Resolution 2025-15_Opposing HB 19_limitations on local debt

Browse Search

RESOLUTION NO.2025-15 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA PORTE, TEXAS, EXPRESSING OPPOSITION TO HOUSE BILL 19, AND URGING THE TEXAS LEGISLATURE TO REIECT THIS AND SIMILAR MEASURES IN THEIR CURRENT FORM WHEREAS, House Bill 19 (HB 19) propose significant several limitations on the issuance of local debt, including effectively capping a local government's ability to issue debt of any kind, effectively eliminating the use of certificates of obligation (COs) and tax anticipation notes, and moving all elections for general obligation bonds to the November uniform election date.; and WHEREAS, HB 19 would prohibit a city from authorizing additional debt if the resulting annual debt service in any fiscal year on debt payable from property taxes issued on or after September 1, 2025, exceeds 20 percent of the amount equal to the average of the amount of property tax collections for the three preceding fiscal years.; and WHEREAS, HB 19 generally provides that a city may issue a CO forthe following projects: (1) transportation infrastructure; (2) landfills; (3) water and wastewater infrastructure; (4) Rood control and drainage projects; and (5) certain public safety facilities, including police stations and fire stations. The bill would expressly prohibit the use of a CO for many projects that are currently allowed, including: (1) parking structures; (2) airports; (3) judicial facilities; (4) administrative office buildings fora city; (5) animal shelters; (6) libraries; (7) parks; and (8) stadiums, arenas, convention centers, and civic centers; and WHEREAS, HB 19 would require an election to authorize general obligation bonds or approve an increase in the property tax rate to be held on the November uniform election date; and WHEREAS, HB 19 would prohibit a city from authorizing a tax anticipation note to pay a contractual obligation if: (1) a bond proposition to authorize the issuance of bonds for the same purpose was rejected by the voters at an election during the preceding five years; or (2) the amount of the tax anticipation note is greater than five percent of the city's total outstanding bonded indebtedness as of the date of the issuance; and WHEREAS, The City of La Porte has a strategy of maintaining strong infrastructure and up -to date facilities in order to continue to provide superior services to our citizens, but HB 19 would severely limit the ability to make necessary investments in road repairs and infrastructure improvements, disproportionately impacting the residents of La Porte; and WHEREAS, while the City of La Porte supports transparency and fiscal responsibility in budgeting and the issuing of debt, HB 19, as currently drafted, presents significant financial and operational risks to the City of La Porte, warranting strong opposition. NOW, THEREFORE, BE 17 RESOLVED BY THE CITY COUNCIL OF THE CITY OF LA PORTE, TEXAS: