Agenda Packet TC 11/16/2009 - Supplement
November 6, 2009
Number 25
COURT UPHOLDS SALES TAX “LOOK-BACK”
The Austin Court of Appeals ruled on October 2 that cities don’t have a vested right in
local sales tax distributions until four years have passed. Accordingly, the state
comptroller may continue to go back for up to four years to redistribute or refund city
sales taxes.
In Combs v. City of Webster, several cities argued that the four-year “look-back”
provision in the Tax Code, which can result in the redistribution of millions of dollars in
mistakenly allocated sales taxes from one city to another, violates the due course of law
and the takings provisions of the Texas Constitution. The court disagreed, reasoning that
until the four-year statute of limitations has passed, cities merely have a “contingent” or
“potential” right to keep the sales tax revenue that has been distributed to them. This is
true even if cities have long since spent the revenue under previous budgets.
The case arose out of a dispute over allocation of sales tax revenue between so-called
“warehouse cities” and “storefront cities”. Although that allocation issue was clarified by
the passage of S.B. 636 earlier this year (read a description of the bill here at
http://www.tml.org/leg_updates/legis_update070209g_addenda.asp), the ruling of the
case with respect to the “look-back” will affect all other reallocation decisions for the
foreseeable future.
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TML PRESENTS AWARDS TO FOUR LAWMAKERS
During the recent Texas Municipal League Annual Conference in Fort Worth, the League
recognized four lawmakers who have consistently supported cities and defended
municipal authority.
Senator John Carona (R-Dallas) and Representative Rene Oliveira (D-Brownsville) each
received a Legislator of the Year Award for their efforts during the 81st session of the
Texas Legislature.
First elected to the Texas Senate in 1996 after serving three terms
in the Texas House of Representatives, Senator Carona is the
Chairman of the Senate Transportation and Homeland Security
Committee and serves on three other Senate committees
(Criminal Justice, Jurisprudence, and State Affairs). Prior to
being elected to the Senate, Senator Carona served three terms in
the Texas House of Representatives. During the 81st regular
session, Senator Carona led the fight to enact the Local Option
Transportation Act, an initiative that would have authorized local
option, vote-approved funding mechanisms for transportation
projects. He is a consistent advocate for local control.
Representative Rene Oliveira (D-Brownsville) was first
elected to the Texas House of Representatives in 1981 and
has served 14 terms. He is the Chairman of the House
Ways and Means Committee and serves on the powerful
House State Affairs Committee. During the 81st regular
session, Representative Oliveira passed legislation that
extended the authority of cities to grant tax abatements,
without which tax abatement authority would have expired
this year. He also led the House Ways and Means
Committee in the study and ultimate passage of appraisal
reform legislation.
The League also presented Distinguished Legislative Service Awards
to Senator Wendy Davis (D-Fort Worth) and Representative Carol
Alvarado (D-Houston) for their service to Texas cities during the 81st
session of the Texas Legislature.
Senator Davis is serving in her first term in the Texas Senate after
serving as a member of the Fort Worth City Council. She is a
member of four Senate committees: Education, International
Relations and Trade, Transportation and Homeland Security, and
3
Veterans Affairs and Military Installations. During the 81st regular session, Senator
Davis passed important legislation related to informing voters about municipal ballot
measures. She is a consistent advocate for local control.
Representative Alvarado was elected to the Texas House of
Representatives in 2008 after serving on the Houston City
Council. While a Houston councilmember, Ms. Alvarado
served as president of the League. She is a member of three
House committees: Urban Affairs, Land and Resource
Management, and Redistricting. During the 81st regular
session, Representative Alvarado worked to promote and
protect municipal authority in the face of numerous
attempts to erode local control.
We hope that city leaders across Texas will express their
appreciation to these outstanding leaders for their
dedication to Texas cities.
MUNICIPAL COST INFLATION RISES
SLIGHTLY FOR THE MONTH
The Municipal Cost Index (MCI), developed exclusively by American City and County
magazine, shows the effect of inflation on the cost of providing municipal services. The
MCI is used to study price trends, make informed government contract decisions, and
facilitate sound budget planning.
According to American City and County magazine, the MCI for October was 206.5, an
increase of 0.5 percent over last month’s MCI, but still a decline of 3.9 percent over the
previous 12 months. The October 2008 MCI was 214.8.
JURY FINDS FOR CITIES AGAINST
ONLINE HOTEL BOOKERS
A federal jury has ruled in favor of San Antonio and 172 other Texas cities in their class
action lawsuit against online hotel booking companies including Expedia.com,
4
Hotels.com, Hotwire.com, Priceline.com, and others. The jury awarded $20.6 million to
the cities based on their argument that the online companies failed to remit city hotel
occupancy tax on the “markup” difference between the amount the companies paid for
the rooms and the price at which they sold the rooms to consumers. Punitive damages
were not awarded.
An appeal by the companies is likely. The companies argue that they don’t “control”
hotel rooms, which is required before the local hotel occupancy tax is due.
TML member cities may use the material herein for any purpose.
No other person or entity may reproduce, duplicate, or distribute any part
of this document without the written authorization of the
Texas Municipal League.
