Odessa adopts resolution to respond to Attorney General on tax-rate matter; appoints James D. Parker as city attorney
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Summary
Council adopted a resolution authorizing the mayor, city manager and city attorney to negotiate and file documents related to an Attorney General inquiry about the city's 2025 tax rate and Senate Bill 1851. The council also appointed James D. Parker as city attorney effective Dec. 1, approving a $250,000 salary and standard benefits.
The Odessa City Council on Oct. 28 adopted a resolution authorizing the mayor, city manager and city attorney to negotiate, execute and file any documents related to Chapter 103 of the Texas Local Government Code, Senate Bill 1851, an Oct. 2, 2025 letter from the Texas Attorney General, the mayor's Oct. 16, 2025 letter to the Attorney General, and the city's 2025 real property tax levy.
Keith, the city's interim attorney, told the council the relevant law (Chapter 103) has long required timely audits and financial statements and that Senate Bill 1851 added a sanction limiting a jurisdiction to a no-new-revenue tax rate if it fails to file within the statutory period. He said the Attorney General's Oct. 2 letter directed the city not to implement the adopted rate while the AG completes an investigation.
Keith said the council had adopted the tax rate on Sept. 17 and Sept. 23, and that he does not see a statutory mechanism to retroactively reverse an adopted rate absent an agreed judgment, court order or further guidance from the Attorney General. He read and emphasized the mayor's Oct. 16 letter language saying the city is "receptive" to meeting with the Attorney General and noted any agreed judgment would require council approval.
Council added a friendly amendment to the resolution to explicitly include the city attorney among the authorized signatories. The amended resolution passed unanimously.
Separately, the council approved a resolution appointing James D. Parker as city attorney effective Dec. 1, 2025, and approved an employment agreement that staff described as providing a $250,000 annual salary, standard benefits (health insurance, TMRS), a $600 monthly car allowance, reimbursable State Bar and Texas City Attorneys Association fees, and up to $6,000 in moving-expense reimbursement. The agreement requires the city attorney to reside in the City of Odessa during the term and reflects a statutory 20-week severance-posting requirement for future contracts noted by staff. The appointment passed unanimously.
The council also instructed staff to post the employment agreement on the city website as required by statute.

