BACKGROUND/DISCUSSION:
In 2001 the Texas Legislature passed House Bill 445 allowing cities, with voter approval, to dedicate a portion of their local sales tax rate to street maintenance and repairs. The sales tax may be used only to maintain and repair existing municipal streets. Saginaw voters approved the Street Maintenance Sales Tax in May 2007 (1/8 cent). The tax expires four years after it takes effect unless voters reauthorize it. It was reauthorized by voters in 2011, 2015, and 2019.
Ordinance No. 2023-06 calls the Special Election to be held on May 6, 2023 for voters to consider the reauthorization of the Sales and Use Tax for Street Maintenance. The proposed ordinance has been reviewed by the City Attorney.
Note: The total sales tax in Saginaw is 8.25%. The State collects 6.25% and the City collects 2%. Of the City's 2%, one (1) cent goes into the City's General Fund, 1/8 cent goes to the Street Maintenance Fund, 3/8 cent is dedicated to the Crime Control and Prevention District and 1/2 cent is dedicated to the reduction of property taxes.
FINANCIAL IMPACT:
N/A The purpose of this item is only to call the election.
RECOMMENDATION:
Staff recommends approval of Ordinance No. 2023-06 as presented.