RESILIENT TEXAS CITIES - OFFICIAL PUBLICATION OF THE TEXAS MUNICIPAL LEAGUE
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OFFICIAL PUBLICATION OF THE TEXAS MUNICIPAL LEAGUE
March 2022
VOLUME CIX
NUMBER 3
RESILIENT
TEXAS CITIES
CONTENTS H FEATURES
Official Publication of the
Texas Municipal League.
14 32
This publication assumes no responsibility Texas Municipal League Institute Recognizes Tires-to-Go in San Angelo
for statements made by contributors Elected City Officials
34
in signed articles. It is not operated for
pecuniary gain. 22 Retail in 2022 and Beyond
The Texas Economy: Full Recovery on the
Horizon 36
Editor Christina Corrigan
The Hotel Tax “Two-Step”
Creative Manager Jennifer Stamps
Designer Will Bowling 24
Advertising Sales Gray Gilson Fiscal Conditions Survey: Cities Regaining
Printing Publication Printers Corp. Strength
Texas Town & City (ISSN 1084-5356) is 28
published monthly except October for $30 It Was Always Fate
per year ($3.00 per single copy) by the
Texas Municipal League, 1821 Rutherford
Lane, Suite 400, Austin, Texas 78754-5101.
Periodicals Postage Paid at Austin, Texas
and additional mailing offices.
CONTENTS H IN EACH ISSUE
POSTMASTER:
Send address changes to Texas Town & City,
1821 Rutherford Lane, Suite 400, Austin,
Texas 78754-5101. 5 16
Message from the President Small Cities’ Corner
Section 305.027, Government Code, requires
legislative advertising to disclose certain 6 18
information. TML News Legal Q&A
A person who knowingly enters into a 8 38
contract or other agreement to print, publish, Risk Pool News Career Builder
or broadcast legislative advertising that
does not contain the required information 10 39
commits a Class A misdemeanor offense. Health Pool News Instagram Highlights
Texas Town & City contains material which
is legislative advertising as defined by law in 12
the state of Texas. City Lights
Mr. Bennett Sandlin has entered into an
agreement with Publication Printers Corp.
for the printing of Texas Town & City
magazine. Mr. Sandlin represents the ABOUT THE COVER
member cities of the Texas Municipal
League. The City of Fate is a leader in
incremental, fiscally responsible growth
TEXAS TOWN & CITY • 3 • MARCH 2022
ABOUT H TML BOARD OF DIRECTORS H TML
The Texas Municipal League exists solely TEXAS MUNICIPAL LEAGUE BOARD OF DIRECTORS
to provide services to Texas cities. Since PRESIDENT 15-Merlyn Holmes, Councilmember, Victor Conley, Fire Chief, Irving
its formation in 1913, the League’s mission Martha Castex-Tatum, Kilgore Texas Fire Chiefs Association
Vice Mayor Pro Tem, Houston
has remained the same: to serve the needs 16-Larry Spears Jr., Mayor, Orange
Amanda Campos, City Secretary,
and advocate the interests of its members. Burleson
PRESIDENT-ELECT
Membership in the League is voluntary AFFILIATE DIRECTORS Texas Municipal Clerks
David Rutledge,CMO
Rolandrea Russell, Planner, Frisco Association, Inc.
and is open to any city in Texas. From the Mayor, Bridge City
American Planning Association
original 14 members, TML’s membership has Texas Chapter Lisa Norris, Human Resources/
IMMEDIATE PAST PRESIDENT Civil Service Director, Grand Prairie
grown to more than 1,150 cities. Over 16,000
Holly Gray-Moore, Texas Municipal Human Resources
mayors, councilmembers, city managers, Mayor Pro Tem, Roanoke Marissa Ximenez, Councilmember,
Association
Floresville
city attorneys, and department heads are
Association of Hispanic Municipal
member officials of the League by virtue of Maria Redburn, Library Director, Bedford
PAST PRESIDENTS Officials
Texas Municipal Library Directors
their cities’participation. Mary M. Dennis, CMO, Mayor, Live Oak Association
Selso A. Mata, Director of Building
Leonard Reed, CMO, Mayor, Willis
Inspections, Plano
The League provides a variety of services Henry Wilson, Mayor, Hurst Michael Thane, Director of Utilities,
Building Officials Association of Texas
Round Rock
to its member cities. One of the principal Dock Jackson, CMO, Councilmember,
Texas Municipal Utilities Association
Bastrop Clifford Blackwell, Deputy City Manager,
purposes of the League is to advocate
Terry Henley, Board of Adjustment Glenn Heights
municipal interests at the state and federal Gene Ellis, Assistant
Government Finance Officers
Member, Meadows Place City Manager/Chief of Police, Belton
levels. Among the thousands of bills Association of Texas
Texas Police Chiefs Association
introduced during each session of the Texas
DIRECTORS-AT-LARGE Dr. Brian Rowland, Mayor, Prairie View
Legislature are hundreds of bills that would Timothy Slifka, Purchasing Manager,
Jim Ross, Mayor, Arlington Texas Association of Black City Council Southlake
affect cities. The League, working through its Steve Adler, Mayor, Austin Members Texas Public Purchasing Association
Legislative Services Department, attempts Paulette M. Guajardo,
Sid Hudson, Chief Information Officer,
to defeat detrimental city-related bills Mayor, Corpus Christi Erin Hart, Assistant Director of Parks,
McKinney
Arts and Recreation Department,
and to facilitate the passage of legislation Eric Johnson, Mayor, Dallas Texas Association of Governmental
Grand Prairie
designed to improve the ability of municipal Claudia Lizette Rodriguez, Information Technology Managers
Texas Recreation and Parks Society
governments to operate effectively. Representative, El Paso
Lori Ward, Councilmember,
Mattie Parker, Mayor, Fort Worth EX-OFFICIO NON-VOTING INVITED
Addison
Martha Castex-Tatum, Vice Mayor Texas Association of Mayors,
The League employs full-time attorneys who REPRESENTATIVES
Pro Tem, Houston Councilmembers and Commissioners TML Health Benefits Pool
are available to provide member cities with
Ron Nirenberg, Mayor, San Antonio Blake Petrash, Mayor Pro Tem,
information on municipal legal matters. On a Steve Killen, Director of Development
City of Ganado
daily basis, the legal staff responds to member Services, Stephenville
REGIONAL DIRECTORS Texas Association of Municipal Health
cities’ written and oral questions on a wide 2-Doyle Robinson, CMO, Mayor, TML Intergovernmental Risk Pool
Officials
variety of legal matters. The League annually Panhandle Jeffrey Snyder, City Manager, Plainview
conducts a variety of conferences and 3-Latrelle Joy, Councilmember, Jay Socol, Director of Public
Communications, College Station
training seminars to enhance the knowledge Lubbock
Texas Association of Municipal
and skills of municipal officials in the state. In 4-Jack Ladd, Councilmember, Midland Information Officers
addition, the League also publishes a variety 5-Dustin Fraticelli, Commissioner,
Vernon Robert Upton, Director of Engineering
of printed materials to assist member cities
and Public Works, Pearland
6-Robert Brown, Alderman, Menard
in performing their duties. The best known Texas Chapter of American Public Works
7-Allison Heyward, CMO, Association
of these is the League’s monthly magazine,
Councilmember, Schertz
Texas Town & City. Each issue focuses on a
8-Tito Rodriguez, Councilmember, Charles E. Zech, City Attorney,
variety of contemporary municipal issues, North Richland Hills Pflugerville, Bee Cave, Wimberley, Prairie
