21.39 each.

Under the plan, 100 units equal one academic year consisting of 30 semester hours of tuition and required fees at the Texas public school that most closely matches the pricing base. Families can pre-

pay for up to six years (600 Type I units or the equivalent amount of Type II and III units) of undergraduate tuition and required fees.

The plan’s payment options include lump sum payments, installment payments that include 8 percent interest or a payas-you go plan that allows parents to gradually add more units when the family budget allows. Payments can be as low as $15 after an account is established by paying a one-time fee of $25 and purchasing at least one unit.

The Texas Tuition Promise Fund is entering its fifth year. For more information about enrolling in the prepaid college tuition program, including a college cost calculator, go to www.

TexasTuitionPromiseFund. com or call (800) 445GRAD (4723), Option 5.

Ready to take your business online? Let us help!

Call 903.984.2593 • We'll Handle the Hassle

LOCAL

KILGORE NEWS HERALD ◆ PAGE 2A

TREATS we plan to have the police and fire departments,” Chaffin said. “Kids can learn more about what they do and see their vehicles.”

Afternoon events end at 6 p.m. Afterwards, the Crim Theaterror will be closed for an hour to switch to the scarier, more mature version of the fright house. Once the Theaterror reopens at 7 p.m., residents have one last chance to delve into the darkened halls of the abandoned theater for $10.

“My volunteers and advisory board are very excited for this day,” Chaffin said.

“It’s going to be an intense day.”

SATURDAY, OCTOBER 27, 2012

Continued from Page 1

During the trick or treat, parts of Main Street and Kilgore street will be closed for the safety of residents in the area. Once the final showcase of Crim Theaterror begins, the section of Kilgore Street in front of the Crim Theater will be closed.

“There’s a lot of parking places within a block or two of where they want to go that residents can park at,” Chaffin said.

The Crim Theaterror will also be open tonight from 7 p.m. to midnight, and Monday and Tuesday from 7 to 10 p.m.

NEWS.HERALD.photo.by.JAMES.DRAPER

Gregg. County. Game. Warden. Todd. Long. discusses. hunting. regulations. with. Kilgore. Rotarian. Bill.

Mishkind.last.week..It’s.a.24/7.job,.Long.says,.working.on.days,.nights,.weekends.and.holidays.to. enforce.the.law.and.protect.the.state’s.natural.resources.

GOATS

Continued from Page 1

are hoping to see,” said Nicholas Smalarz, associate producer of Restaurant: Impossible. “So that’s what Robert is going to come in and help fix.”

Restaurant: Impossible is an internationally-aired program that challenges Irvine and his crew to help turn around struggling local restaurants.

“Nanny Goats applied online at restaurantimpossible.com,” Smalarz said. “They met the criteria in terms of a restaurant that Restaurant: Impossible would work on.”

On Monday, equipment will be moved into the restaurant in preparation for renovations and filming. Irvine will arrive and filming will begin Tuesday. The process will conclude Wednesday with a grand reopening at 7 p.m.

Eager diners have reserved seating as late as 10 p.m. the night of the grand reopening.

“I personally think it’s a really good idea,” said Kilgore Main Street manager Clara Chaffin. “It’s definitely going to put Kilgore out there internationally.”

According to Chaffin, parking spaces will be blocked off from Nanny Goats to the corner of Kilgore and Main – those spots will be unavailable Monday, Tuesday and most of Wednesday.

With the downtown trick-or-trating and the Crim theater spook house, downtown will be busy. “I hope people who go to the grand reopening of Nanny Goats will also visit the Crim Theaterror,” Chaffin said.

Although the filming process will finish next week Nanny Goats neither owner Nancy Dupree nor anyone else related to the project will be allowed to discuss the experience until five days after the show is broadcast, which Smalarz expects will be NEWS.HERALD.photo.by.AUSTIN.KING in either late January or early February.

Nanny Goats is at 107 N. Kilgore St. Reservations for the Edith.Barnett.(left).works.the.cash.register.at.Nanny.Goats.Friday.afternoon..The.local.restaurant.is.expected.to.receive.a.big.change.next.week.after.a.visit.from.Food.Network's.Robert. grand reopening have been fully booked. To learn more, visit the restaurant’s website at nannygoatscafe.com/.

Irvine,.host.of.Restaurant:.Impossible.

KSA seeks HOT funds

By BILL WOODALL

bwoodall@kilgorenewsherald.com

Vickie Raymond, representing Kilgore Soccer Association, Tuesday assured the city council her organization puts “heads in beds” during their annual fall tournament.

Raymond went to this week’s council meeting seeking $5,000 in Hotel Occupancy Tax money to help cover tournament expenses.

The tournament in honor of Dr. James Repasky will feature 40 teams this year from as far away as Jasper and south Dallas. This tournament, she says, is the last before the tournament of champions held in Dallas in December.

Often, she said, “there will be 120 players plus parents here for the whole weekend.”

She said they provide teams a list of motels, restaurants and attractions.

“This is the only fund-raiser KSA has during the year. Proceeds from this tournament help cover expenses the rest of the year, plus this cost of this tournament.”

Raymond’s request as listed as a presentation item on the council agenda so the council

could not, under Texas open meetings laws, vote on her request. It will be on a future agenda for discussion and action.

In other business, developer Kenny Mobbs delivered a report on progress in his Windsor park development on the area of Airport Road in far northeast Kilgore. The city helped with paving and infrastructure in the subdivision and is to be repaid as the development progresses.

Mobbs said six homes in the north section has sold – three are already occupied – and he’s fielding requests for information about pricing in the southern section. Streets there are not yet paved, he said, but all pipelines have been relocated and he expects to pour concrete Oct. 31 He’s also negotiating with a commercial developer interested in putting a convenience store on the corner of FM 2087 (Dudley Rd) and Airport Road.

Demand for the homes and lots is so high, he said, “we’ve been scared to market it.

We’ve got some other projects going, too, so we’re afraid to market this very heavy for now.”

SHINE good scrubbing,” Phillips said. More than two tons of trash were collected in four hours. “It will be interesting to see if places like the traffic circle are back in the same shape they were in last year.”

Allied Waste’s Gene Keenon, KIBA president and manager of municipal affairs for Allied Waste, is always on the lookout for more pairs of hands to help clear the streets in time for the high-traffic holiday

Continued from Page 1

season, making the city look a little bit nicer for visitors.

Asked to bring their own gloves (and their friends), each volunteer receives a commemorative T-shirt (in addition to a handful of empty trash bags).

“We like for them to choose their own neighborhood, street or area, but if they need us to choose for them, we can do that as well,” Keenon said.

The busiest -- and,

consequently, most heavilylittered -- streets are covered by Gregg County juvenile offenders, giving Phillips’ “knuckleheads” the opportunity to put their community service hours to good use.

Also, “We’ve had a lot of groups sign up from the school,” said Beth Allen, KIBA’s representative from Kilgore ISD. But more are welcome, and needed, if the event is to make a dent in the everpresent litter problem.

“You know we’ve been doing it a long time,” Phillips said. “The only thing I don’t like about it is about two weeks later I'll be riding around, see something on the side of the road, and think, ‘Gee whiz, we just cleaned this up.’"

To sign up, whether for a specific road or for an assignment, contact Krantz at 903-984-3300.

KEEPING THINGS AFLOAT: May 23, 2012

City notes compliance of all HOT contractors

July 18, 2012

Tourism director notes high volume during second quarter

July 18, 2012

Chamber president proposes relocating offices

With more background in hand, and with Kilgore Chamber of Commerce President Mike Coston finally responding to information requests, the News Herald continued to cover his organization’s usage of Hotel Occupancy Tax revenues and other activities to ensure the chamber’s renewed compliance continued.

+

WEDNESDAY, MAY 23, 2012

KILGORE NEWS HERALD 1 SECTION, 12 PAGES

INSIDE

VOL. 81, NO. 41

AMERICA’S NO. 1 SMALL CITY

CAPITAL OF THE EAST TEXAS OIL FIELD

Local GTBR event set July 25

SHOPPING SMART: Look inside for money-saving specials from Atwoods, Bass Pro Center, Bealls, Char-Burger Stockade, Johnny’s Ozark Fried Chicken, Longview-Kilgore Cable TV and WalMart.

The nets won't be necessary July 25 on the practice soccer field at Kilgore High School – competitors will be shooting for a different goal

Facebook:

Twitter:

KilgoreNews

50 CENTS

Balloon racers set sights on Kilgore targets

SPORTS: A Laird Hill man caught a bass – and a new truck and a new boat as a result.

See Page 12

Kilgore News Herald

KILGORENEWSHERALD.COM

By JAMES DRAPER news1@kilgorenewsherald.com

Beginning with a master briefing on Monday, July 23, 52 pilots will fly over Longview during the first day of racing Tuesday then launch in Kilgore Wednesday morning on a track of multiple bulls-eyes spread throughout the area, with the high school field listed

altogether, aiming low.

Or, rather, straight down.

That's the plan right now as Kilgore's portion of the U.S. National Championship races during the Great Texas Balloon Race takes shape.

as an ideal target.

Dr. Bill Bussey, a Longview dentist and veteran hot air balloon pilot, is also one of the original GTBR competitors and organizers.

With a racing drop at the soccer field – whether the first target, the fifth or inbetween – Kilgore residents

will see the skies dotted with balloons on a beeline for a score, he said.

"I don't know the direction or where they'll launch or anything. It's based on wind direction and wind speed and target layout," See BALLOONS, Page 3

KILGOROUND BILL WOODALL

+

EARLY VOTING IN the party primaries ends Friday. Gregg Countians vote through Friday from 8 a.m. until 6 p.m. at the community centers in Kilgore, Liberty City and Elderville. Rusk County voters vote at the county substation on Peterson Rd. • WE SELDOM PARTY in Henderson, but we wandered into what felt like a huge class reunion there Saturday night.

GUESTS of Billy Bob and Nita Brady, HHS grads before they moved to Kilgore, we attended a reunion of The Travlers (that’s how they spelled it on a 1960s-vintage poster), a local band popular in Kilgore-Henderson-Longview 45 years ago.

THE Travelers were from Henderson but they played around East Texas back in the day when every town had a teen dance club. In Kilgore, Fat City filled that role and The Travelers played here on more than one occasion during the ‘60s.

THE band, which swelled to as many as 10 on songs that called for brass instruments, packed Henderson’s Civic Center. The place was wall-to-wall with revelers, most of us with graying (or gone) hair.

Dancing was all-but impossible during those songs that brought back memories of hold-herSee KILGOROUND, Page 4

+

Sabine ISD revisits bond for construction

By AUSTIN KING news2@kilgorenewsherald.com

Three years ago, Sabine ISD voters turned down a $20 million bond proposal that would have – among other items – funded construction of a new elementary school.

Replacement of the aging, and a 2012-13 budget workshop, were on

the agenda at Monday night’s SISD board meeting.

The 2009 bond proposal sought voter permission to borrow $20 million for a new elementary school and renovations to other district facilities. The elementary school alone would have cost approximately $15.8 million.

This plan called for issuing bonds

with a 30-year payback. The debt service would have cost taxpayers an addition 40 cents per $100 evaluation; it would have brought the total tax rate to $1.44.

The bond was eventually rejected by voters, 1,086 against and 625 for.

This new proposal once again calls See SABINE BOND, Page 3

See PUMP JACKS, Page 7

See HOT REPORTS, Page 7

Jose Ortiz works at the Kilgore City Pool Tuesday morning, preparing the wet escape for Saturday’s kickoff crowds at Splash Day.

By AUSTIN KING news2@kilgorenewsherald.com

Last Tuesday, Deaundray Lamanze Rossum, 23, was shot to death in the driving seat of his vehicle – he was raised in Kilgore along with Brendan Xavier Douglas, 22, who was reportedly at the scene of Rossum’s death.

Rossum and Douglas had been

NEWS HERALD photo by AUSTIN KING

See SHOOTING, Page 5

news2@kilgorenewsherald.com

8 9 4 9 4 11-12

The East Texas Pump Jacks collegiate baseball team provides inexpensive, family friendly entertainment.

The team also offers job opportunities and provides work experiences most Applicants sign up to become Pump Jacks staff members Monday afternoon.

NEWS HERALD photo by AUSTIN KING

903-983-1494 1201 Stone St. • Kilgore, TX www.walmart.com

903.984.2006 1615 Hwy. 259 N., Kilgore, TX 75662

East Texas Hardware

1111 N. Kilgore St., Kilgore, TX • 903-984-2036

+

By JAMES DRAPER news1@kilgorenewsherald.com

other job will never provide.

Sunday and Monday, East Texas Pump Jacks and partner Ballpark Concessions hosted a job fair at the Kilgore Chamber of Commerce. Residents of Kilgore, particularly the young, gathered in search of a new job.

The ballpark staff hopefuls were required to fill out an application, and then applicants were called in for a

Shooting suspect jailed after separate incident

By AUSTIN KING

City notes compliance of all HOT contractors After a two-week delay due to tax season, the City of Kilgore has all four quarterly reports from the various organizations that receive portions of Hotel Occupancy Tax revenues.

The tourism tax – collected through an additional seven percent charge on local rented rooms – has already netted $207,381 in Fiscal Year 2012, October through April, almost 73 percent of the anticipated haul.

"We're seven months into it," Kilgore Finance Director Lawanna Williams explained, and ahead of schedule. "We should be at 58 percent if everything comes in flatline."

Revenues from the eight hotels and motels operating in the city limit typically exceed the city's budgeted amount – $342,780.72 compared to an anticipated $275,000 in FY2011 – and Williams expects an even larger return during the last

Pump Jacks recruit new faces for summer games at Driller Park

INDEX Classified Crossword Daily Digest Horoscope Obituaries Sports

COURTESY photo by ARTWORKBYAARONMAY.COM

Former Kilgore News Herald photographer Aaron May, working on a Kilgore Historical Preservation Foundation photo project, scaled Citizen's Bank last weekend and caught a shot of East Texans' perspective on Sunday's partial solar eclipse.

CMYK

www.kilgoreford.com

LOCAL

WEDNESDAY, MAY 23, 2012

KILGORE NEWS HERALD ◆ PAGE 7

HOT REPORTS Continued from Page 1

NEWS HERALD photo by AUSTIN KING

Young men apply for a spot on the East Texas Pump Jacks staff during a job fair Monday at the Kilgore Chamber of Commerce.

PUMP JACKS Continued from Page 1

short interview. The lucky few deemed Pump Jacks material will work home games this upcoming Texas Collegiate League season.

Applicants will fill many of the-often overlooked but necessary jobs for any sports team, such as ticket and merchandise sales or concessions. Becoming a mascot is also a possibility.

Those who applied to work for the Pump Jacks also had the opportunity to try out for the promotions team, which helps promote the organization in the community and at events over the summer and in some cases during the offseason. Promo team employees have the ben- To find out more efit of higher pay and job experience working about the Pump Jacks in public relations.

This is the fifth season for the East Texas Pump Jacks. In its short history, the organization has been quite successful in its league and in helping players move on to the next level.

Snap the CODeZ As always, a fireworks show will happen af- or log on to ter every Friday home game. Other events pumpjacksbaseball.com and promotions are scheduled as well, such as “Field of Dreams,” in which youth baseball players run onto the field alongside Pump Jack players who share their position.

The team’s first game is Friday, June 1 at McKinney against the McKinney Marshals. The first home game is Wednesday, June 6 at Driller Park.

For more information about the East Texas Pump Jacks, visit the organization’s website: pumpjacksbaseball.com.

KHS alum graduates basic training Air Force Airman Robert T. McIntosh graduated from basic military training at Lackland Air Force Base, San Antonio.

The airman completed an intensive, eight-week program that included training in military discipline and studies, Air Force core values, physical fitness, and basic warfare principles and skills.

Airmen who complete basic training earn four credits toward an associate in applied science degree through the Community College of the Air Force.

McIntosh, a 2009 graduate of Kilgore High School. is the son of Tanya Barnes.

five months of the city's budget year.

"Usually your summer months are a little bit bigger than your winter months."

The organizations' most recent quarterly reports, itemizing approved tourism-related expenses according to contractual agreements with the city, cover January through March.

In addition to documents from the Kilgore Main Street Program, Texas Shakespeare Festival and Kilgore Historical Preservation Foundation, the stack includes a list of expenditures from the Kilgore Chamber of Commerce – reporting there had lapsed according to the city's requirements.

"I think it was more of a misunderstanding in how the reports were presented in the past," chamber president Mike Coston said. "We always provided the reports, but there was a change in the way that they wanted the reports to look like.

"Our challenge over the last couple of months was being able to communicate – both parties to communicate – well enough to provide exactly a format that they felt comfortable with."

According to Coston, in various meetings including City Manager Scott Sellers, chamber chairman Alvin Khoury, city council member Harvey McClendon, Mayor Ronnie Spradlin, Williams and chamber staff, the group went through several different reporting formats before reaching a consensus.

"It just took us a while to get on the same page – it was just a lack of communication between the two entities (city and chamber) on what they wanted and what we were giving them."

As opposed to the chamber's previous reports – unitemized, grouping possible expenditures into broad categories with supporting documentation – the latest document was turned into the city on time, Williams said, correctly, a complete 180-degree turn after long delays and unsatisfactory summaries.

The numbers add up and fulfill the organization's contractual reporting requirements, she noted.

"I'm ecstatic that they finally put it in a format that is actually tied to their books, that is tied to the checks that they write," Williams said. "I

feel like we have something that they can balance to, and we can see where they got their numbers."

Sellers echoed the positive change.

"The chamber's summary report of hotel occupancy tax expenditures correllates the supporting documents submitted to the city this month, including an itemization of all expenses," he said.

During budget discussions this summer, the Kilgore City Council will be open to requests from the four organizations (and others that step forward) for allocation in Fiscal Year 2013.

The state levies its own six percent tax on rented rooms and defines the ways the monies raised locally can be allocated and spent.

In Kilgore, benefitting organizations approved by the city council are tasked with putting 'heads in beds' back at the inns by funding programs that advance the arts, supporting historical restoration or preservation, covering administrative expenses and certain operational costs, establishing and maintaining a convention or events center or promoting tourism through marketing and advertising.

In the second quarter, the hotels turned over $69,053.56 in collections followed by $39,897 in April.

The chamber, allocated a maximum of 68.42 percent of all budgeted collections in FY2012 ($285,000) drew $74,544.57 during those four months; KHPF and TSF each received total disbursements of $13,379.24 (allocated 12.28 percent each, up to $35,000 during the year) and Main Street, budgeted 20 percent this year (up to $20,000), netted $7,648.39.

During the same period, at the request of Kilgore College President Bill Holda, the city council also made a one-time allocation of $25,000 to the East Texas Oil Museum plus $15,000 to Rangerette Revels.

The college submitted its second quarter report on TSF in April along with a voluntary report on the Rangerettes' HOT expenses.

According to Leah Gorman, KC director of development, TSF utilized $23,327.39 during the quarter, dividing it between auditions ($3,141.73), production ($1,306.76), an acting workshop

($285), contracted services ($18,550) and miscellaneous expenditures of $43.90. In addition to an itemized breakdown of the various expenses, the college also included associated receipts.

Expenses for Revels funded some of the production's costumes, recording, set decorations and other expenditures, utilizing all $15,000 of the allocation. The East Texas Oil Museum has not yet expended its $25,000 while further-developing a plan for a digital docent program at the facility.

In the first quarter, the chamber used its HOT money for administrative expenses, utilities, rent, office supplies, tourism and promotional expenses.

The Chamber of Commerce covered a portion of its salaries, in addition to contract labor (chamber ambassadors staff the building’s front office on Saturday mornings), at $21,633.53. Funding a portion of its office phones, cell phones, power, cable TV and Internet service cost $2,016.77 in addition to $420 of total rent and $1,945.12 for supplies and equipment.

After administrative costs, the largest portion of the chamber's HOT expenditures covered tourism expenses, $8,397.59 for conventions and seminars, bills related to winter events, tourism development and travel shows.

Factoring in a carryover balance of $67,826.66 and reporting expenses of $40,402.84 against disbursements from the city, accrued interest on unused HOT funds and reimbursements, the chamber closed the period with $75,006.87 in unused HOT money.

According to the city's records, Main Street's HOT money funded parts of various expenses totalling $13,287.83 (supplemented by the program's annual budget) paying off Christmas lighting installation from winter 2011, advertising and Fridays After 5 concert expenses.

Accounting for $72.48 in accrued interest on its carried-over HOT money of $57,984.48, in the second quarter KHPF principally used its HOT revenues to fund repairs and supplies for the memorial derricks in addition to utility bills to keep them lit, closing the period with a balance of $48,295.82.

LOCAL

KILGORE NEWS HERALD ◆ PAGE 2

WEDNESDAY, JULY 18, 2012

Tourism director notes high volume during second quarter

By JAMES DRAPER news1@kilgorenewsherald.com

Visiting City Hall and several other organizations in the past week, Kilgore Chamber of Commerce Tourism Director Carol Hinton is reporting healthy numbers for local tourism attractions and activities with more on tap.

She told Kilgore City council members last week “2012 continues to be a busy year.” She offered her analysis of local groups’ activities to the chamber’s board of directors Monday as well as the Kilgore Historical Preservation Foundation board. “The chamber and visitors bureau has experienced a large influx of summer visitors to our office.”

In the second quarter of 2012, the East Texas Oil Museum and Rangerette Showcase reported 6,385 and 6,434 visitors respec-

tively – school groups account for a large volume of the attendees, she noted, but the showcase also reported visitors from Germany, Russia, France and a handful of states.

“Rangerette Revels performed to a sold-out crowd” in April, she said. “The Revels and (Rangerette) camps brought business to our hotels and restaurants.”

Likewise, the chamber’s annual Taste, Trade & Music Fest drew more than 1,500 patrons, the Spring Film Festival at 4 Star Cinema brought many out-of-town movie fans, KHPF’s Derrick Stars concerts drew crowds downtown, the Kilgore Main Street Program’s Fridays After 5 concerts are ongoing and its Retro Retail Sidewalk Sale saw a large turnout in late April.

“This was a great opportunity to visit our downtown stores and res-

taurants.”

The next big event in town is the Kilgore Balloon Extravaganza, Hinton said. Set from 6:30 p.m. to 9:30 July 25 on Commerce Street, more than 50 balloon pilots and their crews will end their local race day (flying over Kilgore in the morning in a U.S. Nationals competition) with dinner at the World’s Richest Acre. In addition to live music from Shake, Rattle & Roll, the free, public event includes a synchronized balloon burn at 9:15 followed by a helium balloon release.

Gift and food vendors will be on hand as well, she added.

“Don’t forget to wake up early on Wednesday and Thursday of that week and watch the skies over Kilgore. There should be many balloonists attempting to make a target located in six different areas in and around Kilgore” includ-

ing the Kilgore High School soccer practice field and perhaps the parking lot of First Baptist Church and Driller Park, Hinton said.

“The downtown merchants have gotten involved as well as our restaurants.”

The Texas Shakespeare Festival and East Texas Pump Jacks baseball season are also underway, she said, with plays through the end of July and games scheduled into August.

“We continue to host many reunions and weddings. We get many calls at the visitors bureau asking for venues for these events,” Hinton added. “Many groups have visited Kilgore in the past quarter – they almost always visit the museums and have at least one meal at our restaurants.”

Kilgore also hosted multiple conferences in the second quarter, she said, including the National

Association of Chamber Ambassadors, which logged an estimated $10,000 in local hotel room stays and $8,000 in catering.

In the meantime, Hinton completed her second of three years at the Texas Travel Industry Association’s Business Travel and Tourism College, a five-day program featuring speakers on various aspects of the industry.

“An important fact that was stressed over and over again during the week was giving our visitors an experience – visitors want to experience things they can’t get at home,” she explained. Adding to those experiences and encouraging local tourism is a key goal of the chamber, Hinton added, which is supported by almost $200,000 of Hotel Occupancy Tax revenues.

“We feel the chamber of commerce and visitors bureau makes good use of our HOT funds.”

One injured in rollover wreck on Stone Road

By AUSTIN KING news2@kilgorenewsherald.com

A wreck Monday morning sent the only vehicle involved flying for just over 100 ft.

A silver Dodge Challenger was traveling westbound on Stone Road when it reportedly veered off the road and struck a culvert. The vehicle then went airborne and traveled 101 ft. before striking an embankment, nose first. The vehicle flipped over onto its roof.

A 9-1-1 call was received at about 11:06 a.m. The driver and single occupant, Josh Bolding, was trapped inside when emergency responders arrived. Kilgore Fire Department, Rescue and Champion EMS removed Bolding from the vehicle.

Kilgore Police Department Chief Todd Hunter reported that Bolding sustained several injuries, and was escorted to Good Shepherd Hospital in Longview.

Officer Carolyn Wink is investigating the accident.

Sign up for instant updates at kilgorenewsherald.com

NEWS HERALD photo by JAMES DRAPER

Kilgore Rotary Club President Bob Castor visits with former president and district governor Steve Brown during the group's weekly meeting July 18 – Brown extolled Rotary International President Sakuji Tanaka's vision of "Peace through Service in 2012-2013 and encouraged the local Rotarians to increase their visibility and service in Kilgore.

'We are Rotarians'

By JAMES DRAPER

news1@kilgorenewsherald.com

Steve Brown was first a Rotary Club president before serving as Assistant District Governor for three years then as District Governor.

Through all those years, Brown said, Kilgore’s chapter is still utmost in his mind.

“There’s not a finer Rotary Club in our district,” he said. “We’ve got a lot of projects going on, we contribute to many causes, we’re a model Rotary Club.”

Dropping by last week to encourage his fellow club members as they start their year, Brown congratulated past president Sandra Scalco for her efforts on the club’s behalf and praised new club president Bob Castor and the board he’s recruited for the coming year.

“I believe he will extend that pathway that others have laid and to greater lengths than we’ve seen,” Brown said.

“He bent my ear for hours with all of his ideas.”

The club’s new leadership includes: Patrick Brown (president-elect), Bob

Miracle (secretary), Keith Hooks (treasurer), Paul Peery (sergeant-at-arms), Paige Brewer (club administration), Patty Bell (public relations), John Lockman (service projects), Bob Martin (membership), Melvin Jordan (Rotary Foundation), Jerry Camp (program chairman), John Whitehead (song leader) and chaplain Jayson Galler.

“We are Rotarians,” Brown said, and as such are tasked with several responsibilities: to make a difference, to honor commitments, to be dependable and trustworthy, to improve the quality of life for people in the local community and millions around the world and to be proud of the Kilgore Rotary Club.

Rotarians must be involved in the local club, Brown said, finding ways to help, learning new ideas, expressing their own and experiencing new things.

“Please remember, you’re never too small or insignificant to make a difference.”

Brown underscored Castor’s goal that each Kilgore Rotarian this year should donate $100 to the Rotary Foundation – “Giving to the Rotary Foundation has to be a high priority. How else can

KISD Corner

we have an impact on so many people in so many corners of the world?”

And the Rotarians should strive to make their club more relevant in Kilgore.

“Believe it or not, people don’t know what Rotary is. They see a sign at the entrance of our city – ‘This is where Rotary goes to lunch,’” he explained.

But the club is much more. “We are the longest and oldest service organization in the world. Let’s be proud of it.

Later in the weekly meeting, Dr. Charles Whiteside announced the most recent news in the international organization’s ongoing campaign to eradicate polio.

“India, the second-largest nation in the world is now polio-free thanks to Rotarians,” he said. “Y’all did it.”

“Please remember, you’re never too small or insignificant to make a difference.”

Steve Brown

By Superintendent Jody Clements

Working in the trenches

In a story in today’s paper you will notice that we are recognizing the winners of our teacher awards for the 2011-2012 school year. I do want to give a little insight to what these teachers do each and every day. Teaching is one of the most difficult jobs that anyone can do. The requirements and responsibilities put on each classroom teacher are overwhelming. I will express some of that through an e-mail I received last week that sums it up. I want to thank all of the teachers of KISD for their hard work and dedication to the students of Kilgore and congratulate those that are being rewarded for being at the top of their trade.

After being interviewed by the school administration, the prospective teacher said: ‘Let me see if I’ve got this right.

‘You want me to go into that room with all those kids, correct their disruptive behavior, observe them for signs of abuse, monitor their dress habits, censor their T-shirt messages, and instill in them a love for learning.

‘You want me to check their backpacks for weapons, wage war on drugs and sexually transmitted diseases, and raise their sense of self esteem and personal pride.

‘You want me to teach them patriotism and good citizenship, sportsmanship and fair play, and how to register to vote, balance a checkbook, and apply for a job.

‘You want me to check their heads for lice, recognize signs of antisocial behavior, and make sure that they all pass the final exams.’

You also want me to provide them with an equal education regardless of their handicaps, and communicate regularly with their parents in English, Spanish or any other language, by letter, telephone, newsletter, and report card.

‘You want me to do all this with a piece of chalk, a blackboard, a bulletin board, a few books, a big smile, and a starting salary that qualifies me for food stamps.

‘You want me to do all this, and then you tell me.......

I CAN’T PRAY? Just some perspective. Have a great week.

LOCAL

KILGORE NEWS HERALD ◆ PAGE 8

WEDNESDAY, JULY 18, 2012

Chamber president proposes relocating offices

By JAMES DRAPER

news1@kilgorenewsherald.com

The Kilgore Chamber of Commerce is considering expanding into a new location but must first determine whether the move is financially feasible.

According to chamber president Mike Coston, the organization is in need of more office and meeting space than the current facility adjoining City Hall provides.

“One of the reasons we want to move is to have a visitors center in the front, chamber offices in the back,” he told his board of directors during their monthly meeting Monday in the chamber conference room.

The visitors area of the chamber officers currently occupies the front lobby. Also, chamber tourism director Carol Hinton needs dedicated office space, Coston explained later – currently, she works out of a multipurpose room linked to the front office. Likewise, the chamber ambassadors will be better served with an office for the program’s chairman.

Where to move and whether it’s

HELIPAD

worth taking on a larger expense than the organization’s current $150 per month deal with the city is still being debated.

“As we kind of looked around we discovered that the old City Hall building down the street, built in 1931, is available,” he suggested. “It is where the chamber started.”

The 13,300 square-foot building at 325 N. Kilgore St. once housed city offices, jail facilities and the municipal court, the fire station and city marshal’s office.

In talks with building owners Mike and Jennifer Brown, Coston said he learned the current tenant – the High Maintenance Spalon – is paying about $1,000 per month in rent.

“I’m just throwing that out there before I do any more research,” he said.

“I’d like to see some numbers” on how the chamber could fund the low-end estimate of $350,000 for the property, board member Bill Mishkind said.

Board chairman Alvin Khoury appointed Dr. Charles Whiteside, a

Continued from Page 1

Kilgore Chamber of Commerce, Khoury on Monday proposed the organization create a task force to research the possibility of helping the facility install a new landing pad for care flights.

“The chamber is always on the lookout for things we can do to help the community,” Khoury said. “We ought to have the ability to go out in the public and say, ‘This is what we want to do, this is something the Kilgore chamber and the community of Kilgore want to do to make sure we have adequate care in the City of Kilgore.’”

“Something where time is absolutely of the essence to try and save that person.”

After discussing helicopter service with the ER’s medical director, Dr. Craig Meeks, during the facility’s opening reception, Khoury said ensuing thoughts to restore and expand the existing pad for about $63,000 were quicklyquashed, Khoury reported.

“Because of the size of the modern hospital-type careflight helicopters, they can’t land in there,” he explained.

The helipad is also surrounded by nearby safety railings blocking a steep drop-off from the parking lot. “That is absolutely out as a place to put the helipad.

One contractor’s initial estimate for building a new helipad in one of two grassy areas near the ER’s entrance came back at almost $150,000, Khoury noted.

“When I saw that figure, I said, ‘Something’s not right.’

I thought we should find someone else in the area who could undertake the project that’s within our means of assistance,” he said. KSA Engineers’ aviation division out of McKinney, which recently installed a similar-sized helipad at the Mt. Pleasant airport, offered a general estimate of $60,000. “How much of that we should assist with is something I’d like to have a task force on before making a decision.

“If it saves one life, dollars aren’t important. That’s the way I look at this project.”

According to Kilgore Police Chief Todd Hunter, care flights are currently using R.E. St. John Memorial Stadium as an improvised landing zone.

“We’re having to utilize the rescue group to put a landing area out” when a situation warrants it, he told the board.

“I know of two children that have left going to Children’s in Dallas and three others.”

Running flights directly from the hospital, rather than transporting patients to the stadium, could save precious moments – “You’ve got some time that you could cut off by having that. It is already being utilized.”

Board member Bill Mishkind questioned whether Good Shepherd is on board with the idea.

“Are they going to run a helicopter service for the occasional situation that they need to send someone to Dallas?”

Good Shepherd Medical Center CEO Ed Banos could not be reached for comment before press time to discuss the possibility of the local ER investing in a helipad at the facility.

Dr. Bill Holda, Kilgore College president and member of both the chamber and GSMC’s boards, said the hospital originally projected 20-30 patients after re-opening the ER following such a long time without emergency service.

“Right now, they’re running 40 or 50 a day. They’re on track to having 13,000 running through that ER every year,” he explained. “They’re already exceeding projections to go above what it was. There’s already a definite need – I would expect the helicopter traffic would pick up significantly if that keeps going at the rate it is.”

Ultimately, Holda moved the chamber board approve the creation of the task force with no objection from other board members.

“I call this the exploratory stage of the process,” Khoury concluded. “I’m optimistic.”

committee chair, to study the idea further.

“That’s a lot of money we’re talking about expending when we’re paying $150 a month rent where we are,” Khoury said.

“How much are we paying?”

Mishkind asked. “And you want to move to a $350,000 building? All you’re doing is increasing (space) four-fold or five-fold.”

“They can make the study and take the necessary time” before reporting back, Khoury said, anticipating a follow-up in the fall.

During the meeting, treasurer Jo Ann Maxwell updated the board on the organization’s finances – the chamber has $161,270.41 in checking and savings accounts, total assets of $186,096.75 and $12,705.39 in the economic development restricted account.

Total income for June was $37,694.39, Maxwell reported, with expenses totaling $36,016.16.

“For the month of June we did good,” she said.

In his report on chamber membership, Coston said the organiza-

tion dropped 47 members since February. Of that group, 25 were non-paying elected officials. Among the remaining 22, three were taken off the rolls due to a death and two illnesses, he said, and three corporate members did not renew.

“12 business said they could not afford (dues), they saw no use in the chamber or could not be involved,” he noted.

However, said Coston, the $4,290 loss in dues (from the 22 regular members) is more than covered by 24 new members added since Feb. 1 at $4,485 – “The staff recruited nine of those members and the ambassadors recruited 15.”

“We did not lose any income dropping certain elected officials because they were not paying anything to start with,” Khoury noted.

In other business: • Coston updated the board on the status of the organization’s audit by Brown, Bronstad, Habenicht and Rosson.

The audit is all-but-finished, Coston said, and he plans to present it to the board during their meeting

in August.

Meanwhile, he added, the chamber’s projected budget for Hotel Occupancy Tax expenses is ready as is its quarterly report on HOT expenditures from April to June.

• Committee chair Dawn Rader reported on ambassador activities – the group is assisting with the balloon race event and has plans in motion for Kilgore Ladies Night Out. Ambassadors logged 96 volunteer hours in June, she said, bring the year’s to-date total to 705 hours.

• Past board chair Donna Beets said the organization is investing in bumper stickers promoting the Keep It In Kilgore program, aiming to put the decals on all city vehicles except public safety vehicles.

“We thought we’d order extras for anybody that would like to have some bumper stickers.”

• Education committee chair Patrick Brown reported on the developing Leadership Kilgore program for the coming year – 12 professionals have signed up for the class in addition to eight high school students set to participate.

RIPPLES: March 17, 2012

City on the outs with two inns

April 11, 2012

Hotel tax collections up mid-year

August 1, 2012

City nears HOT goal three months early Covering the City of Kilgore’s Hotel Occupancy Tax program involved more elements than the chamber of commerce’s fund usage – the News Herald tracked the city’s collection of the funds from local hotels (and its closer inspection of non-compliant inns) as the revenues continued to fill the city’s coffers for distribution to put ‘heads in beds.’

+

SATURDAY, MARCH 17, 2012

KILGORE NEWS HERALD 3 SECTIONS, 28 PAGES

VOL. 81, NO. 22

AMERICA’S NO. 1 SMALL CITY

CAPITAL OF THE EAST TEXAS OIL FIELD

KILGORENEWSHERALD.COM

50 CENTS

City on the outs with two inns Hotels neglect $16,400 of HOT payments

By JAMES DRAPER news1@kilgorenewsherald.com

Guests pay a 13 percent Hotel Occupancy Tax on local rented rooms.

Hotels and motels collect the tax, hold it in trust temporarily and

pass six percent on to the state, the rest to the City of Kilgore.

The city allocates its share of the tax revenues at its discretion.

Local tourism-focused groups expend and report their investment of the money in putting

more heads in beds at the hotels and motels.

At least, that's how it's supposed to happen.

There's a disconnect in the cycle right now between the City of Kilgore and two hotels, to the tune of

nance director) Lawanna Williams and I had been working here lately on two entities who are behind, really a lot behind, in payment of the Hotel Occupancy Taxes."

A prior audit found three of the city's eight hotels and motels were delinquent. Currently, Schleier told the city council, the Delux

$16,400, with the looming possibility of a operations-injunction or criminal charges.

"The Hotel Occupancy Tax is in the news a lot here lately," Kilgore City Attorney Rob Schleier said Tuesday, referring to the city's ongoing efforts to bring the Kilgore Chamber of Commerce into compliance with HOT reporting guidelines. "Coincidentally, (fi-

See HOT MONEY, Page X

Rusk Co. constable indicted for drugs, firearms

INSIDE SPORTS: Kilgore baseball team gets 4-3 win at Pine Tree; Sabine girls now 4-0 in district play.

See Page 8A SHOPPING SMART: Look inside for money-saving specials from Conaway Homes, CVS Pharmacy, J.C. Penney, East Texas Professional Credit Union and Walgreens.

Facebook:

Twitter:

Kilgore News Herald

KilgoreNews

KILGOROUND BILL WOODALL NEWS HERALD photo by JAMES DRAPER

+

YOUR SPRING BREAK was this week; you left town and you enjoyed it.

DR. Joey DeGraffenried – with a group of fellow dentists – is headed out of town next week. The group is going to Belize; there they will spend the week providing free dental care to folks who can’t afford to visit a dentist.

THOUGH mission is important, Dr. Joey, as his staff calls him, is also looking forward to the spicy local food. He swears he’s even eaten – though he did not say enjoyed – the Belize (Belizian?) delicacy, chicken feet.

• THE DAILY Digest is still a critical component of the Kilgore News Herald; a similar column runs in virtually every newspaper on the planet and it’s a valuable reminder of coming events.

BUT not everyone on the planet reads the printSee KILGOROUND, Page 4A

INDEX Classified Crossword Daily Digest Horoscope Obituaries Sports

Kilgore police officers and other law enforcement discuss the pursuit of a suspect who fled a routine traffic stop into a wooded area before he was captured and taken into custody.

Suspect flees, nabbed quickly

By AUSTIN KING news2@kilgorenewsherald.com

A Tyler man hiding from an arrest warrant fled on foot – briefly – from Kilgore Police officers Wednesday afternoon.

Jerry Warren Boghue, 42, of Tyler, was caught by KPD after

about an hour in the woods. Officers from Kilgore, Department of Public Safety, Gregg County K9 Unit and Kilgore College police were all involved.

KPD Lt. Tony Stone reported that patrol officer DeeAnn Brown noticed a 2007 GMC Sierra parked behind the Kilgore Day’s Inn. Suspicious,

TYLER - Benjamin Thomas Ferrell, the current Rusk County Precinct 2 Constable, has been charged with federal drug and firearms violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales Thursday.

Ferrell, 36, of Henderson, was indicted on Mar. 8, 2012 and charged with conspiracy to possess with intent to distribute controlled substances and delivery of a firearm to a convicted felon.

See CONSTABLE, Page 5A

INSIDE +

Brown ran the vehicle’s license plate for prior warrants. KPD Captain Roman Roberson reported that the report came in at about 12:33.

“The owner comes back – wanted,” said Stone. “He bolts and runs.

It turns out the female (passenger)

New London Explosion

See FUGITIVE, Page 5A

75 Years Later

City seeks new volunteers for numerous tasks

KC’s Holda requests extra tourism funds for museum, Revels

By AUSTIN KING

news1@kilgorenewsherald.com

By JAMES DRAPER

news2@kilgorenewsherald.com

Under the supervision of Deputy City Clerk Karen Custer and City Manager Scott Sellers, a new program allows local citizens to get involved with the city and get a bit of experience working.

“There are people in our community looking for work COURTESY PHOTO

John Edney and grandson Cason Doyle Edney till the garden Tuesday, getting it ready for planting peas and beans.

See VOLUNTEERS, Page 5A

Four local organizations share the majority of the city's Hotel Occupancy Tax revenues each year, but – in budgeting conservatively – Kilgore typically collects tens of thousands of dollars more than it allocates for tourism investment.

Last year, the city projected revenues of $275,000 See REQUEST, Page 3A

Victory assured, council candidates discuss coming term 6-7B 3b 4A 3B 4A 8A

By JAMES DRAPER news1@kilgorenewsherald.com

Housing is at the top of both Bobby Hale and Sherry Bustin's to-do list for their coming term on the Kilgore City Council.

There were no contenders challenging him this election season, so Hale retains his Place 4 seat for

a second term. With council member Randy Renshaw ending his tenure on the dais and only Bustin filing for Place 1 by March 5, the Allegiance Specialty Hospital CEO also gets a by and will take the oath of office along with Hale on May 15.

While incumbent Neil Barr and challenger Tristan Roberts will

spend the rest of the spring campaigning for Place 3, Hale and Bustin have some time to think about their next two years on the council.

"I would really like to see that we continue our road to providing more homes in Kilgore," Hale said See COUNCIL, Page 6A

Bobby Hale

Sherry Bustin

Re-Elected to Place 4

Place 1-Elect

903.984.2006 1615 Hwy. 259 N. • Kilgore, TX 75662 www.kilgoreford.com

903-983-1494 1201 Stone St. • Kilgore, TX www.walmart.com

East Texas Hardware

1111 N. Kilgore St., Kilgore, TX • 903-984-2036

+

CMYK

LOCAL

SATURDAY, MARCH 17, 2012

KILGORE NEWS HERALD ◆ PAGE 3A

Council approves agreement for sale of wastewater

By JAMES DRAPER news1@kilgorenewsherald.com

Kilgore's wastewater isn't worth its weight in gold, but the treated effluent is set to turn a profit for the city in the future.

During their regular meeting Tuesday night, the Kilgore City Council unanimously approved an agreement with Alpha Reclaim Technology, LLC, for the sale of treated wastewater – up to 1.5 million gallons per day at $1.67 per thousand gallons.

The council also hosted the first public hearing on the 'Rusk County' annexation, discussed Hotel Occupancy Tax (see separate stories in this issue) and approved new rules for storing explosives.

Under its initial five-year agreement with Alpha (with an optional five-year extension) the city will reap at least $4,571.63 annually in addition to the proceeds from selling effluent to the company, which is building transport infrastructure to pipe treated wastewater to oilfield companies for use in fracking wells.

"Through prior written agreement with Alpha we would be able to use our effluent for any other use" if necessary, City Manager Scott Sellers explained.

"Do we have any response from TCEQ about doing this?" council member Harvey McClendon asked.

During a previous discussion of the proposal, McClendon voiced his concern about 1.5 millions gallons per day not being returned to the Sabine River, piped instead out of Kilgore.

Water Superintendent David Hackley said officials from the Texas Commission on Environmental Quality approve of the agreement, which includes a stipulation that the city and Alpha together obtain a Reclaimed Water Authorization from the agency.

"They're fine with everything. The main issue they had right now was the 30-day notice" that the water would be drawn, Hackley said.

"They already have the method in place for re-use. Re-using it for fracking is new to them."

"Any conversations about the im-

pact?" McClendon asked. "Downstream?"

There wasn't a concern, Hackley said.

"There are no issues as far as environmental flows," he explained.

"They don't have any problems with us not putting the water back in the Sabine River."

If that becomes a problem, Alpha representative Marsha Holt said, the company is certainly willing to alter the amount of water it takes.

"There are several ways of getting out of this should the city need the water for other uses," she said.

A handful of Baughman Road-area residents attended Tuesday's meeting to ask questions during the first of two requisite public hearings on the city's proposed annexation of 217 acres to be used for the construction of Kilgore ISDs new middle school and elementary campuses, along with nearby streets, on East Beckley Road and Hwy.. 259.

Zoning, roads and regulations dominated the resident's questions.

"Everything will brought in with a

Continued from Page 1A

HOT MONEY Inn and Manor Inn (formerly Ramada Inn) are still delinquent, behind by $14,000 and $2,400 respectively.

Neither hotel's owners were present at the council's meeting Tuesday, nor could they be reached for comment this week.

"To me, the main problem with this, this is not a tax on the hotels," Schleier pointed out.

"This is not money that comes from their bottom line, this is a tax on the people that occupy the hotels.

"All the hotel operator is supposed to do is collect that tax from those people and remit it to the State of Texas and the City of Kilgore."

In fact, he noted, the two hotels have paid the state's six-part portion but have essentially ignored the city's demands for its share – at one point, the City of Kilgore had reached an agreement with Manor Inn to help the hotel become compliant in turning over its collections.

Since then, the hotel is up-to-date on its current collection payments, but made only sporadic payments on its audited debt.

Those payments have basically ceased.

"They had a year," Williams added. "They made three of the 12 payments."

Delux Inn is much further in arrears. The

operators have not given the city its share of HOT collections since the third quarter of 2010 and is also behind on the audit obligations.

Usually, similar situations can be resolved with a demand letter, Schleier said.

"The purpose of my coming here tonight: We have sent out letters; they didn't help," he explained. "We're just asking for a little guidance as to how the council wishes us to proceed...to collect these delinquent amounts."

"This is not debt. It's a collection. It's a surety," council member Harvey McClendon argued. "They're collecting on behalf of the city to pay to the city. It's not revenue for them."

Yes, Schleier said. The hotels hold the money in trust and are violating their trust obligation.

"I think we ought to take whatever action we need to take and try to get the money. This is not the first time this has happened," council member Randy Renshaw said. "I guarantee if they owed the comptroller's office they would take whatever action is necessary."

The state's guidelines on HOT – Kilgore adopted its hotel/motel ordinance pursuit to those statutes – gives the city several options.

"We can bring a lawsuit. We can bring an injunction suit – we can actually stop them from

REQUEST Continued from Page 1A

from the seven percent tax it levies on rented rooms. Ultimately, local hotels and motels collected approximately $342,000 on the city's behalf.

Adding that excess to the surplus already set-aside, Kilgore currently has some $84,000 to invest at the city council's discretion in activities that put more 'heads in beds' here.

