Item 4HCity of Southlake, Texas
MEMORANDUM
TO: Shana Yelverton, City Manager
FROM: Jim C. Blagg, Assistant City Manager
Background
Information: Every two years the Texas Legislature meets in regular session. Over the
last several years the Legislature has taken up a number of issues that were
thought to be, by some, an aggressive stance with regard to City's rights to
govern themselves in accordance with the desires of the City's citizens.
The City of Southlake wants to ensure that it has the ability to preserve its
current authority to govern the City, its citizens and property.
STATEMENT OF PRESERVATION
As a general policy, the City of Southlake seeks to preserve its current
authority to govern the city, its citizens, and its property. The City
will oppose any legislation viewed as detrimental to the City's
strategic goals; or that is contrary to the health, safety, and welfare of
its citizens; or that mandates increased costs or loss of revenues; or
that would diminish the fundamental authority of the City.
o SUPPORT LEGISLATION THAT ADVANCES THE CITY'S
STRATEGIC GOALS & INTERESTS
STATEMENT OF SUPPORT
Likewise, the City supports any legislation viewed as advancing the
City's strategic goals; or that improves the health, safety, and welfare
of its citizens; or that responsibly increases revenues; or that advances
the City's authority to conduct the public's business.
o FORM COALITIONS WITHPARTIES THAT SHARE COADJON
GOALS AND INTERESTS WITH THE CITY
FORM COALITIONS 4rNk
The City will form strategic partnerships with cities, political
subdivisions, and private sector entities that share common goals with
the City of Southlake. Additionally, the City will work in
coordination with organizations such as the Texas Municipal League
when their adopted positions are in line with the legislative objectives
and goals of the City. The formation of strategic partnerships and
coordinated efforts is intended to provide the City with a stronger
presence in the legislative process.
The Priority Legislative Agenda includes the following issues:
Preserve Local Budgeting Authority and Revenue Sources
• Oppose legislation that would unduly restrict the ability
of the City to set its own budget or raise the necessary
revenue to provide services to City residents and
businesses.
2. Preserve Local Control of Land Use Planning and Zoning
• Support legislation that preserves local land use
authority.
Oppose legislation that would erode local land use
authority by restricting the ability of cities to zone or
rezone properties.
4. Expanded Use of Hotel Occupancy Taxes
• Seek passage of legislation that would allow hotel
occupancy taxes to be used to fund a municipal trolley
system that shuttles people to and from local hotels and
around the town square.
Municipal Water Main Breaks and the Discharge of Treated
Water
budgeted in the FY2007 budget to cover these expenses.
Citizen Input/
Board Review:
Legal Review: ,, N/A
Alternatives: The Council could rely on TML's legislative agenda and educational
the State Legislature
Supporting
Documents Resolution No. 06 -067 and City of Southlake's proposed legislative
agenda.
Staff Recommendation:
Passage of Resolution No. 06 -067 adopting the City of Southlake's
Legislative Agenda
RESOLUTION NO. 06 -067
A RESOULTION OF THE CITY COUNCIL OF THE CITY OF SOUTHLAKE, TEXAS,
ADOPTING A LEGISLATIVE AGENADA FOR THE 80 TEXAS LEGISLATIVE REGULAR
SESSION.
WHEREAS, Home Rule Charter of the City of Southlake, Texas, was approved by the voters in a duly
call Charter election on April 4, 1987; and,
WHEREAS, the City Council recognizes the need for the City to preserve its current authority to govern
its citizens, budget and property; and,
WHEREAS, the Texas Legislature has in the past adopted legislation t as ir3pacted the City's ability
to govern its citizens, budget and property; and,
WHEREAS, the City Council recognizes the importance of the Ci being` nvolved in the
legislative process; and,
WHEREAS, the City Council had deemed that the reQo� ended legislative agenda the strategic
goals and interests of the City,
THEREFORE, BE IT RESOLVED BY THE CITY COUNCI THE CITY OF SOUTHLAKE,
TEXAS THAT:
Section 1. All of the findings in the preamble are found to be true'W correct and the City Council
incorporates said findings into the body of this resolution as if copied iri` its entirety.
