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READY?[Administrative Services Committee on February 6, 2024.]
ALRIGHT, GOOD AFTERNOON.THIS IS TUESDAY, FEBRUARY 6TH, 2024.
THIS IS A MEETING OF THE ADMINISTRATIVE SERVICES COMMITTEE.
AND WITH ME ARE COMMITTEE MEMBERS, DYLAN HEDRICK AND MARGARET LT.
UM, WITH THAT WE WILL START INTO OUR AGENDA.
UH, THE FIRST ITEM IS APPROVAL OF MINUTES TO CONSIDER APPROVAL OF OUR NOVEMBER 12TH, 20, 23 MINUTES, WHICH ARE ATTACHED TO YOUR PACKETS COMMITTEE MEMBERS.
DO YOU, HAVE YOU HAD TIME TO REVIEW THEM AND DO I HAVE A MOTION? YES.
UM, DO WE HAVE ANY MEMBERS OF THE PUBLIC HERE? I DON'T SEE THEM.
DO WE HAVE ANYONE SIGNED UP? NO, MA'AM.
ITEM THREE, UH, IS ITEMS FOR INDIVIDUAL CONSIDERATION.
THREE A IS TO DISCUSS TIFF BOARD MEMBER COMPOSITION.
UM, SO, UH, ASSISTANT CITY MANAGER, PHILIA IS HERE TO TALK US THROUGH IT.
PHIL, WE THANK YOU FOR THE OPPORTUNITY TO, UH, TO VISIT ABOUT, UH, UH, THE TIF BOARD.
I KNOW THERE WAS DISCUSSION AND A REFERRAL TO THE COMMITTEE AS RELATED TO THE COMPOSITION OF, UH, TIF BOARD.
SO I PREPARED A PRESENTATION, UM, IT MAY BE REMEDIAL FOR, FOR THIS GROUP, BUT IT WAS, UM, GOING OVER THE, UH, THE FOUNDATIONS OF A, OF A TIF, WHAT THEY'RE FOR.
AND THEN WE PULLED INFORMATION AS IT RELATES TO, UH, SOME OF OUR NEIGHBORING AND SISTER CITIES AS IT RELATES TO WHAT THEY'RE DOING WITH, WITH THEIR TIF BOARDS.
BUT I THINK EVERYONE'S AWARE THAT THE TIF BOARD IS A MECHANISM FOR LOCAL GOVERNMENTS TO, UH, PAY FOR IMPROVEMENTS AND DRAW PRIVATE INVESTMENTS INTO AREAS.
AND, UH, WE HAVE, UM, A FEW THAT WE HAVE OPERATING WITHIN OUR, OUR CITY RIGHT NOW.
AND THESE ARE GOVERNED BY, UH, CHAPTER THREE 11 OF THE TAX CODE.
UH, THE BENEFITS OF THE TIFF INCLUDE BRINGING IN, UM, UH, NEEDED PUBLIC INFRASTRUCTURE TO DRAW BUSINESS BOOSTING DEVELOPMENT WITH INCENTIVES, AND THEN ALSO, UH, LESSENING THE COST OF PRIVATE DEVELOPMENT.
AND I'M MOVING THROUGH THIS QUICKLY.
UH, IF Y'ALL HAVE Y'ALL HAVE QUESTIONS, PLEASE, PLEASE LET ME KNOW.
UH, I THINK YOU'VE SEEN, UH, THIS GRAPH BEFORE OF HOW THE, THE TIFF FUNCTIONS, UH, JUST BASED OFF THEIR INCREMENTAL INCREASE AFTER THE, THE, UH, THE TIFF IS, IS ESTABLISHED.
UH, SO AS IT RELATES TO, TO BOARD COMPOSITION, UH, THE BOARD CONSISTS, UH, OF FIVE MEMBERS, UM, OF AT LEAST FIVE MEMBERS AND NOT MORE THAN THAN 15.
THE CITY CURRENTLY APPOINTS THE, THE CHAIRPERSON OF THE, OF THE TIF BOARD.
AND THEN THE REMAINING BOARDS, UH, MEMBERS ARE APPOINTED BY THE, THE GOVERNING BOARD THAT, UH, THAT MAY BE PARTICIPATING WITH IT AS WELL.
AND AS, AS WELL AS THE, THE CITY PARTICIPATION AS WELL.
UH, MATT PROVIDED AN EXAMPLE TO ME THAT, UH, THOSE THAT MAY BE PARTICIPATING SUCH AS COLLEGE DISTRICT, HOSPITAL DISTRICT, THAT THEY HAVE A PRO RATA SHARE OF REPRESENTATION BASED ON THE AMOUNT OF REVENUE THAT THEY'RE BRINGING IN.
SO THEY CAN, THEY CAN SERVE, UH, BASED ON THEIR, THEIR REVENUE THAT THEY'RE BRINGING IN TO THE TIF.
UH, WITH THAT CHAPTER THREE 11 DEFINES THAT ANY OF THE BOARD MEMBERS MUST BE AT LEAST 18 YEARS OLD, AND THAT, UH, IF IT'S A CITY OR COUNTY CREATED, UH, TIFF OR ORTS DISTRICT, THAT THEY MUST RESIDE WITHIN THE COUNTY, UH, OR THE ADJACENT COUNTY OR OWN PROPERTY WITHIN THE ZONE.
UH, SO WITH THAT, UH, I ATTACH, AND I BELIEVE WE PROVIDED THIS BACK IN, UH, IN JANUARY OF, UM, SOME OF OUR SISTER CITIES THAT ARE OUT THERE.
THERE'S SOME UNIQUE ITEMS OUT THERE.
UM, WANTED TO TO POINT OUT, UH, ARLINGTON IS ONE WHERE THEY HAVE COUNCIL MEMBERS THAT ARE SITTING ON THEIR TIF BOARDS.
UH, FRISCO HAS A REQUIREMENT THAT, UM, ANY INDIVIDUALS SERVING ON THESE BOARDS, UH, LIVE WITHIN THE CITY FOR AT LEAST ONE YEAR.
AND, UH, MESQUITE HAS, UM, UH, STIPULATIONS THAT A REPRESENTATIVE, REPRESENTATIVE OF INDUSTRY MUST BE WITHIN THAT, UH, ZONE.
SO, UH, THERE ARE, UM, UH, MOST DO, WELL ALL DO FOLLOW THE CHAPTER THREE 11 OF THE TAX CODE.
BUT, UM, ALL OF THEM DO HAVE UNIQUE, UH, ASPECTS.
UH, ONE IN PARTICULAR THAT I THOUGHT WAS UNIQUE WAS RICHARDSON, AND I KNOW WE TALKED ABOUT THIS WITH THE, UH, CHARTER REVIEW COMMITTEE AS RELATED TO, TO CITY COUNCIL, BUT AS THEIR, AS THEIR, UH, TIFF BOARDS THAT THEY, UH, CANNOT BE IN THE ARREARS OF TAXES OR HAVE ANY OTHER LIABILITIES WITH THE CITY.
