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<br />e <br /> <br />e <br /> <br />Background <br /> <br />1) Lomax annexation <br /> <br />a) The agreement with City of Deer Park <br /> <br />The tax base for the city of Lomax would only support a bond issue for <br />one (1) million dollars. This was only sufficient capital to install the water <br />and sewer lines, not the water well and sewer treatment plant. <br /> <br />The entices of Lomax and Deer Park entered into an agreement to use the <br />Federal grant monies granted to Lomax to lay water and sewer trunk lines <br />from Underwood road to Luella Street in Deer Park. In turn, Deer Park <br />would supply water and treatment services to the City of Lomax. <br /> <br />After one year of service, Deer Park gave Lomax a ninety day notice of <br />termination of services. Lomax did not have the tax base to support an <br />additional bond issue. <br /> <br />b) Failed understanding <br /> <br />Brought on by a failed understanding between Cities of Deer Park and <br />Lom~ ;rhe City of LaPorte annexed Lomax to provide water and sewer <br />services. <br /> <br />This rescued Lomax from a financial quagmire. Lomax did not have <br />the tax base to be self- sufficient as a City. Even after 25 years of growth <br />the tax base still cannot support the level of services provided by the City <br />of LaPorte. The residents of Lomax are being subsidized to this day. <br />