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Regular City Council Meeting May 12, 2008 Page 6 McIlyar for his recommendation. Mr. McIlyar recommended that City Council not adopt the initiative petition ordinance as submitted, because of the omissions of several important provisions and clauses from Section 11.261 of the Tax Code. He said the omissions could make the ordinance invalid and make it difficult to implement. Based on the current taxable value, Gene Anderson reminded City Council that the economic impact of the tax freeze to the City over the next ten years would be approximately 1.8 million dollars in actual tax revenue. Council discussed the options, and opinions varied as to whether or not to adopt the ordinance as written and amend at a later date; whether or not to deny the ordinance; or whether or not to adopt their own ordinance. Council Member Biard said he thought they should have discussion about development of a plan prior to taking action on this issue. Mayor Freelen said they should include in that discussion the $20,000.00 tax exemption, and the financial impact on the City and taxpayers. Mayor Freelen asked Gene Anderson to provide Council with financial information reflecting different tax exemption amounts and the financial impact of those various amounts. A Motion to table this item was made by Council Member Biard and seconded by Council Member Fisher. Motion carried 5 ayes - 1 nay, with Council Member Gray casting the dissenting vote. 19. Deliberate and act on issuance of subpoenas related to an investigation regarding initiative petitions and sworn affidavits filed March 18, 2008, pursuant to Section 34 ofthe City Charter of the City of Paris, Texas. Council Member Wilson said he would not request or make a motion to subpoena anyone before the City Council. He said he had requested this agenda item, because he believed Mr. Clifford committed perjury by swearing to false affidavits concerning the signatures of the water and tax freeze petition. Council Member Wilson said there were several people on Mr. Clifford's list who reported that he did not present the petition to them, did not witness their signature nor was he present in the building when they signed the petition. He said he had verified the allegations with people that he knew personally, and confirmed that the reports were true. Council Member Wilson said that Section 102 of the Paris City Charter required that the circulator witness the signatures. Council Member Wilson said he wanted this matter investigated by a police agency or the appropriate agency. A Motion to investigate the allegations surrounding the petition process was made by Council Member Wilson and seconded by Council Member Brown. Motion failed due to lack of a majority vote, 3 ayes - 3 nays, with Council Members Fisher, Gray and Biard casting the dissenting votes. 20. RESOLUTION NO. 2008-039: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, AUTHORIZING THE CITY MANAGER TO EXECUTE OF AN IRREVOCABLE STANDBY LETTER OF CREDIT TO THE OFFICE OF RURAL %