HomeMy WebLinkAboutR2006-036RESOLUTION NO. e2OOh'O36
A RESOLUTION OF THE CITY OF DENTON, TEXAS, ADOPTING THE CITY OF
DENTON'S 2007 STATE LEGISLATIVE PROGRAM FOR THE 80TH TEXAS
LEGISLATURE; PROVIDING A REPEALER; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the 80th Texas Legislature will commence in January 2007; and
WHEREAS, appraisal caps, revenue caps, general government, and many legislative
issues affecting local government will be considered; and
WHEREAS, the City of Denton desires to adopt it legislative program for the 80th Texas
Legislature, attached as Exhibit "A"; NOW, THERFORE,
THE COUNCIL OF THE CITY OF DENTON HERBY RESOLVES:
SECTION 1. That the City of Denton's 2007 Legislative Program from the 80th Texas
Legislature is adopted as set forth in Exhibit "A," incorporated 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 state legislative program to members
of the Texas Legislature.
SECTION 3. The City Manager, or his designee, is directed to draft appropriate
legislation, seek 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 3rd day of October 2006.
a"'61 M F1-,
PERRY R. McNEILL, MAYOR
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY:
APPR ED A TO LEGAL FORM:
EDWIN M. SNYDER, CITY ATTORNEY
City of Denton 2007 State t.egislal rogrant October 3, 2006
Page 5
Exhibit A"
City of Denton
2007 State Legislative Program
State of Texas
80th Legislative Session
As approved by the Denton City Council
October 3, 2006)
TABLE OF CONTENTS
City of Denton Mayor and Council Contact Information 4
City Manager, City Attorney and City Staff Contact Information 5
2007 State Legislative Program Adopting Resolution 6
Denton's Highest Legislative Priority
Continue to urge the legislature not to adopt any legislation, such as
reductions in the property appraisal cap or implementation of any type of
revenue cap, which would negatively affect City revenues and economic
development efforts.7
Erosion of Local Control over City Rights-of-Way
Support TILL in "seeking introduction and passage" of legislation that
would address the failure of utility companies to relocate their facilities in
a timely manner as required by current law.7
Support TML in "seeking introduction and passage" of legislation that
would "grandfather" the provisions of Texas law in any federal cable
franchising bill if any proposed federal law provisions would erode the
provisions of Senate Bill 5 (79th Legislature, Second Called Session).7
Support TML in opposing any legislation that would enact any
detrimental amendments to the provisions of Senate Bill 5 or erode the
provisions of Senate Bill 5 (79th Legislature, Second Called Session).7
Tax and Finance Issues
City's ability to fund necessary local services
Oppose legislation that would mandate a reduction in the current 10%
appraisal growth cap.8
Oppose legislation that would impose revenue caps of any type, including a
lowered rollback rate, mandatory tax rate ratification elections, or lowered
rollback petitions requirements.8
Oppose legislation that imposes a property tax freeze that can be
implemented by any mechanism other than council action.8
Textbook Sales Tax Holiday
Oppose any legislation that would impose a sales tax holiday for textbooks. 9
Municipal Audit Authority
Support legislation that would allow municipalities to audit a taxpayer's
records for sales tax compliance, and ensures the equal tax treatment of
taxpayers, regardless of their sales method.9
Regional Transportation
Sales Tax for Public Transportation Initiatives
Support legislation that would exempt from the two-percent cap on local
sales tax any local sales tax committed to public transportation initiatives. 10
Regional Mobility Authority
Oppose legislation that would create a Regional Mobility Authority in the
four county area of North Central Texas including Dallas, Denton, Collin
City of Denton 2005 State Legislative Program January 18, 2005
Page l
and Tarrant Counties for the purpose of administering funds received
through revenue sharing agreements.10
Utility Issues
Electric subsidies for state universities
Oppose legislation that would extend the electric subsidy to state four-year
state university, upper-level institution, Texas State Technical College or
college, by municipal owned utilities.11
Drainage Fees
Support legislation that repeals the drainage fee exemption for state
entities.11
Bioreactors and other state-of-the-art landfill technologies
Propose legislation that would promote and allow the permitting of
