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Glossary Plus

On This Page: glossary, definitions, documents, research

Finance, Budgeting, and Taxes; Building and Business Development; Legislative and Govt; Parks

Latest Update: Saturday, 09 September, 2023

Tags: #Parks, #DevelopmentNorth, #DevelopmentSouth #Finance

Other Glossaries

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Finance, Budgeting, and Taxes

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  • Ad Valorem Tax / Property Tax (Also see Tax Rates.)

    • The Latin phrase ad valorem means "according to value." An ad valorem tax is a tax based on the assessed value of an item, such as real estate or personal property. The most common ad valorem taxes are property taxes levied on real estate. However, ad valorem taxes may also extend to a number of tax applications, such as import duty taxes on goods from abroad. In Willow Park, the valorem tax refers to the property tax placed, by the taxing authority, on the appraised property value of your residential or commercial real estate property. 

    • These rates are calculated by dividing the total amount of taxes by the current taxable value with adjustments as required by state law. The rates are given per $100 of property value

    • Research: Willow Park Civics > City Documents > Finance - Budget, Taxes, Debt

 

  • Ad Valorem Tax Rate / Property Tax Rate (Also see Tax Rates.)

    • The city is required to provide information about two tax rates used in adopting the current tax year's tax rate. In each case, these rates are calculated by dividing the total amount of taxes by the current taxable value with adjustments as required by state law. The rates are given per $100 of property value.

    • The no- new-revenue tax rate would impose the same amount of taxes as last year if you compare properties taxed in both years. 

    • In most cases, the voter-approval tax rate is the highest tax rate a taxing unit can adopt without holding an election. 

    • Research: Willow Park Civics > City Documents > Finance - Budget, Taxes, Debt

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  • Appraised Property Value / Property Appraisal  / Current Taxable Property Value

    • Texas Comptroller > Property Tax Assistance > About ​> Property Tax Administration in Texas

      • Property taxes – also called ad valorem taxes – are locally assessed.

      • Texas does not have a state property tax.

      • Local appraisal districts appraise and value property located in the county and local taxing units set tax rates and collect property taxes based on those values.

      • Texas law allows the Texas Comptroller of Public Accounts to provide technical assistance to local governments and taxpayers on property tax issues, but does not grant jurisdiction to intervene in local tax matters.

      • I. Local Appraisal System Appraisal districts are responsible for appraising all property subject to property taxes in Texas at its market value as of Jan. 1. Market value is the price at which a property would sell in a prevailing market if left exposed for sale for a reasonable time period, the buyer and seller know all uses, purposes and restrictions and neither party is in a position to take advantage of the other There are three standard approaches used to determine market value…

    • Parker County Appraisal District The website of the Parker County Appraisal District allows individual property owners to easily access information regarding your property taxes, including information about proposed tax rates and scheduled public hearings of each entity that taxes your property.

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  • Bond. A bond is a debt instrument, a loan used by large entities, corporations, or governments to raise capital, which they require for operating their business, and it’s done by selling “IOUs” to the public. A bond is highly tradable in the market, for example the bond holder can sell it in the market without waiting for its maturity, See Loan and Grant. 

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  • Certificate of Obligation, CO

    • Comptroller of Texas > Economics > Certificates of Obligation ​

      • Texas state law generally requires our local governments to seek voters’ approval before issuing debt that will be repaid from tax revenues. And every year, in May and November, voters across the state are asked to approve new bond debt for the construction of city and county buildings, hospitals, schools, water infrastructure and much more.

      • One common form of borrowing, however, represents an exception to this rule: certificates of obligation (COs), which some local governments can use to fund public works without voter approval. (COs do not require voter approval unless 5 percent of qualified voters within the jurisdiction petition for an election on the spending in question.)

      • COs provide local governments with important flexibility when they need to finance projects quickly, as with reconstruction after a disaster or as a response to a court decision requiring capital spending. But the way COs circumvent voter approval has made them controversial in the past, leading to 2015 legislation restricting their use.

