Real Ron Sutton Timeline

LET'S LOOK AT THE REAL TIME LINE FOR THE ACTIONS TAKEN BY MR. RON SUTTON AS SECRETARY OF THE HOOD CENTRAL APPRAISAL DISTRICT JAN 2022 THROUGH DEC 2023.

 

The Agenda for the very first meeting 1/7/2022 had Items 10. Discuss and take possible action regarding future construction of a New Hood Central Appraisal District Building. and Item 11. Discuss and take possible action to dissolve HCAD Home Office Corporation. 

 

To an individual such as Mr. Ron Sutton, who has been operating a successful family business with expenses of $1,000,000 or less per year, these two agenda items might seem innocuous and not cause concern.  But to anyone who had been following the HCAD for the past few years these items should have raised two very big red flags.

Item 10. for proposing a multi-million dollar project that required 3/4 of the entities approval. and,  

Item 11. for the discussion of a separate Corporation within the purview of the HCAD. 

With this background agenda, what did happen in the very first meeting other than swearing in the new Board Members, and each of them attesting that they would follow the Texas Constitution, Statutes and Law?

What happened on the evening of the first meeting held on 1/27/2022 (the first meeting scheduled for 1/21/2022 was Rescheduled - the agenda items 10. and 11. remained the same). was a presentation by Mr. Fred Cauble of 2 CHA Architecture who presented a drawing for approval of the final footprint of the building and a request MOVE FORWARD WITH MEETINGS TO SEEK APPROVAL OF THE ENTITIES.  It was well known that the taxing entities had to approve any new building (The Board in 2019 had proceeded with the actual purchase of land for a new building and had to rescind the purchase due to no approval from the taxing entities.  This recission cost the Tax Paying Public almost $5,000.

The new Board approved this action 5 yea and 0 no.  

 

The very next agenda on 3/4/2022 had the following Items to cover:

# 6. Discuss and take possible action regarding future construction of a New Hood Central Appraisal District Building. and,

#7.  Discuss and take possible action to dissolve HCAD Home Office corporation.  

In the meeting on 3/10/2022 - No action was taken on either of these items HOWEVER, the Chief Appraisers report, did have an item labeled: * Progress on new HCAD building - surveys being conducted meetings with entities are being arranged.  Again, the Board knew that Taxing entity approval was required.      

And, on 3/22/2022 in an email exchange between Eddie Roe Chief Appraiser and, Jeremey Glenn, Superintendent of GISD

Mr. Roe asks Mr. Glenn,

"Do you think you could assist in getting the "Big 3" together for a group meeting for Fred to present the new building and site?"  

"We got a little pushback from some of the Board members at the last meeting over the DPS part as Mr. Jackson can attest. We will keep moving forward, I believe, and let them know this likely won't happen without this prospect and I believe they will come around. Some of their concerns were a little silly in my opinion i.e. Jack Wilson endorsing someone other than Abbott for Governor."

Fred is ready to present and has asked me to let him know when we can make this happen. Let me know if you can help make it happen. Thank you!

This is when it becomes evident that at least two of the taxing entities are involved in helping with the construction of a New HCAD Office Building.  Obviously GISD knows about the transactions taking place as does at least one Commissioner, Commissioner Wilson, of Hood County.  The question is: when will the other nine (9) entities be advised of these approved actions by the HCAD?

Mr. Glenn responds:

There is a joint City, School, County meeting on March 30th at 12PM in City Hall. The school has been allotted time to discuss the bond. You should email Michal Ross, assistant city manager, to see if you can be placed on the agenda.

His email is: mross@granbury.org

I am happy to give up some of my time so you can present. JG

 

Finally, there is a meeting to discuss the building of a new HCAD office building with the "Big 3" (School, County, City) but not with the remaining eight (8) tax paying entities.  It would be another year before this meeting actually occurred.  

 

And, it appears that the Hood County News reporter Kathy Cruz deserves information before the other eight (8) taxing entities.  Shortly after the presentation on 3/30/2022 and email was sent from Eddie Roe Chief Appraiser to Kathy Cruz Reporter for the Hood County News.

From Eddie Roe to Kathy Cruz RE: Renderings of Planned new HCAD Building

Hey, Kathy! It was nice meeting you in person too! I hope I didn't sound like a bumbling fool up there ha-ha! Public speaking is my nightmare©.

I've attached my talking points along with the renderings. We believe this will be great for the County. Commissioner Jack Wilson and GISD School Board Director Mark Jackson along with Dr. Glenn, GISD Superintendent, have been paramount in connections and discussions with Texas DPS to make that part happen.

I hope this ends up being a positive story© Have a great week!

Kind Regards,

 

What should be noted in this exchange is that GISD School Board Direct Mark Jackson is instrumental in moving this project along.  The fact that Mr. Jackson is also on the Board of Directors of the Hood Central Appraisal District should not go unnoticed at this time.  