It's likely the city will raise more than the $285,000 estimated this year, but it was the existing, untouched nest-egg that brought Kilgore College President Bill Holda to the Kilgore City Council meeting Tuesday night.

Before making his request for additional HOT funds, Holda thanked the council for the portion the city already shares with the college.

Currently, the Texas Shakespeare Festival housed there is one of four entities that annually receive a share of the city's Hotel Occupancy Tax Revenues. Like the Kilgore Historical Preservation Foundation, TSF was allocated 12.28 percent again in Fiscal Year 2012, up to $35,000 per year. The Kilgore Chamber of Commerce receives the largest allocation, 68.42 percent (capped at $195,000), and the Kilgore Main Street Program gets a 7.02 percent share, or $20,000.

"As we continue to experience losses in state funds, that festival has the past few years run in the black in no small part because of the funds we receive from the city and from many other generous agencies," Holda said. Whatever the amount or the source – taxes, grants, vending revenues, gate fees, donations – when it comes to the college's revenue "Nothing belongs to us, so we're very grateful for any money we get."

With excess funds in hand, he said, the city council has the ability to make

general zoning of agriculture and then we will be going back as we determine the general uses and we will be doing the zoning," Planning and Zoning Director Carol Windham said. "If you are commercial you can choose to come in and zone your property for commercial. Whatever you are zoned initially you're able to still continue you're use."

Certain city services, like police and fire protection, will begin immediately, she said. Rates for water will be cut in half if the area becomes part of the city, Windham added, and the residents will have options on other services, like trash pick-up.

An guide on frequently asked questions about annexation, tied to this proposal, is available at City Hall.

Under their consent agenda (a group of items approved by a single vote with no discussion) the council adopted a new ordinance authorizing businesses to stock explosives in accordance with Federal safety standards.

According to the new ordinance: explosives can be stored by businesses zoned Heavy Manufacturing or

even more of an impact on local tourism by allocating almost half to East Texas Oil Museum and the Kilgore College Rangerettes.

The one-time allocations would fund a $25,000 digital docent program at the museum and offset $15,000 of the costs of the Rangerette Revels production.

"The Rangerette Revels brings in about 7,500 participants – students, people from other communities – in a four- or five-day period. It's a big event for the city," Holda explained. Consequently, the production meets the rule of thumb for a HOT expenditure: tourism, putting heads in beds. "It's a huge volume of folks that come into the community.

"Many of those people coming in...stay the night, buy meals, go to other events and come back on a regular and annual basis. It does have a real impact."

Historically, the cost of producing the mid-April show was much less expensive, he noted, but with technical sophistication of lighting, sound and video the college has been hard-pressed "to continue to keep pace with what the standards are."

"Our costs have continued to rise significantly. We spend about $80,000 to $85,000 to produce Rangerette Revels. We bring in approximately $80,000 to $85,000."

Meeting costs is one thing, but the Rangerette organization pays for all expenditures out of gate revenues – in the past, there was enough money leftover from the show to fund the Rangerettes' travel expenses.

"We are really trying to find long-term underwriters and groups that will really make the operation productive and sustainable."

Likewise, Holda said, the East Texas Oil Museum has welcomed approximately

1.3 million visitors since it opened its doors in 1983.

Running the facility costs the college approximately $500,000 per year – "We have been trying to generate philanthropy, gifts, donations and other resources to keep that operation going."

– but the museum also fits the bill for a Hotel Occupancy Tax expenditure, Holda said, with 60 percent of visitors saying they eat or spend the night in Kilgore, often visiting other sites and events while they're here.

The college's $25,000 request for HOT excess is earmarked for a digital electronic docent system.

"Most of our docents have gotten older, and (we're) hitting the spring, when we have all of these school tours," he explained.

Recording the guides' tours and installing a permanent program for guide-less tours, "… provides real, long-term sustainability to continue to meet the needs of tourists."

At Tuesday night's meeting, Holda's presentation was listed as a 'Citizen's Presentation,' not an action item, so the council did not vote on his request but agreed to consider the proposal.

And, with three ex-Rangerette managers on the council – Mayor Ronnie Spradlin, Neil Barr and Bobby Hale – "You just got your majority," council member Harvey McClendon joked.

Holda acknowledged the council's responsibility to ensure its ongoing allocation of HOT funds is sustainable and emphasized their ability to make one-time expenditures of the revenues can make an impact.

"We can use them immediately," Holda said, with Revels set for April 11-14 and the digital docent program ready for implementation.

"Whatever we get, we're very appreciative."

operating anymore. We can impose penalties," Schleier explained. "The statute also gives us the right, by ordinance, to authorize a misdemeanor punishment for a violation."

As Delux Inn's owners have not made their Hotel Occupancy Tax payments since 2010, "essentially they can have five misdemeanor charges filed against them. Really six since they have not paid their audit amount either."

The council members overwhelmingly encouraged Schleier to turn up the heat on the two hotels until the debts are satisfactorily paid.

"They've collected it. They've just kept it," Mayor Ronnie Spradlin said. "Y'all have battled this for months – I'm happy with whatever you and (city manager Scott Sellers) determine is the right choice."

"Even filing criminal charges?"

"If that's necessary."

The hotel operators have been informed of the range of consequences they face, Schleier answered council member Bobby Hale; the city's letters have warned of the possibility of criminal charges or of an injunction.

"We need to quit barking and bite," Spradlin said.

"I agree with the mayor," Hale concluded.

"Do what you need to do."

Light Manufacturing. Those zoned General Commercial District may also store explosives with an approved Special Use Permit (or if the business was storing explosives as of Tuesday's approval of the ordinance). The business must file a copy of it's Federal Bureau of Alcohol, Tobacco and Firearms license with the Kilgore fire marshal's office along with annually filing copies of the Material Safety Data Sheets for each class of explosives. All explosives storage must follow federal explosives laws and regulations and the businesses must also submit to the fire marshal the amounts and classifications of all explosives in storage.

During the meeting, Kilgore Finance Director Lawanna Williams brought an update on the city's investment policy, and James Womack, Kilgore's fleet services director, requested a change to the city's equipment services policy.

If appropriate, Womack said, his staff would like to assist other city employees with work on their personal vehicles – at no cost to the city, of course.

"The policy that we're proposing is not really new or out of the mainstream. We've been allowed to do this, though it was never a written policy: it was a verbal agreement between myself and various former city managers," Womack explained.

"We're not looking to run a business after-hours but rather to help fellow employees. If the mechanics were allowed access to their tools and facilities after hours at my discretion to change their oil and rotate their tires...it would be a big morale booster.

"No work would be done for profit, it would all be on a courtesy basis and of course all the parts and fluids that were used would be supplied by the owner of the vehicle. We would just like to help the fellow employees without feeling like we're breaking any rules."

At council member Harvey McClendon's request, city attorney Rob Schleier weighed in on the prospect.

"It's a little bit gray to me, but so long as it's not costing the city anything, I don't see a problem with it."

Womack's report did not permit action by the council, but the group agreed to consider a policy on the proposal at an upcoming meeting.

Cecil R. West

I would like to take this opportunity to announce my candidacy for the office of Rusk County Sheriff. I have served the citizens of Rusk County previously as your Sheriff during the years of 1988 through 1996. I am asking you to elect me as your Sheriff on May 29, 2012 in the republican primary.

My background in law enforcement is extensive. I have almost thirty-five years in law enforcement and public service. I worked for the Henderson Fire department for two years. I served the citizens of Rusk county in the Sheriff ’s department for almost sixteen years. Seven years as a deputy and investigator and nine years as Sheriff. From the Sheriff ’s office I went to the U.S. Marshall’s Service in Tyler as special U.S. Deputy Marshall for six years and from there to Chief Deputy of Precinct 3 Constable’s office in Smith County. I hold a Master Peace Officers certificate with the Texas Commission on Law Enforcement.

If elected as your Sheriff I will promise to do my job and provide the citizens of Rusk county with a professional and efficient Sheriff ’s department that you can be proud of.

The sheriff ’s department will respond to your calls for assistance in a more timely manner. I will be available to the public during all business hours unless my duties as Sheriff prevents it. Working together we can make this happen.

I would like to thank your for your support and vote in the republican primary on May 29, 2012.

Vxv|Ä eA jxáà Politcal ad paid for by Cecil R. West, 2167 CR 304 South, Henderson, Texas 75654

+

WEDNESDAY, APRIL 11, 2012

KILGORE NEWS HERALD VOL. 81, NO. 29

2 SECTIONS, 16 PAGES

AMERICA’S NO. 1 SMALL CITY

CAPITAL OF THE EAST TEXAS OIL FIELD

KILGORENEWSHERALD.COM

50 CENTS

RANGERETTE REVELS

Line celebrates managers

By AUSTIN KING news2@kilgorenewsherald.com

Rangerette Revels starts tonight, and this year’s show is “Revels for Men,” which celebrates the men who have contributed to the success of the Rangerettes. One such is Derick Oubre, managing assistant to the Rangerettes and Director.

Oubre found his passion for Rangerettes during his years at

Kilgore High School.

“In high school, I was a HiSteppers manager for 2 years,” said Oubre. “I really enjoyed it. I met a couple of Rangerettes my senior year and they asked me to try out.”

He is a former Kilgore College student and 4-year Rangerette manager. To this day, he continues to help the organization. This year is his seventh to work on Ran-

2012 Rangerette Revels • • • • •

Beginning at 7 p.m. nightly Tonight through Saturday Matinee: Saturday at 1 p.m.

Tickets: $20 each Call 903.983.8179

gerette Revels.

“Ever since, I’ve been coming back and building props and

NEWS HERALD archive photo by AARON MAY

The Rangerettes begin their 2012 Revels performances tonight at Kilgore College’s Dodson Auditorium.

See REVELS, Page 2

Trustees mull KC culinary program

INSIDE SPORTS: Kilgore, Sabine track teams compete in district meets today and Thursday.

See Page 8 SHOPPING SMART: Look inside for money-saving specials from Atwoods, Bealls, Blake Furniture, Conaway Homes, Johnny’s Ozark Fried Chicken, Longview-Kilgore Cable TV, WalMart.

Facebook:

Twitter:

Kilgore News Herald

KilgoreNews

By AUSTIN KING news2@kilgorenewsherald.com

KILGOROUND BILL WOODALL

+

THE WINTER OF 20112012 was (is) a doozy in Alaska.

ANCHORAGE, the state’s only metropolis, has six snow dumps – repositories for snow hauled from city streets by road crews.

With about twice the normal snowfall, almost 12 feet so far, each snow dump now boasts a pile about 85 feet high and five football fields long.

IN VALDEZ, known in East Texas as the pipeline terminus, the city has received almost 40 feet of snow – up from an annual average of only about 30.

AND it’s still only midApril.

• WHEN the Community Inn came down, locals were invited to come and get all the Austin stone they could carry away. Bil-

NEWS HERALD photo by AUSTIN KING

East Texas Oil Museum Director Joe White speaks with Leslie Lucy, producer of AT&T U-Verse Buzz Summer 2012 Road Trip, before White’s interview Monday for the television show’s feature on the museum at Kilgore College.

Show spotlights oil museum

By AUSTIN KING news2@kilgorenewsherald.com

An upcoming video project brought a filming crew from Washington D.C. to the City of Kilgore.

AT&T U-Verse Buzz Summer 2012 Road Trip is a project to be launched online and broadcasted on

one of the company’s channels with the AT&T U-Verse, a service that provides television broadcasting and numerous other services.

“We’re exploring what inspires us,” said Road Trip editor Nick Kleberob.

The nation’s culture is the focus of the videos. Kleberob and the Road Trip filming crew have traveled to key

Hotel tax collections up mid-year

By JAMES DRAPER news1@kilgorenewsherald.com

The City of Kilgore is ahead of its projected Hotel Occupancy Tax collections for Fiscal Year 2012 – revenues of $23,029 in March put the mid-year total at $167,483.

"We're 50 percent into the budget year, and we have 58 percent," explained finance director

locations in American culture.

Museums, people, places and the finer details that make America the nation it is today. East Texas Oil Museum is one such location that has caught the eye of the cultural Road Trip.

“We’re here to learn about the oil

Classified Crossword Daily Digest Horoscope Obituaries Sports

Weekend benefit raises money for medical research news2@kilgorenewsherald.com

Sabine selects Comfort as Cardinals’ new chief

Lawanna Williams.

This week, the city is set to cut four checks to organizations that receive a percentage of the tourism money – money raised by a seven percent tax on rented rooms at eight hotels and motels. The state collects an additional six percent tax.

During their last budget cycle, See HOT MONEY, Page 2

See Sports, Page 8

INDEX

See CULINARY ARTS, Page 3

By AUSTIN KING

See OIL MUSEUM, Page 3

See KILGOROUND, Page 4A

Kilgore College Longview Executive Dean Julie Fowler proposed that KC adopt a new culinary arts program at Monday’s KC Board of Trustee Meeting.

“This industry is a healthy one,” said Fowler.

In addition to learning of the wide world of food and health, Fowler noted that the culinary industry is one of the largest in not only Texas, but also the country as a whole. Fowler offered a number of charts and statistics about the size of the industry, and showed that over one million jobs are expected to be created within the next decade.

Although a chef is what

A charity walk and run will be held this weekend in honor of Tristan Lindsey, a Sabine student who suffers from Niemann-Pick disease, a rare condition often diagnosed in infants and children.

There is no known cure for NPC; current treatments look into improving the quality of life for a victim of the disease.

Trots 4 Tristan is a charity in the 10 year-old’s honor – See TROTS4TRISTAN, Page 3

Downtown merchants revamp plan for annual spring social 6 7 4 7 4 8

By JAMES DRAPER news1@kilgorenewsherald.com

It may be the season to spring forward, but Kilgore's downtown merchants will turn back the clock April 28 for their Retro Retail Sidewalk Sale in the Main Street district.

The local retailers are retooling the former Spring Fling this year –

instead of an evening social, the annual event will begin at 9 a.m. that Saturday on Kilgore Street and Main as the merchants set up many of their sale-priced wares outdoors.

"The whole thing is different," said 20-5 owner Harry Crouse. "The main emphasis is the

sidewalk sale. Expect discounts."

While many pricetags will reflect vintage values, the event's atmosphere will reflect days gone by as well, with classic cars on display near popcorn, lemonade and cotton candy stands in addition to free helium balloons

1111 N. Kilgore St., Kilgore, TX • 903-984-2036

See SIDEWALK SALE, Page 2

903-983-1494

903.984.2006

East Texas Hardware

and the soundtrack of the disco era.

"We wanted to do kind of a nostalgic theme," Crouse explained.

According to Main Street Manager Clara Chaffin, more than 20 retailers from the downtown core are planning to participate. In addition to their merchandise, some will be

1201 Stone St. • Kilgore, TX www.walmart.com

1615 Hwy. 259 N., Kilgore, TX 75662

www.kilgoreford.com

OIL MUSEUM Continued from Page 1

+

CMYK

+

LOCAL

KILGORE NEWS HERALD ◆ PAGE 2

WEDNESDAY, APRIL 11, 2012

REVELS Continued from Page 1

helping backstage,” said Oubre.

Currently, Oubre is a marketing and management major at UT-Tyler.

“I come here every day and work on them until I’m either exhausted or I run out of things to do,” he said.

Oubre works with others backstage to build and manage props during the shows.

He and his fellow prop builders have pushed themselves to make this year’s show work.

“This year’s show has the most props we have had on stage at one time,” said Oubre.

His hard work and dedication has earned Oubre the title of “Wizard of Rangerettes” or “Wiz.” Oubre explained that Missy Sumpter, Rangerette Forever creative consultant and guest choreographer, granted him this title due to his infallible ability to finish what needs to be done.

“This is definitely something I live for,” said Oubre.

“I look forward to coming to practice on a daily basis and building props to make the show look good.”

Rangerette Director Dana Blair explained that Oubre’s family has consistently spon-

sored Revels and cites Oubre himself as a major factor in success.

“He’s a great assistant to us,” said Blair. “And he does this out of the goodness of his heart.”

Oubre will be on stage during one part of each performance. A dance is dedicated in his honor.

Rangerette Revels has been in construction since January, with many long hours of hard work dedicated to the show.

“This past weekend I worked for 40 hours,” said Oubre. He also worked for 14 hours Monday and con-

tinued to work until today.

Despite his contributions, Oubre is quick to credit everyone else who helps make the show happen.

“I’m one piece of this puzzle that helps get the show done,’ said Oubre.

Rangerette Revels starts tonight at 7 p.m. in Dodson Auditorium. The show runs every night, with Saturday night’s performance being the final show. There will also be a 1 p.m. show Saturday.

For more information about KC Rangerettes, Rangerette Revels or to purchase tickets, visit the Rangerette website: rangerette.com.

NEWS HERALD photo by AUSTIN KING

Derick Oubre, Managing Assistant to the Rangerettes and Directors, prepares one of the final props to be used in Rangerette Revels tonight.

HOT MONEY Continued from Page 1

city council members allocated 68.42 percent of total monthly collections to the Kilgore Chamber of Commerce; April's disbursement is $15,756.68 of its maximum $195,000 for the year. Both the Texas Shakespeare Festival and Kilgore Historical Preservation receive 12.28 percent (up to $35,000 each) including $2,828 respectively from March's collections. The Kilgore Main Street Program (a 7.02 percent share, capped at $20,000) is set to receive $1,616.67 in the April round of checks.

After collecting $342,000 in

HOT funds last year, the council increased the 2011 projection of $275,000 to $285,000 in FY2012, upping Main Street's cap by $10,000. Any excess funds collected are set aside for allocation at council members' discretion.

Per their standing agreements with the city, the four organizations have until April 30 to submit their second itemized quarterly report of the fiscal year, listing all expenditures of Hotel Occupancy tax funds from Jan. 1 through the end of March. According to state guide-

lines, the monies must be invested in activities and projects that generate more tourism, from marketing and promotions to events, historical preservation, restoration, certain administrative expenses and activities that put more 'heads in beds' at the hotels and motels.

The $23,000 collected in March is about $7,000 less than revenues at the same time last year – of the local hotels and motels that generate the revenues, Williams said one expected payment, from Comfort Suites, did not arrive in time to bolster

March's numbers.

Even without it, she said, the city is tracking only $2,000 behind last year's six-month total – "I think we're going to make our budget."

Meanwhile, two hotels consistently behind on turning in their HOT collections – the Manor Inn and Delux Inn – made payments last month.

According to Williams, the owners of the Manor Inn (formerly Ramada Inn) decreased their debt from $2,400 to $1,800. The Delux Inn, behind

by more than $14,600, made a $250 payment.

The owner, Mayur Mali, has met with city manager Scott Sellers, city attorney Rob Schleier and herself, Williams said, and is making an effort to catch up.

"It sounds like he's having to use that to meet his expenses. You're supposed to collect it, and you're supposed to set it aside. It's obviously going in his operating funds," she explained. "He's got to pay all of his utilities, his bank notes and everything. He's having a hard time."

SIDEWALK SALE Continued from Page 1

offering food and drinks to passers-by in addition to the fare available at downtown restaurants.

"This year the idea is to have a full sidewalk sale for an all-day event that provides more time for people to come downtown and shop and explore," she said. "It's a really good way for people to refresh their idea of downtown Kilgore, to come downtown and see all the new merchants and the new mer-

chandise that is downtown.

"It's good, wholesome family fun, a great way for people to meet each other and meet the merchants. It's also a draw for people outside of Kilgore, to get them downtown and spread the word that downtown Kilgore is open for business."

The event, which ends at 5 p.m., follows the award ceremony for Leadership Kilgore's Cake Chase – a 5K run

and one-mile walk – that will start earlier that day, at 8 a.m., after registration from 7 a.m. to 7:45.

"I think it should be fun," Crouse said. "There should be a lot of people down here right at nine o'clock."

For more information on the Retro Retail Sidewalk Sale, contact Chaffin at 903.984.5081. To learn more about the Kilgore Cake Chase, log on to tinyurl.com/CakeChase.

You are cordially invited Rusk County Electric Cooperative's 75th Annual Meeting Thursday, April 12th 3:00pm – 7:00pm Rusk County Expo Center (Members business meeting 5:30pm)

HOME, RANCH & GARDEN SHOW Food, Exhibits, Healthfair, Chili Cook-off, Quilt Exhibit Show, Kiddie Train

Open to the Public • Free Admission

Brooze Brothers

Josh Davis

Hatti Bridges Grounded Quartet

NEWS HERALD photo by JESSICA WOODALL

Pint-sized seekers sprint for the prize Saturday during Overton’s annual Easter Egg Hunt.

LOCAL

WEDNESDAY, AUGUST 1, 2012

KILGORE NEWS HERALD ◆ PAGE 5

City nears HOT goal three months early

By JAMES DRAPER

news1@kilgorenewsherald.com

Three quarters of the way into its fiscal year, the City of Kilgore has collected more than 96 percent of its projected Hotel Occupancy Tax revenues, reinvesting the money in six local organizations’ efforts.

The taxes, gathered from a seven percent tax on rooms rented at local hotels and motels, are meant to put more ‘heads in beds’ in Kilgore through tourism promotion as well as funding the arts and historical preservation.

For Fiscal Year 2012, the

city estimated $285,000 in collections ($10,000 more than last year) and raised $274,897.15 between October and June.

Under the current budget, four organizations receive allocations from the fund – the Kilgore Chamber of Commerce, Texas Shakespeare Festival, Kilgore Historical Preservation Foundation and Main Street Program. In their requisite quarterly reports on expenditures, the beneficiaries noted the money was recently used for everything from conferences and administrative expenses (the chamber), sound

Letters to the Editor To the Editor: To the people who stole from my property on the night of July 28th.

Some of the items were purchased for use in iServe projects for local churches. These churches clean, mow, build handicap ramps, and numerous other jobs to help older and less fortunate folks have a better life.

You stole, not only from me, but STRAIGHT from GOD by hindering his work.

I can’t punish you....but God knows who you are and what you took. God forgave the thief on the Cross and if I were you I’d bring every thing back.

Gracie Blasingame

Kilgore, TX

equipment and ticket stock (TSF), utilities (KHPF), musical performances and advertising (Main Street).

As in previous years, Kilgore’s chamber was allocated 68.42 percent of the HOT proceeds in FY2012 capped at $195,000 – the organization typically covers about 65 percent of its operating expenses using the tax revenues. Consequently, the chamber carries the largest burden of reporting, with almost 100 individual HOT line items listed between April and June.

Among a variety of expenditures totaling $84,092.70 during the third quarter, the chamber reported the tourism-related portions of salaries for three employees as well as rent, travel expenses, utilities, cellular phones, postage, advertising and contract labor for chamber ambassadors who man the ‘Visitors Bureau’ desk at the building on Saturday mornings.

The chamber also devoted $12,122 of the money to the National Association of Chamber Ambassadors Conference the group hosted in May. “The NACA Conference was very successful,” Chamber tourism director

Overton Elementary student Kyndle Dingler, 8, has her bicycle helmet strapped and fitted by Overton Police Officer Janice Bagley in McMillan Memorial Library.

The helmets were distributed last week by the police, supplied by the Hard Hats for Little Heads program of Texas Medical Association, Texas Academy of Family Practitioners and Trinity Clinic in Kilgore.

NEWS HERALD photo by J. M. JONES

CODERED County Sheriff ’s Department, formed partment, what’s happening during a last year, has finally brought the mass situation, and where to go.

“What’s great is that we can get info notification system “CodeRED” to out instantaneously,” Roberson said.

Kilgore.

“It’s ready to go,” Roberson said. “We can just target text one specific “We’re asking all our citizens to go on- area where an event is happening.

“Say, for instance, we had a missing line and complete the question sheet. It person search going on, we takes less than a minute.”

Snap the CODeZ with could put a message out in the CodeRED is a national sysyour smartphone... area.” tem that allows law enforceKPD’s agreement with ment organizations to launch Gregg County gives KPD messages to all those registered 12,000 minutes of broadcast in KPD’s CodeRED database time throughout the year. All when an emergency that may minutes beyond the initial require public notice happens, 12,000 will cost 33 cents per such as a need for evacuation ...to download the CodeRED app for minute. in a specific section of Kilgore, Android or iPhone.

According to Roberson, a report on a missing person KPD has rolled the 911 dataor a notice that a criminal is on the run. The system can also be used base into CodeRED, so that those in to inform responders, such as KPD and the old database may receive CodeRED other departments like Kilgore Fire De- alerts without the need to register infor-

Carol Hinton told council members during her regular report in July. “Over 85 ambassadors from Arizona, New Mexico, Oklahoma and Texas attended. Almost $10,000 was spent on hotel rooms and over $8,000 for food.

“We feel the chamber of commerce and visitors bureau makes good use of their hot funds.”

Receiving checks totalling $13,192.42 during the third quarter, KHPF’s expenses of HOT funds during the period were divided between power costs ($1,382.92), electrical repairs ($11,980), insurance ($1,850.61) and repairs to the memorial derricks ($831.13).

Allocated the same 12.28 percent share of HOT monies as KHPF (capped at $35,000), the Shakespeare festival reported expenses of $4,054.82 during the same period for publicity ($1,885), sound ($1,000) and miscellaneous expenditures (ticket stock and lanyards) of $1,169.82.

Throughout the year, TSF artistic director Raymond Caldwell explained, the festival uses the HOT funds for a variety of costs, including props, costumes and, primarily, promotion.

SHOOTING

Continued from Page 1

pute between two men at the party escalated, and was taken outside to the parking lot.

Haddix reported several shots were fired outside the club, but only the victim was injured. The bullet reportedly traveled through the victim’s torso and exited from the back.

The shooting occurred at about 2:30 a.m.

“We have a lot of interviews to do before we find out who fired,” Haddix said. “At least five mobile homes were hit as a result of the gunfire.”

El Greco is across the street from County Mobile Home Park.

The victim of the shooting was taken to Good Shepherd Medical Center in Longview, where he was treated on non-life threatening injuries. Gregg County Sheriff ’s Office is still investigating the case, and one suspect has a warrant for arrest.

Continued from Page 1

mation. Everyone else, especially those who rely on a cell phone rather than a landline and those who have moved recently, Roberson suggests signing up.

“We can’t call you if you aren’t in the system,” he said. “So if you want notifications, if you want to know what’s happening or if you want to know why a helicopter just flew over your house, you have to sign up.”

CodeRED is a national system, and as such will continue to serve those who are in the database where ever they go. Those on vacation or moving out will still receive alerts in whatever area they reside in if the area is wired into CodeRED’s database.

To sign up with CodeRED, visit KPD’s website and click on the “CodeRED” button on the home page: cityofkilgore.com/police.

“We’ve used it to help us in printing for the programs and for the publicity, posters and flyers and things of that sort,” he explained. On a tight budget, “We have so little money, none actually, devoted to publicity. I’d like to expand it for us to be able to advertise outside this area.

“Anything that helps create visibility is what we’ve tried.”

For Fiscal Year 2012, council members increased the Main Street Program’s allocation to a $20,000 cap (7.02 percent of projected revenues). The program entered the third quarter with a negative HOT balance, received $6,495 and expended $2,752.03 on print advertising ($1,452.03) and fees for four Fridays After 5 concerts ($1,300). The organization entered the fourth quarter with a HOT balance of $1,829.95.

With three more months left in the current fiscal year and a little more than three percent shy of its anticipated total, the city is once again expected to exceed its HOT projection – the overage goes into a separate fund to be allocated at Kilgore City Council members’ discretion.

In FY2009, the city fell short of the projection by almost $2,000 but surpassed expectations in FY2010 and FY2011 by $19,629.15 and $41,560.72, respectively.

In 2011, the council distributed $10,000 of the extra funds to the Main Street Program for white LED lights downtown and $8,720 for white light tree wraps. The chamber received an additional allocation of $7,500 that year for the Mt. Kilgore Snow Hill.

This year, council members approved a $25,000 allocation to the East Texas Oil Museum for a digital docent program and $15,000 to the Kilgore College Rangerettes for their annual Revels production.

Texas Shakespeare Festival requested and received an additional allocation of $10,000 for DVD production and archival recordings of its six shows in the 27th season.

The Hotel Occupancy Taxes and allocations were among a variety of revenues discussed Tuesday night during the city council’s fifth budget worksession of the summer – look for more details in Saturday’s edition of the Kilgore News Herald.

MAKING A SPLASH: August 4, 2012

Council splits tourism taxes between eight organizations With more organizations lining up for HOT allocations – and with more information in hand and in the newspaper regarding previously-funded groups usage of the tax monies – the Kilgore City Council approached their allocation of Fiscal Year 2013 funding with a higher degree of scrutiny, beginning the first of many drastic changes to their funding model.

+

SATURDAY, AUGUST 4, 2012

KILGORE NEWS HERALD

2 SECTIONS, 18 PAGES

VOL. 81, NO. 62

AMERICA’S NO. 1 SMALL CITY

CAPITAL OF THE EAST TEXAS OIL FIELD

KILGORENEWSHERALD.COM

50 CENTS

Budget increases by fraction for FY2013

By JAMES DRAPER news1@kilgorenewsherald.com

After several weeks of budget workshops and meetings with department heads and other city staff, Kilgore council members Tuesday got a broader look at the Fiscal Year 2012-2013.

At $14,938,993, the city’s projection of General Fund expenditures is less than one percent more than the current budget – which, with three months to go – is almost $3 million shy of anticipated costs.

Revenues show a corresponding increase in the next budget year: the city projected $14,778,937

for the current year but re-estimated at $15,678,525. With taxes (including an additional $45,000 from the I-20 / Hwy. 42 annexation), garbage services, police and court fines and fees, an additional $150,000 of ‘special project’ funding from Gregg County and other monies – revenues for next year are

estimated at $14,938,992.

“All funds are balanced,” Kilgore City Manager Scott Sellers told the council.

Next year’s General Fund budget includes $342,936 in additional expenses: step raises for staff members ($235,436), a thermal camera for the fire department ($15,000),

INSIDE

City Hall maintenance ($20,000), derrick painting ($5,000), downtown signage in the Main Street Overlay District ($7,500) and salary for an additional police officer ($60,000).

The Utility Fund projection inSee BUDGET, Page 3A

Council splits tourism taxes between eight organizations

SPORTS: Kilgore gets plenty of attention as media picks favorites for district 16-3A. See Page 10A SHOPPING SMART: Look inside for money-saving specials from CVS Pharmacy, Hurwitz, J.C. Penney, Walgreens and Walmart.

By JAMES DRAPER news1@kilgorenewsherald.com

Facebook:

Kilgore News Herald

All the organizations that requested a portion of the next round of Hotel Occupancy Taxes received funding from the Kilgore City Council Tuesday night, but with nine entities seeking funding, few received their desired amount and one took a substantial cut.

Raised from a seven percent tax on rented rooms at eight local hotels and motels, council members chose to project revenues conservatively for Fiscal Year 2012-2013 – an initial estimate of $300,000 was reduced to $280,500, less than the $285,000

Twitter:

KilgoreNews

KILGOROUND BILL WOODALL

+

BOYCOTTING CHICKFIL-A is pretty easy. It mostly means getting by without their particular chicken sandwich and a waffle fry.

AND many people are doing that because the owner is quite certain that samesex marriage is sinful.

ON the other side of that coin, though, ChickFil-A supporters are trying to organize a Dump General Mills campaign because that company, we’re told, supports the notion of same-sex marriage.

BOYCOTTING General Mills, if that’s your inclination, will be much harder than doing without Chick-Fil-A. In addition to Cheerios, you’ll have to forgo HaagenDazs ice cream, Betty Crocker-built cakes, Yoplait, Progresso soups, Bisquick, Old El Paso… and on and on.

IN this case, it appears far more practical to merely allow each company the right to their opinions.

• See KILGOROUND, Page 4A

One dies in I-20 rollover

By AUSTIN KING

news2@kilgorenewsherald.com

A one vehicle accident on I-20 Friday afternoon resulted in the injury of two of the vehicle’s passengers and the death of a third.

The vehicle, a white sport utility

vehicle, was traveling westbound on I-20, west of the Hwy. 42 intersection when, according to a witness at the scene who was driving in front of the family vehicle, a tire of the SUV blew out and caused it to wreck at about 2:45.

Officials are not yet sure who

was driving the SUV. An adult male man and a 3year-old child in the SUV were injured. Another passenger, a woman, died at the scene.

Kilgore Police Department, See WRECK, Page 5A

(Top) A helicopter arrives at the scene of an I-20 wreck to escort an injured child.

(Right) The fatal rollover shut down the westbound lane of the interstate for more than an hour Friday afternoon.

Utility seeks rate increase for $83m

By JAMES DRAPER news1@kilgorenewsherald.com

SWEPCO is requesting an increase of its Texas rates by approximately $83 million to defray costs of two new power plants and pay for vegetation management.

If the Public Utility Commission of Texas approves the rate to go into effect in January, the average residential customer in Texas using 1,000 kilowatt-hours per month would see an estimated increase of 16 percent, about $12 more per month.

Several of the utility’s executives made See SWEPCO, Page 6A

Boyd, Price win run-off elections

Respondents favor city in livability survey results

By JAMES DRAPER news1@kilgorenewsherald.com

Find a selection of the survey results on Page 7A

See HOT ALLOCATIONS, Page 3A

The numbers have been crunched and, on the whole, the City of Kilgore fared well on a recent poll of residents.

“Coming in at the very top is overall satisfaction with

the City of Kilgore and optimism for the city’s future,” City Manager Scott Sellers told council members Tuesday. “I think it bodes well for our economy.”

Of 4,500 surveys mailed See SURVEY RESULTS, Page 7A

By AUSTIN KING

news2@kilgorenewsherald.com

Republican party primary runoffs elections are officially over – about three months late.

• Clardy unseats (Party primaries Hopson in House were planned for District 11 March until a court fight over re-districting backed them up to late May. Tuesday’s run-off election finally See RUN-OFF, Page 6A

INDEX Classified Crossword Daily Digest Horoscope Obituaries Sports

NEWS HERALD photos by AUSTIN KING

6-8B 3B 4A 3B 4A 9-10A

KISD planners recommend closed campus, standardized dress code

By AUSTIN KING news2@kilgorenewsherald.com

Make Kilgore High School a closed campus. Enable standardized dress in Kilgore Independent School District.

KHS Asst. band director Chris Murray shows band members how to keep their feet at a 45-degree angle Friday morning.

These recommendations are among those suggested by the KISD Long Range Planning Committee.

After four weeks of community surveys and months of studies, the

NEWS HERALD photo by AUSTIN KING

See PLANNING, Page 6A

+

CMYK

+

LOCAL

SATURDAY, AUGUST 4, 2012

KILGORE NEWS HERALD ◆ PAGE 3A

BUDGET

NEWS HERALD photo by AUSTIN KING

Construction on the new Whataburger and convenience store at Houston and Henderson Boulevard is progressing, expected to open in November.

HOT ALLOCATIONS anticipated, and almost collected, this year.

The total amount of requests, however, came in at $428,450. The sum includes larger requests from the current beneficiaries of the tax – the Kilgore Chamber of Commerce, Kilgore Historical Preservation Foundation, Kilgore Main Street Program and Texas Shakespeare Festival – as well as submissions from Kilgore Community Concerts, East Texas Oil Museum, the Kilgore College Rangerettes, the Kilgore Arts Festival and the East Texas Pipe Organ Festival.

“I think the large number of people we have requesting funds this year is probably in direct relationship to the publicity the chamber received because their HOT reports were not filed timely,” Mayor Ronnie Spradlin noted – the chamber neglected most of its requisite reporting during the past several years and council members question whether all of the organization’s expenses are appropriate for HOT funds.

“That brought to light the way they were spending their money. I would guess these entities think they can spend it better themselves than allowing the chamber to spend it on their behalf,” the mayor said.

“I think if there’s a problem we need to address it,” council member Neil Barr agreed.

Any organization that receives funding from the HOT taxes needs to be fully aware of their responsibilities in spending the money, council member Bobby Hale noted, including how the funds are used and how those expenditures need to be tracked and accounted for.

“What reports am I going to get over the next year that shows this money is being spent appropriately?” he asked. “I think that needs to be a conversation that’s had.”

According to the current standard agreement between a HOT-funded organization and the city, beneficiaries are required to submit quarterly reports listing individual expenses of the monies.

The state guidelines offer six categories for expenses, finance director Lawanna Williams noted. Those include funding or maintaining a convention center or visitor center, paying administrative costs for convention registration, paying for tourism-related advertising and promotions, funding programs that enhance the arts, funding historical restoration or preservation programs and supporting certain sporting events (not applicable in Kilgore as Gregg County exceeds the maximum 65,000 population).

Also, in a city Kilgore’s size with a HOT rate of seven percent, one-seventh must be spent on advertising and promotion, a maximum 15 percent may be spent on art programs and the city is limited to spending a maximum of 50 percent of HOT revenues on historic restoration or preservation projects unless it is devoting at least some of the funds to a convention or visitors center.

Generally, HOT funds are meant to put “heads in beds” at local hotels and motels.

The line item expenses are left up to the benefitting agencies, Williams said.

“It’s discretionary. It’s not a black-andwhite answer.”

Organizations receive a percentage of total collections, Williams added, up to a set cap – each is paid their percentage of each month’s collections. Once the projected budget is reached and all organizations have received their full allocations, excess revenues are set aside for specific distribution at the city council’s discretion.

Council member Sherry Bustin, in her first round of HOT allocation, emphasized expenditures of the revenue, especially for events, need to be targeted at bringing overnight visitors.

“Things requested should be things that rejuvenate the hotels. That’s what the tourism money is supposed to do,” Bustin said, also recommending the reduction in the overall projected revenue. “If you have some reserve here, (they) could request that when

Continued from Page 1A

it fits the definition of outside people coming in.”

The chamber’s request for FY2013 was $202,450, about $7,500 more than last year.

Considering the chamber’s reporting lapse, the number of requests, the reduction in projected revenue and a desire to keep more excess funds on hand for discretionary allocation, council members reduced the organization’s portion to 54.45 percent of the anticipated collections, capped at $152,450.

Mayor Pro Tem Harvey McClendon praised chamber president Mike Coston and his staff ’s efforts, but agreed a smaller allocation is warranted amid the reporting lapse and questions of how the organization spends its HOT money – i.e. portions of salaries, a new recliner for the chamber office, groceries and hotel expenses for a non-staff member.

“With everything that’s gone on we’re probably pushed into that corner, to have to do that this year,” he said.

“I think if we do the $50,000 (reduction) it will cause them to go back and seriously look at their budget and see what they can cut,” Hale added.

The Kilgore Main Street Program requested $10,000 more for advertising and promotion in addition to its current 7.02 percent share as well as $15,000 for the Kilgore Arts Festival, a project adopted by the Main Street Advisory Board last summer.

“They are anticipating that that is just seed money and this will be, after the first year, self-sustaining,” Kilgore City Manager Scott Sellers said. “If you do it right the first time and get it big enough, I can definitely see it paying for itself the next year.”

The council chose to fund most of Main Street’s request at 10.71 percent of collections, a maximum of $30,000. The group agreed to allocate $15,000 for the arts festival from excess funds at a later date.

This year, the Texas Shakespeare Festival asked for $45,000 beyond its current $35,000 cap. Kilgore Historical Preservation Foundation asked for an increase of $8,000 above the $35,000 allocated this year.

Neither organization will get the requested increase but will each receive $35,000.

“As much as I like the Shakespeare festival, I think that’s a large increase to ask for, year over year,” Spradlin said, in addition to an extra $10,000 recently allocated from excess funds. Likewise, “Our last city manager took the Crim and Texan away from KHPF and we took on the maintenance of those buildings. KHPF had been over the maintenance of those beforehand, so they really got an infusion from us taking over that.”

Kilgore Community Concerts and the East Texas Pipe Organ Festival requested and were allocated $3,000 and $5,000, respectively.

The East Texas Oil Museum, which received a one-time $25,000 allocation from excess funds in the spring, requested $35,000 for the next fiscal year and was allocated $10,000, the amount the organization specified for printing and distributing brochures at tourism bureaus.

The Kilgore College Rangerettes also received a special allocation earlier this year, $15,000 for the group’s annual Revels production – the council approved $10,000 of the organization’s requested $15,000 for FY2013.

Council members also weighed a new option for allocating HOT revenues in the future.

“We are the ultimate ones that are responsible for it being spent correctly everywhere,” Spradlin said. “There are cities where the HOT money is directed by a committee, much in the way the United Fund is directed by committee.”

“I think we really have the duty to do this ourselves as a council,” McClendon responded. “We’re elected – we’re supposed to represent the city and do that.”

KNH clicks with Longview fan

Longview resident Sharlene Robinett recently became the 1,000th person to ‘Like’ the Kilgore News Herald on Facebook last week.

Clicking the thumbs-up button July 25, Robinett won a night out in Kilgore for herself and a guest, including two tickets to 4 Star Cinema and dinner for two at Nanny Goat’s.

“WOW--Thank you so much!! How very exciting for me (and my hubby),” Robinett wrote in a Facebook message to KNH. “I love Kilgore.”

Follow the Kilgore News Herald on Facebook and Twitter and watch for more upcoming contests

cludes expenses and revenues of $5,756,337, a 0.2 percent increase over the current budget – revenues so far are $5,873,128 while expenses, including $2.2 million for the Rabbit Creek project, are $6,814,846.

The current budget accounts for a tax rate of 0.39 per $100 valuation – the council will set a tentative, maximum rate at their Aug. 14 meeting.

The overall budget also includes a potential 20 percent increase in costs from SWEPCO, a possible seven percent jump from CenterPoint and a 1.6 percent increase for sanitation.

During the hours-long meeting Tuesday evening, the council reviewed various revenue funds, including Hotel Occupancy Tax (see separate story on page 1A), the city’s fee schedule and also took a first look at a slew of water and sewer projects that will arise within the next three decades. The group plans to examine the project-list further Aug. 14 to determine how utility rates may need to be adjusted for future funding.

In a second review of 16 ‘Uncommitted Nonroutine Capital Expenditures’ totaling $2,964,500, the council agreed to commit to all but one in the next budget year.

Delaying development of a $250,000 splash pad, the group gave other projects the green-light: • Purchasing a Quint Engine / Ladder Truck for $700,000, offset by an estimated $350,000 from the sale of the city’s current lad-

Continued from Page 1A

der truck.

• Devoting $75,000 to enhancing City Hall’s facade.

• Installing fiber-optic cable ($50,000) to connect several city buildings • $20,000 for surveillance equipment at City Hall and the city yards • Proximity card readers to access city buildings ($20,000) • Interconnecting city telephone systems for $117,500 • Downtown Phase III: $762,000 for improvements on N. Kilgore Street between North and Sabine • Removing the old Dansby School including $50,000 for asbestos abatement and demolition (sharing the $190,000 price tag with Kilgore ISD, Kilgore College and Gregg County) • Purchasing additional Cartegraph modules ($27,000) • Investing in a new RMS/CAD system – $225,000 – that may be partially-funded from the 911 and court technology funds • Fencing the city yard ($18,000) • Knowles Street reconstruction ($140,000) • West Sabine Street reconstruction ($60,000) • Unspecified street projects ($250,000) • $200,000 for utility cut repair and overlay on Tucker Street, Fason and Luder streets.

The city is already committed to $3,297,000 in other nonroutine capital expenditures:

• $275,000 for the purchase of Meadowbrook Country Club • $864,000 for infrastructure at Remington Estates (near Chandler elementary School) Phase 3 • $163,000 for infrastructure at Windsor Park housing development near Airport Road • $1,330,000 to widen Hwy. 42 between Hwy. 31 and Interstate 20 (a joint project with Gregg County, Kilgore Economic Development Corporation and the Texas Department of Transportation) • $165,000 to add a left turn lane on Hwy. 259 at Synergy Park (another joint project) • Up to $500,000 for improvements to Baughman Road, splitting costs with KISD which will use the street as an entry roadway for its new campuses.

Paying for the new commitments and the other projects from an anticipated $7,741,162 in the 2012 ending fund balance, the city estimates $2,734,662 at the end of FY2013 in addition to the 25-percent-ofbudget minimum that must be maintained in cash-onhand.

The council also reviewed planned capital equipment replacements in FY2013 valued at $252,000 and including two new police patrol units ($30,000 each), a used forklift ($40,000), two mowers ($7,500 each), two sets of half-off survey equipment ($26,000) and other expenses.

Ready to take your business online? Let us help!

Call 903.984.2593 We'll Handle the Hassle

SWIMMING LESSONS: September 5, 2012

City recruits state expert for tourism fund training September 9, 2012

Expert: Hotel tax funding must benefit both tourism, inns September 29, 2012

Tuesday training to provide primer on Hotel Occupancy Tax guidelines

Moving forward into their next Fiscal Year, City of Kilgore officials recruited the author of the state’s Hotel Occupancy Tax guidelines, Scott Joslove, to further define – for the city and for HOT-requesting organizations – the particulars of HOT fund collection and the intended uses of the funds.

+

WEDNESDAY, SEPTEMBER 5, 2012

KILGORE NEWS HERALD

2 SECTIONS, 20 PAGES

VOL. 81, NO. 71

AMERICA’S NO. 1 SMALL CITY

CAPITAL OF THE EAST TEXAS OIL FIELD

KILGORENEWSHERALD.COM

INSIDE

City recruits state expert for tourism fund training

SPORTS: KC sports had a special day Saturday – a successful softball debut and a season-opening football win.

See Page 12 SHOPPING SMART: Look inside for money-saving specials from CharBurger Stockade, DirecTV, Johnny's Ozark Fried Chicken and Southern Hills Golf Course.

Facebook:

Kilgore News Herald

By JAMES DRAPER news1@kilgorenewsherald.com

Twitter:

KilgoreNews

KILGOROUND BILL WOODALL

+

THE GOOD NEWS: Hearing aids are now called hearing instruments.

AND , they no longer make shrieking noises in the middle of the sermon.

THE BAD news: Doggone these hearing instruments are pricey.

• THOSE lunch hour mini-concerts on the 1949 Aeolian- Skinner, Opus 1173 organ at First Presbyterian Church are under way today.

FROM 12:05 p.m. until 12:35 each Wednesday through December 19, a 30-minute concert by organist Lorenz Maycher will provide – almost dead-center in your workweek – an opportunity to lean back, close your eyes and find that quiet spot within you… assuming you remembered to turn off your cell phone.

• KILGORE’s Bulldogs walloped Marshall, Sabine’s Cardinals routed Ore City. Kilgore College Rangers beat Dodge City.

HOWEVER, the local football story of the week, in our opinion, was Leverett’s Chapel’s absolute domination of the Chester Yellowjackets, 87-6. And it wasn’t as close as it sounds.

THE game was called after the first half. In 6man football there’s a 45-point mercy rule. If one team leads another by 45 points at the half, See KILGOROUND, Page 4A

COURTESY PHOTOS

Ayrton Chapman's early composite rendering of her 'Meattropolis' installation art shows her off-white plastic casts of food products mixed with the full-color pieces she plans to include in the final project. (Below) Chapman coats individual food items with silicone putty to create molds for plastic resin.

By JAMES DRAPER news1@kilgorenewsherald.com

When Ayrton Chapman visits the grocery store, she’s not fixating on fat content, fiber counts or calories.

