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HomeMy WebLinkAboutR2012-045s:Vegallour documentslresolutions\121state legislative program resolution (dec 2012).doc xESOLUTION rro. �012-045 A RESOLUTION OF THE CITY OF DENTON, TEXAS, ADOPTING THE CITY OF DENTON'S 2013 STATE LEGISLATIVE PROGRAM FOR THE 83`d TEXAS LEGISLATURE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the 83`d Texas Legislature will commence in January 2013; and WHEREAS, appraisal caps, revenue caps, budgeting authority and revenue sources, and many other legislative issues affecting local government will be considered; and WHEREAS, the City of Denton desires to adopt its 2013 State Legislative Program for the 83rd Texas Legislature; NOW, THERFORE, THE COUNCIL OF THE CITY OF DENTON HERBY RESOLVES: SECTION 1. That the City of Denton's 2413 State Legislative Program for the 83ra Texas Legislature is adopted as set forth herein and made a part of this resolution for all purposes. SECTION 2. That the Mayor and City Council, City Manager and the City Attorney, or their designees shall communicate the items included in the 2013 State Legislative Program to members of the Texas Legislature. SECTION 3. The City Manager, or his designee, is directed to draft appropriate legislation, seelc a sponsor, and actively pursue passage of such legislation by providing testimony from the Mayor and City Council and City Staff and through other appropriate means. PASSED AND APPROVED this the � day of ��('�?/��(�,�J� , 2012. MA A. UGH , MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: --. !�, APP VED S TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY � BY: City of Denton 2013Legislative Agenda rd 83Texas Legislative Session City of Denton 2013 State Legislative Program Page0 TABLE OF CONTENTS I.City of Denton Mayor and Council Contact Information2 II.City Manager, City Attorney and City Staff Contact Information3 III.2013State Legislative Program Adopting Resolution4 IV.General Legislative Policy5 V.Priority Legislative Agenda7 VI.Discussion of Priority Legislative Issues8 VII.General Legislative Agenda12 City of Denton 2013 State Legislative Program Page1 City of Denton City Council Members Mayor Mark Burroughs Mark.Burroughs@cityofdenton.com James King Mayor Pro Tem Pete Kamp Council Member At Large, Place 5 At Large, Place 6 Pete.Kamp@cityofdenton.com James.King@cityofdenton.com Chris Watts Kevin Roden Council Member, District 4 Council Member, District 1 Chris.Watts@cityofdenton.com Kevin.Roden@cityofdenton.com Jim Engelbrecht Dalton Gregory Council Member, District 3 Council Member, District 2 Jim.Engelbrecht@cityofdenton.com Dalton.Gregory@cityofdenton.com City Council Mailing Address: 215 E. McKinney, Denton, TX 76201 City Council Phone Number: (940) 349-7717 Page2 City Manager, City Attorney and City Staff The Denton City Council and staff are glad to provide information, research issues and testify on the City of Denton legislative issues. Municipal Offices: 940-349-8200 City of Denton 215 E. McKinney Denton, Texas 76201 www.cityofdenton.com George Campbell Anita Burgess City ManagerCity Attorney 940-349-8306 940-349-8336 George.Campbell@cityofdenton.comAnita.Burgess@cityofdenton.com Howard Martin Jon Fortune Assistant City ManagerAssistant City Manager UtilitiesOperations 940-349-8232 940-349-8535 Howard.Martin@cityofdenton.comJon.Fortune@cityofdenton.com John Cabrales, Jr.Bryan Langley Assistant City ManagerAssistant City Manager Development ServicesAdministrative Services 940-349-8509940-349-8224 John.Cabrales@cityofdenton.comBryan.Langley@cityofdenton.com Lindsey Baker Assistant to the City Manager Intergovernmental & Media Relations 940-349-8234 Lindsey.Baker@cityofdenton.com City of Denton 2013 State Legislative Program Page3 Page4 GENERAL LEGISLATIVE POLICY PRESERVE THE CITY’S STRATEGIC GOALS & INTERESTS STATEMENT OFPRESERVATION As a general policy, the City of Dentonseeks to preserve its current authority to govern the city, its citizens, and its property. The City will oppose any legislation viewed as detrimental to the City’s strategic goals; or that is contrary to the health, safety, and welfare of its citizens; or that mandates increased costs or loss of revenues; or that would diminish thefundamental authority of the City. SUPPORTLEGISLATION THAT ADVANCES THE CITY’S STRATEGIC GOALS & INTERESTS STATEMENT OF SUPPORT Likewise, the City supports any legislation viewed as advancing the City’s strategic goals; or that improves the health, safety, and welfare of its citizens; or that responsibly increases revenues; or that advances the City’s authority to conduct the public's business.The City will oppose any initiatives that seek to erode municipal authority or that otherwise have a negative impact on municipal operations, including but not limited to legislation that would: Erode home rule authority; Detrimentally affect the City’s financial position by reducing revenue streams or increasing costs; Erode the authority of Texas cities to manage and control their rights-of-way or other public property and to be reasonably compensated for such use; Erode current municipal economic development authority; Erode the current authority of Texas cities to enact a system and