SO, UH, WITH THAT, I WANTED TO, UH, OPEN THAT UP TO DISCUSSION WITH THE, WITH THE COMMITTEE AS I KNOW THIS WAS THE ITEM THAT WAS SUBMITTED FORWARD.
I MEAN, MOST OF, HE MENTIONED RICHARDSON'S REQUIREMENTS.
THOSE ARE THE REQUIREMENTS WE HAVE FOR OUR BOARDS AND COMMISSIONS NOMINEES.
I WOULD, I WOULD THINK THAT WOULD BE APPROPRIATE.
MADAM CHAIR, WHAT? I KNOW YOU SUBMITTED THIS ITEM.
WHAT IS THIS, WHAT ARE WE TRYING TO LOOK AT HERE SPECIFICALLY? IT WAS WRITTEN AS THE COMPOSITION.
TO ME, THAT MEANS THE NUMBER OF PEOPLE AND NOT NECESSARILY THE REQUIREMENTS.
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THIS CAME UP AFTER SOME CONCERNS WERE RAISED THAT, UM, WE WERE PUTTING JUST PRIVATE CITIZENS, EACH OF US APPOINTING SOMEONE TO THESE TIF BOARDS WITHOUT ANY SPECIFIC, UM, AREAS OF EXPERTISE OR KNOWLEDGE.AND THAT ESSENTIALLY WHAT WAS HAPPENING IS, UH, STAFF WAS PRIMARILY LEADING THE DISCUSSION AND THEY WERE BASICALLY RUBBER STAMPING STAFF RECOMMENDATIONS.
UM, WHICH ISN'T REALLY WHAT WE'RE GOING FOR.
UH, WE'RE GOING FOR MORE INPUT, MORE QUESTIONS, MORE PUSHBACK.
UM, AND, AND RECENTLY WE'VE HAD, I HAVE BEEN BROUGHT SOME COMPLAINTS THAT, THAT, UM, SOME TIFF BOARDS ARE ALSO KIND OF TAKING OFF AND SAYING, OKAY, WE'RE GONNA START REQUIRING THE PRAYER AND THE PLEDGE WITH TIF MEMBERS NOT BEING HAPPY ABOUT THAT.
THERE'S SOMEWHAT OF A LACK OF, UM, POSSIBLY THIS COULD BE MADE BETTER IF WE LOOKED AT INCORPORATING AS SOME OTHER CITIES DO.
EITHER, UM, A COUPLE COUNCIL MEMBERS IN THERE SEATED IN TO BE INVOLVED OR PEOPLE WITH SPECIFIC AREAS OF EXPERTISE.
SO THIS IS, THIS IS A SIGNIFICANT, THESE ARE SIGNIFICANT BOARDS AND THEY HAVE MORE AUTHORITY OVERALL THAN A LOT OF OUR BOARDS AND COMMISSIONS THAT ARE PURELY ADVISORY.
AS WE DISCOVERED, TIF BOARDS ARE A STEP UP FROM PURELY ADVISORY.
UM, SO HAVING IT BE, I'M THINKING OF OUR ANIMAL SERVICES ADVISORY BOARD.
WE HAVE A MIX OF JUST NOW OF SOME REGULAR CITIZENS, BUT WE ALSO HAVE REQUIREMENTS OF A CERTAIN NUMBER OF THEM HAVING AREAS OF PROFICIENCY ABOUT ANIMAL SERVICES AND, AND AREAS RELATED TO THAT.
SO I THOUGHT IT WAS WORTH DISCUSSION THAT WE COULD, GIVEN THE AREAS THAT WE'RE FORGING INTO AHEAD, LOOK AT, DO WE WANT TO SHIFT AT THIS POINT FOR THE FUTURE, THE ARE TIFFS IN THE DIRECTION OF INCORPORATING MORE EXPERTISE AND EVEN POSSIBLY MIXING IN SEVERAL COUNCIL MEMBERS OR, OR ONE IN SOME OF 'EM, UM, SOME OF 'EM THAT HAVE ONE, SOME OF 'EM HAVE THE MAYOR AND THE MAYOR PRO TEM.
EVERYBODY'S ALL OVER THE MAP WITH THIS.
DO WE, ARE WE CONTENT WITH THE WAY IT IS? DO WE FEEL LIKE WE'RE GETTING OPTIMAL RESULTS FROM THE WAY THAT WE'RE OPERATING IT RIGHT NOW? OR DO WE WANT TO LOOK AT MOVING TOWARD A MORE, UM, PROBABLY A MORE LIKE ANIMAL SERVICES ADVISORY, MORE EXPERTISE WOVEN IN WITH CITIZENS? THAT'S THE BIG QUESTION AND THE ANSWER.
IF WE WANNA LEAVE IT THE WAY IT IS, IT SEEMS LIKE WHAT WE'RE BASICALLY GETTING IS A STAFF LED RESULT IN MOST CASES, IS THAT IF THAT'S WHAT WE WANT, UM, THEN THAT'S FINE.
IF WE WANT SOMETHING MORE THAN THAT, I THINK WE COULD CONSIDER, UH, DOING SOMETHING DIFFERENT.
SO WHAT KIND OF EXPERTS WOULD YOU RECOMMEND FOR A TIF BOARD? LIKE, LET'S SAY, UM, TIF ONE? LIKE WHAT, WHAT IDEALLY WOULD YOU LIKE TO SEE A PROFESSIONAL, A PROFESSIONAL'S CAREER BEING IN? IT COULD BE A LOT OF THINGS.
SO, UM, ONE OR MORE OF THE CITIES ACTUALLY, UM, IF YOU, IF YOU APPOINT A, UM, A BUSINESS PROFESSIONAL, THEY HAVE TO ACTUALLY OPERATE THEIR BUSINESS WITHIN THAT TIF, WHICH MAKES SENSE, RIGHT? UM, SO I MEAN, WHEN EACH OF OUR TIFS IS DIFFERENT, SO THE, THE MEDICAL DISTRICT, IT COULD BE SOMEBODY WHO'S BEEN INVOLVED WITH HOSPITAL OR CLINIC, UM, OPERATION MANAGEMENT, BUILDING PLANNING.
UM, THERE'S A WIDE VARIETY OF PEOPLE, YOU KNOW, AND THAT WOULD BE PART OF WHAT IT WOULD BE OUR CHARTER TO KIND OF THINK THROUGH AND SAY, WHAT WOULD BE, WHAT WOULD WE LOOK AT? WOULD WE HAVE CATEGORIES THAT MIGHT BE DIFFERENT FOR EACH TIFF TO BETTER SUIT THEM? UM, BUT AGAIN, THE FIRST QUESTION IS, DO WE WANT TO CHANGE ANYTHING? SO THAT'S NUMBER ONE.
IN LOOKING AT IT, I THOUGHT WE COULD BENEFIT BY CONSIDERING CHANGING.
SO IF WE DON'T WANT TO, THAT'LL, IT'LL BE A SHORT CONVERSATION.