including survey results to respond to View, Rollingwood, Santa Fe, Leon Valley,
9-Ray O’Docharty, Mayor, Groesbeck
and Fair Oaks Ranch
member inquiries. 10-Connie Schroeder, CMO, Mayor, Texas City Attorneys Association
Bastrop
For additional information on any of 11-Cathy Skurow, Mayor, Portland Hugh R. Walker, Deputy City Manager,
Bryan
these services, contact the 12-Ricardo Villarreal, Mayor, Palmview
Texas City Management Association
Texas Municipal League at 512-231-7400 13-Rick Grady, Councilmember, Plano
or visit our website, www.tml.org. 14-Andy Brauninger, Mayor, Huntsville Jennifer Bozorgnia, Court Services
Coordinator, Irving
Texas Court Clerks Association
TEXAS TOWN & CITY • 4 • MARCH 2022
MESSAGE H FROM THE PRESIDENT
MARTHA CASTEX-TATUM
Vice Mayor Pro Tem, City of Houston
TML President
Economic development, the focus of this month’s magazine, means different things to different cities.
In a small town, it could mean attracting that first restaurant to revitalize the downtown square. In
bigger cities, it might mean new factories and corporate headquarters—the sky’s the limit as Texas
takes the lead in our global economy!
But economic development is coming under attack by some at the Capitol. Last legislative session
saw the demise of Ch. 313 school tax agreements, a big piece of most agreements between the state,
local governments, and business prospects. Next session will likely see continued attacks on other
economic development tools such as 380 agreements, Ch. 312 tax incentives, and others.
It falls on us, the grassroots, to tell the success stories of why cities need a place at the table in
attracting business. The businesses that thrive in our great towns and cities are there because of a
partnership with city leadership. Their success is our success, and recent announcement from the
likes of Samsung, Tesla, and others are a testament to that city partnership.
I can assure you that as we begin to prepare for the 2023 Legislative Session, keeping cities front and
center of the economic development arena will certainly be one of the League’s top priorities.
Martha Castex-Tatum
Vice Mayor Pro Tem, City of Houston
TML President
TEXAS TOWN & CITY • 5 • MARCH 2022
TML H NEWS
TML Salary Survey
TML TRAINING CALENDAR
The TML Salary survey collects salary information for 27 March-April 2022
common city positions. To access the data, visit salarysurvey.
tml.org. The site allows you to search by region, population, March 10
job title, and more. If your city hasn’t completed the survey
Understanding Your Financial Oversight Responsibilities
for this year, please contact Rachael Pitts at rpitts@tml.org.
(Webinar)
Save the Date: 2022 TML Annual
March 24-25
Conference and Exhibition
TCMA William “King” Cole Session 2
This year, TML and the City of San Antonio are teaming Bryan
up to host the 2022 Annual Conference and Exhibition,
October 5-7, at the Henry B. González Convention Center. March 30
TML Small Cities’ Problem-Solving Clinic
Look for the conference program in early July at Lubbock
https://tmlconference.org. Attendee registration and
housing will open late July. March 30
Parliamentary Procedure: Being Aware of the Key Rules
The TML Annual Conference and Exhibition is the League’s (Webinar)
signature event, attracting 3,000 registrants from more than
300 Texas towns and cities, making it one of the nation’s
April 1
largest gatherings of local government leaders.
Workplace Conflict and Strategies for Resolving It
Austin
Annual Conference Exhibit Space
Reservations Open This Month
April 6-8
Get ready! Booth sales for the 2022 TML Annual Conference TML Leadership Academy – Course One
and Exhibition are opening this month. Information about Round Rock
the exhibition, booth rates, and sponsorship opportunities
are now available online at www.tmlexhibits.org. April 14
Interacting Constructively with the Media
On March 14, booth and sponsorship reservations will open (Webinar)
exclusively to TML premier associate members. General
booth sales will begin on March 30. April 25-26
TML Public Funds Investment Act Training
Austin
April 26
Governing Ethically: Understanding Your Influence
(Webinar)
April 27-29
TMUA – Leadership and Management Conference
College Station
TEXAS TOWN & CITY • 6 • MARCH 2022
TEXAS TOWN & CITY • 7 • MARCH 2022
RISK POOL H NEWS
subjects dozens of smaller cities to state law harassment
claims. The bill also defines “sexual harassment” as:
An unwelcome sexual advance, a request for
a sexual favor, or any other verbal or physical
conduct of a sexual nature if:
• submission to the advance, request, or conduct
is made a term or condition of an individual’s
employment, either explicitly or implicitly;
• submission to or rejection of the advance,
request, or conduct by an individual is used as
the basis for a decision affecting the individual’s
employment;
• the advance, request, or conduct has the
purpose or effect of unreasonably interfering
with an individual’s work performance; or
• the advance, request, or conduct has the
purpose or effect of creating an intimidating,
Sexual Harassment: Texas Legislature hostile, or offensive working environment.
Expands Employer Liability
Sexual harassment claims can be made under federal or The bill also expands who can be liable for a claim.
state law. Title VII of the federal Civil Rights Act of 1964, Supervisors and managers, as well as anyone acting
which applies to employers with 15 or more employees, “directly in the interests of an employer,” may now be
is the federal law that protects employees from unwanted held individually liable for sexual harassment damages if
sexual advances, requests for sexual favors, and other they “know or should have known that the conduct was
verbal or physical conduct of a sexual nature. Federal law occurring” and “fail to take immediate and appropriate
sexual harassment claims are nothing new, but the Texas corrective action.” A person acting directly in the interests
Legislature recently amended state law in ways that could of an employer could include vendors or other third parties.
shift more harassment filings to state court. Immediate and appropriate corrective action isn’t defined
in the law, but a complaint need not be in writing to “start
Senate Bill 45 expands the definition of “employer” in the the clock.” That’s one reason a written policy detailing
context of sexual harassment claims to “a person who appropriate procedures is a must.
employs one or more employees or acts directly in the
interests of an employer in relation to an employee.” The Another bill, House Bill 21, extends the time an employee
change from 15 employees to “one or more employees” must file a sexual harassment claim with the Texas Workforce
TEXAS TOWN & CITY • 8 • MARCH 2022
Commission from 180 to 300 days. (An employee must file
a sexual harassment complaint with the Commission prior
to bringing a lawsuit in state court.) State law damages
caps, ranging from $50,000 to $300,000 depending on the
number of employees, remain in place.
