Hicks Challenges Investment Oversight As Crockett Council Debates Data Center Rules

By Greg Ritchie

Messenger Reporter

CROCKETT — Questions about who oversees the city’s investments and how Crockett should respond to potential data centers led to the most pointed discussions during Tuesday’s Crockett City Council meeting.

Councilmember NaTrenia Hicks challenged a proposed investment policy that designates City Administrator John Angerstein and Finance Director/City Treasurer Laure Morgan as the city’s investment officers. Later, council members debated whether data centers should be prohibited outright or studied individually before the city adopts additional regulations.

Morgan presented the revised investment policy, which replaces a policy adopted in 2000. She said the update is intended to bring the city into compliance with state laws governing public funds and collateralized deposits.

The policy establishes investment strategies, collateral requirements, training and ethics provisions, internal controls and quarterly reporting. It also requires significant changes to the city’s investment portfolio or investment providers to return to the council for approval.

Hicks questioned whether the arrangement provided enough independent oversight.

“Wouldn’t that be a conflict of interest with you being the city manager and being an investment officer as well?” Hicks asked. “I mean, who oversees you? You oversee you.”

Angerstein responded that the council would provide oversight through quarterly reports, annual audits and compliance reviews. Morgan said the quarterly reports would show beginning market value, interest earned, the rate of return and ending value for the city’s investments.

Hicks continued to ask whether council members would have access to the underlying financial information.

“Are y’all not allowing us to get the statements?” she asked.

Morgan explained that the reports required by the new policy would provide a quarterly snapshot of the city’s investments, while the city’s external auditors would continue reviewing the investments and collateral requirements annually.

Hicks ultimately opposed the resolution, connecting her concerns to the city’s form of government and the authority given to the city administrator.

“I cannot in good conscience go in and vote for this with a sound mind and go along with anything other than the charter that was provided by a vote of 658 people to 438 voters in April of 1964,” Hicks said.

The council approved the revised investment policy.

The council’s discussion of data centers also produced sharply different opinions.

Angerstein explained that Crockett’s current zoning ordinance does not specifically identify data centers as a permitted land use.

“Currently data centers are not permitted in the city of Crockett,” Angerstein said. “If there was to be a data center, we would have to go through a zoning amendment.”

He said a future proposal would also require a specific-use permit and could require the developer to provide information about electricity and water demand, noise, lighting, traffic and infrastructure.

Dennis Ivey questioned whether the city should evaluate data centers individually rather than treating them all the same.

“Well, then couldn’t we just look at each one specifically?” Ivey asked.

Ivey later cautioned against an automatic ban, saying the city could lose potential resources or infrastructure investments if it rejected every type of data center without studying the differences among them.

“If we just said an absolute no to everything…I think we need to look at them,” Ivey said.

Hicks said her own research had made her skeptical of data centers and their effect on communities.

“Well, doing my research, yes, they are investing, but it’s also causing havoc on the environment for the citizens, taxpayers,” Hicks said.

Mayor Dr. Ianthia Fisher said she had heard a different perspective from someone who works with a data center.

“I’ve heard differently,” Fisher said. “As a matter of fact, I was speaking to someone who works with a data center, and she was saying it’s not what you think it is in some parts.”

Fisher said the size and design of a facility could make a significant difference in its effect on a community. She also mentioned that some facilities use closed-loop water systems that recirculate water rather than continually drawing from a municipal system.

Councilmember Hudson Duren questioned Fisher about the potential economic benefits and whether communities with data centers had experienced changes in property-tax revenue. Fisher said she did not have specific financial information about the facility discussed in her conversation.

Duren said the city needed more information before making a final decision.

“It’s not that I’m for or against them, but I want some more information,” Duren said. “Information is key. I’d rather hear it from somebody who’s absolutely put some time into it.”

Duren made a motion requesting that the Planning and Zoning Commission review data center definitions, zoning classifications, permit requirements and development and operational standards for possible inclusion in the city’s zoning ordinance. Councilmember Christopher Price seconded the motion, which passed.

The action did not approve any data center or change the city’s current zoning. It directs the Planning and Zoning Commission to study the issue and develop recommendations for possible future council consideration.

Earlier in the meeting, Hicks also questioned Angerstein about the city’s planned waterline work on East Houston Avenue and East Goliad Avenue, asking whether council members would be able to review the engineering plans and whether the city had identified lead pipes throughout the system.

Angerstein said the waterline project is expected to go out for bids in October and take approximately 10 months to complete. He said the city completed a lead-pipe inventory in 2025 and is seeking state assistance to replace lead service lines when funding becomes available.

The council also approved revisions to the residential fence ordinance and adopted standard operating procedures for the Crockett Fire Marshal. Discussion about possible turf at the Merchant League fields will continue through the Parks and Recreation Advisory Board and league representatives.

Greg Ritchie can be reached at [email protected]