This document discusses local government in Texas, focusing on municipal and county governments. It provides information on the various forms and structures of city and county governments, how they are organized, their powers and limitations, revenues and expenditures. The key points made are: 1) Local governments, especially cities, have the greatest impact on citizens' daily lives through services like water, schools, streets, and public safety. 2) Texas has multiple forms of municipal government including strong mayor-council, weak mayor-council, and council-manager systems. 3) County governments have a standardized structure across Texas and limited powers granted by the state. Their revenues primarily come from property and sales taxes. 4)

1. By Loren Miller

2. Local Government
• When most people think about government, they
think about the national government.
• Of all three levels of government, local government
has the greatest impact on our daily lives.
– Drinking water
– Schools
– Streets
– Parks and recreation
– Police and Fire Protection

3. Local Government
• Local Government takes many forms:
– Municipalities (cities and towns)
• 1,200+
– Counties
• 254
– Special Districts (water, hospital, schools, housing,
conservation, community colleges, etc.)
• 3000+
– Councils of Governments
All collect revenue and provide services

4. Local Government
• Dillon’s Rule: (followed in Texas and in 40 states)
– A legal principle that local governments have only
those powers granted by their state government
State Powers
Local Powers
Cities, Counties, and Special Districts are creatures of the State

5. Local Government
• Cooley Doctrine
– Local government is a matter of absolute right and
the state may not take it away
Local power is not dependent upon the state

6. Local Government
• Local governments may receive part of their money
from the state or national government.
• States often complain about unfunded federal
mandates but local governments face the same
dilemma from the state
– Meeting jail standards
– Providing access for the disabled
– Improving the quality of air
– Meeting federal and state educational standards

7. State Government Employment
Government Employees 318,000 2
Employees per 10,000 population 126 44
Average Earnings $50,139 27
Per Capita Government
Expenditure $4,411 50
Per Capita Government Debt $1,210 48
Number Texas’s Rank
2011

8. Local Government Employment
Government Employees 1,134,000 2
Employees per 10,000 population 451 7
Average Earnings $42,489 35
Per Capita Government
Expenditure $4,820 21
Per Capita Government Debt $7,868 3
Number Texas’s Rank
2011

9. Municipal Governments
• City government powers are outlined and restricted
by state and national constitutions, municipal
charters, and statutes.
• Texas has two legal classifications of cities:
– General Law Cities: a community with a population
of 201 or more; limited by state law
– Home Rule Cities: a community with a population of
5,000 or more; locally adopt and revise a charter;
must be approved in an election

10. General Law Cities
• A general law city has extraterritorial jurisdiction
over zoning and building for half a mile beyond its
formal boundaries.
• A general law city may annex territory no greater
than 10 percent of their existing land but the
residents must approve of the annexation by a
majority vote.

11. Home Rule Cities
• A city charter establishes the powers of municipal
officers, sets salaries and terms of office, and
spells out procedures for passing, repealing or
amending city ordinances.
• A home rule city can exercise powers not given to
the state or to general law cities:
– Recall (El Paso, College Station)
– Initiative (San Antonio, Farmers Branch)
– Referendum
– Annexation

12. Home Rule Cities
• A home rule city also has extraterritorial
jurisdiction over zoning and building for five miles
beyond their border.
• Home rule cities can annex territory by a simple
majority vote of the city council and it does not
require the approval of the residents of the area to
be annexed.

13. Forms of Municipal
Government
Strong Mayor Council
Among larger American cities, the strong mayor
council is the predominant structure (New York, Los
Angeles, Chicago, Philadelphia, Houston)
The mayor is the chief administrator and the political
head of the city
-- provides strong leadership but there is the
threat of corruption

14. Forms of Municipal
Government
Strong Mayor Council
Characteristics:
-- Mayor is elected at large and has the power to
hire and fire department heads
-- Mayor has the power to veto council actions
-- Mayor has budgetary power (plan for raising and
spending city money)
-- Mayor sets the agenda for the council

15. Strong Mayor Council
Voters
Mayor Council
Department Heads
Appoints with approval of the council

16. Forms of Municipal
Government
Weak Mayor Council
The mayor’s position is weak because the office
shares appointive and removal power over city
personnel; power is decentralized.
The mayor is no more powerful than the other
members of the council.