Every city should consult with local legal counsel to review
its sexual harassment policy, educate employees on the
policy and state and federal law, and train employees and
Check out STP Episode 12 - Risk Pool Human
supervisors on procedures for immediate action should a
Resources Training: “Civility in the Workplace”
complaint arise. Smaller cities that may not have a policy and “Harassment Training for Supervisors.” This
should immediately develop and implement one. The episode explains: training provided by the Pool
Risk Pool provides live and online harassment training, to address behaviors that cause unhealthy
and the Texas Municipal Human Resources Association conflict in the workplace; and the importance of
(www.tmhra.org) provides example personnel policies for harassment training for supervisors.
their members.
Questions? Contact the Risk Pool’s Loss Prevention
Department at 512-491-2300 or lossprevention@tmlirp.org.
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TEXAS TOWN & CITY • 9 • MARCH 2022
HEALTH POOL NEWS H
The High Price Tag of COVID How Can Your Health Plan Help Manage
Millions of dollars in paid-out COVID claims have increased
the Costs of COVID?
health insurance rates all over Texas, and that could have a Encourage your employees to get vaccinated and boosted.
financial impact on cities budgeting their employee benefits. While vaccinated people can have breakthrough cases,
these cases are usually mild and do not require expensive
According to a survey conducted last year by the human treatment. The vast majority of severe COVID cases are
resources consultancy at Willis Towers Watson, employers among the unvaccinated, which can often cost upwards of
should brace for health plan rate increases of 5.2 percent in $250,000. High-cost claims such as these push loss ratios
2022. However, this survey was conducted before the latest higher, which will lead to higher rates.
COVID surge and new mandates related to COVID, such as
requirements for 100 percent coverage of at-home testing. Self-insured risk pooling can also offset the cost of COVID
claims, by distributing the costs across a much larger
There has also been a significant rise in the frequency of number of members than your employee group alone. In
testing as more people are having to provide proof of a this way, each of the many public employers can pay a
negative test for various activities, such as returning to much smaller amount in increased monthly plan costs to
work or school, travel, attending concerts, and more. The absorb the increased claim costs.
combination of these factors during a surge inundating the
nation with new COVID cases will increase claims and rates In the case of large outlier claims, such as intensive care
further. COVID claims, certain underwriting methods can shield
you from the financial impact. For example, the TML
Early reports that delays or avoidance of elective healthcare Health Benefits Pool does not include large outlier claims
during the pandemic might drive decreased utilization in underwriting when calculating monthly plan costs to
and therefore reduced claims have not proven out here in employers. By employing innovative underwriting methods
Texas, with healthcare utilization remaining steady and in (and getting vaccinated), you can help reduce the impact of
some cases increasing. We also know that the pandemic COVID on your town or city.
has caused a rise in stress, which often leads to unhealthy
behaviors, such as substance abuse, sedentary lifestyles, About TML Health Benefits Pool
and unhealthy eating. These behaviors can drive higher
TML Health Benefits Pool offers health benefits created by
rates of chronic illness, and the associated costs of treating
Texans exclusively for Texas cities and political subdivisions.
these diseases.
TML Health brings together hundreds of Texas public
Prior to the pandemic, healthcare cost increases were entities to leverage collective purchasing power and risk
holding steady in the low single digits. This year, employers sharing to stabilize the cost of health benefits and deliver
should prepare for much higher rates on their health the lowest long- term net costs, while offering additional
insurance, which could return to double-digit increases, services such as wellness programs, virtual health
especially if your plan has had high claims due to COVID. checkups, telemedicine, and online and phone enrollment.
By sharing in the Pool, TML Health’s members share the
Not all rate increases are created equal, however, and there rewards of superior health coverage—lower costs, better
are ways that employers can mitigate the impact COVID has health outcomes, and more personalized service. H
on their rates.
TEXAS TOWN & CITY • 10 • MARCH 2022HOUSTON | MAY 2 – 5 | MARRIOTT MARQUIS
Come join the action at BBC Summit 2022. Whether your community is new
to broadband or you’re up and running, the Summit is THE place where both
experienced and new voices driving change, innovation and evolution in the
broadband business share their knowledge and expertise on creating a more
connected future.
NEW FOCUS AREAS & FEATURES
• Comprehensive, multi-session, step-by-step guide to planning for and
acquiring the broadband services your citizens want and need
• Experts who’ve got the bandwidth share ideas on using it to improve
everyday quality of life and connectedness
• Notable projects shattering the digital divide
• And much, much more (check www.bbcmag.com)
Because you are a subscriber of Texas Town & City,
you can register now with our special DISCOUNTED rate:
$350 Use VIP Code: TML350
(Save $600 off regular
T E X A SSummit
T O W N &price • 1
C I T Y of 1 •Offer
$950) MARCHexpires
2022 April 30, 2022CITY LIGHTS H
Community Meetings Set the Stage for businesses, affordable homeownership, rental housing,
Downtown Allen Revitalization and commercial real estate. Fort Worth has committed $3
million toward the effort.
CDFI Friendly Fort Worth will work as a go-between,
matching community development financial institutions
(CDFIs) to residents, entrepreneurs and nonprofits in Fort
Worth’s communities. CDFIs offer flexible capital to address
gaps in underserved communities.
CDFIs have been working successfully in communities of
color and other under-resourced places for more than 30
years, producing outstanding financial results. They are
special-purpose financial institutions staffed by experts
Downtown Allen – Dare to Dream is a community wide
who are skilled in working with nontraditional borrowers
visioning process to develop a menu of possibilities for
and managing risks for a wide range of investors, including
revitalizing the heart of Allen, the City’s original downtown.
banks, faith-based investors, philanthropies, individuals,
Led by a citizen steering committee appointed by city
and others. According to industry data, 60 percent of more
council last summer, the first phase of the process began
than $100 billion in CDFI financing over 30 years has gone
with research and exploration and has now progressed to
to borrowers of color.