Municipal Solid Waste landfill design and operating technologies that can
have a positive effect on the environment and provide improved site
utilization.11
Retain Local Control over Development Issues and Fees
Oppose legislation that would erode city annexation authority.12
Oppose legislation that would erode city authority in the extraterritorial
jurisdiction over special districts.12
Oppose legislation that would allow voters in the ETJ to vote on whether
any proposed ordinance or ordinance amendment shall apply in the ETJ. 12
Oppose legislation that would reduce a municipal authority 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. 12
Oppose legislation that will reduce or eliminate development fees,
exactions or building permits.12
Oppose legislation that will restrict cities' ability to adopt or amend zoning
regulations, or vest or otherwise create a property right in a zoning
classification.12
Red Light Cameras
Oppose legislation that would restrict 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.13
Grandfathering of Existing Employees into Civil Service System
Support legislation that expands the grandfathering clause of newly
classified civil service positions to municipalities that do not meet the
population requirement outlined in current legislation.13
TML Resolutions proposed by the City of Denton
Beneficial Reuse/Compost/Mulch
Oppose any legislation that would limit or prohibit a city's ability to make
and sell compost/mulch products, inside and outside of the city limits.14
Special Districts in City's ETJ
Support legislation that would place a moratorium on the creation of
special districts until the State Legislature can appoint a task force to
study their adverse affects; and providing for an effective date.14
City of Denton 2005 Slate Legislative Program January 18, 2005
Page 2
Support Legislation that directly benefits UNT and/or TWU
Support legislation that directly benefits UNT and/or TWU, if such
proposals do not adversely affect the city's interest.15
Support Legislation that directly benefits Denton ISD
Support legislation that directly benefits Denton ISD, if such proposals do
not adversely affect the city's interest.15
City of Denton 2005 State Legislative Program January 18, 2005
Page 3
City of Denton City Council Members
Mailing Address for all of Council: 215 E. McKinney, Denton, TX 76201
Voice Mail for all of Council - 940-349-8555
Mayor
Perry McNeill Office: 940-565-2364
1508 Gatewood Drive Home: 940-591-6080
Denton, TX 76205 Cell: 940-390-9463
E-mail: perry.mcneill0cityofdenton.com Fax: 940-381-0106
Council Member - District 1
Charlye Heggins Home: 243-7937
1606 E. McKinney, #11101 Cell: 391-2339
Denton, TX 76209
E-mail: charlye.heg~ins a,cityofdenton.com
Mayor Pro Tern - District 2
Pete Kamp Office: 940-591-0308
110 Friar Tuck Circle Home: 940-566-5557
Denton, TX 76209 Cell: 940-390-9485
E-mail: pete.kamp@cityofdenton.com
Council Member - District 3
Jack Thomson Home: 940-382-5176
1401 Amherst Dr.Cell: 940-390-2296
Denton, TX 76201
E-mail: jack.thomsonCa)cityofdenton.com
Council Member - District 4
Guy McElroy Home: 262-1636
10808 Salentine
Denton, TX 76207
E-mail: guy.mcelroy(a)cityofdenton.com
Council Member - At Large Place 5
Bob Montgomery Home: 940-891-0051
2329 E. Windsor Cell: 940-391-6545
Denton, TX 76209 Pager: 940-380-5140
E-mail: bob. montgomery(ftityofdenton.com
Deputy Mayor Pro Tern - At Large Place 6
Joe Mulroy Home: 940-382-3396
124 Hollyhill
Denton, TX 76205
E-mail: joe.mulroy(a)cityofdenton.com
City of Denton 2005 State Legislative Program January 18, 2005
Page 4
City Manager, City Attorney and City Staff
The Denton City Council and staff would be glad to provide information, research
issues and testify on the City of Denton 2005 Legislative Program.
Municipal Offices:City of Denton
215 E. McKinney
Denton, Texas 76201
www.cityofdenton.com
George Campbell Ed Snyder
City Manager City Attorney
940) 349-8306 940) 349-8336
Howard Martin Jon Fortune
Assistant City Manager Assistant City Manager
940) 349-8232 940) 349-8535
Sharon Mays Betty Williams
Director/Electric Utilities Executive Administrator
940) 349-8487 940) 349-8302
If you or your legislative staff needs assistance from Denton or has any questions
concerning Denton's legislative priorities, please contact:
John Cabrales, Public Information Officer
940) 349-8509, (940) 349-7444 Fax, or email: john.cabralesgcityofdenton.com
City of Denton 2007 State Legislative Program October 3, 2006
Page 5
RESOLUTION NO.
