San Angelo resident alleges nonprofits were misled about 'tiers' funding after church application rejected

Evelyn Smith, a San Angelo resident, told the City Council during public comment that nonprofit organizations were encouraged to apply for the city’s "tiers" funding in 2022 but were later disqualified, and she cited a denied application by Gethsemane Church.

Smith said the council’s May 6 action effectively shut nonprofits out of future tiers funding three years after they applied and that on Jan. 7 the council had initially voted to approve Gethsemane Church’s application but that the church’s application continued to be rejected. "If the tax exempt status was always going to disqualify them, it was misleading, wasteful, and, wasted taxpayers' money," Smith said during her remarks.

In her comments Smith said the church submitted its application on Aug. 22, 2022, that the tiers board reviewed and approved the submission over the following three years, and that the city council ultimately rejected it. She also referenced a jurisdictional reference in the meeting transcript as "Texas comptroller regulation," saying it does not disqualify nonprofits from tiers funding.

Smith named two elected officials in her remarks, saying former mayoral and current-council positions had objected on the basis that nonprofits do not pay taxes; those claims are presented here as statements made by Smith. She also thanked individuals she said worked on the application, including John Mark Hogg and Van Noy.

The council did not take formal action on the allegation during the meeting and no city response to the claims was recorded during public comment. The council proceeded to its consent and regular agenda items after the public comment period ended.

Why it matters: Smith characterized the sequence as a costly administrative failure and asked for an apology to the applicant. The transcript does not show the council evaluating or resolving the claim at this meeting.