2007-046
$:\Our Documents\Ordinances\07\Dcnton Sales Tax Litigation Ordinance.doc
ORDINANCE NO. 2tJ()7-0t!?
AN ORDINANCE AUTHORIZING THE PARTICIPATION OF THE CITY OF DENTON,
TEXAS IN THE ACTION STYLED CITY OF WEBSTER AND THE WEBSTER ECONOMIC
DEVELOPMENT CORPORATION Vs. CAROLE KEETON STRAYHORN, IN HER OFFICIAL
CAPACITY AS COMPTROLLER OF PUBLIC ACCOUNTS FOR THE STATE OF TEXAS,
CURRENTLY PENDING IN THE 261ST DISTRICT COURT OF TRAVIS COUNTY, AND
TO PURSUE SUCH OTHER REMEDIES AND MATTERS RELATING TO SALES TAX
ALLOCATION; AUTHORIZING THE EXPENDITURE OF FUNDS; AND PROVIDING AN
EFFECTIVE DATE.
WHEREAS, there is currently pending in the 261" District Court of Travis County an
action styled City of Webster and the Webster Economic Development Corporation vs. Carole
Keeton Strayhorn, in Her Official Capacity as Comptroller of Public Accounts for the State of
Texas (the "Pending Action"); and
WHEREAS, the City Council of the City of Denton, Texas hereby finds that it is in the
public interest and in the best interests of its citizens to participate in the Pending Action and/or
pursue other legal remedies for the benefit of the City arising out of similar sales tax allocation
issues that have adversely affected the City (the "Sales Tax Issues"); and
WHEREAS, the City Council further finds that it is in the public interest and best
interests of its citizens to participate therein in conjunction with other cities and political
subdivisions that are similarly affected; and NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION I. Thc findings and recitations contained in the preamble are incorporated
herein by reference.
SECTION 2. The City of Denton hereby authorizes the City Attorney, or his designee to
take what ever legal action on behalf of the City he deems necessary to pursue and protect the
City's interests with regard to the Sales Tax Issues, including (a) intervention in the Pending
Action, (b) pursuing other legal and administrative remedies he deems advisable to protect the
City's interests, (c) participating in a coalition of other similarly situated cities and political
subdivisions ("Coalition"), and (d) retaining such outside legal counsel and expert witnesses that
he may deem advisable.
SECTION 3. The City Attorney is dir,ected to participate in a Coalition in order to help
defray and share the costs of litigation and to further promote the public interest. Each member
of the Coalition shall be responsible for a percentage of the total legal costs and expenses based
on the following formula: Divide the City's total debited by the Comptroller by the Coalition's
total debited by the Comptroller to arrive at a percentage.
SECTION 4. The City Manager, or his designee is hereby authorized to make the
expenditures provided for in this Ordinance.
SECTION 5. This Ordinance shall become effective immediately upon its passage and
approval.
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PASSED AND APPROVED this the ~tJ - day of ;-:ebrl/Llfll ,2007.
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ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY: Q11?~ygd;)/~. /bd
APPROVED AS TO LEGAL FORM:
EDWIN M. SNYD R, CITY ATTORNEY
BY:
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