Council to ask voters about creating an MDD and reallocating development sales taxes

Council heard a presentation from staff on a proposal to reorganize local economic-development funding and to ask voters to approve two ballot propositions. Nathan summarized the existing structure (a type A Economic Development Corporation and a type B Community Development Corporation, each administered by seven-member boards and funded historically by local sales-tax increments) and proposed creating a municipal development district (MDD) that could be funded by up to 0.5¢ sales tax and cover both town limits and parts of the extraterritorial jurisdiction (ETJ). "The proposal would be to dissolve the EDC and CDC, reallocate the maximum 0.5¢ to the MDD," Nathan said, adding that some EDC/CDC obligations would remain and could be transferred by interlocal agreement.

Nathan explained the electoral mechanics: two propositions—Proposition A to create the MDD (voters in town limits and ETJ would vote) and Proposition B to abolish the EDC/CDC sales-tax allocations (only town voters). Council later approved a motion to place the propositions on a special election to coincide with the May 2 general election. Council members asked clarifying questions about ETJ inclusion, potential exclusion of the Belmont Freshwater Supply District, and options for dedicating the additional 0.25¢ to the general fund for roads or other uses. The motion to order the special election carried unanimously.