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HomeMy WebLinkAboutMinutes - City Council - Special - 8/5/2003CITY OF LUBBOCK SPECIAL CITY COUNCIL MEETING AUGUST 5, 2003 9:30 A. M. The City Council of the City of Lubbock, Texas met in special session on the 5th day of August, 2003, in the Committee Room 103, first floor, City Hall, 1625 13th Street, Lubbock, Texas at 9:30 A. M. 9:42 A. M. CITY COUNCIL CONVENED Committee Room 103, 1625 13th Street, Lubbock, Texas Present: Mayor Marc McDougal, Mayor Pro Tem Victor Hernandez, Council Member Gary O. Boren, Council Member Jim Gilbreath, Council Member Tom Martin, Council Member Frank W. Morrison, Council Member T.J. Patterson Absent: No one. ( 1.) Discussion of an ordinance, prepared by the Legal Department, to call an election for property tax reduction (1/4-cent) and economic development (1/8-cent) for November 4, 2003, pursuant to V.T.C.A. Labor Code Art. 5190.6, Sec. 4A, and Chapter 321 of the Tax Code. Anita Burgess, City Attorney. City Attorney Anita Burgess provided a Power Point presentation (see attached). Ms. Burgess introduced Gary Lawrence, CEO, Market Lubbock, Inc. and Eddie McBride, President, Lubbock Chamber of Commerce. Mayor McDougal asked staff to provide a summary of what the average person spends on taxable items, excluding food and medicine. Mayor McDougal, in an effort to simplify this proposition, stated the following: "What we are talking about or what we will consider in an ordinance is a two -eighths cent increase in the sales tax to go towards property tax reduction, which will be equal to an 8.28 cent tax rate decrease for the citizens of Lubbock. One -eighth to go towards job creation, which is equal to $3.28 million annually. It changes the way Market Lubbock operates and would then put them operating under more stringent guidelines. The property tax reduction is equal to over 15% reduction of the City tax. Does that pretty much simplify what we just talked about?" Ms. Burgess stated that he hit it right on the head. Mayor Pro Tem Hernandez stated that he had the following two concerns: 1. The loss control by Council over expenditure of funds for economic development. Not all funds; just the CIF funds. This is not a major concern because of the track record that Market Lubbock, Inc. has and also because of the change of leadership that has recently occurred and quite frankly, because of the law that is in place. 2. An increase in sales taxes impacts poor people disproportionately to people of means. However, during the budget talks, a group representing poor people stated that poor people are willing to pay their fair share, if in fact they receive benefit from it as well. Mayor Pro Tem Hernandez then complimented Mayor McDougal because the CIF fund, although it has been a mechanism to fund economic development in the past, has not been a very clean way of doing it. He further stated that he was in total agreement of doing away with that and finding an alternative way of funding this, which this really does. Mayor McDougal stated that the board appointments to Market Lubbock, Inc. are made by the Council and serve at the will of the Council. Special City Council Meeting August 5, 2003 Page 106 Council Member Martin made a presentation for the voters who would be watching. He stated the bottom line was 10.71. If this proposition passes, this amount will be off the property tax rate by October 1, 2004. This is the first time in the history of this City this has happened. 11:19 A. M. WORK SESSION RECESSED 11:20 A. M. CITY COUNCIL REGULAR MEETING CONVENED Committee Room 103 Present: Mayor Marc McDougal, Mayor Pro Tern Victor Hernandez, Council Member Gary 0. Boren, Council Member Jim Gilbreath, Council Member Tom Martin, Council Member Frank W. Morrison, Council Member T. J. Patterson; Tommy Gonzales, Interim City Manager; Anita Burgess, City Attorney; and Rebecca Garza, City Secretary Absent: No one. Mayor McDougal called the meeting to order at 11:20 A. M. Invocation by Council Member T. J. Patterson. Mayor McDougal asked that the tape of this meeting be replayed on Channel 2 often through November 3, 2003. (2.) Ordinance No. 2003-00086 calling an election for property tax reduction (1/4-cent) and economic development (1/8-cent) for November 4, 2003. ORDINANCE NO.2003-00086 AN ORDINANCE ORDERING A SPECIAL ELECTION TO BE HELD ON NOVEMBER 4, 2003, FOR THE PURPOSE OF VOTING FOR OR AGAINST THE ADOPTION OF A SALES AND USE TAX WITHIN THE CITY OF LUBBOCK FOR THE PROMOTION AND DEVELOPMENT OF NEW AND EXPANDED BUSINESS ENTERPRISES AT THE RATE OF ONE -EIGHTH (1/8) OF ONE PERCENT AND THE ADOPTION OF AN ADDITIONAL SALES AND USE TAX WITHIN THE CITY OF LUBBOCK AT THE RATE OF ONE-FOURTH (1/4) OF ONE PERCENT TO BE USED TO REDUCE THE PROPERTY TAX RATE PURSUANT TO SECTION 4A(p) OF ARTICLE 5190.6 OF VERNON'S ANNOTATED CIVIL STATUTES; MAKING PROVISION FOR THE CONDUCT OF SUCH ELECTION ACCORDING TO APPLICABLE PROVISIONS OF LAW; PROVIDING FOR EXECUTION OF AN APPROPRIATE ELECTION ORDER HEREAFTER; GIVING NOTICE OF SUCH ELECTION; AND OTHER PROVISIONS INCIDENT TO AND RELATED TO THE PURPOSE HEREOF. Following final passage of this ordinance, an election order will be prepared and the election will be submitted to the U.S. Department of Justice for pre -clearance as required by Federal law for special elections. FISCAL IMPACT: If voters pass the 1/8-cent sales tax for economic development, the sales tax revenues will replace the money collected in the Community Improvement Fund (CIF) for economic development. The General Fund, Water, Sewer and Solid Waste all contribute to the CIF. The average annual transfer has been $2.3 million, though next year's transfer is anticipated to be $1.4 million. With Sales Tax funding economic development, the General Fund and these Enterprise Funds will be able to use the money they normally transfer. Staff recommended approval of this ordinance. Mayor McDougal then read the proposition, which will be placed on the ballot, as follows: "The promotion and development of new and expanded business enterprises at the rate of one -eighth (1/8) of one percent and the adoption of an additional sales and use tax within the City at the rate of one-fourth (1/4) of one percent to be used to reduce the property tax rate." 106 Special City Council Meeting August 5, 2003 Page 107 Motion was made by Council Member Morrison, seconded by Council Member Gilbreath to pass on first reading Ordinance No. 2003-00086 as recommended by staff. Motion carried: 7 Yeas, 0 Nays. 11:25 A. M. COUNCIL ADJOURNED There being no further business to come before Council, Council Member Patterson made a motion to adjourn. 41 Read and approved this L'l day of ?' , 2005. C MCDOUGAL, MAYOR ATTEST: i Re ecca Garza, City Secretary 107