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Amended by Resolution No. R2003-002 01/07/03
A RESOLUTION OF THE CITY OF DENTON, TEXAS ADOPTING THE CITY
OF DENTON'S 2003 STATE LEGISLATIVE PROGRAM; AND PROVIDING AN
EFFECTIVE DATE.
WHEREAS, the Seventh-eighth Texas Legislature will convene in January, 2003; and
WHEREAS, many legislative issues affecting local government will be considered; and
WHEREAS, the City of Denton has developed a legislative program for consideration by the
Legislature; NOW, THEREFORE
THE CITY COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES:
SECTION 1: That the City of Denton's 2003 State Legislative Program for the City of
Denton is adopted as set forth in Attachment "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 shall
communicate the items included in the state legislative program to members of the Texas Legislature.
SECTION 3: That, for those items designated as priority, the City Attorney 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.
SECTION 4: That, for those items designated as support, the Mayor and City Council, City
Manager and the City Attorney shall actively attempt to obtain passage of the appropriate legislation
if it is introduced by some other entity.
SECTION 5: That, for those items designated as endorse by the City of Denton or the
Texas Municipal League, the City Manager and the City Attorney are directed as time allows to
communicate to appropriate individuals the City Council's general support of such legislation.
SECTION 6: That the City Manager and the City Attorney are directed to oppose any
legislation which diminishes the City of Denton's home-rule authority.
SECTION 7: This resolution shall take effect immediately from and after its passage in
accordance with the provisions of the Charter of the City of Denton and it is accordingly so resolved.
City of Denton 2003 State Legislative Program
PASSED AND APPROVED this the /~
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
HERBERT L. PROUTY, CITY ATTORNEY
day of November, 2002.
EULINE BROCK, MAYOR
City of Denton 2003 State Legislative Program
Attachment A
Denton's Legislative Priorities
The City of Denton has adopted the following legislative issues as priority issues
for the 78th Legislative Session. The City Council of the City of Denton has met
in workshops, participated in legislative seminars and have received information
from city staff and various groups within the community to set these priorities.
Homeland Securi
Support legislation amending Chapter 418 of the Texas Government Code
to allow increased funding for Homeland Security needs.
Support legislation to limit disclosure of public information that might
benefit terrorist organizations.
Support legislation to allow security briefings in closed session under the
Open Meetings Act
Background Information. After September 11, cities are setting new
priorities:
Fire, police EMS and health officials need special equipment and extra
personnel to respond to anthrax alarms, which in some mid-sized cities have
totaled as many as 60 calls in one day.
Cities must pay overtime for police to patrol power and water treatment plants
and for training to respond to biological or chemical attacks.
Security for power and water infrastructure is funded in most cities through the
water and electric utilities, which are financed by customer charges. For other
costs, cities depend on taxes, and sales tax revenues are declining in most areas.
Federal grant money should be passed through to local governments, who are first
responders and responsible for protecting citizen's water supply and electric
power. Amendments to Chapter 418 of the Texas Government Code may be
necessary to allow the Governor's Division of Emergency Management to provide
technical and financial tools to assist municipal governments with implementing
emergency management plans and services.
Texas Open Records Act - does not contain an exception for documents
containing security measures. The Open Meetings Act contains a provision that
allows the city council to meet in closed session to discuss security devices but
not overall security measures. Cities need to be able to protect security sensitive
documents and closed sessions concerning security issues so that terrorists will
not have access to information on security.
Transportation Proposals
The Texas Municipal League has put together an excellent program to increase the
level and availability of state transportation funding, and Denton is fully behind these
efforts. TML will:
Support legislation that would:
Provide cities with revenue that can be used for transportation funding.
Make it simpler to convert to dedicated sales tax revenue for street repair from
sales tax revenue dedicated to any other purpose.
Allow for a 1/8 cent street maintenance sales tax
Dedicate state revenue to the Texas Mobility Fund.
Establish desired levels of service for state-funded transportation infrastructure.