I'M OKAY WITH MAKING SOME CHANGES, ESPECIALLY REGARDING THE REQUIREMENTS FOR, UM, TIF MEMBERS.
THEY, I THINK THEY SHOULD AT LEAST
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BE HELD TO THE SAME REQUIREMENTS THAT OUR BOARDS AND COMMISSIONS NOMINEES ARE HELD TO.AND ARE THEY NOT ALREADY? I IT, THEY ARE.
I, I WORRY NUMBER ONE, WE DON'T HAVE A OVERWHELMING NUMBER OF APPLICANTS KNOCKING DOWN THE DOOR TO GET ON BOARD.
SO IF YOU MAKE THE REQUIREMENTS ANY MORE STRICT, I DON'T THINK THAT'S GOING TO NECESSARILY LEAD TO BETTER APPLICANTS.
UH, I DEFINITELY DON'T WANT COUNCIL MEMBERS ON THERE BECAUSE INSTEAD YOU'RE GONNA CHANGE IT FROM A STAFF DRIVEN THING NOW AS IT IS CURRENTLY, WHICH IT MAY OR MAY NOT BE, I DON'T KNOW.
BUT IT WILL BE A COUNCIL DRIVEN THING WITH THOSE COUNCIL MEMBERS PRIORITIES DRIVING THE DISCUSSION BECAUSE THEY'RE THE ONES THAT ARE OBVIOUSLY MORE FAMILIAR WITH IT.
AND AS WE ALREADY SAW FROM OUR DISCUSSION FROM THE TIF BOARDS, ALREADY, COUNCIL MEMBERS HAVE THE OPPORTUNITY TO SAY NO TO ANY TIF RECOMMENDATION AS IT IS.
THEY DON'T HAVE TO ACCEPT THE RECOMMENDATION.
THEY CAN SEND IT BACK AND HAVE THEM START THE PROCESS OVER AGAIN.
SO THAT'S A WAY FOR COUNCIL TO SIGNAL TO THE TIF BOARD THAT WE DON'T LIKE WHAT YOU'RE DOING ALREADY.
UM, I TRUST IN MY FELLOW COUNCIL MEMBERS TO APPOINT GOOD PEOPLE TO THE TIFF BOARDS.
IT'S UP TO THEM TO SCREEN THEIR APPLICANTS.
AND IF THEY'RE NOT DOING A GOOD JOB, I'M, I CAN ONLY CONTROL THE ONES I APPOINT.
UM, AND I ALWAYS TRY TO APPOINT PEOPLE FROM MY DISTRICT INTO A, YOU KNOW, ANYTHING.
I DON'T KNOW WHAT PROFESSION I WOULD WANT TO HAVE AS A REQUIREMENT FOR ALL OF THE TIFS.
AND, AND IF THAT WOULD CHANGE AND I DON'T, I FEEL LIKE THAT WOULD GET VERY COMPLICATED AS YEAH.
WELL, THE OTHER THING JUST POINTING OUT, A LOT OF THESE, UM, HAVE A MIX OF, OF, UM, BOARD MEMBERS AND DIRECTORS APPOINTED SOME BY THE CITY COUNCIL AND SOME BY THE GOVERNING BODY OF THE COUNTY OR BY OTHER TAXING ENTITIES.
SO THEY HAVE PEOPLE, THEY HAVE PEOPLE COMING IN THROUGH, IN FACT, IT LOOKS LIKE ALMOST THE MAJORITY OF THEM, UM, HAVE BOARD MEMBERS APPOINTED BY OTHER, UH, TAXING ENTITIES.
NOW, I HAVE VERY MIXED FEELINGS ABOUT THAT PERSONALLY.
BUT, UM, AS WE SAW IN THE PRESENTATION THAT, UM, THAT JUST ONE SECOND ASSISTANT CITY MANAGER, YOU MENTIONED THAT THE OTHER ENTITIES, THEY'RE BASED UPON THEIR REVENUE THAT THEY PROVIDE TO THE TIF.
I KNOW THAT GISD, FOR EXAMPLE, HAS A HIGHER TAX RATE THAN WE DO.
SO WOULD THEY, ON A TIF, WELL, FIRST OF ALL, DOES ANY OTHER THIRD PARTY ENTITIES PARTICIPATE IN ANY TIFS WITH US? YES.
THE COUNTY PARTICIPATES IN TIF ONE AND TIF TWO, AND WE'RE APPROACHING THEM FOR TIF THREE, BUT THEY, THEY DON'T PARTICIPATE THERE.
AND DALLAS COLLEGE IS, WELL, PARTICIPATES IN T ONE.
SO TIF ONE, THE COUNTY DOES, AND THEIR TAX RATE IS ROUGHLY SIMILAR TO OURS.
I MEAN, IT'S NOT LIKE THE SCHOOL BOARD, WHICH IS ABOUT 50% OF THE PROPERTY TAX, WHERE THEY WOULD GET MORE NOMINEES.
BUT HOW DO THE OTHER ENTITIES THEN, YOU KNOW, IS IT PROPORTIONAL TO THEIR REVENUE? THEY PROVIDE, YEAH, YOU LEASE GET ONE.
MOST OF THE TIME IT'S ONE MEMBER.
AND FOR, FOR INSTANCE, THE COUNTY HAS A COUNTYWIDE POLICY THAT THEY WILL NOT PARTICIPATE MORE THAN 55% OF THAT INCREMENT, AND THEY JUST APPOINT ONE MEMBER TO THE BOARD BECAUSE THAT, IF YOU LOOK AT THEIR TAX RATE, IT'S EXTREMELY LOW AND THEY, THAT THAT THRESHOLD ISN'T MET.
THE, THE WHOLE REVENUE SHARING PIECE IS IF YOU ARE LOOKING, IF, IF THERE WAS A SITUATION WHERE YOU WERE GOING TO A SCHOOL DISTRICT.
AND SCHOOL DISTRICTS ARE EXTREMELY DIFFICULT TO GET A TEST BECAUSE OF THEIR WAY THEY'RE FUNDED.
AND WE'VE KIND OF TALKED ABOUT THAT WITH COUNCIL SOME AS WELL.
SO THAT WOULD, THAT WOULD BE THE ONLY TIME I WOULD SEE A HIGHER BOARD COMPENSATION, COMPENSATION.
BUT, UH, MOST OF THE TIME THE COUNTY'S GOT ONE.
DALLAS COLLEGE HAS ONE MEMBER AS WELL ON TIF ONE, AND THEN TIF TWO, THE COUNTY HAS ONE MEMBER.
SO WE HAVE NEVER ON OUR TIFS INVOLVED, IT'S, IT'S ALWAYS BEEN JUST US OR DO WE HAVE THOSE REPRESENTATIVES? WE DO HAVE THOSE REPRESENTATIVES.
ARE THEY POINT IF THEY'RE PARTICIPATING? YES.
AND SO ARE THEY PARTICIPATING? WELL, TIF TWO IS KIND OF RUN ITS COURSE AND, AND SO IT, IT'S A TIF THAT'S JUST HAD ONE PROJECT.