A RESOLUTION OF THE CITY OF DENTON, TEXAS, ADOPTING THE CITY OF
DENTON'S 2007 STATE LEGISLATIVE PROGRAM FOR THE 80TH TEXAS
LEGISLATURE; PROVIDING A REPEALER; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the 80th Texas Legislature will commence in January 2007; and
WHEREAS, appraisal caps, revenue caps, general government, and many legislative
issues affecting local government will be considered; and
WHEREAS, the City of Denton desires to adopt it legislative program for the 80th Texas
Legislature, attached as Exhibit "A," NOW THERFORE,
THE COUNCIL OF THE CITY OF DENTON HERBY RESOLVES:
SECTION 1. That the City of Denton's 2007 Legislative Program from the 80th Texas
Legislature is adopted as set forth in "Exhibit A," incorporated 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 state legislative program to
members of the Texas Legislature.
SECTION 3. The City Manager, or his designee, is diredted to draft appropriate
legislation, seek 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 3`d day of October 2006.
PERRY McNEILL, MAYOR
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY:
APPROVED AS TO LEGAL FORM:
ED SNYDER, CITY ATTORNEY
BY:
City ofDenton 2007 State Legislative Program October 3, 2006
Page 6
Denton's Legislative Priorities
The City of Denton has adopted the following legislative issues as priority issues
for the 801h Texas Legislative Session. The City Council of the City of Denton has
met in workshops, participated in legislative seminars and has received information
from city staff and various groups within the community to set these priorities.
Denton's Highest Legislative Priority
Continue to urge the legislature not to adopt any legislation, such as
reductions in the property appraisal cap or implementation of any
type of revenue cap, which would negatively affect City revenues and
economic development efforts.
Background: The City of Denton during the 791h Texas Legislative Session and
subsequent Special Sessions, worked diligently with other local governments in
providing information to the Texas Legislature that helped them adopt school
finance reform legislation that did not negatively impact city revenues or economic
development efforts. The City of Denton continues to urge the Texas Legislature to
not pass any legislation, such as reductions in the property appraisal cap or
implementation of any type of revenu@ cap, which would negatively affect City
revenues and economic development efforts.
Erosion of Local Control over City Rights-of-Way
Support TML in "seeking introduction and passage" of legislation
that would address the failure of utility companies to relocate their
facilities in a timely manner as required by current law.
Support TAM in "seeking introduction and passage" of legislation
that would "grandfather" the provisions of Texas law in any federal
cable franchising bill if any proposed federal law provisions would
erode the provisions of Senate Bill 5 (79th Legislature, Second Called
Session).
Support TML in opposing any legislation that would enact any
detrimental amendments to the provisions of Senate Bill 5 or erode
the provisions of Senate Bill 5 (79th Legislature, Second Called
Session).
Background: Historically, most utilities were required by franchises and state law
to relocate their facilities at their cost when the relocation was required for a public
work's project. Some utility companies are arguing that Chapter 283 of the Texas
City of Denton 2007 State Legislative Program October 3, 2006
Page 7
Local Government Code (H.B. 1777) altered state law. Denton has experienced
delay in public work's projects due to this confusion and a clarification of state law
is necessary.
Cities may impose numerous kinds of regulation on entities that use the city's right
of way. These regulations will withstand legal challenge because they are
reasonably connected to protection of the health, safety, or welfare of the public.
Denton opposes any new legislation that limits the ability of cities to control the
right of way.
The Federal Legislature is considering various bills that could erode the provisions
agreed to by all concerned parties in Senate Bill 5 the was passed by the 791h Texas
Legislature during their Second Called Session. Denton opposes any legislation,
Federal or State, which would reduce any of the provisions of Senate Bill 5,
especially the definition and collection of franchise fees, the removal of existing
local cable franchises, and restriction of municipal police powers in public right-
of-ways.
Tax & Finance Issues
City's ability to fund necessary local services
Oppose legislation that would mandate a reduction in the current
10% appraisal growth cap.
Oppose legislation that would impose revenue caps of any type,
including a lowered rollback rate, mandatory tax rate ratification
elections, or lowered rollback petitions requirements.
