RES 2015-07TOWN OF TROPHY CLUB
RESOLUTION NO. 2015-07
A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB,
TEXAS, EXPRESSING OPPOSITION TO STATE LEGISLATION ENACTING A
CAP ON PROPERTY TAX REVENUES COLLECTED BY LOCAL
GOVERNMENTS DUE TO THE NEGATIVE IMPACT THAT WOULD RESULT
FROM THE LOSS OF LOCAL CONTROL OVER MANAGEMENT OF FISCAL
MATTERS AND THE LOSS OF LOCAL GOVERNMENT AUTHORITY TO
ADDRESS THE NEEDS OF ITS RESIDENTS; AND PROVIDING AN EFFECTIVE
DATE.
WHEREAS, bills have been introduced to cap the amount of property tax revenue
cities can collect each year in a misguided effort to reduce the property tax burden on
homeowners and businesses; and
WHEREAS, currently, if a Texas city increases property tax collections by more than
eight percent over the previous year, voters can petition for an election to rollback the
increase; and
WHEREAS, the existing eight percent "rollback rate" represents an effective
functioning model of limiting unchecked spending at the local level without impeding a
municipality's fundamental need to collect revenue to fund vital services; and
WHEREAS, bills have been introduced to replace that eight percent "rollback rate"
with a hard cap of four percent and require mandatory elections on an increase over four
percent — all with the false claim that this would provide property tax relief; and
WHEREAS, according to the state comptroller's latest survey of property tax rates in
1,002 cities in Texas, 67 percent of cities raised their property taxes by less than four
percent from 2012 to 2013 and 37 percent of cities actually reduced their property taxes;
and
WHEREAS, that means property owners in at least 669 Texas cities would have
seen no reduction in their city property taxes if the four percent cap had been in effect; and
WHEREAS, while the savings to individual taxpayers in Trophy Club for FY 2014-15
would only represent $1.43 per month, it would cost the Town of Trophy Club $56
thousand for the past fiscal year and if a four percent cap were in place it would result in a
reduction in Town's ability to provide exemplary services to its citizens; and
WHEREAS, if this calculation were computed for the previous ten years, the
cumulative impact would have been a loss of $198 thousand to the Town of Trophy Club;
and
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WHEREAS, this legislation will force local governments to defer critical maintenance
expenses for infrastructure assets such as facilities and streets, which will result in a more
rapid decline of city infrastructure and ultimately cause increase cost of replacement; and
WHEREAS, property taxes will not be reduced through revenue caps; instead, costs,
and the property taxes that pay for them, will be shifted to support additional debt that will
have to be issued to rebuild this infrastructure. Shifting taxes to pay debt is not a tax cut
and will cost taxpayers more in the future since communities will now be required to pay the
interest on these costs, as well; and
WHEREAS, revenue caps will impair the use of local economic incentives driving
away the job growth and businesses that have helped to make Texas the economic
development leader in the nation; and
WHEREAS, cities collect just 16 percent of the property taxes levied in Texas, and
most of the property taxes paid by Texans (55 percent) go to school districts; and
WHEREAS, according to the comptroller's report, the total amount of property taxes
collected by cities rose by 3.61 percent between 2012 and 2013, while school district tax
collections rose by more than twice that rate or 7.72 percent; and
WHEREAS, local governments are the closest to the people they represent and the
state usurping that authority decreases taxpayers input on how their money is spent in their
community; and
WHEREAS, local governments are elected by the people to govern and exercise
local control, and home rule municipalities are authorized by the Texas Constitution to
regulate fiscal matters; and
WHEREAS, local government officials are held accountable by their constituents
through the election process, and the authority of the local government should not be
eroded by State regulations that disregard the individual fiscal needs of the local
community.
NOW THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN
OF TROPHY CLUB, TEXAS:
1. That all of the above recitals are true and correct;
2. That the Town Council of the Town of Trophy Club, Texas, is OPPOSED to the
legislative imposition of a revenue cap and legislative interference with local
services and local government control; and
3. That imposing a revenue cap on cities: (a) does not provide meaningful tax relief; (b)
robs municipalities of the ability to meet local needs; (c) supersedes the level of
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government that is closest to the people; and (d) usurps local authority granted by
the Texas Constitution and state law.
PASSED AND APPROVED by the Town Council of the
this 10th day of March 2015.
�...
C. Nick Sanders, Mayor Gre am;
/ 1
Tim Kurtz, Counci ember
ATTEST: O
e YAPS
Holly Fim s, Town Secretary
Town of Trophy Club, Texas
Town of Trophy Club, Texas on
nt, Mayor Pro Tem
Council Member
hilip Sh , Council Member
�G�APPROVED AS TO FORM:
RES 2015-07
Patricia A. Adams, Tcwn Attorney
Town of Trophy Club, Texas