17. Weak Mayor Council
Voters
Mayor & Council Other Officials
Department Heads

18. Forms of Municipal
Government
Council-Manager
The council-manager system was initiated as a
reform during the Progressive Era (1900-1917).
Reformers attempted to substitute “efficient and
businesslike management” for “boss rule.”
-- seen as a means of separating politics from the
administration of government
-- first implemented in 1913 in Texas by Amarillo
and by Terrell
-- used in Dallas, San Antonio, and Plano

19. Forms of Municipal
Government
Council-Manager
The mayor and the council make decisions after
debate on policy issues such as taxation, budgeting,
annexation and services.
-- most city managers exert strong influence on
these matters
-- once policy is made, the city manager directs an
appropriate department to implement that policy

20. Forms of Municipal
Government
Council-Manager
The city manager is professionally trained (MPA),
earns a competitive salary, and serves at the pleasure
of the council.
-- the city manager in Dallas makes
$400,000/year (2014)
-- councils and mayors are not supposed to
“micromanage” departments
-- tend to respond more to elite and middle class
concerns rather than the concerns of the working
class

21. Council-Manager
Voters
Mayor Council
Department Heads
City Manager

22. Forms of Municipal
Government
Commission
This was approved by the Texas legislature for
Galveston after a hurricane demolished the city in
1900. Today, none of Texas’s cities operate under
this form of government.
Commission members are elected by the people and
perform both executive and legislative functions.
-- they make up a municipal legislature and also
administer a city department

23. Commission
Voters
City Commission
Department Heads

24. Municipal Elections
• Mayors and city council members are usually
elected for terms according to the city charter
(usually 2 to 4 years).
• Many cities have adopted term limits
– Some limit the total number of terms while others
limit the number of consecutive terms that a
member can serve
• All city elections in Texas are nonpartisan

25. Municipal Elections
• Cities have the choice of using at-large or a single-
member district system
– In a pure at-large system all of the voters elect all of
the members of the council
• The membership of the council tends to be
homogeneous (less conflict)
– In an at-large place system all of the voters vote for
candidates who run for specific seats
– In a single-member district system voters cast a ballot
for a candidate who resides within their district
• Leads to greater diversity within the council and
also leads to increased pressure to “gerrymander”

26. Municipal Elections
• A small number of Texas cities and some school
boards use cumulative voting
– People cast the number of votes equal to the
number of seats available
• If there are six seats a voter may cast 3 votes for
one candidate, 2 for a second, and 1 for a third;
or they may cast 6 votes for one candidate
– This has been used to increase minority
representation

27. Municipal Services
• For most people, city government’s primary job is
to provide for basic services, but limited resources
often lead to competing demands
– Police and fire protection
– Streets
– Water, sewer, and sanitation
– Parks and recreation
• City government also provides for regulation
– Zoning
– Construction
– Food service

28. Municipal Finances
• Most city governments in Texas face a serious
financial dilemma: they barely have enough money
to provide basic services and must reject or
shortchange new services
• Cities’ two largest revenue sources, sales tax and
property tax, are limited by state law
– Regressive taxes
• Texas cities are relying more heavily on fees
– Liquor licenses, water rates, and franchise fees for
cable television providers

29. TEXAS MAJOR STATE AND LOCAL TAXES AS A
PERCENTAGE OF HOUSEHOLD INCOME
Lower
Income
Lower
Middle
Middle
Income
Upper
Middle
Upper
Income
Sales Tax 5.9% 3.5% 2.8% 2.6% 1.8%
Gas Tax 0.8% 0.5% 0.4% 0.3% 0.2%
Motor
Vehicle
Tax
0.7% 0.5% 0.5% 0.4% 0.3%
Local
Property
Tax
4.7% 2.7% 2.3% 2.3% 2.0%
Texas State Comptroller, 2007

30. Municipal Finances: Taxes
• Texas allows municipalities to levy taxes based on
the value of property
– The problem with property taxes is that poorer cities
with low property values must charge a high rate to
provide for minimum services
• Highland Park tax rate: 22 cents/$100 valuation
• Wylie tax rate: 90 cents/$100 valuation
• The other major source of revenue is the optional
1.25 – 2 percent sales tax
– The sum of city, county, and special district sales
tax cannot exceed 2 percent

31. Municipal Finances: Fees
• When residents are charged for a particular
government service, this is called a user fee
– These fees are popular because voters often
oppose higher taxes but generally believe that
people should pay for what they actually use
• Cities may charge for city provided electricity,
water, sewage, and garbage collection
• Other charges include swimming pool fees, golf
course fees and ambulance service; inspection
fees, building fees, and beer and liquor licenses

32. Municipal Finances: Bonds
• Money for capital improvements and emergencies
often must be obtained through the sale of
municipal bonds
– Construction of city buildings, parks, recreation
centers
– Flood or hurricane damage
• Cities may issue bonds to be repaid from taxes and
must be approved by the voters of the city

33. Abatements and Exemptions
• A tax abatement is a tax reduction or exemption
granted by local government to an industry or
business.
• Tax exemptions
– Homestead exemption (up to 20% of the assessed
value of the property)
– Additional exemption for disabled veterans and for
homeowners 65 years of age and older