Rather, she’s asking herself: How would that carrot look at the top of a skyscraper? Can you make an amphitheater out of an artichoke? Would Mayor Henry Percival Piddleview prefer cheddar or Swiss on his

cheeseburger-shaped Souperdome?

For her latest piece of installation art, the native Kilgore artist is satisfying both her creativity and her cravings in a sprawling, skyscraping edible edifice. Art enthusiasts, however, should think twice before taking a bite out of Mayor Piddleview’s Meattropolis – it’s a feast just for the eyes.

“I’m interested in the ideas of consumption and consuming and mixing those with the city you live in,” Chapman explained. “Mixing the consumption of our every-day lives – like food – with the places that we consume. In a way, all the cities couldn’t exist without food, couldn’t exist without the See MEATTROPOLIS, Page 7

Find the weekend wrapup in Game Time Weekly

Inside!

17-day drunk driving focus nets 11 offenders

By AUSTIN KING news2@kilgorenewsherald.com

Kilgore Police Department joined in on a national effort to fight against intoxicated drivers earlier in August. The 17-day campaign urged departments over the country to crack down on drinking and driving, with Labor Day weekend ending the campaign.

“We had an officer assigned each night to specifically target impaired drivers,” said KPD Captain Roman

New East Texas charters schools focus on project-based learning

By JAMES DRAPER news1@kilgorenewsherald.com

People learn every day – accomplishing a goal means learning how to accomplish each task that falls within the project and gaining each skill that has to be employed through the best use of available tools and resources.

It’s that project-based learning that directs the classroom experience at UTTyler’s new Innovation Academy charter schools, utilizing technology and non-standard

teaching practices to teach students how to learn, especially on their own.

“Schools have a difficult time conceptualizing what we’re trying to accomplish and what we’re trying to suggest they do. One of the purposes of a charter is to implement new practices and to be innovative in education, particularly a university charter,” Superintendent of Schools Eli Crow explained.

Charters aim to relax many of the See INNOVATION ACADEMY, Page 2

When Henderson kindergarten teacher Pressley Rowe brought home her new sofa, she also brought home an unexpected guest – a sevenfoot-long red tailed boa constrictor.

Rowe purchased the couch two weeks before the stowaway snake surfaced, though the freeloading reptile’s presence didn’t go unnoticed.

See SNAKE, Page 6

NEWS HERALD photo by AUSTIN KING

Rescue Unit Chief Edgar Rachal is in his 37th year with the local emergency response squad.

Rescue Unit's volunteers 'part of the team' at KFD

By AUSTIN KING

By AUSTIN KING 10 11 4 11 4 12

See TRAINING, Page 3

See DRUNK DRIVING, Page 7

news2@kilgorenewsherald.com

news2@kilgorenewsherald.com

Classified Crossword Daily Digest Horoscope Obituaries Sports

With their anticipated Hotel Occupancy Tax revenues allocated for the coming fiscal year, the City of Kilgore is bringing in an expert to train the benefitting agencies on how to appropriately and best utilize the local tourism dollars.

Statewide, HOT funds are raised by taxes on local rented rooms, including six percent for the state and up to seven for municipalities. The City of Kilgore levies the maximum rate on the eight hotels and motels operating within the city limits, distributing the revenues to various organizations to reinvest in ways to put more “heads in beds” here.

More than meats the eye

Rusk County friends cringe as constrictor uncoils from couch

INDEX

50 CENTS

COURTESY PHOTO

Seven-foot boa constrictor 'Snake' snuck aboard a for-sale couch recently, an unexpected surprise for the new owner.

+

CMYK

For almost half a century, Kilgore Rescue Unit has served the city and continues to work as a team alongside the city Fire Department.

“The Rescue Unit was started in 1966 by a full-time, paid fireman here in town named Eddy Hadaway,” said Rescue Unit Chief Edgar Rachal, who

took over after Hadaway. Rachal is the longest-serving active member of the unit – now – serving his 37th year.

Originally, the unit’s main focuses were performing searches, recovering drowning victims and assisting the fire department. The unit functioned on the goodwill of volunteers and monetary See DRUNK DRIVING, Page 6

+

LOCAL

WEDNESDAY, SEPTEMBER 5, 2012

TRAINING

KILGORE NEWS HERALD ◆ PAGE 3

Continued from Page 1

In Fiscal Year 2010-2011, the tax generated $342,780, almost 25 percent more than projected. So far, in FY2012, collections have again exceeded expectations with more than $285,000 raised.

Scott Joslove, president and CEO of the Texas Hotel & Lodging Association, formerly served as the Chief of Municipal Affairs with the Texas Attorney General’s Office and was first Assistant General Counsel of the Texas Municipal League. In 1989, he wrote an article entitled “What cities need to know to administer the local Hotel Occupancy Tax” and has since become the go-to authority statewide on the hotel/motel tax revenues, updating his essay every two years following the state legislative session.

“He’s intimately involved with the statute” governing HOT funding, Kilgore City Manager Scott Sellers explained Tuesday.

Joslove’s upcoming Oct. 2 HOT training session is mandatory for all entities receiving the funds – according to the city’s draft budget for Fiscal Year 20122013, eight agencies will receive varying portions of an anticipated $280,500 including the Kilgore Chamber of Commerce, Kilgore Main Street Program, Kilgore Historical Preservation Foundation, Texas Shakespeare Festival, the Kilgore College Rangerettes, East Texas Oil Museum, Kilgore Community Concerts and the East Texas Pipe Organ Festival. Excess collections – the city currently boasts more than $83,000 set aside – can be allocated to requesting organizations at council members’ discretion.

In addition to representatives from the current benefiting agencies, the early October meeting – coinciding with the start of the fiscal year – will include Kilgore City Council members. The owners and operators of the local hotels and motels have also been invited.

“Early this year there were questions about the reporting of HOT funds being timely, accurate and legal for each of the entities that receive HOT funding through the city,” Sellers explained. “The city has been working with these entities to ensure the proper compliance for the reporting. However, there are certain questions that have surfaced about expenditures in these reporting requirements.”

According to the standing agreements between the City of Kilgore and HOT-beneficiaries, the organizations must submit quarterly, itemized reports on their HOT-related expenditures. Approved expenses are outlined in the state statutes governing the tax, which Joslove has previously explained in numerous presentations to city and county governments and other bodies.

“Already Mr. Joslove has emailed some paperwork that he has felt would be beneficial to the city, such as a reporting and accountability tool and a primer for cities administering HOT funds,” Sellers explained.

“He has also made a couple of recommendations regarding the reporting requirements that he will speak about during the Oct. 2 meeting.”

The idea to invite Joslove for the training came in part from a recent Kilgore Chamber of Commerce board meeting, Sellers added.

That organization has fielded numerous questions surrounding HOT funds since February following a reporting lapse and subsequent restructuring of its HOT accounting.

“Certain questions arose regarding the city’s proposed HOT fund disbursement for the 2012-2013 budget in which the Chamber’s allocation was reduced to meet a higher volume of requests for those funds,” he explained. Those questions, among other HOTrelated issues, will likely factor into Joslove’s presentation to the wider group. “I expect the response to be very favorable as this meeting is more about moving forward than looking backward.”

The city has requested that would-be attendees to the training session RSVP to Sue Brooks by e-mailing sue.brooks@cityofkilgore.com.

With HOT being in the news and before the council, Mayor Pro Tem Harvey McClendon said he looks forward to Joslove’s training, a chance to sit down with someone who knows the ins and outs of the tourism tax.

“With the things that have been going on, it’s a good idea for us. It’s an opportunity to make sure we’re doing things right.”

NEWS HERALD photo by JAMES DRAPER

The Kilgore High School Hi-Steppers took the field of R.E. St. John Memorial Stadium for the first time this season Friday night as the Bulldogs faced the Marshall Mavericks, winning their first match 42-0.

Foundation orders new Kilgore-centric items for fundraising project

By AUSTIN KING news2@kilgorenewsherald.com

Members of Kilgore Historic Preservation Foundation task themselves with safeguarding the history of the titular town. To raise funds for the organization, KHPF has ordered specialized Kilgore merchandise that emphasizes the city’s relationship with the oil boom of days past.

Kilgore-themed merchandise includes coat bags and baseball caps adorned with derricks, coffee mugs that celebrate the oil boom of the 1930s and Christmas shirts. Carroll Bolton, KHPF membership committee chairman, stated that more merchandise may come in the future.

“Right now that’s all that’s on the list,” Bolton said. “We’re going to continue to try to find items to sell. We’ve just been trying to find something we could

sell for profit.”

As of Monday, Bolton explained, all items have been billed and KHPF is awaiting arrival of the goods.

“Everything has been ordered,” Bolton said. “They should arrive soon.”

Once the items arrive, the next step will be to find buyers interested in hometown-promoting goods. The prices on KHPF’s merchandise have not yet been set, though Bolton expects everything to be economical for the buyer.

“We haven’t made a decision on the prices yet,” Bolton said.

“But they will probably be inexpensive.”

Proceeds raised from the merchandise will go into KHPF’s general fund, which contributes to the upkeep of city history. For more information, visit KHPF’s website, khpf.org.

NEWS HERALD photo by JAMES DRAPER

Kilgore Historical Preservation Foundation Membership Committee Chair Carroll Bolton displays a pair of dolls the organization is considering selling out of its Kilgore Street storefront along with other Kilgore-related items.

Letters to the Editor Editor: In response to last week’s letter to the editor regarding the first day of school at Kilgore Heights I would like to clear up some things. As principal of Kilgore Heights my number one priority is to keep all (550) students safe. On August 23 we hosted Meet the Teacher which allows parents and students to visit their new school and obviously meet their teacher. Last week at an informational meeting we reiterated our policies and procedures. Our students congregate in the auditorium each morning and wait for their teacher to pick them up. The auditorium is a safe place that is monitored by a number of adults. In the afternoon students wait for their parents in the cafeteria or in the classroom. Students go to the playshed to wait for buses to arrive. A number of adults monitor these students in the afternoon just as in the morning. Please understand that our campus was not originally built to house 550 very small children. We have many exits that little bodies can easily escape through unless they are monitored constantly. Due to the amount of students we have and their age there will be even more regulations next year when we move to our new building.

Now, was last Monday a “mess”? It might have looked like a mess to some, but believe me, Kilgore Heights faculty knew exactly what was going on. We are organized and will continue to follow policies and procedures to keep our students safe. Our students will quickly become familiar with the routine and mornings and afternoons will play out to be a smooth transition. Do we want parents to visit? Yes, by all means!

We love volunteers and we encourage parents to be involved in their children’s young lives. It does help if you will wait a couple of weeks so that the students are accustomed to their schedule.

Kilgore Heights is a great place with fantastic teachers who love the very young and have their BEST interests at heart whether it be safety or academics.

Deana Griffith

Principal, Kilgore Heights

WEDNESDAY, SEPTEMBER 12, 2012

LOCAL

KILGORE NEWS HERALD ◆ PAGE 3A

Expert: Hotel tax funding must benefit both tourism, inns

By JAMES DRAPER

on the tax, I’ve written a leading article on the use of the tax that is still in play for multiple Texas cities.”

Joslove updates the article, ‘What More than just tourism alone, every expenditure of Hotel Occupan- cities need to know to administer cy Taxes must also directly promote municipal Hotel Occupancy Taxes,’ the hotel and convention industry. regularly.

The standard opinion for legisSo says Scott Joslove, the state’s leading expert on the 40-year-old lators, counties, cities and other guidelines that raise revenue for entities through the state, he last the state and other governmental updated it in 2011, listing nine basic categories for investentities from additional ing HOT money, most charges on stays at rentof which apply to a city ed rooms.

Kilgore’s size: funding “There’s a two-part convention and visitor test for every expendiinformation centers, ture. One, is this an exregistration of convenpenditure that directly tion delegates, adverpromotes tourism and tising and promotion, the hotel and convenpromotion of the arts, tion industry? Tourism historical restoration is defined under the tax and preservation acScott Joslove code as bringing citizens tivities, tourism-related from one city or county to a different city or county,” Jo- sporting events, sporting-related slove explains. “Two...does it have infrastructure, tourism-related sigthe effect of bringing people from nage and transportation of tourists another city or county to come from hotels to commercial areas, frequent that (attraction) and have convention centers, area attractions an impact on the hotel industry in or other nearby hotels.

Kilgore’s signature derrick skyline, some way?”

The City of Kilgore has requested for example, is maintained in part Joslove facilitate training sessions through KHPF’s allocation of HOT on the use of Hotel Occupancy funds as historical preservation.

“It may be that people aren’t comTaxes, bringing council members, benefitting organizations, hoteliers ing into Kilgore just to see the derand any other interested parties up- ricks and booking rooms for that to-date on best practices and appro- purpose, but it may be that while priate application and reporting of they’re in Kilgore in a room that’s HOT expenditures. He will be here what they do,” Joslove explained.

“Even if it’s not the reason you to conduct those sessions Oct. 2.

In Kilgore, the city’s seven percent came, but it’s part of what you do – tax on rooms rented at eight hotels the fabric of what you actually parand motels (in addition to the six ticipate in – that’s another way to percent tax levied by the state) raised $342,780 in Fiscal Year 2010-2011 and more than $285,000 so far in FY2012, the majority of it allocated, by varying percentages, to four organizations: Kilgore Chamber of Commerce, Texas Shakespeare Festival, Kilgore Historical Preservation Foundation and the Kilgore Main Street Program.

For the coming fiscal year, Kilgore City Council members approved four additional organizations’ requests for portions of the revenues including East Texas Oil Museum, the Kilgore College Rangerettes, the East Texas Pipe Organ Festival and Kilgore Community Concerts.

Joslove’s seminar is set on the second day of FY2013, aiming to impress upon the designated groups their duty to go beyond the basic use of the funds to put “heads in beds” and determine the best possible way to effectively, and appropriately, reinvest the money in activities that will benefit the lodging COURTESY photos by SETH WILLIAMS industry that generates the tax.

Hired by the Texas Municipal League in 1988, Joslove worked for five years as the organization’s general counsel and served as the group’s expert on tax issues. He also served as chief of municipal affairs for the Texas Attorney General’s Office – which included advising cities on a variety of municipal issues like taxes – and is currently president and CEO of the Texas Hotel & Lodging Association, the largest of its kind in the nation, after joining the organization in 2000.

As far as the state HOT statutes, “I have written many drafts and changes to the state law, but legislators ultimately write bills,” Joslove said. “I’ve been an expert witness news1@kilgorenewsherald.com

extend a stay and impact a hotel.”

Conversely, some communities have inappropriately devoted HOT funds to community picnics or activities at senior centers, events unlikely to either draw new tourists or occupy the ones in town for another occasion.

“If no tourists or hotels participate, it has a purely local impact and that would be a challenge” to justify HOT expenditure, Joslove said. Likewise, even events that would be a draw for outside visitors, like limited-ticket concerts or other performances, do not effectively serve the tourist population if there’s no seating available. “Even though that’s a promotion of the arts, you couldn’t really argue it affected the hotel and tourism community because tourists couldn’t go if they wanted to.”

According to Joslove, there is no statutory formula for determining the level of impact a HOT-funded event or activity must have to satisfy the dual requirement for tourism and hotel/convention industry promotion. However, he wrote in 2011, communities with successful tourism promotion programs generally allocate the HOT funds according to the perceived proportionate impact on tourism and hotel activity.

“Entities applying for hotel occupancy tax revenue funding should indicate how they will market the event to attract tourists and hotel guests. If an entity does not adequately market its events to tourists and hotel guests, it is difficult to produce an event or facility that

will effectively promote tourism and hotel activity.”

Joslove recommends cities adopt a standard hotel tax application form posing specific questions about the would-be beneficiary’s planned activity, like the number of hotel rooms blocked for an event and an estimation of the number of overnight attendees.

Outlining specific requirements facilities must meet to qualify as convention or visitor information centers – i.e “primarily used to host conventions and meetings – Joslove also notes in his article the limits on how HOT funds can be used to cover a portion of administrative expenses like supplies, salaries, office rental, travel expenses and other costs.

“These costs may be reimbursed only if the expenses are incurred in the promotion and servicing of expenditures authorized under the hotel occupancy tax laws.”

Special rules apply to various cities, Joslove maintained in 2011. For example, in a city Kilgore’s size (less than 125,000 population) with a seven percent tax, a minimum expenditure of one-seventh of HOT revenues must be spent on advertising and promotion of the city and its vicinity. Similarly, no more than 15 percent of total revenues may be spent for the arts nor more than 50 percent for historical restoration and preservation.

In communities like Kilgore, with limited service hotels and no established convention centers, the simple “heads in beds” rule is still a

primary measure, Joslove said.

The HOT training varies from city to city, he added, sometimes because new council members want a better understanding of the funds they’re allocating, sometimes because the benefitting organizations need a refresher on how their activities measure up to the standard.

“Sometimes they call me out there and ask me to do the training because they’ve had questions and members of the public or the press and other individuals, members of the council, say they think they would like to have more guidance on this. In the case of Kilgore, I will provide an overview of what the rules are,” he explained. Reviewing Kilgore’s current HOT budget and past experience, Joslove said he’ll be prepared for any questions or issues that arise. “I will provide them guidance on best practices and where to draw the line as they have issues.

“Typically, in this situation, absent a request to the contrary, I would identify what the state law parameters are as I understand them, what the practices are across the state and where they can maximize them and stay within the confines of the law.”

Mandatory for Kilgore’s HOTallocated organizations, the Oct. 2 seminar (a series of meetings beginning at 2 p.m.) will also include council members, city staff and hoteliers. The discussion is open to any other interested individuals who RSVP in advance to administrative assistant Sue Brooks at 903-984-5081 or a sue.brooks@ cityofkilgore.com.

Kilgore High School's Homecoming Duchesses include Mykea Canada, Shelby Cayce, Makenzie Benoit, Chloe Nisbett, Destini Rossum, Hannah Wright, Kaitlyn Stoner, Kylie Henry, Ja’Nesha Brager, Lauren Long, Taylor Walker, Macy Rawls, Carly Flores, Tori Whitwell, Paiten Ligon, Laycen Watson, Colby Johnston, Anna Grace Miller, Dee Anna Aldredge, Laci Ford, Olivia Pack, Shakiria Wheat, Leah Listenbee, Jessie Hope, Taylor Stewart, Kathleen Meredith, Jessica Noriega, Lauren Pfeffer, McKalyn Pinter, Dominique McGaha, Beatriz Amaro, Sinclair Mauldin, Haylie Davis and Sarah Mendenhall (Left) This year's princesses are (left to right) Tori Whitwell-FCA, Taylor Walker-Dance Technique, Destini Rossum-Basketball, Colby Johnston-Hi-Steppers, Lauren Pfeffer-Soccer and Chloe Nisbett-Band.

The court will be featured in the Homecoming Parade downtown at 4 p.m. Thursday. The parade route will follow Kilgore Street starting at Beall’s and ending at the Texan Theater for a downtown pep rally. Presentation of the court will begin at 7 p.m. Friday before the football game at R.E. St. John Memorial Stadium.

+

LOCAL

KILGORE NEWS HERALD ◆ PAGE 2A

SATURDAY, SEPTEMBER 29, 2012

Tuesday training to provide primer on Hotel Occupancy Tax guidelines

By JAMES DRAPER

Also open to the public, the orgathe city’s Fiscal Year 2013 budget.

According to Sellers, representatives nization’s top leadership and board from seven of the eight organizations of directors are especially invited to An upcoming training session on have confirmed they’ll be attending that meeting, Sellers noted; a handful Hotel Occupancy Tax dollars has that session, including Kilgore His- have confirmed so far.

The day’s final discusdrawn a growing group of attendees, torical Preservation Foundasion begins at 6 p.m., when with representatives from current- tion, the Texas Shakespeare WHAT: Joslove will confer with ly-funded organizations and more Festival, Kilgore Main Street HOT Training Kilgore City Council memHOT-hopefuls signing up for the Program, the Rangerettes, bers in a specially-called East Texas Oil Museum, the WHEN: seminar with expert Scott Joslove. meeting.

Public meetings at City Hall Tues- East Texas Pipe Organ Festi- 2:30 p.m.

Council members are day afternoon – revolving around val and Kilgore Community Tuesday currently charged with alpublic revenues raised through taxes Concerts Association.

WHERE: locating the tourism revIn addition to any wouldon local rented rooms and reinvested enues, vetting various orgato generate more hotel/motel traffic be beneficiaries, representa- City Hall nizations’ proposals on how and fuel tourism – will be specifical- tives from Kilgore’s eight RSVP: they would use the monies ly-tailored to various groups, Kilgore hotels and motels are also Sue Brooks, to benefit the local inns City Manager Scott Sellers said this invited to the meetings, Sellers added; about 20 people, 903-984-5081 and bolster tourism. Onceweek. funded, the beneficiaries “We actually do have a really good various representatives and members of the public, must submit quarterly, itemized exturnout” based on RSVPs, pense reports on their efforts. he said. “It’s going to be Snap the CODeZ with have signed up so far. your smartphone...

According to Joslove’s most recent The second session, set spread amongst three differfor 4 p.m., will be focused update on the HOT funds, available ent meetings.” specifically on the final, on the Kilgore News Herald Web Joslove previously served and largest, HOT benefi- site via tinyurl.com/HOTguidelines, as Chief of Municipal Afciary, the Kilgore Cham- there are nine statutorily-provided fairs for the Texas Attorney categories for HOT expenditures, ber of Commerce.

General and as First AssisAllocated $152,500 which “must DIRECTLY enhance tant General Counsel for ...for Scott Joslove's from the revenue projec- and promote tourism AND the conthe Texas Municipal League. most recent article on President and CEO of the Hotel Occupancy Tax tion of $280,500, the vention and hotel industry.” state guidelines.

Accepting the city’s invitation, Jochamber historically has Texas Hotel & Lodging Asutilized the funds more slove’s visit falls a day after FY2013 sociation, he’s the leading authority on the hotel/motel tax and broadly than other organizations, begins Oct. 1.

“This will be a way to clarify the updates the prevailing opinion on the covering a portion of payroll and other administrative costs with the tour- statute, especially regarding reporting state’s guidelines every two years.

The first training session with Jo- ism dollars in addition to advertising, requirements,” Sellers said. “This will slove, beginning at 2:30 p.m., is office supplies, food, travel expenses allow us to have a better understandopen to any interested member of and funding for specific events. Since ing of what sorts of activities do qualthe public and is mandatory for the February, the organization has faced ify for Hotel Occupancy Tax dollars. majority of the organizations who questions about its reporting of HOT It will also add legitimacy to those activities that are being funded.” have received a HOT allocation in usage and various expenditures. news1@kilgorenewsherald.com

NEWS HERALD photo by AUSTIN KING

Kilgore Main Street Manager Clara Chaffin updates the Kilgore Lions Club on the upcoming Crim Theaterror Fright House, hoping to recruit them and others as actors and helpers.

Volunteers needed as fright house takes shape

By AUSTIN KING news2@kilgorenewsherald.com

NIGHT OUT

+

in our neighborhood.”

Every year, a number of host families take the lead to host the night out party for their neighborhood. Hosts determine where the celebrations take place and the food served; some neighborhoods might participate in a potluck, or another may have foods catered by the host family. Each party’s host is also asked to collect canned

Continued from Page 1A

goods at the neighborhood party, which are then given to Helping Hands.

Throughout the course of the night, members of KPF and KFD will attempt to stop by each party to introduce themselves to residents.

“We try to make sure we hit every party,” Roberson said.

As of Friday, seven hosts

a party at 212 Lawrence St and Dale and Laura Hedrick are hosting at 2411 Ivy St. Kilgore Night Out is Tuesday. Party times are determined by host families.

For more information, contact Kilgore Chamber of Commerce at 903-9845022.

“We look forward to this every year,” Roberson said.

have signed on to hold a party: Jennifer Payne is hosting a party at 407 Boone St., Dale Sistrunk is hosting one at the alley between Spring Tree and Oakwood Lanes, John Cannett is hosting at 3105 Mimosa St., Ray Miller is hosting at S. Rim Road, J.C. and Betty Bearden are hosting at 1909 Idlewood, Janie Hanks, Jan Hendrix and Jan Vestel are hosting

HERITAGE

Continued from Page 1A

Spanish explorers.

The date of Sept. 15 was chosen because it is the independence day of Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua; all Latin American countries including Mexico, Chile and Belize also celebrate their independence days in the second half of September.

To celebrate National Hispanic Heritage Month, KISD has scheduled an event at City Park in October. Students are already practicing for the celebration. Performances will be given by students from all campuses, and those who attend are asked to bring enchiladas, tamales or desserts to share with the community. Those who bring food items will receive tickets for door prizes.

The Hispanic Heritage Event is set from 6 to 8 p.m.

Oct. 9 at City Park.

+

CMYK

The Crim Theater in downtown Kilgore returns to life, after years of neglect, to wreak havoc on those brave enough to enter.

Beginning Oct. 12, the first Crim Theaterror will open.

Sponsored by Kilgore’s Main Street Program, the Crim Theaterror event turns the historic building – which was closed many decades ago – into a haunted house with proceeds going into a fund for eventual renovation of the now run-down building.

“The Crim Theaterror is an effort to go ahead and start raising money to hire an architect to renovate the Crim,” said Kilgore Main Street Program Manager Clara Chaffin in a presentation for Kilgore Lions Club Thursday.

The theme of the fright house will be that the aged theater’s spirit has become vengeful towards the residents of Kilgore for allowing it to fall into such a state of disrepair. Those who pay for the trek through the haunted building will be guided by the Crim Reaper.

“Now, every time someone walks into the Crim, they can’t come out,” Chaffin said.

To prepare for the event, the Crim Theater first had to be cleaned up. During the decades the building has sat virtually unused, a number of items and a lot of trash were stashed away in the building; all the while, old age took its toll and degraded the quality of the building’s interior.

“On the whole, we have really cleaned it out,” Chaffin said.

“Right now on the inside it looks spectacular, because the trash has been picked up and the floor was power washed.”

With opening night just a few weeks away, Chaffin has plans to advertise the haunted house in Kilgore and other nearby towns.

“We are still looking for volunteers,” Chaffin said.

Residents may volunteer as actors or ticket takers.

Opening night of the Crim Theaterror is Friday, Oct. 12 at 8 p.m. until midnight. Those who wish to know more about the event or volunteer should contact Chaffin at 903984-5081.

+

HIGH-WATER MARK: October 6, 2012

City revamps hotel tax allocation model Considering the public scrutiny\of the program, following their seminar on Hotel Occupancy Tax the Kilgore City Council agreed to a complete overhaul of their traditional method of distributing the tourism tax revenues, ultimately establishing an advisory board and adopting stricter guidelines for the allocation and monitoring of the funds.

+

SATURDAY, OCTOBER 6, 2012

KILGORE NEWS HERALD

2 SECTIONS, 18 PAGES

VOL. 81, NO. 80

AMERICA’S NO. 1 SMALL CITY

CAPITAL OF THE EAST TEXAS OIL FIELD

KILGORENEWSHERALD.COM

50 CENTS

City revamps hotel tax allocation model

By JAMES DRAPER

news1@kilgorenewsherald.com

The City of Kilgore’s method of allocating Hotel Occupancy Tax revenues is set for a major overhaul following training this week by attorney Scott Joslove.

In order to better facilitate the best-use distribution of HOT funds and monitor their appropriate expenditure – putting more ‘heads in beds’ at local hotels and motels and fueling tourism – city council members on Tuesday supported the creation of an advisory board and adopting an impact-

based approach to investing the revenues through various entities.

Set for implementation early next year, current allocations in the Fiscal Year 2013 will likely remain as is while city staff coordinate with Joslove on common guidelines, by-laws and best practices utilized by other communities throughout the state. Come January, beneficiaries will likely be tasked to better prove the value of their HOT activities in advance and, probably, to be reimbursed on a per-event or See HOT OVERHAUL, Page 6A

HOT guru stresses fiduciary duty, impact-based funding

By JAMES DRAPER news1@kilgorenewsherald.com

Decades ago, what would eventually become the Hotel Occupancy Tax was originally levied on restaurants and attractions as well.

“Restaurants got out of it. Attractions got out of it.

And the only ones that were in it were the hotels,” according to acknowledged HOT guru Scott Joslove.

“They signed on to agree to it because they thought so long as it’s a win-win they’re good with it.”

A self-described “tax nerd,” Joslove said there was NEWS.HERALD.photo.by.JAMES.DRAPER

Hotel.Occupancy.Tax.expert.Scott.Joslove.(left).confers.with.Kilgore.City.Attorney.Rob.Schleier.

See HOTELS, Page 7A

INSIDE

Kilgore ISD investigates child's injury in classroom

SPORTS: Kilgore knocks off Bullard; Leverett's Chapel wins and Overton loses.

See Page 10 SHOPPING SMART: Look inside for money-savings specials from CVS Pharmacy, J.C. Penney, Longview-Kilgore Cable TV, Southern Hills Golf Course, Walgreens and Walmart.

Teacher's aide reportedly caused boy's head wound

By AUSTIN KING

news2@kilgorenewsherald.com

KILGOROUND BILL WOODALL

+

THE BAPTIST Student Ministry at Kilgore College is celebrating 50 years of ministry at KC with an alumni celebration banquet at 7 p.m.

October 20 in the Baptist Student Center.

A CATERED barbecue dinner is priced at $12/ person. Current and former students will share testimonies. Former directors Larry (LG) Taylor and John Pearce will be on hand to facilitate reminiscing.

TO reserve a plate of BBQ, call the BSM at 984-7146.

• IN early summer, Police Chief Todd Hunter asked his patrolmen to make a list of all the burned out street lights. They did and the list was submitted to AEP/SWEPCO. AS a result, we’re told,

NEWS.HERALD.photos.by.AUSTIN.KING

Alyssa.and.Kyleigh.Lewis.play.in.St..Luke's.United.Methodist.Church's.pumpkin.patch.Wednesday.afternoon..(Below).Jacob.Mooney.helps.set.up.the.rows-upon-rows.of.orange.veggies.

Patching things up

By AUSTIN KING news2@kilgorenewsherald.com

Tuesday afternoon, a teacher’s aide at Kilgore Heights reportedly took hold of fouryear-old student Alexander Normet’s leg and pulled on it, causing the young Kilgore Independent School District student to fall and hit a shelf on the way down.

Alexander was injured as a result, and left with a wound that reportedly required treatment. According to KISD interim superintendent, Kilgore Heights See INJURY, Page 5A

Trustees pursue search firm for new KISD chief

The 14th annual St. Luke's United Methodist Church pumpkin patch has officially sprouted in Kilgore after a number of local children and volunteers helped unload the fruits on the church lawn Wednesday.

Every weekday, the pumpkin patch will be open from 4 to 6 p.m. On Saturdays, the patch is open from 10 a.m. to 6 p.m., and on Sundays it is open from noon to 6 p.m.

St. Luke’s has a number of other events lined up throughout the month as well. This evening “Terror in the Patch” is set for 7 p.m. The dinner theater has an admission of $7 per person or $20 for a family.

On Saturday, Oct. 20, St. Luke’s will host the church’s annual family day, offering residents hay rides, games and a number of events and activities. A market will also be held on the same day. Both events kick off at 10 a.m.

Kilgore school board was faced with two options for the process of finding a new superintendent after the departure of former superintendent Jody Clements last month: hire a search firm or conduct the search using school staff.

“There’s a lot at stake,” said trustee Scott Montgomery. “The ability to look at a

See PUMPKIN PATCH, Page 5A

See SUPERINTENDENT, Page 3A

See KILGOROUND, Page 4A

INDEX Classified.............6-7B Crossword............... 3B Daily.Digest............ 4A Horoscope.............. 3B Obituaries.............. 4A Sports................9-10A

NEWS.HERALD.photo.by.AUSTIN.KING

EAST TEXAS HARDWARE

By AUSTIN KING news2@kilgorenewsherald.com

The.Kilgore.

Chamber.of.

Commerce's. annual.Night.

Out.festivities. once.again. brought.local. firefighters. and.police. officers. together. with.the. community.

Tuesday.

SEE.PAGE.2A

Chili cook-off plans a-bubblin'

By JAMES DRAPER news1@kilgorenewsherald.com

If local retailers wonder why their antacid sales spike every November before Thanksgiving, they need look no further than the East Texas Oilmen’s Chili Cook-off.

About 6,400 people flooded Commerce Street last year to sample the spicy selections of 100-plus oilfield chefs. They’ll return once again Nov. 8 for a two-hour all-you-can-eat (if you dare) charity fundraiser.

It’s the 20th year for the oil-and-gas food fest, with the majorSee COOK-OFF, Page 8A

DOING OUR BEST FOR DO-IT-YOURSELF WWW.ETXHARDWARE.COM +

CMYK

+

KILGORE NEWS HERALD ◆ PAGE 6A

LOCAL

SATURDAY, OCTOBER 6, 2012

HOT OVERHAUL per-expense basis.

President and CEO of the Texas Hotel & Lodging Association, Joslove is the statewide authority on HOT funds – he penned the 1989 legal opinion that serves as the current go-to guide for appropriate collection and expense of the hotel/motel tax. The initial five categories of statutorily-approved expenses have expanded to nine since Joslove’s first article, which he updates following each session of the state legislature.

As former Chief of Municipal Affairs for the Texas Attorney General and a previous First General Counsel for the Texas Municipal League, Joslove has conducted multiple training sessions statewide with government bodies and HOT beneficiaries. Prior to meeting with council members Tuesday, he added two more seminars to the list, first with seven of the eight current benefitting organizations, hoteliers and interested community members then with Kilgore Chamber of Commerce staff and board members. (See separate story on Page 1A) Though the meeting with the city council was open to the public, there were no attendees besides the Joslove and the council members.

Joslove advocates the common practice of having a central authority administer the dedicated, state-regulated tax under officials’ supervision – that advisory body, he said, should includes a multitude of voices and perspectives, especially from among the hoteliers who generate the tax and who, according to the original purpose of the law, should reap the benefit of more paying guests.

“It’s tourism and the hotel and convention industry – you need to show it’s having an impact on your lodging operators,” he said.

“The city council has a fiduciary duty to make sure that those funds are being spent according to state law.

“Administering the hotel tax is not a perfect process.

Continued from Page 1A

NEWS HERALD photo by JAMES DRAPER

Scott Joslove, president and CEO of the Texas Hotel & Lodging Association, leads a seminar on Hotel Occupancy Tax revenues and their uses for Kilgore Chamber of Commerce staff and board members, city council members and employees, hoteliers and other interested individuals Tuesday afternoon.

You’ve got to learn along the way.”

Historically, as recently as this summer’s budget cycle for Fiscal Year 2013, council members have fielded requests from applicants and subsequently divided projected revenues from the seven percent tax room tax.

The benefitting organizations signed agreements with the city to send back itemized, quarterly reports on their related expenses.

Though they could not take any action during the specially-called informational meeting Tuesday, after discussing related legal issues with Joslove in closed session, in the council’s ensuing public back-and-forth the general consensus was to adopt Joslove’s recommendation of a standardized application form for a HOT allocation whether up-front or – more appropriately, Joslove said – as a reimbursement. That first form, submitted to the advisory board, will likely include questions about the nature of the event, the anticipated number of visitors, the expected number

"It is safe to say that those who were in attendance have learned much more about the HOT fund program that will help everyone be in compliance as we move forward.”

City Manager Scott Sellers

of hotel rooms blocked off for the activity, costs, budgeted expenditures and other proving questions.

The key, Joslove said, is to allocate, not in terms of needs, but, rather, return on investment.

“You have a fiduciary duty to say everybody ought to be able to apply, but you’re going to look at your funding in terms of what impact it will have. In this case, the impact that is required is that you need to directly promote tourism and the convention and hotel industry,” he insisted. “You look at, from the top to the bottom, what fills the most rooms.”

In some cities, allocations are made on a 10:1 basis – for every dollar of HOT money, a $10 return to the hotels is expected. In a community Kilgore’s size, Joslove said, a 3-to-1, 2-to1 or even 1-to-1 ratio could be acceptable, as long as the impact can be gauged.

“Whatever that return is, allow every event to show it. They will compete with each other to try to have more impact. It becomes a great win-win,” as more paid rooms generate more taxes to invested, he said.

“When you give the money out, what is absolutely essential is that they operate under the same theory of ROI – return on investment – that they not only give the money out but they figure out, did this return us anything?”

Council members also

generally agreed with Joslove’s recommendation for a post-event followup in addition to the benefitting organizations’ quarterly reports – How much impact did the HOT-funded activity actually have? How many people actually came?

How many stayed overnight? Ultimately, was it an activity that showed appropriate use of the funds and is worthy of funding again?

“As their events are unfolding, I would not wait for the end of a quarter for them to submit their receipts or their documentation for an event. You might want to have it on a monthly basis where they submit records for reimbursements,” Joslove said.

“That way, you don’t miss a practice. You don’t wait until four months later when there’s a problem.”

The as-planned advisory board method allows for a multitude of expenditures deemed appropriate under HOT guidelines – from advertising and promotion to signage, logistical expenses and more – but, according to the council’s discussion Tuesday, will likely strip out blanket-approval for payroll and administrative costs.

The change most-drastically affects the Kilgore Chamber of Commerce, which is typically allocated more than half of total HOT revenues and uses it to fund 65 to 70 percent of salaries, utilities, travel to trade shows and other inhouse expenses in addition

to tourism-related marketing and activities alongside its mission to promote local businesses Council member Neil Barr questioned how the city can accurately account for the impact of the chamber.

“I think there are ways to gauge,” Joslove countered.

“You would look at, where is the chamber spending their money? How many leads are they getting? Were they qualified leads? For events that they hold, how many (visitor) hotel nights? Some of those events already have an existing impact – How did the chamber bump it up or take it down?

“For the point at which you fund the chamber, I would think you want to know what you get for that.

What is the budget they give to you? What are the ROIs they anticipate?”

In their general discussion of the new advisory board, council members tentatively set the start date around Jan. 31, coinciding with the chamber’s fiscal year changeover.

“That would give us time to get all of this in place, and they would have lead time to get ready,” Mayor Ronnie Spradlin said. “If we made this happen, then that would give them 120 days notice that this happening.”

Council member Bobby Hale noted some concern about the four-month implementation of the new allocation structure.

“I like the idea,” he said, but “I think I would really have to look over the process of that committee – that’s not going to be an easy undertaking. They have to be trained, and they also have

to understand the concept and the vision we have for these funds and what we want to do. That’s not going to happen overnight.

We don’t want to serve to frustrate the people that are putting on the events.”

“They all have the opportunities to prove the worthiness of their projects,” Spradlin said.

“The key is to have a very smart application for funds, so that you ask exactly the right questions,” Joslove added.

Following up on allocations – vetting receipts according to appropriate usage, for example – is a lot to put on a volunteer advisory board, Hale said.

“I would probably put that in the hands of the city staff,” Joslove answered.

“I would use the board to look at the ROI, the relative value of the programs, to make recommendations to the city council.”

According to Kilgore City Manager Scott Sellers, while the current allocations will not immediately change, the HOT program moving forward will look substantially different from the past but will serve to give beneficiaries clear guidelines about the best, legal use of their funding.

“As questions have arisen from various entities regarding the appropriate use of HOT funds, it became apparent that a training from the statewide expert would be in order,” he said. “It is safe to say that those who were in attendance have learned much more about the HOT fund program that will help everyone be in compliance as we move forward.”

Ready to take your business online?

Let us help! Call 903.984.2593 We'll Handle the Hassle

SATURDAY, OCTOBER 6, 2012

LOCAL

KILGORE NEWS HERALD ◆ PAGE 7A

'What are the events that fill up your hotels?' no good consensus on the appropriate use of the tax revenues when – after studying legislative history, reading the statutes and conferring with the Texas Attorney General’s office – he wrote what became and has remained the definitive opinion on HOT funds and how to use them to best effect, responsibly and legally.

“That article became very popular. It’s been used all over Texas. Chambers use it. Cities use it. The hotels take a look at it,” he explained to attendees at two training sessions Tuesday. “It is pretty much agreed-to that the rules we talk about in that article are the rules that apply.”

Between the two meetings, city staff and council members joined a score of representatives from various HOT-benefitting organizations for Joslove’s primer on the latest guidelines spelled out in his article, updated regularly.

According to numbers compiled by the state comptroller’s office, Joslove said, hotels generally reap the lowest returns on tourismrelated events after restaurants, retailers, gas stations/convenience stores and liquor stores.

“The lowest recipient to that event is the only one that’s paying towards tourism,” he lamented. It’s also why the first standard of a two-part test on the use of the lodging tax is that expenditures must directly enhance and promote not just or primarily tourism but specifically the lodging industry. “That was the compromise the legislature did many years ago. If the hotel industry is going to agree to do a tax that is twice the sales tax in some cities...then every expenditure must directly promote tourism and the hotel and convention industry.”

Simply defined, tourism means drawing someone from one city or county to another.

They may visit for a particular event, activity or attraction or simply enjoy them while

"If the hotel industry is going to agree to do a tax that is twice the sales tax in some cities... then every expenditure must directly promote tourism and the hotel and convention industry.”

Scott Joslove

they’re visiting for another purpose – either way, those amenities must have a proven impact to merit HOT funding.

“Every expenditure – not some of them, not must of them, not the majority – must directly promote tourism. Typically, the expression is ‘heads in beds.’”

Mandatory for all of the eight organizations currently-funded by HOT, Tuesday’s audiences included representatives from the Kilgore Chamber of Commerce, Texas Shakespeare Festival, Kilgore Historical Preservation Foundation, the Kilgore Main Street Program, the Kilgore College Rangerettes, East Texas Oil Museum, the East Texas Pipe Organ Festival, Kilgore Community Concerts Association and others like Kilgore Soccer Association volunteers and Kilgore College leadership as well as individual hoteliers.

Joslove encouraged the groups to coordinate their efforts with local hotels and motels: reserving rooms, negotiating event rates, surveying participants and following up on how their activities benefitted local lodgings.

“The second prong is that every expenditure must fit into one of nine statutory categories,” he said.

Those categories include convention or visitor information centers, registration of convention delegates, advertising and promotion, promotion of the arts, historical preservation, certain sporting related events, sporting facilities, way-finding signage to tourist attractions and shuttling convention delegates between hotels. (Find the article on the Kilgore News Herald’s Web site via tinyurl.com/HOTguidelines) Would-be beneficiaries must prove their HOT-funded activities will be directly beneficial to hotels and, ideally, measurable, Joslove explained. They must submit clear plans, attendance projections, budgets and other details to show an estimated return on investment for their event or revenue-usage.

“What are the events that fill up your hotels?” he asked. “Figure out what you’re doing well now. What brings more people in?

What’s visited more? Look at what’s your biggest attraction and try to spend accordingly.”

Beneficiaries bear the responsibility of using their funds appropriately, he warned, lest they suffer the same fate as the Huntsville Chamber of Commerce, sued by the city for violations of its fiduciary duty to spend its allocations in good faith, according to state guidelines and with proper documentation under the law.

“What I advise folks to do is, when you look at it, treat it like you would any other business. Explain what any expense is for,” he said.

Does a particular material purchase actu-

ally qualify? Does a dinner receipt show who erator and determine how much they would ate with whom, where and how the meal ac- pay” for tourism activities, he insisted. “Run tually benefitted tourism in Kilgore? Does a it like a business. Treat it like you would treat staff member spend as much time on HOT your own business. Pretend it was your personal money. That’s what your fiduciary duty activities as he or she is funded for?

“Every expenditure of the hotel tax – if is about.”

For Kilgore Mayor Ronnie Spradlin, who that’s by the city, by the chamber, by another entity – that’s open record,” Joslove noted. attended both general meetings and the fol“It’s not easy to keep all those records. I can lowing council meeting along with Sellers, tell you that it’s a process. And it’s an impor- Joslove’s training revealed a number of potant one. You take on a duty, it’s called a fidu- tential uses for the tax revenue in addition to currently-funded projects. ciary duty, to do your best.

“The bottom line is now we’ve been made “Make sure everybody’s on the same page aware of the lawful uses as well as best uses so it’s not a 'gotcha' game afterwards.”

Entities with large allocations should agree of HOT funds, and we have a fiduciary responsibility to comply to contractual obligawith the intent of the tions, clear expectations law that governs HOT of how money can be “The bottom line funds,” he said. spent and how it must is now we’ve Currently-funded orbe reported.

“I think it’s important. been made aware ganizations now can improve their events to If I were giving that fully fit under the state money to the chamber of the lawful guidelines, he said; likeor to an entity, I would wise, more local entiask that they present uses as well as ties can apply for HOT that contract for sig- best uses of HOT funds for new activities nature and their entire if they can prove their board get a copy of that funds, and we impact while others can so that they all under- have a fiduciary alter and improve their stand. because they’re all plans in order to qualify. part of that voting en- responsibility to “I think it will encourtity,” he said during the age individual or smaller day’s second meeting, comply with the groups to make use of tailored for the Kilgore intent of the law the HOT funds for Chamber of Commerce. athletic tournaments, “If you’re going to get that governs for reunions, for small this money, you’re going HOT funds." conventions and events to show how it’s meeting the statute.”

Mayor Ronnie Spradlin that really earlier they weren’t aware that they Fielding questions could qualify for help. If from the audiences, Joslove answered Kilgore College President Bill you do fill up the hotel rooms, you have an Holda’s query about whether or not the City opportunity to take advantage of the HOT of Kilgore could use HOT money to fund a funds,” Spradlin said. With the HOT fundmarketing analysis and strategic plan for ad- ing structure scheduled for a major change (see separate story on Page 1A), for the existvertising the community.

“Absolutely you could,” Joslove said. Like- ing beneficiaries, “I think it gives them the wise to Kilgore City Manager Scott Sellers’ opportunity to maintain the same funding question on whether the historical restoration they’ve had in the past, increase the funding of the Crim or Texan theaters is appropriate. or give them another way of looking at or “Yes. You can do that. You just need to be justifying their funding. If they can elaboable to make a reasonable finding that expen- rate on what they’re doing, they stand to get diture for that purpose would lead to events more money.

“I think the education we’ve received on that hotel guests would frequent.”

Joslove also agreed to work with city staff the purpose of HOT funds and why we get on developing legislation to help Kilgore them has made us reevaluate how we spend qualify for the currently-restricted sporting- them with each and every entity that receives them. It opens our eyes to the responsibilrelated categories.

Overall, Joslove said, expend HOT funds ity we have in receiving them and spending within common best practices, within the them. I think we’ve been taught how to optimize hot money and, to quote Scott, to ‘get law.

“Put (yourself ) in the shoes of a hotel op- the most bang for our bucks.’”

EPILOGUE: Calmer Waters Ahead January 2, 2012

City finalizes new guidelines for HOT January 5, 2012

Chamber executive accepts top post at cattle association January 12, 2012

New board gets briefing on HOT issues January 26, 2012

HOT board approves allocation for Chamber, awaits detailed budget February 2, 2012

Chamber bids farewell to chief, hires interim

2013 began with new Hotel Occupancy Tax guidelines in place in the City of Kilgore. The newly-appointed HOT Advisory Board got down to business quickly, delving into the state’s tourism tax guidelines with a deeper understanding of their purpose and prohibitions.

