HomeMy WebLinkAboutResolution - 5714 - Actions On Proposed EDC By Sales Tax Petition For Economic Development - 12_11_1997RESOLUTION NO. 5714
Item #15
December 11, 1997
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LUBBOCK,
COMMITTING THE CITY COUNCIL TO CERTAIN ACTIONS REGARDING THE
PROPOSED ECONOMIC DEVELOPMENT CORPORATION ENVISIONED BY THE
PETITION CALLING FOR THE PASSAGE OF A 3/8 OF A CENT SALES TAX FOR
THE PROMOTION AND DEVELOPMENT OF NEW AND EXPANDED BUSINESS
ENTERPRISES WITHIN THE CITY OF LUBBOCK.
WHEREAS, there has been presented to the City Council of the City of Lubbock
a petition to call an election to impose a 3/8 of a cent sales tax for the promotion and
development of new and expanded business enterprises within the City of Lubbock; and
WHEREAS, the petition and state law leave to the discretion of the City Council
the specific terms of the Articles of Incorporation of the Corporation and grants to the
City Council the ability to regulate certain operational aspects of the Corporation; and
WHEREAS, the City Council desires to establish some of the regulations which it
intends to place upon the operation of the Corporation; NOW THEREFORE:
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT upon passage of the 3/8ths cent sales tax the City Council shall establish
limitations and rules regulating the operation of the corporation as follows:
1. Article 5190.6 Sec 25 (f) provides: "No issue of bonds, including
refunding bonds, shall be delivered by the corporation without a resolution of the
governing body adopted no more than 60 days prior to the date of delivery of the bonds
specifically approving the resolution of the corporation providing for the issuance of
the bonds".
As a result of the above provision, the corporation may not issue bonds without the
specific approval of the City Council. At no time will the City Council approve the
issuance of bonds unless the sale of bonds has been approved by a majority of the
voters at an advisory election called for that purpose.
2. Article 5190.6 Sec 4B(c) provides: "The board of directors of a
corporation under this section consists of seven directors who are appointed by the
governing body of the eligible city for two -years terms of office. A director may be
removed by the governing body of the eligible city at any time without cause."
As a result of the above provision the City Council determines who shall serve as
directors of the Corporation and the manner in which they serve. At no time will the
City Council approve the nomination of a member of the City Council or any employee
of the City of Lubbock to serve as a director of the corporation. Additionally, the
Articles of Incorporation shall provide that Directors of the Corporation shall, to the
extent allowed by law, be deemed to be "Local Public Officials" as that terms is defined
by Chapter 171 of the Texas Local Government Code and shall abide by the terms of
Chapter 171 in all of their dealings with the corporation.
3. That following the expiration of seven years from the date of first
collection of the economic development sales tax the City Council shall call an election
to allow the voters to determine whether or not the sales tax should continue.
Passed by the City Council this 11th day of December , 1997.
A T:
Kayth'e arnell, City Secretary
ccdocs/propta.res
December 4, 1997
I�VA- 4��
WINDY SI?FO-14, MAYOR
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