34. CITY REVENUE OF HOUSTON IN 2012
(%)
27
48
10
15
Column1
Sales Taxs
Property Taxes
Franchise Fees
Other

35. Problems with Municipal
Governments
1) The rapid shift of the population to urban areas
has seriously taxed the city government’s ability
to provide necessary services (water, sewer,
police and fire protection).
2) Middle and upper income flight has decreased the
tax base (property tax)

36. Counties
• Counties are units of local government that are limited
to those structures and powers specifically granted by
state law
– If county officials want to respond to a local problem by
taking an action not specifically allowed by state law,
they must obtain authorization from the Texas legislature
• Texas has 254 counties, the most in the nation, and all
counties in Texas have the same governmental
structure
– Loving County (population 82) has the same structure as
Harris County (population 4,180,000)
– Rockwall County (147 square miles) has the same
structure as Brewster County (over 6,000 square miles)

37. Counties
• The Texas Constitution provides for the election of
four county commissioners, county and district
attorneys, a county sheriff, a county clerk, a district
clerk, a county tax assessor-collector, a county
treasurer, constables, as well as judicial officers
– All are elected in partisan elections and serve a four
year term
– County officials tend to think of their office as their
personal fiefdom and resent interference by other
officials
• Hence, Texas counties are usually highly
decentralized

38. County Voters
Precinct 1 Precinct 2 Precinct 3 Precinct 4
Dist. JudgeDist. Sheriff County County Tax Surveyor Treasurer
Clerk Clerk Attorney Assessor
Commissioners Court
Justice of the Constable
Peace
Comm.
Precinct 1
Comm.
Precinct 2
Comm.
Precinct 3
Comm.
Precinct 4
County
Judge
Auditor

39. Commissioners Court
• The Commissioners Court is the board of directors
for the county. It is composed of four
commissioners and the county judge.
– Commissioners Court has executive and legislative
duties, not judicial
– The commissioners are elected for four year
staggered terms
– They establish the budget for the county and set the
tax rate
Amount Needed = Assessed Value of Property x Rate
Rate = Amount Needed/Assessed Value
Collin County Commissioner’s Salary: $107,811 (2013)

40. County Property Tax Rates
2012
County Total Tax Rate Per $100
Five Highest Rates
Duvall $1.12
Throckmorton $1.04
Jim Hogg $1.03
King $1.01
Foard $0.95
Five Lowest Rates
Dallas $0.24
Collin $0.24
Upton $0.23
Morris $0.23
Midland $0.20

41. County Finance
• Just as the structure of county government is
frozen in the Texas Constitution, so is the county’s
power to tax and to spend
• The Texas Constitution authorizes county
governments to collect taxes on property
– They may impose higher property taxes that would
generate up to 8 percent more revenue than the
previous year without citizen’s ability to initiate a roll
back on the higher rate

42. County Finance
• Counties receive small amounts of money from
various sources that add up to an important part of
their revenue
– Fees on the sale of liquor
– Various motor vehicle taxes and fees
– Traffic fines
• Counties may borrow money through bonds to pay
for capital improvements (new jail; new court
house)

43. County Judge
• The county judge generally is the most influential
county leader
– Presides over Commissioners Court
– In rural counties they also hear cases in County
Court
• Does not need to be a lawyer
– Has no formal authority over other elected officials,
but has influence over their budget
Collin County Judge’s Salary: $131,990 (2013

44. County Sheriff
• The county sheriff, as chief law enforcement officer
in the county, is charged with keeping the peace in
the county.
– Appoints deputies
– Oversees the county jail and its prisoners
– Usually focuses on crime in unincorporated areas
and leaves law enforcement in the cities primarily to
municipal police
Collin County Sheriff’s Salary: $138,792 + $9,100 Auto (2013)

45. County Law Enforcement
• The county judge in rural counties hears minor
civil and criminal cases (A & B misdemeanors) in
County Court
• Each county has from one to eight justice of the
peace precincts (number is decided by
Commissioners Court)
– Handle minor civil (small claims) and criminal (Class
C) misdemeanors
– Serve as coroner
• Constables assist the JPs by serving papers
Collin County Salaries (2013): Justice of the Peace -- $94,753 Constable -- $89,762

46. County/District Attorney
• District attorneys generally focus their attention on
the district court (felonies)
• County attorneys represent the state in civil and
criminal cases and advise county officials
• Some counties have both a county attorney and a
district attorney, while other counties may have
one or the other
Collin County Salary: $146,565 (2013)

47. County Clerk
• The county clerk keeps records and handles
various paperwork chores for both the county
court and the commissioners court.
• In addition, the county clerk files legal documents
(such as deeds, mortgages, and contracts) in the
county’s public records and maintains the county’s
vital statistics (births, deaths, marriage records).
Collin County Salary: $110,988 (2013)

