08-23-04 La Porte Development Corporation Minutes

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Texas Economic Development Incentives 2003 Page 9 of 29 Tax Origins Abilene voters passed a half-cent ~4A sales tax in 1989, in combination with the sales tax for property tax reduction. In 1989, Abilene sought a dedicated funding source for business incentives, after the community experienced a number of job losses in its traditional job sectors of agriculture, oil and gas. Mission/Focus The mission of the Development Corporation of Abilene is to use sales tax revenue to effectively stimulate Abilene's economic growth. This is done by assessing the community's economic development needs, developing a plan to meet those needs, coordinating community economic development efforts and supporting targeted activities that enhance the quality of life in the community and maximize the public's return on invested tax dollars. The mission statement provides the DCOA with a clear set of directives that guide the allocation of ~4A tax revenues. The DCOA has also identified six goals for the City of Abilene's economic development efforts: . to make Abilene competitive in the attraction of business and industry in order to create new, sustainable jobs; . to create new jobs and retain existing jobs by providing assistance to existing and emerging businesses; . to strengthen and expand the skills of the Abilene labor force; . to strengthen and revitalize downtown Abilene; . to increase the number and size of minority- and women-owned businesses in Abilene; and . to effectively administer the sales tax revenue. According to the annual report filed with the Comptroller's office as required by HB 1410, 1997 Legislature, the major focus of the DCOA is job creation. Organization and Staffing The DCOA is a non-profit corporation established under Section ~4A of the Development Corporation Act of 1979, as amended. The DCOA has a five-member board, which is appointed by the mayor and city council. The board meets on a monthly basis to determine funding for all sales-tax funded projects, and also approves all incentive packages by written resolution. The DCOA publishes an "Annual Report of Activities" that documents in considerable detail specific projects funded with ~4A revenues, as well as an update on projects that have defaulted on their incentive contracts, if any. Over the years, the reports have become more detailed. In the last few years, the report has specifically outlined the progress made toward reaching DCOA's six adopted goals. In 2002, a semi-annual report was developed. These reports help provide the board and the general public with a useful snap-shot of ~4A expenditures and their results. The DCOA has no staff of its own. Rather than duplicate the efforts of existing http://www.window.state.tx.us/specialrptlecodev03/06ch3 .html 9/27/2004