Oppose legislation that imposes a property tax freeze that can be
implemented by any mechanism other than council action.
Background: During the 79th Texas Legislative Session, the City of Denton
adopted a resolution that urged the Legislature not to adopt school finance reforms
that would adversely affect city revenues and economic development efforts. The
city testified and wrote numerous letters during the session, and subsequent special
called sessions. The city continues to oppose state initiatives that restrict a city's
ability to fund necessary local services. TML has also placed these issues in their
oppose category.
City of Denton 2007 State Legislative Program October 3, 2006
Page 8
Textbook Sales Tax Holiday
Oppose any legislation that would impose a sales tax holiday for
textbooks.
Background: There is a good chance that the State Legislature will again consider
a bill providing for a "sales tax holiday" for all books bought by a full- or part-time
student at an accredited public or private institution of higher education if the sale
takes place during certain days in August and in January. During the last legislative
session we successfully opposed these types of bills through a coordinated effort
with other "college cities." We estimate that this "sales tax holiday" for books
would result in an approximately $444,000 annual sales tax revenue loss for the
City.
Municipal Audit Authority
Support legislation that would allow municipalities to audit a
taxpayer's records for sales tax compliance, and ensures the equal
tax treatment of taxpayers, regardless of their sales method.
Background: Under Chapter 151 of the Texas Tax Code, only the, State of Texas,
through the Comptroller of Public Accounts and/or their representative, can audit
a taxpayer's records for sales tax compliance. Although the City recognizes the
proprietary and confidential nature of a taxpayer's sales records and
wholeheartedly believes in maintaining an equal and competitive market place,
it is the City's view that manpower limitations in the Comptroller's Office have
negatively impacted its ability to effectively monitor and audit the hundreds of
taxpayers located in the City of Denton and the State of Texas.
By giving municipalities the authority to audit taxpayer sales records, it expands
the manpower available to the Comptroller's Office, increases compliance with
sales tax laws, and places local control on most municipalities largest revenue
source. At the same time, the City would continue to support the equal tax
treatment of all taxpayers, regardless of the sales method. Under Chapter 151 of
the Texas Tax Code, the tax incidence of the Texas Sales and Use Tax is
dependent on both a business' nexus and 'place of business' within the State
of Texas. Therefore, the City would support the continued taxation of all taxable
goods and services, regardless if provided in a traditional bricks and mortar
location or over the internet.
City of Denton 2007 State Legislative Program October 3, 2006
Page 9
Regional Transportation
Sales Tax for Public Transportation Initiatives
Support legislation that would exempt from the two-percent cap on
local sales tax any local sales tax committed to public transportation
initiatives.
Background: The City supports the option to exclude the locally authorized transit
sales tax currently dedicated to the Denton County Transportation Authority from
the 2 % cap of the local option sales tax. The state mandates that a municipality
can exercise no more than two percent of the local option sales tax. The City of
Denton meets this cap, with 0.5 percent of local option sales taxes being
contributed to the Denton County Transportation Authority and the other portion of
the cap being applied for general use (1.0 percent) and property tax reduction (0.5
percent). By excluding any current and future sales tax committed to regional
public transportation initiatives from the local option sales tax cap, the City may
have the option to utilize local sales tax for other local needs. This initiative is also
being considered by other communities in the North Central Texas Region as part
of an effort to create local funding options for a seamless regional transportation
network.
Regional Mobility Authority
Oppose legislation 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.
Background: The Texas Department of Transportation (TxDOT), The North
Texas Tollway Authority (NNTA) and the North Central Texas Council of
Governments' Regional Transportation Council (RTC) are currently exploring
programming and administration policies as it relates to concession fees and excess
revenue received through Comprehensive Development Agreements (CDA).
TxDOT has suggested that a Regional Mobility Authority be created for this
purpose as well as to develop, implement and finance regional toll projects.
NCTCOG staff is opposed to the creation of an RMA as it will reduce local
autonomy in the development and implementation of regional transportation
infrastructure projects. The RTC staff is currently working with TxDOT and the
NTTA to develop an institution to provide for the administration of the revenue
sharing agreements and ensure financial accountability. The Denton Mobility
Committee supports the RTC/NCTCOG position on this issue.
