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13-Ordinance calling Special Election-abolish ed sale tax and adopt street repair taxItem No. 13 memorandum TO: City Council John Godwin, City Manager FROM: Stephanie H. Harris, City Attorney SUBJECT: Ordinance calling special election to abolish the sales and use tax for economic development and to adopt a sales and use tax for street repair and maintenance DATE: July 19, 2017 BACKGROUND: At the June 26, 2017 meeting, Council passed a motion "to have a special election in November to ask the citizens if they wanted to terminate the quarter cent economic development tax and adopt a quarter cent municipal sales and use tax for street maintenance." In consultation with Leonard Schneider of Liles Parker, PLLC, Kingwood, Texas, I have drafted the attached Ordinance calling the special election, setting forth the proposition and ballot language, and making other provisions related to the special election. The Texas Legislature recently passed a bill, effective immediately, which allows for the repeal or reduction of one sales tax and the adoption of another sales tax to be presented to the voters as a single proposition, thus avoiding the potential loss of the quarter cent sales tax to another governmental entity. It also avoids the situation in which a proposition to repeal the Type A tax fails but the street tax proposition passes, which would put the City over the legal allowable rate for sales tax collections. Should the combined proposition pass, the City would notify the Comptroller's office of the results but tell the Comptroller to not implement the street maintenance tax until further notice from the City that the PEDC debt has been extinguished. This means the sales and use tax for the PEDC will continue to be collected after the election in an amount sufficient until all the PEDC financial obligations were paid. Thereafter the City would notify the Comptroller's office that the Type A sales and use tax should stop and the collection of the street maintenance tax begin. It is possible that this process could take several years, but the Comptroller's office has confirmed that this is permissible. STATUS OF ISSUE: An ordinance calling the election must be passed prior to Monday, August 21St. BUDGET: Cost of the special election, estimated by the City Clerk to be $12,373.99. RECOMMENDATION: Adopt ordinance calling for November 7, 2017 to abolish the quarter cent economic development sales tax and to adopt a quarter cent street maintenance tax, and making further provisions related to same. CERTIFICATE REGARDING ADOPTION OF AN ORDINANCE THE STATE OF TEXAS LAMAR COUNTY CITY OF PARIS I, the undersigned City Clerk of the City of Paris, Texas, hereby certify as follows: 1. The City Council convened in a REGULAR MEETING ON THE 24TH DAY OF JULY, 2017, at the regular designated meeting place, and the roll was called of the duly constituted officers and members of the Council, to wit: Steven J. Clifford, M.D., Councilmember District 4 and Mayor Aaron Jenkins, Councilmember District 1 Billie Sue Lancaster, Councilmember District 2 Bill Trenado, Councilmember District 3 Linda Su Knox, Councilmember District 5 Cleonne Holmes Drake, Councilmember District 6 and Mayor Pro Tern Paula Portugal, Councilmember District 7 Janice Ellis, City Clerk and all of the persons were present, except the following absentee: , thus constituting a quorum. Whereupon, among other business, the following was transacted at the Meeting: a written ORDINANCE CALLING FOR A SPECIAL SALES TAX ELECTION AND PROVIDING NOTICE OF THE SPECIAL ELECTION was duly introduced for the consideration of the Council. It was then duly moved and seconded that the Ordinance be passed; and, after due discussion, the motion, carrying with it the passage of the Ordinance, prevailed and carried by the following vote: AYES: All members of the Council shown present above voted "Aye," except as provided below: NOES: ABSTAIN: 2. A true, full and correct copy of the aforesaid Ordinance passed at the Meeting described in the above and foregoing paragraph is attached to and follows this Certificate; that the Ordinance has been duly recorded in the Board's minutes of the Meeting; that the above and foregoing paragraph is a true, full and correct excerpt from the Board's minutes of the Meeting pertaining to the passage of the Ordinance; that the persons named in the above and foregoing paragraph are the duly chosen, qualified and acting officers and members of the Council as indicated therein; that each of the officers and members of the Council was duly and