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Council approves joint election agreement; votes to call MDD election for ETJ sales tax on May 3
Summary
Council approved a joint election agreement with the school district to share polling costs and voted to call a May 3, 2025 election on creating a municipal development district (MDD) and imposing a 0.5% sales tax in the city's ETJ.
City staff described two linked election items to the council and the council approved both on Feb. 11.
A city staff member told the council the Jacksonville Independent School District may hold an election and the city proposed a joint-election agreement splitting polling costs and equipment so the municipal development district (MDD) election could be held at the Jacksonville Public Library if the school district also schedules voting. The agreement passed on a motion by Councilwoman Leticia Horace, seconded by Councilwoman Mindy Gellert; the motion carried with no recorded opposition.
On the ordinance calling a special election, staff read the ordinance caption: an election to be held Saturday, May 3, 2025, to consider creating a City of Jacksonville municipal development district and imposing a sales-and-use tax of one-half of 1% (0.5%). Staff explained that state law allows a city to establish an MDD to capture sales tax from businesses in the city's extraterritorial jurisdiction (ETJ), which in Jacksonville extends one mile beyond city limits. The presenter said the ETJ area includes roughly 28 businesses that generated about $80,000 in sales-tax revenue in fiscal year 2024.
The ordinance was moved by Councilman Rob Goin and seconded by Councilwoman Leticia Horace. Council members asked for clarification that only registered voters who reside within the ETJ would be eligible to vote in the MDD election; staff confirmed that voting eligibility will be determined by the county elections office and requires residency in the ETJ. Council adopted the order to call the election with no recorded opposition.
The staff presentation said MDD revenue must be collected and spent inside the MDD area; typical project ideas discussed previously include improvements at Love's Lookout, potential mountain-bike facilities, a boat ramp and other projects on city-owned ETJ properties. If approved by ETJ voters, an MDD board (minimum four members) would be established to oversee funds authorized for use inside the MDD area.