setthe level of impact fees for new development; and Further restrict cities’ ability to adopt or amend zoning regulations, and annex property in a city’s extraterritorial jurisdiction. FORM COALITIONS WITH PARTIES THAT SHARE COMMON GOALS AND INTERESTS WITH THE CITY FORM COALITIONS The City will form strategic partnerships with cities, political subdivisions, and private sector entities that share commongoals with the City of Denton. Additionally, the City will work in coordination with organizations such as the Texas Municipal League when their adopted positions are inline with the legislative objectives and goals of the City. The formation of strategic partnerships and coordinated efforts is intended to provide the City with a stronger presence in the legislative process. City of Denton 2013 State Legislative Program Page5 GOALS OF THE CITY’S LEGISLTIVE ACTIVITIES STATEMENT OF GOALS The fundamental goal of all City of Denton’s legislative activities is to produce positive outcomes for the citizens of Denton as a whole. Numerous proposals in the Texas Legislature have the potential to seriously impact the ability of the City to carry out its overall mission. By taking a proactive role in monitoring and commenting on proposals in the Texas Legislature,we are working to ensure that the citizens of Denton can continue toenjoy the quality of life they have come to expect and deserve. City of Denton 2013 State Legislative Program Page6 PRIORITY LEGISLATIVE AGENDA PRIORITY LEGISLATIVE ISSUES 1.Preserve Local Budgeting Authority and Revenue Sources Opposelegislation that would unduly restrict the ability of the City to set its own budget or raise the necessary revenue to provide services to City residents and businesses. 2.Preserve Local Control of Land Use Planning and Zoning Supportlegislation that preserves local land use authority. Opposelegislation that would erode local land use authority by restricting the ability of cities to zone or rezone properties. 3.Preserve Local Control of Denton Municipal Electric Opposelegislation that would deregulate Municipally Owned Utilities or amend their governing structure. Supportlegislation that would preserve Municipally Owned Utilities’ authority and governing structure that maintain a diversified energy portfolio. City of Denton 2013 State Legislative Program Page7 DISCUSSION OF PRIORITY LEGISLATIVE ISSUES Preserve Local Budgeting Authority and Revenue Sources The City of Dentonwill opposelegislation that will unduly restrict the ability of the City to set its own budget or raise the necessary revenue to provide services expected by City residents and businesses. ISSUE During the last several Texas Legislative Sessions, proposals have been set forth that would severely limit the ability of cities to set their budgets or raise adequate revenues to carryout their fundamental functions. For example, numerous proposals to “cap” local revenuesand property appraisals have been filed in the Texas Legislature. Every elected official in the City of Denton is sensitive to the tax burden our citizens and businesses pay,and is accountable to the local electorate for the decisionsthey make. However, we are also mindful that it takes a great deal of flexibility with our local budget to meet the unique demands for services while at the same time preserving the high standards our community has come to expect. PROBLEM Appraisal and revenue caps undermine the ability of local governments to meet the individual needs and circumstances of their cities. Additionally, one size fits all “caps” violate the fundamental principle of local control. Citizens and businesses have numerous opportunities to provide input to the City of Denton’s budget and tax rate setting processes. Most importantly the citizens of our City get to voice their approval or disapproval of our budgeting performance and tax rates every time we hold a City election. Unfortunately, extremely low appraisal and revenue caps can produce numerous problems. For instance, appraisal caps shift the inequitable tax burden to businesses and new homeowners. This inequitable shift can produce serious long-term negative consequences for the local economy. Revenue caps,on the other hand,require the City to cut services or take on more debt to fund local projects and services. These typesof “caps” are particularly harmful to a city like Denton,because it prevents the City from adequately dealing with the infrastructure needs brought on by tremendous population growth. It is inappropriate for the State of Texas to expect local governments to provide numerous public services with no funding from the State, while at the same time unduly restricting the ability of local governments to raise the necessary levels of revenue to provide the required services. SOLUTION If revenue caps are going to be applied to local governments they should be applied uniformly to the state budget as well. In short,the same rules should apply to all levels of government. The State could also supplement local government funding as other states thatimpose revenue caps have done. City of Denton 2013 State Legislative Program Page8 Preserve Local Control of Land Use Planning and Zoning The City of Dentonwill