Like an Economic Development Corporation (EDC), a Municipal Development District (MDD) is a special purpose district created for the purpose of generating economic development and growth opportunities within the district boundaries. Unlike EDCs, MDDs may include a city's Extraterritorial Jurisdiction (ETJ) in its boundaries, which allows the MDD to capture more revenue from sales tax.

An Extraterritorial Jurisdiction (ETJ) is the unincorporated area outside of a city's corporate limits. The size of the ETJ is based on population of the city it surrounds. Because the City of Gunter has a population of less than 5,000, the ETJ is a one-half mile extension from the city limits.

If approved, the district will receive one-half of 1 percent (0.05%) sales tax on any purchases of taxable items in the district, which will include the Extraterritorial Jurisdiction (ETJ). Currently the Gunter EDC is limited to one-half of 1 percent (0.05%) on taxable purchases only within the city limits.

Anyone making a purchase of taxable items inside the boundaries of the Gunter MDD will pay the sales tax. Sales tax for purchases within the city limits will remain unchanged at 8.25%. Sales tax for purchases within the ETJ would increase from 6.25% to 6.75% (one-half of 1 percent). This would amount to an additional 5 cents on a $10 purchase or 50 cents on a $100 purchase.

State law, Texas Local Gov Code Chapter 377, governs and authorizes all MDD projects and expenditures for a variety of economic development activities. As defined by Sec. 377.001(3), for MDDs, a "Development project" means: (A) a "project" as is defined by Sections 505.151-505.158 (the EDC Type B chapter); or (B) a convention center facility or related improvement such as a convention center, civic center, civic center building, civic center hotel, or auditorium, including parking areas or facilities that are used to park vehicles and that are located at or in the vicinity of other convention center facilities. Further, Sec. 377.072, specifically details how MDD funds may be used. Authorized projects include: *Industrial and manufacturing projects *Retail development projects *Recreational or community facilities projects *Housing projects *Convention center facilities and related improvements *Projects that promote new or expanded business development, with or without creating or retaining primary jobs. "Primary jobs" are defined by Texas Local Government Code 501.002 The MDD may also fund all projects that are authorized for Gunter's current EDC Type B, including exceptions for small cities that are considered quality of life improvement projects.

Both EDCs and MDDs are authorized to issue bonds. Both must obtain prior consent by the Office of the Attorney General of Texas. All types of EDCs may issue bonds per Texas Gov Code Sec. 501.201, and Sec. 505.104 details how EDC Type B bonds are repaid. See Sec. 377.073 for MDDs.

If approved, the District will be governed by a Board of at least 4 Directors and as many as the City Council chooses to establish. Identical to the Gunter EDC, the City Council will adopt policies and guidelines that will govern the actions of the MDD. The Board of Directors will adopt a budget each year and conduct an annual audit by an independent auditor.

Yes. By statute, council members may serve on EDC Type A boards, EDC Type B boards and MDD boards. Board members EDC Type A, Sec. 504.051 Board members EDC Type B, Sec. 505.051 Board members MDD, Sec. 377.051

Sales tax collected for the MDD is reported and distributed separately by the Texas Comptroller and the information is available to the public. Additionally, state law requires that all MDD funds be deposited in a special account that is separate of all city accounts. See Texas Loc Gov Code Sec. 377.108.

Yes. Identical to municipalities, MDDs are not required to report to the Legislature via the Texas Comptroller, but reporting is required for transparency. Cities, Counties and other political subdivisions must annually compile and report their debt obligation data online via their websites. See "Overview" and "Frequently Asked Questions" explained by the Texas Comptroller. Texas Local Gov Code Sec. 140.005 states that the governing body of a…district or authority organized under Article III, Section 52 [such as MDDs]… of the Texas Constitution, shall prepare an annual financial statement showing for each fund subject to the authority of the governing body during the fiscal year: (1) the total receipts of the fund, itemized by source of revenue, including taxes, assessments, service charges, grants of state money, gifts, or other general sources from which funds are derived; (2) the total disbursements of the fund, itemized by the nature of the expenditure; and (3) the balance in the fund at the close of the fiscal year.

Yes. Created for the purpose of economic development, MDDs are political subdivisions of the State of Texas and the municipality of its creation. All political subdivisions, including MDDs, are subject to Texas Gov Code Chapter 551, the Texas Open Meetings Act, which requires properly noticed open meetings. These requirements are identical to the City of Gunter, Gunter’s EDC, the Planning & Zoning Commission and Park Board.

Early voting and Election Day voting dates, times and locations are published by Grayson County Elections.

City of Gunter Ballots by area: BS-5 Commissioner Precinct 1 / Constable Precinct 4 / Voter Precinct 108 BS-14 Commissioner Precinct 3 / Constable Precinct 3 / Voter Precinct 309 Gunter ETJ Ballots: BS-4 Commissioner Precinct 1 / Constable Precinct 4 / Voter Precincts 106 & 108 BS-7 Commissioner Precinct 1 / Constable Precinct 4 / Voter Precinct 108 (Gunter Crossing MUD) BS-13 Commissioner Precinct 3 / Constable Precinct 3 / Voter Precincts 307, 308 & 309

Proposition A: Voters in the City & ETJ will decide if the MDD is created or not. The creation of the MDD is contingent upon approval of Proposition B, which terminates the EDC. Proposition B: Voters in the City only will decide if the EDC is terminated upon approval of Proposition A, which creates the MDD. If the MDD is created, the EDC will be terminated. If the MDD is not created, the EDC will not be terminated. If the EDC is not terminated, the MDD will not be created. There is ZERO risk that neither would survive regardless of the outcomes of Propositions A & B. Once the voters have decided, the City of Gunter will move forward with the existing EDC Type B or a new MDD. Proposition C is completely separate from the other two. The re-authorization of the street tax will pass or fail alone. The ballot language for all propositions was approved by the Texas Secretary of State, the Texas Comptroller of Public Accounts and Grayson County. Municipalities must utilize two separate propositions on one ballot because only registered City residents may vote on City measures such as Proposition B but because the MDD district, if approved, would include the City and the ETJ, registered City and ETJ residents may vote on measures such as Proposition A.