Section 2. Exhibit A is hereby adopted as the Legislative Agenda for the City of Southlake, Texas
for the 80 Regular Legislative Session.
Section 3. The different elements, issues or priorities, as adopted, and as amended from time to
time, shall be kept on file in the office of the City Secretary of the City of Southlake, along with a copy of
the resolution and minute order of the Council so adopting or approving same.
Section 4. This resolution shall become effective on the date of approval by the City Council.
PASSED AND APPROVED ON THIS 7 DAY OF NOVEMBER, 2006
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CITY OF SOUTHLAKE
ma
Andy Wambsganss, Mayor
ATTEST:
Lori Farwell,
City Secretary
ATTACHEMENT A
Southlake
2007 Legislative Agenda
QA'h 'T'exas Legislative Session
■
TABLE OF CO
L General Legislative Policy ................. ................ .......... .I....: ............. Page 3
ILPriority Legislative Agenda ................................................. ..:..:....... Page 4
III. Discussion of Priority Legislative Issues , ............ ............................... Page 5
IV. General Legislative Agenda ........................ ............................... Page 11
V. Goals of Legislative Activities ................. ............................... Page 12
GENERAL LEGISLATIVE POLICY
PRESERVE THE CITY'S STRATEGIC GOALS & INTERESTS
8 "N40W
STATEMENT OF PRESERVATION
SUPPORT LEGISLATION THAT ADVANCES
THE CITY .S' STRATEGIC GOALS & INTERESTS
FORM COALITIONS WITH PARTIES THAT SHARE
COMMON GOALS AND INTERESTS WITH THE CITY
FORM COALITIONS
The City will form strategic partnerships with cities, political subdivisions, and private sector entities
that share common goals with the City of Southlake. Additionally, the City will work in
coordination with organizations such as the Texas Municipal League when their adopted positions
are in line with the legislative objectives and goals of the City. The formation of strategic
partnerships and coordinated efforts is intended to provide the City with a stronger presence in the
legislative process.
PRIORITY LEGISLATIVE AGENDA
PRIORITY LEGISLATIVE ISSUES
4. Preserve Local Budgeti^hority `Revenue Sources
Oppose legislation that would unduly restrict the ability
of the City to set its own budget or raise the necessary
revenue to provide services to City residents and
usinesses.
5. Preserve trol of Land US Planning and Zoning
• Support legislation that preserves local land use
authority. I r '
A u�
Oppose legislation that would erode local land use
authority by restricting the ability of cities to zone or
rezone properties.
Expanded Use of Hotel Occupancy Taxes
• Seek passage of legislation that would allow hotel
occupancy taxes to be used to fund a municipal trolley
system that shuttles people to and from local hotels and
around the town square.
Municipal Water Main Breaks and the Discharge of Treated
Water
Seek passage of legislation that exempts treated water
discharges associated with water main breaks from
Texas Commission on Environmental Quality (TCEQ)
enforcement actions.
Shana Yelverton, City Manager
December 14, 2010
DISCUSSION OF PRIORITY LEGISLATIVE ISSUES
Preserve Local Budgeting Authoritv and Revenue Sources
The City of Southlake will o ppose legislation that will unduly restrict the ability of the City to
set its own budget or raise the necessary revenue to provide services to City residents and
businesses.
ISSUE
During the last several Texas Legislative Sessions, proposals have been set forth that would
severely limit the ability of cities to set their budgets or raise adequate revenues to carryout their
fundamental functions. For example, numerous proposals to "cap" local revenues and property
appraisals have been filed in the Texas Legislature. Every elected official in the City of
Southlake is sensitive to the tax burden our citizens and businesses pay and is accountable to the
local electorate for the decision they make. However, we are also mindful that it takes a great
deal of flexibility with our local budget to meet the unique demands for services while at the
same time preserving the high standards our community has come to expect.
