Dear Senator Campbell

To the Honorable Senator Donna Campbell: District 25 P.O. Box 12068 Capitol Station Austin, TX 78711 The residents of Lake Placid, Seguin Texas do hereby request a one-time allocation of $12,000,000 from the budget surplus to assist in the funding of the Lake Placid Hydroelectric Dam remediation. After the failure of several dams on the Guadalupe River, specifically Lake Wood and Lake Dunlap it became apparent that several of the 92 plus year old dams along the Guadalupe River were in imminent danger of failure. The initial reaction from Guadalupe Blanco River Authority (GBRA) was to drawdown or dewater the lakes, which would have had a catastrophic negative financial impact to those taxpayers living on or near the Guadalupe River subsequently affecting the entire City of Seguin community by a major reduction in the collection of school taxes. Seguin, as I’m sure you are aware, consists of a low- to moderate-income population; 20.7% of the population is below the poverty level. Lake Placid, through its property owners group Citizens United For Lake Placid (CULP) was able to obtain a temporary injunction, which allowed CULP to pursue a workable solution that would ensure that Lake Placid remains a lake. The solution was to form the Lake Placid Water Control Improvement District (LPWCID) and work with GBRA on plans to repair or replace the dams on both Lake Placid and Lake McQueeney. Through planning and engineering it was determined that the best course of action was to re construct the dam and replace the spill gate at an estimated cost of $32,000,000 plus. In November 2020 the voters of the LPWCID voted and approved $40,000,000 for the construction of the new dam and spill gate replacement. In addition, the property owners are also responsible for paying the operation and maintenance expenses of the dam, an additional $7-9 million over 30 years. Plans were submitted for the construction however the permit was delayed for over a year with the final permitting obtained In December 2022. Construction bids for the dam replacement were solicited; three bids were received ranging in cost of $41,005,000 to $50,329,000, substantially above the original estimate. The lake community is now in the process of having to vote for an additional $12,000,000 to cover the increase in cost plus related contingencies, which puts a tremendous financial burden on the taxpayers of the LPWCID. Lake Placid is more than a recreational lake and saddling only the taxpayers of the LPWCID with such a financial burden (approximately 80 million over the life on the Bond) is unconscionable for the following: Lake Placid has a large industrial user of its water flow that being CMC Seguin. CMC is a major employer in the Seguin area and Guadalupe County. The operations of CMC rely on the water flow of Lake Placid and the Guadalupe River. Lake Placid is the home of SS Memorial Foundation, a mental health and wellness property that hosts thousands of active duty personnel and veterans. The Foundation offers an array of services for active duty servicemen and veterans including Christian and combat PTSD counseling, Guard and Reserve employer support and outdoor fishing events. Lake Placid is an integral part of the Foundations ability to provide the much-needed support to our deserving active duty and veteran heroes. Lake Placid is also a general use public lake available to the residents of Guadalupe and surrounding counties via the TXDOT public ramp located under IH 10 in Seguin. To place the financial burden of the reconstruction of the Lake Placid dam on the shoulders of the approximately 420 property owners ($188,000 average per property owner) is onerous to say the least. This additional tax burden is rapidly becoming prohibitive and if funding is not obtained would be tragic to the activities listed above. Further, the decline in property values from the loss of Lake Placid would place additional financial strain on Guadalupe County and the affected school districts in the area. In closing, we believe there are substantial social and economic benefits to helping fund the Lake Placid dam and spill gates and reiterate our request for a one-time allocation of the budget surplus. Sincerely