City of Denton 2007 State Legislative Program October 3, 2006
Page 10
Utility Issues
Electric subsidies for state universities
Oppose legislation that would extend the electric subsidy to state
four-year state university, upper-level institution, Texas State
Technical College or college, by municipal owned utilities.
Background: In 1995 the Texas Legislature passed a law requiring all electric
utilities in Texas to reduce their base rate charges for electric service provided "to
a facility of a four-year state university, upper-level institution, Texas State
Technical College or college" by 20%. The total impact of this discount on the
City is that the two universities pay approximately $800,000 per year less for their
electric service than it costs to serve them. There is a possibility that state
universities might try to extend this 20% discount on their electric service, since
this discount is eliminated by law at the end of 2006.
Drainage Fees
Support legislation that repeals the drainage fee exemption for state
entities.
Background: During the 78th Texas Legislature, the legislature enacted legislation
that exempts state properties, state colleges and universities from paying municipal
storm water utility fees. These state entities benefit from the flood prevention and
storm water control provided by city storm water program. All entities should pay
their fair share of the city's efforts to prevent flooding and to respond to costly
federal mandates relating to storm water run-off. When state entities are exempted
from municipal drainage fees, the remaining ratepayers make up the difference.
TML is opposing the exemption of any entity from paying municipal drainage fees.
Bioreactors and other state-of-the-art landfill technologies
Propose legislation that would promote and allow the permitting of
Municipal Solid Waste landfill design and operating technologies
that can have a positive effect on the environment and provide
improved site utilization.
Background: In March, 2006 the Texas Commission on Environmental Quality
TCEQ) adopted updated Municipal Solid Waste (MSW) rules, 30 TAC 330. The
draft rules contained provisions to accommodate the permitting of bioreactor
landfills. During the adoption process the portions of the rules regarding
Bioreactors was removed and the rule package was adopted without any provision
City ofDenton 2007 State Legislative Program October 3, 2006
Page 1 1
to allow for the permitting of landfills using current state-of-the-art landfill
technology. This included the use of bioreactor processes and other processes that
enhance the naturally occurring biodegradation of the organic components to speed
up the chemical and biological stabilization of the waste. The City would like to
explore the possibility of using some of these technologies.
Retain Local Control over Development Issues and Fees
Oppose legislation that would erode city annexation authority.
Oppose legislation that would erode city authority in the
extraterritorial jurisdiction over special districts.
Oppose legislation that would allow voters in the ETJ to vote on
whether any proposed ordinance or ordinance amendment shall
apply in the ETJ.
Oppose legislation that would reduce a municipal authority 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.
Oppose legislation that will reduce or eliminate development fees,
exactions or building permits.
Oppose legislation that will restrict cities' ability to adopt or amend
zoning regulations, or vest or otherwise create a property right in a
zoning classification.
Background: Denton has allocated major staff recourses and spent significant
sums on creating a development strategy, embodied in the Denton Plan, 1999-
2020, and the Denton Development Code. Denton citizens do not want these efforts
to be undermined by legislation eroding local control. The city needs to retain local
authority over annexation, development fees, and building permits to implement
these plans.
Denton provides water and wastewater to its own citizens and also provides water
and wastewater services through interlocal agreements with many smaller cities in
Denton County. There are 12 fresh water supply districts in Denton County. The
City of Denton has had problems with a fresh water supply district forming inside
the city limits and had to file litigation. Fresh water supply districts frequently
have substandard infrastructure and cannot serve the development that the district
City of Denton 2007 State Legislative Program October 3, 2006
Page 12
projected at build out. These systems are not required to bid competitively and are
very expensive.
Developers will often structure the debt to include a bond balloon payment. This
balloon payment is usually due around the time the system is failing. Cities are
then pressured to take over the district through annexation and are forced to spend
substantial sums to correct the problem. This is the same problem Houston faced
in the early 80s. Denton will urge legislators to exercise caution when creating
special districts and make sure that special districts notify and receive permission
from cities before forming.
TML is also opposing all of these types of legislation.
Red Light Cameras
Oppose legislation that would restrict 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.
Background. During the 781h Texas Legislature, SB 1184 passed and amended the
Texas Transportation Code to allow cities to use cameras at traffic lights and
impose a civil penalty for running the red light. Each year in the United States
more than 800 people die and over 200,00 are injured in crashes that involve
running of a red light. Texas is ranked fourth in the nation for death rates in red-
light crashes. In April 2006, the City implemented red light cameras and four
intersections in the city. Since that time, the average daily red light violations have
gone down significantly at these intersections, and no motor vehicle accidents have
occurred at these intersections.