      • Given their streamlined adoption process, COs can be particularly attractive when a local government wishes to, for example, take quick advantage of lower interest rates, purchase a newly available property or come into compliance with a federal or state regulation.

      • CO debt rising fast. (See complete article for details.)

    • ​Texas Public Policy Foundation > What are Certificates of Obligation & Who is Using Them?  

      • ​More specifically, certificates of obligation (COs) can be used “to fund the construction, demolition, or restoration of structures; purchase materials, supplies, equipment, machinery, buildings, land and rights of way; and pay for related professional services.” As provided for in Local Government Code 271, Subchapter C, COs are usually payable from property tax revenues or other taxable sources.. While COs provide local governments with a flexible financing option to handle unforeseen circumstances or emergency situations, they are not restricted to only that use—which has been the source of recent controversy..

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  • Economics 

    • Classical Economics. The basic tenant of a classical political economy is that free markets can manage themselves, also referred to as “laissez-faire,” or “let it be.” Classical Economics was introduced by Sir Adam Smith, as the new United States were establishing their new constitution, and later developed in the works of David Ricardo, John Stuart Mill, David Ricardo, Thomas Malthus, etc. 

    • Keynesian economics argues that the driving force of an economy is aggregate demand—the total spending for goods and services by the private sector and government. In the Keynesian economic model, demand is crucial but often erratic and difficult to predict. Demand or spending determines all economic outcomes, from production to employment rate. John Maynard Keynes developed Keynesian economics in an attempt to explain the 1930’s US Great Depression, and Keynesian economics was quickly used by U.S. President Franklin Roosevelt to justify his “New Deal”  to grow the federal government in order to intervene in local and state economies with massive federal spending. 

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  • Grant. A grant is a gift of funds or assets of value, often with usage requirements. The entity giving the funds is the grantor and the entity receiving the funds is the grantee. The grantor of the grant may place usage and time qualifications on the funds. State and federal government grants often require grant compliance audit and reports by the grantee . See Loans and Bonds. 

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  • Interest and Sinking (I&S) Fund

    • I&S is a type of fund that is created and set up purposely for repaying debt. An I&S fund contains money set aside or saved to pay off a debt or bond. A city that issues debt will need to pay that debt off in the future, and the sinking fund helps to soften the hardship of a large outlay of revenue. 

    • The specific definition and requirement for I&S Funds are included in the bond covenants or loan agreement. The concept is both a legal requirement, and an economic requirement. The legal requirements define what is involved (i.e. how much, when, and from what source). The economic component is defined by a calculation based on the legal requirement (i.e. how much money to set aside).

    • Cities derive their authority to issue bonds from the Texas Constitution, Article 11, Sections 5 and 7 

    • Research: 

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  • Loan. A loan is a debt instrument for funds or assets between the lender of the funds and the borrower or receiver of the funds. In a loan, the borrower is required to repay the money to the lender, with interest and within a certain period of time. If the borrower fails to repay, the lender may have the right to take the borrower’s asset if they put up collateral;  collateral is something used as security, in case the loan is not repaid.  Loans are not tradable generally in the market. Also, see Grant and Bond. 

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  • Tax Rates

    • No-new-revenue tax rate. The Texas Comptroller defines the No New Revenue Rate as, "The no-new-revenue tax rate enables the public to evaluate the relationship between taxes for the prior year and for the current year, based on a tax rate that would produce the same amount of taxes if applied to the same properties taxed in both years... The formula assumes that if values increase, the tax rate should decrease to create the same amount of revenue as it did the year before, or if values decrease, the tax rate will increase to produce the same amount of revenue."The no-new-revenue tax rate enables the public to evaluate the relationship between taxes for the prior year and for the current year, based on a tax rate that would produce the same amount of taxes if applied to the same properties taxed in both years... The formula assumes that if values increase, the tax rate should decrease to create the same amount of revenue as it did the year before, or if values decrease, the tax rate will increase to produce the same amount of revenue."