SO NO, THEY'RE NOT PARTICIPATING.
IT RARELY MEETS ABOUT THAT ONE.
TIF ONE, YES, THEY ARE COMING AND PARTICIPATING, BUT THEY HAVE NOT, THEY DO HAVE NO INTENTION TO MOVE FORWARD WITH, UH, THE EXTENSION THAT WE JUST PASSED.
BUT YES, THEY, THEY SHOW UP TO EVERY MEETING AND OKAY.
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OKAY.UM, SO MR. WATSON, WE HAD DISCUSSED THIS BRIEFLY AND I'M JUST GONNA CALL, CALL ON YOU FOR YOUR THOUGHTS ON THIS.
UM, DO YOU SEE AN ADVANTAGE OR, UM, AN ADVANTAGE TO US BROADENING OR SHIFTING OUR REQUIREMENTS OR COMPOSITION OF THE BOARD TO INCLUDE SOME SPECIFICS? LIKE ANIMAL ADVISOR? I KEEP GOING BACK TO THAT BECAUSE THEY HAVE, THEY HAVE REGULAR PEOPLE AND THEN THEY HAVE SOME SPECIFIC CATEGORIES OF PEOPLE.
WOULD THAT BE OF BENEFIT? 'CAUSE YOU WORK CLOSELY WITH ALL OF THEM? SURE.
UM, TO YOUR POINT OF THE MEDICAL DISTRICT IS VERY DIFFERENT THAN THE DOWNTOWN DISTRICT.
VERY DIFFERENT THAN THE TIF TWO DISTRICT.
SO I'VE BEEN STRUGGLING ON MY MIND WITH HOW YOU WOULD SET THE RIGHT PERSON FOR ALL TIFFS.
IT REALLY DEPENDS ON WHERE THE TIF ONE, WHERE THE TIFF IS AND IT'S LIFE.
TWO, WHAT IS THE TIFF'S MAJOR INTENT SUCH AS MEDICAL DISTRICT.
YEAH, IT WOULD BE GREAT TO GET SOME PEOPLE WITH HE HEALTHCARE EXPERIENCE ON, ON THAT TIFF.
BUT TO ME, I'M, I, I LIKE THE FLEXIBILITY AND OF HAVING IT OPEN TO JUST THE TYPICAL BOARDS AND COMMISSIONS MM-HMM.
BUT I, I THINK IT WOULD BE GOOD IF SOMEHOW WE COULD, UH, WITH LIKE THE MEDICAL DISTRICT, WHEN YOU'RE GOING TO PICK THOSE INDIVIDUALS, PICKING PEOPLE THAT HAVE THAT SORT OF BACKGROUND THAT MAY HAVE SOME EXPERIENCE, YOU KNOW, MAYBE WORKING AT A PARKLAND OR WORKING AT A HOSPITAL TO HELP WITH THE INSIGHTS OF, UH, THAT ASPECT OF IT, OF AN OPERATIONS OF BRINGING IN A HOSPITAL, WHICH IS THE INTENT OF THAT BOARD.
AND THEN TIF ONE REALLY, THE, THE COMPOSITION'S PRETTY GREAT IN THAT IT HAS A LOT OF BUSINESS OWNERS.
IT HAS, UM, OF OTHER INDIVIDUALS THAT OWN PROPERTY DOWNTOWN AND IT'S EXTREMELY TIED INTO THE, UH, THE DOWNTOWN DEVELOPMENT OFFICE.
SO I THINK THAT ONE IS WORKING FAIRLY WELL.
WE'RE GETTING INPUT FROM THEM AND GETTING IT ENGAGED.
BUT THE LAST THING WE WANT IS FOR THERE TO BE A PERCEPTION THAT STAFF'S JUST, YOU KNOW, ASKING THEM TO RUBBER STAMP ITEMS. YOU KNOW, FOR THE MOST PART THERE IS A LOT OF CHAPTER THREE 11, THERE'S A LOT OF REQUIREMENTS THAT GO INTO THAT I'D HATE TO THROW ON A BOARD.
SO WHAT WE'RE REALLY TRYING TO DO IS HELP ADMINISTER ALL OF THOSE PIECES TO GET A PLAN TO ULTIMATELY BEAUTIFY THE CITY AND BRING IN DEVELOPMENT.
AND THERE, AND THERE'S NO, NO THOUGHT THAT STAFF HAS BEEN SEEKING THAT.
IT'S JUST A LOT, SOME OF THE, SOME OF THE TIF BOARD MEMBERS DON'T FEEL, UH, APPARENTLY DON'T FEEL UP TO SPEED ON MAKING THOSE KIND OF DECISIONS.
SO THEY'RE JUST SAYING, WELL, WE JUST, SO, AND THAT THAT'S NOT, SO I WONDER IF THEY'RE, RATHER THAN TRYING TO FORMALIZE THIS, IF MAYBE WE AS A COUNCIL JUST NEED TO BE MADE MORE AWARE OF WHAT YOU JUST SAID, THAT THE TIFS ARE DIFFERENT AND THAT EXPERTISE IN THOSE AREAS CAN BE REALLY IMPORTANT VERSUS JUST SOMEBODY WHO'S ENGAGED.
UH, MAYBE THAT'S JUST SOMETHING, AN EDUCATIONAL PIECE THAT WE NEED TO BECOME MORE AWARE OF WITHOUT FORMALIZING IT INTO, UM, DIFFERENT CATEGORIES.
'CAUSE I AGREE IT WOULD BE VERY DIFFICULT TO MAKE A TEMPLATE THAT WOULD FIT THESE VERY UNIQUE AND DIFFERENT TIFFS.
ANY MORE QUESTIONS, COMMENTS? NO.
I THINK HOW WE'RE THE, OUR CURRENT REGULATIONS ARE FINE BY ME.
SO, UH, ARE WE GOOD WITH LEAVING IT AS IT IS AND POSSIBLY LOOKING AT, AT SEEING, IF COUNSEL CAN BE MADE AWARE THAT IT WOULD BE HELPFUL TO HAVE MORE EXPERTISE, UH, WHO SPECIFIC TO THE AREAS, WHO WOULD, WHO WOULD DO THAT? WE CAN ASK FOR A BRIEFING.
SO WE, WE WILL, UH, RECOMMEND NO, NO CHANGES ON THE COMPOSITION.
ITEM THREE B, ANNUAL REVIEW OF CITY PROPERTY TAX EXEMPTIONS.
I SHOULD HAVE QUEUED UP MY PHONE.
I DON'T KNOW IF COREY'S AWARE THAT HE'S FAMOUS FOR IN A SLIDE DECK PULLING A BOW BACK.
DO YOU KNOW ABOUT THAT? I, I, I HEARD, I HEARD.
I DIDN'T KNOW I WAS GONNA BE OUT THERE LIKE
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THAT.UH, AGAIN, THANK Y'ALL FOR, UH, THE INVITE IF YOU WILL, ON TODAY.