Phase 2 which incorporates community engagement and
feedback. Sweet Ideas in Sugar Land
The Downtown Steering Committee hosted a Community
Input Visioning Workshop in February at facilities across the
City to create a community-led vision for the revitalization
of downtown Allen. During the workshop, residents listened
to a brief presentation about the current conditions in
downtown, changing demographic trends, and why vibrant
downtowns are so important to cities. The participating
community members then worked together to identify
shared goals and priorities that will become the foundation
of the plan’s vision.
With the goal of engaging as many community The City of Sugar Land launched a Sweet Ideas program
members as possible, residents can also participate in in 2021 to support ideas proposed by City employees that
an online survey and share ideas to the online idea wall. have the potential to improve the services and functions
of government. This program is accessible to any City
employee who brings forth a new challenge for an existing
CDFI Friendly Fort Worth
problem found in processes serving Sugar Land residents
and opportunities to improve internal workplace culture. It
Fort Worth recently launched CDFI Friendly Fort Worth, an
aims to empower employees to make positive changes in
initiative to increase financing for the City’s minority-owned
the organization and in turn, the community.
TEXAS TOWN & CITY • 12 • MARCH 2022The Sweet Ideas program follows a multi-step process. upon the community quality of life for residents. Survey
The City’s Department of Innovation team navigates ideas results will be analyzed for understanding of community
through this process and assists in follow-ups to review needs, through the input of residents, to better fashion a
their success. Comprehensive Plan in the best collective interest of the
City of Sweetwater.
Some ideas are set aside, some are implemented. The
team utilizes staff from across the organization to weigh Anyone who lives in or commutes to Sweetwater for work
in on larger projects during panel reviews. The process was invited to participate in the 18-question survey which
includes facilitating cross-department conversations from asked about community engagement, keeping talent at
key stakeholders, whether internal department subject home, recruiting new business, the vibrancy of downtown,
matter experts or with those launching similar innovations and other topics. A link to the survey was posted on the City
across the community and country. of Sweetwater social media pages and website, with hard
copies available at several local businesses and City Hall. H
Some of the sweet ideas implemented in the program’s
inaugural year include creating a low-cost, but highly
accessible computer lab for public works field staff; piloting
a temporary water-activated mural to drive tourism to the
Imperial Park Recreation Center and Farmer’s Market; and
creating an “All Things Military” veterans’ employee resource
group that meets for the greater good of their workforce.
Excellence in Engineering
SM
On the heels of the Sweet Ideas program, the City’s
Innovation Department launched the I.D.E.A. Academy Since 1946
Training Program in October 2021. At this new internal
innovation and process improvement training academy,
participants will learn to map processes, identify gaps, and
development improvement opportunities.
City of Sweetwater Launches Vibrant
Community Assessment
The City of Sweetwater, in partnership with Verdunity, is
creating a Comprehensive Plan that will be in place for the
next 20 years. The first step in developing the plan was the
launch of the Vibrant Community Assessment survey in late Wastewater Treatment Plant – Sealy, TX
January which will help measure community engagement
and provide a baseline understanding of the community.
“The survey is extremely important as it allows residents to
provide input on community issues of importance,” Assistant
City Manager of Operations Dana Schoening said. Results of
the community survey will establish a baseline of issues www.strand.com
the Comprehensive Plan is intended to address with future
12 Locations • 815.744.4200
community development strategies proposed to improve Multidisciplinary firm serving
public and private sectors
TEXAS TOWN & CITY • 13 • MARCH 2022TEXAS MUNICIPAL LEAGUE INSTITUTE
RECOGNIZES ELECTED CITY OFFICIALS
The Texas Municipal League (TML) and the Texas Association of Mayors, Councilmembers and Commissioners (TAMCC)
sponsor the Texas Municipal League Institute (TMLI) to recognize elected city officials who are committed to continuing
their professional development and learning more about their governance role and city government. The TMLI program
offers levels of recognition to elected city officials who continue their education, with a minimum of 42 continuing
education units (CEUs) per TMLI credit year (January 1-December 31).
Those receiving an award for the 2021 TMLI credit year were recognized by their peers during the TML-TAMCC Elected
Officials’ Conference on February 2. The elected city officials honored at the award ceremony for their continued com-
mitment to excellence are listed here. Congratulations to all of the 2021 TMLI award recipients!
2021 TMLI AWARD RECIPIENTS
All awarded recipients are listed in the position they held at the time of recognition.
Certified Municipal Official (62 CEUs with two hours of Alexandra Flores, Councilmember, City of Palmview
open government training) Beverly Gaines, Mayor Pro Tem, City of Webster
Shaunte Allen, Councilmember, City of Glenn Heights Joel Garcia Sr., Councilmember, City of Palmview
Frank Archuleta, Councilmember, City of Windcrest Betty Gooden-Davis, Councilmember, City of Lancaster
Racquel Belle, Deputy Mayor Pro Tem, City of Forest Hill Clyde C. Hairston, Mayor, City of Lancaster
Michael Braly, Mayor Pro Tem, City of Red Oak Beckie Duncan Hayes, Councilmember, City of Forest Hill
Rebecca L. Brewster, Mayor, Town of Van Horn Allison Heyward, Councilmember, City of Schertz
Michele Chandler Kelley, Councilmember, City of Joel W. Hicks, Councilmember, City of Cibolo
Springtown David Hill, Councilmember, City of Waxahachie
Ed Cimics, Mayor Pro Tem, City of Live Oak Dock Jackson, Councilmember, City of Bastrop
Marilyn Clay, Councilmember, City of Cleveland Stanley M. Jaglowski, Deputy Mayor Pro Tem, City of
Sonja Coleman, Councilmember, City of Forest Hill Lancaster
Duke W. Coon, Councilmember, City of Conroe Curt Maddux, Councilmember, City of Conroe
Jody Czajkoski, Mayor, City of Conroe Dinah Marks, Councilmember, City of DeSoto
Christine DeLisle, Mayor, City of Leander Raymond McDonald, Mayor Pro Tem, City of Conroe
Mary M. Dennis, Mayor, City of Live Oak Arlando Nacianceno, Councilmember, City of Palmview
Jesse Falcon, Mayor Pro Tem, City of Odem Cathy Nagel, Mayor, City of Pine Forest
Victoria Farrar-Myers, Mayor Pro Tem, City of Arlington Lyle Nelson, Mayor Pro Tem, City of Bastrop
Jose Luis Perez, Mayor Pro Tem, City of Palmview
TEXAS TOWN & CITY • 14 • MARCH 2022Blake Petrash, Mayor Pro Tem, City of Ganado Whitney Laning, Councilmember, City of Rowlett
Sheila Petta, Mayor, City of Wilmer Dee Anne Lerma, Councilmember, City of Sealy
Candice Quarles, Councilmember, City of DeSoto Wally Leto, Councilmember, City of Wilmer
