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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 0 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. 10 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. II 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. 12 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. 13 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. 14 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 15 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. 16 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. 17