Allow TXDOT to conduct protective right-of-way acquisition procedures,
including right-of-way map and field note preparation, appraisal of right-of-
way parcels at a time commencing after the final public meeting based on final
determination by TxDOT as to the accuracy of the right-of-way requirements
established on the geometric design schematic for the final meeting.
Increase Texas trucking road use fees, but only as may be required to allow
Texas to increase fees on out of state trucks, and allocate the resulting revenue
to Fund 6 for highway funding.
Endorse legislation that would advance the concept of the Trans Texas
Corridor as advocated by Governor Rick Perry, in pilot projects, as long as
investment in other elements of transportation infrastructure is not endangered
and adequate public input is allowed.
Oppose legislation that would further divert the state's transportation-related
revenue to non-transportation projects.
Background Information: Traffic congestion is a major problem in Denton. We
have several major highways running through our city (identified on page 3).
TXDOT procedures must be streamlined and a hard look at the development of mass
transit systems in Texas is needed. Denton's bond election of January 2000 included
for the first time a significant amount of bond money for the study of mass transit
systems. If we ranked all of the economies and areas of the world, Texas would rank
number 11. Texas has the second highest population among the 50 states, and the
Dallas-Ft. Worth-Denton area is growing rapidly. Texas is in need of a first class
transportation system to serve this economy and its citizens.
Erosion of local control over the Right-of-way
Oppose legislation limiting the ability of cities to control the
right-of-way and to collect franchise fees.
Background Information. Under current federal or state law, no laws exist that
reduce the authority of cities to exercise their police powers for the protection of the
health, safety, and welfare of the public in connection with the use of city streets and
rights-of way by telecommunication companies and other entities providing service.
The types of regulations that cities may impose on entities that use the city's right of
way are numerous and will withstand legal challenge because they are reasonably
connected to protection of the health, safety, or welfare of the public. Denton urges
the Legislature not to adopt new legislation that limits the ability of cities to control
the right of way.
Cities collect franchise fees as compensation for the use of the right of way. These
fees reimburse the public for the use of the right of way. Denton urges the
Legislature not to adopt legislation that limits cities ability to collect franchise fees.
Economic Development Issues
Retain a state level presence and retain beneficial programs
in Economic Development.
Background Information: The state plays an important role in attracting
business investment, encouraging business growth, and supporting local economic
development recruitment and retention efforts. As the Texas Department of
Economic Development undergoes Sunset Review, we support the continuation of a
revitalized state economic development entity whose functions include promoting
Texas as a desirable location for future business expansions, new capital investment
and local recruitment and retention programs.
Denton supports improved public education programs to promote more college
graduates. We support the expansion of state excellence funding to assist our public
universities in national competition for engineering and science research funds.
Support Legislation allowing Logo Reader Boards in Urban
Areas with a population of 50,000 or more.
Background Information: Specific information logo signs have a blue
background with a white reflective border for commercial establishments which
provide gas, food, lodging or camping and are located not farther than three miles
from an interchange on an eligible highway. TxDOT contracts with a private firm to
provide the signs and administer the program. Amending Chapter 391 of the Texas
Transportation Code to allow Denton and other Texas urban areas with a population
of 50,000 or more to place logo reader boards on state highways is necessary to allow
local business within three miles of the interchange to be eligible to purchase signs to
be placed on the interstate. This would allow business owners to make available their
services to interstate travelers and may increase sales tax revenue.
Support Legislation that would provide adequate funding, at
or exceeding current levels for the Texas Recreation and
Parks Account.
Background Information: The recreation and park system of the State of Texas
provides a system of parks with opportunities for recreation and exercise, which leads
to a healthier population, and increased opportunities for youth, which may lead to a
reduction in juvenile crime. Denton fully supports conservation and preservation of
cultural and natural resources in a park system for current and future generations of
Texas. The quality and quantity of park and recreation facilities provides an incentive
for economic development and increased property values. Denton is a fast growing
city with increasing demands for park and recreation facilities. Denton, the Texas
Municipal League and The Texas Recreation and Parks Society also support
legislation that would provide adequate funding, at or exceeding levels to meet the
future needs and demands of the citizens for park and recreation facilities.
