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."
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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.
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Read and approved this L'l day of ?' , 2005.
C MCDOUGAL, MAYOR
ATTEST:
i
Re ecca Garza, City Secretary
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