At the April 30, 2019 Buda City Council meeting, the Council requested amendments to the Buda Economic Development Corporations (BEDC) bylaws. The Buda City Council requested amendments to the BEDC’s bylaws in order to improve communication and provide greater transparency. The Buda City Council has referred the requested amendments to the new BEDC Board of Directors for consideration. The requested amendments include: per State law, the Buda City Council is to approve all programs and expenditures of the Corporation and annually review any financial statements of the corporation; it is entitled access to all of the Corporation’s books and records at all times; only three of the directors of a Type B corporation (BEDC) must be persons who are not employees, officers or members of the governing body of the authorizing municipality (Texas Government Code, Section 501.073, Section 505.052(c)).
The Buda City Council looks forward to a productive working relationship with the new Board of Directors of the BEDC. The Buda City Council is entrusted with providing oversight of the BEDC and it is crucially important that we work together in good faith with a common mission of meeting the needs of the Buda citizens. In accordance with Texas State Law, the Buda City Council approves all programs and expenditures of the Buda EDC and annually reviews any financial statements of the Corporation. Through open lines of communication and transparency, the City of Buda and the new BEDC Board of Directors will work together to keep our community economically viable and competitive with other cities in the region. (Texas Government Code, Section 501.073)
Resolution of the City Council of the City of Buda Concerning Actions of EDC Board of Directors on April 15, 2019
Letter from Mayor George Haehn to Former EDC Board of Directors President Jose Montoya
Understanding Type B Economic Development Corporations: City Council Oversight Responsibilities and Eligible Type B ProjectsType B Corporations
The Texas Legislature adopted the Development Corporation Act of 1979 to give cities the ability to raise funds and finance economic and community development efforts through the creation of economic development corporations. The Texas Local Government Code chapters 501, 504, and 505 define the scope of economic development corporations.
Corporations are either identified as “Type A” or “Type B” organizations depending on the authority approved by the voters as included in the election ballot language and by the type of sales tax revenue uses approved by the voters.
The voters of the City of Buda approved the formation of the Buda Economic Development Corporation (Buda EDC) in 2001. The Buda EDC is considered a Type B (formerly 4B) corporation. The Buda EDC’s revenue is funded by a one-half cent sales tax collection.
Eligible Type B ProjectsType B corporations may pay for land, buildings, equipment, facilities, targeted infrastructure, and improvements for the following:
· Professional and amateur sports and athletic facilities, tourism and entertainment facilities, convention facilities, and public parks
· Related store, restaurant, concession, parking, and transportation facilities
· Related street, water, and sewer facilities
· Affordable housing
To promote and develop new and expanded business enterprises that create or retain primary jobs, a Type B EDC may fund:
· Public safety facilities
· Recycling facilities
· Streets, roads, drainage, and related improvements
· Demolition of existing structures
· General Municipally owned improvements
· Maintenance and operating costs associated with projects
A Type B EDC may also seek voter approval to spend Type B sales tax funds for a water supply, water conservation program, or cleanup of contaminated property.
Buda City Council Oversight Responsibilities
Per Texas State Law, the Buda City Council is to approve all programs and expenditures of the Buda EDC and annually review any financial statements of the corporation; it is entitled access to all of the Corporation’s books and records at all times; (Texas Government Code, Section 501.073)
In accordance with Buda EDC bylaws, Directors shall be appointed by and shall serve at the pleasure of the Buda City Council.