The Fulshear City Council reviewed proposed revisions to the bylaws for the City of Fulshear Development Corporation (Type A) and the Fulshear Development Corporation (Type B) and voted to postpone formal action while staff and the EDC refine language on several points.

City staff provided a redline copy of the EDC bylaws and a clean version that the EDC had approved. Staff said the bylaws dated from 2007 and needed updates to reflect current statute and to remove redundant or inefficient provisions.

Why it matters: The EDCs play a role in economic development projects and in administering budgets. Bylaw language determines internal processes for resignations, filling vacancies, committee work and unbudgeted expenditures.

Key discussion points:
- Voluntary resignation notice: Article 4, section 10 currently requests a two-month notice for voluntary resignations. Council members said the provision functions as an aspirational expectation but asked for clearer language about how resignations take effect and whether the EDC may accept immediate resignations when necessary.
- Vacancy appointments: The draft says “council shall make the appointment” to fill vacancies. Council members suggested changing the language to “may” to avoid implying a mandatory council action in all circumstances and to align with charter and practice.
- Unbudgeted expenditures and caps: Article 9, section 5 allows unbudgeted expenditures up to 2 percent of the EDC budget without council approval. Council members discussed whether that percentage should be paired with a firm dollar cap and proposed aligning the cap with the city manager’s existing authority (a $50,000 ceiling was discussed). Council members also sought clarity whether the 2 percent limitation applied per transaction or in the aggregate.

Council’s action: Councilmember motioned to postpone both resolutions — resolution 2025-6661 (Type A bylaws) and resolution 2025-6662 (Type B bylaws) — to a future meeting. The motions to postpone were seconded and carried; the items will return after the EDC considers and incorporates the requested clarifications.

Next steps: Staff said they would return the proposed edits to the EDC for revision, and legal counsel offered to add clarifying language as requested (for example, specifying the effect of resignation notices and whether “shall” or “may” should be used regarding council appointments).

Council members also discussed including a statutory reference (Texas Local Government Code chapters 504 and 505) in the bylaws to help readers locate governing qualification and residency rules for EDC directors. That change was suggested and can be added during revision.