I'M HERE TO TALK A LITTLE BIT ABOUT OVER 65 EXEMPTIONS AND HOW THEY AFFECT THE CITY OF GARLAND.
UH, GIVE YOU A LITTLE BACKGROUND.
THIS IS A PRESENTATION THAT I'VE, I'VE PROVIDED FOR THIS COUNCIL IN THE PAST.
IT HAS BEEN UPDATED TO REFLECT NUMBERS, UH, UH, FROM THE 23 TAX YEAR.
AND, UH, I'LL JUMP RIGHT INTO IT.
AT ANY POINT YOU HAVE ANY QUESTIONS, JUST STOP AND LET ME KNOW.
MR. WATSON HAS BEEN SO GRACIOUS TO JOIN ME HERE SINCE OUR, OUR SUBJECT IS ADJOINED AS, AS WHAT IT IS.
HE WILL BE APPROACHING IT FROM THE FINANCE, UH, PERSPECTIVE.
YOU KNOW, WHEN WE TALK ABOUT OVER 65, UH, PROPERTY OWNERS, UH, THERE IS A, IN TAXATION THAT IS, THERE IS, UH, THERE ARE PROVISIONS IN TAX CODE THAT, THAT ALLOWS FOR SOME TAX RELIEF.
UH, THEY ALLOW FOR DIFFERENT PAYMENT OPTIONS TO, TO GIVE THEM MORE PAYMENT OPTIONS AND ALSO, UH, IF NEEDED, UH, PROTECTIONS AGAINST FORECLOSURE SHOULD THEY BECOME IN SOME DEGREE OF HARDSHIP.
SO IN THIS PRESENTATION, YOU'LL HEAR ME USE THE TERM OVER 65 OR 65 OR 65.
PLEASE KEEP IN MIND THAT HERE IN CITY OF GARLAND, WHEN WE GIVE BENEFITS TO OVER 65, TRADITIONALLY WE'VE GIVE THOSE SAME BENEFITS TO DISABLED PROPERTY OWNERS WHO SHARE THE SAME, UH, BENEFITS OF, OF THESE TAX FUNCTIONS, UH, PER TAX CODE.
UH, IN THIS PRESENTATION, WE'LL TALK A LITTLE BIT ABOUT THE HOMESTEAD EXEMPTION, UH, HOW IT PLAYS A PART IN OVER 65 PAYMENT OPTIONS.
UH, WE'RE GONNA DO SOME, UH, DATA COMPARISONS, AND THEN WE'RE GONNA LOOK AT REAL SHORTLY ABOUT AMENDING THE EXEMPTION IN ITSELF.
UH, IN ORDER TO QUALIFY FOR A HOMESTEAD EXEMPTION, PRO PROPERTY OWNER, UM, MUST BE A SEPARATE SECURED STRUCTURE, NOT EXCEEDING 20 ACRES.
UM, SO YOU COULD HAVE A HUNDRED ACRE PROPERTY, BUT THEY'RE GONNA COORDINATE DOWN TO A SMALL PORTION, WHICH IS GONNA GET THE BENEFIT OF THAT EXEMPTION.
UH, OWNING A WHOLE APART BY THE APPLICANT, MEANING THAT SOME SITUATIONS THERE MAY BE MULTIPLE OWNERS, MAY BE A COUPLE SIBLINGS ON A PROPERTY.
AND THAT SITUATION, IT'S A 50 50 OWNERSHIP.
THE EXEMPTION WOULD BE SPLIT AT THAT POINT.
UM, DESIGN OR ADAPTED FOR HUMAN RESIDENCE.
IT MUST BE SOMEWHERE WHERE YOU CAN SLEEP AND LIVE.
UH, OCCUPY BY OWNER IS THE PRIMARY RESIDENCE.
AGAIN, THIS IS WHERE YOU LAY YOUR HEAD.
UH, AND THAT SAME, UM, NOTION APPLIES TO THE HOMESTEAD EXEMPTION IN ITSELF.
SO WHEN YOU TALK ABOUT THE EXEMPTION AND SAY IF YOU'RE A NEW ENTITY, THERE ARE CERTAIN REQUIREMENTS IN THE CODE AS FAR AS WHAT, WHAT YOU CAN APPROVE AS A GOVERNING BODY, UH, OR LIMITATIONS THEREOF.
UH, WHEN WE TALK ABOUT A HOMESTEAD EXEMPTION, OF COURSE, THAT THAT IS YOUR PRIMARY EXEMPTION AS A PROPERTY OWNER IN THE, IN THE RESIDENCE WHERE YOU, WHERE YOU RESIDE, UH, THE OVER 65, UH, IS REALLY MORE OF A SUPPLEMENT TO THAT HOMESTEAD.
IT, IT ACTS MORE LIKE A SUPPLEMENT TO THE HOMESTEAD EXEMPTION.
SO, UH, WHEN THEY'RE APPROVING EXEMPTIONS, ONE OF THE THINGS TO LOOK AT IS APPROVED BY, UH, THE GENERAL HOMESTEAD HAS TO BE A MINIMUM OF $5,000.
WHEN YOU LOOK AT THE OVER 65, IT HAS TO BE A MINIMUM OF $3,000.
TYPICALLY, HERE IN GARLAND, WE HAVE A 10% HOMESTEAD, WHICH IS A PERCENTAGE AMOUNT OFF OF YOUR ACTUAL MARKET VALUE.
AND WHEN WE ADMINISTERED OUR OVER 65 EXEMPTION, WE USE A FLAT DOLLAR AMOUNT.
UH, CURRENTLY THAT DOLLAR AMOUNT IS $56,000 IN VALUE.
LET'S TALK A LITTLE BIT ABOUT PAYMENT OPTIONS.
THIS PLAN IS CALLED COMMONLY CALLED THE QUARTER PAY PLAN.
TECHNICAL TECHNICAL TERM IS INSTALLMENT PLAN, BUT IF YOU ASK OUR CITIZENS, THEY KNOW IT AS THE QUARTER PAY PLAN.
OKAY? UH, IT, IT BASICALLY BREAKS THE OVERALL TAX LEVY INTO FOUR PARTS, GIVEN THE PROPERTY OWNER ADDITIONAL TIME TO PAY WITHOUT PENALTY.
AND THIS IS, AGAIN, DESIGNED FOR YOUR OVER 65.
AND, AND ALSO DISABLED, UH, PROPERTY OWNERS.
THOSE WHO CHOOSE SIMPLY GIVE US A CALL OR, OR LET US KNOW, AND WE WILL SET THEIR ACCOUNT OR CODE THEIR ACCOUNT FOR THIS OPTION.
UH, THEIR FIRST QUARTER PAYMENT WOULD BE DUE BY JANUARY 2ND, ONE, UH, BY END OF MARCH, THEN THE END OF MAY, THEN THE END OF JULY.
UH, AGAIN, UH, A CONSIDERABLE AMOUNT OF TIME.
IT, IT, IT ALLOWS THE OVER SIX FIVE PROPERTY OWNER TIME TO BE ABLE TO BUDGET THAT THAT LEVY A LITTLE BIT BETTER.
