(E-Mail from Chris Cottrell To Ann Hodge – 10-19-06) 

Ms. Hodge: 

 A.D. Muller was kind enough to forward me the e-mail that you sent yesterday responding to his questions.  I have to say that I was quite taken aback by the tone of your e-mail and the allegations that you put forth in that correspondence.  As Co-Founder of the Katy Citizen Watchdog$ I feel that a formal response to you and your organization is in order.

I was absolutely astounded to read your allegation that the Katy Watchdogs are receiving money from Americans For Prosperity.  I thought that this ridiculous accusation was only the delusion of a couple of bond committee members.  I had no idea that a well respected local organization such as yours would espouse such a notion.  Let me assure you that the Katy Citizen Watchdog$ don’t receive a single cent from any individual or organization.  I would therefore request that you please cease spreading this lie throughout our community. 

What I find so very fascinating is why some in our community find it so very difficult to believe that two (2) ordinary unknown taxpayers in Katy decided one day to stand up and say “NO” to local government.  Why do some people insist on believing that individual thought and reason never enters into the equation?  Ms. Hodge, Kevin Tatum and I started this organization because we felt that the taxpayers of Katy were not being represented like they should be.  Kevin and I decided to quit complaining and try and do something about it.  Kevin and I both believe that sometimes in life one has to stand up for what is right regardless of the personal or professional cost.  We felt that this was one of those times.

So has Americans For Prosperity helped the Katy Watchdogs?  Certainly they have.  They have provided us with mountains of information to help us be an effective taxpayer advocacy group in our area.  The Katy Watchdoogs are very proud to be affiliated with Peggy Venable and her Austin group.  We also plan to help Peggy in drafting legislation this session that will hopefully stop some of the current insanity going on in school districts across this state. 

Let’s be very clear, the Watchdogs are not some anti-tax/anti-bond group.  We have no problem with paying our share of the “freight,” but we demand that our elected officials, the stewards of our hard-earned tax dollars, treat our money just the same as if it were theirs.  This same belief applies to bond initiatives.  We understand that from time to time school districts have to float bonds in order to fund major capital expenditures.  What we don’t approve of are “blank check” bonds that contain over-nflated construction/repair costs coupled with unnecessary items and expenditures. 

Ms. Hodge, many of the taxpayers in our community are crying “uncle”.  They are feeling over-taxed and under-represented.  Many are being taxed out of their homes, and the Watchdog$ fear that under HB 1 many small businesses in our community are going to be taxed out of existence.

I want to take a moment and address this “credibility” issue that you raised in your e-mail.  This word has been thrown around quite a bit lately, and what we have determined is that your definition of “credibility” has everything to do with agreeing with everything said by our School Board, our Superintendent, the Katy Area Chamber of Commerce, K.I.D.S. and the Katy Economic Development Council.  Because the Watchdogs don’t fall in lock step with the beliefs of these groups we then are labeled as an organization with zero credibility.  All we can tell you is that based on your definition of “credibility” we are proud to not have any.  It is truly unfortunate when the word “dissent” becomes a four-letter word.  It’s also a sad day when one realizes that so many in our nation have lost their natural distrust of local government. 

Ms. Hodge, just because government says they need money doesn’t mean that we should all just blindly empty our savings accounts and hand all we have over to them!

I also want to take a moment and address the tone of your e-mail.  Ms. Hodge, whether you intended to sound threatening or not, your e-mail certainly contained a threatening tone in my opinion.  I found the tone quite offensive and very unbecoming a President and CEO of our local Chamber.  I would have thought by now that my opponents would understand that the Watchdogs are not going to be intimidated, brow beaten or threatened by anyone in our community.  Believe me when I say that the Watchdogs are very well aware that standing up for one’s principles often brings ridicule, but Ms. Hodge, the Watchdogs aren’t in this for the popularity.  We do this because we feel that it is the right thing to do. 

Let me also add that threatening local Katy taxpayers may not be the best possible plan of action for the Chamber or your PAC.  We hope you understand that there is very much a tax revolt that is growing in this state.  Conservative taxpayers are angry.  Grassroots watchdog groups are springing up all over the state and the nation.  Our group helped the Cy-Fair Citizens get started.  Individuals in Friendswood, Columbus and Brazoria have contacted the Katy Watchdogs  asking how they can get watchdog groups started in their school districts.  I’ve spoken to people in Florida, California, Nevada and Missouri who have all asked for our help in organizing groups in their states.  The internet has become a powerful tool for this grassroots movement.  The Katy Watchdogs are very proud of the fact that we have become a “pox” on local government.

