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CC Resolution No. 14722760 RESOLUTION NO. 1472 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, SUPPORTING THE PASSAGE OF HOUSE BILL 693 AND ITS COMPANION SENATE BILL NO. 417 TO AMEND CHAPTER 377 OF THE TEXAS LOCAL GOVERNMENT CODE TO ALLOW MUNICIPALITIES LOCATED IN MORE THAN ONE COUNTY TO CREATE A MUNICIPAL DEVELOPMENT DISTRICT; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. WHEREAS, the use of sales tax to promote economic development has proven to be one of the most popular and effective tools used by Texas municipalities; and WHEREAS, to date, over 400 cities have levied an economic development sales tax, resulting in more than $215 million dollars annually in additional sales tax revenue; and WHEREAS, while the City of Baytown originally considered assessing a Section 413 economic development sales tax, it became apparent that the City was prohibited from doing so because of the recent passage of Chambers County's health service tax; and WHEREAS, House Bill 693 and its companion Senate Bill No. 417 (collectively hereinafter referred to as "HB693 ") are designed to afford municipalities like the City of Baytown, which are unable to impose an economic development sales tax pursuant to Section 4A or Section 4B of the Development Corporation Act, a mechanism to encourage and promote economic development within the municipalities' corporate limits; and WHEREAS, such a mechanism is already in place for those municipalities which have a population of less than 10,000 and which are located in more than two counties, at least one of which borders the Gulf of Mexico; and WHEREAS, HB693 allows municipalities located in more than one county to call an election on the question of creating municipal development districts to plan, acquire, establish, develop, construct, or renovate one or more development projects beneficial to the district, whose boundaries are set by the governing bodies of such municipalities; and. WHEREAS, the City Council of the City of Baytown, Texas, desires to register its support of HB693; NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS: Section 1: That the City Council of the City of Baytown hereby endorses and encourages the passage of House Bill 693 and its companion Senate Bill No. 417 as introduced in the House of Representatives by Representative Bosse and in the Senate by Senator Jackson, which bills encourage economic development within Texas cities. 2761 Section 2: That the City Council of the City of Baytown believes this action by the Texas Legislature will be most beneficial to all residents of cities located in more than one county statewide. Section 3: This resolution shall take effect immediately from and after its passage by the City Council of the City of Baytown, Texas. INTRODUCED, READ and PASSED, by the affirmative vote of the City Council of the City of Baytown this the 8th day of February, 2001. PETE C. ALFARO, Ma or ATTEST: ZILiwk - GA W SMITH, City Clerk APPROVED AS TO FORM: ACIO RAMIREZ, Ag..Oty Attorney c:klh261 \Council\ Resolutions \SupportHB693Resolution