HomeMy WebLinkAboutMin - City Council - 1991 - 08/22 - Special CalledI
ALLEN CITY COUNCIL
SPECIAL CALLED WORKSHOP
AUGUST 22, 1991
Present:
Joe Farmer, Mayor (absent)
Councilmembers•
Kevin Lilly
Mickey Christakos
David Bishop
Mike Nichols
Steve Terrell
Gary Edstrom, Mayor Pro Tem
City Staff:
Jon McCarty, City Manager
Judy Morrison, City Secretary
SPECIAL CALLED WORKSHOP - 7:30 P.M.
With a quorum of the Councilmembers present, the Special Called Workshop of the
Allen City Council was called to order by Mayor Pro Tem Edstrom at 7:32 p.m. on
Thursday, August 22, 1991, at the Allen Public Library, Two Civic Plaza, Allen, Texas.
Presentation on the Economic
Development Funding Study
(Agenda Item II)
David Pitstick, Economic Development Coordinator for the City of Allen, discussed
the background of the Economic Development Funding Study with the Council and guests.
To assist cities with an aggressive business development program, the state legislature has
taken an aggressive approach to encourage business growth in Texas. As a result of new
legislation, Texas cities now have more flexibility to determine the future of their
communities through business development than they have ever had. Mr. Pitstick reviewed
the characteristics and mandates of SB 971. The law provides for the following:
• The City may form a Corporation under this act that has those powers and
$ limitations specified in the act.
ALLEN CITY COUNCIL
SPECIAL CALLED WORKSHOP
AUGUST 22, 1991
PAGE 2
• A City may levy a sales and use tax for the benefit of the Corporation if the
tax is authorized by a majority of the qualified voters, voting at an election
called and held for that purpose. The additional sales tax is delivered to the
City by the State Comptroller's office and the City is obligated to deliver the
proceeds to the Corporation.
• The Corporation shall have a board consisting of five directors, who are
appointed by the City Council and serve at the pleasure of the City Council.
The Corporation Board serves as an advisory Board to the City Council.
• The Corporation may use its funds for a number of very broad purposes
related to industrial development. These allowed uses acquiring buildings,
land and equipment, paying principal and interest on debt and other purposes
that are in the best interest of the City and the Corporation.
• The special sales tax revenue may not be spent for transportation facilities,
sewage or solid waste disposal facilities, or water supplied to the general
public unless these facilities benefit property that was acquired specifically
for development purposes.
• No more than ten percent of proceeds of the 1/2 cent sales tax can be used for
promotional purposes.
• The law provides that the Corporation can be dissolved by a majority of
voters, voting in an election for that purpose and residents may petition to
place this issue on the ballot.
• The maximum amount of sales tax that can be imposed by a City is two percent
and the maximum amount that can be used for economic development purposes
is 1/2 cent.
Mr. Pitstick also reviewed with the Council the requirement that a corporation needs
to be set up with a board of directors. He reviewed possible designated slots on the initial
board, those being: city councilmember, chamber board of directors member, AISD board
of trustee member, industry representative, and either a citizen -at -large or a lending
institution representative.
He also reviewed with the Council anticipated revenue as a result of this tax being
in effect over the next five years. He also reviewed a possible calendar of events with
regard to the election of the sales tax option.
Presentation on the Chamber of
Commerce 1/2 cent Sales Tax Surve9
(Agenda Item III)
Scott Williams, President of the Allen Chamber of Commerce, distributed to the
Council a survey completed by Allen Chamber members. He discussed the results of the
survey indicating that the figures showed that the majority of the chamber members were
in support of the 1/2 cent sales tax to support business development in Allen.
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ALLEN CITY COUNCIL
SPECIAL CALLED WORKSHOP
AUGUST 22, 1991 PAGE 3
Discussions and Questions and Answers
Regarding the Economic Development
Funding Study and Survey (Agenda Item IV)
Discussion was held regarding the number of responses to this particular survey
regarding the 1/2 cent increase in local sales tax to support business development in Allen.
Chamber representatives indicated that response generallywas in line with most other items
of this particular nature. It was also felt that the average citizen needed to be informed
on how this will help the average tax payer in Allen. It was felt that the strategy we take
from this point forward will be the key force in a successful proposition. Discussion was
also held regarding the Council taking the lead role in this particular item. David Pitstick
discussed the strategies used by certain other cities prior to their election and the results
of those strategies. Discussion was held regarding the five member board and its role that
it will eventually play in the direction in use of this sales tax money.
Jon McCarty, City Manager, summed up the process in the following steps:
1. Define what we want to talk about.
2. Get input.
3. Decide whether to put it on a ballot.
4. Develop a strategy for the election.
The Chamber informed the City Council that the majority of its members would like
to go ahead with the process and they would look to the Council for leadership in this
issue.
Items of Interest to the Council (Agenda Item V)
There were no items of interest to the Council.
Adiourn (Agenda Item VI)
MOTION: Upon a motion made by Councilmember Lilly and seconded by Councilmember
Nichols, the Council voted six (6) for and none (0) opposed to adjourn the
Special Called Workshop of the Allen City Council at 9:25 p.m., on Thursday,
August 22, 1991. The motion carried.
ALLEN CITY COUNCIL
SPECIAL CALLED WORKSHOP
AUGUST 22, 1991 PAGE 4
These minutes approved on the 5th day of September, 1991.
ATTEST:
L/PiJ/rA.a9-1-�
Ju
y Mo on, CITY SECRETARY
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APPROVED:
I
a § , MAYOR PRO TEM