 

And on 3/31/2022 in another email exchange between Chief Appraiser and Kathy Cruz Reporter at Hood County News there is a discussion of how this new building will be financed.  It will be financed through Government Capital Corporation.  And who will Government Capital Corporation be loaning the money to complete this financing deal.  The loan will be to HCAD Home Office Corporation, a "Shell Corporation" set up by prior HCAD Board Members who have appointed themselves as Directors of the "Shell Corporation" and through their By-Laws have approved themselves as having the authority enter into these financial agreements WITHOUT ANY OVERSIGHT OR REVIEW BY THE TAXING ENTITES AND WITH NO COMMUNICATION TO THE TAXING ENTITIES REQUIRED.   

 

The 3/31/2022 email reads:  

From: Eddie Roe to Kathy Cruz RE: Renderings of planned new HCAD Building

We will be financing it with Government Capital and payments will be built in to our operating budget which is allocated to the taxing entities. Each taxing unit pays a portion of our operating budget proportionate to the amount of tax they levy divided by the total levy of all units. For example, GISD has 62% of the total levy so they pay 62% of our budget. It will just be built in with the rest of our budget. At approximately $300,000 a year for our note, it shouldn't even make a tick on any of their tax rates.

Granbury ISO levies close to $7Smill and their portion would be about $186k. Very small comparatively. At this time, we are looking at a 20-year note.

Also, DPS rent will alleviate a lot of this and almost pay for the building itself. When I build our budget, I will add "income from outside sources" and a line item for the DPS rent where the taxing units may not even see a difference. Of course, with a new building and more staff and an appropriate system network and phone system, our operating budget will increase just due to that. But the new building will be much more energy efficient and we won't have to budget so much for maintenance so that will be a plus.

I don't anticipate the cost of the building increasing the public's taxes. That is something we are trying very hard to keep from happening.

I hope you are having a wonderful day! Let me know if you have any other questions and I will be happy to answer or at least find the answer.  

Of note is the Chief Appraisers Financial Acumen that believes that when taking on $13,000,000 plus in debt plus interest that there is no increase in taxes for the public. 

And, it isn't until the deal goes a little further that it is noted that the Legislature can't approve the DPS session until at least 2027 and that they must have a framed out building before approvals can be obtained, possible in mid 2029.  Who is paying the bill in the interim?  

As an aside: Note the statement from Mr. Roe; When I build our budget, I will add "income from outside sources".  In the most recent 2025 MAPs Audit completed by the Texas Comptroller's Office, the HOOD Central Appraisal District FAILED the Mandatory Governance Section. The failure was due to their stating in the Public Notice announcing the Budget Review that "the HCAD is funded MOSTLY by the Taxing Entities”, The Tax Code itself says that the Budget notice MUST say; ...HCAD is funded SOLELY by the taxing entities”. Therefore, the FAIL grade for the 2025 HCAD MAPs.   

 

The reason this is important is that it shows that there has been and there is an intentional and continuing effort on the part of the Chief Appraiser and the HCAD Board of Directors to obscure the misappropriation of taxpayer funds.  Over the past ten (10) years these efforts have created more than $3,300,000 dollars in extra expense, and only through the exposure of this "Excess Funds" scheme was an additional $6,250,000 expense to the taxpayer avoided.

 

Mr. Sutton may claim no knowledge of this misappropriation of funds, but that is not what his voting actions show.  Actions are more improtant than words, and Mr. Sutton's Actions indicate that he has no regard for the tax paying public.

 

On 4/8/2022 things become "Real" for the HCAD and for the tax paying citizenry when 2 CHA presented new drawings for the New HCAD Office Building along with an invoice for $75,288 which was paid by Check # 2651 on 4/26/2022.  $75,288 that that was never approved in any budget and was never presented to any of the entities.  Most of all $75,288 that came directly from the taxpayers pocket and for which they received NOTHING!! NOTHING!!

 

On 5/5/2022 Mr. Cauble and Chief Appraiser enter into another email conversation

From: Fred Cauble to Eddie Roe RE: Big Three Meeting for new HCAD Building

Eddie

Hope all is well with you. Just checking in to see how we are doing. Would love to get test holes ordered and start the CDs. If we need to meet with anyone just let me know! We need to move forward so we can save you money!                                                                     Okay.

 

We have now entered into another negotiation without any taxing entity approval; this one is with the GISD and involves a land swap of the HCAD Building for property the GISD owns in the Acton area.  At this point it is hard to figure out, who is driving this project?  Fred Cauble of 2 CHA Architecture, Chief Appraiser Eddie Roe, or School Board member/HCAD Board Member Mark Jackson?