supportlegislation that preserves local land use authority and oppose legislation that will erode local land use authority by restricting the ability of cities to zone or rezone properties. ISSUE Over the past few legislative sessions various proposals have been introduced to restrict the ability of cities to enforce their traditional land use controls. Specifically, legislation that requires cities to compensate landowners anytime a zoning classification change is effected (often referred to as a “downzoning”),has come dangerously close to becoming the law. Under these proposals,cities would have to compensate landowners, even if the proposed zoning changes did not interfere with the current or intended use of the property. In addition to compensating landowners for zoning changes, proposals have been considered that would require compensation for numerous types of city regulations. For example, previously proposed legislation would have required cities to compensate landowners if they restricted the ability of patrons to smoke on premises or limited the time of day that alcohol could be served. All of these types of local restrictions have been debated under the theory of “regulatory takings.” Additional legislative proposals would have prevented cities from ever changing the zoning classification of a property if any type of basic permit or site plan has been filed with any governmental entity. Since 1999 the Texas Legislature has continually expanded the “permit vesting” statute to include different aspects of city land use authority. The expansion of the “permit vesting” statute is beginning to interfere with the ability of cities to impose orderly, efficient, and comprehensive land use and development plans for their communities. PROBLEM Restricting the ability of cities to properly regulate land uses ultimately prevents them from being able to respond to the needs and demands of their citizens. For example, land use controls are used to keep undesirable businesses from locating in neighborhood-type settings. Additionally, one of the main reasons people live in cities is to have the protection of a regulated land use system. In short,when a home or business locates in a particular city they do so,in part, to ensure that an incompatible structure will not be placed next to their property. SOLUTION The ability of most cities to manage growth and development is based on the Texas constitution’s home rule provisions. Cities are allowed to amendcharters and pass ordinances as long as they donot conflict with the constitution or general laws enacted by the state legislature. Thismeans that each home rule city can make its own decisions about what planning tools and techniques are most appropriate to its situation unless those tools have beenproscribed by the Texas legislature. The State should be very cautious in proscribing solutions that are only applicable to individual situations because of the vast differences between cities in this large state. City of Denton 2013 State Legislative Program Page9 Preserve Local Control of Denton Municipal Electric The City of Denton will opposelegislation that deregulates Municipally Owned Utilities or amends their governance authority. ISSUE For the first time in over a decade, the 2011 State Legislative session saw bills introducedregarding partial deregulation for specific Municipally Owned Utilities (MOU). Ultimately, none of the bills passed into law.However, this type of legislative pressure toward specific MOUs can have a widespread, negative impact and unforeseen consequences on MOUs throughout the state.Municipalities owning an electric utility, such as in Denton's case, retain local regulatory authority through its main governing body, the City Council.It is the role and choice of these City Councils to determine each MOUs energyfuture by exercising its authority whether to opt-in to the deregulated market or to retain its local authority.In April, 2001, the Denton City Council took a wait-and-see approach and exercised its authority choosing not to opt-in to deregulation. To date, there has been no viable reason for Denton to enter into the deregulated market. Requiring MOUs to participate in the deregulated market essentially eliminates the authority of the governing bodies of MOUs and forces them to operate under the same guidelines as investor owned utilities.Historically, DME electric rates have remained stable and competitively priced. Mandating that an MOU participate in the deregulated market not only increases its financial burden, but also ensures that the increased costs are passed through to the DME ratepayers, thus placing DME at a competitive disadvantagein the electric market.In addition, should an MOU such asthat owned by the citizens of Denton berequired to opt-in, it mitigates the strategic measuresthat the local citizens have enacted such as requiring more renewable resources from their MOU. PROBLEM Austin Energy’s (AE) rate increase has raised the deregulation issue and it is anticipated that legislation will be proposed to deregulate all ora portion of AE.The opt-in discussions concerning AE may be expanded to include all MOUs.For Denton to enter the deregulated market, the additional