sufficiently notified officially and personally, in advance, of the time, place and purpose of the aforesaid Meeting, and that the Ordinance would be introduced and considered for passage at the Meeting, and each of the officers and members consented, in advance, to the holding of the Meeting for such purpose; that the Meeting was open to the public and public notice of the time, place and purpose of the Meeting as given, all as required by Chapter 551, Government Code. SIGNED this, the 24th day of July, 2017 City Clerk ORDINANCE NO. 2017- AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, CALLING A SPECIAL ELECTION RELATING TO THE ABOLITION OF THE SALES AND USE TAX FOR ECONOMIC DEVELOPMENT AND THE ADOPTION OF A SALES AND USE TAX FOR THE REPAIR AND MAINTENANCE OF STREETS IN THE CITY OF PARIS, TEXAS; ESTABLISHING THE DATE OF THE ELECTION; PROVIDING FOR EARLY VOTING; DESIGNATING POLLING PLACES; APPOINTING ELECTION OFFICIALS; PROVIDING FOR NOTICE OF THE ELECTION; AUTHORIZING AN AGREEMENT WITH THE LAMAR COUNTY ELECTIONS ADMINISTRATOR FOR ELECTION SERVICES; APPOINTING AN EARLY VOTING BALLOT BOARD; FINDING AND DETERMINING THAT THE MEETING AT WHICH THIS ORDINANCE WAS PASSED COMPLIED WITH THE TEXAS OPEN MEETINGS ACT; MAIONNG OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, pursuant to Section 321.409 of the Tax Code, as amended, and other related statutes, the City Council of the City of Paris, Texas (the "City") is authorized to call an election in order to submit to the voters of the City a combined municipal sales tax proposition; and WHEREAS, this City Council deems it advisable to call the special election hereinafter ordered; and WHEREAS, it is hereby officially found and determined that holding the hereinafter called election on the date set forth below is in the public interest; and that the meeting was open to the public, and public notice of the time, place and purpose of the meeting was given, all as required by Chapter 551, Texas Government Code. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS: Section 1. The findings set out in the preamble to this ordinance are hereby in all things approved and adopted. Section 2. A special election shall be called for and held on November 7, 2017, between the hours of 7:00 a.m. and 7:00 p.m., at which election the following PROPOSITION shall be submitted in accordance with law: The abolition of a sales and use tax for the promotion and development of new and expanded business enterprises at the rate of one - fourth of one percent within the City of Paris, Texas as permitted and authorized under the Local Government Code, Chapter 504, Type A Corporations, and the adoption of a local sales and use tax in the City of Paris, Texas at the rate of one - fourth of one percent to provide revenue for maintenance and repair of municipal streets which will not take effect until the debt of the Paris Economic Development Corporation is extinguished Section 3. OFFICAL BALLOT. The official ballots for the special election shall be prepared in accordance with the Code so as to permit the electors to vote "FOR" or "AGAINST" the aforesaid PROPOSITION, with the ballots to contain such provisions, markings and language as required by law, and with such PROPOSITION to be expressed substantially as follows: The abolition of a sales and use tax for the promotion FOR and development of new and expanded business enterprises at the rate of one - fourth of one percent and AGAINST the adoption of a local sales and use tax in the City of } Paris, Texas at the rate of one - fourth of one percent to provide revenue for maintenance and repair of municipal streets. Section 4. All persons legally qualified to vote according to the laws of the State of Texas and the Charter of the City of Paris, Texas, shall be entitled to vote in the election. Section 5. The election shall be held and conducted and the returns thereof made in accordance with the Texas Election Code, the Charter of the City of Paris, Texas, and all other applicable statutes of the State of Texas and ordinances and resolutions of the City of Paris, Texas. The election materials enumerated in Sections 272.001, et seq., Texas Election Code, shall be printed and furnished in both English and Spanish for use at each polling place on election day and for early voting. Section 6. Voting in the election on November 7, 2017 shall be conducted for all voters at the following polling places: Voting Locations: Lamar County Courthouse Annex Old County Courtroom 231 Lamar Avenue Paris, Texas Red River Valley Fairgrounds Event Center 1875 Fitzhugh Street Paris, Texas