In 1991, the Texas Legislature authorized a new type of sales tax, a Section 4B sales tax, which allowed the promotion of a wide range of civic and commercial projects. The Leonard Community Development Corporation promotes economic and community development within the city and on behalf of the city by developing, implementing, providing, and financing projects as defined in Section 4B of the Development Corporation Act (Article 5190.6 V.T.C.S.).
The Leonard Community Development Corporation (commonly known as "4B") was established on July 1, 1998 following the passage of one-fourth (1/4) of one-percent (1%) sales tax dedicated to community development by the residents of Leonard. The LCDC-4B is a non-profit, tax exempt Texas Corporation, which is a separate entity from any other board or commission of the City of Leonard, and provides leadership and funding for projects that enhance and preserve Leonard's excellent quality of life. The tax provides cities with a wider range of uses for the tax revenues because it is intended to give communities an opportunity to undertake a project for quality of life improvements.
The Section 4B tax can be used to fund projects that are typically considered to be community development initiatives. Authorized categories under Section 4B include, among others, land, buildings, equipment, facilities, expenditures and improvements for professional and amateur sports facilities, park facilities and events, entertainment, convention and tourist facilities. As of June 20, 2003, the Section 4B tax may also be expended for the development of water supply facilities or water conservation programs; however, in order to undertake a water supply facility or water conservation program, the facility or program has to be approved by a majority of the qualified voters of the City of Leonard in an election called and held for that purpose.
The business of the LCDC is managed by a Board of Directors composed of seven (7) members, who reside within the City of Leonard or be a resident of the county in which the major part of the city area of the city is located, appointed to two-year staggered terms by City Council. All two-year terms expire in September of the appropriate year. Not less than three (3) members of this Board of Directors shall be persons who are not employees, officers or members of the governing body of the City of Leonard. The LCDC-4B meets in regular session monthly if possible to conduct the business affairs of the Corporation.
The regular meeting dates are scheduled for the fourth Wednesday of each month at 9:00 A.M. The meetings are held at City Hall Council Chambers. The 4B Corporation also develops annual fiscal year budgets and annual projects based on sales tax projections that require approval from the City Council. The 4B Corporation is overseen by the development corporation’s Board of Directors and by the City Council. The 4B Corporation is subject to both the Open Meetings Act and the Public Information Act, therefore; accurate meeting minutes are considered permanent records.