HomeMy WebLinkAboutResolution 2025-15_Opposing HB 19_limitations on local debtRESOLUTION 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:
SECTION I. That the City Council of the City of LaPorte, Texas, formally opposes HB 19 and urges the Texas
Legislature to reject this and similar measures in their current form.
SECTION 2. That copies of this Resolution be forwarded to Governor Greg Abbott, Lieutenant Governor
Dan Patrick, Speaker of the House Dustin Burrows, members of the Texas Senate and House of
Representatives, the Harris County Commissioners Court, and any other relevant stakeholders.
SECTION 3. The City Council officially finds, determines, recites, and declares that a sufficient written
notice of the date, hour, place and subject of this meeting of the City Council was posted at a place
convenient to the public at the City Hall of the City for the time required by law preceding this meeting, as
required by the Open Meetings Act, Chapter 551, Texas Government Code; and that this meeting has been
open to the public as required by law at all times during which this resolution and the subject matter
thereof has been discussed, considered and formally acted upon. The City Council further ratifies,
approves and confirms such written notice and the contents and posting thereof.
SECTION 4. This resolution shall be in effect from and after its passage and approval.
PASSED AND APPROVED this, the 12'h day of May, 2025.
CITY OF to PORTE, S
Rick Helton, M
Chuck Engelken, Major
uncilperson District 2
'AL.A It
BrUcIoQWo d, Councilperson A - ge, Position A
c
,Bf
e McCaulley, Counci person rge, Position B
Bill Bentley, Cgocifperson District 3
District 4
Robbie McLarrin, Councilperson District 6
APPROVED AS TO FORM:
Clark Askins, City Attorney