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1996-129-RES WHEREAS, THE 4A AND 4B SALES TAX CORPORATIONS HAVE PROVIDED HUNDREDS OF TEXAS CITIES A POWERFUL TOOL RESOLUTION NO. 96-129 WHEREAS, the 4A and 4B sales tax corporations have provided hundreds of Texas cities a powerful tool for improving the quality of life and financial security of their citizens through economic development; and, WHEREAS, existing laws governing the use of sales tax revenues not only uphold local control but sufficiently restrict the use of non-economic development related projects; and, WHEREAS, legislation has been proposed to further restrict uses and to increase state controls and reporting requirements over the 4A and 4B sales tax and municipal tax abatement authority; and, WHEREAS, the implementation of these restrictions, rules, and reporting requirements would erode local control and home-rule authority in the area of economic development, create inequities among Texas cities, and decrease the ability of Texas communities to compete with other states for development projects; and, WHEREAS, a coalition of sales tax and sales tax eligible cities, known as the Coalition for Community and Economic Development (CCED), has been formed for the purpose of working cooperatively to defend the sales tax and other measures utilized by Texas cities to encourage economic development in their communities, and it is deemed to be in the best interests of the citizens of Paris that the City of Paris join said coalition and appoint Eric S. Clifford to serve as a member of the Steering Committee for the same for a term of one (I) year, beginning November 11, 1996, and ending November 10, 1997; and, WHEREAS, the form of the lnterlocal Agreement for such participation, attached hereto as Exhibit A, should, in all things, be approved, and the Mayor of the City of Paris, Eric S. Clifford, should be authorized to execute the same; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS: I. That the City of Paris supports the creation of and authorizes participation in a coalition of sales tax and sales tax eligible cities to work cooperatively to defend the sales tax and other measures utilized by Texas cities to encourage economic development in their communities. 2. That the purposes and goals of the coalition are recognized as follows: a. To actively oppose legislation that reduces local control of the 4A and 4B sales tax receipts; b. To monitor tax abatement legislation and oppose any further restriction upon municipal sales tax authority; and, c. To identify and promote "best practices" resulting from economIc development experiences. 3. That the City of Paris supports the following strategies for the coalition: d. Adopt a position paper; e. Attempt to encourage state-wide organizations such as TML and TEDC to either support the coalition's activities or be neutral on 4A or 4B legislation; and, f. Hire a legislative liaison. BE IT FURTHER RESOLVED, that the form of the lnterlocal Agreement for participation in the Coalition for Community and Economic Development (CCED), attached hereto as Exhibit A, be, and the same is hereby, approved; and, BE IT FURTHER RESOLVED, that the Mayor of the City of Paris, Eric S. Clifford, be, and he is hereby, authorized and directed to execute, on behalf of the City of Paris, the Interlocal Agreement under the terms and conditions and in the form shown in Exhibit A, attached hereto; and, BE IT FURTHER RESOLVED, that Eric S. Clifford, be, and he is hereby, appointed to serve as a member of the Steering Committee for the Coalition for Community and Economic Development (CCED) for a term of one (I) year, beginning November 11, 1996, and ending November 10, 1997. ATTEST: ~b\~~~~,~ ~~~~ Mattie Cunningham, City Clerk INTERLOCAL AGREEMENT WHEREAS, the City of Paris desires to enter into an interlocal contract (the Agreement) to perform governmental functions in which the contracting parties are mutually interested; and, WHEREAS, Chapter 791 of the Texas Government Code, as amended, authorizes such Agreement; and, WHEREAS, each of such cities has heretofore authorized, by an election, the collection of additional sales taxes for funding of economic development corporations under the provisions of Article 5190.6, either Sections 4A or 4B, or both Sections 4A and 4B, of the Development Corporation Act of 1979, as amended; and, WHEREAS, proposals have been made in recent months relative to legislation to be introduced to the 75th Legislature of the State of Texas in January, 1997, which involves restrictions on sales tax corporations and tax abatements, among other things; and, WHEREAS, the contracting parties believe that some of such legislative proposals could be damaging to the economic development of small and medium size cities and desire to form a coalition to study such proposals; employ a legislative consultant to develop the positions of such cities with regard to such proposals; and, if necessary, to furnish information and testimony relative to such legislative proposals; and, WHEREAS, the contracting cities also desire to create an administrative agency and provide for the organization, operation, funding, and other responsibilities of such coalition in order to further the common purposes outlined herein for the benefit of each of the contracting parties; EXHIBIT A NOW, THEREFORE, the contracting parties agree as follows: 1. The contracting parties are the cities of Paris, Allen, Frisco, McKinney, Wylie, Duncanville, DeSoto, Lancaster, and Cedar Hill. Additional parties may become contracting parties by separate instrument referencing this Agreement whereby they agree to become parties hereto . 2. There is hereby created a Coalition For Community and Economic Development (CCED). The contracting parties and any additional parties made contracting parties as provided herein shall be members of the CCED. The purpose of the CCED is to work cooperatively to defend the additional sales tax and other measures utilized by Texas cities to encourage economic development in their communities. 3. There is hereby created a Steering Committee for the CCED. The Steering Committee shall consist of one representative from each of the contracting cities, including any additional contracting cities which become parties to this Agreement. The governing body of each contracting city shall select a member of the governing body, by official action, to serve on the Steering Committee of the coalition. The City Manager and Economic Development Director of each city shall be ex-officio members of the Steering Committee, shall provide information, advice, administrative assistance, and other support to the Steering Committee, but shall have no vote on matters coming before the Steering Committee. 4. The costs incurred by the CCED in performing the functions outlined in this Agreement shall be paid by the contracting cities. Each contracting city agrees to pay a membership fee to the CCED to defray the costs of operation. The membership fee shall be based upon the population of the contracting cities as determined by the current TML "Directory of Texas City 2 Officials" publication. The membership fee for each contracting city shall be determined by using the following formula, to wit: Population of City Membership Fee Under 2,500 2,500 - 5,000 5,001 - 10,000 10,001 - 20,000 20,001 - 40,000 40,001 or larger $50.00 per 1,000 population or part thereof $300.00 $600.00 $1,200.00 $2,400.00 $4,800.00 Should the members of the Steering Committee from only Initiating Cities conclude that additional funds are needed from the Initiating Cities, a special assessment may be made by these members of the Steering Committee, and such special assessment shall be paid by the contracting cities who are classified as Initiating Cities. For the purpose of determining which city or cities shall be obligated to pay such special assessment the contracting cities shall be divided into two classes. Those cities initially signing this agreement shall be known as Initiating Cities. Cities which subsequently join the CCED may elect to be classified as an Initiating City. Cities subsequently joining the Coalition which do not elect to be classified as an Initiating City will be classified as a Joining City. Only the Initiating Cities shall be liable for the Special Assessment. Any such Special Assessment shall be charged to each of the Initiating Cities in proportion to its population. Any surplus funds remaining after the legislative session has been concluded shall be returned in the same percentage to the contracting Cities or, in the discretion of the Steering Committee, may be retained and used during the term of this agreement. 5. The primary purpose of the CCED it to monitor and oppose, if necessary, potential 3 legislation that would adversely affect the future use of sales tax revenue to support business development in the contracting cities. The people of each of the contracting cities have heretofore adopted, by election, an economic development sales tax of up to one-half cent and have created corporations under the Development Corporation Act of 1979. Each of such corporations has been formed and is operating under the provisions of either Section 4A or 4B of that Act. Over three hundred cities of the State of Texas have adopted the additional sales tax for the purpose of encouraging economic development or to support economic, park and open space, and sports complex development. 6. The CCED is formed for the following specific purposes: a. To actively oppose legislation that reduces local control of the 4A and the 4B sales tax receipts; b. To monitor tax abatement legislation and to oppose, if necessary, inequity in the treatment of cities; c. To identify and promote the best practices for the economic development of cities which have taken advantage of the sales tax program; d. To employ a professional consultant for the CCED to interact with the Texas Legislature during the 1997 Session, the 75th Legislature, to promote the general and specific purposes of the CCED; and, e. To encourage statewide organizations such as the Texas Municipal League and the Texas Economic Development Council to support the CCED efforts and to either oppose or remain neutral on legislative attempts to restrict the economic development capabilities of the cities. 4 7. The Steering Committee of the CCED will create an administrative agency or designate one of the contracting cities to supervise the performance of the Agreement. The administrative agency or designated city may employ personnel, perform administrative activities, and provide administrative services necessary to perform the Agreement. 8. The Steering Committee shall: a. Elect a Chairman; b. Determine the time, place, and frequency of its meetings; c. Develop a strategy for the CCED and prepare a position paper relative to the proposed legislation and other purposes of the CCED; and, d. Invite other cities to join the CCED. 9. This Agreement has been authorized by the governing body of each party to the Agreement. 10. Each member of the Steering Committee shall have one vote on matters coming before the Steering Committee. A majority vote of the members of the Steering Committee present at any meeting shall be sufficient to act on any matter of business. Members may appear in person, or by representative designated in writing, or may vote on a particular matter in writing by proxy or delegate to another person in writing the authority to vote for such Member as his proxy. All members of the Steering Committee shall be given 72 hours written notice by mail or facsimile of any meeting of the CCED. The representative of the designated administrative agency shall be responsible for furnishing such notice. Additional committees may be created and duties and responsibilities assigned to them. Operational policies and procedures shall be adopted at the organizational meeting. 5 12. Each city paying a membership fee or an assessment to the CCED as provided by this Agreement shall do so from current revenues of the city. 13. This Agreement shall be effective for a period of one year from the date hereof and may be renewed from year to year. Executed in multiple counterparts by the contracting cities to be effective on the 11th day of November, 1996. CITY OF PARIS, PARIS, TEXAS By: Eric S. Clifford, Mayor ATTEST: Mattie Cunningham, City Clerk APPROVED AS TO FORM: T. K. Haynes, City Attorney 6