UH, THIS NEXT SLIDE SHOWS A LITTLE HISTORY ON THE PARTICIPANTS OF THE QUARTER PAY PLAN.
AS YOU SEE IN 2020, WE HAD 757 PARTICIPANTS ON THAT PLAN.
NOW, IN 2023, UH, WE HAVE 855.
UH, YOU KNOW, IF YOU LOOK DOWN AT THE THIRD COLUMN THERE, JUST LOOKING AT OVER 65 ACCOUNTS, UH, THE NUMBER HAS BEEN PRETTY CONSISTENT OVER THE LAST FOUR YEARS.
AND THAT'S 'CAUSE THERE'S EBB AND FLOWS WITH OVER 65 PROPERTY OWNERS.
AS OWNERSHIP CHANGES, UH, THERE PROPERTIES
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COMING INTO THIS PRO TO THE PROCESS, PROPERTY'S GOING OUT OF THE PROCESS.UH, BUT ONE THING THAT WE CAN SAY IS A TRENDING IS THAT MORE PEOPLE ARE PARTICIPATING IN THE QUARTER PAY PLAN.
OVER 65 PROPERTY OWNERS, THIS IS A TAX DEFERRAL OPTION.
OKAY? UH, TAX DEFERRAL, IT IS A PART OF THE CODE THAT'S DESIGNED FOR TRUE HARDSHIPS.
NOW, ANY SO OVER 65 PROPERTY OWNER, IT IS A RIGHT IF THEY CHOOSE TO, TO IMPLEMENT IT, TO APPLY TO THEIR PROPERTY, THEY CAN.
BUT IT IS TRULY DESIGNED TO BE A PROTECTION, UH, FOR, FOR OWNER WHO'S GOING THROUGH A FINANCIAL HARDSHIP.
UM, KEEP IN MIND WHAT WHAT WHAT YOU'RE ESSENTIALLY DOING WITH A TAX DEFERRAL IS YOU ARE FREEZING ANY PENALTY GROWTH ON THE ACCOUNT, UM, AND FREEZING OR PREVENTING ANY COLLECTION FEES ON THE ACCOUNT.
THE INTEREST WILL CONTINUE TO ACCRUE, BUT AT A REDUCED RATE OF 5% ANNUALLY.
UM, WHICH IS A SIGNIFICANT SAVINGS TO PROPERTY OWNERS ONCE THAT DEFERRAL IS APPLIED TO THE ACCOUNT, AND THEY WOULD APPLY FOR THAT THROUGH THE APPRAISAL DISTRICT.
ONCE THEY APPLY, APPLY AND GET THAT ATTACHED TO THE ACCOUNT, IT STAYS WITH THE PROPERTY FOR AS LONG AS THEY OWN IT.
OKAY? UH, BASICALLY IT PROTECTS THE PROPERTY OWNER FROM ANY LITIGATION.
THERE'S NO ONE GONNA COME AFTER THEIR PROPERTY.
UM, THEY'RE STILL PAYABLE AND THE PROPERTY OWNER CAN PAY AT THEIR OWN PACE.
UM, AND PEOPLE GO, WHAT HAPPENS WITH THE TAXES? WELL, WHEN THE PROPERTY CHANGES HANDS, WHOEVER PURCHASED THAT PROPERTY WILL INHERIT THAT TAX DEBT.
SO, UM, WE DO, WE TALK TO PROPERTY OWNERS ON, ON A REGULAR BASIS REGARDING THIS OPTION.
WHEN THEY, WHEN THEY, UH, COMMUNICATE TO US THEY'RE HAVING THIS HARDSHIP, THEY ARE OVER 65 IN A DISABLED SITUATION.
WE ALSO GIVE 'EM A VERY IMPORTANT CAVEAT THAT IF YOUR PROPERTY IS UNDER A MORTGAGE, UH, YOU REALLY, UH, WE, WE, I CAN'T, I WON'T USE THE TERM DISCOURAGE 'EM, BUT WE REALLY CAUTION THEM IN PURSUING THIS OPTION BECAUSE MOST MORTGAGE COMPANIES WON'T HONOR A DEFERRAL.
AND ESSENTIALLY THEY WILL PAY THOSE TAXES AND THEN ROLL THAT INTO THEIR MONTHLY NOTE, WHICH COULD POTENTIALLY DOUBLE THEIR MONTHLY MORTGAGE AMOUNT.
SO, UM, TAX DEFERRALS HAD A LITTLE TIMELINE HERE, AND WE LOOKING FROM 20 20 21 TO 2023, UH, WE WENT FROM 161 DEFERRED ACCOUNTS TO NOW WE'RE AT 275.
UM, THOSE LOOK LIKE A SMALL NUMBER, BUT, UH, WE ARE GETTING MORE PART PEOPLE WHO WANNA PARTICIPATE IN A DEFERRAL PROGRAM.
UH, AGAIN, A BIG PUSH OF THAT IS, IS, IS WE ALL KNOW PROPERTY VALUES HAVE INCREASED, PROPERTY VALUES INCREASE ALONG, WILL TAX LEVIES INCREASE.
AND SO THERE ARE INDIVIDUALS WHO FIND THEMSELVES IN MORE DIFFICULT SITUATIONS TO MAKE THOSE PAYMENTS.
THIS NEXT SLIDE TALKS A LITTLE BIT ABOUT THE OVER 65 EXEMPTION AND THE OTHER TAXING ENTITIES IN THE DFW.
UH, IT SHOWS, TO PUT A LITTLE COLOR CODING HERE, IF YOU LOOK KIND OF TO THE CENTER, THERE'S ONE BAR THAT IS RED, UH, THAT IS THE CITY OF GARLAND AT $56,000.
UH, THE GREEN WILL BE REPRESENTING, UH, TAX OFFICES, WHICH NOT ONLY HAVE OVER 65 EXEMPTION, BUT THEY HAVE A CEILING ON THEIR, THEIR OVER 65 EXEMPTION.
I DIDN'T MENTION THIS IN EARLIER, BUT WHEN WE TALK ABOUT OVER 65 EXEMPTION, BUT NOT ONLY CAN YOU GIVE A DOLLAR AMOUNT OFF OF THAT EXEMPTION, YOU CAN ALSO IMPLEMENT A CEILING, WHICH ESSENTIALLY FREEZES FUTURE YEAR LEVY TO THAT INTRODUCTORY YEAR RATE.
IT PUTS A CAP, IF YOU WILL, ON IT.
A CEILING IS REQUIRED AT THE SCHOOL DISTRICT LEVEL.
IT IS OPTIONAL FOR YOUR COUNTIES AND YOUR CITY.
AT THIS POINT, THE CITY OF GARLAND DOES NOT OFFER A CEILING, BUT WE DO OFFER THE $56,000.
UM, ONE ENTITY THAT I DID NOT PUT ON THIS SLIDE WOULD BE UNIVERSITY PARK.
