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HomeMy WebLinkAboutRes 05-20 Supporting Tarrant County’s Moratorium on All Tax IncentivesTOWN OF WESTLAKE RESOLUTION NO. 05-20 SUPPORTING A TEMPORARY MORATORIUM ON ALL TAX INCENTIVES FOR COMMUNTIY AND ECONOMIC DEVELOPMENT PROJECTS DECLARED BY TARRANT COUNTY WHEREAS, legislation being considered by the 79"' Regular Session of the Texas Legislature would negatively affect the traditional annual revenue stream of Tarrant County government; and WHEREAS, the amount of discretionary funds available to the Commissioners Court of Tarrant County for community and economic development purposes is dependant to a large extent on a growing tax base and the resulting increase in the annual tax revenue of the county; and WHEREAS, prudent financial practice requires that the governing body of any public entity should consider the availability of future tax revenues when evaluating community and economic development proposals that include the abatement, rebate, or other specified use of future tax revenues as an incentive for growth and development; and WHEREAS, in performing its due diligence, the governing body of a public entity should determine that a project receiving tax incentives will eventually provide sufficient return on investment when the project becomes fully taxable; and WHEREAS, the proposed capping of county tax revenue on an annual basis would severely limit the ability of the county to realize any tax revenue benefit or return on its investment at the end of a tax abatement, tax increment financing, or other tax incentive period; NOW, THEREFORE BE IT RESOLVED BY THE BOARD OF ALDERMEN OF THE TOWN OF WESTLAKE, TEXAS: SECTION 1: That support is hereby given to Tarrant County's declaration of a temporary moratorium on tax abatements, tax increment financing, or other tax incentives that pledge, abate, or use future tax revenues to incentivize community and economic development projects, until such time that future ad valorem tax revenue streams are more clearly defined. +/�J PASSED AND APPROVED ON THIS THEI�y d rd DAY OF ST: Je Dwinnell, TRMC, CMC, Tow�Secr�etarry APPRO RM: Z:; 6.—f ant 3on o 0 orney 2005. —91-1 APPROVED: Scott Bradl y, Mayor