HomeMy WebLinkAboutR2004-012S:\Our Documents~Legislafion\04 State,School Finance Resolution.doe
A RESOLUTION OF THE CITY OF DENTON, TEXAS URGING THE TEXAS
LEGISLATURE TO ADOPT SCHOOL FINANCE REFORMS THAT WOULD NOT
ADVERSELY AFFECT CITY REVENUES AND ECONOMIC DEVELOPMENT EFFORTS,
AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, it is likely that the Texas Legislature will address school finance and tax
system reforms in the near futura; and
WHEREAS, during deliberations by the Texas Legislature, proposals to limit the ability
of cities to collect property taxes and sales taxes are likely to be offered by some members of the
Legislature; and
WHEREAS, additional restrictions on city taxes fly in the face of a history of frugal tax
administration by Texas cities; and
WHEREAS, all Texas cities combined collect only 15.3 percent of all property taxes
collected in the State of Texas, while schools collect more than 60 percent; and
WHEREAS, between 1985 and 2002, the municipal share of all property tax revenue fell
from 20.3 percent to 15.3 percent; and
WHEREAS, adjusted for inflation, municipal property taxes went up by only 37 percent
between 1985 and 2002, while population grew by 33 pement, demonstrating that growth in
municipal property tax levies roughly matched population growth; and
WHEREAS, in 1994 Denton voters approved a ½ cent sales tax to reduce property taxes,
which dropped the city tax rate from .747/$100 to .56/$100; and
WHEREAS, in 2000 Denton voters passed a 5 cent property tax increase proposed by a
Blue Ribbon Bond Committee for capital improvements, which the City Council did not fully
implement because of the downturn in the economy, showing that the Denton City Council is
fiscally responsible; and
WHEREAS, since 1994, there has been a 36 percent decrease in the City of Denton's tax
rate; and
WHEREAS, Texas cities rely on tax revenue to build basic infrastructure, to ensure
public safety through police and fire departments, and to provide numerous essential services for
city residents, who are 80 percent of the state's population; and
WHEREAS, Texas cities engage in numerous economic development activities that
produce jobs and revenue for the entire State of Texas; and
WHEREAS, cities must meet the challenges of homeland security and compliance with
state and federal mandates, many of which are unfunded mandates; and
WHEREAS, Texas cities have shown over the years that they are fiscally responsible and
good stewards of taxpayers' money; and
WHEREAS, efforts to limit the ability of cities to collect sales and property tax revenues
or to set tax rates would have severe negative impacts on city services, city employees, economic
development efforts, and ultimately the citizens of the State of Texas; NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES:
SECTION 1. That the governing body of the City of Denton urges the Texas Legislature
to adopt all school finance or tax reform that will not negatively impact the ability of the City to
provide basic essential services, conduct economic development activities, and ensure public
safety by limiting our ability, beyond the provisions of current law, to collect property tax or
sales tax revenues.
SECTION 2. That the Mayor, City Council and City Staff shall communicate the City of
Denton's positions on proposed school finance reforms to members of the Texas Legislature.
SECTION 3, This resolution shall be effective immediately.
PASSED AND APPROVED this the ~&t~ day of ~'/~ ~,~/ ,2004.
EULINE BROCK, MAYOR
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
HERBERT L. PROUTY, C1TY ATTORNEY
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