Meanwhile, Kilgore Chamber of Commerce President Mike Coston resigned from his position as his remaining staff and board of directors adapted to their decreased HOT allocation and, along with the city’s other HOT-funded organizations, prepared for stronger enforcement of the rules.

+

WEDNESDAY, JANUARY 2, 2013

KILGORE NEWS HERALD

1 SECTION, 10 PAGES

VOL. 82, NO. 01

AMERICA’S NO. 1 SMALL CITY

CAPITAL OF THE EAST TEXAS OIL FIELD

City finalizes new guidelines for HOT

By JAMES DRAPER news1@kilgorenewsherald.com

The City of Kilgore aims to more closely monitor its investment of Hotel Occupancy Tax revenues in 2013, requiring would-be beneficiaries to prove their plans and quantify the effective impact of using the monies to fuel local tourism, putting more ‘heads in beds’ at the inns that generate the cash.

Through 2012, money raised through the city’s seven percent tax on local rented rooms was allocated

by city council members at the request of various organizations. Recipients were tasked with spending the money on events, activities and programs that brought more visitors to the eight – now nine – hotels and motels operating in the city limits.

Organizations that received the funds (traditionally the Kilgore Chamber of Commerce, Texas Shakespeare Festival, Kilgore Historical Preservation Foundation and Kilgore Main Street Program) were required See HOT RULES, Page 2

SHOPPING SMART: Look inside for money-savings specials from Atwoods, Family Dollar, KC-Parks Fitness Center and Walmart.

KILGOROUND BILL WOODALL

+

ADMIT IT – HAVING CELEBRATED a white Christmas, you’re ready for spring and warmer weather.

(A little help, please, from those whose memories pre-date the 1954 movie, “White Christmas:” Did anyone really care about whether Christmases were white before Crosby, Clooney and Kaye sang about it?)

• LOVEY Smith, fired as head coach of the National Football League’s Chicago Bears, was not the only coach in the NFL with ties to our part of East Texas. Smith was a defensive stand-out – he also played offense – at big Sandy and graduated there so his ties aren’t just connections – they’re roots.

JOHN Paul Young was an Abilene native who coached at Jacksonville High School in the late ‘60s and very early ‘70s before becoming an asSee KILGOROUND, Page 4

INDEX Classified.................. 8 Crossword................. 7 Daily.Digest.............. 4 Horoscope................ 7 Obituaries................ 4 Sports....................... 9

50 CENTS

LIVABILITY: FINAL

SFA center's findings on quality of life in progress

By JAMES DRAPER news1@kilgorenewsherald.com

COURTESY.photo.by.RONNIE.SPRADLIN

As. tourism-related. activities,. organizers. behind.the.Great.Texas.Balloon.Race.in.Kilgore. and.memorial.derricks.can.apply.for.Hotel.Occupancy.Tax.revenues.

INSIDE SPORTS: Kilgore's lengthy football playoff run tops the list of sports moments in 2012.

See Page 10

KILGORENEWSHERALD.COM

2012

Web readers' viewing habits help pick year's top stories

By JAMES DRAPER

or another; drawing on interviews, facts and hastilyscribbled notes; picking the Tragedy vs. celebrity, best photo to illustrate what’s schools, true crime and, of happening – it’s still very hard course, politics – it makes for to predict what level of interan interesting archive. est an article will draw from Typing away at one story readers.

We know how many subFind.2012's.top.stories.at. scribers receive the Kilgore KilgoreNewsHerald.com News Herald each week on news1@kilgorenewsherald.com

Wednesdays and Saturdays along with the general number of people that pick up papers from our news racks spread throughout Kilgore.

We can’t know, however, which headlines in the print edition snare the most eyes, which stories merit a read

Moving forward into 2013, staff at City Hall have the final report from Stephen Austin State University’s livability study in-hand and have already begun tackling the majority of recommendations tied to the quality of life project.

The year-long examination – the pilot project of the university’s new Center for a Livable World – focused on the ‘triple bottom line’ of livability elements: economics, environment and society. SFA’s team, graduate students and faculty members, used demographic and statistical data, on the ground research, focus groups and other sources to develop a snapshop of Kilgore in 2012.

“Kilgore is well ahead of many communities,” project coordinator Dr. William Forbes told Kilgore City Council members in the group’s final summary last month. “I worked with small towns in See LIVABILITY, Page 5

Library expands online offerings

By AUSTIN KING news2@kilgorenewsherald.com

Kilgore Public Library has partnered with seven new web services a number of high-tech reading and learning opportunities for library patrons, including virtual books, audiobooks, magazines – even a program that tracks a user’s progress in learning a new language.

According to Librarian Linda Johnson, library staff has been busy the past few weeks learning to operate these new services.

“It’s been real difficult, getting it all together,” Johnson said. “But it’s very helpful and I think the public will appreciate it.”

The first of many programs is

See TOP STORIES, Page 3

See LIBRARY, Page 2

Police stage 'active shooter' sim on high school campus

Kilgore.

Police. officers.and.

SWAT.team. members. participate. in.an.active. shooter. training. exercise. at.Kilgore.

High.School.

Friday.

By AUSTIN KING news2@kilgorenewsherald.com

After the tragedy in Newtown, CT, school safety is something of a concern among public school students and parents. Kilgore Police Department took advantage of the Christmas holiday to use Kilgore High School as a training ground to simulate the department’s tactics in case of emergency.

“We were just doing active shooter training,” said Roman Roberson, KPD captain. “Basically, we just practice

COURTESY.photo.by.

KILGORE.POLICE.DEPT.

See TRAINING, Page 5

With 58 incidents since annexation, KPD relies on 'box' strategy on I-20

By AUSTIN KING news2@kilgorenewsherald.com

Kilgore Police Department has had a lot on its plate since a portion of Interstate 20 was annexed into Kilgore in July.

Police Captain Roman Roberson said the agency has responded to 53 accidents on the interstate since Kilgore annexed that portion of the highway in July.

Not included in that number was a trio of one-vehicle

EAST TEXAS HARDWARE

accidents last Friday, as well as two other accidents (one fatal) with which Kilgore officers assisted since that Dec. 13 report.

“I know we’ve had more since then,” Roberson said.

“We had the three last Fri-

day and have had even more on and off.”

The interstate has proven to be a challenge for KPD. With hundreds of vehicles, often manned by drivers foreign to Kilgore, a speed limit of 75 miles per hour,

numerous exits and a slick road after rain, the department has had its hands full adjusting to the new stretch of interstate.

“Any accident is going to See INTERSTATE 20, Page 5

DOING OUR BEST FOR DO-IT-YOURSELF WWW.ETXHARDWARE.COM +

CMYK

+

LOCAL

KILGORE NEWS HERALD ◆ PAGE 2

WEDNESDAY, JANUARY 2, 2013

HOT RULES

Continued from Page 1

to submit itemized, quarterly reports on their HOT expenditures according to the state’s guidelines.

And that was that.

Renewed focus on the funds last year, including more than twice as many applicants seeking an allocation in the Fiscal Year 2012-2013 budget, led city officials to invite Scott Joslove, de facto author of the state’s HOT statutes and the go-to guru statewide, to present a primer in October on proper, legally-mandated investment of the funds.

“From his training, we learned very specifically that every HOT fund expenditure must directly promote tourism. His rule of thumb was (visitors must travel from) another city or county outside of 50 miles,” City Manager Scott Sellers explained. “It also must benefit the hotel and convention industries. His rule of thumb was ‘heads in beds.’”

All expenditures of Hotel Occupancy Tax revenues must also meet a particular qualifier, most of which apply to Kilgore: funding convention or visitor information centers, registration of convention delegates, advertising and promotion, promotion of the arts, historical preservation, expenses at certain sporting-related events or facilities, way-finding signage to tourist attractions and shuttling convention delegates between hotels.

“That said, it really does form the basis of creating a more formalized program, moving forward,” Sellers said.

The current plan for the new allocation program, following Joslove’s recommendations, is set for its debut this month. The overhauled model includes the creation of a Hotel Occupancy Tax advisory board with at least five members including a representative from the city council (which will ultimately review and ratify the board’s decisions), two hoteliers, a restaurateur and an at-large member from the community. Council members will appoint the members of the board,

NEWS.HERALD.photo.by.JAMES.DRAPER

The.Kilgore.College.Rangerette.Revels,.(below.from.left).Kilgore.Historical.Preservation.Foundation.memorial.derricks,.

Kilgore.Main.Street.Program.Fridays.After.5.Concert.Series.and.Texas.Shakespeare.Festival.were.all.partially-funded.by.

Hotel.Occupancy.Tax.revenues.in.2012,.along.with.an.assortment.of.other.events.and.programs.designed.to.put.'heads. in.beds'.in.local.rented.rooms..The.guidelines.for.the.allocation.of.those.revenues.are.set.to.change.drastically.this.year. as.the.City.of.Kilgore.aims.to.keep.a.closer.eye.on.the.effective.use.of.the.funds.

who will be subject to their own set of by-laws, still being developed.

Once the new committee is in place, it will hear all new applications for HOT funding as well as resubmitted requests from those organizations who received HOT-allocations from the city council in the FY 2013 budget – the funds, Sellers noted, have been appropriated but not expended at this point.

Joslove provided best-practices guidelines for HOT usage – “We have taken those and made them unique to Kilgore,” Sellers said.

“This would be the application packet to go to each entity requesting the

Hotel Occupancy Tax revenues by Year 2008-2009 2009-2010 2010-2011 2011-2012

$273,076.83 $296,629.15 $342,780.72 $364,555.37

up 8.62% up 13.58% up 6.35%

funds with an introduction and rules governing the application.”

Requesting entities will be required to fill out financial data about the organization in addition to describing the planned event or program of work, noting the HOT qualifier, estimating the expected number of hotel visitors a particular HOT-funded event or project will garner in addition to providing information about rooms already blocked for the event at a local inn.

With the packet from Joslove, the city also received a sample contract.

According to Sellers, each HOTfunded entity will be required to sign an individualized agreement with the city for each allocation unless the board chooses to lump various projects into one.

Any expenditure of HOT funds will be tied to a requisite post-event checklist or review form, he noted.

“This really does take a lot of guesswork out of auditing these events.”

The working, 10-page application package notes the allocated

organization’s responsibility to prove the event or program met its projections.

“There are several places where audits of expenditures, clawbacks or reimbursements may also be requested,” Sellers said.

A sample contract from Bryan/ College Station included a formula where the reimbursement value is tied to the number of rented rooms an expenditure generated times the local hotel tax rate at the time multipled by the occupancy rate. The community’s funding structure also included bonuses for ensuring the potential of return of guests, creating a marketing plan or scheduling the event on a “date of need,” i.e. an open weekend between other events.

Kilgore’s multiplier will be set once the advisory board gets down to business, Sellers told city council members.

Pre-funding requests must be submitted at least 90 days prior to the event while the post-event analysis is due no later than 30 days after along with proof of ad-

vertising expenditure and actual rooms rented.

For those organizations unable to estimate expenditures in advance – whether for a compressed event development timeline or inability to accurately predict numbers, i.e. a new attraction – the board will also consider ‘after the fact’ funding if organizers can prove a headsin-beds impact.

Ancillary tourism benefits – i.e. for historical preservation expenditures like upkeep on KHPF’s memorial derricks on the World’s Richest Acre, blanket advertising or wayfinding signage – can still be funded under the new structure, Sellers noted.

“They don’t have to be coming here directly for that, but if they are attending something like the World’s Richest Acre while they’re here then, ancillary, it would qualify for some sort of hotel funding,” he explained. “People don’t come here to see a sign, but they come here and the sign points them to the World’s Richest Acre.”

COURTESY.PHOTO

Get instant updates online at KilgoreNewsHerald.com

NEWS.HERALD.photo.by.AUSTIN.KING

LIBRARY LearningExpress Library, which features a number of study centers for students of all grade levels, college students and even job and ca-

Continued from Page 1

reer programs for adults.

“LearningExpress Library is a program that almost any age can use,” Johnson said.

“It’s basically an all-around learning system. There’s even a GED preparation course and a center for becoming a U.S. citizen.”

Another program, Mango, offers numerous language courses.

“Mango has 19 different languages on there, and it keeps track of how students come along learning a language,” Johnson said.

Available languages include Spanish, French, Japanese, Brazilian, Portuguese, German, Mandarin Chinese and Greek.

Another program new to KPL is Zinio, which allows residents to find digital copies of magazines.

“We have Zinio, which is a program that lets you download magazines,” Johnson said. “Right now, we have 29 different titles.

“If users let us know what titles they’re interested in, we can change things around and get what they want to see.”

With OneClickdigital, KPL users have access to thousands of audiobooks.

“OneClickdigital tallies probably over 3,000 audiobooks for adults and more than 700 for children,” Johnson said. eSequels is a program useful for library users who are interested in reading books from a series.

“This is great for fiction readers,” Johnson said. “They can go in and find all the books in a series, or they can search by a character’s name.

People are always wanting to know which book to read next.”

Finally, OverDrive is a pro-

gram that KPL has been on for some time now. OverDrive is a program that pools information from KPL and 29 other libraries using the system for resident use.

All together, these new programs will cost the library $12,930 annually.

Once all the programs are up and running they can be found on KPL’s website.

Several of the programs are already available on the website’s homepage, kplkids.org/.

For more information, call the Library at 903-9841529.

NEWS.HERALD.photo.by.AUSTIN.KING

Kilgore. Public. Library. patrons. use. public. access. computers Monday. The Library has recently adopted.online.programs.to.give.users.new.resources for various learning activities and reading.

+

SATURDAY, JANUARY 5, 2013

KILGORE NEWS HERALD

2 SECTIONS, 16 PAGES

INSIDE SPORTS: A former KHS football standout plays for a national title today on ESPN2.

See Page 8A SHOPPING SMART: Look inside for money-savings specials from CVS Pharmacy, Hastings and Walgreens.

Facebook:

Kilgore News Herald

VOL. 82, NO. 2

AMERICA’S NO. 1 SMALL CITY

CAPITAL OF THE EAST TEXAS OIL FIELD

KILGORENEWSHERALD.COM

City officials ponders downtown's direction Slew of changes prompts policy discussion

By JAMES DRAPER news1@kilgorenewsherald.com

The downtown business climate’s a bit blustery at the moment, and city officials are struggling to forecast the

outlook for 2013.

Last year saw the closure or relocation of several Main Street businesses.

Others changed ownership and just a few days into 2013, more changes are al-

ready rippling through the downtown district.

“There’s been a little bit of a changeover in downtown in the past year. We’ve seen businesses come and we’ve seen businesses go,” Kilgore

Main Street Manager Clara Chaffin explained.

Come Tuesday, she’ll ask city council members to weigh in on the Downtown Overlay District, discussing ideas for guiding and possibly limiting development while seeking direction on still-developing plans for a

Twitter:

KILGOROUND

See KILGOROUND, Page 4A

INDEX Classified.................. ?

Crossword................. ?

Daily Digest.............. 4 Horoscope................ ?

Obituaries................ 4 Sports....................... ?

See DOWNTOWN, Page 3A

By JAMES DRAPER

BILL WOODALL

+

possible entertainment core revolving around the Crim and Texan Theaters.

A lot of change during the past year has been a mix of good, bad and – as yet – uncertain, Chaffin said.

In early, January 2012,

Leveretts Chapel trustees schedule special meeting on school safety

KilgoreNews

THE (REAL) YEAR IN REVIEW: OVERLOOKED in last week’s look back at the News Herald in 2012: - THE story about the crossing-dressing armed robber (he/she held up Rose City Liquor) was republished by the Huffington Post; - OUR story about the Rusk County woman who, while stealing a truck from East Texas Lumber, left her dentures behind – they were subsequently used to identify her – was heavily edited and included in the end-of-year Bum Steer Awards in Texas Monthly magazine.

• RETURN with us now to those thrilling days of…

October, when Nanny Goat’s Café (former) owner Nancy Dupree and celebrity chef Robert Irvine, host of Restaurant Impossible, met for a dust-up in Kilgore Street.

‘OUR’ episode of the popular Food Network show will air Feb. 20 at 9 p.m. (save the date) and will be re-broadcast Feb. 21 and 27.

• WE’RE unclear whose ox is being gored in the New York controversy over publication of a map showing addresses of gun permit holders.

ARE the folks who have a permit distressed by the map or is it the nonpermit holders who fear bad guys – fairly confident there’s no gun inside

50 CENTS

news1@kilgorenewsherald.com

NEWS HERALD photo by AUSTIN KING

Kilgore High School students Jake Jordan and Yasmine Wilson use a Macintosh computer for an assignment in a media class.

KISD continues 'virtual classroom' push

By AUSTIN KING news2@kilgorenewsherald.com

Among many things cited in Stephen F. Austin State University Center for a Livable World’s yearlong study of Kilgore was the use of technology in local schools.

“A virtual classroom can be expanded to a lot of things,” said Mark Lane, Kilgore Independent School District director of information technology. “We’re trying to expand what we can do in our classrooms and expand out virtually.”

It’s no secret that students at KISD schools have access to modern technology.

“We want our kids to be fluent in technology,” Lane said. “It’s easy to tell students not to pull out their cell phones, but when they go get a job most employers have a cell. The kids need the knowledge.”

Some teachers may put modern technology to use to help enrich their student’s learning and class time.

“Back before the break, we had an English class See TECH, Page 6A

Estimate puts campuses' construction completion date 30 days out from start of classes for 2013-'14

By AUSTIN KING news2@kilgorenewsherald.com

“We are still on schedule to receive the new primary school around the first of June,” Revard Pfeffer, Kilgore school district’s superintendent of finance, said this week.

“At the current time, the middle school is scheduled to be completed and turned over to us in August. We’re working with our contractors, See CONSTRUCTION, Page 7A

NEWS HERALD photo by AUSTIN KING

Though construction has continued at a slower pace during the cold weather, Kilgore Independent School District's two new facilities are expected to be completed in time for the 2013 to 2014 school year.

Leveretts Chapel’s school board members will meet in a specially-called session Monday to approve the district’s lapsed safety audit for state-level review.

It’s the LCISD trustees first official meeting since Texas Attorney General Greg Abbott listed the district among dozens of State still others schools also out of compliance with state awaiting laws monitoring school plans from safety preparations.

Following the mass 15 districts shooting at Sandy Hook Elementary School in Newtown, Conn.

Dec. 14, Abbott’s office reported 78 of 1,025 Texas school districts were noncompliant on portions of the Texas Education Code and other guidelines See SAFETY, Page 6A

Chamber executive accepts top post at cattle association

By JAMES DRAPER news1@kilgorenewsherald.com

Mike Coston, who has served as Kilgore Chamber of Commerce president since 2001, will now take the reins of the Texas Longhorn Breeders Association of America.

In a weekly enewsletter Dec. 28, the organization’s board of directors announced their hire of Coston as Pre s i d e n t / C E O , planning to introduce him to the association’s general Mike Coston membership Jan. 18 and anticipating he’ll take office no later than Feb. 4.

Coston submitted his resignation as chamber president Friday morning, See COSTON, Page 7A

Gregg, Rusk County swear-in slate of officials, welcome back incumbents

By AUSTIN KING news2@kilgorenewsherald.com

“Every swearing-in ceremony is special,” said Bill Stoudt, Gregg county judge. “It’s the beginning of something new. A new year that begins with new elected officials is exciting. It’s the beginning of new, everybody is excited.”

Gregg County elected officials, new and old, were sworn in New Year’s Day. Rusk County officials took the oath of office Jan. 2.

Both counties saw a number of heated races throughout 2012. The numerous elections began with party primaries in May. Two major races in each county carried over from party primaries to party runoff elections – the race for Rusk County sheriff and Gregg County commissioner of precinct 3, which includes much of Kilgore and surrounding areas.

The race for Rusk county sheriff ’s

EAST TEXAS HARDWARE

See OFFICIALS, Page 7A

COURTESY photo by CONNIE ADAMS

Born at 2:37 a.m. Jan. 1, Colby Ray Coston is Kilgore and Gregg County's New Year's baby of 2013. PAGE 2A

DOING OUR BEST FOR DO-IT-YOURSELF WWW.ETXHARDWARE.COM +

CMYK

+

LOCAL

SATURDAY, JANUARY 5, 2013

KILGORE NEWS HERALD ◆ PAGE 7A

COSTON

NEWS HERALD photo by AUSTIN KING

Through darkened skies and biting cold, construction of the new two new Kilgore Independent School District schools carries on.

CONSTRUCTION RLM to see if we can move that up to a month earlier.”

Though construction has carried on and the twin school buildings are coming along, Pfeffer noted the recent cold weather has slowed progress.

“Over the holiday, the wind, cold, snow and rain has made it so that they don’t get as much work done,” Pfeffer said. “They can’t lay down concrete if the temperature is 40 degrees (Fahrenheit) or under.

“I think we’re pleased with everything going on, and we just need to make sure we can get into the schools on schedule. Texas Education Association experts say it’s best to be in a school 90 days before a school opens so you can get everything in and prepared.”

Given the current construction schedule, the district may find itself with less than a month to move into the new middle school.

“The most difficult thing is co-

Continued from Page 1A

ordinating all this in a 30-day period,” Pfeffer said. “They’re looking at school calendars for the next year, and if construction is delayed, we may have to delay school starting for a week or so. It’s not something we want to do, but we might have to.

“I say that we’ve done somewhere around 100 hours of planning for this so far. It’s all coming together but it takes a lot of coordination.”

Lately, Pfeffer has been working with KISD faculty to determine the best choices for furniture and aesthetics of the new schools, such as tile and carpet color.

“Right now, there’s been a whole lot of communication,” he said. “There’s a lot more that goes into furniture than people think.

“We have compiled information from our furniture company

NEWS HERALD photos by AUSTIN KING

Judge Brian Hoyle (left) administers a third oath of office to Rusk County District Attorney Micheal Jimerson, flanked by his wife, Mona (far right), son David, sister Michelle and nephew Taylor.

OFFICIALS

Continued from Page 1A

republican candidate began as a six-man Republican primary, which Jeff Price eventually won in a runoff election. Price went on to defeat Oscar Still, Democratic candidate in the November general election.

The 2012 election year was also Gary Boyd’s first election for a full term as Gregg County commissioner, precinct 3.

Boyd secured his office after a four-man race in the Republican primary election race. No democratic candidates ran against Boyd in the general election.

After other Rusk County officials were sworn in, Rusk County District Attorney Micheal Jimerson took the oath in a separate ceremony in the district courtroom, commemorating a recent case that, he said, symbolized the joy of a new beginning.

“We had a little girl who made allegations that indicated that her own family abused her,” Jimerson said. ”We were able to get a warrant out and local law enforcement managed to retrieve evidence of abuse. The offenders got 30 to 40 years for their crime. We then helped her get through adoption in this court, and held a party for her right outside.

“In my office, you see death penalty cases and you put people away for a long time. It’s good to have a little hope.

I want to have hope shine in through here. When you have this kind of case, it gives you hope.”

Gregg County officials sworn in include: Alfonso Charles, judge, 124th district court; Kirk Shields, tax assessor; Ronnie McKinney, commissioner, precinct 1; Gary Boyd, commissioner, precinct 3; Maxey Cerliano, county sheriff; Mike Baggett, constable of precinct 3; Robby Cox, constable of precinct 4.

Rusk elected officials whose new terms began this week were: J. Clay Gossett, district judge; Bill Hale, commissioner of precinct 1; Freddy Swann, commissioner of precinct 3; Sammy Nichols, constable of precinct 1; Elton Brock, constable of precinct 2; Tim Barton, constable of precinct 3; David Guy, constable of precinct 4; Jimmy Skinner, constable of precinct 5; Lanita Whitehead, tax assessor – collector; Jeff Price, sheriff; and Jimerson.

to identify employee needs. The furniture cost for both schools is in the ballpark of $1 million, but we’re working with other furniture vendors to try and lower that price.

One of the benefits of the furniture company we’re using, Virco, is that they’ll deliver and install it.”

With the second half of the school year just under way, the completion of both schools is still several months out.

“We’re working on development committees to work on each part of this project,” Pfeffer said “We’re tying to work together to make sure things don’t fall through the cracks.”

chair-elect Vic Price confirmed, and will continue in the position through the end of the month.

“The chamber has grown very well since he’s been here,” said Price, vice president of distribution for Orgill. “I’m sorry to see him go, and I wish him the best of luck.”

Price, who will be installed as the chamber’s chairman of the board during the organization’s first Business of the Year luncheon Jan. 14, is set to oversee the hiring of a new executive for the group.

Having not had time to confer with the rest of the chamber’s board of directors, Price could only speculate on the coming search for a new president and CEO. A little more than a quarter into the organization’s Fiscal Year – the chamber board adopted the City of Kilgore’s October through September schedule last fall – the group will probably organize a search committee including present and past board members as well as city officials and others, Price said. He expects a hired consultant will assist in the search and interviews, helping narrow down the applicants for a final vote by the board.

“It’s pretty standard,” he said.

In the meantime, tourism director Carol Hinton and office assistant Barbara Garrett will hold down the fort. “My recommendation would be that we maintain Carol and Barbara to handle the day-today operations, and the board will be there for their support until we

Continued from Page 1A

can bring in a new executive.”

Between contacting his chamber board members individually Friday, Coston confirmed his new position in a brief interview and explained the scope of the breeders association’s goal to promote the Texas Longhorn breed.

“It has members throughout the world,” he said.

According to the TLBAA Web site, the association works “to recognize the Texas Longhorn and its link with American history, to promote awareness of Texas Longhorn cattle, to recognize present breeders, to encourage others to develop and maintain herds and to preserve for posterity this magnificent breed of cattle.”

On the group’s Facebook page, Schumacher Cattle LLC welcomed Coston to his new position: “We have great hopes for you and your work taking our breed registry to the next level! We can’t wait to see what you and the rest of the team have in store for us!”

Kilgore Mayor Ronnie Spradlin praised Coston’s tenure with the local chamber.

“Most chamber presidents average about five years. Mike’s been here 12, which says a lot for his ability,” he said. “To better their careers, they have to move on to bigger places, just like football coaches and preachers.

“We’re thankful for Mike being here and wish him well where he’s going.”

Don’t Go Over The Employment Cliff!

SATURDAY, JANUARY 12, 2013

KILGORE NEWS HERALD

Call Candace 903-663-3559

2 SECTIONS, 18 PAGES VOL. 82, NO. 4

AMERICA’S NO. 1 SMALL CITY

CAPITAL OF THE EAST TEXAS OIL FIELD

KILGORENEWSHERALD.COM

City pursues grant for trail system

INSIDE

news1@kilgorenewsherald.com

SPORTS: KHS soccer teams win openers; Bulldogs rule all-district team; East Texas Pump Jacks to return this summer.

See Page 8-9A

Continuing their focus on local quality of life issues, the Kilgore City Council this week gave the green-light to the city’s application for state money to fund the first of seven-planned lengths of a citywide trail system.

With the application deadline looming for

By JAMES DRAPER

Texas Parks & Wildlife grants, Kilgore City Manager Scott Sellers presented his staff ’s working plan for the multi-phase, multi-year, $1.3 million trail project. “I’m very please to bring this forward, very excited,� he said, noting the successful trail system of Kilgore’s “neighbor to the north� – the City of Longview currently boasts about 10 miles of 10-foot-wide certified national

recreational trails in addition to parking facilities and trail markers. “They are planning on looping and connecting all their trail system throughout the city.�

It’s one of several factors, he added, that explain the large size of Kilgore’s commuter population: “A lot of our workforce seems to prefer See TRAILS, Page 3A

SHOPPING SMART: Look inside for money-savings specials from CVS Pharmacy, Longview-Kilgore Cable TV, Pat Anderson Furniture and Walgreens.

Facebook:

Kilgore News Herald

50 CENTS

Sabine ISD committee sends bond to trustees

Twitter:

By JAMES DRAPER

KilgoreNews

news1@kilgorenewsherald.com

KILGOROUND BILL WOODALL A 'DRIVE-BY' shooting New Year’s Eve came startlingly close to wounding a photo of the World Famous Kilgore College Rangerettes.

SOMETIME after midnight – 12:30-ish – a bullet pierced a door at the new Whataburger and burrowed into the sheetrock just below one of the Rangerette photographs adorning the walls there.

YOU'LL be glad to know, most do not believe the Rangerette photo was the target.

IN fact, KPD speculates the errant bullet may have come from the gun of a New Year’s celebrant. • AT least one Rangerette fan at the Cotton Bowl game believes the Rangerettes were shortchanged in the game’s halftime show.

THE ‘rettes were, our indignant fan says, hidden in a mass of flag corps members. • HEADS UP: All members of the Kilgore Historical Preservation Foundation are invited to the annual meeting of KHPF. The event – generally there’s lots of conversation about derricks and such – will be held at 5 p.m. Tues., Jan. 22 in the See KILGOROUND, Page 4A

C-H-A-M-P

NEWS.HERALD.photo.by.AUSTIN.KING

Fifth.grader.Dayton.McElyea.ponders.the.spelling. of. a. word. at. the. Kilgore. Intermediate.

School.spelling.bee.Friday.afternoon..McElyea. won.first.place.after.going.back.and.forth.with. fellow.fifth.grader.Kord.Laird..Ultimately,.McElyea.won.the.day.on.the.word.'caravan'.and.will.represent.the.school.at.an.upcoming.countywide. spelling.bee..In.second.place,.Laird.will.serve.as.McElyea’s.alternate.to.the.larger.competition. .

See SABINE BOND, Page 7A

New board gets briefing on HOT issues

By JAMES DRAPER news1@kilgorenewsherald.com

Members of Kilgore’s Hotel Occupancy Tax Advisory Board will hold their first official meeting Monday morning, continuing the city’s overhaul

of how the tourism revenues are distributed.

Following city council’s official action Tuesday night, four of the members of the board met Wednesday afternoon to review their new by-laws and the current status of the HOT

program with Kilgore City Manager Scott Sellers.

Discussion-only, the board took no action, waiting for the first posted meeting at 10:15 a.m.

Monday at City Hall.

Kilgore levies a seven percent Hotel Occupancy Tax

Classified.............6-7B Crossword............... 3B Daily.Digest............ 4A Horoscope.............. 3B Obituaries.............. 4A Sports..................8-9A

on local rented rooms (in addition to the six percent collected by the state) and allocates the money to various organizations. Those, in turn, use the funds to promote tourism in order See HOT BOARD, Page 6A

Kilgore. firefighters. spray.down. a.rental. house.after. it.caught.fire. on.Broadway.

Avenue.

Friday. morning,. interrupting. training. exercises. between. multiple. agencies..

Texas Two-Step fundraiser set later this month

By AUSTIN KING news2@kilgorenewsherald.com

Pam DeCeault hopes to raise $50,000 again this year at the annual Texas Two-Step – this time without swallowing a live goldfish. “We made $50,000 last year,� she said. “I’d certainly like to do that again this year. But, I’m not

Local sales tax check continues positive trend

By JAMES DRAPER news1@kilgorenewsherald.com

There’s a moment every month, some time in the second week, when Kilgore Finance Director Lawanna Williams checks her e-mail, takes a breath and opens the latest news from the state comptroller’s office. “Suh-weet! That is good!� she gushed Wednesday morning – Kilgore’s sales tax allocation this month once again shows a year-to-year increase, coming in at $971,471.12, “19.12 percent up from last See SALES TAX, Page 6A

NEWS.HERALD. photo.by JAMES.DRAPER

See TWO-STEP, Page 2A

INDEX

After months of discussion and sometimes heated debate, a four-fifths majority of the Sabine ISD Bond Committee voted Wednesday to recommend the district’s trustees call a bond election to fund construction of a new elementary school.

After touring the current facility and hearing the concerns of staff members and teachers, the committee members agreed early on that a new school was warranted but wrangled over the proposed site for the new campus – whether on the current school property or on 54 acres adjacent to Interstate 20.

The 12 members present at this week’s meeting voted unanimously for the bond

Data shows 20 percent increase in felony filings in 2012 in Rusk Co.

By AUSTIN KING news2@kilgorenewsherald.com

According to recently released statistics provided by Micheal Jimerson, Rusk County district attorney, the number of felony and misdemeanor cases filed increased from 2011 to 2012.

“I am a great proponent of open records and open meetings, because such transparency has reduced abuses,� Jimerson said in a press release. “Such transparency will lead to improvements in both value to the taxpayer and quality to the indigent citizen accused of crime.�

In 2012, Rusk saw 328 felony cases

filed, which is 55 more than 2011’s 273 cases. Similarly, the county had 705 misdemeanor cases filed, 49 more than the 656 filed in 2011. “I’m certain that while violent offenses have decreased, theft and burglary have increased,� Jimerson See RUSK COUNTY, Page 5A

Father,.infant.await. mother's.recovery.from coma..See.LIFESTYLES

MPH PO UP 8FMDPNF5P,JMHPSF DPN

LOCAL

KILGORE NEWS HERALD ◆ PAGE 6A

SATURDAY, JANUARY 12, 2013

SALES TAX

Continued from Page 1A

year. Still down from 2011, but I think the 2011 (return) was probably the all-time high January, so this is the second highest.”

In January 2011, the local sales tax allocation totaled $993,377.70, almost 65 percent more than the previous year. But the return dropped 17.91 percent in the January 2012 check to $815,512.74.

Texas Comptroller Susan Combs reported this week that statewide sales tax revenues in December – based on transactions in November – were $2.17 billion, a 9.4 increase compared to the end of 2011.

“Strong sales tax collections continue in most major economic sectors in Texas,” Combs announced.

“The strongest growth was from business spending-driven sectors including oil and natural gas, manufacturing and construction.”

The state’s allocations to cities, counties and other entities total about $530 million this month, a 7.3 increase compared to returns in January 2012.

“You know, this is great,” Williams said. The latest return starts the year off on a positive note, she explained, and marks the third consecutive month of Fiscal Year 2013 (which began in October) that year-to-year returns have showed increases. “I’m happy. That’s off to a good start. If it continues to hold, we’ll be in real good shape.”

Gregg County Sales Tax Allocations

County/City

Current Rate

Net Payment This Period

Prior Year Payment

Percent Change

2012 Payments To Date

2011 Payments To Date

Clarksville City Easton Gladewater Kilgore Lakeport Longview Warren City White Oak County Total

1.00% 1.00% 1.50% 1.50% 1.00% 1.50% 1.00% 1.50%

$3,205.42 $993.77 $69,088.85 $971,471.72 $6,395.61 $2,393,831.72 $344.20 $61,838.46 $3,507,169.75

$4,255.95 $1,024.29 $78,857.13 $815,512.74 $4,426.55 $2,284,810.34 $304.91 $62,767.87 $3,251,959.78

-24.68% -2.97% -12.38% 19.12% 44.48% 4.77% 12.88% -1.48% 7.84%

$3,205.42 $993.77 $69,088.85 $971,471.72 $6,395.61 $2,393,831.72 $344.20 $61,838.46 $3,507,169.75

$4,255.95 $1,024.29 $78,857.13 $815,512.74 $4,426.55 $2,284,810.34 $304.91 $62,767.87 $3,251,959.78

With January’s check, allocations in the first third of FY2013 total $3,983,136.42. Less the third that funds Kilgore Economic Development Corporation, the City of Kilgore’s share totals $2,655,424.28, already 43.5 percent of the year’s total projection, $6,104,391.

With most budget preparations taking place in the summer, city staff held to a conservative course last June and July.

“You always do on sales tax, always do, because that is a number you don’t have control over,” Williams explained, and local sales tax returns are often described as a ‘rollercoaster’ due to fluctuations in the oil-and-gas sector. With other revenues, like property taxes,

“You pretty much know what you can assess and what will be collected. Those are pretty easy to predict.

But your sales tax is all economy driven, and if it goes south it goes south in a hurry.

“We had anticipated more of a downturn.”

Some anxiety remains – seven months in calendar year 2012 brought smaller year-to-year allocation checks, after all, and the year closed 2.95 percent less than 2011 (though still in excess of estimated returns).

Closing smaller than the previous year is not ideal, but it’s not terrible news, Williams said. Conservative budgeting meant the totals still surpassed the city’s needs. Any overage goes straight to the general fund.

“We have enough projects that would consume it plus some – they pick out projects but before we get to them, (but) something always changes. Something always takes priority,” she explained. Once the FY2013 sales tax revenues surpass the budget, “We’ve already got everything ear-tagged. Maybe after this year we’ll be able to re-allocate some of it.”

The excess sales tax revenue also picks up the slack where other funding sources don’t perform as expected. The mild winter, for example, may reduce the city’s share of utility returns due to less need for heating.

“If something else falls short, say one of our other big items for the general fund or franchise fees... it’s

Percent Change

-24.68% -2.97% -12.38% 19.12% 44.48% 4.77% 12.88% -1.48% 7.84%

like putting sand in a box of rocks.

That sales tax filters in and fills in the gaps,” Williams explained.

Throughout Gregg County, half of the eight municipalities drew larger sales tax returns than last year – Lakeport had the largest percentage return (44.48 percent) on it’s $6,395.61 check compared to $4,426.55 in January 2011.

Longview’s allocation increased 4.77 percent to $2,393,831.72.

White Oak’s check decreased 1.48 percent, and Gladewater drew about $9,800 less than last year.

As a whole, Gregg County’s total allocations were 7.84 percent larger than January 2011 while Rusk County’s checks totaled 6.48 percent more.

KPD prepares next round of Citizens Police Academy

By AUSTIN KING news2@kilgorenewsherald.com

Kilgore Police Department is preparing to host another class for residents interested in learning more about the inner working of the local department.

Applications for this year’s citizen’s police academy class are now available.

“It’s an eight-week course,” said Roman Roberson, KPD captain. “We’ll meet Thursday nights, and our first class will be Thursday, Feb. 28 at 6:30 p.m.”

According to Roberson, the class has a limit of about 25 members. The final day to register for the course is Feb. 21.

“It’s important to get your application in early and get your seat reserved,” Roberson said. “We have 10 applications already, so it’s filling up quickly compared to last year.

“We do a lot of hands-on activities. If we have a class of more than 25 or so, it gets difficult to work with everyone.”

Participation is free. Applicants must be at least 21 and either live or work in Kilgore to enter the course. Also, applicants must not have a felony or arrest on anything higher than a Class B misdemeanor in the past two years. Applicants who served in the military in the past two years must not have received a dishonorable discharge.

“You can find applications on our website,” Roberson said.

“You can also contact me to have an application delivered, or get one at the station.”

According to Roberson, those who sign up for the course can expect to take part in a number of activities and learn more about law enforcement in Kilgore.

“We try to do real hands-on activities,” Roberson said. “We’ll go out to the police academy range and try the weapons.”

The final day of class is April 25.

“Once you graduate, you’re eligible to do ride-alongs with officers,” Roberson said, “so you can see day to day activities.

“It’s a good way to come out and see what your police department is all about.”

NEWS HERALD photo by NATALIE GUNN

A crew from T.J. Construction of Troup demolishes the old Kilgore Treasure Chest building on Commerce Street Thursday. The building, which formerly housed Bethlehem Supply, was one of the last buildings erected during the oil boom.

HOT BOARD to generate more ‘heads in beds’ at the nine hotels and motels operating within the city limits.

The state maintains a set of guidelines and approved uses for the money, emphasizing a two-pronged approach, that “every expenditure must DIRECTLY enhance and promote tourism AND the convention and hotel industry” within nine stated categories of expenses.

Enforcing the directive now falls to the members of the HOT advisory board, including hoteliers Rohena Patel and Pete Patel, restaurateur Gary Beasley, community member Evelyn Bolding and council representative Bobby Hale, who abstained from the council’s 4-0 vote Tuesday.

“In the past, the city council has received all the HOT funds,” Sellers told the group. “The hotels are the stewards of that. They collect it, and they pass it on to the city.”

Traditionally, council members took a projected estimate of HOT revenues and divided it between four organizations on a percentage basis – including the Kilgore Chamber of Commerce, Texas Shakespeare Festival, Kilgore Historical Preservation Foundation and Kilgore Main Street Program – distributing the money pro rata throughout the year and saving excess collections.

“It’s a good program, but absent of a board like this it puts the council in a rough spot,” Sellers noted, unable to fully account for the effectiveness of expenditures in addition to other duties.

With renewed interest in the funds last year, a need to more closely-monitor the use of the money and more applicants requesting allocations for Fiscal

Continued from Page 1A

Year 2013, the council in October accepted state HOT guru Scott Joslove’s recommendation to establish the advisory board.

Prior to the advisory board concept, the council heard requests and ultimately allocated $280,500 of projected funds during their annual budgeting process last summer including a maximum of $152,450 for the Kilgore Chamber of Commerce, $35,000 each for TSF and KHPF, $30,000 for Main Street, $10,000 for the East Texas Oil Museum and the Kilgore College Rangerettes, $5,000 for the East Texas Pipe Organ Festival and $3,000 for Kilgore Community Concerts.

After Joslove’s HOT training, the council approved one-time allocations of $5,000 each for the Kilgore Youth Soccer Association and the Texas Hotel & Lodging Association.

The majority of the organizations have already been paid in full; the traditional four – the chamber, Main Street, TSF and KHPF – have received their pro rata funding for October and November 2012.

“Each entity had that budgeted amount allotted to them. It stops in January,” Sellers said. “Everything now gets channeled through this board.”

The council’s direction, he noted, is to keep the organizations at their funding levels, but all will need to re-apply to the advisory board using the newlyadopted application packet later this month. On Monday, the new board is scheduled to decide whether or not to pay-out the organization’s scheduled December allocation.

Moving forward, Sellers said, all ap-

plicants will be tasked with proving their case for funding before the advisory board, submitting detailed plans on how the monies will be used, how many hotel rooms they’re likely to generate, etc.

They’ll also be required to send postevent reports proving the effectiveness of the city’s investment.

“The council, as part of this program, has said that these funds should really go toward events or marketing -- hard, fixed costs rather than salaries,” he added. “It’s going to be, hopefully, pretty black and white. Once you have the application in front of you, they’re just going to have to justify room nights.”

Council members will still be the final authority on allocations, voting on the board’s recommendations and, if necessary, hearing appeals from applicants.

“One of the good reasons to have a board like this is it outlasts the election of a city council,” Sellers said. Also, on Monday, the new board members are set to elect a chairman and choose which members will sit for the entirety of their appointed two-year terms and who will sit, initially, for half a term in order to stagger appointments. “You guys are going to understand what the statute is and what the purpose of these funds is. In the end, it has to benefit the hotel industry. It’s pretty darn clear what you can spend it on.”

As a hotelier, Pete Patel said he thinks the board is a great idea, a means to ensure the collected taxes are fueling more hotel stays.

“I was actually pushing for it,” he said.

“It will justify the funds being used and spent. It’s great for Kilgore.

“Bottomline, end goal, with these funds is to put heads in beds.”

Get instant updates online at www.KilgoreNewsHerald.com

+

WEDNESDAY, JANUARY 16, 2013

KILGORE NEWS HERALD

1 SECTION, 10 PAGES

INSIDE

VOL. 82, NO. 5

AMERICA’S NO. 1 SMALL CITY

CAPITAL OF THE EAST TEXAS OIL FIELD

Holda sets goals for next five years

SHOPPING SMART: Look inside for money-savings specials from Atwoods, Char-Burger Stockade, Conaway Homes, DirecTV, East Texas Hardware, Family Dollar, Johnny's Ozark Fried Chicken, KC-Parks Fitness Center, Pizza Hut and Walmart.

Kilgore College President Dr. Bill Holda has received another extension on his contract.

“We’re really pleased with the direction that Dr. Holda is going,” said William Rob-

Facebook:

By AUSTIN KING news2@kilgorenewsherald.com

erson, KC board of trustee’s president.

As with previous contract extensions, Holda’s contract was extended by one year Monday evening after the KC board concluded an hour-long closed-door session.

“I’m probably the only col-

lege president in the state who doesn’t have a rolling, three-year contract,” Holda said. “I’m glad to have a job for another year. My contract is subject to evaluation every January.”

Holda explained that the board of trustees begins to evaluate his yearly performance as early as November each year.

With his contract in place for another year, Holda looks to continue to try and accomplish numerous goals he has set out before his eventual retirement.

“I really don’t have a magical date that I plan to retire,” Holda said. “In the next four See HOLDA, Page 3

Twitter:

KILGOROUND BILL WOODALL

+

See KILGOROUND, Page 4

INDEX Classified.................. 8 Crossword................. 7 Daily Digest.............. 4 Horoscope................ 4 Obituaries................ 4 Sports....................... 9

Dr. Bill Holda

Main Street chief offers options for downtown

KilgoreNews

IT’S TRUE… there are folks out there who were celebrating this morning’s sleet and ice. We don’t know why.

• GOOD news – we think – for those who fret over what goes into the city’s waste water treatment system.

OUR newspaper, which has been printing mostly with petroleum-free soy inks on mostly-recycled newsprint for many years, has installed new prepress equipment which will eliminate any silver and “difficult” wastes from the “front-end’ of the printing plant. The only chemical – aside from H2O – used in our pre-press system will be gum arabic, an edible substance made from the hardened gum of an African acacia tree.

• MERLYN Holmes, Amber Taylor, Paige Brewer, Derek Payer-Smith, Rachel Palmer, Lacey Krantz, amy Mims, Wendy Crim, Bill Phinnie, Erin Gorman, Brandon Schamber, Micheal and Mona Jimerson, Pat Nault, Jeff Thrower, Bob Martin, Jamie Henson, Fallon Burns, Maxey Cerliano, Julie Beck, Karrie Jackson, Ashton Johnson, Nelda Densman, Benjamin Woods – the celebrity waiters for the January 26 Texas Two-Step gala benefitting Kilgore Boys and Girls club and Kilgore

50 CENTS

College trustees extend president's contract

SPORTS: The East Texas Pump Jacks have a new head coach, and KHS soccer is red-hot early-on.

See Page 9

Kilgore News Herald

KILGORENEWSHERALD.COM

By JAMES DRAPER news1@kilgorenewsherald.com

NEWS HERALD photo by JAMES DRAPER

RAIN, SLEET AND (maybe) SNOW – City of Kilgore roads employees remove cracked asphalt from South Street Tuesday afternoon after spending their morning spreading sand over potentially-icy roads and bridges. The Kilgore Police Department worked a fourvehicle incident on Highway 259 North and the loop Tuesday morning and cautioned drivers to be extra careful during the winter weather: "Over the next few days we will see additional light icing on bridges and overpasses, especially in the evening, night and morning hours." As the city's sanding efforts will continue, "Limit your travel over the next several days if possible," the department warned.

It’s been more than six years since the City of Kilgore resurrected its Main Street Program initiative.

“We noticed that we needed some help, we needed to change the way downtown was being used,” Main Street Manager Clara Chaffin reminded Kilgore City Council members last week. “We needed some incentives to get the businesses up and running, make downtown a viable and entertaining place.”