operating expense would be substantial.The current and additional operating expenses could be spread across a smaller customer base should customers exercise their “power to choose”.A reduction in DME’s customer base would ensure that its remaining customers would have to absorb the increased costs in the form of higher electric rates. SOLUTION MOUs must preserve the local authority and governing structure to provide affordable electric service and energy portfolio diversity to its ratepayers. City of Denton 2013 State Legislative Program Page10 Preserve Local Control of Denton Municipal Electric The City of Denton will supportlegislation that preserves the authority and governance structure of Municipally Owned Utilities that maintain a diversified energy portfolio. ISSUE During recent sessions of the Texas State Legislature, proposals were sent forth regarding Texas’ Renewable Portfolio Standard (RPS) and its proposed soft target for non-wind renewable generation.Restricting the types of generation which would qualify for inclusion in the RPS essentially eliminates the authority of the governing bodies of Municipally Owned Utilities (MOU) to procure renewable energy sources that are financially feasible for the MOU to maintain a diversified energy portfolio. As such, the increased financial burden for the City of Denton would be passed through to Denton Municipal Electric (DME) ratepayers. The City of Denton is a nationally recognized environmental leader because of its continued diversification of DME’s energy portfolio.At no additional costto its ratepayers, DME provides more wind energy per capita than any other city in the United States and offers one of the largest rebates for the installation of renewable energy generation in Texas.The City of Denton and DME recognize the importance of reducing the overall dependence on fossil fuel generation, while, at the same time being fiscally responsible to its citizens and ratepayers. PROBLEM Any legislation that eliminates MOUs’ authority to determine and maintain a diversified energy portfolio is fiscally irresponsible to the ratepayers.While some areas are more suited for specific types of renewable generation, not all utility scale generation is appropriate in all locations.For example, the cost of constructing and operating solar energy generation can be prohibitive. While solar costs have declined over recent years, the capital costs, scarcity of land, lack of electric infrastructure, and diminished levels of generation output as compared to conventional generation can substantially drive the cost per megawatt-hour of solar energy production upward. It is unrealistic and cost prohibitive for the State of Texas to expect MOUs to provide economically priced electricity to its citizens while requiring a diversified energy portfolio that includes predetermined amounts of specific renewable sources without funding from the State. SOLUTION MOUs must preserve the local authority and governing structure to provide affordable electric service to its ratepayers.If energy portfolio diversity becomes a requirement, MOUs should have the option to determine which renewable generation source is most suited to each MOU’s service area.If a generation requirement is mandated, it should be applied uniformly to investor owned utilities, cooperatives, and MOUs.In addition, the State should supplement local government funding of the construction of utility scale renewable generation to offset the impact to the citizens of Denton. City of Denton 2013 State Legislative Program Page11 GENERAL LEGISLATIVE AGENDA Revenue and Taxation Support legislation that would require mandatory disclosure of real estate sales prices. Opposelegislation that would lengthen or broaden the scope of the current sales tax holiday. Opposeany legislation that would impose a sales tax holiday for textbooks. Oppose legislation that would restrict the ability of cities to impose and collect municipal impact fees from new developments. Land Use and Resources Supportlegislation that would provide municipalities the authority to regulate and enforce zoning, building codes, and property maintenance codes within extraterritorial jurisdictions (ETJ). Support legislation that would address the failure of utility companies to relocate their facilities in a timely manner as required by current law. Opposelegislation that would reduce a municipality’sauthority and discretion to approve the creation of a special district within a city’s incorporated area or ETJ, including the expansion of a district’s boundaries or powers. Opposelegislation that would erode city annexation authority. Opposelegislation that wouldreduce or eliminate development fees, exactions,or building permits. Opposelegislation that wouldrestrict cities’ ability to adopt or amend zoning regulations, or vest or otherwise create a property right in a zoning classification. Supportlegislation that would allow local governments to enact ordinances relating to health and safety regulations as applied to gas drilling and production activities. Support legislation that would allow cities to enact ordinances regulating development, including but not limited to issues related to Chapter 245 Local Government