01082007 Regular Meeting - Laserfiche WebLink

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Mr. Guerrero moved for approval of Ordinance on first reading, and Ms. Couch seconded the motion. Mr. Thomaides stated as a past member of the Drainage Advisory Board. He stated good drainage is important. Ms. Robertson stated the paperwork states that this division will provide city maintenance for approximately 34 miles of storm sewers and six miles of open drainage channels. Mr. O'Leary stated the channel mowing and vegetation control will remain under a separate budget line item managed by the Parks and Recreation Department. Ms. Robertson inquired to whether the new division will maintain the storm sewers. Mr. O'Leary stated this division will maintain the storm sewer. Mr. Bose inquired to when the other drainage issues for Thorpe Lane will be discussed. Mr. O'Leary stated a broader discussion will be taken up during the Visioning Workshop. The Council then voted unanimously for approval of Ordinance on first reading. Mayor Narvaiz introduced consideration of approval of an Ordinance on first reading, the caption which was read as follows: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN MARCOS, TEXAS RESCINDING AND REPEALING ORDINANCE 1989 -70 PERTAINING TO TAXATION OF FREEPORT PROEPRTY FOR TAX YEARS 2007 AND THEREAFTER; AMENDING ARTICLE 4 OF CHAPTER 78, AD VALOREM TAXATION, OF THE CITY OF SAN MARCOS CODE OF ORDINANCES TO ADD A NEW SECTION, EXEMPTION OF FREEPORT PROPERTY; AND PROVIDING AN EFFECTIVE DATE. Mr. Jones moved for approval of Ordinance on first reading, and Mr. Guerrero seconded the motion. Mr. O'Leary stated in 1989 the Texas constitution was amended to allow local taxing entities to exempt goods in transit, known as Freeport property. He stated at that time, the City of San Marcos adopted an Ordinance which allowed this property to continue to be subject to ad valorem taxes. He also stated the City would now like to rescind that Ordinance so that these goods will now be exempt from ad valorem taxes. A survey has been conducted by Economic Development San Marcos of the San Marcos Manufacturers Association members and concludes that the current impact to the City of this exemption would be approximately $202,100.00 with a high estimate of $222,310.00. Once adopted, the Freeport exemption is irrevocable and any future Freeport property would be exempt from ad valorem taxes. Mr. Jones inquired whom would use this tax. Kim Moore, Economic Development Director, stated the main companies who would use Freeport exemption are auto, aviation, warehouse businesses which manufacture or hold various types of goods that are detained in Texas for a short period of time (175 days or less). The goods must be in Texas only for a limited purpose, such as storage or factory processing. This exemption was proposed to enhance the ability of certain areas to attract warehouse and distribution center facilities by offering a special property tax exemption for the goods they typically handle. Mr. Thomaides stated he would like to have additional time to