The Rise and Fall of the “Freest Little City in Texas” How a libertarian experiment in city government fell apart over taxes, debt and some very angry people.

From The Texas Observer

The abandoned cop cars sat in Trina Reyes’ yard for eight months. She wanted them gone, but there were no police to come get them. Last September, the police department in Von Ormy — a town of 1,300 people just southwest of San Antonio — lost its accreditation after it failed to meet basic standards. Reyes was mayor at the time, so the three patrol cars, as well as the squad’s police radios and its computers, ended up at her home. It was just another low point in a two-year saga that she now counts as one of the most difficult experiences of her life.

“This is one of the worst things I’ve ever done,” she said of being mayor. “I’ve never dealt with such angry people. I’m washing my hands of everything. … I’m going to travel. I’m going as far away from Von Ormy as I can.”

For the last few years, Von Ormy has been in near-constant turmoil over basic issues of governance: what form of municipal government to adopt, whether to tax its residents, and how to pay for services such as sewer, police, firefighters and animal control. Along the way, three City Council members were arrested for allegedly violating the Open Meetings Act, and the volunteer fire department collapsed for lack of funds. Nearly everyone in town has an opinion on who’s to blame. But it’s probably safe to say that the vision of the city’s founder, a libertarian lawyer whose family traces its roots in Von Ormy back six generations, has curdled into something that is part comedy, part tragedy.

In 2006, fearing annexation by rapidly encroaching San Antonio, some in Von Ormy proposed incorporating as a town. But in government-averse rural Texas, incorporation can be a hard sell. Unincorporated areas are governed mainly by counties, which have few rules about what you can do on private property and tend to only lightly tax. There’s no going back from what municipal government brings: taxes, ordinances, elections and tedious city council meetings. Still, the fear of being absorbed by San Antonio — with its big-city taxes and regulations — was too much for most Von Ormians.

Enter Art Martinez de Vara. At the time, Martinez de Vara was an ambitious third-year law student at St. Mary’s University in San Antonio, a local boy with a penchant for Texas history and right-wing politics.

Martinez de Vara suggested a compromise of sorts. Von Ormy could become a “liberty city” — a stripped-down, low-tax, low-government version of municipal government that’s currently en vogue among the tea party in Texas.

Initially, the city would impose property and sales taxes, but the property tax would ratchet down to zero over time. The business-friendly environment would draw new economic activity to Von Ormy, and eventually the town would cruise along on sales taxes alone.

There would be no charge for building permits, which Martinez de Vara said would be hand-delivered by city staff. The nanny state would be kept at bay, too. Want to shoot off fireworks? Blast away. Want to smoke in a bar? Light up. Teens wandering around at night? No curfew, no problem.

Martinez de Vara and his mother, Sally Martinez, along with other prominent residents, started the Commission to Incorporate Von Ormy. He gave Von Ormy a motto: “The Freest Little City in Texas.”

Folks in Von Ormy liked what they heard and in May 2008 voted to incorporate. Martinez de Vara was elected mayor that November.

In a 2015 presentation he gave at the Texas Public Policy Foundation, a conservative think tank, Martinez de Vara said that a group of people with no political experience took it upon themselves to do everything a large city like San Antonio does but at a lower cost. He touted Von Ormy’s ability to provide animal control services, a 20-officer police department — a mix of paid officers and volunteers — and an online city hall.

“We were blessed with this unique opportunity to experiment with democracy,” he said.

Read more here: https://www.texasobserver.org/the-rise-and-fall-of-the-freest-little-city-in-texas/

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