The future of the program, she said, depends in large part on the council’s vision on how to move forward, how to continue defining, directing, fueling and, if necessary, restricting growth downtown.

Since 2006, the downtown has seen drastic changes, from extensive road See DOWNTOWN, Page 3

Sabine ISD trustees schedule meetings with architects to develop details of new bond

By JAMES DRAPER news1@kilgorenewsherald.com

It’s imperative that the Sabine ISD trustees’ upcoming vote on a new bond election not splinter the community, board president James Gray says.

Monday night, after hearing the bond steering committee’s official recommendation to proceed with a bond election to fund the construction of a new elementary school, Gray underscored his commitment that the seven-member board’s ultimate decision on the bond, and its particulars, be unified.

“The charge to the board is to work with the architects to design a bond to put forward to the voters,” Gray said. “We will take a vote. We do want See SABINE BOND, Page 3

Youth council develops plans for Texan party

By AUSTIN KING

news2@kilgorenewsherald.com

The Texan Theater in downtown Kilgore is well on its way to being illuminated by Kilgore Youth Advisory Council.

A black light dance party that will Membersof the Kilgore Youth Advisory Council meet Tuesday in the Kilgore Chamber of Commerce offices.

heavily involve glow sticks and neon lights has been planned for the dilapidated theater Friday, Feb. 1.

High school students across East Texas have been invited to attend the first Neon Night at the Texan Theater, hosted by KYAC. “We’re on track to have the theater cleaned out by Jan. 18, so it looks pretty good down there so far,” said See KYAC, Page 3

COURTESY PHOTO

James Robinson (left) and the Rev. Earl 'Buddy' Duggins burn Forest Home Baptist Church's note Jan. 6 during a celebratory service marking the end of the church's indebtedness for the construction of the new sanctuary, saying farewell after paying off the total project cost of $5.3 million for renovation of existing structures as well as the worship center.

HOT board members await new applications from funded groups

By JAMES DRAPER news1@kilgorenewsherald.com

They’re likely to keep their budgeted amounts, but the four organizations receiving monthly allocation from Hotel Occupancy Tax revenues are being asked to resubmit their requests and make their case for ongoing funding from the tourism dollars.

In a unanimous vote Monday, the members of the newly-cre-

NEWS HERALD photo by AUSTIN KING

+

CMYK

ated HOT advisory board recommended Kilgore City Council members approve the entities’ December allotment, their third tourism-tax payment of Fiscal Year 2013. January’s disbursement, however, and the rest of the groups’ monthly checks hinge on their successful application to the board in the next few weeks.

“We have a fiduciary obligation See HOT FUNDS, Page 2

LOCAL

KILGORE NEWS HERALD ◆ PAGE 2

WEDNESDAY, JANUARY 16, 2013

LCISD trustees renew superintendent's contract through 2018

By J. M. JONES

joejones@kilgorenewsherald.com

Leveretts Chapel’s accountability rating for School Year 2011-2012 was acceptable, from figures in the Academic Excellence Indicator System (AEIS), Superintendent Donna Johnson told school trustees Charlie Fleming, Larry Lilly, Howard Rhodes and Jimmie Waller at their meeting Monday evening.

In addition, the trustees renewed Johnson’s contract through June, 2018.

The AEIS rating, applying to grades 10 and 11, gave the district a 99 percent passing score in grade

HOT FUNDS

10 English Language Arts and a 99 each to grade 11 Math and Social Studies. Science in grade 10 received a 73, Social Studies a 91.

Grade 11 had an 88 in ELA and a 93 in Science.

Adequate Yearly Progress federal goals, based on testing for all three levels at Leveretts Chapel in the same school year were encouraging, Johnson continued.

Elementary ELA results were 85 by all students, short of the goal of 87. Math in elementary was 86, past the set goal of 83. Through small number analysis, junior high met both goals of 87 (ELA) and 83 (Math) with school scores

of 85 and 79 respectively. High school goals of 87 for ELA and 83 for Math were 86 and 74 – again through small number analysis.

Overall, the district improved in Math by two percent in 20112012, Johnson commented. But LC was graded a Not Met status for ELA. The Texas English Language Proficiency Assessment System (TELPAS) report progress in 2012-2013 was released. TELPAS grades listening, speaking, writing and reading for Pre-kindergarten to first grade and listening, writing and speaking grades in grades two to twelve.

Levels are beginner, intermediate,

advanced and advanced high.

Leveretts Chapel has 39 ESL students in grades pre-kindergarten to eighth and none in high school.

In first grade, four students rated intermediate and another four in advanced levels. Second grade had one in advanced and two in advanced high. Third grade had one intermediate, three advanced and one advanced high. Fourth grade: two intermediate and three advanced high. Fifth grade: One advanced. Sixth; one advanced high.

There were none in seventh grade and two advanced high in eighth.

The remaining 14 students in prek and kindergarten did not apply

to TELPAS. Johnson praised the 20 Lions in the Gifted and Talented Program, ranging from third grade to the seniors. Each spends 45 minutes a week various activities such as book writing, debates, painting and inventing.

The board discussed in executive session, then openly chose to renew Johnson for an contract extension to 2018. Only Trustee Robbie Waller was absent.

The board also raised mileage and travel rates from 55.5 to 56.6 per mile, $46 for meals per day and $77 a night for lodging.

Continued from Page 1

now to ensure those funds are expended appropriately per state statute,” Kilgore City Manager Scott Sellers explained.

Raised through a seven percent tax on rooms rented at nine local hotels and motels, the collections are meant to be invested in events and programs that both fuel tourism here and bolster the hotel and convention industry by putting ‘heads in beds’ through statutorilypermitted expenditures.

Retooling the HOT program since October, “This first year’s a little different than all subsequent years,” Sellers said. “Since we were right in the middle of creating this board and getting educated on how this is supposed to work, the council had already considered and allocated those funds for the four entities.

“We’re not going to change the commitment to any one of these entities, but each entity has to justify what goes to them.”

In their last budget cycle, city council members divided $280,500 in projected collections between the Kilgore Chamber of Commerce (60 percent of revenues, capped at $152,450), Kilgore Historical Preservation Foundation and the Texas Shakespeare Festival (13.86 percent each, maxing out at $35,000) and the Kilgore Main Street Program (11.88 percent of total collections, up to $30,000).

Once the organizations have reached their maximum allottments, additional collections will be set aside with approximately $80,000 dollars of past, excess revenues awaiting one-time allocation.

“We’re on the hook to make sure they’re doing what they said they’re going to do for the request,” board member Gary Beasley said. “Hopefully they’re creating revenues in the event where this isn’t their primary source of income or revenue.”

The grouped adopted a change to their by-laws Monday, reducing the 90-day lead-time for potential HOT-funded requests to 60 days. That time frame, the board members agreed, will still reinforce to any requesting organizations the need to submit their applications well in advance of a planned event, allowing time for the board’s review, decision and ratification by city council members.

“If you’re doing a larger event, you better have thought about it more than 60 days,” council representative Bobby Hale said.

In the future, those organizations that receive monthly allocations from a pre-set amount in the budget will need to submit their annual funding requests in advance of the city’s budgeting process in June and July.

“Those four really haven’t changed over the past several, several years. Those are the ones we really have to budget for,” chairman Pete Patel noted. “Other onetime events, those are easier: one amount, one check. It’s a lot easier for us to say ‘yay’ or ‘nay.’”

In addition to their applications – noting marketing plans, estimates of hotel stays and other ways to show a return on the city’s investment – and post-event followups, the long-funded organizations should also be required to submit monthly expense reports, Patel said.

“That way everyone knows where the funds are being spent.”

In addition to the by-law change and electing Patel as chairman, in other housekeeping business for their first official meeting the board members staggered their terms: Patel, fellow hotelier Rohena Patel and Hale will all serve two years, initially, while Beasley, a restaurateur, and community representative Evelyn Bolding accepted one-year terms. All can be reappointed in the future.

Moving forward, the board members will meet regularly at 3 p.m. on the first Wednesday of each month or for specially-called meetings, especially in the immediate future while they bring the program up to speed. The group’s next meeting is set for 3 p.m. Jan. 23 – with the application packet now available online at cityofkilgore.com, Pete Patel will contact the four organizations with ongoing funding to arrange their request resubmission this month.

“They’ve already planned forward for this Fiscal Year on the funds they’re waiting on,” Beasley noted.

Starting up, the 60-day period should be waived for those organizations, Hale said, giving them the chance to make their case as soon as possible to avoid an interruption in funding permitted events.

“They’re going to have to come back in and submit an application for the remaining funds and basically justify the funds we’ve already allocated to them,” he explained. “For the remaining funds that you’re supposed to get now through the end of the Fiscal year, you’ve got to justify those.

“The question is, are the funds going for an approved HOT function?”

NEWS HERALD photo by AUSTIN KING

Kilgore Code Enforcement Officer Justin Windham (center) and Special Service Superintendent B.J. Owen meet with other area code enforcement officials Tuesday at City Hall, comparing notes on common standard procedures and swapping ideas to find new ways to mitigate code violations.

KIBA talks codes, signage with city employees

By JAMES DRAPER news1@kilgorenewsherald.com

With a stretch of Interstate 20 now within the city limits, the City of Kilgore is putting some thought into what kind of signage it should feature at the town's entrypoints.

Meeting with Kilgore Improvement & Beautification Association members Monday, Kilgore Planning & Zoning Director Carol Windham asked for the group's input on how to greet interstate visitors and draw them into the city.

"We're looking for somebody to partner with us on this signage," she explained.

Even coordinating with the Texas Department of Transportation – which maintains a landscaping cost-sharing program – Windham said the two planned signs (at highways 42 and 31) will be fairly expensive, ranging from $75,000 to $140,000 according to the City of Longview's experience with its own interstate signage.

"It's a pretty big project," she said.

The cost will depend largely on the

preferred design for the signage, "It's how elaborate."

State-level planners will help design the entrypoints in terms of size, landscaping and other details, she added.

The final product will probably be as 'non-maintenance' as possible.

As far as KIBA is concerned, "I don't think we're necessarily looking for funds. It's more of the support," Windham explained. "KIBA, which is about beautification, it would really push that with TxDOT. Justin Windham, who also attends KIBA's meeting in his capacity as Kilgore Code Enforcement Officer, gave the group an update on his department's recent 'Code Blitz' in the College Park area.

A new laptop and air card allows for more time in the field, Windham explained, instead of behind a desk.

"We're still over there, looking for new violations over there, trying to make as big an impact as we can," he said. Meanwhile, "We're currently working on mapping every oil and gas well within the city limits."

In case of a fire at a well or tank battery, emergency personnel will have immediate access to relevant information about the site. The department is also sharing information with East Saltwater Disposal, mapping transmission lines within the Kilgore fire district – "We can see exactly what we're dealing with."

On Tuesday, Windham met with Kilgore Special Services Superintendent B.J. Owen and other area officials at City Hall for the first East Texas Code Enforcement Officers Meeting, inviting representatives from Longview, Tyler, Gilmer, Carthage, Marshall and Overton to swap ideas and identify common procedures.

"I don't want Kilgore to be too extreme, but not too lenient either," Windham said.

In other KIBA business Monday, White Elephant Depot Manager Chris Barr offered a report on the discount outlet's final quarter of 2012 – volunteers cleared $883.77 of typically 50-cent merchandise in October, $1,246.95 in November and $668.76 in December.

Kilgore grads earn spots on ETBU Fall honors lists

ETBU Release

COURTESY photo by SABINE VFD

Sabine Volunteer Firefighters Arien Juneau and Zachary Kent spray down the Colbert home on West Goforth Road Monday afternoon. According to Sabine VFD Fire Chief Joe Johnson, the 1,200 square-foot home was a total loss, "Totally gutted out. They lost everything. We connected them with Red Cross to start assisting them." According to the department's incident report, crews arrived on the scene at 12:54 p.m. after the alarm was issued at 12:40. The Gregg County Fire Marshal's Office is investigating the cause of the fire: the family was out of the house at the time of the blaze, which the volunteer department – along with Kilgore Fire Department and Kilgore Rescue – had under control by 2:35 p.m.

MARSHALL – East Texas Baptist University has recognized its students for outstanding academic achievement during the 2012 Fall Semester with the release of the Fall Dean’s List with Honors and Dean’s List.

The Dean’s List with Honors are students who have a 3.5 grade point average or above. The Dean’s List is students who have a 3.25 to 3.49 grade point average.

Kilgore-area students recognized on the Dean’s List with Honors include Dana Boyd and Brittany Conner; Dean’s List honorees include Justin Adams, Brett Forbus and Hannah Jacobs.

FYI

KILGORE NEWS HERALD PAGE 4A

SATURDAY, JANUARY 26, 2013

DAILY DIGEST

OBITUARIES EARLENE CARLILE Graveside services for Earlene V. Carlile, 74, of Liberty City, were 3 p.m.

Wednesday, Jan. 23, at Lakeview Memorial Gardens.

Mrs. Carlile was born February 27, 1938, in Tupelo, Mississippi, to Jessie and Alice Noel Tyson, and passed from this life on January 18, 2013 at her home in Liberty City.

Earlene worked for many years for the Hallmark WILMA WOODS Services for Wilma Woods, 91, are scheduled for Saturday, Jan. 26, at 2 p.m.. in the Chapel of Rader Funeral Home with Reverend Jim Salles officiating.

Burial will be at Kilgore City Cemetery. Mrs. Woods passed away on Wednesday, Jan. 23, 2013.

The family will receive friends at Rader Funeral Home on Saturday, Jan. 26 from 1-2 p.m., prior to the service.

She was born on Oct. 29, 1921 in Wilson, Oklahoma, to the late Joseph Edward Victor Vaughan and Ruthie Lillian Little Vaughan. Mrs. Woods graduated from Kilgore

Company, She adored her grandchildren and loved to

go to garage sales, and she absolutely loved the western channel Mrs. Carlile is preceded in death by her husband, Jesse Carlile.

She leaves behind to cherish her memory her children, Steve Tuel and wife Cheryl; Sherry Eversole and husband Stan; David Little; Chris O’Rourke; Sandra Walsh and husband Scott; Cherie Tweedie and husband Dale; Dalen Dowell; Doug Carlile and wife

Monique; Cheryl Jackson and husband David; and Scott Carlile; as well as 26 grandchildren; 17 great grandchildren, a sister, Dorothy Tyson of Stillwater, Oklahoma and special friends; Linda Turk and BettyAdkins.

The family would like to express a special Thank You to Ashley Walsh, Mark Walsh, Brianna Jones and John Howe who made the end of her life so very special.

High School in 1939. She attended Kilgore College, then returned to Kingston, Oklahoma where she met and married Wilson W. Woods on August 23, 1941.

The Woodses settled back in Kilgore in 1945.

Wilma established herself as a business woman and became the owner and operator of the Leisure Corner Framing Shop. She was very involved in the community serving as a member of the Chamber of Commerce and an active member of Highland Park Baptist Church.

Wilma is survived by her daughter, Emily Livingston of Saginaw, TX; sister, Shirley Elizabeth Loar of Paris, MO; granddaughter, Brenda Dawn Siewert and husband David of Lebanon, TN,: grandson, Joshua Livingston of Saginaw, TX; and great-grandchildren, Jessica Livingston Siewert, Kayla Livingston,

Kortney Livingston and Colton Siewert. She is also survived by numerous nieces and nephews. She was dearly loved and will be missed by all of her family and friends that she leaves behind.

She is preceded in death by her husband, Wilson W. Woods; children, Brenda Sue Woods and William B. Woods; a grandson, Kenny Livingston; two brothers and four sisters.

Memorials may be made to American Cancer Society or Alzheimer’s Association.

Please leave online condolences at www.Raderfuneral home.com

CAROLYN SANDERS Funeral services for Carolyn Joyce Sanders, New London, were Wednesday in Burrows Overton Funeral Home with the Rev. Johnny Wright officiating. Burial will be in Lee Cemetery in Winnsboro, under the direction of Burrows. Mrs. Sanders died Sunday, Jan. 20, 2013 in a Longview hospital after a lengthy illness.

She worked 37years as an LVN at UT Health Center in Tyler and various nursing homes in East Texas.

She attended Robert E. Lee High School and nursing school.

She was preceded in death by her husband, Bill Troy Sanders (Toby); brother Phillip Johnson; sister Linda Johnson; parents Robert and Pearl Lee Johnson; and a grandson.

She is survived by sons Troy Sanders of Joinerville, Kimbell Sanders of New London, Michael Sanders of Turnertown; brothers Fred Johnson of Flint and Robert Lee Johnson of Teasville; sisters Violet Burris of Tyler, Lillian Johnson of Tyler, Pearlene Pierce of DeBerry and Darlene Lippescot of Lake Palestine; and four grandchildren, Twila Sanders, Faith Sanders, Brandon Sanders and Blake Sanders.

ARCOLA MARTIN Graveside services for Arcola ”Grancy” Martin, 85, of Kilgore were Thursday, Jan. 24 at at Danville Cemetery with Rev. Darwood Galaway officiating under the direction of Rader Funeral Home in Kilgore. Mrs. Martin died Tuesday, Jan. 22, 2013 in Kilgore.

She was born Jan. 28, 1928 in Matador, Texas, to the late Johnny Grace and Ollie Freeman.

Mrs. Martin was a teacher for 13 years and enjoyed making the prayer shawls and blankets for St. Luke’s United Methodist Church.

Arcola is survived by her son, James Dwain Martin of Houston; three daughters and sons-in-law, Phyllis and Mel Elliston of Florida, Sherry and Robert Ellis of Kilgore and Marla and Steve Geil of Longview; sister, LaJean Graham of Denver City, Texas; eight grandchildren and 15 great-grandchildren.

SHOW TIMES SAT.& SUN.

1:40 7:00

3D

*

2D

*

9:30 4:10

MAMA SILVER LININGS PLAYBOOK ZERO DARK THIRTY

2:00 4:20 7:10 9:20

She is preceded in death by her first husband, James Martin, and second husband, Wayne Martin, two brothers and one sister.

Please leave online condolences at www.Raderfuneralhome.com DANHORTON Graveside services for Dan Horton, 88, of Kilgore will be 4 p.m. Saturday, Jan. 26 at Danville Cemetery with Reverend Charlotte Austin and Reverend Ralph Rudy officiating. Mr. Horton died Thursday, Jan. 24, 2013 in Longview.

Dan was born Jan. 2, 1925 in Arp. He retired after 38 years as a troubleshooter for SWEPCO. Mr. Horton attended D a n v i l l e Methodist Church.

Mr. Horton is survived by his wife, Martha Horton of Kilgore; two sons, James and his wife Juanita Horton of California and Robert Horton of Lakeport; two daughters and sons-in-law, Debbie and Ricky Bain of Bryan and Sue and Steve Sewell of Louisiana; seven grandchildren; nine great-grandchildren; and several nieces and nephews.

He was preceded in death by a grandson.

Memorial contributions may be made to Danville Methodist Church.

Please leave online condolences at www.Raderfuneralhome.com MARION COLLEY Graveside services for Marion F. Colley, 85, Overton, were Jan. 24 in the Brackettville County Cemetery, Brackettville, Texas.

Mrs. Colley died Monday, Jan. 21, 2013 in Kilgore. She was born Nov. 18, 1927 in Brackettville to the late Carl and Edna Dayton Rice Kartes.

She moved to Overton from Corpus Christi in 2004. She had worked as a secretary for Bell Telephone Company

and later she worked as secretary for a Credit Bureau. She was also owner and operator of the Omaha Cafe in Omaha, Arkansas.

Besides her parents, she was also preceded in death by three brothers, Adolph Kartes, Charles Kartes Jr., and Donald Kartes.

Survivors include two sons and daughters-in-law, Floyd and Claudia Colley, Spring; Don and Marsha Colley, Overton; a brother, Eddie Kartes, Grand Prairie; nine grandchildren, 20 great-grandchildren; and numerous nieces and nephews.

Pallbearers were Floyd Colley, III, Michael Colley, Brandon Colley, Shane Colley and Matt Wendel.

Online registration and condolences are available at www.cottlefuneralhome.com SHERRY LONGMIRE Funeral Services for Mrs. Sherry Kay Longmire, 54, of Richmond, Texas, will be 10 a.m. Monday, Jan. 28 in the Rader Funeral Home Chapel in Kilgore with Pastor Mike McGuire officiating. Burial will follow at Danville Cemetery.

The family will receive friends at the funeral home Sunday from 5-7 p.m.

Mrs. Longmire passed away Thursday, Jan. 24, 2013 in Houston.

Sherry was born Jan. 27, 1958 in Kilgore, daughter of Bobby Eugene Clark and June McBride Clark. Sherry grew up in Kilgore, but she and her husband Jerry have lived in Richmond for the past several years. Sherry was a stay-at-home wife and mother.

Sherry is survived by husband, Jerry Wayne Longmire Sr. of Richmond; son, Jerry Wayne Longmire Jr. and wife Rachael of Conroe; daughter, Kimberly Kay Longmire of Richmond; mother, June Clark of Overton; sisters, Barbara Tidwell of Kilgore, Janet Casanova of Overton and Lori Clark of Van Nuys, CA.; brother, Bobby E. Clark Jr. of Overton; a granddaughter and grandson; and several nieces, nephews, aunts, uncles, cousins and friends.

She is preceded in death by her father, Bobby Eugene Clark Sr., and an aunt.

Please leave online condolences at www.Raderfuneralhome.com

MONDAY COME TAKE OFF POUNDS with TOPS (Take Off Pounds Sensibly)! We have fun, contests, prizes! Located at St. Luke’s United Methodist Church. Contact Judy, 903-5761947, or Karen, 903-984-078.

THURSDAY ST. LUKE’S UNITED METHODIST CHURCH invites the public to attend Kilgore Café Church at 5:30 p.m. every Thursday. Enjoy a free meal and worship to follow with Rev. Darwood Galaway. 3503 N. Hwy 259, Kilgore.

FYI KILGORE HEIGHTS PTA is compiling a cookbook for our annual fundraiser and we need YOUR help! We are taking open submissions for your best recipes. Appetizer to dessert and everything in between is needed, including beverages (non alcoholic beverages please), breads, and kitchen basics. Forms will be available at Heights, or you can submit on your own paper-please include your name, dish title, dish type (appetizers, dessert, etc.) ingredients, and preparation instructions. You can also print the Recipe Submission Form at www.cookbookprinter.com Please submit your recipe at the Kilgore Heights Front Office, to a PTA officer, or by email to calicomeezer@gmail.com.

Recipes MUST be received by February 15 (NO late submissions excepted). Not every submission may make it, and feel free to submit more than one recipe (please use separate sheets). Also, if your business, organization, or church would like to be a sponsor, please email calicomeezer@gmail.com for more infornation. THANK YOU FOR YOUR HELP! OVERTON/NEW LONDON OVERTON ROTARY CLUB District 5830 meets every Friday from noon to 1 p.m. in Overton Community Center, 601 Meadowbrook, in City Park. The president is Monty Rouquette.

MCMILLAN MEMORIAL LIBRARY hosts Baby & Me, special advice for the parents of newborns and toddlers, on Wednesdays again at 10:30 a.m. Also back is Quilter’s Meet, Tuesdays at 10 a.m. For more info, call 903-8343148 between 9 a.m. and 5 p.m. weekdays.

OVERTON ROTARY CLUB’S ANNUAL CHILI SUPPER and Auction is Thursday, Feb. 7 at 6 p.m. in Overton Community Center, 601 Meadowbrook Drive. Chili will be served.

The auction will begin immediately following. Tickets are $5 for adults and $3 for children age five to 12 years.

Children under five are admitted free. All proceeds will go to local Rotary charities, including scholarships. Tickets can be purchased from Overton Rotary members and from J. M. Jones at the News Herald office.

THE QUEEN PRICE GARDEN CLUB OF OVERTON is selling its cookbook, A Bouquet of Recipes, with more than 300 recipes from appetizers to desserts. All proceeds will benefit the club’s scholarship funds and other community projects. For cookbook prices and more information, call Mary Pat Eaves at 903-834-7226.

OUR LADY QUEEN OF ANGELS CATHOLIC CHURCH, 707 Bradford, has its Fish Fry on Friday, Feb. 1 from 4 p.m. to 7 p.m. Suppers are dine-in and take-out and $8 for adults and $4 for children. All proceeds go to church charities.

KILGOROUND weapons.

• TOURISM is an industry whose momentum must be difficult to predict.

A BIT more than a year ago, business groups around Lake Fork were surprised – and entertained – when, out of the blue, they were approached by members of an association of smallmouth buffalo and carp fishermen whose objective was a tournament at the lake on the Wood and Rains county border.

IT turns out carp and buffalo tournaments are major fishing events in Europe; crowds of spectators show up to watch as 60pound fish are hauled from the lake or river. The Lake Fork event was a warm-up for the North American championship on the St. Lawrence River.

They’re back this year and bring contestants from across Europe and North America… teams are entered from Romania, Hungary, Germany and elsewhere.

WHEN they go back to Europe, they ’ll leave the live – but probably nervous – fish in the lake and a bunch of new money in the Lake Fork economy.

• THIS WEEK’S BIRTHDAYS include: Jan. 26 -- Bill Ballard, Kim Thurmond, Joyce Davidson, Steve Alexander, Jim Murray, Magen Miller, Laci Laird Canion, Neva Tanner, Jerry Page, J. C. Gossage, Ricky Rentz, Jed McDougal, Adam Clark Crews, Ginny Lynn Anderson, Mandy Griffin Beddingfield, Ernest Mills, Amy Caldwell, Kelvin Mills,

Continued from Page 1 Joshua Staly, Kearia ason, Steven Mauldin, Courtney O’Conner Jan. 27 -- Steve Silvertooth, Patty Tanner, Bea Chandler, Stacy Handley, Lulie Thurston, Jr., Theresa Logan, James Harvey, Stephanie Mills, Shonda Nix, Joanne Dykes, Leon Brown, Jacob Maxwell, Richard X. Cook, Diane Wilson, Ruben Martinez, Jr., Alexzander Mills Jan. 28 -- Jeremy Caddell, Mary Ruth Huey, Maxine Spinks, J.B. Moody III, Julia Adams, Ann Lowrey, Georgia Manning, Mark Hickerson, Katy Cline, Mrs. Don Bone, Michelle Fette, Eddy Holley, Betty Brown, Iran Flynn, Ernie Williams, Eddie London, Michelle Garza, Kristie Parrott, Dakota Watson, Tyler Brennon Smalley, Trevieon Tinney Jan. 29 -- Marsha Bradford, Anthoney Pennington, Helen “Pudge” Griffin, Genna Enman, Darlene Breaux, Justin Ryan Hales, Matthew Floyd, Jonathan Stovall, Viola Burton, W.E. (Bo) White, Christie Copeland, Ron Walker, Jimmy Council, Vicki Hampton, Theresa Ward, Betty Sanches, Bill Holland, Donna Walker, George White, Alice Colbert, Jane Coward, Brian Holcombe, Dottie Littlefield, Shun Lawler, Cori Sherrod, Logan Edmondson, DJ Henry • THIS WEEK’S ANNIVERSARIES include: Jan. 26 -- Jimmy D. and Linda Honzell Jan. 27 -- Joe and Lelia VanMeter, Dr. and Mrs. Robert Hudspeth, Mr. And Mrs. Kenny Hooker, Mr. And Mrs. Doug Carpenter

KILGORE NEWS HERALD

1:30 4:00 7:10 9:35

A locally owned newspaper 610 E. Main St. P.O. Box 1210 Kilgore, TX 75662

1:30 4:30 7:30

PUBLISHERS: Bill Woodall and Jessica Woodall bwoodall@kilgorenewsherald.com & jwoodall@kilgorenewsherald.com

ONLINE TICKETING AVAILABLE $5.50 ALL SHOWS BEFORE 5 P.M. ADD $2.00 TO 3D MOVIES *NO PASSES **NO $4.00 TUESDAY

MANAGING EDITOR: James Draper news1@kilgorenewsherald.com CIRCULATION: circ@kilgorenewsherald.com Published Wednesday and Saturday by Bluebonnet Publishing, LLC, 610 E. Main St., Kilgore, TX 75662. Postmaster please send Form 3579 to P.O. Box 1210, Kilgore, TX 75663. Phone 984-2593. Second-class postage paid at Kilgore, TX 75662. USPS No. 294700 Mail subscription rates: Smith, Gregg and Rusk counties - $38 per year Out of county - $44 per year Out of state - $50 per year

LOCAL

SATURDAY, JANUARY 26, 2013

KILGORE NEWS HERALD ◆ PAGE 5A

HOT board approves allocation for chamber, awaits detailed budget

By JAMES DRAPER

news1@kilgorenewsherald.com

Pending approval by Kilgore City Council members, the Kilgore Chamber of Commerce will receive its January allocation of Hotel Occupancy Tax revenues while the organization’s leadership prepares a projection of anticipated, qualifying expenditures through the end of the Fiscal Year.

Meeting with the members of the city’s new HOT advisory board Wednesday, chamber of commerce board chairman Vic Price and tourism director Carol Hinton explained the difficult task the organization faces at present, paying for its budgeted tourism expenses out of other funds until the hotel tax checks come through.

“In the past the chamber has always operated off an allocation to pay for the visitors center, to pay for the brochures – things we can’t charge our membership for,” Price said. Accepting that council members want to avoid paying salaries out of the funds, typical in the past, he noted other planned expenses that still need the funding. “We budgeted it because we thought it was going to be there this year.

How do we need to handle that as a chamber?”

“Presently we’re taking it out of our operating account which is our membership dues,” Hinton said. “We can’t do that because that’s not what the purpose of the dues are.”

Asking for patience while the advisory committee over-

sees the recent changes in the HOT allocation program, board member Garry Beasley acknowledged the chamber’s predicament, similar to the Texas Shakespeare Festival, Kilgore Historical Preservation Foundation and Kilgore Main Street Program, all of which were granted a monthly share of monthly HOT revenues and must now justify their planned expenses.

“We’re going to transition, obviously. This fiscal year is going to be different from the next fiscal year,” Beasley said.

“We asked you to come here today because you’re unique among any of the applicants in having labor expenses.”

According to Kilgore City Manager Scott Sellers, the path to the current system began almost one year ago when the Kilgore News

Herald requested more information about the city’s Hotel Occupancy Tax revenues, raised through a seven percent tax on local rented rooms and reinvested, through various organizations, to put ‘heads in beds’ and promote tourism.

“Last year, at some point early in the year, questions started getting asked from the paper about expenses, the quarterly expenditure reports,” Sellers explained. “To make a very long story short, we could not produce the reports because, we maintain, we never received them – we were never given the detailed reports that possibly per statute were necessary.”

“Talking to the chamber, when they produced what they said they had given us, they had been giving us what

NEWS HERALD photo by J.M. JONES

The Thursday funeral of Joe Lee Mullican of Arp began in Overton with a motorcycle escort by Brother’s Keepers, a national motorcycle organization of active and retired firefighters. Twenty-four Brothers from the Tyler and Longview groups also served as Honor Guard. Millican, 75, was a volunteer fireman for 57 years and former fire chief of the Arp Station.

Double accident leaves two men dead

By AUSTIN KING

news2@kilgorenewsherald.com

Investigators are still looking into a double-fatality accident last Friday night on Hwy. 31 near the Smith County line about half mile west of FM 2767.

According to a report filed by DPS Trooper Bobby Dean, two men were killed in the second of the two accidents.

At about 7 p.m., a driver in the eastbound lane slowed to turn left and was reportedly hit from the rear by a PT

Cruiser driven by Amanda Staples of Tyler.

Staples’ vehicle was heavily damaged and her vehicle stalled as it moved toward the center of highway. A witness on the other side of the road rushed across and pulled Staples from her vehicle.

Two other men, Dulis Rolando Cervantes and Jason David Albright, both of Tyler, also attempted to reach Staples’ vehicle to help. As they were crossing the highway on foot, they were reportedly hit by a westbound Ford Taurus driven

by Luis Antonio Gauna of Longview.

Cervantes was dead at the scene, and Albright died after being taken to Good Shepherd Medical Center. Gauna also reportedly ran over one of Staples’ arms.

The first witness – the man who pulled Staples from her car – was uninjured.

Gauna suffered minor injuries as a result of the wreck. Gauna and a juvenile passenger in his car were also taken to Good Shepherd.

The report indicates that Gauna’s speedometer was stuck at 60 miles per hour after the wreck.

MEADOWBROOK If the community doesn’t support the Meadowbrook clubs and doesn’t want this then we won’t do it. But we have to give it a chance. A year and a half. That’s what we agreed on as a council to do.

“It’s an amenity we think Kilgore needs and wants.

We’ll see. It’s a work in progress.”

Prior to the city’s meeting Tuesday, the club’s budget gained the approval of Meadowbrook’s advisory board. Overall, the plan anticipates expenses of $850,000 compared to revenues of $778,000.

“The bottom line there, it does not show the course breaking even in the first year,” Kilgore City Manager Scott Sellers noted. “I think that was to be expected, and it’s what Eagle Golf proposed when they came to council, that this would be possibly a two or even threeyear break-even.”

Approximately $80,000 of the budget’s $98,000 deficit is attributed to water and sewer costs, he added.

“Since this is a city facility, the city does still pay the retail rate for water. However, with the board, we have discussed carrying forward an agreement that we had with the interim course management group which was that the water that was used at the course and those expenditures would be put on the city’s books as a receivable

to the city and an amount payable to the city.”

With the council’s agreement, Sellers said, the water bills would still be incurred – the $80,000 would not go away – but payment would be delayed until the course becomes profitable.

“Then it becomes very close to a break even budget, about $18,000 of the subsidy.”

Not listed in the nine-month budget, the council passed a $68,000 stop-gap budget for the club in November and an additional supplement of $18,000 in December. The plan also does not include the $60,000 annual management fee paid to Eagle.

“With the management fee in there you still lose money even with the water taken out,” council member Sherry Bustin noted.

“It’s a work in progress,” general manager Rich Aigner said. “That first year we were anticipating not breaking even, but I can optimistically say that I see in the second year at least breaking even.”

The majority of the budget’s deficits are incurred in the first six months, said McClendon, a member of the club’s advisory board.

“The tail end of the year becomes profitable, according to the plan. That should continue on in subsequent years,” he noted. “I can tell you we, the advisory board, are not planning on sub-

Continued from Page 1A

sidizing the club. This is a startup. It’s something we feel like we have to bite the bullet as we did on some of the infrastructure and get it operational.”

The momentum at the club is strong, Aigner said, and memership director Natalie Cloutre is well ahead of her budgeted goals.

“She’s got 12 new members this month in what usually is not a high membership month. I think that’s only going to increase as the weather gets nicer.”

Membership dues in January amount to $14,760, he pointed out.

“That is the absolute accurate amount that we retained in membership when we went through the files, udpated everything,” Aigner explained. “Going forward in the months, included in that are our anticipated adds or drops in membership.”

March, April and May, in particular, are months of high new member sign-ups, he noted. Other revenues include increasing merchandise sales in the pro-shop, swimming pool fees, tennis court rentals, golf course and driving range usage and food and beverage sales.

“We have about $438,000 budgeted in food and beverage. About $290,000 of that is banquets, events, weddings,” he said. With weddings in Gregg County estimated at 999 in 2013, there

are plenty of opportunities as well. “The food and beverage department at the club was shut down for a while. I think it’s just starting to take off.”

“You’ve done a lot for a first quarter,” Bustin acknowledged.

Pricing for a full golf membership at the club is $150 per month, Aigner said. A golfer who plays four times in a month covers the cost.

“We’ve done some studies of some other clubs in the area. I think we’re pretty fair in our pricing. Four or five months from now, it could always change. As of now, we think it’s pretty reasonably priced.”

After their discussion, the council members unanimously approved the budget Tuesday night.

“This is an annual budget and yet this is a month-tomonth budget,” Sellers said.

“The advisory board will be going over these expenditures every month. The agreement holds the board and Eagle very accountable to what the month-to-month budget is.

“If Eagle does go past – if they spend more than their budget allotment for three consecutive months – the council has the ability to terminate the contract with Eagle or propose some additional sanctions. This is trying to give as much latitude to Eagle as possible. But, it still does give the ultimate control to the city council.”

would be termed a budget, but not an expenditure report.

The city’s finance director, Lawanna Williams, met with the chamber’s administrative assistant, Barbara Garrett, to normalize the chamber’s books, Sellers added, eventually bringing in a CPA to assist.

“They went back a year and a half, two years, recreated some of these reports with detailed expenditures on them.”

Ultimately, in October, the city invited Scott Joslove, president of the Texas Hotel & Lodging Association and the state authority on Hotel Occupancy Tax, to review the local program and hold a training session with representatives of organizations that currently request HOT funds or those that might in the future.

Joslove recommended the creation of the advisory board, Sellers said, as a formal way for the city to track HOT expenditures and ensure they abide by state statutues requiring they both directly impact the hotel and convention industry and conform to nine categories of approved expenses.

“He recommended, especially for this first go at it, the first year, all the expenditures you look at very closely – not necessarily giving money to operations unless they can be tied specifically to an event or project,” Sellers explained. “We can thank the paper for asking the questions because it has really straightened us up on how to put this program together.”

Considering their broad program of work, the chamber is one of the most important entities that receives HOT funds, board chairman Pete Patel said.

It’s a tricky situation, he allowed, in that the chamber and the three other regularly-funded organizations are different from most HOT requestors in requesting annual funding instead of perevent.

“The funds being distributed on a monthly basis, we can still do it that way,” Patel said. Administrative expenses can still be funded, but in all expenditures, “The costs just have to be justified in the (application) packet.”

The chamber did submit their budget in good faith during the city’s own budgeting process last summer, Sellers said. The council approved a maximum allocation of $152,450 and the

chamber continued its budgeting with that in mind.

“You’re trying to run an organization on that budget,” he said. “Those dollars will still be there, kind of on a draw-down basis. You can still request that same amount, so long as it’s justified by the application approved by the board.”

“We don’t want to handicap you now,” Beasley said.

“You have expenditures that you need to cover.”

According to Price, the chamber will immediately augment its application with projected expenses through the next eight months (the organization’s Fiscal Year mirrors the city’s, running Oct. 1 – Sept. 30) for submission at the end of February.

“We have a calendar for the year, so we can go out and look at what we’ve done in the past, what we’re continuing.I won’t say that we’ll have every single thing documented, but we have a good idea,” he explained.

Especially while they search for a new chamber executive, “As a board, I don’t want to start changing things until we have a good system in place. We can run on the precedence of the way things were being done before.”

Moving forward, he agreed with the advisory board’s request to submit quarterly post-expenditure reports for review.

“It’s not the intent of this board to have you come before us every time you have an event,” explained Bobby Hale, the city council’s representative on the board. In the future, a one-time presentation during the city’s budgeting phase, covering the chamber’s annual program of work, would be acceptable. “That’s not to say that if something doesn’t come up during the year that looks like a great opportunity that you can’t come back.”

During their meeting, the advisory board also discussed what multiplier they will utilize in allocating HOT funds according to anticipated hotel stays and in following up after HOTfunded events. The members delayed a decision on the item to allow for further research.

The group will meet again at 4 p.m. Jan. 30, aiming to review allocations to KHPF and TSF, scheduling the Main Street Program and HOT application reviews for Feb. 6.

I have 29 years of experience in selling East Texas

www.rainbowrealtykilgoretx.com 402 N. Henderson Blvd.

REANE WALKER Kilgore, Texas 75662 903-987-1676 cell

Visit the

St. Luke’s United Methodist Sister Church at the

Kilgore Cafe Church

3503 N. Hwy 259, Kilgore

5:30 p.m.

Every Thursday enjoy a free meal and worship to follow

Rev. Darwood Galaway Everyone is welcome

“Take the gospel where the people are”

+

SATURDAY, FEBRUARY 2, 2013

KILGORE NEWS HERALD

Don’t Go Over The Employment Cliff!

Call Candace 903-663-3559

2 SECTIONS, 16 PAGES VOL. 82, NO. 10

INSIDE

AMERICA’S NO. 1 SMALL CITY

KILGOROUND

KILGORENEWSHERALD.COM

By JAMES DRAPER

news1@kilgorenewsherald.com

Ronnie.Morrison,.a.

25-year. veteran. of.

Chamber. business,. will.serve.the.local. organization.on.an. interim.basis.

While they search for a new executive, the Kilgore Chamber of Commerce has tapped a 25-year veteran of the field to lead the organization in the interim.

Thanking outgoing president Mike Coston for his service Wednesday evening, the organization’s leadership announced Friday that Ronnie Morrison, a Henderson resident and Longview native, will take the reins of the local chamber on Monday, Feb. 11.

“He has a lot of experience in chamber work,” board chairman Vic Price said Friday. Retired, Morrison won’t be seeking the See CHAMBER, Page 3A

NEWS.HERALD.photo.by.JAMES.DRAPER

Outgoing.Kilgore.Chamber.of.Commerce.President.

Mike.Coston.visits.with.Pat.Nault.(left).and.Tommy.

Merritt. Wednesday. night. during. Coston’s. farewell. reception.at.the.chamber.

BILL WOODALL

+

YOU’RE LIKELY READING this on Saturday, Groundhog Day. AS I write, on Friday, it appears Laird Hill Louie will see his shadow and we’ll have six more weeks of winter. If those six weeks are as mild as the first six, we’re fine with that.

• SPRING HAS landed, despite Louie, in Henderson where trees in full flower adorn Marshall Avenue.

• WELCOME, Ronnie Morrison, to Kilgore and our Chamber of Commerce – if only briefly.

We’re glad to have you in town.

• WHEN MAYOR RONNIE Spradlin heard that 120 National Guardsmen were going to deploy from here to Afghanistan, he sent a mass email suggesting the community send them off with a steak dinner at the armory.

THE rapid response was overwhelming.

Kilgoreites offered steaks and dessert and help with cooking and cleanup. Quickly, it began to look as if there would be more helping with the dinner than eating.

BUT, this is the military.

Schedules are subject to revision and clandestine plans.

SO, as so often happens around Valentine’s Day, dinner plans appear to have changed.

STAY tuned.

• KILGORE’S Main Street program – along with 67 See KILGOROUND, Page 4A

INDEX Classified.............6-7B Crossword............... 3B Daily.Digest............ 4A Horoscope.............. 3B Obituaries.............. 4A Sports..................... 7A

50 CENTS

Chamber bids farewell to chief, hires interim

SPORTS: Kilgore's girls soccer team gets a last-second win; softball and baseball are on the horizon.

See Page 7A SHOPPING SMART: Look inside for money-savings specials from CVS Pharmacy, J.C. Penney, Walgreens and Walmart.

CAPITAL OF THE EAST TEXAS OIL FIELD

District develops police presence

By J. M. JONES

joejones@kilgorenewsherald.com

NEWS.HERALD.photo.by.JAMES.DRAPER

John. Abrams. (left). and. brother. James. perform. a. foot-stomping,. hand-clapping. finale. rendition.of.the.“Orange.Blossom.Special”.Thursday.night.during.their.show.for.Kilgore.

Community.Concert.Association’s.January.event.

Sabine discusses capacity for desired campus

By JAMES DRAPER news1@kilgorenewsherald.com

The Rock: With an elementary student body hovering around 670 in an outdated, crumbling building, how fast will Sabine ISD outgrow a new 740 maximum-capacity campus?

The Hard Place: If a bond election to build that new campus is going to be a hard sell for the community, how much harder to convince voters to accept the taxes to cover a larger, growthminded facility?

Meeting with their architects Thursday night, Sabine ISD’s

See WEST RUSK, Page 2A

trustees debated how much of a cost, if any, the community will bear in a bond election come May, what the publicly-funded elementary school will look like and how much space it must include, especially if the brand-new See CAMPUS, Page 5A

HONORING DEDICATION

City names public safety building for former chief

Choir.students.prepare.for. upcoming.shows....Page.1B

New cameras offer greater security for KISD buses

By JAMES DRAPER

news1@kilgorenewsherald.com

manager, and was a member of the fire department for 32 years. During his tenure, plans for the public safety center began to

Video monitoring systems in Kilgore ISD’s fleet of buses are nothing new, but the latest upgrade, Jody Sanders hopes, will better ensure accountability for all the district’s drivers and riders.

“Anything that’s taking place on that bus we have recorded,” the school’s transportation director explained Friday. Most often, video review stems from bad behavior. “A driver may write up five kids every day for a week – really, when we pull a video it’s because a parent or whatever is saying they don’t think they’re kid did this. It makes it better for us and

See MOORE, Page 5A

See CAMERAS, Page 6A

By AUSTIN KING

news2@kilgorenewsherald.com

The late Ronnie D. Moore served Kilgore as the public safety director for 19 years. In honor of his contributions, the city on Friday dedicated the public safety center -- behind Kilgore Police Department and next to Kilgore Fire Department – to him.

City, county and officials from nearby towns gathered with Moore’s family in the newly-dedicated building yesterday afternoon.

“All growing programs start with a vision,” said

Creating and hiring a chief of police to guard West Rusk School will be brought to its school board in a special meeting Tuesday evening at 7 p.m. in the school board building at New London.

Superintendent Tommy Alexander said he will make the proposal, “to hire a trained, certified and experienced chief of police to walk the halls of our school and patrol the grounds for school security.”

If confirmed, the West Rusk Police Force will be armed and work with the superintendent,

NEWS.HERALD.photo.by.AUSTIN.KING

Firefighter.Walter.Herrera.carries.the.Texas.flag.Friday.afternoon during.the.dedication.ceremony.of.the.Ronnie.D..Moore.Public.Safety.Center.honoring.Kilgore's.former.emergency.operations.chief.

a training room in which firefighters and police officers can obtain valuable information and experience.”

Before his retirement in 2010, Moore also temporarily served as Kilgore city

KPD chief Todd Hunter.

“Chief Moore developed a plan that would meet all of the fire and police departments’ needs.

“I think Chief Moore’s main dream was to build

EAST TEXAS HARDWARE

DOING OUR BEST FOR DO-IT-YOURSELF WWW.ETXHARDWARE.COM +

CMYK

LOCAL

SATURDAY, FEBRUARY 2, 2013

KILGORE NEWS HERALD ◆ PAGE 3A

Candidate steps up for post on KC board

By AUSTIN KING news2@kilgorenewsherald.com

NEWS HERALD photos by JAMES DRAPER

Former Kilgore Chamber of Commerce President Mike Coston, who has accepted the position of President/CEO of the Texas Longhorn Breeders Association of America, pauses for a picture with chamber tourism director Carol Hinton (right) and administrative assistant Barbara Garrett. (Below) Diana Coston (left) visits with Johnnie McCrory Wednesday night during the chamber's farewell reception for her husband.

CHAMBER champer’s open executive post full-time but will guide the organization’s program of work while a search firm seeks a permanent replacement. “I think he’ll be a good fit.”

According to a press release Friday afternoon, Morrison has extensive experience in chambers of commerce and economic development work, most recently as executive director of the Upshur County Economic Development Corporation. He retired from that position in March 2012, adding another line to a list of postings including executive terms in multiple chambers of commerce in Bryan/College Station, Plano, Lewisville and Rock Hill, S.C. Morrison also worked as a consultant to the Cleveland (Texas) Chamber of Commerce.

