11-15-1993 (City Council) Agenda Packet Economic Development Sales Tax
(4B - Parks, Recreation, and Library)
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Joint City Council/Park and Recreation Board
WORKSES SION
November 15, 1993
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HOW ARE WE DIFFERENT?
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The retail business is extremely competitive. With over seventy percent of
merchandise the same from one store to another, what distinguishes one
department store from another?
Marvin Traub, former CEO of Bloomingdale's, identifies the most important
key to the success of his store's was the ability to create an "Image of quality,
value and distinction ".
What are we doing as a city to enhance the "quality of life" and create the
"image" we want that will distinguish Wylie from other communities?
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itdr.„-5 • ., fi HALF-CENT SALES TAX (4B) FACTS
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Individuals shopping in Wylie currently pay a 7.75 cent sales tax on each dollar of retail sales. The
City collects one and one half of the tax, while the State collects 6.25 cents. A penny of the City's
collections goes directly into the General Fund and helps finance general City operations. The new
"Half-Cent" sales tax will be dedicated exclusively to parks, recreation, library, and related services
as permitted by State Law.
- - The Sales Tax revenues may be used to finance the following:
- Land, buildings, equipment, public park facilities, ballparks and fields, bath rooms/
concessions, library facilities and/or expansion furnishings, community/senior adult
centers, related parking facilities, hike and bike trails, and maintenance and operating
costs associated with these projects.
- - The additional half-cent will generate approximately $225,000 dollars annually. The
rebates will be received by the City beginning in July of 1994.
- - The Half-Cent Sales Tax will allow the City to implement a comprehensive program of
parks, recreation and library improvements to meet current needs, as well as prepare for
future demands. These improvements would be financially impossible with the current
General Fund (Property and Sales Taxes) revenues.
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K HALF-CENT SALES TAX (4B) FACTS
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- - According to the State Comptroller's Office, over 50% of those individuals shopping in
Wylie are non-residents. Some of these non-Wylie residents also use city facilities.
This means a majority of the sales tax will come from "out-of-towners" to help us
build our parks, recreation and library facilities.
- - The half-cent increase will not apply to basic necessities such as food, housing,
prescription medicine, doctor bills, automobiles, etc.
- - If the Sales Tax is approved by voters in January, Wylie's Sales Tax amount will be the
same as Dallas, Richardson, Plano, Garland, and Rowlett.
- - Results of a survey conducted by the Chamber of Commerce in the Spring of 1993,
indicate that the Citizens of Wylie would support increased expenditures for Parks,
Recreation and Library facilities and services.
- - Through a Public Hearing process, the citizens will have an opportunity to establish
funding priorities.
- - The City Council, which appoints seven members to a corporation that administers the
sales and use tax funds, will maintain approval of how the funds are spent.
{ RESPONDING TO YOUR QUESTIONS
moitimr Half-Cent Sales Tax - 4B
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Why has the Wylie City Council called this election?
In 1991, the Texas State legislature passed a law allowing cities (by a majority vote of its citi-
zens) to levy a Local-Option One-Half Cent Sales Tax for Parks, Recreation and Library Ser-
vices and Programs. The Wylie City Council determined that this new tax would be very ben-
eficial to the Citizens of Wylie in lessening future Property Tax increases for new Parks, Recre-
ation and Library Projects and Services, and the renovation of existing facilities.
How much will it cost me if the Half-Cent Sales Tax is passed?
The Half-Cent Sales Tax increase will only cost the average consumer $12.00 a year. According
to the State Comptrollers Office, approximately 1/2 to 2/3 of the city's total sales tax revenues
are paid by non-Wylie residents.
What programs and services can the Half-Cent Sales Tax be used for?
Land, buildings, equipment, public park facilities, ballparks and fields, bathrooms/concessions,
library facilities and/or expansion furnishings, community/senior related parking facilities, hike
and bike trails, and maintenance and operating costs associated with projects.
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• ' '� : RESPONDING TO YOUR QUESTIONS
$: Half-Cent Sales Tax - 4B
• (continued)
Will the burden on future property taxes to pay for Park, Recreation and Library purposes
be lessened if the new Half-Cent Sales Tax passes?
The new Half-Cent Sales Tax will generate about $225,000, based on current year collections.
The burden on future property taxes to pay for Park, Recreation and Library purpose would be
lessened with passage of the new Half-Cent Sales Tax. Property taxes would have to be raised
to pay for the same level of programs and services that collection of the new Half-Cent Sales
Tax will make possible. Supplementing the general fund with the new revenues, will enable
current needs to be met, as well as prepare for future demands.
What happened if the Half-Cent Sales Tax fails? What are the alternatives?
If the Sales Tax is not approved, facility and program upgrades will have to be deferred indefi-
nitely, until such time as funding becomes available, or under a worst case, not funded at all.