Javier Ramirez, Councilmember, City of Palmview Bert Miller, Mayor, City of Navasota
Leonard Reed, Mayor, City of Willis Marsha Porter, Councilmember, City of Conroe
Patrick Rios, Mayor, City of Rockport Steve Rockey, Councilmember, City of Friendswood
Brian Rowland, Mayor, City of Prairie View Benita Sheffield Duffield, Councilmember, City of Diboll
David Rutledge, Mayor, City of Bridge City Pat Van Houte, Councilmember, City of Pasadena
Connie Schroeder, Mayor, City of Bastrop
Carol Strain-Burk, Councilmember, City of Lancaster Award of Excellence
Ricardo Villarreal, Mayor, City of Palmview (an elected official who has received a TMLI certificate
Keithsha C. Wheaton, Councilmember, City of Lancaster for five consecutive years)
Todd Yancey, Councilmember, City of Conroe Clyde C. Hairston, Mayor, City of Lancaster (5 years)
Connie Schroeder, Mayor, City of Bastrop (5 years)
Certificate of Achievement (54 CEUs)
Crystal Chism, Councilmember, City of DeSoto Award of Leadership
Renee Franklin, Councilmember, City of Benbrook (a city that has had an elected official receive a TMLI
Carlie Jones, Councilmember, City of Forest Hill certificate for five consecutive years)
City of Bastrop
Certificate of Recognition (42 CEUs) City of Lancaster
Julia Douglas, Mayor, City of Glen Rose
SERVING TEXAS
SINCE 1979
BUILDING COMMUNITIES:
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OVER $7 BILLION
IN GRANTS MANAGED
FOR INFORMATION,
CALL (512) 420-0303
OR VISIT
GRANTWORKS.NET
TEXAS TOWN & CITY • 15 • MARCH 2022SMALL CITIES' CORNER H
president so he was especially devious. They then went on to
tell me how it was my obligation to serve the public and run
for council. Mayor Pearson told me that while campaigning,
young moms would want a kiss for good luck and would
want me to shake their babies’ hands. He now claims I got it
backwards. If that’s not devious, I don’t know what is.
JR: What do you most enjoy about being mayor?
PR: The ability to work with a dedicated city staff and council
members who truly want to better our city for all.
JR: What’s happening in Rockport?
PR: Wow, what a great question. Just about everything is
happening here. We were devastated in August 2017 by
PUBLIC SERVICE Hurricane Harvey. It punched us right in the nose and affected
everything. Since that time, we have been collectively
SPOTLIGHT: working around the clock with our county, state, and federal
partners to best find our way forward. We have rebuilt
PATRICK RIOS, CMO with resiliency and the future in mind. We have single and
MAYOR, CITY OF ROCKPORT multifamily projects completed and others on the drawing
board. We have a new art center under construction and will
Interviewed by Jacqueline Redin, soon be underway with the buildout of both a new city hall
TML Assistant Director of Member Services and county courthouse. The old government buildings were
destroyed by Harvey. We have a new workforce training
Patrick Rios was first elected to the Rockport City Council
center under construction, and we are partnering with Del
in 2012 as mayor pro tem, and in 2018 was elected mayor.
Mar College to provide training and skill set development
During his time on the city council, he’s helped the City of
for many needed professions. Tourism is back to its pre-
Rockport persevere through a multitude of natural disasters
Harvey pace, and the City is busy.
and a pandemic.
JR: How would you describe Rockport to someone who
In addition to his city service, Mayor Rios has served on the
has never visited?
TML Board of Directors and as a TML Region 11 officer. He has
PR: I always say, “If you can’t relax in Rockport, you just
also earned the highest designation of Certified Municipal
can’t relax.” Rockport is a cozy, friendly, fun place to be. We
Official (CMO) for seven consecutive years through the
celebrate virtually everything. We are known as the “Charm
League’s continuing education certification program – the
of the Texas Coast,” but I think we could also be called the
Texas Municipal League Institute (TMLI).
“Festival City.” If you can think of it, we will honor it with a
weekend festival. We celebrate the arts, hummingbirds,
Jacqueline Redin: What influenced you to get involved in
sea, oysters, kites, music, and whatever. Fantastic, fresh
city government?
seafood paired with just the right beverages are available
Patrick Rios: I was tricked by former Rockport Mayor Todd
everywhere. We are surrounded by water on three sides so
Pearson and former Mayor Pro Tem Frank Reilly. They
you will get your fill of fishing, boating, sailing, swimming,
convinced me to volunteer to serve on a city committee,
and beach combing. You need to understand that it is okay
and that it would be fun. Mayor Pearson also served as TML
TEXAS TOWN & CITY • 16 • MARCH 2022to enjoy a cold drink with an umbrella in it. You will learn to JR: Do you have a favorite quote?
love sand between your toes. PR: I have a couple that have withstood the ravages of time.
“If you need to get something done, ask a busy person.” My
JR: You’ve consistently earned the top designation of CMO favorite is, “There is nothing cheaper than quality.”
through TMLI. Why is continuing education important to
elected city officials? JR: What is some of the best advice you have been given?
PR: When I was first elected to the Rockport City Council, PR: A favorite boss once told me that while he preferred
I had no municipal experience. The night I was sworn into perfection, he could not afford me if I was perfect. It is okay
office, I was elected by the council to serve as mayor pro to err, but it is not okay to not learn from it to avoid making
tem. In a baptism of fire, I had to run four of my first six the same mistake twice.
council meetings. I quickly realized that if I was going to be
successful in serving the people of Rockport, I needed to JR: Tell us about your family.
learn all I could about city government. TML offers a wide PR: My family is the reason I get up every day. I met my wife
variety of training on so many subject matters. I signed Patty at a high school sock hop when we were both sixteen.
up for as many seminars and courses as possible. The In August, we will celebrate our 50th wedding anniversary.
experience and education are invaluable. I try to encourage We have five children. Our oldest Patrick Brian is 39 years
newly elected council members to take advantage of the old. We have two other sons Michael and Matthew, and
TMLI offerings. daughters Catherine and Lauren. They are 37 years old.
They happened to be the 150th set of quadruplets in the
JR: What is one of your favorite memories while serving world when they were born in San Antonio in 1984. Hence
on the TML Board of Directors? the source of my gray hair. And with all those kids, we only
PR: I especially like the great friendships I have made with have one granddaughter Charlie.
so many of the board members. We have similar problems
and goals. The group is extremely dedicated to service and JR: How do you like to spend your time outside city
are willing to sacrifice personal time for the betterment of service?
their cities. PR: My favorite leisure time is doing anything with friends and
family. That includes cooking and eating, fishing, hunting,
JR: Do you have any leadership advice to share? golfing, or just sitting around talking about everything.