On 5/18/2022 and email from Fred Cauble to Eddie Roe Re: Status of Project?  

Eddie

I just thought I would check in with you. How are we doing? When do you think I can start the replate and present to your members? We really need to get moving. I need to get the test holes and civil work started. What can we do? Cost keeps going up.

I know you are doing all you can but I hate waiting.

Fred

For the remainder of 2022 the Board continued to discuss the New HCAD Building and the schedule it was on, How to finance the building, questions regarding dissolution of the Home Office Corporation (the illegal "shell corporation"), and what a lease with the DPS might look like.

 

In order to keep this process of misappropriating taxpayer monies moving forward additional monies were needed,  so on 7/14/2022, as reported in the minutes, Mr. Rick Frye made the motion to move the 2021 "Fund Balance" (which is a fancy way of saying "accumulated excess funds"  that we want to misappropriate so we, the HCAD Board of Directors, can spend however we want with no Taxing Entity input) of $937,761.  This motion was passed by 5 YES and 0 NO votes.  

 

Beginning in 2023, the New HCAD Building continues to be the major topic of discussion with conversations with the Architect taking the lead role.

From: Eddie Roe To: Jeremy Glenn RE: New Building Site.

 Good Afternoon, Dr. Glenn,

"..... I have a telephone meeting with Gov Cap and if they won't finance our project then I will be going to some of our local banks to inquire about the loan for our project."

"In the meantime, I just had a meeting with our architect and he would like permission to punch two holes in our prospective site so they can start working on infrastructure cost. Is there any chance you or Mrs. Townsend could send me something in writing giving him permission to do these ground tests?"

 

"I will be contacting you soon to go ahead and get on your agenda to present our project for approval. I'm trying to make up for all the lost time that was wasted on this whole financing issue and start moving more aggressively on getting entity approval."

 

Here we are one year later, still trying to get a schedule to gain entity approval --- and spending tax payer dollars with no approval.

The HCAD Board Minutes from 1/19/2023 reveal

The Board discussed the future project of anew Hood Central Appraisal District office.  No action was taken by the board.

The Board discussed dissolving the HCAD Home Office Corporation.  No action was taken.

Chief Appraisers Report.  

* Update on correspondence with Fred Cauble.    

* Dr. Glenn is adding us to the Feb 205h agenda for approval.  

* Mark Jackson is talking to contacts for DPS.  

* Roe is seeking approval to be added to agendas for entity approval for new facilities.    

* Update on correspondence with Government Capital.      

While the Minutes indicate "No Action was taken” It is obvious that a lot of "action" has been taken with Architects, Board Members, Government Capital Corporation and the School Superintendent.  But for the Taxpaying Public "Nothing to See Here"

As the Board of Directors work with Chief Appraiser Eddie Roe the following recommendations are made to Mr. Roe as he prepares for the presentation to the County, School, and City. 

In an Email From: Monty Lewis To: Eddie Roe. RE: HCAD New Facility Brochure    

The questions you/we will get:

1. How's the building going to be paid for?
2. Will this increase my "taxes" through higher future appraisals?
3. Will there be additional buildings or is there room for additional buildings on site?
4. Why now, when the market is in a downturn and material costs are so high?
5. Because of the land swap, will our GISD taxes go up?
6. How long will it take to be built?
7. Will other County Services be relocated out in Acton?
8. Isn't this the same area where GISD was going to build the new High School?

 

Any Board Member who is saying that they knew nothing about a new HCAD Building Proposal is lying.

 

Even after the presentation to the City, County and GISD, which resulted in no approval, but a loud chorus of "NO's" from the Taxing Entities, the HCAD Board and Chief Appraiser pushed forward; with an Email from

From: Eddie Roe To: Pete Smith RE: GISD Board Meeting

Good Morning Pete,

Granbury ISD has a large tract they are willing to trade 6 acres for our existing office and we want to build new facility on it.

 We have presented to Granbury ISO, Hood County, and Granbury City at an inter-local meeting, but we were not put on as an action.

 

Instead of asking the entities for permission to proceed with the Misappropriation of Taxpayer funds the HCAD looked to take legal action to enter into a land swap.   A series of emails shows that the attorneys for the GISD and the HCAD were involved in the conversation, and finally agreed that they couldn't do a land swap without making it public knowledge ..... and they certainly didn't want any transparency.  

 

The emails between Pete Smith HCAD Counsel and Elizabeth Nelson GISD counsel read as follows:

 

On 3/19/2022 From Pete Smith To: Eddie Roe RE: GISD Board Meeting   

I will get back to you with more details. In the meantime the exception for competitive bidding is Section U) A political subdivision may donate, exchange, convey, sell, or lease land, improvements, or any other interest property to an institution of higher education, as that term is defined by Section 61.003, Education Code, to purpose related to higher education.