“We were pleased to find a person with chamber experience who was in a position to assume the job as interim president,” said Bob Martin, board chair-elect and chairman of the executive search committee. Though not a candidate for the full-time job as president, Morrison “will assist the search committee in the selection of a new chamber president while working with chamber staff and volunteers in the day-to-day operations of the chamber of commerce.”

With a background in English and journalism

Continued from Page 1A

from Stephen F. Austin State University, Morrison also attended economic development programs at Texas A&M University and the University of Oklahoma. He attained the U.S. Chamber of Commerce’s Institute of Organization Management Certification in 1999.

“I’m excited about Kilgore and the opportunity to get back into the chamber business. I’ve been out of it for a while,” Morrison said Friday.

His style, he says, is peoplefriendly. “I think working for a chamber of commerce is a vocation that interacts with people. You have to make people understand that a chamber of commerce is a form of advertisement for a

business.

“My style is to do what I have to do to make things work. That’s what I want to do in Kilgore.”

Keeping in mind that he’s an interim, Morrison said his early plans for the shortterm stint will be to meet as many people as possible who have involvement with the chamber.

“At all levels – including city management, business people and the workers, the people who make things happen. I don’t really have a feel at this point as to what I want to accomplish first.

Just get out and be visible,” he explained. “I’m just going at it with an open mind.

Certainly I’ve talked to some

people already, and I have some ideas.”

Morrison lives with his wife, Patricia, in Henderson. The couple has two grown children and five grandchildren.

Setting a meeting with their chosen search firm in the next two weeks, Martin said Morrison’s hire releases some of the immediate pressure of filling the void in the chamber’s leadership, especially as the overall search and ultimate permanent hire could take as much as six months to find the ideal candidate.

“I think he’s a perfect fit for us for short term. He’ll do great,” Martin said.

“Hopefully, it’s a new chapter for Kilgore.”

By AUSTIN KING Kilgore school board is in the process of interviewing candidates for the superintendent’s job.

“We’ve been in the process of interviewing the candidates yesterday and today,” said board president Janet Marley Thursday evening.

Weather Whys Q: Why do some clouds seem to have striped patterns?

A: Clouds that form in long linear stripes are fairly common, and they are formed by a phenomena known as gravity waves, explains Brent McRoberts of Texas A&M’s Department of Atmospheric Sciences.

“Air generally flows along a horizontal path, but sometimes imbalances in the density of the air cause it to oscillate up and down as it moves along,” he notes. “In striped cloud patterns, the air is flowing perpendicular to the cloud lines. When the air is moving up, the moisture within it condenses, and while the air is descending, the moisture evaporates leading to clear skies. Not all gravity waves, however, lead to these striped cloud patterns. If the air is very moist, there will be full ripple clouds with no clear sky slots in between, and if the air is too dry, there will be no clouds at all. But in all cases, the air is moving in a wavelike pattern.”

Weather Whys is a service of the Department of Atmospheric Sciences at Texas A&M University.

1.25

%

24 month CD- 1.25% APY

School board interviews candidates for superintendent news2@kilgorenewsherald.com

On the first day of filing for Kilgore College board positions, one candidate has already filed for a central zone seat.

“Today is the first day to file for the board election,” said KC President Dr. Bill Holda on Jan. 30. “We’ve already had one person file from the central zone – which covers Kilgore Independent School District’s boundaries – Brian Nutt.”

Nutt is the pastor of Grace Fellowship of Kilgore.

Nutt is seeking the seat now held by R.E. “Sonny” Spradlin.

Spradlin has served on the board for 30 years and has not filed for reelection.

“I probably will not,” he said Wednesday afternoon.

“I’ll make up my mind on the last day to file.”

Incumbents Joe Carrington and Bob Heath have also filed for reelection. Carrington occupies one of KC’s north zone seat, representing White Oak, Sabine and Gladewater school districts. Heath is in KC’s south zone, which includes West Rusk County Consolidated, Leverett’s Chapel and Overton districts.

The last day to apply for election is Friday, March 1 and election day is Sat., May 11. Early voting begins Friday. April 29 and continues through Tue., May 7.

Those interested in applying for election may pick up a ballot at the Assistant to the President’s Office or the Office of Institutional Planning in KC’s McLaurin Administration Building. Office hours are 7:45 a.m. to 5 p.m. Monday to Thursday, and 7:45 p.m. to 3:45 p.m. Fridays.

For more information, contact Holda or Nancy Law at 903-983-8101.

Since former superintendent Jody Clements’ departure last September, Dennis Williams has served as KISD’s interim superintendent.

Clements was named superintendent here in 2008. Marley and fellow trustee Terry George were serving on the board at the time of Clements’ selection.

In November, the board agreed to perform the search without hiring a profes-

sional search firm. The district received 32 applications for the job before last month’s deadline. Since then, trustees have met twice to narrowing the list of candidates. Two board meetings were called earlier this week, one on Wednesday and the other Thursday. Both meetings were focused on that task.

“It’s a long process to get it right,” Marley said.

In today’s environment a competitve rate is hard to find. Until Now. 1-800-COMPASS · bbvacompass.com

Follow us on

banking built for you: Accounts subject to approval. $500 minimum balance required to earn the advertise Annual Percentage Yield (APY). APY accurate as of 1/1/2013. Rates are subject to change. Substantial penalty for early withdrawal. Fees could reduce earnings on accounts. Other limitations may apply. See branch for details.

BBVA Compass opens CD accounts that have no certificate known as Time Deposits or TDs. CDs are FDIC insured up to applicable limits. BBVA Compass is a trade name of Compass Bank, a member of the BBVA Group. Compass Bank, Memeber FDIC.

February 11, 2012

Hotel tax raises millions for local tourism Groups split revenue to attract new visitors

By JAMES DRAPER news1@kilgorenewsherald.com With eight hotels and motels operating here, each year since 2005 the City of Kilgore has collected between $186,000 and $342,000 in taxes to be reinvested in tourism through several local organizations.

The state levies a six percent tax on rented rooms that cost more than $15 per day and permits cities to add an additional Hotel Occupancy Tax to rooms that cost more than $2 per day, up to seven percent of the value of the room. Kilgore and neighboring Longview both charge the maximum rate.

Over the past seven years, the local room tax has netted the community about $2 million. The organizations tasked with investing it are required to report how they spent the money to attract new visitors.

According to the Office of the Attorney General, there is a two-part test that all expenditures of local hotel occupancy taxes must pass. In addition to directly enhancing and promoting tourism and the convention and hotel industry, "likely to attract visitors from outside the city into the city," the expenditures must also fit into specific categories defined by the state.

The City of Kilgore reinvests its collections through four entities, allocating the total by percentages approved annually by the city council. Each organization is capped at a certain amount of projected collections and the overage is set aside for specific allocations by the council.

"We have historically always given out to the Chamber (of Commerce), the Kilgore Historical Preservation Foundation and the Shakespeare Festival," said Kilgore Finance Director Lawanna Williams, who has worked for the city since 1987. "When we started our Main Street program we reallocated to include them."

The city transitioned to its current allocation model under former city manager Jeff Howell.

Previously, the Chamber of Commerce received five parts of the seven percent rate; KHPF and TSF each received one part.

The Chamber still receives the lion's share of collections, 68.42 percent capped at $195,000 this year. Both KHPF and the TSF receive 12.28 percent, up to $35,000. Kilgore Main Street program initially received 3.6 percent of the total in its first allocation in 2007; the amount was increased to 7.02 percent for Fiscal Year 2012, up to $20,000.

Room tax collections are distributed in monthly payments according to the percentages. That way, Williams said, if collections one month are lower than anticipated, the city is not out any money – "They get 100 percent up until they reach their max, and it's usually late summer."

The approved organizations, and others who fit the state's tourism guidelines, can request the city council allocate additional funding from the excess collections.

"It's kept in a separate set of books all by itself. It's not comingled with any of the general fund.

Right now there's almost $85,000 (in that account). That mostly came in from last year. We had a really good year last year," Williams explained. "Historically, the Chamber has always come back and asked for more. So did Main Street."

For example, she said, in 2010 the Chamber requested, and was awarded, an additional $7,500 for the Kilgore Snow Hill. The same year, the Main Street Program tapped into the overage for an additional $18,000 for downtown lighting. Neither KHPF nor TSF have requested additional funding above their capped amounts, Williams said.

In fiscal years 2010 and 2011, the city exceeded its projected collections of $277,000 and $275,000 by 6.9 and 24.3 percent respectively – a two-year total of $638,000 to be spent attracting more 'heads in beds' in local rented rooms. Onethird of the way into FY2012, the city has already received 44.7 percent of its projection, $127,600 of an anticipated $285,000.

"What we did, from last year with the $275,000, we upped the anticipated amount by $10,000.

That total $10,000 was earmarked for the downtown stuff," Williams explained. "The anticipated increase we shared with the Main Street. We really want that to stay with the downtown bands, with the events that are going on downtown."

Hotels and motels contributing to the revenue include Best Western Inn, Comfort Suites, Days Inn, Hampton Inn, Holiday Inn Express, America's Best Value Inn, Ramada Inn and Delux Inn. State law allows occupancy tax to be spent in six categories, only five of which apply to the city of Kilgore. According to the "Handbook on Economic Development Laws for Texas Cities," the collections can fund "the establishment, improvement or maintenance of a convention center or visitor information center" if that facility is primarily used to host conventions and meetings. The monies can fund administrative costs for facilitating convention registration and can pay for tourism-related advertising and promotions of the city or its vicinity. The HOT revenues can fund programs that enhance the arts as well as fund historical restoration or preservation programs.

The sixth category, for funding sport events, does not affect Kilgore as it applies only to cities located in a county with a population smaller than 65,000.

The attorney general’s office also notes the simpler test: the tax may not be used for expenses which are not directly related to increasing tourism.

"In summary, local hotel occupancy tax revenues may only be spent to establish or enhance a convention center, cover the administrative expenses for registering convention delegates," the handbook states, "pay for tourism-related advertising and promotions, fund programs that enhance the arts, pay for historic restoration or preservation projects that will enhance tourism, or sporting events in which the majority of participants are tourists in cities located within a county with a population of 65,000 or less.

Also, in cities with fewer than 125,000 people and a HOT rate of more than three percent, at least one percent of the rate ($40,714 of the projected collections here in FY2012) must be spent on advertising and promotion.

There is no time limit within which a city must spend all of the accrued funds, but cities are required to keep track of hotel occupancy tax collections and expenditures in order to ensure the funds are expended according to the law. According to the state's guidelines, beneficiaries of the Hotel Occupancy Tax must submit quarterly reports on how the funds are being spent.

"They are supposed to give us quarterly reports showing us how they spent the hotelmotel money," Williams explained. The documents are public records.

As the Kilgore Main Street Program is tied to the city, at the News Herald's request Williams provided records of HOT-related expenditures dating back to Fiscal Year 2008. The majority of items, ranging from $61.65 to $10,000, are for downtown expenses related to Fridays After 5 concerts, advertising and Christmas lights.

The Texas Shakespeare Festival's reports from 2011, provided to the city by Kilgore College, include a range of expense items: rental for stage weapons ($500), 4,000 season programs ($6,850), costumes ($1,135), meals for members of the company ($7,820) and more.

"They (Texas Shakespeare Festival) are very appreciative," Williams said. "We get a letter of thanks every month when we send them their share. They are very appreciative of it."

Kilgore Historical Preservation Foundation's most recent report to the city covered Nov. 1, 2010 to Oct. 31, 2011, noting deposits of HOT allocations (and interest accrued on the money) alongside its regular expenditures for derrick restorations and events.

According to staff members, the city has no record of the Chamber's HOT expenses after Sept.

2010.

“We have not received anything from the Chamber of Commerce for quite some time,” Williams said, responding to the News Herald’s request for information. “They have not furnished us with the reports we need to share with you.”

Chamber secretary Barbara Garrett said the organization has submitted the requisite quarterly reports on Hotel Occupancy Tax expenditures and has copies on hand but said she could not provide the records without the approval of Chamber President Mike Coston.

As of press time Friday, Coston had not returned calls to his office this week.

Without records of the Chamber's HOT expenses, the News Herald was unable to determine if the Hotel Occupancy Tax allocations met the required one-seventh investment in advertising and promotions or if all expenditures fell within the state's statutorily-defined categories.

February 15, 2012

City awaits Chamber’s tax reports

By JAMES DRAPER news1@kilgorenewsherald.com Allowing for the possibility the originals may have been misplaced, city leaders are seeking copies of the Kilgore Chamber of Commerce's reports of how tourism dollars were spent.

The chamber, one of four organizations that receive Hotel Occupancy Tax revenue, has collected approximately $1.7 million dollars from the revenues since Fiscal Year 2001. The total includes disbursements of $203,078 in FY2011 and $197,000 the previous year.

Benefitting organizations – tasked with investing the money in activities that put more 'heads in beds' at local hotels and motels – are required by the state to submit quarterly reports on tourismrelated expenses. The City of Kilgore has provided copies of the most recent expense reports for the Texas Shakespeare Festival, Kilgore Historical Preservation Foundation and the Kilgore Main Street Program.

City staff members say they do not have the reports on the chamber's expenses after Sept. 2010 but acknowledge the documents could simply be lost. Staffing changes and relocated offices may be to blame.

"Because of transitions and moving around, we could not verify that the chamber records were not there positively," Mayor Ronnie Spradlin said Monday. Either way, "In the future, (staff ) will request and have a place for the reports from the agencies that get the hotel/motel tax.

"I think it'd be appropriate that any copies we have missing from our files, we request backup copies of them."

Tuesday afternoon, chamber president Mike Coston hand-delivered to the city an unitemized plan totaling $200,000 for spending Hotel Occupancy Tax revenues in the current fiscal year.

The document, provided to the News Herald by city staff, notes a variety of unvalued chamber expenditures including salaries, administrative costs, advertising, promotional shows, special projects and other anticipated expenses.

As of press time, attempts by the News Herald to attain copies of expense records from the chamber have been ignored, and chamber president Mike Coston has not yet commented on the organization's investment of its HOT allocations.

City council member Randy Renshaw is confident the documents will turn up.

"That would surprise me that they wouldn't be willing to furnish the numbers. They give it to the city," he said. "There's never been a problem with the chamber giving the reports. I would think that it is just a misplacement."

The longest-serving member of the council, Renshaw was elected to the position in 2003. The city wasn't always strict on the Hotel Occupancy Tax reporting until former city manager Jeff Howell's tenure, Renshaw explained, but he's sure the numbers are in order.

"There's not a question about the funds and how they're utilized," Renshaw said. "I don't think that's a problem at all."

Coston was scheduled to bring the chamber's annual report to the city council at their Jan. 24 meeting but was unable to attend.

According to Kilgore City Manager Scott Sellers, the presentation has not yet been rescheduled but will be on tap for an upcoming meeting.

"The city would expect to receive those (HOT) reports in time for the annual report from the chamber," he added. "We will work with the chamber to locate those reports and ensure that all the necessary preparations have been made for their annual report."

The state collects a six percent HOT rate on all hotels and motels and stipulates the ways municipalities can collect and utilize their own rate. The City of Kilgore applies the maximumallowed Hotel Occupancy Tax on rooms rented at eight hotels and motels within the city limits – seven percent of the value.

The city collected approximately $342,000 from visitors to the hotels in FY2011 and projects a tax revenue of $285,000 for Fiscal Year 2012.

"The local people don't pay that tax," Renshaw explained. "It's paid by visitors and tourists and then it's used to increase tourism."

Kilgore College, the Region VII Service Center, the Texas Shakespeare Festival and oilfield service-related industries are all significant draws for 'heads in beds,' he added.

"We would not have the rooms that we do" if not for those outlets and others like them, Renshaw said. "They are really beneficial to the hotel service industry here. We're fortunate to have those."

Hotel Occupancy Tax collections on the room rentals are disbursed to the chamber, TSF, KHPF and Main Street Program on a monthly basis according to percentages approved by the city council and capped at specific amounts. In the current budget, the chamber is allotted 68.42 of total collections, up to $195,000. The Shakespeare festival and preservation foundation receive 12.28 percent, up to $35,000 and Main Street's monthly check includes 7.02 percent of the collections, up to $20,000 for the year.

According to the state's guidelines, the city can set aside excess collections in a separate account to allocate at the direction of the city council for additional 'heads in beds' activities.

Additionally, one percent of the rate (approximately $40,000 of total projected collections in FY2012) must be invested in advertising and promotion.

In the fiscal year that began Oct. 1, the city has so far collected and disbursed $127,599.70, including $87,303.70 to the chamber, $15,669.24 to TSF and KHPF and $8,957.51 to Main Street. The most recent round of checks, on Feb. 3, issued approximately $20,000 to the chamber, $3600 to TSF and KHPF and $2050 to Main Street.

The next series of disbursements is scheduled for the first full week of March.

Rohena Patel, owner and operator of Comfort Suites, agrees that the city's collection and distribution of Hotel Occupancy Tax benefits the community as a whole.

"The only thing I could ask is that it would be used to bring more business into Kilgore so it kind of benefits everybody. That money is there for us for more advertising and things like that," she said. "It's not just hotels that benefit from that. It's restaurants, gas stations and things like that also.

"The more people we bring into town, the more likely they are to recommend us to others."

Consequently, Patel said, it's important that the community know how the monies are being expended.

"It would be nice for us to have a greater say-so in how it's spent," she explained. "Since the hotels generate that money, we'd like to know where it's going."

February 25, 2012

Chamber offers summaries of tax expenditures City sends exec back for details

By JAMES DRAPER news1@kilgorenewsherald.com The Kilgore Chamber of Commerce submitted copies of two years' worth of quarterly reports on Hotel Occupancy Tax expenditures to City Hall this week and, following a review by the city attorney, has been asked to provide more detail itemizing the expenses.

The "hotel/motel" funds, collected through a seven percent tax on local rented rooms, are allocated at the city council's discretion to certain organizations each year. Tasked with investing the funds in local tourism, putting 'heads in beds,' organizations that enter an agreement with the city are required to provide quarterly, itemized reports of those expenditures according to state statutes governing the revenues.

A Kilgore News Herald review of the City of Kilgore's records of HOT expenditures by the Chamber of Commerce indicates the organization has not provided the requisite itemization of expenses since May 2009.

City Manager Scott Sellers met with Mayor Ronnie Spradlin, City Attorney Rob Schleier and Chamber of Commerce President Mike Coston Thursday afternoon to discuss the most recent reports provided by the chamber. Those documents cover Jan. 1, 2010 through Dec. 31, 2011 and reflect the categories and values submitted on the organization's annual, projected budgets for HOT expenses. They do not provide the itemization required by the city and state.

"The Chamber is going to provide a copy of their general ledger reports as they pertain to the Hotel Occupancy Tax monies to the city, hopefully by early next week," Sellers explained later.

The chamber is compliant in its accounting for those monies separate from its own revenues, as provided by the state statute, he added. "We also sat down with our city attorney to determine the extent by which the city and the chamber have been adhering to the HOT statute and have clarified certain reporting requirements that have not been strictly followed over the past several years, which is a detailed line item reporting of each expenditure.

"In the future the quarterly reports that are submitted to the city will contain those line item figures."

Since Feb. 8, Coston has not returned phone calls made to his office seeking comment on the Hotel Occupancy Tax. Chamber staff did provide the most recent reports to the newspaper this week following a Freedom of Information Act request.

According to Sellers, in recent years the chamber has turned in its projected budget for HOT expenses during the city's budget process, when the city council determines what percentage of HOT revenues will be allocated to various organizations.

Currently, the chamber receives 68.42 percent of total collections each month, up to $195,000 per year. The Texas Shakespeare Festival and Kilgore Historical Preservation Foundation each receive a monthly disbursement of 12.28 percent of the HOT revenues, up to a $35,000 annual maximum. The Kilgore Main Street Program receives 7.02 percent of the monies, up to $20,000 per year. Excess funds beyond the city's projected collections for the year – $285,000 in Fiscal Year 2012 – are set aside to be distributed by the city council at the request of the four organizations or others.

The three other organizations are up-to-date on their reporting requirements, and the chamber, Sellers said, will soon be as well.

"What I will call it is more of a misunderstanding for what is required of the statute," Sellers said. "What the chamber has been submitting to the city has been an annual budget request with a detailed listing of how those monies will be spent. Additionally, the statute does require quarterly expenditure reports, which is not what we have been receiving.

"We have not discussed any sort of penalties for noncompliance with the statute."

The various organizations are scheduled to receive their next disbursement of Hotel Occupancy Tax revenues during the first week of March.

REPORTING REQUIREMENTS According to the current HOT agreement with the city (which has remained substantially unchanged for several years), an organization that receives Hotel Occupancy Tax revenues agrees to provide, in advance, "its annual budget to city and will make periodic reports to the city at least quarterly listing the expenditures made by contractor with revenue from the Hotel Occupancy Tax." In a letter dated April 27, 2004, then-City Clerk Karen Custer informed Coston that the documents that had been provided by the chamber were incomplete according to the requirements of the agreement between the city and the organization, re-signed each year when the allocations are made.

"As required by state law and pursuant to this Agreement, the City was to receive a copy of your annual budget for the current fiscal year, quarterly reports listing expenditures made with revenue from the Hotel Occupancy Tax, and a list of scheduled activities, programs or events that you will offer that will directly enhance and promote tourism," Custer wrote. "In order to comply with state law and the Agreement and also bring my files up-todate, please provide me with a list of scheduled activities, a copy of your budget, and a report listing the first six months (October 2003 – March 2004) of expenditure of funds received from the Occupancy Tax revenue."

Consequently, the chamber's May 2004 report on hotel/ motel tax expenditures noted its use of revenues at that time: for the Visitor Information Center located inside the Chamber; for advertising, solicitation and promotion; for expenditures to promote the arts; and for administrative expenses including supplies, salaries, travel expenses and certain day-today operational expenses.

The report also included a categorized 'Profit & Loss Budget vs. Actual YTD' for Feb. 1, 2003 through Jan. 30, 2004 and a 'Custom Transaction Detail Report' that listed deposits of the city's HOT disbursements and itemized approximately 70 of the chamber's Hotel Occupancy Tax expenditures. These range from a $7.03 'tape for travel show' to the chamber's $5,000 coalition fee for participation in the former Holiday Trail of Lights.

Based on the available records, by 2007 the chamber had adopted a new reporting format. Those reports list total amounts for expenditures in certain categories (administration expenses, payroll tax, tourism events, travel and tourism organizational dues and publications, etc.) and list various subcategories of expenses. For example, between Jan. 1 and March 31, 2007, the chamber reported total expenditures of $8,045.23 on 'Travel & Tourism Promotions' including radio, television, newsprint, magazine, brochures, maps, lapel pins, presentation folders, rack cards and

its Web site but did not itemize the expenses. The report also notes $39,287.33 in HOT revenue received alongside total disbursements of $53,434.46.

The chamber's report of March 17, 2009 covers Oct. 1 through Dec. 31, 2008, and includes the organization's categorized expense report as well as 37 pages showing itemized transactions from the chamber's accounts, some of which include HOT expenditures. A report covering Jan. 1 to May 31, 2009, includes 19 pages of itemized HOT expenditures and 38 pages of chamber transactions, including HOT expenditures.

A report from July 9, 2010 covers Oct. 2009 through May 2010, showing the category totals without any itemization. It also includes a projected budget for Fiscal Year 2011.

The last report, provided from the city's files at the News Herald's request, shows expenses from Jan. 1 to Sept. 30, 2010.

The chamber's eight quarterly, unitemized reports submitted to the city Tuesday resemble the last two reports in the city's possession, showing spending categories with totals rounded off to the nearest dollar, total disbursements and HOT revenues received from the city during each threemonth period.

According to the documents, the chamber's quarterly HOT revenues disbursed by the city from Jan. 2010 to Dec. 2011 range from $51,440.43 to $148,148.00 per quarter. The totals do not match the city's records of the chamber's Hotel Occupancy disbursement checks, which did not exceed $67,346.65 per quarter during that period.

Sellers could not explain the discrepancy in the chamber's reported totals and the city's but said it could be due to the different beginningand end-dates of the two organizations' Fiscal Years.

"Without auditing the numbers I can't give you specifics, but the nature of the overlapping budget years means that we would have to correlate the off-months to get exact figures," he explained.

MOVING FORWARD Spradlin said he anticipates a quick response to the city's request for more information from Coston.

"He was very open to what we wanted," Spradlin said Thursday afternoon.

For Sellers, who is in his fourth month as city manager, the recent dialogue on the Hotel Occupancy Tax creates an opportunity to scrutinize and streamline the HOT allocation and reporting process.

The city will review the way it disburses and accounts for the HOT expenses in the future, he said.

"After meeting with our city attorney, we all feel much better about how those reports need to be submitted as we move forward."

March 7, 2012

City reconciles chamber’s account of Hotel Occupancy Tax funds use Four groups split $16,852 in March

By JAMES DRAPER news1@kilgorenewsherald.com There is still some work ahead as city employees analyze the Kilgore Chamber of Commerce's accounting for Hotel Occupancy Tax revenues and expenses, but after submitting an itemization of its 2011 funds, the organization is coming back into compliance.

Granting the chamber an additional two months to bring its reporting up to standard, this week the city will send the organization a check for $11,531, its 68.42 percent share of HOT collections.

The 'hotel/motel' monies, raised by a seven percent tax on local rented rooms, are also split with three organizations each month: the Texas Shakespeare Festival and Kilgore Historical Preservation Foundation will each receive $2,069 (12.28 percent of revenues, each) while the Kilgore Main Street Program will accrue an additional $1,183 of its annual share.

Organizations that receive HOT money are required to submit quarterly, itemized expense reports to the city showing how the funds have been used to increase local tourism.

The chamber, which for two years has been out of full- or partial-compliance with the accounting mandated by both the state and city, is in the midst of a bookkeeping update.

"Our finance director, Lawanna Williams, has met with the Chamber several times to reconcile their books with the city's," Sellers said. "The Chamber uses a different reporting software which was not set up to display the information based upon certain categories that typically you would see in governmental accounting. Lawanna has discussed what sort of accounting categories (are needed) and is also helping the Chamber rearrange their numbers by those categories."

Like the three other organizations, the chamber must submit its next quarterly report, covering January through March 2012, by the end of April. In the meantime, city staff will continue reviewing the reports that are on hand and pursue any information that is still missing from the most recent reports.

"They were not in the format that we would have preferred," Williams said. "It's not a really clean report and that's what we're hoping for the next time."

"One that's more reconciled with the way the city runs its financial reports," Sellers added.

"When any organization rearranges their financial books, it does take a little time to get all the expenditures recoded and recategorized. Therefore, we have asked the Chamber to have those reports complete by their next submission to the city."

According to its eight-page itemization of Hotel Occupancy Tax revenues and expenses between Jan. 3 and Dec. 31, 2011, the Kilgore Chamber of Commerce carried over almost $67,000 in unspent monies from 2010. Receiving and spending approximately $202,120 during that time, the organization closed 2011 with a HOT balance of $67,826.66.

"They spent almost 100 percent of everything they took in," Williams explained.

Overall, the numbers indicate the chamber is spending its portion of Hotel Occupancy Tax revenues according to state guidelines, she said, funding tourism-related projects that put 'heads in beds' at the local hotels and motels that charge the seven percent tax on rented rooms.

For example, according to state guidelines one-seventh of the city's total HOT collections must be spent on advertising and promotion, approximately $42,000 of the $295,000 the city has projected for FY 2012 collections.

Based on the itemized numbers, Williams said, the chamber seems to be meeting that requirement.

"I think they are if you consider those trade shows and promotions that are advertising Kilgore.

It's more than just buying a piece of paper in a magazine. If you take those two numbers they had then they spent well over the seven percent."

There are still some unresolved issues with the chamber's accounting. For example, $72,900 – in 17 deductions ranging from $1,500 to $10,000 – is categorized as "Suspense," with no notes on its usage.

"The problem with suspense accounts is it's just a holding account so it could mean different things," Sellers explained. "We are trying to identify those funds that are being categorized currently as 'Suspense,' as to what their ultimate use was."

"That was the transfers from the hotel/motel dollar expense account into the general operating account to cover the payroll expenses," Williams explained. But there is another problem, she added, in that 100 percent of tourism director Carol Hinton's salary has been drawn from hotel/motel tax money. "That's what we determined when we were going over (the numbers)."

According to state guidelines for Hotel Occupancy Tax usage, the money can cover a portion of an employee's salary, depending on how much time is actually spent on tourism-related activities. According to the chamber's projected expenses, Hinton spends 95 percent of her time putting 'heads in beds.'

"Now that we all have a better grasp on how the funds should be spent, and as we move into our next contractual year with the chamber," Sellers said, "we will look closer at how those allocations should be met, and we will work more closely with the chamber to determine how best to allocate their time."

The chamber has not provided an itemized accounting of its 2010 Hotel Occupancy Tax usage.

Chamber of Commerce President Mike Coston has not returned calls to his office seeking comment on Hotel Occupancy Tax.

March 10, 2010

Hotel tax money, wastewater on council’s agenda

By BILL WOODALL bwoodall@kilgorenewsherald.com Kilgore College regularly receives for Texas Shakespeare Festival a share of the Hotel Occupancy Tax collected and set aside for promoting tourism, arts and historical preservation.

When the city council meets Tuesday night, college president Dr. Bill Holda will be on hand to ask for a larger share of the money. Holda will ask to add the East Texas Oil Museum and the Rangerette Revels to the list of agencies receiving room tax proceeds.

Under arrangements in place today, the Kilgore Chamber of Commerce receives 68.42 of the money each year. Kilgore Historical Preservation Foundation and the Shakespeare Festival each receive 12.28 percent and Main Street receives seven percent.

This fiscal year – Oct. 1 through Sept. 31 – the city expects to collect about $285,000 from the tax levied on hotel and motel room rent.

A request for hotel tax money has been presented on behalf of the oil museum each of the last two years, says director Joe White, but the request has been denied.

The tax has been the subject of controversy over the past month while the city and the Kilgore News Herald worked to obtain an accounting of how the chamber of commerce spent its share of the tax money in 2010 and 2011. The city received the 2011 accounting last week.

The council will meet Tuesday, March 13, at 5:30 in council chambers at city hall.

In other business, the council is scheduled to approve an agreement calling for the sale of treated waste water to TD Water Resource Management/Alpha Reclaim Technology, LLC. The company has proposed buying treated waste from a number of East Texas cities. The water, clean enough to be returned to the Sabine River, will in turn be sold to companies engaged in hydraulic fracturing – fracking – to help with the production of oil and natural gas.

The agreement calls for the buyer to pay Kilgore $1.67 per thousand gallons of treated waste.

During staff reports, city attorney Rob Schleier will talk to the city council about hotel occupancy tax collections. Planning director Carol Windham will discuss sheriff ’s sale deeds and fleet director James Womack will discuss the policy governing sale of used equipment.

The council will also conduct the first public hearing on the annexation of 217 acres along Baughman Road in the vicinity of the new school campus.

The city council meeting is open to the public.

March 17, 2012

KC’s Holda requests extra tourism funds for museum, Revels

By JAMES DRAPER news1@kilgorenewsherald.com Four local organizations share the majority of the city's Hotel Occupancy Tax revenues each year, but – in budgeting conservatively – Kilgore typically collects tens of thousands of dollars more than it allocates for tourism investment.

Last year, the city projected revenues of $275,000 from the seven percent tax it levies on rented rooms. Ultimately, local hotels and motels collected approximately $342,000 on the city's behalf.

Adding that excess to the surplus already set-aside, Kilgore currently has some $84,000 to invest at the city council's discretion in activities that put more 'heads in beds' here.

It's likely the city will raise more than the $285,000 estimated this year, but it was the existing, untouched nest-egg that brought Kilgore College President Bill Holda to the Kilgore City Council meeting Tuesday night.

Before making his request for additional HOT funds, Holda thanked the council for the portion the city already shares with the college.

Currently, the Texas Shakespeare Festival housed there is one of four entities that annually receive a share of the city's Hotel Occupancy Tax Revenues. Like the Kilgore Historical Preservation Foundation, TSF was allocated 12.28 percent again in Fiscal Year 2012, up to $35,000 per year. The Kilgore Chamber of Commerce receives the largest allocation, 68.42 percent (capped at $195,000), and the Kilgore Main Street Program gets a 7.02 percent share, or $20,000.

"As we continue to experience losses in state funds, that festival has the past few years run in the black in no small part because of the funds we receive from the city and from many other generous agencies," Holda said. Whatever the amount or the source – taxes, grants, vending revenues, gate fees, donations – when it comes to the college's revenue "Nothing belongs to us, so we're very grateful for any money we get."

With excess funds in hand, he said, the city council has the ability to make even more of an impact on local tourism by allocating almost half to East Texas Oil Museum and the Kilgore College Rangerettes.

The one-time allocations would fund a $25,000 digital docent program at the museum and offset $15,000 of the costs of the Rangerette Revels production.

"The Rangerette Revels brings in about 7,500 participants – students, people from other communities – in a four- or five-day period. It's a big event for the city," Holda explained.

Consequently, the production meets the rule of thumb for a HOT expenditure: tourism, putting heads in beds. "It's a huge volume of folks that come into the community.

"Many of those people coming in...stay the night, buy meals, go to other events and come back on a regular and annual basis. It does have a real impact."

Historically, the cost of producing the mid-April show was much less expensive, he noted, but with technical sophistication of lighting, sound and video the college has been hard-pressed "to continue to keep pace with what the standards are."

"Our costs have continued to rise significantly. We spend about $80,000 to $85,000 to produce Rangerette Revels. We bring in approximately $80,000 to $85,000."

Meeting costs is one thing, but the Rangerette organization pays for all expenditures out of gate revenues – in the past, there was enough money leftover from the show to fund the Rangerettes' travel expenses.

"We are really trying to find long-term underwriters and groups that will really make the operation productive and sustainable."

Likewise, Holda said, the East Texas Oil Museum has welcomed approximately 1.3 million visitors since it opened its doors in 1983.

Running the facility costs the college approximately $500,000 per year – "We have been trying to generate philanthropy, gifts, donations and other resources to keep that operation going." – but the museum also fits the bill for a Hotel Occupancy Tax expenditure, Holda said, with 60 percent of visitors saying they eat or spend the night in Kilgore, often visiting other sites and events while they're here.

The college's $25,000 request for HOT excess is earmarked for a digital electronic docent system.

"Most of our docents have gotten older, and (we're) hitting the spring, when we have all of these school tours," he explained. Recording the guides' tours and installing a permanent program for guide-less tours, "… provides real, long-term sustainability to continue to meet the needs of tourists."

At Tuesday night's meeting, Holda's presentation was listed as a 'Citizen's Presentation,' not an action item, so the council did not vote on his request but agreed to consider the proposal.

And, with three ex-Rangerette managers on the council – Mayor Ronnie Spradlin, Neil Barr and Bobby Hale – "You just got your majority," council member Harvey McClendon joked.

Holda acknowledged the council's responsibility to ensure its ongoing allocation of HOT funds is sustainable and emphasized their ability to make one-time expenditures of the revenues can make an impact.

"We can use them immediately," Holda said, with Revels set for April 11-14 and the digital docent program ready for implementation.

"Whatever we get, we're very appreciative."

March 17, 2012

City on the outs with two inns Hotels neglect $16,400 of HOT payments

By JAMES DRAPER news1@kilgorenewsherald.com Guests pay a 13 percent Hotel Occupancy Tax on local rented rooms.

Hotels and motels collect the tax, hold it in trust temporarily and pass six percent on to the state, the rest to the City of Kilgore.

The city allocates its share of the tax revenues at its discretion.

Local tourism-focused groups expend and report their investment of the money in putting more heads in beds at the hotels and motels.

At least, that's how it's supposed to happen.

There's a disconnect in the cycle right now between the City of Kilgore and two hotels, to the tune of $16,400, with the looming possibility of a operations-injunction or criminal charges.

"The Hotel Occupancy Tax is in the news a lot here lately," Kilgore City Attorney Rob Schleier said Tuesday, referring to the city's ongoing efforts to bring the Kilgore Chamber of Commerce into compliance with HOT reporting guidelines. "Coincidentally, (finance director) Lawanna Williams and I had been working here lately on two entities who are behind, really a lot behind, in payment of the Hotel Occupancy Taxes."

A prior audit found three of the city's eight hotels and motels were delinquent. Currently, Schleier told the city council, the Delux Inn and Manor Inn (formerly Ramada Inn) are still delinquent, behind by $14,000 and $2,400 respectively.

Neither hotel's owners were present at the council's meeting Tuesday, nor could they be reached for comment this week.

"To me, the main problem with this, this is not a tax on the hotels," Schleier pointed out. "This is not money that comes from their bottom line, this is a tax on the people that occupy the hotels.

"All the hotel operator is supposed to do is collect that tax from those people and remit it to the State of Texas and the City of Kilgore."

In fact, he noted, the two hotels have paid the state's six-part portion but have essentially ignored the city's demands for its share – at one point, the City of Kilgore had reached an agreement with Manor Inn to help the hotel become compliant in turning over its collections.

Since then, the hotel is up-to-date on its current collection payments, but made only sporadic payments on its audited debt. Those payments have basically ceased.

"They had a year," Williams added. "They made three of the 12 payments."

Delux Inn is much further in arrears. The operators have not given the city its share of HOT collections since the third quarter of 2010 and is also behind on the audit obligations.

Usually, similar situations can be resolved with a demand letter, Schleier said.

"The purpose of my coming here tonight: We have sent out letters; they didn't help," he explained. "We're just asking for a little guidance as to how the council wishes us to proceed... to collect these delinquent amounts."

"This is not debt. It's a collection. It's a surety," council member Harvey McClendon argued.

"They're collecting on behalf of the city to pay to the city. It's not revenue for them."

Yes, Schleier said. The hotels hold the money in trust and are violating their trust obligation.

"I think we ought to take whatever action we need to take and try to get the money. This is not the first time this has happened," council member Randy Renshaw said. "I guarantee if they owed the comptroller's office they would take whatever action is necessary."

The state's guidelines on HOT – Kilgore adopted its hotel/motel ordinance pursuit to those statutes – gives the city several options.

"We can bring a lawsuit. We can bring an injunction suit – we can actually stop them from operating anymore. We can impose penalties," Schleier explained. "The statute also gives us the right, by ordinance, to authorize a misdemeanor punishment for a violation."

As Delux Inn's owners have not made their Hotel Occupancy Tax payments since 2010, "essentially they can have five misdemeanor charges filed against them. Really six since they have not paid their audit amount either."

The council members overwhelmingly encouraged Schleier to turn up the heat on the two hotels until the debts are satisfactorily paid.

"They've collected it. They've just kept it," Mayor Ronnie Spradlin said. "Y'all have battled this for months – I'm happy with whatever you and (city manager Scott Sellers) determine is the right choice."

"Even filing criminal charges?"

"If that's necessary."

The hotel operators have been informed of the range of consequences they face, Schleier answered council member Bobby Hale; the city's letters have warned of the possibility of criminal charges or of an injunction.

"We need to quit barking and bite," Spradlin said.

"I agree with the mayor," Hale concluded. "Do what you need to do."

March 31, 2012

Council approves one-time HOT allocations

By JAMES DRAPER news1@kilgorenewsherald.com When it comes to putting heads in beds, the Kilgore College Rangerettes' Revels and the East Texas Oil Museum pass the test, city council members agreed Tuesday.

During their regular meeting, the council unanimously approved investing excess Hotel Occupancy Tax funds in the two organizations' tourism efforts and approved a change to the city's signage code, among other business.

Following up on Kilgore College President Bill Holda's request for one-time allocations of $15,000 and $25,000 for the Rangerettes and the museum, respectively, council members noted they did hear some objections to the funding. However, the group determined the $40,000 will continue to bring visitors to local hotels and motels, the simple standard for investing HOT funds.

"Other than annexation, I don't receive as many objections than to giving money to the Rangerettes," council member Randy Renshaw acknowledged. There is animosity among some members of the community about how many local girls make the line, he reported, but "I'm sure the judges make the fairest decision they can as to who's going to be part of the team."

But the key question is whether the group increases Kilgore's tourism profile.

"The focus for that is they represent Kilgore wherever they go. The program is so well-known that young ladies from all over the country are interested," he said.

The hotel/money tax revenues are not city funds, council member Harvey McClendon pointed out. The 13 percent tax (six percent of which goes to the state) is levied on patrons of local inns and expressly directed for the advancement and enhancement of tourism.

"The decision should be based on whether or not the Rangerettes do encourage tourism, and I don't think there's any question of that."

The East Texas Oil Museum has earmarked its funds for the creation of a digital docent program to better-serve visitors.

Overall, Hotel Occupancy Tax funds are currently divided between the Kilgore Chamber of Commerce (68.42 percent, capped at $195,000), the Kilgore Historical Preservation Foundation and Texas Shakespeare Festival (12.28 percent or $35,000) and the Kilgore Main Street Program, which receives up to $20,000, a 7.02 percent share.

Any collections above the $285,000 projection for 2012 will be set aside with approximately $85,000 in excess funds from previous years.

Benefitting organizations are contractually required to submit quarterly, itemized reports on how they invest the funds in tourism, and council members review the allocations each year during their annual budget cycle.

Requestors can apply for a share of the funds during the budget season, and the council can adjust the percentages and beneficiaries at their discretion, as well as approve one-time allocations at any time.

"We can't say that this is going to be an annual donation. It's going to be a case-by-case situation," Renshaw said of the two new allocations. "Otherwise, I don't have any opposition to it at all."

Main Street Manager Clara Chaffin brought the proposed revision to the city's development code as it relates to signage in the Main Street Overlay District.

"Since my time here in the past three-and-a-half months I've had many questions about banners downtown," she explained. According to the current code, banners are allowed for special events only. "We sat down and rewrote it and gave that proposal to planning and zoning. They looked at it and approved it."

The new code, unanimously approved by the council, states that permits must be approved by the Main Street Advisory Board and defines a special event as "any event that generates the need for additional signage."

The revised guidelines stipulate commercial banners may only be displayed for 14 days per year, no longer than seven consecutive days. Likewise, community event banners may only be displayed for 14 consecutive days.

"This ensures there are not banners up for months before or after an event happens."

Exceptions to the policy are subject to advisory board approval.

"The Main Street Advisory Board is very willing to take on this task in order to maintain the integrity and the feel of the downtown as we have it now," Chaffin said, "especially considering all the work that has gone into it."

Policing the new code is important, council member Randy Renshaw said before the vote.

"Typically when there's a violation downtown we send code enforcement downtown and ask them to remove the banner or the sign," Chaffin explained. "That's pretty much what we normally have to do."

"I don't see how you can have a law without a penalty," Mayor Ronnie Spradlin said.

According to Planning and Zoning Director Carol Windham, the new policy will carry the same penalties and fines as other code violations, and, likewise, challenges of rulings will go to the Zoning Board of Adjustment of Appeals.

"I don't have a problem with it as long as we enforce it," Renshaw said.

The council also approved $321,569.97 for infrastructure construction at the Mobbs companies' Windsor Park subdivision, about $17,500 less than originally anticipated.

"The agreement is the city will pay for the material, and Mobbs will do the construction," City Manager Scott Sellers explained. "As the property sells, the city will recapture the share of the material cost for that property."

The measure passed four in favor with one abstention – Spradlin did not vote as his company, East Texas Lumber, won the bid for furnishing rebar to the project.

Under their consent agenda Tuesday night, Kilgore city council members approved: • A resolution on the city's Equipment Services Policy, allowing that department's employees "access to their tools and use of the city facility after hours, at the discretion of the Equipment Services Coordinator, for courtesy repairs or maintenance to city employees’ personal vehicles and equipment. No work will be done for profit, and all parts and fluids will be supplied by the person who owns the vehicle and/or equipment."

• Prepared for the city's upcoming general election and special charter amendment election, appointing City Clerk Deborah Dane as early voting clerk as well as deputy early voting clerks Karen Custer, Lawanna Williams, Janell Kinsey and Don Kinsey. Council members also accepted Valerie Melton as election judge and Margie Hall as alternate judge and approved a contract with Gregg County for leasing and programming electronic voting equipment, ballot tabulation and supervision.

April 11, 2012

Hotel tax collections up mid-year

By JAMES DRAPER news1@kilgorenewsherald.com The City of Kilgore is ahead of its projected Hotel Occupancy Tax collections for Fiscal Year 2012 – revenues of $23,029 in March put the mid-year total at $167,483.

"We're 50 percent into the budget year, and we have 58 percent," explained finance director Lawanna Williams.

This week, the city is set to cut four checks to organizations that receive a percentage of the tourism money – money raised by a seven percent tax on rented rooms at eight hotels and motels.

The state collects an additional six percent tax.

During their last budget cycle, city council members allocated 68.42 percent of total monthly collections to the Kilgore Chamber of Commerce; April's disbursement is $15,756.68 of its maximum $195,000 for the year. Both the Texas Shakespeare Festival and Kilgore Historical Preservation receive 12.28 percent (up to $35,000 each) including $2,828 respectively from March's collections. The Kilgore Main Street Program (a 7.02 percent share, capped at $20,000) is set to receive $1,616.67 in the April round of checks.

After collecting $342,000 in HOT funds last year, the council increased the 2011 projection of $275,000 to $285,000 in FY2012, upping Main Street's cap by $10,000. Any excess funds collected are set aside for allocation at council members' discretion.

Per their standing agreements with the city, the four organizations have until April 30 to submit their second itemized quarterly report of the fiscal year, listing all expenditures of Hotel Occupancy tax funds from Jan. 1 through the end of March. According to state guidelines, the monies must be invested in activities and projects that generate more tourism, from marketing and promotions to events, historical preservation, restoration, certain administrative expenses and activities that put more 'heads in beds' at the hotels and motels.

The $23,000 collected in March is about $7,000 less than revenues at the same time last year – of the local hotels and motels that generate the revenues, Williams said one expected payment, from Comfort Suites, did not arrive in time to bolster March's numbers.

Even without it, she said, the city is tracking only $2,000 behind last year's six-month total – "I think we're going to make our budget."

Meanwhile, two hotels consistently behind on turning in their HOT collections – the Manor Inn and Delux Inn – made payments last month.

According to Williams, the owners of the Manor Inn (formerly Ramada Inn) decreased their debt from $2,400 to $1,800. The Delux Inn, behind by more than $14,600, made a $250 payment.

The owner, Mayur Mali, has met with city manager Scott Sellers, city attorney Rob Schleier and herself, Williams said, and is making an effort to catch up.

"It sounds like he's having to use that to meet his expenses. You're supposed to collect it, and you're supposed to set it aside. It's obviously going in his operating funds," she explained. "He's got to pay all of his utilities, his bank notes and everything. He's having a hard time."

May 23, 2012

City notes compliance of all HOT contractors

By JAMES DRAPER news1@kilgorenewsherald.com After a two-week delay due to tax season, the City of Kilgore has all four quarterly reports from the various organizations that receive portions of Hotel Occupancy Tax revenues.