AND THE REASON I LEFT THEM OFF IS BECAUSE THERE ARE OVER 65 EXEMPTION IS OVER $500,000.
SO IT IS NOT IN SCOPE WITH WHAT'S GOING ON IN THE REST OF THE DISTRICT.
UM, TALK REAL BRIEFLY ABOUT, UH, A FACTOR THAT CHANGED THIS YEAR, AND THAT IS THE LEGISLATIVE CHANGE WHICH AFFECTED SCHOOL DISTRICT TAX CALCULATION PERTAINING TO OVER 65 PROPERTY OWNERS OR EVEN JUST GENERAL HOMESTEAD EXEMPTION.
UH, IT REQUIRES A MINIMUM NOW REQUIRES SCHOOL DISTRICT TO HAVE A MINIMUM HOMESTEAD EXEMPTION OF A HUNDRED THOUSAND DOLLARS.
UH, IT IS VERY POPULAR PROGRAM.
UH, MANY PROPERTY OWNERS ARE LOOKING FORWARD TO THAT AND THEY HAVE, UH, UH, APPRECIATED THAT.
UM, THE DALLAS COUNTY TOO HAS PASSED, UH, AS OF 2022 TAX YEAR, A HUNDRED THOUSAND DOLLARS OVER 65 EXEMPTION FOR PROPERTY OWNERS.
SO THE, OUR TWO NEIGHBORING TAX ENTITIES FOR CITY OF GARLAND IN THIS CITY OF GARLAND, UH, PROPERTY OWNERS ARE NOW, WHEN YOU TALK ABOUT OVER 65, HAVE BENEFIT OF AT LEAST A HUNDRED THOUSAND DOLLARS EXEMPTION FOR OVER 65 FOR THE COUNTY AND THE SCHOOL DISTRICT.
AND I'LL ADD THAT WHEN YOU, HE SAYS COUNTY,
[00:30:01]
THAT'S ALSO THE PARKLAND PEACE AND DALLAS COLLEGE.UH, AGAIN, SO JUST TO GIVE A LITTLE PERSPECTIVE HERE, THAT LEGISLATIVE CHANGE DID NOT AFFECT THE CITY AT THIS POINT.
UM, LET'S TALK ABOUT A LITTLE PROPERTY VALUE COMPARISON.
AS YOU SEE FROM THE CHART, UH, CITY OF GARLAND HAS ONE OF THE LARGEST PROPERTY VALUE ACCOUNTS WHEN YOU COMPARE THOSE NEIGHBORING, UM, CITIES, UH, IN THE LIST, UH, WE HAVE, AGAIN, THE MOST PARTICIPANTS, WHICH AGAIN, WE REFLECTIVE OF THE AMOUNT OF PROPERTIES THAT WE HAVE.
UM, AND WHEN IT COMES TO PERCENT OF PERCENTAGE OF RESIDENTIAL PROPERTY, AGAIN, 24% OF, OF, OF OUR RESIDENTIAL PROPERTY, THEY ARE OVER 65 PROPERTY OWNERS.
UM, THIS STUDY HERE IS A LITTLE BIT ON, UH, UH, COLA AND GIVES US A LITTLE HISTORY AND BACKGROUND ON SOME OF THE CHANGE THAT'S HAPPENED SINCE 2016 GOING THROUGH 2023 AND HOW IT APPLIES TO THE CURRENT YEAR.
UM, AS YOU SEE THE LAST COLUMN, IT TALKS ABOUT TAX LE REDUCED BY OVER 65 EXEMPTION, UH, WITH JUST A ROUGH CALCULATION.
BUT AS OF TODAY, WHEN YOU HAVE AN OVER 65 PRE EXEMPTION WITH TODAY'S TAX RATE, THAT'S ESSENTIALLY A $386 DISCOUNT ON YOUR PROPERTY TAXES.
AND IN OUR CURRENT TAXES, ROLL AT REPRESENTS A OVER $6 MILLION IN ACTUAL LEVY, UH, THAT WOULD BE REDUCED, UH, UH, FOR OVER 65 PROPERTY OWNERS.
LET'S TALK A LITTLE BIT ABOUT AMENDING THE EXEMPTION ITSELF.
UM, IT MUST BE OF COURSE, DONE BY THE GOVERNING BODY BY JULY 1ST.
SO IT'S GREAT THAT YOU ALL WANT TO TALK ABOUT IT NOW AND KIND OF GET THINGS GOING.
UH, UH, BUT IF YOU WANT TO PASS THIS, YOU MUST HAVE, UH, UH, THAT PASSED BY JULY 1ST IN ORDER TO GET IT ON THE 2024, UH, TAX ROLL.
UH, GOVERNOR BIDEN MUST ALSO CALL AN ELECTION PETITION AT LEAST 20% OF ELECTORAL WHEN PARTICIPATING IN THE PRECEDING ELECTION OF A TAXING UNIT.
CHANGES TO THE EXEMPTION AMOUNT MUST RESULT IN AN EXEMPTION AMOUNT OF AT LEAST $3,000 IN VALUE AND TAX CEILINGS, WHICH IS VERY IMPORTANT ONCE THEY ARE APPROVED, IF YOU CHOOSE TO APPROVE THEM, UH, IF THE BODY CHOOSES TO APPROVE THEM, THEY CANNOT BE REMOVED.
UM, SO, UH, THAT'S WHAT I HAVE TODAY.
DO WE HAVE ANY QUESTIONS REGARDING OVER 65 ACCOUNTS? THAT WAS A LOT OF INFORMATION
I CAN JUMP INTO THE FINANCIAL MM-HMM.
AND THEN, SO THIS FIRST SLIDE IS GOING TO, I'M GONNA DISCUSS THE HOMESTEAD EXEMPTION SPECIFICALLY, WHICH, UH, COREY WAS MAINLY TALKING ABOUT THE SENIOR EXEMPTION.
SO CURRENTLY THE CITY OF GARLAND OFFERS A 10% HOMESTEAD EXEMPTION.
MEANING IF YOU HAVE A HUNDRED THOU, UH, ASSESSED VALUE OF A HUNDRED THOUSAND DOLLARS, YOU'RE GONNA GET $10,000 OFF OF THAT.
WHEN WE GO TO, UH, LEVY TAX, UH, WHAT THIS CHART IS SHOWING, IF, IF, WHAT I WANTED TO TRY TO DO IN A SIMPLE WAY IS, UH, SHOW HOW INCREASING THE HOMESTEAD EXEMPTION IMPACTS BOTH HOMEOWNERS AND THE CITY OF GARLAND'S REVENUE.
AND, UH, COREY MENTIONED THAT WITH THE SENIOR EXEMPTION, WHERE YOU'RE FOREGOING ROUGHLY $6 MILLION OF REVENUE BECAUSE OF THE SENIOR EXEMPTION, WITH THE 10% HOMESTEAD, IT'S ROUGHLY $7.2 MILLION OF FOREGONE REVENUE FOR THE 10% EXEMPTION THAT WE CURRENTLY HAVE IN PLACE.
