Min - City Council - 1995 - 11/28 - Special CalledALLEN CITY COUNCIL
SPECIAL CALLED MEETING
NOVEMBER 28, 1995
Joe Farmer, Mayor
Kevin Lilly, Mayor Pro Tem
David Kerr (arrived at 4:55 p.m.)
Doug Gallagher
Mike Nichols (absent)
Steve Terrell
David Bishop (absent)
Jon McCarty, City Manager
Judy Morrison, City Secretary
Call to Order and Armounce a O o im is Present (Agenda Item 1)
With a quorum of the Councilmembers present, the special called meeting of the Allen City Council was
called to order by Mayor Farmer at 4:38 p.m. on Tuesday, November 28, 1995, in the Council Chambers of the
Allen Municipal Annex, One Butler Circle, Allen, Texas.
Review Issues Related to Section 41, Article 5190.6,
V.T.C.S.A. Concerning the Adoption of an
Additional Sales and Use Tax Within the City of Allen (Agenda Item II)
Ed Esquivel, Counsel for the City of Allen on the 4B tax issue, distributed an ordinance calling the election
and a copy of the law delineating the Development Corporation Act of 1979 Mr. Esquivel reviewed the general
wording of the ordinance and the opportunities afforded the Council and the City with regard to this particular
wording. He also reviewed specific wording in Section 4B of the Development Corporation Act of 1979 as it
relates to the Board of Directors of this corporation and the aggregate limit of taxes to be collected. He reviewed
the types of projects that can be developed with this sales tax money and explained the corporation board structure
and its ability to delineate the use of the monies. When specific projects are not set forth in the proposition
wording, the citizens do have a right to petition the City requiring an election on a specific project.
11
ALLEN CITY COUNCIL
SPECIAL CALLED MEETING
NOVEMBER 28, 1995
PAGE
Mr. Esquivel indicated that it would be desirable to vote on specific maintenance and operations of the
projects allowed by the 4B law He also reviewed the differences between the wordings of the propositions during
the 1995 election and the anticipated 1996 election.
Charlotte Smith, Finance Director, reviewed one-half cent (1/20) sales tax projections. Should the Council
choose the January election date, the total amount for a five-year period would be $5,581,509 Should the Council
choose a May election date, the total five-year period would provide $5,376,121
Discussion was held regarding sales tax percentages of Allen citizens versus those paying tax who are not
Allen citizens.
City Manager Jon McCarty reviewed Staff recommendations for possible projects as a result of the sales
tax revenues. He informed the Council these projects were for a five-year projected project list. The capability
to pay actually drives the amount of bonds that the City may be able to sell The Council and legal counsel will
review this recommended list to see if these items can be included for the use of the sales tax funds.
Council took a brief recess
Council reviewed four (4) specific area dealing with the one-half cent (1/2e) sales tax:
Issue #1: Does Council wish to call an election?
It was agreed that with our growing community this seems like a good way to provide the services needed
without totally impacting the Allen citizens It was also suggested that Allen citizens be encouraged to
spend their money in Allen in order to benefit the Allen growth and projects being suggested for use in this
one-half cent (1/2c) sales tax rather than spending money in Plano to enhance Plano's quality of life.
Issue #2: Proposition language
Discussion was held regarding the basic language suggested by the attorney and any additional language
that might be added to the present proposition. It was felt that the general language is desired above the
specific language. However, Council will revisit this issue at a later date.
Issue #3: Date of the election
Since it was felt by the Council that a more effective job needs to be done in communications this time,
January is not appropriate for the election but rather a May election would be more appropriate to allow
for better communications to the citizens. It was felt that not only would it be difficult to communicate to
the voters, but it would also be difficult to enlist the help of volunteers to run the campaign for a January
election However, Council feels it necessary to call the electron as soon as possible so that the
communications program can be started soon after the holidays.
I
ALLEN CITY COUNCIL
SPECIAL CALLED MEETING
NOVEMBER 28, 1995
Issue #4: Projects
PAGE
Council felt it was necessary to communicate project areas that need to be considered for priority use of
this sales tax money It was suggested, however, that this list not be a mandate to the new corporation
board, but only be used as a guideline. Although Council felt it was necessary to discuss the actual board
requirements, the autorney cautioned the Council from making the corporation board an issue in the
election until after the election has passed.
Consider an Ordinance Calling an Election
for the Half -Cent Sales Tax as Allowed
by Section 4B Article 5190.6. V.T.C.S.A.
(Agenda Item HI)
There was no action taken on this item to consider an ordinance calling an election for the one-half cent
(1/20) sales tax.
Items of Interest
There were no items of interest.
(Agenda Item IV)
Adjourn (Agenda Item V)
MOTION: Upon a motion made by Councilmember Kerr and a second by Councilmember Gallagher, the
Council voted five (5) for and none (0) opposed to adjourn the special called meeting at 6:55 p.m.
on Tuesday, November 28, 1995. The motion carried.
These minutes approved on the I h day of December , 1995.
APPROVED:
/lit ���
Joe Farmer, MAYOR
ATTEST:
y Mor on, CMC, CITY SECRETARY