The tourism tax – collected through an additional seven percent charge on local rented rooms – has already netted $207,381 in Fiscal Year 2012, October through April, almost 73 percent of the anticipated haul.

"We're seven months into it," Kilgore Finance Director Lawanna Williams explained, and ahead of schedule. "We should be at 58 percent if everything comes in flatline."

Revenues from the eight hotels and motels operating in the city limit typically exceed the city's budgeted amount – $342,780.72 compared to an anticipated $275,000 in FY2011 – and Williams expects an even larger return during the last five months of the city's budget year.

"Usually your summer months are a little bit bigger than your winter months."

The organizations' most recent quarterly reports, itemizing approved tourism-related expenses according to contractual agreements with the city, cover January through March.

In addition to documents from the Kilgore Main Street Program, Texas Shakespeare Festival and Kilgore Historical Preservation Foundation, the stack includes a list of expenditures from the Kilgore Chamber of Commerce – reporting there had lapsed according to the city's requirements.

"I think it was more of a misunderstanding in how the reports were presented in the past," chamber president Mike Coston said. "We always provided the reports, but there was a change in the way that they wanted the reports to look like.

"Our challenge over the last couple of months was being able to communicate – both parties to communicate – well enough to provide exactly a format that they felt comfortable with."

According to Coston, in various meetings including City Manager Scott Sellers, chamber chairman Alvin Khoury, city council member Harvey McClendon, Mayor Ronnie Spradlin, Williams and chamber staff, the group went through several different reporting formats before reaching a consensus.

"It just took us a while to get on the same page – it was just a lack of communication between the two entities (city and chamber) on what they wanted and what we were giving them."

As opposed to the chamber's previous reports – unitemized, grouping possible expenditures into broad categories with supporting documentation – the latest document was turned into the city on time, Williams said, correctly, a complete 180-degree turn after long delays and unsatisfactory summaries.

The numbers add up and fulfill the organization's contractual reporting requirements, she noted.

"I'm ecstatic that they finally put it in a format that is actually tied to their books, that is tied to the checks that they write," Williams said. "I feel like we have something that they can balance to, and we can see where they got their numbers."

Sellers echoed the positive change.

"The chamber's summary report of hotel occupancy tax expenditures correllates the supporting documents submitted to the city this month, including an itemization of all expenses," he said.

During budget discussions this summer, the Kilgore City Council will be open to requests from the four organizations (and others that step forward) for allocation in Fiscal Year 2013.

The state levies its own six percent tax on rented rooms and defines the ways the monies raised locally can be allocated and spent.

In Kilgore, benefitting organizations approved by the city council are tasked with putting 'heads in beds' back at the inns by funding programs that advance the arts, supporting historical restoration or preservation, covering administrative expenses and certain operational costs, establishing and maintaining a convention or events center or promoting tourism through marketing and advertising.

In the second quarter, the hotels turned over $69,053.56 in collections followed by $39,897 in April.

The chamber, allocated a maximum of 68.42 percent of all budgeted collections in FY2012 ($285,000) drew $74,544.57 during those four months; KHPF and TSF each received total disbursements of $13,379.24 (allocated 12.28 percent each, up to $35,000 during the year) and Main Street, budgeted 20 percent this year (up to $20,000), netted $7,648.39.

During the same period, at the request of Kilgore College President Bill Holda, the city council also made a one-time allocation of $25,000 to the East Texas Oil Museum plus $15,000 to Rangerette Revels.

The college submitted its second quarter report on TSF in April along with a voluntary report on the Rangerettes' HOT expenses.

According to Leah Gorman, KC director of development, TSF utilized $23,327.39 during the quarter, dividing it between auditions ($3,141.73), production ($1,306.76), an acting workshop ($285), contracted services ($18,550) and miscellaneous expenditures of $43.90. In addition to an itemized breakdown of the various expenses, the college also included associated receipts.

Expenses for Revels funded some of the production's costumes, recording, set decorations and other expenditures, utilizing all $15,000 of the allocation. The East Texas Oil Museum has not yet expended its $25,000 while further-developing a plan for a digital docent program at the facility.

In the first quarter, the chamber used its HOT money for administrative expenses, utilities, rent, office supplies, tourism and promotional expenses.

The Chamber of Commerce covered a portion of its salaries, in addition to contract labor (chamber ambassadors staff the building’s front office on Saturday mornings), at $21,633.53.

Funding a portion of its office phones, cell phones, power, cable TV and Internet service cost $2,016.77 in addition to $420 of total rent and $1,945.12 for supplies and equipment.

After administrative costs, the largest portion of the chamber's HOT expenditures covered tourism expenses, $8,397.59 for conventions and seminars, bills related to winter events, tourism development and travel shows.

Factoring in a carryover balance of $67,826.66 and reporting expenses of $40,402.84 against disbursements from the city, accrued interest on unused HOT funds and reimbursements, the chamber closed the period with $75,006.87 in unused HOT money.

According to the city's records, Main Street's HOT money funded parts of various expenses totalling $13,287.83 (supplemented by the program's annual budget) paying off Christmas lighting installation from winter 2011, advertising and Fridays After 5 concert expenses.

Accounting for $72.48 in accrued interest on its carried-over HOT money of $57,984.48, in the second quarter KHPF principally used its HOT revenues to fund repairs and supplies for the memorial derricks in addition to utility bills to keep them lit, closing the period with a balance of $48,295.82.

June 20, 2012

Main Street will ask for more hotel tax funding Various entities prepare outlook for city’s budget

By JAMES DRAPER news1@kilgorenewsherald.com City departments and local organizations are in the thick of their budget preparations right now, many of them scheduled for a visit to the Kilgore City Council in the coming weeks.

Main Street Manager Clara Chaffin will make that trip June 26 – currently, her working budget for Fiscal Year 2012-2013 shows a decrease of more than $10,000 in city funding supported by a corresponding increase in Hotel Occupancy Tax funds.

"The actual (departmental total) budget itself is staying very similar to what we had last year," Chaffin said Monday.

The program's personnel costs show an almost 10 percent decrease of $5,300, a readjustment from the past year's budgeted amount – set prior to Chaffin's hire in November 2011, the budget lines reflect a larger amount than her final negotiated salary and benefits.

Projected supplies increase by almost $2,200 with the inclusion of materials for the historic theaters' neon lights, banners for the light poles and additional food supplies for volunteers.

Overall, contractual services within the budget show a $7,150 decrease: Chaffin's first budget as manager re- moves and relocates almost $10,000 in advertising (to now be funded from HOT money), adds an additional $2,000 for her training, conference fees and travel expenses and maintains the $15,000 funding for facade improvement grants.

"We do have between $6,500 and $7,000 left in this year's budget if someone wants to come forward and do a facade improvement that they can complete before October 1," she noted. How much of the current balance or next year's will be used, Chaffin doesn't know – all but two of the primary, occupied buildings and businesses within the Main Street Overlay District have already sought and received the facade grants.

In the current budget, Main Street is allotted 7.02 percent of all Hotel Occupancy Taxes collections anticipated by the city – hotels and motels tack an additional seven percent tax on all rented rooms at the city's direction (the state collects an additional six percent).

The state requires the collected monies be used within certain parameters, specifically for activities that generate more tourism and thus put more 'heads-in-beds' at the hotels and motels.

For Main Street and its share of $285,000 projected in FY2012, that's typically advertising and promotion of the downtown, but the funds can also be used to maintain a visitors center, for certain administrative expenses, historical preservation, restoration and the arts.

Under the current budget (and based on collections so far) the Main Street will likely receive the entirety of its $20,000 portion of HOT money. The Kilgore Chamber of Commerce receives the largest share of the city's collections, 68.42 percent (capped at $195,000); the Texas Shakespeare Festival and Kilgore Historical Preservation Foundation are allocated 12.28 percent each, a maximum of $35,000. Excess collections are set aside for specific allocation by the Kilgore City Council.

According to Chaffin, moving advertising expenses from the regular budget to HOT monies will require an increase in the tax funding to keep the budget stable: $130,282 in 2011-12 compared to $130,085.

"Last year we asked for $20,000. This year I'm asking for $30,000 with a possible increase to $40,000" to support new activities.

July 4, 2012

Festival director outlines vision for theater's future

By JAMES DRAPER news1@kilgorenewsherald.com In a request for additional Hotel Occupancy Tax funding last week, Texas Shakespeare Festival Artistic Director Raymond Caldwell also revealed some of his hopes for the company’s future and ways it can further add to Kilgore’s cultural foundation.

“With its dramatic history, its inspiring downtown renovation, its hope of establishing an arts district with the refurbished Crim Theater as its hub, and its reputation as the home of a respected professional theater, Kilgore is ideally-suited to become a nationally-recognized cultural oasis,” Caldwell said. “By developing a strong partnership with the city, the Texas Shakespeare Festival can help to enhance Kilgore’s profile and play a vital role in helping ‘The City of Stars’ become also ‘The City of Arts.’”

TSF is one of four principle beneficiaries of the city’s HOT monies along with the Kilgore Chamber of Commerce, the Kilgore Main Street Program and Kilgore Historical Preservation Foundation.

Like KHPF, the festival is currently allocated 12.28 percent of funds raised by the city’s seven percent tax on local rented rooms (in addition to a six percent state Hotel Occupancy Tax). The revenue generates a maximum of $35,000 per year for both TSF and KHPF. Main Street was allotted 7.02 percent in the current budget (up to $20,000) and the chamber netted 68.42 percent, up to $195,000.

Caldwell’s initial request during the council’s regular meeting June 26 (ultimately approved by the group) was for an additional one-time allocation of $10,000 from the city’s excess HOT funds. Anything above the city’s projected HOT collections – $285,000 in FY2012 – is set aside for distribution at council members’ discretion.

“Without the city’s contributions the festival may not have survived for 27 years, so on behalf of the 1,200 theater artists who have worked for TSF and almost 200,000 audience members who have attended a performance since 1986, I want to thank the city commissioners of Kilgore for their generosity and most valuable encouragement,” Caldwell said. “With the city’s help, TSF has become a highly-respected regional theater with an enviable reputation among theater professionals across the country and an asset to the cultural environment as well as to the economy of Kilgore, Gregg County and all of East Texas.”

The money will be used to fund professional recordings of the festival’s 2012 lineup of six shows for archival purposes and DVD sales of select productions.

Caldwell also planted a seed for another request, aiming for an increase in the festival’s overall share of HOT funds in FY2013 and beyond.

According to surveys during the 2010 and 2011 seasons, more than 50 percent of the festival’s audience traveled more than 50 miles; 20 percent came from more than 100 miles away. TSF estimates the crowd generates 200-plus hotel room rentals during the five weeks of performances each season in addition to the extra business marked at local retailers and restaurants from the audience and the festival’s cast and crew.

“Last summer, the festival sold 100 percent of all available permanent seats, a rare accomplishment for any theater,” Caldwell noted, “and ended the 2011 season without a deficit for the second consecutive year.

“Our goal is to repeat those successes this year, of course, and to increase the number of performances beginning in 2013, but to do that we will need additional resources, not only to cover production expenses but also for publicity and advertising.”

With the council in the midst of budget workshops for FY2012-2013 and fast-approaching discussions of how to allocating HOT monies, Caldwell asked for an additional one-seventh of the tax revenue (approximately $40,000 according to current projections).

The money will help the festival promote and publicize its efforts outside the immediate area, Caldwell said.

“TSF has never had a budget for publicity and advertisement and has always depended, therefore, on the generosity of area broadcasters for public service announcements and on donations to cover the cost of additional print ads,” he explained. More funding will be translated into bolstering TSF’s Web presence at www.texasshakespeare.com as well as placing newspaper ads and television spots in a broader market.

Looking further, Caldwell said, he hopes a strengthened relationship with the city, in addition to the festival’s ongoing patronage from Kilgore College, will grow the reputation of all.

“The City of Kilgore and the Texas Shakespeare Festival can work together to follow the example of Ashland, Ore., and Cedar City, Utah – two small college towns that became major tourist attractions mainly because of the successes of the Oregon and Utah Shakespeare Festivals,” he said. “Both towns are evidence of what national studies have shown – that communities where the arts thrive attract not only tourism but other businesses as well.”

In the spring, Caldwell and other TSF representatives toured the historic Crim and Texan Theaters with Mayor Ronnie Spradlin, Kilgore City Manager Scott Sellers and Main Street Manager Clara Chaffin. The festival employees took measurements of the two derelict venues and talked to the city’s leaders about estimated costs for their respective restoration.

“The festival could become a yearround enterprise offering a variety of live performances – not only plays and not just on the college campus,” Caldwell suggested last week. “It could be part of an accredited performing arts conservatory – the only one in the south – training actors, singers and dancers and showcasing their talents throughout the year.”

Caldwell’s $10,000 project drew a unanimous vote by the council. The second request, Spradlin noted, will be considered further in July during the council’s upcoming discussions of revenues and HOT allocations.

“I think the most exciting part of Raymond’s letter was the thought and possibility of us having an arts conservatory here. They have them on the east and west coast but none in the central or southern states,” Spradlin said later. It’s well within the Texas Shakespeare Festival’s abilities, but “To do that they’ll need a home. It will be a vocational acting, dancing – all the arts – program. They’ll constantly be doing performances throughout the year.

“I think it’s exciting for the downtown arts area and the revitalization of downtown.”

Sellers agrees – if the festival is indeed selling-out shows, it may very well be poised for expansion.

“In light of recent conversations with TSF it appears the city is able to assist in that endeavor.”

July 18, 2012

Tourism director notes high volume during second quarter

By JAMES DRAPER news1@kilgorenewsherald.com Visiting City Hall and several other organizations in the past week, Kilgore Chamber of Commerce Tourism Director Carol Hinton is reporting healthy numbers for local tourism attractions and activities with more on tap.

She told Kilgore City council members last week “2012 continues to be a busy year.” She offered her analysis of local groups’ activities to the chamber’s board of directors Monday as well as the Kilgore Historical Preservation Foundation board. “The chamber and visitors bureau has experienced a large influx of summer visitors to our office.”

In the second quarter of 2012, the East Texas Oil Museum and Rangerette Showcase reported 6,385 and 6,434 visitors respectively – school groups account for a large volume of the attendees, she noted, but the showcase also reported visitors from Germany, Russia, France and a handful of states.

“Rangerette Revels performed to a sold-out crowd” in April, she said. “The Revels and (Rangerette) camps brought business to our hotels and restaurants.”

Likewise, the chamber’s annual Taste, Trade & Music Fest drew more than 1,500 patrons, the Spring Film Festival at 4 Star Cinema brought many out-of-town movie fans, KHPF’s Derrick Stars concerts drew crowds downtown, the Kilgore Main Street Program’s Fridays After 5 concerts are ongoing and its Retro Retail Sidewalk Sale saw a large turnout in late April.

“This was a great opportunity to visit our downtown stores and restaurants.”

The next big event in town is the Kilgore Balloon Extravaganza, Hinton said. Set from 6:30 p.m. to 9:30 July 25 on Commerce Street, more than 50 balloon pilots and their crews will end their local race day (flying over Kilgore in the morning in a U.S. Nationals competition) with dinner at the World’s Richest Acre. In addition to live music from Shake, Rattle & Roll, the free, public event includes a synchronized balloon burn at 9:15 followed by a helium balloon release.

Gift and food vendors will be on hand as well, she added.

“Don’t forget to wake up early on Wednesday and Thursday of that week and watch the skies over Kilgore. There should be many balloonists attempting to make a target located in six different areas in and around Kilgore” including the Kilgore High School soccer practice field and perhaps the parking lot of First Baptist Church and Driller Park, Hinton said. “The downtown merchants have gotten involved as well as our restaurants.”

The Texas Shakespeare Festival and East Texas Pump Jacks baseball season are also underway, she said, with plays through the end of July and games scheduled into August.

“We continue to host many reunions and weddings. We get many calls at the visitors bureau asking for venues for these events,” Hinton added. “Many groups have visited Kilgore in the past quarter – they almost always visit the museums and have at least one meal at our restaurants.”

Kilgore also hosted multiple conferences in the second quarter, she said, including the National Association of Chamber Ambassadors, which logged an estimated $10,000 in local hotel room stays and $8,000 in catering.

In the meantime, Hinton completed her second of three years at the Texas Travel Industry Association’s Business Travel and Tourism College, a five-day program featuring speakers on various aspects of the industry. “An important fact that was stressed over and over again during the week was giving our visitors an experience – visitors want to experience things they can’t get

at home,” she explained. Adding to those experiences and encouraging local tourism is a key goal of the chamber, Hinton added, which is supported by almost $200,000 of Hotel Occupancy Tax revenues. “We feel the chamber of commerce and visitors bureau makes good use of our HOT funds.”

July 18, 2012

Chamber president proposes relocating offices

By JAMES DRAPER news1@kilgorenewsherald.com The Kilgore Chamber of Commerce is considering expanding into a new location but must first determine whether the move is financially feasible.

According to chamber president Mike Coston, the organization is in need of more office and meeting space than the current facility adjoining City Hall provides.

“One of the reasons we want to move is to have a visitors center in the front, chamber offices in the back,” he told his board of directors during their monthly meeting Monday in the chamber conference room.

The visitors area of the chamber officers currently occupies the front lobby. Also, chamber tourism director Carol Hinton needs dedicated office space, Coston explained later – currently, she works out of a multipurpose room linked to the front office. Likewise, the chamber ambassadors will be better served with an office for the program’s chairman.

Where to move and whether it’s worth taking on a larger expense than the organization’s current $150 per month deal with the city is still being debated.

“As we kind of looked around we discovered that the old City Hall building down the street, built in 1931, is available,” he suggested. “It is where the chamber started.”

The 13,300 square-foot building at 325 N. Kilgore St. once housed city offices, jail facilities and the municipal court, the fire station and city marshal’s office.

In talks with building owners Mike and Jennifer Brown, Coston said he learned the current tenant – the High Maintenance Spalon – is paying about $1,000 per month in rent.

“I’m just throwing that out there before I do any more research,” he said.

“I’d like to see some numbers” on how the chamber could fund the low-end estimate of $350,000 for the property, board member Bill Mishkind said.

Board chairman Alvin Khoury appointed Dr. Charles Whiteside, a committee chair, to study the idea further.

“That’s a lot of money we’re talking about expending when we’re paying $150 a month rent where we are,” Khoury said.

“How much are we paying?” Mishkind asked. “And you want to move to a $350,000 building?

All you’re doing is increasing (space) four-fold or five-fold.”

“They can make the study and take the necessary time” before reporting back, Khoury said, anticipating a follow-up in the fall.

During the meeting, treasurer Jo Ann Maxwell updated the board on the organization’s finances – the chamber has $161,270.41 in checking and savings accounts, total assets of $186,096.75 and $12,705.39 in the economic development restricted account.

Total income for June was $37,694.39, Maxwell reported, with expenses totaling $36,016.16.

“For the month of June we did good,” she said.

In his report on chamber membership, Coston said the organization dropped 47 members since February. Of that group, 25 were non-paying elected officials. Among the remaining 22, three were taken off the rolls due to a death and two illnesses, he said, and three corporate members did not renew.

“12 business said they could not afford (dues), they saw no use in the chamber or could not be involved,” he noted.

However, said Coston, the $4,290 loss in dues (from the 22 regular members) is more than covered by 24 new members added since Feb. 1 at $4,485 – “The staff recruited nine of those members and the ambassadors recruited 15.”

“We did not lose any income dropping certain elected officials because they were not paying anything to start with,” Khoury noted.

In other business: • Coston updated the board on the status of the organization’s audit by Brown, Bronstad, Habenicht and Rosson.

The audit is all-but-finished, Coston said, and he plans to present it to the board during their meeting in August.

Meanwhile, he added, the chamber’s projected budget for Hotel Occupancy Tax expenses is ready as is its quarterly report on HOT expenditures from April to June.

• Committee chair Dawn Rader reported on ambassador activities – the group is assisting with the balloon race event and has plans in motion for Kilgore Ladies Night Out. Ambassadors logged 96 volunteer hours in June, she said, bring the year’s to-date total to 705 hours.

• Past board chair Donna Beets said the organization is investing in bumper stickers promoting the Keep It In Kilgore program, aiming to put the decals on all city vehicles except public safety vehicles.

“We thought we’d order extras for anybody that would like to have some bumper stickers.”

• Education committee chair Patrick Brown reported on the developing Leadership Kilgore program for the coming year – 12 professionals have signed up for the class in addition to eight high school students set to participate.

August 1, 2012

City nears HOT goal three months early

By JAMES DRAPER news1@kilgorenewsherald.com Three quarters of the way into its fiscal year, the City of Kilgore has collected more than 96 percent of its projected Hotel Occupancy Tax revenues, reinvesting the money in six local organizations’ efforts.

The taxes, gathered from a seven percent tax on rooms rented at local hotels and motels, are meant to put more ‘heads in beds’ in Kilgore through tourism promotion as well as funding the arts and historical preservation.

For Fiscal Year 2012, the city estimated $285,000 in collections ($10,000 more than last year) and raised $274,897.15 between October and June.

Under the current budget, four organizations receive allocations from the fund – the Kilgore Chamber of Commerce, Texas Shakespeare Festival, Kilgore Historical Preservation Foundation and Main Street Program. In their requisite quarterly reports on expenditures, the beneficiaries noted the money was recently used for everything from conferences and administrative expenses (the chamber), sound equipment and ticket stock (TSF), utilities (KHPF), musical performances and advertising (Main Street).

As in previous years, Kilgore’s chamber was allocated 68.42 percent of the HOT proceeds in FY2012 capped at $195,000 – the organization typically covers about 65 percent of its operating expenses using the tax revenues. Consequently, the chamber carries the largest burden of reporting, with almost 100 individual HOT line items listed between April and June.

Among a variety of expenditures totaling $84,092.70 during the third quarter, the chamber reported the tourism-related portions of salaries for three employees as well as rent, travel expenses, utilities, cellular phones, postage, advertising and contract labor for chamber ambassadors who man the ‘Visitors Bureau’ desk at the building on Saturday mornings.

The chamber also devoted $12,122 of the money to the National Association of Chamber Ambassadors Conference the group hosted in May. “ The NACA Conference was very successful,” Chamber tourism director Carol Hinton told council members during her regular report in July. “Over 85 ambassadors from Arizona, New Mexico, Oklahoma and Texas attended. Almost $10,000 was spent on hotel rooms and over $8,000 for food.

“We feel the chamber of commerce and visitors bureau makes good use of their hot funds.”

Receiving checks totalling $13,192.42 during the third quarter, KHPF’s expenses of HOT funds during the period were divided between power costs ($1,382.92), electrical repairs ($11,980), insurance ($1,850.61) and repairs to the memorial derricks ($831.13).

Allocated the same 12.28 percent share of HOT monies as KHPF (capped at $35,000), the Shakespeare festival reported expenses of $4,054.82 during the same period for publicity ($1,885), sound ($1,000) and miscellaneous expenditures (ticket stock and lanyards) of $1,169.82.

Throughout the year, TSF artistic director Raymond Caldwell explained, the festival uses the HOT funds for a variety of costs, including props, costumes and, primarily, promotion.

“We’ve used it to help us in printing for the programs and for the publicity, posters and flyers and things of that sort,” he explained. On a tight budget, “We have so little money, none actually, devoted to publicity. I’d like to expand it for us to be able to advertise outside this area.

“Anything that helps create visibility is what we’ve tried.”

For Fiscal Year 2012, council members increased the Main Street Program’s allocation to a $20,000 cap (7.02 percent of projected revenues). The program entered the third quarter with a negative HOT balance, received $6,495 and expended $2,752.03 on print advertising ($1,452.03) and fees for four Fridays After 5 concerts ($1,300). The organization entered the fourth quarter with a HOT balance of $1,829.95.

With three more months left in the current fiscal year and a little more than three percent shy of its anticipated total, the city is once again expected to exceed its HOT projection – the overage goes into a separate fund to be allocated at Kilgore City Council members’ discretion.

In FY2009, the city fell short of the projection by almost $2,000 but surpassed expectations in FY2010 and FY2011 by $19,629.15 and $41,560.72, respectively.

In 2011, the council distributed $10,000 of the extra funds to the Main Street Program for white LED lights downtown and $8,720 for white light tree wraps. The chamber received an additional allocation of $7,500 that year for the Mt. Kilgore Snow Hill.

This year, council members approved a $25,000 allocation to the East Texas Oil Museum for a digital docent program and $15,000 to the Kilgore College Rangerettes for their annual Revels production. Texas Shakespeare Festival requested and received an additional allocation of $10,000 for DVD production and archival recordings of its six shows in the 27th season.

The Hotel Occupancy Taxes and allocations were among a variety of revenues discussed Tuesday night during the city council’s fifth budget worksession of the summer – look for more details in Saturday’s edition of the Kilgore News Herald.

August 4, 2012

Council splits tourism taxes between eight organizations

By JAMES DRAPER news1@kilgorenewsherald.com All the organizations that requested a portion of the next round of Hotel Occupancy Taxes received funding from the Kilgore City Council Tuesday night, but with nine entities seeking funding, few received their desired amount and one took a substantial cut.

Raised from a seven percent tax on rented rooms at eight local hotels and motels, council members chose to project revenues conservatively for Fiscal Year 2012-2013 – an initial estimate of $300,000 was reduced to $280,500, less than the $285,000 anticipated, and almost collected, this year.

The total amount of requests, however, came in at $428,450. The sum includes larger requests from the current beneficiaries of the tax – the Kilgore Chamber of Commerce, Kilgore Historical Preservation Foundation, Kilgore Main Street Program and Texas Shakespeare Festival – as well as submissions from Kilgore Community Concerts, East Texas Oil Museum, the Kilgore College Rangerettes, the Kilgore Arts Festival and the East Texas Pipe Organ Festival.

“I think the large number of people we have requesting funds this year is probably in direct relationship to the publicity the chamber received because their HOT reports were not filed timely,” Mayor Ronnie Spradlin noted – the chamber neglected most of its requisite reporting during the past several years and council members question whether all of the organization’s expenses are appropriate for HOT funds.

“That brought to light the way they were spending their money. I would guess these entities think they can spend it better themselves than allowing the chamber to spend it on their behalf,” the mayor said.

“I think if there’s a problem we need to address it,” council member Neil Barr agreed.

Any organization that receives funding from the HOT taxes needs to be fully aware of their responsibilities in spending the money, council member Bobby Hale noted, including how the funds are used and how those expenditures need to be tracked and accounted for.

“What reports am I going to get over the next year that shows this money is being spent appropriately?” he asked. “I think that needs to be a conversation that’s had.”

According to the current standard agreement between a HOT-funded organization and the city, beneficiaries are required to submit quarterly reports listing individual expenses of the monies.

The state guidelines offer six categories for expenses, finance director Lawanna Williams noted.

Those include funding or maintaining a convention center or visitor center, paying administrative costs for convention registration, paying for tourism-related advertising and promotions, funding programs that enhance the arts, funding historical restoration or preservation programs and supporting certain sporting events (not applicable in Kilgore as Gregg County exceeds the maximum 65,000 population).

Also, in a city Kilgore’s size with a HOT rate of seven percent, one-seventh must be spent on advertising and promotion, a maximum 15 percent may be spent on art programs and the city is limited to spending a maximum of 50 percent of HOT revenues on historic restoration or preservation projects unless it is devoting at least some of the funds to a convention or visitors center.

Generally, HOT funds are meant to put “heads in beds” at local hotels and motels. The line item expenses are left up to the benefitting agencies, Williams said.

“It’s discretionary. It’s not a black-andwhite answer.”

Organizations receive a percentage of total collections, Williams added, up to a set cap – each is paid their percentage of each month’s collections. Once the projected budget is reached and all organizations have received their full allocations, excess revenues are set aside for specific distribution at the city council’s discretion.

Council member Sherry Bustin, in her first round of HOT allocation, emphasized expenditures of the revenue, especially for events, need to be targeted at bringing overnight visitors.

“Things requested should be things that rejuvenate the hotels. That’s what the tourism money is supposed to do,” Bustin said, also recommending the reduction in the overall projected revenue.

“If you have some reserve here, (they) could request that when it fits the definition of outside people coming in.”

The chamber’s request for FY2013 was $202,450, about $7,500 more than last year. Considering the chamber’s reporting lapse, the number of requests, the reduction in projected revenue and a desire to keep more excess funds on hand for discretionary allocation, council members reduced the organization’s portion to 54.45 percent of the anticipated collections, capped at $152,450.

Mayor Pro Tem Harvey McClendon praised chamber president Mike Coston and his staff ’s efforts, but agreed a smaller allocation is warranted amid the reporting lapse and questions of how the organization spends its HOT money – i.e. portions of salaries, a new recliner for the chamber office, groceries and hotel expenses for a non-staff member.

“With everything that’s gone on we’re probably pushed into that corner, to have to do that this year,” he said.

“I think if we do the $50,000 (reduction) it will cause them to go back and seriously look at their budget and see what they can cut,” Hale added.

The Kilgore Main Street Program requested $10,000 more for advertising and promotion in addition to its current 7.02 percent share as well as $15,000 for the Kilgore Arts Festival, a project adopted by the Main Street Advisory Board last summer.

“They are anticipating that that is just seed money and this will be, after the first year, selfsustaining,” Kilgore City Manager Scott Sellers said. “If you do it right the first time and get it big enough, I can definitely see it paying for itself the next year.”

The council chose to fund most of Main Street’s request at 10.71 percent of collections, a maximum of $30,000. The group agreed to allocate $15,000 for the arts festival from excess funds at a later date.

This year, the Texas Shakespeare Festival asked for $45,000 beyond its current $35,000 cap.

Kilgore Historical Preservation Foundation asked for an increase of $8,000 above the $35,000 allocated this year.

Neither organization will get the requested increase but will each receive $35,000.

“As much as I like the Shakespeare festival, I think that’s a large increase to ask for, year over year,” Spradlin said, in addition to an extra $10,000 recently allocated from excess funds.

Likewise, “Our last city manager took the Crim and Texan away from KHPF and we took on the maintenance of those buildings. KHPF had been over the maintenance of those beforehand, so they really got an infusion from us taking over that.”

Kilgore Community Concerts and the East Texas Pipe Organ Festival requested and were allocated $3,000 and $5,000, respectively.

The East Texas Oil Museum, which received a one-time $25,000 allocation from excess funds in the spring, requested $35,000 for the next fiscal year and was allocated $10,000, the amount the organization specified for printing and distributing brochures at tourism bureaus.

The Kilgore College Rangerettes also received a special allocation earlier this year, $15,000 for the group’s annual Revels production – the council approved $10,000 of the organization’s requested $15,000 for FY2013.

Council members also weighed a new option for allocating HOT revenues in the future.

“We are the ultimate ones that are responsible for it being spent correctly everywhere,” Spradlin said. “There are cities where the HOT money is directed by a committee, much in the way the United Fund is directed by committee.”

“I think we really have the duty to do this ourselves as a council,” McClendon responded.

“We’re elected – we’re supposed to represent the city and do that.”

September 1, 2012

Veterans request HOT funds to expand memorial park

By JAMES DRAPER news1@kilgorenewsherald.com No one commented on the city’s proposed tax rate for Fiscal Year 2013 Tuesday night, but a separate public hearing on the draft budget drew another request for Hotel Occupancy Tax funding.

Council members on Aug. 14 set a tentative tax rate of 40 cents per $100 valuation to fund the proposed $22 million budget in the coming fiscal year. The rate is one cent higher than the current FY2012 rate but only slightly higher (two hundredths of a cent) than the 39.980-cent rate recommended by Gregg County Tax Assessor Kirk Shields.

When the group votes on the rate Sept. 11 (following a second public hearing at 5:30 p.m.

Tuesday), they can either adopt the proposed rate or decrease it.

During the first and only hearing on the budget, former Kilgore Mayor Joe T. Parker made a HOT request on behalf of the Kilgore Veterans Association.

Hotel Occupancy Taxes are collected from a seven percent tax on rooms rented at local hotels and motels. The revenues are disbursed, according to set percentages on a monthly basis, to a number of organizations selected by council members.

Intended as an investment in local tourism, putting ‘heads in beds’ through the various agencies’ efforts, on July 31 the council projected total revenues of $280,450 in FY2013.

The anticipated collections were divided between the Kilgore Chamber of Commerce (up to $152,450), the Texas Shakespeare Festival and Kilgore Historical Preservation Foundation (capped at $35,000 each), the Kilgore Main Street program ($30,000), East Texas Oil Museum ($10,000), Kilgore College Rangerettes ($10,000), East Texas Pipe Organ Festival ($5,000) and Kilgore Community Concerts ($3,000).

Excess collections are set aside in a separate fund for allocation at council members’ discretion.

Currently, the city has an excess HOT fund balance of $83,546.49, set to increase – in the current year, all agencies have been fully-funded, so collections through Sept. 30 will be set aside.

The local veterans group recently purchased a 1950 Dodge ambulance, used in the Korean War, for $3,000. Once the vehicle is repainted, it will be installed at Harris Street Park alongside the other elements of the Kilgore Veterans Memorial, including the wall of names, the half-derrick and oversized dogtag, memorial stars, two anchors and a vintage 1943 105-mm Howitzer.

“We spent the last bit of the money that the veterans had on that” ambulance, Parker told the council. The association’s now-depleted funds were collected from donations and fees raised by inscribing names on the memorial wall. “We’d like to purchase some more stuff but we don’t have any money.”

If the council approves the HOT fund allocation, the veterans plan to purchase a 1942 Dodge Half-track – in service in Germany during World War II – ‘as is’ for $10,000.

It’s a good use of HOT funds, Parker said, giving visitors more to see at the park.

“It does create tourism because people come from all over to see the monuments we have out there,” he explained. Ideally, Parker added, the council will also consider an additional $15,000 of HOT funds to buy a 1941 SNJ trainer airplane to fill the remaining space at the memorial.

“We’re just trying to improve the park out there where the monuments are.”

The request drew no comments from city council members Tuesday. They’ll vote on the budget along with the tax rate on Sept. 11.

With no money left in their account after buying the ambulance, fellow veteran John Edney said the expansion of the park will halt without assistance.

“We’ve got to have help from the city. We want this park to be for the whole community, plus we want it to be educational” an outdoor object lesson for students studying the United States’ military history, Edney explained. “Everyone’s been so generous helping out. This time we need a little help.”

September 5, 2012

City recruits state expert for tourism fund training

By JAMES DRAPER news1@kilgorenewsherald.com With their anticipated Hotel Occupancy Tax revenues allocated for the coming fiscal year, the City of Kilgore is bringing in an expert to train the benefitting agencies on how to appropriately and best utilize the local tourism dollars.

Statewide, HOT funds are raised by taxes on local rented rooms, including six percent for the state and up to seven for municipalities. The City of Kilgore levies the maximum rate on the eight hotels and motels operating within the city limits, distributing the revenues to various organizations to reinvest in ways to put more “heads in beds” here. In Fiscal Year 2010-2011, the tax generated $342,780, almost 25 percent more than projected. So far, in FY2012, collections have again exceeded expectations with more than $285,000 raised.

Scott Joslove, president and CEO of the Texas Hotel & Lodging Association, formerly served as the Chief of Municipal Affairs with the Texas Attorney General’s Office and was first Assistant General Counsel of the Texas Municipal League. In 1989, he wrote an article entitled “What cities need to know to administer the local Hotel Occupancy Tax” and has since become the goto authority statewide on the hotel/motel tax revenues, updating his essay every two years following the state legislative session.

“He’s intimately involved with the statute” governing HOT funding, Kilgore City Manager Scott Sellers explained Tuesday.

Joslove’s upcoming Oct. 2 HOT training session is mandatory for all entities receiving the funds – according to the city’s draft budget for Fiscal Year 2012- 2013, eight agencies will receive varying portions of an anticipated $280,500 including the Kilgore Chamber of Commerce, Kilgore Main Street Program, Kilgore Historical Preservation Foundation, Texas Shakespeare Festival, the Kilgore College Rangerettes, East Texas Oil Museum, Kilgore Community Concerts and the East Texas Pipe Organ Festival. Excess collections – the city currently boasts more than $83,000 set aside – can be allocated to requesting organizations at council members’ discretion.

In addition to representatives from the current benefiting agencies, the early October meeting – coinciding with the start of the fiscal year – will include Kilgore City Council members. The owners and operators of the local hotels and motels have also been invited.

“Early this year there were questions about the reporting of HOT funds being timely, accurate and legal for each of the entities that receive HOT funding through the city,” Sellers explained.

“The city has been working with these entities to ensure the proper compliance for the reporting.

However, there are certain questions that have surfaced about expenditures in these reporting requirements.”

According to the standing agreements between the City of Kilgore and HOT-beneficiaries, the organizations must submit quarterly, itemized reports on their HOT-related expenditures.

Approved expenses are outlined in the state statutes governing the tax, which Joslove has previously explained in numerous presentations to city and county governments and other bodies.

“Already Mr. Joslove has emailed some paperwork that he has felt would be beneficial to the city, such as a reporting and accountability tool and a primer for cities administering HOT

funds,” Sellers explained. “He has also made a couple of recommendations regarding the reporting requirements that he will speak about during the Oct. 2 meeting.”

The idea to invite Joslove for the training came in part from a recent Kilgore Chamber of Commerce board meeting, Sellers added.

That organization has fielded numerous questions surrounding HOT funds since February following a reporting lapse and subsequent restructuring of its HOT accounting.

“Certain questions arose regarding the city’s proposed HOT fund disbursement for the 20122013 budget in which the Chamber’s allocation was reduced to meet a higher volume of requests for those funds,” he explained. Those questions, among other HOTrelated issues, will likely factor into Joslove’s presentation to the wider group. “I expect the response to be very favorable as this meeting is more about moving forward than looking backward.”

The city has requested that would-be attendees to the training session RSVP to Sue Brooks by emailing sue.brooks@cityofkilgore.com.

With HOT being in the news and before the council, Mayor Pro Tem Harvey McClendon said he looks forward to Joslove’s training, a chance to sit down with someone who knows the ins and outs of the tourism tax.

“With the things that have been going on, it’s a good idea for us. It’s an opportunity to make sure we’re doing things right.”

September 9, 2012

Expert: Hotel tax funding must benefit both tourism, inns

By JAMES DRAPER news1@kilgorenewsherald.com More than just tourism alone, every expenditure of Hotel Occupancy Taxes must also directly promote the hotel and convention industry.

So says Scott Joslove, the state’s leading expert on the 40-year-old guidelines that raise revenue for the state and other governmental entities from additional charges on stays at rented rooms.

“There’s a two-part test for every expenditure. One, is this an expenditure that directly promotes tourism and the hotel and convention industry? Tourism is defined under the tax code as bringing citizens from one city or county to a different city or county,” Joslove explains. “Two...does it have the effect of bringing people from another city or county to come frequent that (attraction) and have an impact on the hotel industry in some way?”

The City of Kilgore has requested Joslove facilitate training sessions on the use of Hotel Occupancy Taxes, bringing council members, benefitting organizations, hoteliers and any other interested parties upto date on best practices and appropriate application and reporting of HOT expenditures. He will be here to conduct those sessions Oct. 2.

In Kilgore, the city’s seven percent tax on rooms rented at eight hotels and motels (in addition to the six percent tax levied by the state) raised $342,780 in Fiscal Year 2010-2011 and more than $285,000 so far in FY2012, the majority of it allocated, by varying percentages, to four organizations: Kilgore Chamber of Commerce, Texas Shakespeare Festival, Kilgore Historical Preservation Foundation and the Kilgore Main Street Program.

For the coming fiscal year, Kilgore City Council members approved four additional organizations’ requests for portions of the revenues including East Texas Oil Museum, the Kilgore College Rangerettes, the East Texas Pipe Organ Festival and Kilgore Community Concerts.

Joslove’s seminar is set on the second day of FY2013, aiming to impress upon the designated groups their duty to go beyond the basic use of the funds to put “heads in beds” and determine the best possible way to effectively, and appropriately, reinvest the money in activities that will benefit the lodging industry that generates the tax.

Hired by the Texas Municipal League in 1988, Joslove worked for five years as the organization’s general counsel and served as the group’s expert on tax issues. He also served as chief of municipal affairs for the Texas Attorney General’s Office – which included advising cities on a variety of municipal issues like taxes – and is currently president and CEO of the Texas Hotel & Lodging Association, the largest of its kind in the nation, after joining the organization in 2000.

As far as the state HOT statutes, “I have written many drafts and changes to the state law, but legislators ultimately write bills,” Joslove said. “I’ve been an expert witness on the tax, I’ve written a leading article on the use of the tax that is still in play for multiple Texas cities.”

Joslove updates the article, ‘What cities need to know to administer municipal Hotel Occupancy Taxes,’ regularly.

The standard opinion for legislators, counties, cities and other entities through the state, he last updated it in 2011, listing nine basic categories for investing HOT money, most of which apply to a city Kilgore’s size: funding convention and visitor information centers, registration of convention delegates, advertising and promotion, promotion of the arts, historical restoration and

preservation activities, tourism-related sporting events, sporting-related infrastructure, tourismrelated signage and transportation of tourists from hotels to commercial areas, convention centers, area attractions or other nearby hotels.

Kilgore’s signature derrick skyline, for example, is maintained in part through KHPF’s allocation of HOT funds as historical preservation.

“It may be that people aren’t coming into Kilgore just to see the derricks and booking rooms for that purpose, but it may be that while they’re in Kilgore in a room that’s what they do,” Joslove explained. “Even if it’s not the reason you came, but it’s part of what you do – the fabric of what you actually participate in – that’s another way to extend a stay and impact a hotel.”

Conversely, some communities have inappropriately devoted HOT funds to community picnics or activities at senior centers, events unlikely to either draw new tourists or occupy the ones in town for another occasion.

“If no tourists or hotels participate, it has a purely local impact and that would be a challenge” to justify HOT expenditure, Joslove said. Likewise, even events that would be a draw for outside visitors, like limited-ticket concerts or other performances, do not effectively serve the tourist population if there’s no seating available. “Even though that’s a promotion of the arts, you couldn’t really argue it affected the hotel and tourism community because tourists couldn’t go if they wanted to.”

According to Joslove, there is no statutory formula for determining the level of impact a HOTfunded event or activity must have to satisfy the dual requirement for tourism and hotel/convention industry promotion. However, he wrote in 2011, communities with successful tourism promotion programs generally allocate the HOT funds according to the perceived proportionate impact on tourism and hotel activity.

“Entities applying for hotel occupancy tax revenue funding should indicate how they will market the event to attract tourists and hotel guests. If an entity does not adequately market its events to tourists and hotel guests, it is difficult to produce an event or facility that will effectively promote tourism and hotel activity.”

Joslove recommends cities adopt a standard hotel tax application form posing specific questions about the would-be beneficiary’s planned activity, like the number of hotel rooms blocked for an event and an estimation of the number of overnight attendees.

Outlining specific requirements facilities must meet to qualify as convention or visitor information centers – i.e “primarily used to host conventions and meetings – Joslove also notes in his article the limits on how HOT funds can be used to cover a portion of administrative expenses like supplies, salaries, office rental, travel expenses and other costs.

“These costs may be reimbursed only if the expenses are incurred in the promotion and servicing of expenditures authorized under the hotel occupancy tax laws.”

Special rules apply to various cities, Joslove maintained in 2011. For example, in a city Kilgore’s size (less than 125,000 population) with a seven percent tax, a minimum expenditure of oneseventh of HOT revenues must be spent on advertising and promotion of the city and its vicinity.

Similarly, no more than 15 percent of total revenues may be spent for the arts nor more than 50 percent for historical restoration and preservation.

In communities like Kilgore, with limited service hotels and no established convention centers, the simple “heads in beds” rule is still a primary measure, Joslove said.

The HOT training varies from city to city, he added, sometimes because new council members want a better understanding of the funds they’re allocating, sometimes because the benefitting organizations need a refresher on how their activities measure up to the standard.

“Sometimes they call me out there and ask me to do the training because they’ve had questions and members of the public or the press and other individuals, members of the council, say they think they would like to have more guidance on this. In the case of Kilgore, I will provide an overview of what the rules are,” he explained. Reviewing Kilgore’s current HOT budget and past experience, Joslove said he’ll be prepared for any questions or issues that arise. “I will provide them guidance on best practices and where to draw the line as they have issues.

“Typically, in this situation, absent a request to the contrary, I would identify what the state law parameters are as I understand them, what the practices are across the state and where they can maximize them and stay within the confines of the law.”

Mandatory for Kilgore’s HOTallocated organizations, the Oct. 2 seminar (a series of meetings beginning at 2 p.m.) will also include council members, city staff and hoteliers. The discussion is open to any other interested individuals who RSVP in advance to administrative assistant Sue Brooks at 903-984-5081 or a sue.brooks@cityofkilgore.com.

September 29, 2012

Tuesday training to provide primer on Hotel Occupancy Tax guidelines

By JAMES DRAPER news1@kilgorenewsherald.com An upcoming training session on Hotel Occupancy Tax dollars has drawn a growing group of attendees, with representatives from currently funded organizations and more HOT-hopefuls signing up for the seminar with expert Scott Joslove.

Public meetings at City Hall Tuesday afternoon – revolving around public revenues raised through taxes on local rented rooms and reinvested to generate more hotel/motel traffic and fuel tourism – will be specifically tailored to various groups, Kilgore City Manager Scott Sellers said this week.

“We actually do have a really good turnout” based on RSVPs, he said. “It’s going to be spread amongst three different meetings.”

Joslove previously served as Chief of Municipal Affairs for the Texas Attorney General and as First Assistant General Counsel for the Texas Municipal League. President and CEO of the Texas Hotel & Lodging Association, he’s the leading authority on the hotel/motel tax and updates the prevailing opinion on the state’s guidelines every two years.

The first training session with Joslove, beginning at 2:30 p.m., is open to any interested member of the public and is mandatory for the majority of the organizations who have received a HOT allocation in the city’s Fiscal Year 2013 budget. According to Sellers, representatives from seven of the eight organizations have confirmed they’ll be attending that session, including Kilgore Historical Preservation Foundation, the Texas Shakespeare Festival, Kilgore Main Street Program, the Rangerettes, East Texas Oil Museum, the East Texas Pipe Organ Festival and Kilgore Community Concerts Association.

In addition to any wouldbe beneficiaries, representatives from Kilgore’s eight hotels and motels are also invited to the meetings, Sellers added; about 20 people, various representatives and members of the public, have signed up so far.

The second session, set for 4 p.m., will be focused specifically on the final, and largest, HOT beneficiary, the Kilgore Chamber of Commerce.

Allocated $152,500 from the revenue projection of $280,500, the chamber historically has utilized the funds more broadly than other organizations, covering a portion of payroll and other administrative costs with the tourism dollars in addition to advertising, office supplies, food, travel expenses and funding for specific events. Since February, the organization has faced questions about its reporting of HOT usage and various expenditures.

Also open to the public, the organization’s top leadership and board of directors are especially invited to that meeting, Sellers noted; a handful have confirmed so far.