Code. Utilities Supportlegislation that preservesCongestion Revenue Rights (PCRRs) assigned to municipal utilities in exchange for supporting the nodal market construct. Supportlegislation that preserves the Self Regulation of Municipal Electric Utilities. City of Denton 2013 State Legislative Program Page12 Supportlegislation that protects the ability of governmental entities to maintain confidentiality of certain critical documents and activities. Supportlegislation that requires market participants and Retail Electric Providers (REPs) to be properly capitalized before they are allowed to participate in the ERCOT market. Supportlegislation that requires more stringent credit requirements for the startup of Retail Electric Providers (REPs). Opposelegislation that requires municipal electric utilities to pay uplifted charges for those ERCOT Retail Electric Providers (REP) that declare bankruptcy or for any other ERCOT short pay charges. Oppose legislation that would extend electric subsidies provided by municipal utilities to four-year state universities, upper level institutions, Texas state technical colleges or liberal arts colleges. Opposeany legislation that will increase ERCOT Fees. Opposelegislation that exempts any further exemptions to the drainage fee. Opposeany legislation that would limit or prohibit a city's ability to make and sell compost/mulch products, inside and outside of the city limits. Supportlegislation that would fund the state water plan in orderto reduce the stress on current local and regional sources of water, provided that such legislation does not negatively impact local revenue. Opposelegislation that would impose state “tap fees” or any other type of state charge on municipal water systems. Transportation Support legislation that would retain limited authority for TxDOT to enter into public- private partnerships on specific projects. Supportlegislation that would identify additional transportation revenue to enhance statewide and regional ability to maintain and improve transportation infrastructure,and that would provide metropolitan areas with flexible solutions to solve problems and ensure that areas contributing to transportation solutions will not be penalized with a loss of traditional transportation funding. Supportlegislation that would constitutionally protect all revenues in Fund 6 and discontinue the diversion of transportation revenues to non-transportation purposes, and appropriate all revenues from highway user fees and taxes to fund transportation. City of Denton 2013 State Legislative Program Page13 Support legislation that would index the motor fuels tax to reduce the decline in purchase power of transportation funding. Supportlegislation that would increase vehicle registration fees to address transportation funding needs. Supportlegislation that would enforce existing regulations and penalties of driving requirements (e.g. vehicle registrations, driver licenses, and vehicle insurance). Opposelegislation that would create a Regional Mobility Authority in the four county area of North Central Texas including Dallas, Denton, Collin and Tarrant Counties for the purpose of administering funds received through revenue sharing agreements. Supportlegislation that directly benefits Denton County Transportation Authority, if such proposals do not adversely affect the city’s interest. Public Safety Support legislation that would require 100 percent reimbursement of costs incurred by cities for services provided during emergency evacuation and shelter operations resulting from an emergency evacuation ordered by the governor or the governor’sDivision of Emergency Management. Opposelegislation that further restricts a city’s ability to implement a photographic red light enforcement system to use cameras at traffic lights and impose a civil penalty for running the light. General Government Opposestate pre-emption of municipal authority in the regulation of payday lenders, unless proposed legislation provides adequate protections from aggressive and harmful lending practices. Supportlegislation that heightens environmental standards, improves air and water quality and protects the health, safety, and welfare of Texans. Supportlegislation that would exempt cities from any federal collective bargaining legislation that may become law in the future. Supportlegislation amending Section 11.1825 of the Tax Code by adding that community housing development organizations (CHDOs) must receive an exemption from taxation from any affected municipality prior to receiving a tax exempt status from the local property appraisal district. Supportlegislation that directly benefits UNT and/or TWU, if such proposals do not adversely affect the city’s interest. Supportlegislation that directly benefits Denton ISD, if such proposals do not adversely affect the city’s interest. City of Denton 2013 State Legislative Program Page14 Opposelegislation that would further reduce funding to Denton ISD, if such proposals do not adversely affect the city’s interest. Supportlegislation that would provide funding for Early Childhood Programs, including full-day service pre-kindergarten programs. 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