PR: Listen. Listen to your citizens, staff, and vendors. Always If you can put us around a campfire, so much the better.
look for facts and leave emotion out of the equation. Make Campfires make the stories wilder, the company better, and
decisions that are positive for the majority of the taxpayers. the beverages smoother.
Some decisions are tougher than others as you can never
please everyone. This is when leaders lead. JR: Is there anything else you’d like to add?
PR: My career in public service will be ending this May as I
JR: What is one of the most important lessons you have will be term limited and unable to run for re-election. It has
learned about public service? been a rewarding run filled with action and challenges. Did
PR: I have learned that there is always more to learn. You I mention that Rockport has endured 10 declared disasters
must make decisions based on the facts as you understand since August of 2017? The effects from five hurricanes,
them. We are an elected, representative body and our three floods, the COVID pandemic, and Winter Storm URI in
supporters expect us to do the right thing. If we don’t serve February 2021. I am not sure what I will do after this chapter
the public as they want us to, we get fired through the closes (besides sleeping for two weeks), but I look forward
election process. Get to know your city manager well and to the future. If you are ever in Rockport, look me up. I am
trust them to have their department heads keep the council still in the phone book. H
briefed on pertinent data. Do not micromanage.
TEXAS TOWN & CITY • 17 • MARCH 2022LEGAL H Q&A By Tad Cleaves,
TML Legal Counsel
Access to quality, functional water, sewer and roadway
infrastructure can be a powerful driver of economic development Q What items may not be paid for by an impact fee?
in and around a city, but sometimes financing infrastructure
expansion can be difficult. One tool a city can use to finance the
cost of infrastructure expansion is impact fees, which can be
A Chapter 395 provides that impact fees may not be adopted
or used to fund the following items: (1) construction, acquisition,
adopted following the procedures detailed in Chapter 395 of the
or expansion of public facilities or assets not identified in the
Texas Local Government Code (“Chapter 395”).
capital improvements plan; (2) repair, operation, or maintenance
Q
of existing or new capital improvements or facility expansions;
What is an impact fee? (3) upgrading, updating, expanding, or replacing existing capital
improvements to serve existing development in order to meet
A An “impact fee” is defined, by statute, as “a charge or
stricter safety, efficiency, environmental, or regulatory standards;
(4) upgrading, updating, expanding, or replacing existing capital
assessment imposed by a political subdivision against new improvements to provide better service to existing development;
development in order to generate revenue for funding or (5) administrative and operating costs of the city; and (6) principal
recouping the costs of capital improvements or facility expansions payments of interest or other finance charges on bonds or other
necessitated by and attributable to the new development.” Tex. indebtedness unless otherwise authorized under Chpater 395. Id.
Loc. Gov’t Code§ 395.001(4). Put more simply, an impact fee is a § 395.013.
tool that cities can use to recoup, from property developers, some
of the costs that new development places on city infrastructure.
Impact fees require new development to pay for the costs of new Q Where can a city assess impact fees?
development.
A
Q
An impact fee may be imposed within the corporate limits of
What costs may be funded by impact fees? a city. Id. § 395.011(b). Impact fees may also be imposed in the city’s
extraterritorial jurisdiction (ETJ), except that impact fees may not be
A Impact fees may only be used to pay certain costs for: (1)
imposed in the ETJ for roadway facilities. Id. § 395.011(b). The area
where impact fees may be assessed is called the “Service Area.”
constructing capital improvements or facility expansions for For roadway facilities, the Service Area is limited to an area within
water supply, treatment, and distribution facilities; (2) wastewater the corporate boundaries of the city, not to exceed six miles. Id. §
collection and treatment facilities; (3) stormwater, drainage and 395.001(9). For storm water, drainage, and flood control facilities,
flood control facilities; and (4) roadways. Id. § 395.001(1). Not all the Service Area may include all or part of the land within the city
costs associated with infrastructure expansion qualify –only costs or its ETJ, but shall not exceed the area actually served by the
authorized under Chapter 395 are allowable. Allowable costs storm water, drainage, and flood control facilities designated in the
include the costs of facility expansion or new facility construction capital improvements plan and shall not extend across watershed
such as: (1) construction contract price; (2) surveying and boundaries. Id.
engineering fees; and (3) land acquisition costs. Id. § 395.012(a).
Fees paid to an non-city engineer or financial consultant related
to preparing or updating the capital improvement plan can also In areas outside both the corporate limits and ETJ of the city, a city
be paid by impact fees. Id. § 395.012(a)(4). Additionally, certain may only impose impact fees for capital improvements by contract
financing charges related to permissible facilities improvements (but not for roadway facilities even by contract). Id. § 395.011(c).
or expansions may be funded by impact fees, and impact fees
may also be pledged to as security for bonds under certain
circumstances. Id. § 395.012(d).
Q Are there procedural prerequisites for establishing
an impact fee?
TEXAS TOWN & CITY • 18 • MARCH 2022A Yes. Before a city can take final action to impose impact
use assumptions, CIP, or impact fee. Id. §§ 395.058(c), 395.050. Be
aware that these are not simply ad-hoc committees that disappear
fees, the city must first appoint a Capital Improvements Advisory once an impact fee ordinance has been adopted. Due to the
Committee and then adopt: (1) a Capital Improvements Plan; and Committee’s obligation to provide semiannual reports and advise
(2) Land Use Assumptions. the city council with regard to the CIP and land use assumptions,
the Committee should meet on a regular basis.
Q What are Land Use Assumptions?
Q Who may serve on the Capital Improvements
A Land use assumptions are essentially documentation
Advisory Committee?
A
containing a description of the Service Area and projections of
changes in land uses, densities, intensities, and population in the The advisory committee must be composed of at least five
Service Area over at least a 10-year period. Id. § 395.001(5). members. At least 40 percent of the members of the advisory
committee must be representatives of the real estate, development,
Q What is the Capital Improvements Plan (CIP)?
or building community, and not employees or officials of the city.
Id. § 395.058(b).