48. County Tax Assessor-Collector
• The county tax appraisal district assesses property
values in the county, so the County Tax Assessor-
Collector no longer (since 1982) assesses property
values.
• They collect county taxes and fees, including
license tag fees for motor vehicles.
• This office also handles voter registration.
Collin County Salary: $109,745 (2013)

49. County Treasurer & Auditor
• The county treasurer receives and pays out county
funds authorized by the commissioners court.
• A county of 10,000 or more people must have a
county auditor, appointed by the county’s district
court judges.
– Checks the account books and records of officials
who handle county funds

50. Problems with County
Government
1) Obsolete – difficult to cope with a primarily urban
state; principally a rural oriented structure.
2) Lack of Centralization – too many people are elected and
independent; lack of coordinated planning. Difficult for
voters to intelligently choose officeholders (long ballot)
3) Graft and Corruption – state law prohibits competitive
bidding; commissioners decide who gets the contracts
to work in their precincts; spoils system is used for
hiring.
-- Much of the money contributed to county elected officials come from
firms or people who do business with the county

51. Special Districts
• A special district is a unit of local government that
performs a single service in a limited geographic
area. Districts can be created to do almost anything
that is legal.
– Drainage districts
– Community College districts
– Library districts
– Metropolitan transit authorities
• The number of special districts has increased
dramatically in the last 50 years.
– There are more special districts in the United States than any
other single type of government
– Only Illinois and California have more special districts than Texas

52. Special Districts in Texas
1952 1962 1972 1982 1992 2002 2012
491 733 1,215 1,681 2,266 2,245 2,800+
Special districts are the fasting growing unit of government
in the United States and in Texas

53. Special Districts
• There are two types of special districts in Texas:
– Independent school district
– Nonschool special district
• The special district must be chartered by the state or
otherwise approved by the Texas legislature.
– They have taxing authority (property; sales tax; tolls)
– They are independent from other governments
• The Plano Independent School District is completely
independent from Plano’s city government

54. Special Districts
• Why create a special district?
– A city or county may have limited revenue
• They may have reached the state-mandated sales tax limit of
2%
– Only a small area within a city or county may need the
service. Why tax everyone?
– A developer wants to provide water and sewerage for
a subdivision that lies outside the city limits.
• Municipal Utility District (MUD)
– The demand for a service may extend beyond a single
jurisdiction.
• A river authority with the power to govern the use of water
throughout the river’s watershed

55. Community College Districts
• Each community college district is governed by an
elected board that has the power to set property tax
rates, issue bonds (subject to voter approval), and
adopt an annual budget.
• There are 50 community college districts in Texas.
• Community colleges are funded by state
appropriations, student tuition and fees, local
property tax, and some federal grants.

56. Funding Sources for Collin College
(%)
31.1
15.9
30.7
15.8
6.5
Column1
Property Tax
State
Federal
Tuition and Fees
Misc.
2012-13

57. Special Districts
• Problems with special districts
– They are sometimes called “hidden governments”
because the actions of district officials and employees
are less visible than if a county or city provided the
services; board elections are not held at the same time
as general elections, so the voter turnout is quite low
– The cost of borrowing money is quite high as they are
forced to issue revenue bonds (paid from fees
collected for the service) and pay a high interest rate
– Because special districts are usually quite small, they
may purchase goods and services in limited quantities,
paying higher prices

58. School Districts
• More than 1000 Texas school districts have been
created by the Texas legislature.
– Governed by a popularly elected, nonsalaried board of
trustees
– Elections are nonpartisan and do not coincide with
statewide elections; in urban areas, city and school
board elections may coincide (usually the second
Saturday in May)
– The board makes district policy and are responsible for
hiring a superintendent who manages the day-to-day
operation of the district
• Board members often make political demands on
the superintendent

59. School Districts
• Public education has become a shared responsibility
(both financially and from a policy perspective) with
increased state and federal requirements for testing
students
• Different school districts have varied sources of
financial support
• The state’s system of funding public education has
long been controversial as the bulk of funds for many
school districts is the property tax

60. Funding Sources for Texas Schools
(%)
47
43
10
Column1
Local
State
Federal
2011

61. Houston and El Paso
(%)
2011
0
10
20
30
40
50
60
70
Houston El Paso
Local
State
Federal
Houston El Paso

62. Councils of Government
• Although the needs of local government vary, the
basics of providing governmental services are the
same for virtually all local governments.
– Nearly all municipal and county governments, as well as most
special districts, participate in a council of government (COG).
– COGs have been created to allow cooperation and
communication by local governments within a specific region.
– Because COGs are not governments, they have no taxing power
and cannot pass laws, rules or ordinances
• They are used to provide training for city managers, council
members, mayors, and other elected and appointed officials
• They are also useful in planning for future regional
environment, transportation, and land use issues