The day’s final discussion begins at 6 p.m., when Joslove will confer with Kilgore City Council members in a specially-called meeting.

Council members are currently charged with allocating the tourism revenues, vetting various organizations’ proposals on how they would use the monies to benefit the local inns and bolster tourism. Oncefunded, the beneficiaries must submit quarterly, itemized expense reports on their efforts.

According to Joslove’s most recent update on the HOT funds, available on the Kilgore News Herald Web site via tinyurl.com/HOTguidelines, there are nine statutorily-provided categories

for HOT expenditures, which “must DIRECTLY enhance and promote tourism AND the convention and hotel industry.”

Accepting the city’s invitation, Joslove’s visit falls a day after FY2013 begins Oct. 1.

“This will be a way to clarify the statute, especially regarding reporting requirements,” Sellers said. “This will allow us to have a better understanding of what sorts of activities do qualify for Hotel Occupancy Tax dollars. It will also add legitimacy to those activities that are being funded.”

WHAT: HOT Training WHEN: 2:30 p.m. Tuesday WHERE: City Hall RSVP: Sue Brooks, 903-984-5081

September 29, 2012

KILGOROUND BILL WOODALL TODAY’S NOT MERELY Saturday; today is the first day of bow-and-arrow deer season.

WE’VE never been deer hunting – gun or archery – but we’ve been involved in enough collisions with deer that we’ve lost our sympathy for cervines, so: Good hunting.

• OUR long-distance correspondent, Mart Lapin, who with his wife simply packed up one day and moved from his ancestral home here to Maine, sent us an electronic letter this week, commenting on – among other things – the weather.

NIGHTTIME temperatures have been as low as 37 degrees this month, he says, but for the first time in forever September will end without a frost. + SOME years back, Mart and I swapped stories about fiddlehead ferns. The plant is a modestly attractive fern that – immodestly, profusely – blankets the Cascade Mountains of the Pacific Northwest. It also grows in Maine, where the fiddlehead (the part for which the plant is named looks for all the world like the head of a violin) is sliced and pickled.

THIS morning the letter carrier delivered a parcel – a jar of pickled fiddleheads. The label says they should be served chilled so I’ve not yet sampled the surprising looking condiment, but I cracked the jar and smells like pickled okra.

THANKS, Mart. I think.

• IF you’re an officer or director of an organization – any organization – which has in the past or might in the future, ask the city for Hotel Occupancy Tax money, you should make an attempt to attend the HOT funds training session at city hall Tuesday.

FOR most organizations, the training session begins at 2:30 p.m. A special session with directors of the Chamber of Commerce is set for 4 p.m. The day’s final session is with the city council at 6 p.m.

TRAINING on the appropriate uses will be offered by Scott Joslove – he generally wrote the Texas law authorizing the motel room tax and specifying its uses.

• THIS WEEK’S BIRTHDAYS include: Sept. 29 -- Mary Aikman, Rob Schleier, Jack Elder Jr., Cecil Stokley, Randy Jones, Trace K. Fore, Len Stewart, Mrs. Brad Thrower, Mrs. Joe Ellis, Mrs. J.T. Stout, Gina Powell, Dana Wright, Marie Jones, Tommy Tate, Valorie Stangl, Danny Jones, Sara Wilburne, Jonathan Latham Sept. 30 -- Martha Page, Nick Hearne, Martha Beverly, Joe Welch, Craig Spofford, Lizzie Walker, Beverly Ragle, Gene Sparkman, Charles Peterson Jr., Edward Sanders, Kevin De Lange, Alysia Renee Butler, Yomaya Renee Jones, Mary Carpenter Hunt Lovebird, Chiketa Kelly, Doyce Freeman, Pauline Howell, Ruth Murphey, Dorris Wilson, Steve Doan, Larry Gattis, Ed Thieman, Anita Dowdy, Burl Burton, Wendy Williams, Terry Longmire, Whitney Williams, Brittany Williams, Mary Hunt, Callie Harvey, Kelli Jo Sadler, J.T. Odom, Jerry Ted Roberts, Peyton Maxwell Sharp, Carter Staney, Gleiselda Vazquez

Oct. 1 -- Adele LaGregs, Bill Hughes, Suzie Van Meter, B.B. Shelton, Renee Ethridge, Mike Maddox, Crystal Harkness, Amy Bates, Rusty Holcombe, Nina Woodward, Patricia Hanisee, Beverly Golden, Cynthia Williams, Erin Gore, Eddie Axberg, Erica Melton, Tamra Colbert, Betty Baker Oct. 2 -- Ken Taylor, Dalton Clark, Erik Moore, Joshua Jones, J.E. Nixon, Linda McKinnon, Mrs. H.W. Loper, Jason Colbert, Matt Harrington, Clay Kinney, Abie Jones, James Campbell, Monroe Lacy, Mandy Jackson, David McElroy, Angie Logan, Stephanie Kirksey, Bebe Murphey, Danny Warren, Luke Clements, Steve Reif, Barbara Miles, Justin Tolleson, Tasha Killingsworth, Gene Taliaferro, Glynette Ford, Donna Powell, Wyche Holt, Kegina Powe • THIS WEEK’S ANNIVERSARIES include: Sept. 30 -- John and Wanda Gunn, Gay and David Cale

October 6, 2012

City revamps hotel tax allocation model

By JAMES DRAPER news1@kilgorenewsherald.com The City of Kilgore’s method of allocating Hotel Occupancy Tax revenues is set for a major overhaul following training this week by attorney Scott Joslove.

In order to better facilitate the best-use distribution of HOT funds and monitor their appropriate expenditure – putting more ‘heads in beds’ at local hotels and motels and fueling tourism – city council members on Tuesday supported the creation of an advisory board and adopting an impactbased approach to investing the revenues through various entities.

Set for implementation early next year, current allocations in the Fiscal Year 2013 will likely remain as is while city staff coordinate with Joslove on common guidelines, by-laws and best practices utilized by other communities throughout the state. Come January, beneficiaries will likely be tasked to better prove the value of their HOT activities in advance and, probably, to be reimbursed on a per-event or per-expense basis.

President and CEO of the Texas Hotel & Lodging Association, Joslove is the statewide authority on HOT funds – he penned the 1989 legal opinion that serves as the current go-to guide for appropriate collection and expense of the hotel/motel tax. The initial five categories of statutorily-approved expenses have expanded to nine since Joslove’s first article, which he updates following each session of the state legislature.

As former Chief of Municipal Affairs for the Texas Attorney General and a previous First General Counsel for the Texas Municipal League, Joslove has conducted multiple training sessions statewide with government bodies and HOT beneficiaries. Prior to meeting with council members Tuesday, he added two more seminars to the list, first with seven of the eight current benefitting organizations, hoteliers and interested community members then with Kilgore Chamber of Commerce staff and board members. (See separate story on Page 1A) Though the meeting with the city council was open to the public, there were no attendees besides the Joslove and the council members.

Joslove advocates the common practice of having a central authority administer the dedicated, state-regulated tax under officials’ supervision – that advisory body, he said, should includes a multitude of voices and perspectives, especially from among the hoteliers who generate the tax and who, according to the original purpose of the law, should reap the benefit of more paying guests.

“It’s tourism and the hotel and convention industry – you need to show it’s having an impact on your lodging operators,” he said. “The city council has a fiduciary duty to make sure that those funds are being spent according to state law.

“Administering the hotel tax is not a perfect process. You’ve got to learn along the way.”

Historically, as recently as this summer’s budget cycle for Fiscal Year 2013, council members have fielded requests from applicants and subsequently divided projected revenues from the seven percent tax room tax. The benefitting organizations signed agreements with the city to send back itemized, quarterly reports on their related expenses.

Though they could not take any action during the specially-called informational meeting Tuesday, after discussing related legal issues with Joslove in closed session, in the council’s ensuing public back-and-forth the general consensus was to adopt Joslove’s recommendation of a standardized application form for a HOT allocation whether up-front or – more appropriately,

Joslove said – as a reimbursement. That first form, submitted to the advisory board, will likely include questions about the nature of the event, the anticipated number of visitors, the expected number of hotel rooms blocked off for the activity, costs, budgeted expenditures and other proving questions.

The key, Joslove said, is to allocate, not in terms of needs, but, rather, return on investment.

“You have a fiduciary duty to say everybody ought to be able to apply, but you’re going to look at your funding in terms of what impact it will have. In this case, the impact that is required is that you need to directly promote tourism and the convention and hotel industry,” he insisted.

“You look at, from the top to the bottom, what fills the most rooms.”

In some cities, allocations are made on a 10:1 basis – for every dollar of HOT money, a $10 return to the hotels is expected. In a community Kilgore’s size, Joslove said, a 3-to-1, 2-to- 1 or even 1-to-1 ratio could be acceptable, as long as the impact can be gauged.

“Whatever that return is, allow every event to show it. They will compete with each other to try to have more impact. It becomes a great win-win,” as more paid rooms generate more taxes to invested, he said. “When you give the money out, what is absolutely essential is that they operate under the same theory of ROI – return on investment – that they not only give the money out but they figure out, did this return us anything?”

Council members also generally agreed with Joslove’s recommendation for a post-event followup in addition to the benefitting organizations’ quarterly reports – How much impact did the HOT-funded activity actually have? How many people actually came? How many stayed overnight? Ultimately, was it an activity that showed appropriate use of the funds and is worthy of funding again?

“As their events are unfolding, I would not wait for the end of a quarter for them to submit their receipts or their documentation for an event. You might want to have it on a monthly basis where they submit records for reimbursements,” Joslove said. “That way, you don’t miss a practice.

You don’t wait until four months later when there’s a problem.”

The as-planned advisory board method allows for a multitude of expenditures deemed appropriate under HOT guidelines – from advertising and promotion to signage, logistical expenses and more – but, according to the council’s discussion Tuesday, will likely strip out blanket-approval for payroll and administrative costs.

The change most-drastically affects the Kilgore Chamber of Commerce, which is typically allocated more than half of total HOT revenues and uses it to fund 65 to 70 percent of salaries, utilities, travel to trade shows and other inhouse expenses in addition to tourism-related marketing and activities alongside its mission to promote local businesses Council member Neil Barr questioned how the city can accurately account for the impact of the chamber.

“I think there are ways to gauge,” Joslove countered. “You would look at, where is the chamber spending their money? How many leads are they getting? Were they qualified leads? For events that they hold, how many (visitor) hotel nights? Some of those events already have an existing impact – How did the chamber bump it up or take it down?

“For the point at which you fund the chamber, I would think you want to know what you get for that. What is the budget they give to you? What are the ROIs they anticipate?”

In their general discussion of the new advisory board, council members tentatively set the start date around Jan. 31, coinciding with the chamber’s fiscal year changeover.

“That would give us time to get all of this in place, and they would have lead time to get ready,” Mayor Ronnie Spradlin said. “If we made this happen, then that would give them 120 days notice that this happening.”

Council member Bobby Hale noted some concern about the four-month implementation of the new allocation structure.

“I like the idea,” he said, but “I think I would really have to look over the process of that committee – that’s not going to be an easy undertaking. They have to be trained, and they also have to understand the concept and the vision we have for these funds and what we want to do.

That’s not going to happen overnight. We don’t want to serve to frustrate the people that are putting on the events.”

“They all have the opportunities to prove the worthiness of their projects,” Spradlin said.

“The key is to have a very smart application for funds, so that you ask exactly the right questions,” Joslove added.

Following up on allocations – vetting receipts according to appropriate usage, for example – is a lot to put on a volunteer advisory board, Hale said.

“I would probably put that in the hands of the city staff,” Joslove answered. “I would use the board to look at the ROI, the relative value of the programs, to make recommendations to the city council.”

According to Kilgore City Manager Scott Sellers, while the current allocations will not immediately change, the HOT program moving forward will look substantially different from the past but will serve to give beneficiaries clear guidelines about the best, legal use of their funding.

“As questions have arisen from various entities regarding the appropriate use of HOT funds, it became apparent that a training from the statewide expert would be in order,” he said. “It is safe to say that those who were in attendance have learned much more about the HOT fund program that will help everyone be in compliance as we move forward.”

October 6, 2012

HOT guru stresses fiduciary duty, impact-based funding

By JAMES DRAPER news1@kilgorenewsherald.com Decades ago, what would eventually become the Hotel Occupancy Tax was originally levied on restaurants and attractions as well.

“Restaurants got out of it. Attractions got out of it. And the only ones that were in it were the hotels,” according to acknowledged HOT guru Scott Joslove. “They signed on to agree to it because they thought so long as it’s a win-win they’re good with it.”

A self-described “tax nerd,” Joslove said there was no good consensus on the appropriate use of the tax revenues when – after studying legislative history, reading the statutes and conferring with the Texas Attorney General’s office – he wrote what became and has remained the definitive opinion on HOT funds and how to use them to best effect, responsibly and legally.

“That article became very popular. It’s been used all over Texas. Chambers use it. Cities use it.

The hotels take a look at it,” he explained to attendees at two training sessions Tuesday. “It is pretty much agreed-to that the rules we talk about in that article are the rules that apply.”

Between the two meetings, city staff and council members joined a score of representatives from various HOT-benefitting organizations for Joslove’s primer on the latest guidelines spelled out in his article, updated regularly.

According to numbers compiled by the state comptroller’s office, Joslove said, hotels generally reap the lowest returns on tourismrelated events after restaurants, retailers, gas stations/convenience stores and liquor stores.

“The lowest recipient to that event is the only one that’s paying towards tourism,” he lamented.

It’s also why the first standard of a two-part test on the use of the lodging tax is that expenditures must directly enhance and promote not just or primarily tourism but specifically the lodging industry. “That was the compromise the legislature did many years ago. If the hotel industry is going to agree to do a tax that is twice the sales tax in some cities...then every expenditure must directly promote tourism and the hotel and convention industry.”

Simply defined, tourism means drawing someone from one city or county to another. They may visit for a particular event, activity or attraction or simply enjoy them while they’re visiting for another purpose – either way, those amenities must have a proven impact to merit HOT funding.

“Every expenditure – not some of them, not must of them, not the majority – must directly promote tourism. Typically, the expression is ‘heads in beds.’”

Mandatory for all of the eight organizations currently-funded by HOT, Tuesday’s audiences included representatives from the Kilgore Chamber of Commerce, Texas Shakespeare Festival, Kilgore Historical Preservation Foundation, the Kilgore Main Street Program, the Kilgore College Rangerettes, East Texas Oil Museum, the East Texas Pipe Organ Festival, Kilgore Community Concerts Association and others like Kilgore Soccer Association volunteers and Kilgore College leadership as well as individual hoteliers.

Joslove encouraged the groups to coordinate their efforts with local hotels and motels: reserving rooms, negotiating event rates, surveying participants and following up on how their activities benefitted local lodgings.

“The second prong is that every expenditure must fit into one of nine statutory categories,” he said.

Those categories include convention or visitor information centers, registration of convention delegates, advertising and promotion, promotion of the arts, historical preservation, certain sporting related events, sporting facilities, way-finding signage to tourist attractions and shuttling convention delegates between hotels. (Find the article on the Kilgore News Herald’s Web site via tinyurl.com/HOTguidelines) Would-be beneficiaries must prove their HOT-funded activities will be directly beneficial to hotels and, ideally, measurable, Joslove explained. They must submit clear plans, attendance projections, budgets and other details to show an estimated return on investment for their event or revenue-usage.

“What are the events that fill up your hotels?” he asked. “Figure out what you’re doing well now.

What brings more people in? What’s visited more? Look at what’s your biggest attraction and try to spend accordingly.”

Beneficiaries bear the responsibility of using their funds appropriately, he warned, lest they suffer the same fate as the Huntsville Chamber of Commerce, sued by the city for violations of its fiduciary duty to spend its allocations in good faith, according to state guidelines and with proper documentation under the law.

“What I advise folks to do is, when you look at it, treat it like you would any other business.

Explain what any expense is for,” he said.

Does a particular material purchase actually qualify? Does a dinner receipt show who ate with whom, where and how the meal actually benefitted tourism in Kilgore? Does a staff member spend as much time on HOT activities as he or she is funded for?

“Every expenditure of the hotel tax – if that’s by the city, by the chamber, by another entity – that’s open record,” Joslove noted. “It’s not easy to keep all those records. I can tell you that it’s a process. And it’s an important one. You take on a duty, it’s called a fiduciary duty, to do your best.

“Make sure everybody’s on the same page so it’s not a 'gotcha' game afterwards.”

Entities with large allocations should agree to contractual obligations, clear expectations of how money can be spent and how it must be reported.

“I think it’s important. If I were giving that money to the chamber or to an entity, I would ask that they present that contract for signature and their entire board get a copy of that so that they all understand. because they’re all part of that voting entity,” he said during the day’s second meeting, tailored for the Kilgore Chamber of Commerce. “If you’re going to get this money, you’re going to show how it’s meeting the statute.”

Fielding questions from the audiences, Joslove answered Kilgore College President Bill Holda’s query about whether or not the City of Kilgore could use HOT money to fund a marketing analysis and strategic plan for advertising the community.

“Absolutely you could,” Joslove said. Likewise to Kilgore City Manager Scott Sellers’ question on whether the historical restoration of the Crim or Texan theaters is appropriate. “Yes. You can do that. You just need to be able to make a reasonable finding that expenditure for that purpose would lead to events that hotel guests would frequent.”

Joslove also agreed to work with city staff on developing legislation to help Kilgore qualify for the currently-restricted sporting-related categories.

Overall, Joslove said, expend HOT funds within common best practices, within the law.

“Put (yourself ) in the shoes of a hotel operator and determine how much they would pay” for tourism activities, he insisted. “Run it like a business. Treat it like you would treat your own business. Pretend it was your personal money. That’s what your fiduciary duty is about.”

For Kilgore Mayor Ronnie Spradlin, who attended both general meetings and the following council meeting along with Sellers, Joslove’s training revealed a number of potential uses for the tax revenue in addition to currently-funded projects.

“The bottom line is now we’ve been made aware of the lawful uses as well as best uses of HOT funds, and we have a fiduciary responsibility to comply with the intent of the law that governs HOT funds,” he said.

Currently-funded organizations now can improve their events to fully fit under the state guidelines, he said; likewise, more local entities can apply for HOT funds for new activities if they can prove their impact while others can alter and improve their plans in order to qualify.

“I think it will encourage individual or smaller groups to make use of the HOT funds for athletic tournaments, for reunions, for small conventions and events that really earlier they weren’t aware that they could qualify for help. If you do fill up the hotel rooms, you have an opportunity to take advantage of the HOT funds,” Spradlin said. With the HOT funding structure scheduled for a major change (see separate story on Page 1A), for the existing beneficiaries, “I think it gives them the opportunity to maintain the same funding they’ve had in the past, increase the funding or give them another way of looking at or justifying their funding. If they can elaborate on what they’re doing, they stand to get more money.

“I think the education we’ve received on the purpose of HOT funds and why we get them has made us reevaluate how we spend them with each and every entity that receives them. It opens our eyes to the responsibility we have in receiving them and spending them. I think we’ve been taught how to optimize hot money and, to quote Scott, to ‘get the most bang for our bucks.’”

October 27, 2012

KSA seeks HOT funds

By BILL WOODALL bwoodall@kilgorenewsherald.com Vickie Raymond, representing Kilgore Soccer Association, Tuesday assured the city council her organization puts “heads in beds” during their annual fall tournament.

Raymond went to this week’s council meeting seeking $5,000 in Hotel Occupancy Tax money to help cover tournament expenses.

The tournament in honor of Dr. James Repasky will feature 40 teams this year from as far away as Jasper and south Dallas. This tournament, she says, is the last before the tournament of champions held in Dallas in December.

Often, she said, “there will be 120 players plus parents here for the whole weekend.” She said they provide teams a list of motels, restaurants and attractions.

“This is the only fund-raiser KSA has during the year. Proceeds from this tournament help cover expenses the rest of the year, plus this cost of this tournament.”

Raymond’s request as listed as a presentation item on the council agenda so the council could not, under Texas open meetings laws, vote on her request. It will be on a future agenda for discussion and action.

In other business, developer Kenny Mobbs delivered a report on progress in his Windsor park development on the area of Airport Road in far northeast Kilgore. The city helped with paving and infrastructure in the subdivision and is to be repaid as the development progresses.

Mobbs said six homes in the north section has sold – three are already occupied – and he’s fielding requests for information about pricing in the southern section. Streets there are not yet paved, he said, but all pipelines have been relocated and he expects to pour concrete Oct. 31 He’s also negotiating with a commercial developer interested in putting a convenience store on the corner of FM 2087 (Dudley Rd) and Airport Road.

Demand for the homes and lots is so high, he said, “we’ve been scared to market it. We’ve got some other projects going, too, so we’re afraid to market this very heavy for now.”

November 17, 2012 City maintains employees' benefit plan In other business Tuesday night, council members: • Approved the final draft of the city’s new Customer Service Plan, now available for public review on the city’s Web site, cityofkilgore.com “That’s indicative of the work that we have been doing at the city and will be doing for this upcoming year,” City Manager Scott Sellers said. “We have over 250 items that the city staff will be working on through 2013, this Fiscal Year.”

The document includes various measures the council – and community – can use to monitor progress in realtime, Sellers noted, as well as accountability elements like budget numbers, milestones and performance indicators.

“It also has next to each task, an outcome. Ultimately, ‘Why are we doing each task on the list? What is the city doing and why?’ The Customer Service Plan answers those two questions very well.”

• Voted to continue the city’s current employee benefits plan while reviewing the setup toward planned changes in the next Fiscal Year.

According to Sellers, the city has two options for employees when choosing health insurance; the options are differentiated by premium, out-of-pocket limits and other health-related benefits.

Initially on the table Tuesday, “The discussion was to substitute one of the plans which currently is not receiving many participants with a high-deductible health savings account,” Sellers explained. “It’s similar to the city’s standard plan. This new HSA would allow employees to make contributions to an account that is restricted for health related expenditures.

“The Health Savings Account is a qualified tax-free account and is portable, meaning it belongs to the account owner and remains with the employee even postemployment.”

Of particular concern was, and remains, what to do about the retirees on the city’s books – in 20112012, claims experience for seven people (and spouses) equalled half of the total claims by city employees.

With about 160 employees at any given time, the premiums for staff increase due to the retirees’ claims, Sellers explained.

“At the meeting, it was proposed that the retirees pay a larger share, a larger percentage of the premium, to offset higher costs of the total pool since they have higher claims experience within the pool.”

Citing concerns about increasing the retirees’ costs with too little notice, the council decided to continue with the existing plan for now, accepting a four percent increase in premiums.

“It’s unfair to increase their expenses and cost for insurance with no notice, and yet it’s a lot for the citizens to bear also,” Mayor Ronnie Spradlin said. It will be an ongoing discussion through the year while notifying the retirees that changes are ahead.

“Hopefully, there will come a happy medium, middle of the road.”

• Approved a $5,000 Hotel Occupancy Tax allocation to the Kilgore Soccer Association.

The city is in the midst of overhauling its allocation system, Mayor Ronnie Spradlin told Vickie Raymond, representing the association.

The group already has blocks of rooms set aside at local hotels for the Doc’s Fall Wind Down tournament, set today and tomorrow, Raymond said.

“Hopefully, after the fact, I can come up with a stronger figure on how much we had,” she said.

• Welcome the city’s new director of human resources, Frank Wilson, on the job since Nov. 12.

Wilson was already familiar with the city when he came aboard, Sellers said – previous work with a drilling company and local hospitals, as well as a love of history, led to frequent trips to the area.

“We are very happy to have him,” Sellers said. “He’s already been making great progress for the city.”

January 2, 2012

City finalizes new guidelines for HOT

By JAMES DRAPER news1@kilgorenewsherald.com The City of Kilgore aims to more closely monitor its investment of Hotel Occupancy Tax revenues in 2013, requiring would-be beneficiaries to prove their plans and quantify the effective impact of using the monies to fuel local tourism, putting more ‘heads in beds’ at the inns that generate the cash.

Through 2012, money raised through the city’s seven percent tax on local rented rooms was allocated by city council members at the request of various organizations. Recipients were tasked with spending the money on events, activities and programs that brought more visitors to the eight – now nine – hotels and motels operating in the city limits.

Organizations that received the funds (traditionally the Kilgore Chamber of Commerce, Texas Shakespeare Festival, Kilgore Historical Preservation Foundation and Kilgore Main Street Program) were required to submit itemized, quarterly reports on their HOT expenditures according to the state’s guidelines.

And that was that.

Renewed focus on the funds last year, including more than twice as many applicants seeking an allocation in the Fiscal Year 2012-2013 budget, led city officials to invite Scott Joslove, de facto author of the state’s HOT statutes and the go-to guru statewide, to present a primer in October on proper, legally-mandated investment of the funds.

“From his training, we learned very specifically that every HOT fund expenditure must directly promote tourism. His rule of thumb was (visitors must travel from) another city or county outside of 50 miles,” City Manager Scott Sellers explained. “It also must benefit the hotel and convention industries. His rule of thumb was ‘heads in beds.’”

All expenditures of Hotel Occupancy Tax revenues must also meet a particular qualifier, most of which apply to Kilgore: funding convention or visitor information centers, registration of convention delegates, advertising and promotion, promotion of the arts, historical preservation, expenses at certain sporting-related events or facilities, way-finding signage to tourist attractions and shuttling convention delegates between hotels.

“That said, it really does form the basis of creating a more formalized program, moving forward,” Sellers said.

The current plan for the new allocation program, following Joslove’s recommendations, is set for its debut this month. The overhauled model includes the creation of a Hotel Occupancy Tax advisory board with at least five members including a representative from the city council (which will ultimately review and ratify the board’s decisions), two hoteliers, a restaurateur and an atlarge member from the community. Council members will appoint the members of the board, who will be subject to their own set of by-laws, still being developed.

Once the new committee is in place, it will hear all new applications for HOT funding as well as resubmitted requests from those organizations who received HOT-allocations from the city council in the FY 2013 budget – the funds, Sellers noted, have been appropriated but not expended at this point.

Joslove provided best-practices guidelines for HOT usage – “We have taken those and made them unique to Kilgore,” Sellers said. “This would be the application packet to go to each entity requesting the funds with an introduction and rules governing the application.”

Requesting entities will be required to fill out financial data about the organization in addition to describing the planned event or program of work, noting the HOT qualifier, estimating the expected number of hotel visitors a particular HOT-funded event or project will garner in addition to providing information about rooms already blocked for the event at a local inn.

With the packet from Joslove, the city also received a sample contract. According to Sellers, each HOTfunded entity will be required to sign an individualized agreement with the city for each allocation unless the board chooses to lump various projects into one.

Any expenditure of HOT funds will be tied to a requisite post-event checklist or review form, he noted.

“This really does take a lot of guesswork out of auditing these events.”

The working, 10-page application package notes the allocated organization’s responsibility to prove the event or program met its projections.

“There are several places where audits of expenditures, clawbacks or reimbursements may also be requested,” Sellers said.

A sample contract from Bryan/ College Station included a formula where the reimbursement value is tied to the number of rented rooms an expenditure generated times the local hotel tax rate at the time multipled by the occupancy rate. The community’s funding structure also included bonuses for ensuring the potential of return of guests, creating a marketing plan or scheduling the event on a “date of need,” i.e. an open weekend between other events.

Kilgore’s multiplier will be set once the advisory board gets down to business, Sellers told city council members.

Pre-funding requests must be submitted at least 90 days prior to the event while the post-event analysis is due no later than 30 days after along with proof of advertising expenditure and actual rooms rented.

For those organizations unable to estimate expenditures in advance – whether for a compressed event development timeline or inability to accurately predict numbers, i.e. a new attraction – the board will also consider ‘after the fact’ funding if organizers can prove a headsin beds impact.

Ancillary tourism benefits – i.e. for historical preservation expenditures like upkeep on KHPF’s memorial derricks on the World’s Richest Acre, blanket advertising or wayfinding signage – can still be funded under the new structure, Sellers noted.

“They don’t have to be coming here directly for that, but if they are attending something like the World’s Richest Acre while they’re here then, ancillary, it would qualify for some sort of hotel funding,” he explained. “People don’t come here to see a sign, but they come here and the sign points them to the World’s Richest Acre.”

January 12, 2012

New board gets briefing on HOT issues

By JAMES DRAPER news1@kilgorenewsherald.com Members of Kilgore’s Hotel Occupancy Tax Advisory Board will hold their first official meeting Monday morning, continuing the city’s overhaul of how the tourism revenues are distributed.

Following city council’s official action Tuesday night, four of the members of the board met Wednesday afternoon to review their new by-laws and the current status of the HOT program with Kilgore City Manager Scott Sellers.

Discussion-only, the board took no action, waiting for the first posted meeting at 10:15 a.m.

Monday at City Hall.

Kilgore levies a seven percent Hotel Occupancy Tax on local rented rooms (in addition to the six percent collected by the state) and allocates the money to various organizations. Those, in turn, use the funds to promote tourism in order to generate more ‘heads in beds’ at the nine hotels and motels operating within the city limits.

The state maintains a set of guidelines and approved uses for the money, emphasizing a twopronged approach, that “every expenditure must DIRECTLY enhance and promote tourism AND the convention and hotel industry” within nine stated categories of expenses.

Enforcing the directive now falls to the members of the HOT advisory board, including hoteliers Rohena Patel and Pete Patel, restaurateur Gary Beasley, community member Evelyn Bolding and council representative Bobby Hale, who abstained from the council’s 4-0 vote Tuesday.

“In the past, the city council has received all the HOT funds,” Sellers told the group. “The hotels are the stewards of that. They collect it, and they pass it on to the city.”

Traditionally, council members took a projected estimate of HOT revenues and divided it between four organizations on a percentage basis – including the Kilgore Chamber of Commerce, Texas Shakespeare Festival, Kilgore Historical Preservation Foundation and Kilgore Main Street Program – distributing the money pro rata throughout the year and saving excess collections.

“It’s a good program, but absent of a board like this it puts the council in a rough spot,” Sellers noted, unable to fully account for the effectiveness of expenditures in addition to other duties.

With renewed interest in the funds last year, a need to more closely-monitor the use of the money and more applicants requesting allocations for Fiscal Year 2013, the council in October accepted state HOT guru Scott Joslove’s recommendation to establish the advisory board.

Prior to the advisory board concept, the council heard requests and ultimately allocated $280,500 of projected funds during their annual budgeting process last summer including a maximum of $152,450 for the Kilgore Chamber of Commerce, $35,000 each for TSF and KHPF, $30,000 for Main Street, $10,000 for the East Texas Oil Museum and the Kilgore College Rangerettes, $5,000 for the East Texas Pipe Organ Festival and $3,000 for Kilgore Community Concerts.

After Joslove’s HOT training, the council approved one-time allocations of $5,000 each for the Kilgore Youth Soccer Association and the Texas Hotel & Lodging Association.

The majority of the organizations have already been paid in full; the traditional four – the chamber, Main Street, TSF and KHPF – have received their pro rata funding for October and November 2012.

“Each entity had that budgeted amount allotted to them. It stops in January,” Sellers said.

“Everything now gets channeled through this board.”

The council’s direction, he noted, is to keep the organizations at their funding levels, but all will need to re-apply to the advisory board using the newlyadopted application packet later this month. On Monday, the new board is scheduled to decide whether or not to pay-out the organization’s scheduled December allocation.

Moving forward, Sellers said, all applicants will be tasked with proving their case for funding before the advisory board, submitting detailed plans on how the monies will be used, how many hotel rooms they’re likely to generate, etc. They’ll also be required to send postevent reports proving the effectiveness of the city’s investment.

“The council, as part of this program, has said that these funds should really go toward events or marketing -- hard, fixed costs rather than salaries,” he added. “It’s going to be, hopefully, pretty black and white. Once you have the application in front of you, they’re just going to have to justify room nights.”

Council members will still be the final authority on allocations, voting on the board’s recommendations and, if necessary, hearing appeals from applicants.

“One of the good reasons to have a board like this is it outlasts the election of a city council,” Sellers said. Also, on Monday, the new board members are set to elect a chairman and choose which members will sit for the entirety of their appointed two-year terms and who will sit, initially, for half a term in order to stagger appointments. “You guys are going to understand what the statute is and what the purpose of these funds is. In the end, it has to benefit the hotel industry. It’s pretty darn clear what you can spend it on.”

As a hotelier, Pete Patel said he thinks the board is a great idea, a means to ensure the collected taxes are fueling more hotel stays.

“I was actually pushing for it,” he said. “It will justify the funds being used and spent. It’s great for Kilgore.

“Bottomline, end goal, with these funds is to put heads in beds.”

January 16, 2012

HOT board members await new applications from funded groups

By JAMES DRAPER news1@kilgorenewsherald.com They’re likely to keep their budgeted amounts, but the four organizations receiving monthly allocation from Hotel Occupancy Tax revenues are being asked to resubmit their requests and make their case for ongoing funding from the tourism dollars.

In a unanimous vote Monday, the members of the newly-created HOT advisory board recommended Kilgore City Council members approve the entities’ December allotment, their third tourism-tax payment of Fiscal Year 2013. January’s disbursement, however, and the rest of the groups’ monthly checks hinge on their successful application to the board in the next few weeks.

“We have a fiduciary obligation now to ensure those funds are expended appropriately per state statute,” Kilgore City Manager Scott Sellers explained.

Raised through a seven percent tax on rooms rented at nine local hotels and motels, the collections are meant to be invested in events and programs that both fuel tourism here and bolster the hotel and convention industry by putting ‘heads in beds’ through statutorilypermitted expenditures.

Retooling the HOT program since October, “This first year’s a little different than all subsequent years,” Sellers said. “Since we were right in the middle of creating this board and getting educated on how this is supposed to work, the council had already considered and allocated those funds for the four entities.

“We’re not going to change the commitment to any one of these entities, but each entity has to justify what goes to them.”

In their last budget cycle, city council members divided $280,500 in projected collections between the Kilgore Chamber of Commerce (60 percent of revenues, capped at $152,450), Kilgore Historical Preservation Foundation and the Texas Shakespeare Festival (13.86 percent each, maxing out at $35,000) and the Kilgore Main Street Program (11.88 percent of total collections, up to $30,000).

Once the organizations have reached their maximum allottments, additional collections will be set aside with approximately $80,000 dollars of past, excess revenues awaiting one-time allocation.

“We’re on the hook to make sure they’re doing what they said they’re going to do for the request,” board member Gary Beasley said. “Hopefully they’re creating revenues in the event where this isn’t their primary source of income or revenue.”

The grouped adopted a change to their by-laws Monday, reducing the 90-day lead-time for potential HOT-funded requests to 60 days. That time frame, the board members agreed, will still reinforce to any requesting organizations the need to submit their applications well in advance of a planned event, allowing time for the board’s review, decision and ratification by city council members.

“If you’re doing a larger event, you better have thought about it more than 60 days,” council representative Bobby Hale said. In the future, those organizations that receive monthly allocations from a pre-set amount in the budget will need to submit their annual funding requests in advance of the city’s budgeting process in June and July.

“Those four really haven’t changed over the past several, several years. Those are the ones we really have to budget for,” chairman Pete Patel noted. “Other onetime events, those are easier: one amount, one check. It’s a lot easier for us to say ‘yay’ or ‘nay.’”

In addition to their applications – noting marketing plans, estimates of hotel stays and other ways to show a return on the city’s investment – and post-event followups, the long-funded organizations should also be required to submit monthly expense reports, Patel said.

“That way everyone knows where the funds are being spent.”

In addition to the by-law change and electing Patel as chairman, in other housekeeping business for their first official meeting the board members staggered their terms: Patel, fellow hotelier Rohena Patel and Hale will all serve two years, initially, while Beasley, a restaurateur, and community representative Evelyn Bolding accepted one-year terms. All can be reappointed in the future.

Moving forward, the board members will meet regularly at 3 p.m. on the first Wednesday of each month or for specially called meetings, especially in the immediate future while they bring the program up to speed. The group’s next meeting is set for 3 p.m. Jan. 23 – with the application packet now available online at cityofkilgore.com, Pete Patel will contact the four organizations with ongoing funding to arrange their request resubmission this month.

“They’ve already planned forward for this Fiscal Year on the funds they’re waiting on,” Beasley noted.

Starting up, the 60-day period should be waived for those organizations, Hale said, giving them the chance to make their case as soon as possible to avoid an interruption in funding permitted events.

“They’re going to have to come back in and submit an application for the remaining funds and basically justify the funds we’ve already allocated to them,” he explained. “For the remaining funds that you’re supposed to get now through the end of the Fiscal year, you’ve got to justify those.

“The question is, are the funds going for an approved HOT function?”

January 26, 2012

HOT board approves allocation for chamber, awaits detailed budget

By JAMES DRAPER news1@kilgorenewsherald.com Pending approval by Kilgore City Council members, the Kilgore Chamber of Commerce will receive its January allocation of Hotel Occupancy Tax revenues while the organization’s leadership prepares a projection of anticipated, qualifying expenditures through the end of the Fiscal Year.

Meeting with the members of the city’s new HOT advisory board Wednesday, chamber of commerce board chairman Vic Price and tourism director Carol Hinton explained the difficult task the organization faces at present, paying for its budgeted tourism expenses out of other funds until the hotel tax checks come through.

“In the past the chamber has always operated off an allocation to pay for the visitors center, to pay for the brochures – things we can’t charge our membership for,” Price said. Accepting that council members want to avoid paying salaries out of the funds, typical in the past, he noted other planned expenses that still need the funding. “We budgeted it because we thought it was going to be there this year. How do we need to handle that as a chamber?”

“Presently we’re taking it out of our operating account which is our membership dues,” Hinton said. “We can’t do that because that’s not what the purpose of the dues are.”

Asking for patience while the advisory committee oversees the recent changes in the HOT allocation program, board member Garry Beasley acknowledged the chamber’s predicament, similar to the Texas Shakespeare Festival, Kilgore Historical Preservation Foundation and Kilgore Main Street Program, all of which were granted a monthly share of monthly HOT revenues and must now justify their planned expenses.

“We’re going to transition, obviously. This fiscal year is going to be different from the next fiscal year,” Beasley said. “We asked you to come here today because you’re unique among any of the applicants in having labor expenses.”

According to Kilgore City Manager Scott Sellers, the path to the current system began almost one year ago when the Kilgore News Herald requested more information about the city’s Hotel Occupancy Tax revenues, raised through a seven percent tax on local rented rooms and reinvested, through various organizations, to put ‘heads in beds’ and promote tourism.

“Last year, at some point early in the year, questions started getting asked from the paper about expenses, the quarterly expenditure reports,” Sellers explained. “To make a very long story short, we could not produce the reports because, we maintain, we never received them – we were never given the detailed reports that possibly per statute were necessary.”

“Talking to the chamber, when they produced what they said they had given us, they had been giving us what would be termed a budget, but not an expenditure report.

The city’s finance director, Lawanna Williams, met with the chamber’s administrative assistant, Barbara Garrett, to normalize the chamber’s books, Sellers added, eventually bringing in a CPA to assist.

“They went back a year and a half, two years, recreated some of these reports with detailed expenditures on them.”

Ultimately, in October, the city invited Scott Joslove, president of the Texas Hotel & Lodging Association and the state authority on Hotel Occupancy Tax, to review the local program and

hold a training session with representatives of organizations that currently request HOT funds or those that might in the future.

Joslove recommended the creation of the advisory board, Sellers said, as a formal way for the city to track HOT expenditures and ensure they abide by state statutues requiring they both directly impact the hotel and convention industry and conform to nine categories of approved expenses.

“He recommended, especially for this first go at it, the first year, all the expenditures you look at very closely – not necessarily giving money to operations unless they can be tied specifically to an event or project,” Sellers explained. “We can thank the paper for asking the questions because it has really straightened us up on how to put this program together.”

Considering their broad program of work, the chamber is one of the most important entities that receives HOT funds, board chairman Pete Patel said.

It’s a tricky situation, he allowed, in that the chamber and the three other regularly funded organizations are different from most HOT requestors in requesting annual funding instead of perevent.

“The funds being distributed on a monthly basis, we can still do it that way,” Patel said.

Administrative expenses can still be funded, but in all expenditures, “The costs just have to be justified in the (application) packet.”

The chamber did submit their budget in good faith during the city’s own budgeting process last summer, Sellers said. The council approved a maximum allocation of $152,450 and the chamber continued its budgeting with that in mind.

“You’re trying to run an organization on that budget,” he said. “Those dollars will still be there, kind of on a draw-down basis. You can still request that same amount, so long as it’s justified by the application approved by the board.”

“We don’t want to handicap you now,” Beasley said. “You have expenditures that you need to cover.”

According to Price, the chamber will immediately augment its application with projected expenses through the next eight months (the organization’s Fiscal Year mirrors the city’s, running Oct. 1 – Sept. 30) for submission at the end of February.

“We have a calendar for the year, so we can go out and look at what we’ve done in the past, what we’re continuing. I won’t say that we’ll have every single thing documented, but we have a good idea,” he explained. Especially while they search for a new chamber executive, “As a board, I don’t want to start changing things until we have a good system in place. We can run on the precedence of the way things were being done before.”

Moving forward, he agreed with the advisory board’s request to submit quarterly postexpenditure reports for review.

“It’s not the intent of this board to have you come before us every time you have an event,” explained Bobby Hale, the city council’s representative on the board. In the future, a one-time presentation during the city’s budgeting phase, covering the chamber’s annual program of work, would be acceptable. “That’s not to say that if something doesn’t come up during the year that looks like a great opportunity that you can’t come back.”

During their meeting, the advisory board also discussed what multiplier they will utilize in allocating HOT funds according to anticipated hotel stays and in following up after HOTfunded events. The members delayed a decision on the item to allow for further research.

The group will meet again at 4 p.m. Jan. 30, aiming to review allocations to KHPF and TSF, scheduling the Main Street Program and HOT application reviews for Feb. 6.

January 5, 2012

Chamber executive accepts top post at cattle association

By JAMES DRAPER news1@kilgorenewsherald.com Mike Coston, who has served as Kilgore Chamber of Commerce president since 2001, will now take the reins of the Texas Longhorn Breeders Association of America.

In a weekly enewsletter Dec. 28, the organization’s board of directors announced their hire of Coston as President/ CEO, planning to introduce him to the association’s general membership Jan. 18 and anticipating he’ll take office no later than Feb. 4.

Coston submitted his resignation as chamber president Friday morning, chair-elect Vic Price confirmed, and will continue in the position through the end of the month.

“The chamber has grown very well since he’s been here,” said Price, vice president of distribution for Orgill. “I’m sorry to see him go, and I wish him the best of luck.”

Price, who will be installed as the chamber’s chairman of the board during the organization’s first Business of the Year luncheon Jan. 22, is set to oversee the hiring of a new executive for the group.

Having not had time to confer with the rest of the chamber’s board of directors, Price could only speculate on the coming search for a new president and CEO. A little more than a quarter into the organization’s Fiscal Year – the chamber board adopted the City of Kilgore’s October through September schedule last fall – the group will probably organize a search committee including present and past board members as well as city officials and others, Price said. He expects a hired consultant will assist in the search and interviews, helping narrow down the applicants for a final vote by the board.

“It’s pretty standard,” he said. In the meantime, tourism director Carol Hinton and office assistant Barbara Garrett will hold down the fort. “My recommendation would be that we maintain Carol and Barbara to handle the day-today operations, and the board will be there for their support until we can bring in a new executive.”

Between contacting his chamber board members individually Friday, Coston confirmed his new position in a brief interview and explained the scope of the breeders association’s goal to promote the Texas Longhorn breed.

“It has members throughout the world,” he said.

According to the TLBAA Web site, the association works “to recognize the Texas Longhorn and its link with American history, to promote awareness of Texas Longhorn cattle, to recognize present breeders, to encourage others to develop and maintain herds and to preserve for posterity this magnificent breed of cattle.”

On the group’s Facebook page, Schumacher Cattle LLC welcomed Coston to his new position: “We have great hopes for you and your work taking our breed registry to the next level! We can’t wait to see what you and the rest of the team have in store for us!”

Kilgore Mayor Ronnie Spradlin praised Coston’s tenure with the local chamber.

“Most chamber presidents average about five years. Mike’s been here 12, which says a lot for his ability,” he said. “To better their careers, they have to move on to bigger places, just like football coaches and preachers.

“We’re thankful for Mike being here and wish him well where he’s going.”

February 2, 2012

Chamber bids farewell to chief, hires interim

By JAMES DRAPER news1@kilgorenewsherald.com Thanking outgoing president Mike Coston for his service Wednesday evening, the organization’s leadership announced Friday that Ronnie Morrison, a Henderson resident and Longview native, will take the reins of the local chamber on Monday, Feb. 11.

“He has a lot of experience in chamber work,” board chairman Vic Price said Friday. Retired, Morrison won’t be seeking the champer’s open executive post full-time but will guide the organization’s program of work while a search firm seeks a permanent replacement. “I think he’ll be a good fit.”

According to a press release Friday afternoon, Morrison has extensive experience in chambers of commerce and economic development work, most recently as executive director of the Upshur County Economic Development Corporation. He retired from that position in March 2012, adding another line to a list of postings including executive terms in multiple chambers of commerce in Bryan/College Station, Plano, Lewisville and Rock Hill, S.C. Morrison also worked as a consultant to the Cleveland (Texas) Chamber of Commerce.

“We were pleased to find a person with chamber experience who was in a position to assume the job as interim president,” said Bob Martin, board chair-elect and chairman of the executive search committee. Though not a candidate for the full-time job as president, Morrison “will assist the search committee in the selection of a new chamber president while working with chamber staff and volunteers in the day-to-day operations of the chamber of commerce.”

With a background in English and journalism from Stephen F. Austin State University, Morrison also attended economic development programs at Texas A&M University and the University of Oklahoma. He attained the U.S. Chamber of Commerce’s Institute of Organization Management Certification in 1999.

“I’m excited about Kilgore and the opportunity to get back into the chamber business. I’ve been out of it for a while,” Morrison said Friday. His style, he says, is peoplefriendly. “I think working for a chamber of commerce is a vocation that interacts with people. You have to make people understand that a chamber of commerce is a form of advertisement for a business.

“My style is to do what I have to do to make things work. That’s what I want to do in Kilgore.”

Keeping in mind that he’s an interim, Morrison said his early plans for the shortterm stint will be to meet as many people as possible who have involvement with the chamber.

“At all levels – including city management, business people and the workers, the people who make things happen. I don’t really have a feel at this point as to what I want to accomplish first.

Just get out and be visible,” he explained. “I’m just going at it with an open mind. Certainly I’ve talked to some people already, and I have some ideas.”

Morrison lives with his wife, Patricia, in Henderson. The couple has two grown children and five grandchildren.

Setting a meeting with their chosen search firm in the next two weeks, Martin said Morrison’s hire releases some of the immediate pressure of filling the void in the chamber’s leadership, especially as the overall search and ultimate permanent hire could take as much as six months to find the ideal candidate.

“I think he’s a perfect fit for us for short term. He’ll do great,” Martin said. “Hopefully, it’s a new chapter for Kilgore.”