R-2005-01 Intention to Issue Certificates of Obligation

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REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: Budl!et Requested By: Source of Funds: N/A Department: Account Number: Report: Resolution: X Ordinance: Amount Budgeted: Exhibits: Resolution 2005-XXXX Amount Requested: Exhibits: Budgeted Item: YES NO Exhibits SUMMARY & RECOMMENDATION The Texas Tax Code (Chapter 312) requires that cities, electing to participate in tax abatements, first adopt a resolution indicating intent to participate in tax abatements. The resolution does not bind the City to grant any proposed abatements. The Resolution's key findings are: ./ The creation and retention of job opportunities that bring new wealth is the highest civic priority. ./ New jobs and investment will benefit the area economy, provide needed opportunities, strengthen the real estate market and generate tax revenue to support local services. ./ The communities within Harris County must compete with other localities across the nation currently offering tax inducements to attract jobs and investments. ./ The abatement of property taxes, when offered to attract primary jobs in industries which bring in money from outside a community instead of merely re-circulating dollars within a community, has been shown to be an effective method of enhancing and diversifying an area's economy. ./ Texas law requires any eligible taxing jurisdiction to establish Guidelines and Criteria as to eligibility for tax abatement agreements prior to granting any tax abatement, said Guidelines and Criteria to be unchanged for a two year period unless amended by a three- quarters vote. ./ The City of La Porte elects to become eligible to participate in tax abatement. Also, as a matter of housekeeping this resolution will formally repeal Resolution 89-19, which adopted model guidelines and criteria that have expired (and were later superceded by Ordinance 98-2279, which have also expired as they are only good for two years).