    • Voter-approval tax rate. The Texas Comptroller defines Voter-approval tax rate as, “Taxing units need to get voter approval before they exceed the tax rate. The maximum rate varies based on the type of jurisdiction:​

      • Cities and counties can increase the tax rate three and half percent for operating expenses.

      • Junior college districts, hospital districts, and special taxing units can increase their tax rates up to eight percent for operating expenses. 

      • School district funding calculations and the debt tax rate influence the voter-approval tax rate for school districts.

    • Research: 

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Building and Business Development 

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  • ETJ Extraterritorial Jurisdiction

    • What Is An ETJ?, Texas City Limits Coalition, September 2019

    • ​Texas Municipal League  > September 2019 Legal Q&A > What is the extraterritorial jurisdiction and why was it created? Annexation is the process by which a city extends its municipal services, regulations, voting privileges and taxing authority to new territory. Cities annex territory to provide urbanizing areas with municipal services and to exercise regulatory authority necessary to protect public health and safety. Annexation is also a means of ensuring that residents and businesses outside a city's corporate limits who benefit from access to the city's facilities and services share the tax burden associated with constructing and maintaining those facilities and services. Annexation and the imposition of land use controls may also be used as a growth management technique to implement a comprehensive plan.

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  • Comprehensive Plan 2014  
       The Comprehensive Plan for the City of Willow Park will guide and direct future development decisions. The Comprehensive Plan tells the story of who Willow Park is and what it wishes to become as it grows and matures. This document is intended to serve as a flexible long‐range planning tool that guides the growth and physical development of Willow Park for ten years, twenty years or an even longer period of time.
       A comprehensive plan is not a zoning ordinance, but rather it is a high‐level tool utilized by the City to guide future development decisions. As new development, zoning requests and other development decisions are made, the comprehensive plan helps to ensure orderly and coordinated growth. Determining what land uses are appropriate within Willow Park, and where such land uses should be located, helps to protect the integrity of the City’s neighborhoods and corridors. Ultimately, coordinated land use patterns help to protect private property by maintaining and enhancing value and protecting property from incompatible uses.

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  • Impact Fee

    • What Is an Impact Fee?

      • An impact fee is typically a one-time payment imposed by a local government on a property developer.

      • The fee is meant to offset the financial impact a new development places on public infrastructure.

      • Public infrastructure includes roads, schools, parks, recreational facilities, water and sewerage, among other services.

      • Impact fees are determined based on the size of the new development, the cost of implementing it, and how much it will impact the surrounding area.

    • How an Impact Fee Works 

      • Impact fees are a popular alternative to raising property taxes to pay for new infrastructure. New infrastructure is sometimes paid through a special assessment tax, which is levied against taxpayers within a designated district.

      • However, people who already own property in a rapidly developing area would rather see the developer pay an impact fee. This is because the developer is forced to cover the cost of new infrastructure necessitated by their development, rather than the taxpayers already living there.

    • (Source: Investopedia ​   

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  • Planned Development 

    • City of Willow Park Code of Ordinances  > Chapter 14 Zoning > Article 14.10 New Development Site Plan Process

      • Sec. 14.10.001 Intent of “PD” Planned Development District
        ​(a) The “PD” (Planned Development) District is intended to be used for the development of large or mixed use parcels of land and for smaller parcels where dissimilar uses may require special controls to avoid interference with existing or planned uses. Development within a Commercial, Local Retail, Office, or Residential-3 District must be approved through the site planning process. Commercial development may be allowed under temporary zoning controls (see article 14.13 of this chapter) with the approval of the city council; however, the approval of a specific use permit must be based on and accompanied by approval of a preliminary site plan as described in this article.