A Based on the projections contained in the land use
Q What is the procedure for adopting an impact fee?
assumptions, the city also prepares a draft of a CIP detailing the
A
capital improvements that will need to be made over the term
of the plan to meet existing and projected future needs. Id. § Adoption of an impact fee requires strict compliance with
395.001(2). The CIP must be developed by qualified professionals several detailed statuory steps, lest the city open itself up to
using generally accepted engineering and planning practices. potential legal challenge. This is a technical process with specific
Id. § 395.0411. The land use assumptions and CIP are detailed notice and hearing timelines, so if a city wishes to adopt impact
documents that form the basis for calculating permissible impact fees or update its impact fees, it should involve its professionals
fees. early, including the city attorney and city engineer. The following is
a summary of the procedural steps:
Q What is the Capital Improvements Advisory (1) Draft CIP and Land Use Assumptions. The city must prepare
a draft of its land use assumptions and CIP. Id. § 395.042. In
Committee?
practice, the Committee generally creates or updates these
A The capital improvements advisory committee (“Committee”)
drafts in advance of the hearing described below.
is an advisory committee appointed by city council to assist
with the impact fee adoption and implementation process. The (2) Set Hearing on CIP and Land Use Assumptions. The council
city council must appoint the Committee before passage of the must adopt an order, resolution, or ordinance establishing
ordinance setting the public hearing on the CIP and land use a public hearing date to consider the CIP and land use
assumptions,. Id. § 395.058. Practically speaking, once a city has assumptions. Id. Proper notice of the hearing must be given at
decided to consider adopting an impact fee, appointment of the least 31 days in advance of the date of the hearing. Id. § 395.044.
Committee is the first official action. In some cities, members of the
Planning and Zoning Commission also serve as the Committee.
(3) Hold Public Hearing on CIP and Land Use Assumptions. At
The Committee’s purpose is to: (1) advise and assist the city the hearing, the council must allow all who desire to speak for
in adopting the land use assumptions; (2) review and file or against the CIP or land use assumptions, or any other topic
written comments on the city’s CIP; (3) monitor and evaluate related to the upcoming impact fees, to present their views to
implementation of the CIP; (4) file semiannual reports with respect the council. Id. § 395.044(c)(4).
to the progress of the CIP and report to the city any perceived
inequities in implementing the plan or imposing the impact fee;
and (5) advise the city of the need to update or revise the land
TEXAS TOWN & CITY • 19 • MARCH 2022(4) Vote to Adopt an Ordinance Approving the CIP and Land Use Id. § 395.077. To avoid refunding collected impact fees following
Assumptions. After the conclusion of the hearing, the council a successful appeal, some cities delay the implementation of
should “determine whether to adopt or reject an ordinance, impact fees until after the 90-day appeal period has expired.
order, or resolution approving the land use assumptions and
capital improvements plan.” Id. § 395.045(a). Whether this
“determination” step is a distinct requirement from simply Q How much in impact fees may a city charge?
adopting the CIP and land use assumptions is debatable.
Regardless, within 30 days after the hearing, the city council
must adopt an ordinance, order, or resolution approving the CIP
A An impact fee may not exceed the cost of capital improvements
and facility expansions required by the new development (as
and land use assumptions. Id. § 395.045(b).
calculated by a professional engineer), minus a credit in an
amount equal to either: (1) the new property taxes and utility
(5) Set Hearing on Impact Fees. Assuming the city adopts the revenue generated by the development; or (2) 50 percent of total
ordinance approving the CIP and land use assumptions, the costs of the capital improvements, with that figure being divided
city council must adopt an order or resolution setting a public by the total number of projected service units attributable to the
hearing to consider the imposition of the impact fee. Id. § new development. Id. § 395.015. Additionally, any construction of,
395.047. Proper notice of the hearing must be given at least 31 contributions to, or dedications of off-site roadway facilities agreed
days in advance of the date of the hearing. Id. § 395.049. to or required by the city as a condition of development approval
shall be credited against roadway facilities impact fees otherwise
due from the development. Id. § 395.023. It is up to the city, with the
(6) Advisory Committee Comments. At least six business advice of its professionals, to determine which of the two credits
days before the hearing on the imposition of impact fees, above will be subtracted from the costs when calculating the
the Committee must file written comments concerning the impact fee.
proposed impact fees. Id. § 395.050.
(7) Hold Public Hearing on Impact Fees. At the hearing on
Q What is the difference between impact fee
“assessment” and “collection?”
imposition of impact fees, the city council must allow all who
desire to speak for or against the impact fees, or any other topic
related to the upcoming impact fees, to present their views to A “Assessment” is the determination of the maximum amount of
the council. Id. § 395.049(c)(5). the impact fee that can be charged per service unit of development
on the date when the impact fee amount is calculated as
discussed below. Id. § 395.016(f). “Collection” is the actual payment
(8) Approve Impact Fee. Within 30 days after the hearing on the of the assessed impact fee to the city.
imposition of impact fees, the city council must approve or
disapprove the impact fees by order, ordinance, or resolution.
Id. § 395.051. Q When may an impact fee be assessed and collected
from a developer?
Q When is an ordinance, order or resolution adopting
A Generally, impact fees are assessed on development at the
impact fees effective?
time the final plat of the property is recorded. Id. § 395.016. Impact
A An ordinance, order or resolution establishing an impact fee
fees are generally collected when a building permit is issued or,
in some cases, when a meter is installed. Id. § 395.016. Keep in
can be effective immediately upon adoption, but the validity of such mind that, with certain exceptions, impact fees generally may be
ordinance, order or resolution can be challenged in court. A lawsuit assessed but not collected where services are unavailable. Id. §
to contest the validity of an impact fee must be filed within 90 days 395.019. Chapter 395 provides different timeframes for assessment
from the date of adoption of the ordinance, order or resolution. and collection of impact fees based on when the impact fees were
adopted, so cities should carefully review Chapter 395 before
taking final action. Additionally, the landowner and the city can set,
TEXAS TOWN & CITY • 20 • MARCH 2022by agreement, the time and method of payment of impact fees. Id. developers for oversizing or constructing water or sewer mains
§ 395.018. or lines; and (6) other pro rata fees for reimbursement of water or
sewer mains or lines extended by the political subdivision. Id. §
Q When is it too late to assess an impact fee on new
395.001(4).
development?
Q Is a city required to review its CIP, Land Use
A If an impact fee is adopted after the land being developed is
Assumptions or impact fees after adoption?
A
platted, fees cannot be assessed on any service unit that receives
its building permit within one year after adoption of the impact fee. Yes. A city imposing impact fees must hold hearings and
Id. § 395.016(c). update its CIP and land use assumptions at least every five years. Id.