Current city revenues are used primarily for maintenance and operation of existing facilities.
Minimal funding is available to construct new facilities, or to upgrade the existing facilities.
Current facilities are not meeting today's demands. Youth, Adult, and Senior programs and
services will continue to be impacted without additional revenues. The Half-Cent Sales Tax is
a funding alternative. The City Council understands that without this source of revenue, it
would be necessary to raise property taxes to pay for the additional programs and services that
the new Sales Tax would finance.
fw A{ .. 1993 - 1994
,.6 I :., ! 1/2 Cent Sales Tax Public
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Information Strategy
NN 4B - Parks, Recreation, and Library
September
30 City Council Workshop
- - Discussion of alternative funding sources to finance Parks, Recreation, and Library
programs. Introduction to 1/2 Cent Sales Tax (4B)
October
12 Economic Development Committee
- - Presentation and discussion
14 Rotary Club Meeting
- - Presentation and discussion
Joint City Council/Park and Recreation Board Worksession
- - Discussion of possible election dates, establishing project priorities and development of a
public information strategy
November
16 Joint City Council/Park and Recreation Board Worksession
- - Consideration by City Council of ordinance calling election for January 15, 1994
- - Develop public information strategy - public information materials presented for initial
comment
- - Discussion of general project area priorities
17 Wylie Sports Association
- - Presentation and discussion
1993 1994
t ' � t. _ 1/2 Cent Sales Tax Public
Nr _w> " Information Strategy
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December (continued)
2 Joint City Council/Park and Recreation Board Worksession
- - Adopt public information strategy program - approve materials
- - Assign Members to Speakers Bureau
8 Area Girl Scout Leaders
- - Presentation and discussion
14 City Council Meeting
16 4:00 p.m. Chamber of Commerce Board
- - Presentation and discussion
7:00 p.m. Lion's Club
- - Presentation and discussion
7:00 p.m. Wylie Women's League
- - Presentation and discussion
20 7:30 p.m. Wylie School Board
- - Presentation and discussion
21 10:00 a.m. AARP
- - Presentation and discussion
7:30 p.m. Wylie Homemakers Extension Club
- - Presentation and discussion
22 Wylie Book Club
- - Presentation and discussion
1993 - 1994
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1/2 Cent Sales Tax Public
=` <hn Information Strategy
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• >' `Jz° A 4B - Parks, Recreation, and Library
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January
3 Noon Ministerial Alliance
- - Presentation and discussion
10 7:00 p.m. Library Board
- - Presentation and discussion
** If adopted as part of Public Information Strategy, a special edition of the
Wylie Citizens Newsletter will be mailed.
15 ELECTION DAY !!
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$ ; OTHER QUESTIONS
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If the 4B Sales Tax is approved, can the revenues be ple ;ed to issue debt to fund high
priority projects?
Yes, issuing debt is an important activity in complying with the intent of the legislation.
The City could issue as little or as much debt as necessary ID meet project needs. How-
ever, there are two important things to keep in mind. No Property Tax Funds will be
pledged, only the Half-Cent Sales Tax. A Public Hearing will be held before any decision
is made by the City Council with regard to long-term debt.
Specific to the City of Wylie's needs, what are some of the projects that could be considered
for funding?
When combined with current general fund revenues, the following projects could be
considered through the year 2001: Land purchase and development of
neighborhhood parks; Enhancements to Community, Valentine, Olde City and Kirby
Parks; library expansion; Community/Senior Adult facility development; land
purchase and development of an athletic program containing softball, baseball,
soccer and football fields with concession and bathroom facilities, and hike and bike
trails.
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a. :r... - ilfil A OTHER QUESTIONS
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Can the Sales Tax funds be spent on maintenance and operations?
Yes, as a policy, it would be the City Council's intent not to approve projects unless
the 1/2 Cent Sales Tax revenues fund the total, continuing operational and
maitenance costs of the project.
What affect will this tax have on the collection of user fees?
These fees will continue to be an important source of revenue to pay for the actual
cost of using the facilities.
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OTHER QUESTIONS
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Which cities have passed the 4B Sales Tax?
ARLINGTON KELLER
BURLESON MANSFIELD
DALWORTHINGTON GARDENS NORTH RICHLAND HILLS
EULESS PANTEGO
GRAND PRAIRIE SEABROOK
HURST
Memorandum
DATE • November 9, 1993
TO • Mayor John Akin and City Council
FROM • Steve Norwood, City Mana
SUBJECT : Council Worksession for November 16, 1993
There will be a council worksession November 16, 1993, at 7:00 p.m. This worksession
will be a joint meeting with the Parks and Recreation Board to discuss the half-cent sales
tax.
A second issue with possible consideration at this meeting, is an item of action related
to the election of the half-cent sales tax.
Should you have any questions, please do not hesitate to contact me.
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