On 4/10/2022 From Pete Smith To: Eddie Roe RE: GISD Board Meeting  

".....The school attorney and I need to figure a way to permit the land swap without competitive bidding.  The exception I cited her applies to a governmental unit that had eminent domain power which HCAD does not.

Are you going to proceed with creating a public facility corporation as government capital originally proposed or are they willing to loan the funds without that process.  Do you want o proceed wit the land swap for taxing unit approval without the construction of the building portion of the project?"

 Pete Smith    Partner.      N S

And emails between Chief Appraiser Eddie Roe and Mark Jackson continue to evaluate ways to spend taxpayer money with no taxing entity permission.

Email on 4/11/2023. From: Eddie Roe to Mark Jackson re: GISD Board Meeting

 Pete and GISD's attorney have been working together on the land part.  They've copied me on a few interactions and it seems like.......interpretations

They are both looking at angles do this land deal without competitive bidding.   I had no idea the land would be a difficult process.......

I expect to hear back from him today or tomorrow.   

And by 5/13/2023 the Board decides to do what should have been done in January of 2022 and $300,000 in Misappropriated Funds earlier.  The board passed a resolution, which Mr. Sutton signed off on as Secretary of the HCAD.  While the Board Directed Mr. Roe to deliver the Resolution to the Taxing Entities, it is the Statutory Duty and the HCAD Policy and Procedures that the HCAD Secretary Mr. Sutton Assure Delivery to the taxing entities.  Mr. Roe didn't deliver the Resolution and Mr. Sutton didn't follow up.

 

After this Resolution, on 5/24/2023, Chief Appraiser Roe's employment was terminated by the HCAD Board of Directors.

 

After the termination of Mr. Roe an interim Chief Appraiser, Mr. Petrie, took over.  Mr. Petrie attempted to reconcile the finances of the HCAD which resulted in a refund to the Entities of $1,908,000.  Most of these dollars had been placed on the books by Mr. Sutton and the other 2022 and 2023 Board Directors being Mr. Mark Jackson, Mr. Rick Frye, Mr. Monty Lewis, Mr. Eddie Rodriguiz, Mr. Ron Sutton

 

Interestingly, even after terminating the Chief Appraiser for incompetence and being notified of an impending investigation into the finances of the HCAD,  On 6/07/2023 the HCAD approved retaining excess funds of $547,928 on a motion made by Mr. Rick Frye and approved by a "yes" vote of 4-0.  For Mr. Frye this had to be an act of major satisfaction, after all on his motion and with full approval of all HCAD Board Members, he alone had misappropriated $1,485,689 or almost 1/2 of the $3,300,000 that was misappropriated since 2016.

 

As Secretary, Mr. Sutton, approved all of these misappropriated dollars.

 

And, the HCAD Board then proceeded to hire a new Chief Appraiser, Mr. Jeff Law.  Mr. Law was the immediate past Appraiser of Tarrant County which had just notified him of "No Confidence" Votes from enough of the Taxing Entities that indicated his services were to be terminated.

But the spending continued on 10/10/2023 with an invoice for the new HCAD Building being presented by 2 CHA Architects and Mr. Fred Cauble for $88,501.00   This invoice was paid on 12/21/2023 via check # 3541.   Again, the Misappropriation of these dollars yielded NOTHING! NOTHING! for the taxpayers.  And, the Architect Firm has now been paid $333,200.00 for NOTHING!!!

 

So in summary, the ACTIONS you find Mr. Sutton taking during his two years as an appointee to the Hood Central Appraisal Board are:

 

1. Mr. Sutton did not perform his duties as Secretary specifically by his non-notification of the Taxing Entities for a resolution that proposed to spend $6,250,000 on an unapproved new HCAD OFFICE BUILDING, which was to be funded by a “SHELL CORPROATION" of which, by the Shell Corporation By-laws, he was also a Director.

2 Mr. Sutton's approval of various invoices dedicated to the purpose of building a New HCAD Office building was a misappropriation of taxpayer funds.  

3. Mr. Sutton's approval of the transfer of "excess revenues" and "Fund Balance Excesses" is a direct violation of the Texas Tax Code and literally removes monies from the taxpayer’s pocket and the powers vested to the taxing entities for management of taxpayer budgeted dollars.

These financial responsibilities, not fulfilled by Mr. Sutton, are indicative of the lack of experience that he has and experience that is required for the successful management of the millions of budget dollars (15 times that of the HCAD Budget) for which he would be responsible as County Judge.

4. Mr. Sutton's lack of judgment by not making a background check on, which is not required in a family business, and the subsequent hiring of Mr. Law, who has endeavored to the continue with the scheme of a. having a bloated budget from which excess funds can be derived, and b. transferring excess funds to various non-budgeted accounts, is an action that disqualifies him from the position of County Judge.