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HomeMy WebLinkAboutRES 2004-009 RESOLUTION NO. 2004-09 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS OPPOSING ANY SCHOOL FINANCE OR TAX SYSTEM REFORMS THAT WOULD NEGATIVELY AFFECT CITY REVENUES AND ADVERSELY IMPACT THE CITY PROVIDING ESSENTIAL CITY SERVICES TO ITS RESIDENTS; AND PROVIDING AN EFFECTIVE DATE WHEREAS, it is likely that the Texas Legislature will address school finance and tax system reforms in the near future; and WHEREAS, during these deliberations by the Texas Legislature, proposals to limit the ability of cities to collect property taxes and sales taxes are likely to be offered by some members of the Legislature and the Governor; and WHEREAS, restrictions of city taxation do not address the real issue of how to fund education in Texas; and WHEREAS, all Texas cities combined collect 15.3% of all property taxes collected in the State of Texas, while schools collect more than 60%; and WHEREAS, between 1985 and 2002, the municipal share of all property tax revenue fell from 20.3% to 15.3%; and WHEREAS, adjusted for inflation, municipal property tax revenues went up by only 37% between 1985 and 2002, while population grew by 33%, demonstrating that growth in municipal property tax levied roughly matched population growth; and WHEREAS, property tax represents 30% of the City's annual budget and is an important revenue to build basic infrastructure improvements, to ensure public safety through police and fire departments, and to provide numerous essential services for City residents; and WHEREAS, Texas cities engage in numerous economic development activities that produce jobs and revenue for the City, the surrounding geographical area, and the entire State of Texas; and WHEREAS, cities must continue to meet the challenges of homeland security and compliance with state and federal mandates, many of which are unfunded mandates; and WHEREAS, Texas cities have shown over the years that they are fiscally responsible and good stewards of taxpayers' money; and WHEREAS, the City of Grapevine has dropped its tax rate by 12.4 cents since 1985 to help offset increases in valuations to our citizens; and WHEREAS, efforts to limit the ability of cities to collect sales and property tax revenues or to set tax rates would have severe negative impacts on City services, City employees, economic development efforts, and ultimately citizens of the State of Texas. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS: Section 1 That the City Council of the City of Grapevine opposes all school finance or tax reform efforts by the Texas Legislature that negatively impacts the ability of the City of Grapevine to provide essential services, conduct economic development activities and ensure public safety by limiting our ability, beyond the provisions of current law, to collect property tax or sales tax revenues. Section 2. That this resolution shall become effective from and after the date of its passage. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS on this the 23rd day of March, 2004. APPROVED: William D. Tate Mayor ATTEST: Lin a Huff 77T City Secretary APPROVED AS TO FORM: Stan Lowry City Attorney RES. NO. 2004-09 2