      • Sec. 14.10.002 General “PD” regulations

      • Sec. 14.10.003 “PD” procedures and requirements

      • Sec. 14.10.004 Conceptual “PD” plan

      • Sec. 14.10.005 “PD” site plan approval

      • Sec. 14.10.006 Amendments to adopted “PD” site plans

      • Sec. 14.10.007 “PD” site plan information

      • Sec. 14.10.008 “PD” administration

      • Sec. 14.10.009 “PD” enforcement

    • Land Use Regulation for Texas Cities, Brad Young, Bickerstaff Heath Delgado Acosta LLP 21 February 2013. Some cities allow for special districts (often called “Planned Development Districts”) that provide even greater flexibility for land use than is available in a normal zoning district. For example, a planned development district may provide for a mix of residential, retail, and professional office uses on terms and conditions that the city includes in the planned development district ordinance. Two pitfalls that cities must be careful to avoid in zoning are “spot zoning” and “contract zoning.” “Spot zoning” is the illegal practice of zoning a single tract of land in a manner that is incompatible with the surrounding area and in a manner that is incompatible with the city’s zoning ordinance and comprehensive plan. “Contract zoning” is an illegal agreement between the city and a property owner to adopt a certain zoning classification in exchange for certain promises by the property owner. Because contract zoning usurps the city council’s legislative function, the council cannot enter into such a contract.

    • Introduction to Planned Development Zoning, Frank Turner, FAICP, Terry D. Morgan, Esq. A look at how planned development zoning was developed and initially used, and how it has come to be used in Texas cities. Planned development zoning and other flexible zoning techniques were developed to overcome the rigidity of traditional zoning.

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  • Special Use Permit / Specific Use Permit

    • What Is a Special Use Permit? A special use permit allows a parcel of land or property to be used in a manner that deviates from normally accepted activities in that area. In other words, the special use permit creates exceptions to zoning regulations and ordinances. These permits are generally issued and overseen by local zoning bodies and authorities. An example of a special use permit is where the zoning authorities allow a business to operate in an area that is not normally marked for business activities (such as in a residential area). Another example is where a church is allowed to operate in an area otherwise marked for businesses.

    • Planning and Zoning Applications > Willow Park Special Use Permit Application

    • ​City of Willow Park Code of Ordinances  > Chapter 14 Zoning > Article 14.10 New Development Site Plan Process

      • Sec. 14.10.001 Intent of “PD” Planned Development District 

        • (a) The “PD” (Planned Development) District is intended to be used for the development of large or mixed use parcels of land and for smaller parcels where dissimilar uses may require special controls to avoid interference with existing or planned uses. Development within a Commercial, Local Retail, Office, or Residential-3 District must be approved through the site planning process. Commercial development may be allowed under temporary zoning controls (see article 14.13 of this chapter) with the approval of the city council; however, the approval of a specific use permit must be based on and accompanied by approval of a preliminary site plan as described in this article.

      •  ARTICLE 14.13 SPECIFIC USE PERMITS > Sec. 14.13.002    Specific use permit regulations

        • (a) In recommending that a specific use permit for the premises under consideration be granted, the planning and zoning commission shall determine that such uses are harmonious with and adaptable to building structures and uses of abutting property and other property in the vicinity, and with the requirements for the paving of streets, alleys and sidewalks, means of ingress and egress to public streets, provisions for drainage, adequate off-street parking, protective screening and open space, heights of structures, and compatibility of building construction.

  • Building Inspection / Building Permit - in progress

    • On 13 Dec, 2021, at 9:52 AM, Bill Funderburk wrote: The City of Willow Park uses a third-party inspection firm, Bureau Veritas, for all building inspections, which includes electrical, plumbing, and mechanical. The city entered into an agreement with Bureau Veritas in August 2014, and they also provide residential and commercial plan review. Once plans have been reviewed and approved by Bureau Veritas permits are issued by the City Development Department. Bureau Veritas inspectors are certified under the International Building Codes and the Texas State Board of Plumbing Examiners. The one exception, the Fire Department enforces the Fire Code which includes plan review and inspections. The Fire Chief has authority to enforce this code. Bill Funderburk Assistant City Manager City of Willow Park, Texas

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Legislative, Governmental

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  • Executive Session during Council Meeting 

    • Executive Session is the closed portion of a legislative open meeting "in which minutes are taken separately or not at all, outsiders are not present, and the contents of the discussion are treated as confidential (see in camera). In a deliberative assembly, an executive session has come to mean that the proceedings are secret and members could be punished for violating the secrecy."  Robert's Rules of Order newly revised 