Section 7. The following persons are hereby appointed and named as the election officers for the election: Judges and Alternate Judges: Lamar County Courthouse Annex Dorothy Ritchey, Election Judge Eva Easley, Alternate Judge Red River Valley Fairgrounds Thelma Dangerfield, Election Judge Paula Henderson, Alternate Judge Section 8. Early voting shall be conducted by personal appearance and by mail at: Location to Vote In Person Address to Request Ballot by Mail Lamar County Courthouse Annex Tricia Johnson Old County Courtroom Lamar County Elections Administrator 231 Lamar Avenue 231 Lamar Avenue Paris, Texas Paris, Texas 75460 The early voting period for the election is October 23, 2017 through November 3, 2017, except no early voting will be held on Saturdays, Sundays and legal state holidays during that period. On October 23, 2017 and October 24, 2017, the hours designated for early voting by personal appearance shall be from 8 am. to 8 p.m. On all other days of early voting, the hours designated for early voting by personal appearance shall be from 8 a.m. to 5 p.m. The Early Voting Clerk shall keep said early voting place open during such hours for early voting by personal appearance. The Early Voting Clerk for the election shall be Tricia Johnson. Section 9. In accordance with provisions of the Texas Election Code, this Ordinance calling the election (the "Ordinance "), as it may be modified in a manner that is consistent with the election notice requirements applicable to the election, shall serve as proper notice of the election (the "Notice of Election "). The Council hereby directs the City Clerk to post and publish the Notice of Election and the Ordinance as follows: (a) The Notice of Election shall be published in both English and Spanish on the same day in each of two (2) successive weeks in a newspaper of general circulation in the City, the date of the first publication to be not more than thirty (30) or less than fourteen (14) days prior to the date set for the Election; (b) The Ordinance shall be posted on the bulletin board used for posting notices of meetings of the City Council, and at three other places in the City, not later than the twenty -first (21st) day prior to the date set for the Election; (c) The Ordinance shall be posted on election day and during early voting by personal appearance, in a prominent location at each polling place; and (d) The Ordinance shall be posted during the 21 days before the date of the election, on the City's Internet website. A substantial copy of this Ordinance, with such omissions allowed by law, shall serve as a proper notice of the election. The City Clerk is hereby authorized and directed to publish and post the required notices in the manner and for the time periods required by law. Section 10. Tricia Johnson is hereby appointed to serve on the date of the election as the presiding judge of a three (3) member Early Voting Ballot City Council, the other two members of which are to be appointed by said judge in accordance with the provisions of Chapter 87 of the Texas Election Code, as amended. Section 11. The City Manager or the Mayor is hereby authorized and directed to execute an agreement with the Lamar County Elections Administrator, as approved by the City Attorney, to allow the Lamar County Elections Administrator to provide services in regards to the November 7, 2017 election. The Mayor, City Clerk and City Attorney are authorized to take any further action required by law in conjunction with the election herein ordered and are hereby authorized to execute and/or issue, for an on behalf of the City, such orders, documents and forms as may, from time to time, be promulgated by the Secretary of State of the State of Texas in conjunction with the election herein ordained. Section 12. In all respects, the election shall be conducted in accordance with the Code. Pursuant to the federal Help America Vote Act ( "HAVA ") and the Code, at each polling place there shall be at least one voting system that is equipped for disabled individuals, and each such voting system shall be a system that has been certified by the Texas Secretary. of State as compliant with HAVA and the Code. Section 13. The meeting at which this Ordinance was passed was conducted in strict compliance with the Texas Open Meetings Act, Texas Goverment Code Chapter 551. Section 14. This Ordinance shall be effective immediately from and after its passage. PASSED AND APPROVED this 24th day of July, 2017. Steven J. Clifford, M.D. Mayor ATTEST: Janice Ellis City Clerk APPROVED AS TO FORM: Stephanie H. Harris City Attorney