PROBLEM
Appraisal and revenue caps undermine the ability of local governments to meet the individual
needs and circumstances of their cities. Additionally, one size fits all "caps" violate the
fundamental principle of local control. Citizens and businesses have numerous opportunities to
provide input in to the City of Southlake's budget and tax rate setting processes. Most
importantly the citizens of our City get to voice their approval or disapproval of our budgeting
performance and tax rates every time we hold a City election.
Unfortunately, extremely low appraisal and revenue caps can produce numerous problems. For
instance, appraisal caps shift the inequitable tax burden to businesses and new homeowners.
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Shana Yelverton, City Manager
December 14, 2010
This inequitable shift can produce serious long -term negative consequences for the local
economy. Revenue caps on the other hand require the City to cut services or undertake on more
debt to fund local projects and services. These type of "caps" are particularly harmful to a city
like Southlake because it prevents the City from adequately dealing with the infrastructure needs
brought on by tremendous population growth.
It is inappropriate for the State of Texas to expect local governments to provide numerous public
services, with no funding from the State, while at the same time unduly restricting the ability of
local governments to raise the necessary levels of revenue to provide the required services.
SOLUTION
If revenue caps are going to be applied to local governments they should be applied uniformly to
the state budget as well. In short the same rules should apply to all levels of government. The
State could also supplement local government funding as other states have done, who impose
revenue caps and as the State of Texas recently did with the new school finance plan.
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Shana Yelverton, City Manager
December 14, 2010
Preserve Local Control of Land Use Planning and Zoning
The City of Southlake will support legislation that preserves local land use authority and
oppose legislation that will erode local land use authority by restricting the ability of cities to
zone or rezone properties.
ISSUE
Over the past few legislative sessions various proposals have been introduced to restrict the
ability of cities to enforce their traditional land use controls. Specifically, legislation that
requires cities to compensate landowners anytime a zoning classification change (often referred
to as a "downzoning ") have become dangerously close to becoming the law. Under these
proposals cities would have to compensate landowners, even if the proposed zoning changes did
not interfere with the current or intended use of the property. In addition to compensating
landowners for zoning changes, proposals have been considered that would require
compensation for numerous types of city regulations. For example, previously proposed
legislation would have required cities to compensate landowners if they restricted the ability of
patrons to smoke on premises or limited the time of day that alcohol could be served. All of
these types of local restrictions have been debated under the theory of "regulatory takings."
Additional legislative proposals would have prevented cities from ever changing the zoning
classification of a property if any type of basic permit or site plan has been filed with any
governmental entity. Since 1999 the Texas Legislature has continually expanded the "permit
vesting" statute to include different aspects of city land use authority. The expansion of the
"permit vesting" statute is beginning to interfere with the ability of cities to impose orderly,
efficient, and comprehensive land use and development plans for their communities.
PROBLEM
Restricting the ability of cities to properly regulate land uses ultimately prevents them from
being able to respond to the needs and demands of their citizens. For example, land use controls
are used to keep undesirable businesses from locating in neighborhood type settings.
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Shana Yelverton, City Manager
December 14, 2010
Additionally, one of the main reasons people live in cities is to have the protection of a regulated
land use system. In short when a home or business locates in a particular city they do so in part
to ensure that an incompatible structure will not be placed next to their property.
SOLUTION
The ability of most cities to manage growth and development is based on the Texas
constitution's home rule provisions. Cities are allowed to amend charters and pass ordinances al
long as they do not conflict with the constitution or general laws enacted by the state legislature.
The bottom line means that each home rule city can make its own decisions about what planning
tools and techniques are most appropriate to its situation unless those tools have been proscribed
by the Texas legislature. The State should be very cautious in proscribing solutions that are only
applicable to individual situations because of the vast differences between cities in this large
state.
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Shana Yelverton, City Manager
December 14, 2010
Expanded Use of Hotel Occupancy Taxes
The City of Southlake will seek passage of legislation that would allow hotel
occupancy taxes to be used to fund a municipal trolley system that shuttles people
to and from local hotels and around the town square.