You will find attached a recent commentary by Ms. Mary McGarr, a fellow Watchdog and friend.  Her research concerning what the school district is paying for land is quite interesting.  It also helped me finally understand why local developers aren’t donating property for schools.  As a businessman myself, I understand that if you can get someone to pay top dollar plus for something, then why would one ever consider donating something free of charge.  I found your comment about our local developers understanding “what’s at stake” to be quite amusing.  Ms. Hodge, as the President and CEO of a local Chamber of Commerce, do you really believe that our local developers are doing all this for the school district and the children? 

Come on Ms. Hodge, I’m sure you understand that capitalism is what runs our nation.  And let’s be clear, as someone who owns an LLC and is a partner/investor/employee of another, I am a huge proponent of capitalism, but don’t believe for a second that these developers are only interested in the Katy area because of their community spirit.  They are here to make money just like every other business in our community, and if they think that it’s in their best interest to fund a PAC to support a bond initiative that is going to line their pockets then they will certainly pull out their checkbooks.  My hat’s off to Woodcreek Reserve for their $10,000 donation pledge to K.I.D.S.  Why?  Because for a $10,000 donation pledge they are getting a multi-million dollar elementary school built in their development.  I have a great deal of respect for the person that cut that deal!  And the $60,000+ that has been donated to Katy Partners for Progress is a drop in the bucket compared to the cash the district will pay back to them for school property acquisitions.  Don’t get me wrong Ms. Hodge, there’s nothing sinister about any of this, let’s just be real in our discussion about the motives of our local developers. 

Now let me clear up a misconception about the four cent issue.  Ms. Hodge, Katy ISD got the matching funds from the State of Texas; which, by the way, are our tax dollars.  In order to get the matching funds from the state they simply moved four cents from I&S to M&O (more district smoke and mirrors).  You are right, they did not add four cents to the tax rate; however, you should also know that the budget that the district passed in September does not take into account any additional debt.  If the bond initiative passes in November we can assure you that the district will have to raise taxes in order to fund the new multi-million dollar debt.  They may not have to do it right away but they will do it.  In fact, while the district may be saying publicly that this bond won’t raise taxes, the wording on the ballot specifically says that approval of the proposal will enable the district to pay for it by raising taxes.  And no, I don’t believe that HB 1 is going to solve the school finance matter.  HB 1 is bad law.  For those of us that own small businesses any property tax cut we get on our homes will be eaten up by the new business tax.  In fact, for some businesses this could mean they end up paying more taxes than they ever had.  Unless the appraisal cap is significantly lowered even this tiny relief at the home level will be short term at best.  [Note from Mary McGarr--the school district DID take the opportunity to raise the taxes by the 4 cents allowed for two years in a row.]

I appreciate the fact that you have no problem with us publicizing your PAC.  You can bet we will.  The people in our area need to know about all the players in this election.  I’m just confused as to why the PAC has been such a secret up until now?  Ms. Hodge, I think when the taxpayers understand everything that’s going on they will come to the same conclusion that we have, and that is this bond is shaping up as the developers' bond.  We don’t believe it’s about what’s best for the community or even what’s best for education anymore.  That’s why we exist.  To try and take back our schools from those that we believe are leading it down the wrong path.  You’re right.  Your organization has been around longer than ours, but that’s ok.  It just took Kevin and I longer to realize what was happening in the public education arena.  Once we figured it out we came to the battle just as fast as we could.

I do apologize for the length of this e-mail; however, I wanted to make sure that I addressed all the major issues raised in your correspondence.  I did leave out our views on the bond committee selection process simply because this could be a discussion unto itself.  Just suffice it to say that the Watchdogs believe that the entire process needs to be completely revamped.  We see far too much exclusion and conflicts of interest in the current selection process. 

Let me also say that the Watchdogs accept your challenge for a public debate.  A.D.’s suggestion that the public debate be sponsored by the local press and that it be held in the Merrell Center is a wonderful idea.  Ms. Hodge, the Watchdogs aren’t afraid of the Chamber, K.I.D.S., your PAC, the developers, the bond committee, the School Board, the Superintendent or anyone else for that matter.  In fact, if you want all those parties on your side of the table at such a debate that is absolutely fine with us.  We’ll be happy to accept such a challenge. 

Ms. Hodge, we know our place.  We are very well aware of the fact that we will be outspent and outgunned during this election.  We understand that we are a huge underdog.  We understand that our PAC’s donors don’t have the deep pockets that our opponents have.  And all of that is just fine with us.  We are proud to be part of the first ever grassroots taxpayer advocacy group in Katy.  We are very proud that in less than a year our group was instrumental in turning out the single largest voter turnout in KISD history, that we were instrumental in defeating a multi-million dollar bond initiative and that we helped get a fellow Watchdog elected to our School Board. 

So don’t count us out just yet. 

Sincerely, 

Christopher E. Cottrell

Co-Founder

Katy Citizen Watchdogs