Leon Valley
TX

Resolution
17-012R

Discuss, Consider and Possible Action to Approve a Resolution Terminating the Leon Valley Economic Development Corporation (LVEDC)

Information

Department:AdministrationSponsors:
Category:Policy

Attachments

  1. Printout
  2. LVEDC Termination Power Point

Item Discussion

PURPOSE

 

To request approval of a resolution to terminate the Leon Valley Economic Development Corporation (LVEDC) for the following reasons: 1. Under Chapter 380 of the Texas Local Government Code, economic development corporation expenditures are limited to a select few permissible economic development expenditures. 2. In order to have increased flexibility to expend city sales taxes, Leon Valley citizens voted to approve expanding the use of the current sales & use tax; decreasing the Section 4B Sales and Use Tax at the Rate of 1/8% and adopting a general revenue sales and use tax at the rate of 1/8% for the purpose of economic and community development. (The vote was approximately 80% of citizens favoring the ballot language) 3.  Leon Valley citizens who attended the January 28th, 2017, Town Hall Meeting voted overwhelmingly to dissolve the Leon Valley Economic Development Corporation and to consider a future oversight committee for the funds. (The vote was approximately 84% favoring the dissolution and 81% favored the oversight committee). 

 

The State Comptroller shall honor the results of the November 8, 2016 election and the 4B Sales and Use Tax shall convert to a general revenue sales and use tax and be deposited into the City's general fund for economic and community development purposes.

 

SEE LEON VALLEY

 

Social Equity - It is equitable to utilize the funds as requested by the taxpayer. 

 

Economic Development - Upon an  appelate decision in favor of the LVEDC or  satisfaction of the LVEDC's current debts and obligations, the funds can still be used towards economic development and community development,

 

Environmental Stewardship - N/A
 

FISCAL IMPACT

 

The monthly 1/8 cent sales tax will go directly into the General Fund for the purposes of economic and community development upon approval and full satisfaction of the LVEDC's current debts and obligations. 

 

 

 

Document Comments

RECOMMENDATION

 

Staff recommends termination

Body

A RESOLUTION TERMINATING THE LEON VALLEY ECONOMIC DEVELOPMENT CORPORATION (LVEDC).

 

WHEREAS, Chapter 501, Subchapter I, Section 501.401(a)(2) of the Texas Local Government Code authorizes the governing body of the authorizing unit of an economic development corporation to terminate the existence of the corporation; and

 

WHEREAS, The City of Leon Valley, Texas as the authorizing unit of the Leon Valley Economic Development Corporation created said corporation by resolution of the City of Leon Valley Council, its governing body; and

 

WHEREAS, under Chapter 380 of the Texas Local Government Code, economic development corporation expenditures are limited to a select few permissible economic development expenditures; and

 

WHEREAS, in order to have increased flexibility to expend city sales taxes, Leon Valley citizens voted to approve expanding the use of the current sales & use tax; decreasing the Section 4B Sales and Use Tax at the Rate of 1/8% and adopting a general revenue sales and use tax at the rate of 1/8% for the purpose of economic and community development; and

 

WHEREAS, Leon Valley citizens voted overwhelmingly at the January 28th, 2017, Town Hall Meeting to dissolve the Leon Valley Economic Development Corporation; and

 

WHEREAS, the State Comptroller shall honor the results of the November 8, 2016 election, and the 4B Sales and Use Tax will convert to a general revenue sales and use tax to be deposited into the City of Leon Valley general funds; and

 

WHEREAS, it is now the desire of the City of Leon Valley Council to terminate the Leon Valley Economic Development Corporation;

 

NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LEON VALLEY, TEXAS, THAT:

 

SECTION 1.              The Leon Valley Economic Development Corporation is hereby terminated.

 

SECTION 2.              Any financial allocations, reallocations and/or budget adjustments related to the termination of the Leon Valley Economic Development Corporation and the reconciliation of its finances are hereby approved. The Director of Finance, may, subject to concurrence by the City Manager or the City Manager's designee, correct allocations, reallocations and adjustments to specific accounts as necessary to carry out the purpose of this Resolution.

 

SECTION 3.              This Resolution shall become effective immediately upon passage by four (4) or more affirmative votes of the entire City Council; otherwise, said effective date shall be ten (10) days from the date of passage hereof.

 

 

Meeting History

Apr 4, 2017 7:00 PM  City Council Regular Meeting

City Manager Kelly Kuenstler presented this item to request approval of a resolution to terminate the Leon Valley Economic Development Corporation (LVEDC) for the following reasons: 1. Under Chapter 380 of the Texas Local Government Code, economic development corporation expenditures are limited to a select few permissible economic development expenditures; 2. In order to have increased flexibility to expend city sales taxes, Leon Valley citizens voted to approve expanding the use of the current sales & use tax; decreasing the Section 4B Sales and Use Tax at the Rate of 1/8% and adopting a general revenue sales and use tax at the rate of 1/8% for the purpose of economic and community development; and 3. Leon Valley citizens who attended the January 28th, 2017, Town Hall Meeting voted overwhelmingly to dissolve the Leon Valley Economic Development Corporation and to consider a future oversight committee for the funds. (The vote was approximately 84% favoring the dissolution and 81% favored the oversight committee).

The State Comptroller shall honor the results of the November 8, 2016 election and the 4B Sales and Use Tax shall convert to general revenue sales and use tax and be deposited into the City's general fund for economic and community development purposes.

A motion was made by Council Member Benny Martinez and seconded by Council Member David Edwards to terminate the Leon Valley Economic Development Corporation as presented.

RESULT:ADOPTED [UNANIMOUS]
MOVER:Benny Martinez, Council Place 4
SECONDER:David Edwards, Council Place 1
AYES:David Jordan, David Edwards, Monica Alcocer, Benny Martinez, Belinda Ealy

Discussion