ISSUE
The City of Southlake intends to implement a municipal trolley system that will provide public
transportation for visitors and citizens to the areas around our town square. The trolley system
would be used to take visitors and citizens to and from local hotels and around the town square
shopping facilities. It is anticipated that this type of service will enhance the desirability of the
Southlake Town Square as a tourist "shopping destination."
Under the current state law it is unclear as to whether or not the City of Southlake can expend
hotel occupancy taxes on this type of project. The City of Southlake wishes to use a portion of
the hotel occupancy taxes to fund the operational costs associated with the trolley system. In
order to implement this beneficial program, the City will need to seek affirmative changes to the
current statutory system that governs hotel occupancy taxes.
Chapter 351 of the Texas Tax Code sets forth the permissible uses and allocation formulas for
municipal hotel occupancy taxes.
SOLUTION
The Texas Legislature should amend Chapter 351 of the Texas Tax Code to clarify that funding
the operational expense of municipal transportation/trolley system that serves tourists and
citizens should be a permissible expenditure of city hotel occupancy taxes.
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Shana Yelverton, City Manager
December 14, 2010
Municipal Water Main Breaks and the Discharge of Treated Water
The City of Southlake will seek passage of legislation that exempts treated water discharges
associated with water main breaks from Texas Commission on Environmental Quality
(TCEQ) enforcement actions.
ISSUE
The TCEQ undertook enforcement actions against the City of Southlake for an alleged violation
of the Texas Water Code that deals with the discharge of pollutants. The TCEQ has claimed that
the water main break violated Texas Water Code Section 26.121 pertaining to "Unauthorized
Discharges." This section of the Water Code is intended to prevent the discharge of pollutants
into public waterways.
The City of Southlake is responsible for maintaining hundreds of miles of water main lines
throughout the City's service territory. It is impossible to prevent or to anticipate when a water
main might break and allow for the discharge of treated water. Often water mains are broken
when private sector entities are working the public rights of way, the City has little ability to
oversee these operations and should not be negatively impacted when a water main is
compromised. If the discharge of potable drinking water is subject to the same standards as the
discharge of sewage and industrial wastes, then the City of Southlake and other municipalities
will continue to be subject to enforcement actions and liabilities.
TCEQ enforcement actions on the basis of discharged drinking water are inappropriate and go
against the intended purpose of the Texas Water Code prohibition on discharging of pollutants.
SOLUTION
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Shana Yelverton, City Manager
December 14, 2010
The Texas Legislature should amend Texas Water Code Section 26.121 to create an exemption
for potable water main breaks that are promptly repaired by local governments. This amendment
will prevent the inappropriate application of a statute dealing with environmental pollutants from
being applied to simple water main breaks.
GENERAL LEGISLATIVE AGENDA
GENERAL LEGISALTIVE ISSUES
1. Insurance Procurement
• Support legislation that would exempt health and liability insurance from the
current competitive bidding requirements for all home rule cities.
2. Unemployment Insurance
• Support legislation that would prevent cities from being liable for unemployment
compensation to a former city employee after the employee is hired by a
subsequent employer.
3. Preserve the Authority to Impose and Collect Municipal Impact Fees
• Oppose legislation that would restrict the ability of cities to impose and collect
municipal impact fees from new developments.
4. Protection of Local Economic Development Authority
• Support legislation that provides local governments with the ability to expand
local economic development efforts.
• Oppose legislation that would erode current authority to participate in local
economic development projects, including but not limited to, the ability to provide
tax abatements and Chapter 380 economic development agreements.
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Shana Yelverton, City Manager
December 14, 2010
Goals of City Legislative Activities
The fundamental goal of all City of Southlake legislative activities is to produce positive
outcomes for the citizens of the City of Southlake as a whole. Numerous proposals in the Texas
Legislature have the potential to seriously impact the ability of the City to carryout its overall
mission. By taking a proactive role in monitoring and commenting on proposals in the Texas
Legislature we are working to ensure that the citizens of the City of Southlake can continue to
enjoy the quality of life they have come to expect and deserve.
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