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17,195
MINUTES OF REGULAR SESSION FOR THE
ECONOMIC DEVELOPMENT CORPORATION 4B BOARD
LOCATION: 100 MUNICIPAL DRIVE, TROPHY CLUB, TEXAS
Monday, October 12, 2009
STATE OF TEXAS
COUNTY OF DENTON
6:30 PM
The Economic Development Corporation 4B of the Town of Trophy Club, Texas, met in Regular
Session on October 12, 2009. The meeting was held within the boundaries of the Town and was
open to the public.
EDC 4B DIRECTORS PRESENT:
James Hicks
Dave Glaser
Dan Bishop
President
Vice President
Director
Director
Director
Director
left at 7:50 p.m.
Dean Murray
Nick Sanders
Rebecca Shuman
Glenn Strother EDC 4B Council Liaison
EDC 4B DIRECTORS ABSENT:
Zachary Jeffery Director
STAFF AND GUEST(S) PRESENT:
Stephen Seidel Assistant Town Manager
Shannon DePrater Deputy Town Secretary I RMO
Jason Claunch Catalyst Commercial
Call to order and announce a quorum.
President Hicks, noting a quorum of EDC 4B, called the regular session to order at 6:35 p.m.
President Hicks welcomed Nick Sanders and Dean Murray to the Board.
REGULAR SESSION
1. Update presentation from Jason Claunch from Catalyst Commercial.
Jason Claunch addressed the Board and gave an update on the samplings collected. Catalyst
Commercial has reviewed all retail for the surrounding cities and is now able to better analyze
who would be the optimum retailers for the Town. Claunch mentioned there are 454 possible
prospects for the Regency Center and 485 possible prospects for the Larry Stewart Tract.
Stephen Seidel gave a brief project update for the new directors.
Discussion ensued regarding the inclusion of updated demographics.
President Hicks moved agenda item #3 forward:
3. Update from Director Glaser regarding activities and plans for Trophy Club Park.
Director Glaser gave an update on Trophy Club Park projects. The Parks & Recreation Board is
working on creating a new concept plan for Trophy Club Park to take to the Corps of Engineers.
Glaser asked the Board to be aware of the Parks & Recreation Board projects. Glaser asked if
EDC4B Page 1 of 3
October 12,2009 Regular Session
the Board wanted to include any of these projects in the material for ISCS. Seidel said that the
information could be included on the thumb drive that will be handed out at the Conference.
2. Commercial Property Update:
a. Trophy Club Commons
b. Village Center
c. 26-Acre Tract
d. Trophy Wood Business Center
Seidel updated the Board on the Commercial Property within the Town of Trophy Club and
answered questions from the Board.
4. Take appropriate action on the nomination and appointment of the following
Officer positions:
a. President
b. Vice-President
c. Treasurer
d. Secretary
Director Sanders nominated Director Hicks as President. Director Shuman called for the vote;
nomination carried unanimously.
Director Shuman nominated Director Glaser as Vice-President; nomination carried unanimously.
Director Shuman asked to combine Treasurer and Secretary.
Director Sanders nominated Director Murray as Treasurer; nomination carried unanimously.
Director Shuman nominated Director Murray as Secretary; nomination carried unanimously.
5. Discuss Director attendance at the November ICSC Convention.
President Hicks and Director Sanders will be attending. Director Murray will check his schedule;
if he cannot attend, Council member Strother will attend.
6. Discuss and take appropriate action regarding the attendance of 2009 Economic
Development Sales Tax Seminars.
President Hicks would like to have Director Jeffery attend. Director Shuman would like to attend
a refresher course. Director Murray will check his schedule.
This agenda item will be brought back at the January 2010 meeting.
7. Discuss and take appropriate action regarding EDC 4B Existing Business
Stimulus Project.
Stephen Seidel updated the Board on Staffs progress of initializing this project. Seidel also
updated the new Board members on this project.
Director Murray will work with Staff on the coupon project.
8. Discuss and take appropriate action to approve the September 14, 2009 Regular
Session Minutes.
Director Shuman moved to approve the September 14, 2009 Regular Session Minutes as
presented. Director Bishop seconded; motion carried unanimously.
EDC4B Page 2 of 3
October 12, 2009 Regular Session
9. Discuss and take appropriate action to approve monthly Financials:
a. July 2009
b. August 2009
c. September 2009
Director Sanders moved to approve the Financials as presented. Director Shuman seconded;
motion carried unanimously.
Director Sanders asked for a yearly/monthly comparison report.
10. Future Agenda Items.
Director Sanders asked that a discussion and recommendation to council item be added
regarding an amendment to the PD that includes the Village. Director Sanders would like to
include drive-thru restaurants and asked the Board to request an amendment be made so that
drive-thru restaurants could be approved with specific regulations. Seidel mentioned that an
amendment is already being discussed.
Director Sanders asked for details on TxDOT signage and costs be added.
Director Shuman asked about inviting Councilor having a "President's Council" to meet with
Ron Holifield so the Board/Commission Presidents/Chairs can get to know each other and also
to discussion current projects of each board.
Director Shuman would like to discuss branding again including the Clock Tower and
maintenance there of.
Director Shuman requested an update from Council Liaison Strother on the Council's Master
Plan.
Adjourn
Director Sanders moved to adjourn at 9:12 p.m. Director Shuman seconded; motion carried.
Dean Murray, Treasurer/Secretary
EDC4B Page 3 of 3
October 12, 2009 Regular Session