Development Issues and Fees
Retain local control over development and development fees.
Background Information: Denton has allocated staff recourses and spent significant
sums on development issues. We started the process by developing a vision and
growth management strategy. We then used a Visual Quality Survey to find out what
the citizens wanted. Denton then spent two years developing the Denton Plan, 1999-
2020. The plan deals with Land Use, The Street, Urban Design, Schools and
undeveloped areas on the edge of the city. This plan has won numerous awards for its
planning strategies including:
Merit Award from the Society of Landscape Architects
Comprehensive Planning Award and Visual Quality Survey Award from the
Texas Chapter of the American Planning Association
TML Excellence Award for the Visual Quality Survey
Planning Project Award from the Midwest Chapter of APA
Texas and Midwest APA Award for the Denton Development Code
We believe that visioning and growth management are best done at the local level.
Denton would not like to see growth management mandated by the state. What works
in Denton may not work in other cities.
Oppose legislation creating water districts in the ETJ and
enact legislation to require water districts to notify and
receive permission from cities before forming.
Background Information: Denton provides water and wastewater to its own
citizens and also provides water and wastewater services through interocal
agreements with many smaller cities in Denton County. Water is a limited natural
resource and being able to meet its commitments for water supply is a priority with
Denton. Denton County does not need more water districts. Fresh water supply
corporations should have to receive permission from cities before forming.
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 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. We urge legislators to consider amendments to the Texas Water Code
to require that fresh water supply districts receive permission from cities before
forming.
Tax and Finance Issues
Amend Chapter 35 of the Texas Education Code concerning
Higher Education Authorities
Background Information: Chapter 35 of the Texas Education Code permits a city
to create a higher education authority or a nonprofit corporation to exercise powers
similar to those of a higher education authority. The nonprofit organization can issue
tax-exempt bonds to buy educational facilities or dormitories within or outside the city
that created the corporation. If the project is a dormitory, the bonds are to be paid
from the rent from the dormitory. The dormitories must be rented exclusively to
students or other persons officially connected with a university. The educational or
dormitory facilities built by an authority are exempt from ad valorem property taxes.
Some cities and private individuals, through the use of an authority, are financing the
construction of student apartment complexes outside of their extraterritorial
jurisdiction and claiming a property tax exemption. Senate Bill 914, which was
introduced in the last legislative session but not passed would establish that
educational and student housing facilities owned by higher education authorities or
certain nonprofit entities that are financed by an authority must have a connection to
an educational institution to qualify for tax exempt status. Under S.B. 914, before
issuing tax exempt bonds for these kinds of projects within the city of Denton, they
must obtain the consent of the City Council, Mayor, County Judge or Commissioners
Court. Denton supports amending state law to require the consent of the city and other
taxing entities (like school districts) that lose property tax revenue within the city that
the authority locates the dormitories in.
Support amendments to Chapter 351 of the Texas Tax Code
to allow cities to charge an additional 2% Hotel/Motel tax for
the construction, maintenance and operation of convention
centers.
Background Information: Chapter 351 of the Texas Tax Code allows some
cities to charge an additional 2% Hotel/Motel tax for convention center facilities.
Denton supports amending Chapter 351 to allow cities to charge an additional 2%
Hotel/Motel tax for the construction, maintenance and operation of convention
centers.
Clarify the Use of Hotel/Motel Tax Funds
Background Information: The Hotel/Motel industry has stated that all
expenditures must directly promote tourism and the convention and hotel industry.
This new emphasis on the interpretation of this statute is causing controversy in many
cities. Research into the legislative history of the act indicates that the legislation was
not originally enacted to benefit the hotel/motel industry.~ In 1987 S.B. 1532 was
enacted and provided that the expenditures of the hotel/motel tax money directly
promote tourism and the convention and hotel industry. The Hotel/Motel industry is
putting a new emphasis on the word, "directly", to indicate that the expenditures must
put "heads in beds".