§ 395.052. Chapter 395 contains detailed procedures for hearings,
Q Should a city segregate impact fee funds from other
review, and amendment of the CIP, which are essentially the same
as the procedures for initial adoption. Id. §§ 395.053-395.0575. Keep
municipal funds ?
in mind that the Committee is required to make semiannual reports
to the city council as well as advise the council with respect to the
A Yes. Because impact fee funds may be spent only for the progress of the CIP. H
purposes for which the impact fee was imposed, mingling the
funds with other city revenues can be problematic. The order,
ordinance, or resolution levying an impact fee must provide that
all funds collected through the adoption of an impact fee shall
be deposited in interest-bearing accounts clearly identifying the
category of capital improvements or facility expansions within
the service area for which the fee was adopted. Id. § 395.024(a).
Furthermore, interest earned by impact fees is subject to the
same use restrictions placed on the use of impact fee funds. Id. §
395.024(d).
Q What fees and other development tools are not
considered impact fees (and thus not subject to the
READY TO
procedures or restrictions under Chapter 395)?
A A number of land development costs are not considered
impact fees, and thus are not subject to the detailed procedures
and formulas set forth in Chapter 395, including: (1) dedication of
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TEXAS TOWN & CITY • 21 • MARCH 2022pre-pandemic levels, but problems lingered across supply
chains and prevented a full economic recovery. As I write
this, supply chains are still reeling from the recession and
may not normalize until 2023.
Of course, 2021 was not without its own rough start. Winter
Storm Uri knocked out power for nearly 70 percent of
Texans and disrupted water utilities statewide. As a result,
the storm claimed more than 200 lives and at least $80
billion in economic costs.
That said, I have high hopes for the Texas economy this
year. We took major steps forward in 2021 despite a slew
of obstacles, including COVID-19 surges, widespread labor
shortages, inflation, and volatile energy prices.
Employment
The Texas economy added 682,200 nonfarm jobs from
August 2020 to August 2021, an increase of 5.6 percent.
Over those 12 months, Texas added more new jobs than
any other state except California. We expect employment
to grow by 3.7 percent in fiscal 2022 and 2.7 percent in fiscal
2023.
THE TEXAS As of December 2021, Texas’ unemployment rate was 5
percent, which was higher than the United States rate of 3.9
ECONOMY: percent, but nearly 2 percent lower than it was in December
FULL RECOVERY
2020. The gradual decline in unemployment throughout
2021 is a promising trend for our state.
ON THE HORIZON It’s hard to believe that Texas lost more than 1.4 million jobs
By Glenn Hegar, Texas Comptroller of Public Accounts between February and April 2020. But from July to December
2021, Texas added an average of 72,000 jobs each month,
As Texas Comptroller, I’m charged with keeping a watchful and now employment is up 89,600, or 0.7 percent, from its
eye on the state economy and providing Texans with up- pre-pandemic peak in February 2020.
to-date information about how it’s doing and where it’s
heading. But as we’ve seen over the past couple of years, Texas recently made the headlines (along with Arizona,
it’s not always a pretty picture. Utah, and Idaho) for recovering all the jobs we lost during
the shaky early months of the pandemic. This is more than
In 2020, the COVID-19 pandemic caused a short but severe welcome news.
recession in Texas, resulting in record high unemployment,
business closures, and a sharp decline in revenue collections Revenue Collections
by state and local governments. The fact remains that Texas still is recovering from the deep
but short recession caused by the pandemic. But the good
Then, as the initial shock wore off, supply chain issues took news is the Texas economy and state tax collections have
center stage. In 2021, many economic indicators reached been exceeding our expectations since April 2021.
TEXAS TOWN & CITY • 22 • MARCH 2022Texas relies on sales taxes to generate a substantial portion chains. The tour helped us better understand the supply
of its monthly revenue. For the three-month period ending chain problems plaguing so many businesses around the
March 2021, Texas’ average sales tax revenue was down state. But just as important, we learned about some of the
more than 5 percent compared with the same period a year innovative ways business leaders are bolstering supply
earlier. By December, however, the three-month average chain resiliency.
revenue was up nearly 23 percent compared with the same
period a year earlier. We can confidently say that Texas Federal Funds
ended the year in a strong sales tax position. As of January 2022, the federal government has allocated
more than $25.5 billion to local entities in Texas from various
Other forms of tax revenue also have been on the rise. In pandemic relief packages, including the Coronavirus
December 2021, natural gas production tax revenue, for Aid, Relief, and Economic Security (CARES) Act and the
instance, totaled $384 million, up 349 percent compared American Rescue Plan Act (ARPA). These funds have helped
with December 2020. It was the highest monthly natural gas our local entities shore up revenue losses stemming from
production tax revenue on record. the pandemic in essential areas such as health and human
services, education, housing and transportation.
We are projecting substantial growth in revenue available
for general-purpose spending in the 2022-23 biennium. In Texas businesses have received more than $103.9 billion
fact, this available revenue will total an estimated $135.3 in economic assistance from the CARES Act and ARPA.
billion, which is more than 15 percent higher than the This includes allocations and loans from the Paycheck
revenue available for the 2020-21 biennium. Protection Program, Coronavirus Food Assistance Program,
and other pandemic-related federal programs.
Ahead of the 88th Legislature in January 2023, we anticipate
the state to have an estimated $12 billion ending balance — Summing Up
compare that to the state’s $946 million negative balance I’m excited to report that the Texas economy is healthy
right before last year’s Legislature gaveled in. and performing well, but as usual, I must urge us to remain
cautiously optimistic. We never know when we will face the
Supply Chains next unpredictable event that could adversely affect our
Supply chains are the building blocks of our modern state and local economies — whether it’s a natural disaster
economy — they facilitate the trade of intermediate goods, or a worldwide virus.
which have a trade value twice that of final goods. Supply
chains, however, have been hit hard by the pandemic, At the same time, we cannot overstate the economic
resulting in shipping backlogs and higher prices for goods progress we have made since the pandemic first hit,
on a global scale. especially over the last year or so. And as for the future, we
project continued economic growth in 2022 and 2023.
More than 1.1 million Texas jobs were supported by exports
in 2019, which is by far the most among states. Texas also led Texans are resilient and experienced at weathering
exports in 2020, shipping more than $276 billion in goods — hardships. And because of those traits, our businesses and
19 precent of the national total. So, it’s no secret that limiting industries have responded to recent economic turmoil with
supply chain disruptions is vital to the Texas economy. determination, innovation, and grit. Despite the turbulence
we’ve felt in the last two years, the state of Texas is poised
Our Good for Texas Tour: Supply Chains Edition to return stronger than ever. H
(https://comptroller.texas.gov/economy/economic-data/
supply-chain/) kicked off in October last year with a visit
to Texas Instruments in Dallas, followed by visits to several
other industry titans that are closely connected to supply
TEXAS TOWN & CITY • 23 • MARCH 2022You can also read
