08.06.19 Work Session - Laserfiche WebLink

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City Council Meeting Minutes August 6, 2019 ❑ Chapter 313 - creates a state program for certain large businesses to limit the appraised value on their property for the purposes of local Texas public school district property taxes. ❑ Opportunity Zones- The Opportunity Zones incentive is a new community investment tool established by Congress in the Tax Cuts and Jobs Act of 2017 to encourage long-term investments in low-income urban and rural communities nationwide. Opportunity Zones provide a tax benefit for investors to re -invest their unrealized capital gains into dedicated Opportunity Funds ❑ In 1979 the State Legislature passed the "economic development sales tax", allowing smaller cities to adopt a sales tax to fund economic development corporations. ❑ 4A Sales Tax - created to fund industrial development project such as business infrastructure, manufacturing and R&D ❑ 4B Sales Tax - created to fund Type A eligible projects as well as parks, museums, sports facilities and affordable housing ❑ Local sales tax can not exceed 2%. ❑ In 1987, San Marcos voters approved a 1/2 cent sales tax for property tax reduction for both the city and the county, thus taking San Marcos to the 2% cap. ❑ San Marcos is not eligible for the 4A/413 ED sales tax. Chapter 380's are the primary tool that the City of San Marcos uses. The City of San Marcos Economic Development Supplemental Fund was created to simulate 4A/413 funding. Mr. Parker provided the incentive tools used by other cities within the State. He then discussed the Economic Development policy process, when it was developed, and how projects are scored and reviewed. The Criteria is measured by the following: ❑ Economic impact analysis which evaluates jobs and economic activity associated with project ❑ Interviews and individual research associated with the firm ❑ Number and percentage of jobs earning a family living wage plus benefits ❑ Average/median wages compared to county average ❑ Estimate of percentage of hiring locally ❑ Third party reports, legal actions/judgments regarding firm Mr. Lumbreras continued with the presentation and spoke on the Economic Development Position that is being created. This position will have the following responsibilities: City of San Marcos Page 3