    • Open Meeting Act Handbook 2022, TX Attorney General 

    • Section 551 of the Texas Open Meetings Act 

    • § 551.071. Texas Government Code. Consultation with Attorney. The City Council may convene in executive session to conduct a private consultation with its attorney on any legally posted agenda item, when the City Council seeks the advice of its attorney about pending or contemplated litigation, a settlement offer, or on a matter in which the duty of the attorney to the governmental body under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflicts with the provisions of Chapter 551, including the following items:  A. § 551.071. Texas Government Code. Consultation with Attorney.  / B. Any Posted item

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  • Interlocal Agreement 

    • ​​Texas State Government Code >Title 7. Intergovernmental Relations > Chapter 791. Interlocal Cooperation Contracts > Subchapter A. General Provisions

    • Texas State > Texas School of Safety Center > 2.3 Interlocal Agreement

    • Texas Department of Information Resource > Interstate Cooperation Contracts (ICC) An Interlocal agreement is used when a district is performing for or receiving a service from a local governmental entity, i.e.: a city, a county, or education service center (ESC). These agreements are pursuant to the Interlocal Cooperation Contracts Act, Chapter 791 of the Texas Government Code. The provision is designed to increase the efficiency and effectiveness of local governments by authorizing them to contract with each other.

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  • Ordinace 

    • City of Willow Park Code of Ordinances  

    • Ordinance 

      • An ordinance is considered and passed only the the city council and recorded in the City of Willow Park Code of Ordinances.   

      • Texas State Law Library > Municipal Ordinance 
            In Texas, the Local Government Code [Texas Constitution and Statutes outlines a municipality's authority to enact ordinances within its jurisdiction. There are different types of municipalities (e.g., home rule, general law), and they each have specific procedures for enacting ordinances. These ordinances are usually enforced by local law enforcement agencies such as city police departments.

    • Ordinance versus Resolution 

    • Ordinances, Resolutions, and Other Legislation, US Legal .com   

      • ​An ordinance is generally used to designate a local law of a municipal corporation, duly enacted by the proper authorities that prescribe general, uniform, and permanent rules of conduct, relating to the corporate affairs of the municipality. A local ordinance is a municipal legislative enactment.  An ordinance passed in pursuance of express legislative authority is a law and has the same effect as a local law, and it may prevail over a general law upon the same subject.  Therefore, an ordinance is equal to a municipal statute and it governs matters not already covered by federal or state law.
           It is to be noted that a municipal ordinance differs from a resolution. They are two significantly distinct government actions. The term “ordinance” means something more than a mere verbal motion or resolution. It must be carried out with the formalities, solemnities, and characteristics of an ordinance, as distinguished from a simple motion or resolution.
           Whereas, a resolution encompasses all actions of the municipal body other than ordinances. A resolution deals with matters of a special or temporary character and an ordinance prescribes some permanent rule of conduct or government to continue in force until the ordinance is repealed. An ordinance is a legislative act and a resolution is an expression of opinion or mind or policy concerning some particular item of business coming within the legislative body’s official cognizance. It is to be noted that an ordinance can be repealed only by another ordinance and not by resolution.

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Parks 

  • Parks and Trails Master Plan, October 2019 
       While the 2014 Comprehensive Plan [See definition on this page.] focuses on the broader vision, the Parks and Trails Master Plan delves deeper into the contributing relationship, parks and trails have on the City’s vision and how they can be implemented. Parks and open space were identified as strong assets of the community, while also contributing to quality of life, encouraging further development in the 2014 plan.
       This master plan will evaluate both citizen demand and opportunities for parks, trails and recreation, paring them with strategies and guidelines for development.
       The vision for the Willow Park Parks and Trails Master Plan is a citizen driven plan, that meets the needs of the city and aligns itself with the future demand of its residents. Taking advantage of the City’s unique characteristics and historical character, the master plan is a result of imagining the City’s future and aligning its priorities to promote quality of life, preserve natural resources and attract future residents.

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