Denton supports beneficial amendments to Chapter 351 of the Texas Tax Code
clarifying the use of Hotel/Motel tax funds.
Library Funding
Denton recently received a TIF grant and fully supports continuation of the
Telecommunications Infrastructure Fund (TIF) and TIF grants to libraries. Denton
supports public libraries by providing state funding to increase access to full-text
online information services and by funding the Loan Star Libraries program of the
Texas State Library and Archives Commission.
Finally, Denton supports increasing direct state aid for public libraries as long as there
are no grant conditions that prohibit non-resident fees.
Oppose - Enacting a sales tax exemption that isn't a local
option exemption.
Oppose - Enacting a property tax exemption that would be a
substantial erosion of the tax base.
SB 911 enacted in i971.
Support Internet Sales Tax Model Legislation.
Background Information: Denton has numerous federal and state properties that
do not pay ad valorem taxes. In 1994 Denton passed a ½ cent sales tax for the
reduction of property tax. This means that we are heavily dependent on sales taxes.
Denton has lost over $200,000 annually in sales tax revenue as a result of the sales tax
holiday. Opting out of a sales tax holiday is not politically feasible for a municipality
in an urban area, because shoppers would go to nearby cities to take advantage of the
sales tax holiday. Expanding the sales tax holiday or adding additional items other
than school supplies - or adding additional property tax exemptions - would
significantly impact Denton.
Denton asks legislators to be cautious in considering expanding the sales tax holiday.
Expanding the number of sales tax holiday days will dramatically affect cities. We
urge legislators to make minor amendments to exempt school supplies from sales tax
during the sales tax holiday and to wait to make more amendments until after a study
of the impact on cities is complete.
Denton also supports model Internet sales tax legislation. Items sold over the Internet
should be taxed the same as items sold within the city, so that one type of retailer does
not have unfair advantage over another
Support Legislation that directly affects Denton ISD
Support increasing the state share of the Foundation School
Program to 60 percent while maintaining local control over
the allocation of resources.
Provide additional state resources to local school districts to
increase fiscal capacity of the school finance system and to
provide districts with the resources needed to meet rising
expectations.
Increase state funding for children with special needs.
Adding a factor to the state funding formula for school
districts that are heavily impacted by exempt state and
federal property.
Background Information: Denton ISD includes the University of North Texas,
Texas Women's University, Denton State School, FEMA, County government and
other tax-exempt properties. All of these entities feed students into Denton ISD
without concomitant tax payments. Denton ISD is among the lowest-ranked area
schools in terms of taxable value per student.
Because of the location in our community of the Denton State School, the Nelson
Center and other entities that serve students with special needs, Denton has a
disproportionate number of such students, many of whose families live elsewhere
in Texas.
Denton ISD expenses exceed the state average for providing educational services
to specialized populations. Denton citizens make up this difference with local
property taxes.
We urge you to consider these issues when looking at school funding formulas.
DME Legislative Objectives for 78th Legislature
Maintain the rights and protections provided to municipal
electric utilities in SB 7.
Minimize the rising administrative costs associated with
implementation of retail competition.
Support an environment that supports cost-effective
development of the electric transmission system in Texas, cost
effective siting of generation in Texas, and maintains the
reliability of the Texas electric grid.
Avoid excessive reliance on charges imposed upon electric
consumers in order to satisfy the state's budget deficit
Background Information: Electric Utility Issues are dynamic and ongoing in
today's market. Denton will actively monitor proposed legislation and continue to
inform legislators of D enton's position in the upcoming session.
For several legislative sessions, Denton Municipal Electric has hired and anticipates
hiring a utility expert, Jim Boyle, to act on its behalf before the Texas Legislature with
regard to legislation affecting DME. As bills are filed, DME and its representative
will contact legislators to convey Denton's position to protect its investment in DME,
including its position as member of the 4-City Texas Municipal Power Authority.