1981 04 14 CC Minutes, Special10414 -1
MINUTES OF THE SPECIAL MEETING
OF THE CITY COUNCIL OF THE CITY OF BAYTOWN
April 14, 1981
The City Council of the City of Baytown, Texas, met
in special session on Tuesday, April 14, 1981, at 6:00
p.m. in the Council Chamber of the Baytown City Hall with
the following attendance:
Fred T. Philips
Jimmy Johnson
Perry M. Simmons
Mary E. Wilbanks
Roy L. Fuller
Allen Cannon
Emmett 0. Hutto
Fritz Lanham
Dan Savage
Randy Strong
Eileen P. Hall
Councilman
Councilman
Councilman
Councilwoman
Councilman
Councilman
Mayor
City Manager
Assistant City Manager
City Attorney
City Clerk
The meeting was called to order with a quorum present
and the following business was transacted:
Consider Proposed Resolution No. 767, Adopting Industrial
District Policy
Just prior to the special meeting Council had a work
session to discuss various alternatives with regard to es-
tablishment of an Industrial District Policy. Randy Strong,
City Attorney, explained that adoption of Proposed Resolution
No. 767 would repeal Resolution No. 514, which was adopted on
July 10, 1975. The only difference in the two resolutions is
the formula. The present industrial district formula follows:
TOTAL PAYMENT TO CITY = TAX PAYMENT + INDUSTRIAL
DISTRICT PAYMENT
Tax Payment = Tax Rate x Assessment Ratio x (20 %)
of fair market value of entire
industrial facility.
Industrial District Payment = Tax Rate x (80 %)
of fair market value of total
industrial facility x (6`jo) .
and the proposed formula:
TOTAL PAYMENT TO CITY = TAX PAYMENT + INDUSTRIAL
DISTRICT PAYMENT
Tax Payment = Tax Rate x fair market value of
industrial facility in annexed area.
Industrial District Payment = (Tax Rate x fair
market value of total industrial
facility as determined by the City
of Baytown x ) minus tax
payment.
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Minutes of the Special Meeting - April 14, 1981
The reason for the change in the formula is because of
the unknown effect of the implementation of the Harris County
Central Appraisal District. Since at this time, the city has
no way of determining when that district will come into effect
or exactly how the district will manage appraisals. The city's
past practice of taxing twenty (20 %) percent annexation and
receiving eighty (80 %) percent as industrial district payment
may be completely skewed out of line if the district appraises
the twenty (20 %) at some value completely off of what has been
used in the past. Therefore, in effect what the formula does
is calculate that the industries will pay to the City of Baytown
a percentage of what they would pay if totally annexed. That
total payment will then be broken into industrial district pay-
ment and tax payment. In effect what the city will be doing
is taking the value received from the district for the twenty
(20 %) percent, apply the city's tax rate to that and that will
be the tax income from the industry. Whatever else is needed
to make up the total payment will be the industrial district
payment. Therefore, the important change in the resolution is
the percentage.
Councilman Simmons moved for Proposed Resolution No. 767,
adopting Industrial District Policy, including thirty -five
(35 %) percent in the blank for industrial district payment.
Councilman Fuller seconded the motion.
Councilman Cannon stated at the last work session meeting,
the committee discussed utilizing thirty -seven (377o) percent
or thirty -eight (38 %) percent. Councilman Cannon stated that
he was in favor of the thirty -eight (38 %) percent figure and
that he had not been given any information to cause him to
change his mind. As he had pointed out to Council in the work
session, if city services were normalized, taxes to the home-
owner would be considerably higher than surrounding areas which
would be grossly unfair if Council approves thirty -five (35 %)
percent.
Councilman Cannon moved to replace that motion with a
substitute motion to include thirty -eight (38 %) percent as
the figure for the resolution. He explained that this is
the city's only window for a seven -year period. If the
thirty -eight (38 %) percent should come in high or if some of
the projections are good, the tax rate can always be lowered
and everyone will benefit. Another thing that this could be
indicating is that the industrial district percentage has been
unfair for the last seven years and Council is being grossly
unfair to the citizens of Baytown if thirty -five (35 %) percent
is approved. The motion died for lack of second. The vote
on the original motion follows:
Ayes: Council members Philips, Johnson, Simmons
and Fuller
Mayor Hutto
Nays: Council members Wilbanks and Cannon
RESOLUTION NO. 767
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BAYTOWN,
TEXAS, REPEALING RESOLUTION NO. 514 DULY ADOPTED BY THE
CITY COUNCIL OF THE CITY OF BAYTOWN ON JULY 10, 1975,
AND DECLARING SAID RESOLUTION TO HAVE NO FORCE AND EFFECT,
FINDINGS, DECLARING AND ESTABLISHING THAT MANUFACTURING
INDUSTRIES NEAR THE CORPORATE LIMITS OF THE CITY OF BAYTOWN
RARELY USE BAYTOWN'S MUNICIPAL SERVICES TO THE SAME EXTENT
AS DO PRIVATE CITIZENS AND, CONSEQUENTLY, SUCH MANUFACTURING
INDUSTRIES AS A WHOLE SHOULD COMPENSATE THE CITY OF BAYTOWN
PROPORTIONATELY AS TO THEIR USE AND ENJOYMENT OF SUCH MUNI-
CIPAL SERVICES.
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Minutes of the Special Meeting - April 14, 1981
Consider Proposed Ordinance, Creating Industrial District
Review Board
The Administration has given Council a copy of a draft
of an ordinance that would establish an Industrial District
Review Board. This Board will be necessary at the time
Harris County Central Appraisal District assumes the ap-
praisal function. The Administration can put this on a
later agenda.
Appointments to the Baytown Housing Authority Board
Mayor Hutto reappointed 0. J. Howell and Vernon Shields
to the Baytown Housing Authority Board.
Adjourn
There being no further business to be transacted, the
meeting was adjourned.
Eileen P. Hall, City Clerk