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Item 4DCity of Southlake, Texas MEMORANDUM November 14, 2006 TO: Shana Yelverton, City Manager FROM: Robert H. Price, P.E., Director of Public Works, x8097 SUBJECT: Resolution No. 06 -071, Approve a resolution supporting a regional rail initiative Action Requested: Approve Resolution 06 -071 supporting a regional rail initiative by urging the 80 Texas Legislature to exempt the two -cent cap on local sales tax amount equal to the locally authorized transit sales tax and authorize local governments to conduct a local option election to enact a sales tax for transit and other lawful purposes. Background Information: On November 7, 2007, staff along with Tarrant County Judge -Elect Glen Whitley and Commissioner -Elect Gary Fickes made a presentation to the Southlake City Council for the purpose of informing the Council of recent regional rail initiatives and the request of the Tarrant Regional Transportation Coalition (TRTC) that the City of Southlake consider a resolution urging the 80 Texas Legislature to exempt the two -cent cap on local sales tax amount equal to the locally authorized transit sales tax and authorize local governments to conduct a local option election to enact a sales tax for transit and other lawful purposes. The population of the region is expected to grow by 43% between now and 2025, taking our population to about 8 million people. In addition, it is expected that daily vehicle miles of travel will increase by 55% between now and 2025, following a 100% increase between 1985 and 2005. It is also expected that 53% of the roadways in this area will be congested by 2025, up from 21% in 1985. Growth in employment and population is expected to continue in the region and will continue to add to the congestion issues experienced today. In order to solve all of the congestion problems anticipated in 2030, NCTCOG projects that an expenditure of approximately $115 billon dollars (in 2006 dollars) would be necessary by 2030. Realizing the significance of the transportation issue in the region, the 79th Texas Legislature created a committee comprised of state and local elected officials to study the issue. I Shana Yelverton, City Manager 11/14/2006 Page 2 of 2 The TRTC has advocated the sales tax exemption as a means of funding the rail initiative. Furthermore, the TRTC advocates that the rail initiative be funded through local option sales tax elections. All of these efforts led to a survey of public opinion on the matter. The survey respondents supported a regional rail initiative. In addition, they supported the funding of such a system through a dedicated sales tax rather than an increase in the gasoline tax. The TRTC has requested that each member city pass a resolution in support of the sales tax cap exemption in anticipation of the upcoming legislative session. Financial Considerations: None Citizen Input/ Board Review: None Legal Review: None Alternatives: Approve or Deny. Supporting Documents: Resolution 06 -071 Staff Recommendation: Staff recommends that City Council approve Resolution No. 06 -071 supporting a regional rail initiative. N:\OO-NewNDrive\Agenda\06-11-21\RegionaI Rail \Item 4D- Regional rail Initiative.doe RESOLUTION NO. 06 -071 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOUTHLAKE, TEXAS EXPRESSING SUPPORT OF A REGIONAL RAIL SYSTEM IN NORTH CENTRAL TEXAS BY AUTHORIZING A LOCAL OPTION SALES TAX ELECTION FOR THE PURPOSE OF FUNDING SUCH RAIL SYSTEM WHEREAS, the City of Southlake is a home rule city acting under its Charter adopted by the electorate pursuant of Article XI, Section 5 of the Texas Constitution and Chapter 9 of the Local Government Code; and WHEREAS, the city of Southlake supports regional efforts to address the mobility and air quality needs of the citizens of North Central Texas; and WHEREAS, implementing the passenger rail service component of the Metropolitan Transportation Plan of the Regional Transportation Council is essential in addressing the mobility and air quality needs of the citizens of North Central Texas; and WHEREAS, local elected officials and transportation professionals in North Central Texas have studied the funding options for implementing the regional rail plan and determined that the sales tax is the best feasible means of providing the needed funding; and WHEREAS, most local governments in North Central Texas have no capacity remaining within the two cent cap on local sales tax without the Texas Legislature providing some relief from the current cap; and WHEREAS, City of Southlake believes that the North Central Texas Regional Rail Plan can best be implemented by the Texas Legislature exempting from the two -cent cap on local sales tax an amount equal to the locally authorized transit sales tax and authorizing local governments to conduct a local option election to enact a sales tax for transit or other lawful purposes; and WHEREAS, City of Southlake believes that such action by the Texas Legislature is important to the economic vitality of Texas and the quality of life of Texans. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SOUTHLAKE, TEXAS: That the 80 Texas Legislature is respectfully urged to exempt from the two -cent cap on local sales tax amount equal to the locally authorized transit sales tax and authorize local governments to conduct a local option election to enact a sales tax for transit or other lawful purposes. PASSES AND APPROVED THIS THE 20'_ DAY OF NOVEMBER 2006. Andy Wambsganss/Mayor ATTEST: Lori A. Farwell, TRMC /City Secretary NATraffic \Regional Transit\Regional Rail \Resolution COS 2% CAP Relief doc