Grandfathering of Existing Employees into Civil Service System
Support legislation that expands the grandfathering clause of newly
classified civil service positions to municipalities that do not meet the
population requirement outlined in current legislation.
Background: The City is in favor of supporting legislation that lowers the
population requirements for grandfathering newly classified civil service positions
under Chapter 143.021 of the local government code. Current legislation
grandfathers newly classified civil service positions if a municipality meets
population requirements of 220,000 or more. While the City was able to
successfully reclassify some civil service positions through the meet and confer
process, a more permanent solution through legislative change is favored.
City ofDenton 2007 State Legislative Program October 3, 2006
Page 13
TML Resolutions proposed by the City of Denton
Beneficial Reuse/Compost/Mulch
Oppose any legislation that would limit or prohibit a city's ability to
make and sell composttmulch products, inside and outside of the city
limits.
Background: Rep. Dennis Bonnen, District 25, has asked the Texas Attorney
General for an opinion on "whether or not a city can operate a well-organized,
competitive and commercial compost/mulch business and sell its products outside
its city limits in direct competition with private enterprise. If representative
Bonnen receives a favorable opinion from the Attorney General or if he is
successful in passing this type of legislation, this would severely impact the
financial viability of our composting operation.
The City of Denton Water Reclamation Division initiated the composting
operation in 1990. The division had been exploring alternative methods of biosolid
disposal and the composting process seemed very promising for an urban
environment. The option exists to put wastewater biosolids in the landfill however
this is not an environmentally responsible solution. If the Water Reclamation
Division stops composting not only will the wastewater biosolids have to be
disposed in the landfill but the construction lumber, wood waste and yard waste
will have to be disposed of in the landfill as well.
To put this volume of waste material in perspective, since 1990 approximately
1,000,000 yards of wood waste and bio solids have been diverted from the landfill.
It is estimated that the value of landfill airspace saved in excess of $2,000,000.
Not only is the composting operation saving landfill space it is extending the
operating life of the landfill.
Special Districts in City's ETJ
Support legislation that would place a moratorium on the creation of
special districts until the State Legislature can appoint a task force to
study their adverse affects; and providing for an effective date.
Background: Special districts were originally formed to allow rural areas to
obtain adequate water and sewer supplies in areas not served by municipal
facilities. In conjunction with the reduction in city authority to annex and vested
rights legislation designed to protect developers, developers of dense urban
City of Denton 2007 State Legislative Program October 3, 2006
Page 14
developments in rural ETJ areas are using this special district legislation to create
mini-quasi-political subdivisions in the ETFs of cities.
The incentive for creating special districts is that the developer obtains public
financing where all of his development costs are reimbursed on the front end when
the bonds for special district infrastructure are sold. The bondholders are paid back
through ad valorem taxes assessed against the future homeowners that are typically
at a tax rate that is dramatically higher than normal city tax rates. If the city decides
to annex the special district area it must assume the special district's debt, thus
putting the city in the position of having to pay for infrastructure through a much
lower tax rate. This in turn becomes a disincentive for a city to annex the area until
the debt is paid off, thereby further eroding the city's ability to annex area within
its ETJ.
Cities are not allowed to apply there zoning controls in the ETJ, counties generally
have no zoning controls, and there are no regional or state authorities that have
zoning power in ETFs. Under current law cities only have two options, try to
negotiate a development agreement with the developer proposing the special
district or institute involuntary annexation proceedings. However, a city's ability to
involuntary annex property in the ETJ has been greatly curtailed by state law, and
it is often difficult to negotiate a favorable agreement because of the vested rights
laws that lock in development rights once any kind of application is filed. We think
that cities, and not developers, are better suited to look out for the public interest in
these ETJ areas.
Support Legislation that directly benefits UNT and/or TWU
Support legislation that directly benefits UNT and/or TWU, if such
proposals do not adversely affect the city's interest.
Support Legislation that directly benefits Denton ISD
Support legislation that directly benefits Denton ISD, if such
proposals do not adversely affect the city's interest.
City of Denton 2007 State Legislative Program October 3, 2006
Page 15