SO ADDING A 1% TO, UH, THE HOMESTEAD EXEMPTION, MEANING MOVING IT FROM 10 TO 11, IF YOU WERE A $400,000 HOME, YOU WOULD BE $28 SAVINGS ANNUALLY, A HUNDRED THOUSAND DOLLARS HOME, $7 ANNUALLY.
AND REALLY THAT JUST CONTINUES ACROSS THE BOARD.
YOU CAN SEE A 12%, THE SEVEN TURNS INTO 14, THEN IT TURNS INTO 21.
SO OBVIOUSLY THE, THE HIGHER YOU GO, THE THE, THE MORE SAVINGS ANNUALLY, UH, A RESIDENTS WILL HAVE.
THEN WHEN YOU LOOK DOWN ON THE IMPACT TO THE CITY'S, UH, CITY'S BUDGET, I'VE, I'VE BROKEN OUT BOTH THE LOST GENERAL FUND REVENUE AND THE LOST DEBT SERVICE REVENUE.
SO GENERAL FUND REVENUES ON OUR O AND M SIDE.
AND THEN THE DEBT SERVICE REVENUE
[00:35:01]
IS WHAT'S FUNDING THE CIP THAT Y'ALL ARE APPROVING TONIGHT.SO FOR EVERY 1% YOU CAN SEE THE GENERAL FUND WOULD LOSE ROUGHLY $384 MILLION OF ADDITIONAL FOREGONE REVENUE.
AND THE DEBT SERVICE REVENUE WOULD BE ABOUT 459,000 BECAUSE OUR TAX RATE ON THE DEBT SERVICE IS A LITTLE BIT HIGHER FOR A TOTAL OF ABOUT $843,000 PER 1%.
AS WE MOVE UP, JUST CLICK IT MOVING OVER TO THE SENIOR SIDE.
SO UNLIKE THE HOMESTEAD EXEMPTION, WHICH IS A PERCENTAGE, OUR, OUR SENIOR EXEMPTION IS A FLAT DOLLAR AMOUNT, AND THAT'S, THAT'S STATE LAW.
SO IT, IT'S DESIGNED THAT WAY TO PROVIDE MORE BENEFIT TO HOMES THAT HAVE A LOWER VALUE.
SO IF YOU HAVE A A HUNDRED THOUSAND DOLLARS HOME, OBVIOUSLY HAVING A $56,000 EXEMPTION, WHICH IS OUR CURRENT EXEMPTION, IS A HUGE BENEFIT COMPARED TO SOMEONE WITH A $500,000 HOME.
SO WHAT I'VE DONE HERE IS BREAKOUT.
IF WE INCREASE THAT $56,000, UH, EXEMPTION UP 1500 TO 57, 500, UH, ANOTHER 3000 TO 59,000, OR MOVING IT UP TO 5,000 TO MAKING IT AT A $61,000 EXEMPTION, YOU CAN SEE THE SAVINGS FOR A SENIOR.
SO THAT WOULD BE ROUGHLY $10 FOR THE 1500 INCREASE, 21 FOR 3034 FOR 5,000.
AND MUCH LIKE THE PREVIOUS SLIDE, I HAVE ALSO PLACED THE IMPACT OF THE CITY'S REVENUE.
SO FOR $1,500, THAT WOULD BE A TOTAL LOSS OR FOREGONE REVENUE OF ABOUT $186,000 UP TO THE 5,000, WHICH WOULD BE ABOUT $621,000 OR FOREGONE REVENUE.
AND ON THE DEBT SERVICE SIDE, THE EASIEST WAY TO PUT THIS IN PERSPECTIVE OF WHAT REVENUE LOOKS LIKE AS FAR AS WHEN IT COMES TO OUR CIP, FOR EVERY A HUNDRED THOUSAND DOLLARS, THAT IS ABOUT 1.5 MILLION IN WHAT WE CALL OUR CAPACITY.
SO WHEN YOU SAY YOU'RE $264 MILLION, UH, CIP OR 242 MILLION I THINK IT IS.
UH, EVERY A HUNDRED THOUSAND DOLLARS WE LOSE, WE LOSE ONE AND A HALF MILLION DOLLARS OF THAT CAPACITY.
SO ANOTHER WAY TO LOOK AT IT IS, WE'VE BEEN TALKING A LOT ABOUT THE 270 MILLION THAT IS AVAILABLE RIGHT NOW IN OUR CAPACITY THAT WOULD DROP THAT FOR EVERY A HUNDRED THOUSAND WOULD DROP THAT ONE AND A HALF MILLION.
WITH THAT, ANY QUESTIONS? AND WE WILL BE HAPPY TO ANSWER 'EM.
UM, DO WE KNOW THE IMPACTS OF THE STATE LEGISLATION ON OUR TAX REVENUE
IT'S BEEN, SO THE SB TWO HAS LOWERED OUR TAX RATE 8 CENTS NOW, WHICH IS ABOUT $15 MILLION.
UM, I DON'T HAVE ANY QUESTIONS.
LET ME JUST EDITORIALIZE FOR JUST A MOMENT BECAUSE THIS IS SOMETHING THAT WE WENT, WE WENT THROUGH THREE, FOUR YEARS AGO.
UM, SO WE HAD NOT INCREASED THE SENIOR EXEMPTION IN ALMOST 20 YEARS.
AND THIS WAS THEN I BELIEVE 2019.
AND AT THAT POINT, UM, SEVERAL OF US PROPOSED, UH, INCREASING IT BECAUSE, UM, IT DOESN'T FLOAT WITH THE INCREASE IN APPRAISALS.
YOU KNOW, WE HAVE A 10% HOMESTEAD EXEMPTION.
AS HOMES INCREASE IN VALUE, THE 10% TRAVELS WITH IT.
SENIORS HAD HAD NOTHING FOR 20 YEARS AND THEY HAD JUST FALLEN WAY, WAY BEHIND.
SO, UM, AT THAT POINT, I THINK IT WAS, WE HAD 51,000, UM, DOLLAR EXEMPTION, I BELIEVE THAT HAD BEEN THERE FOR 20 YEARS.
SO, UH, DIDN'T WORK THE FIRST YEAR.
UM, MAJORITY WENT AGAINST IT SECOND YEAR, TRIED AGAIN, AND WE GOT A $5,000 INCREASE IN THE SENIOR EXEMPTIONS.
UM, THE PROBLEM IS, IN THE LAST THREE YEARS SINCE WE LAST INCREASED THE EXEMPTION IN A, YOU KNOW, IT WAS ENOUGH TO MAKE A DIFFERENCE FOR SENIORS, UM, THEIR, UH, HOME VALUES HAVE INCREASED 27%.
THEIR EXEMPTION ISN'T KEEPING UP, AND IT WON'T EVER, BECAUSE WE CANNOT TURN IT INTO A PERCENTAGE.
UM, SO ONCE AGAIN, THE RAPID INCREASE IN HOME VALUES THESE LAST THREE YEARS HAS, UH, RESULTED IN SOME SENIORS, UH, WHO HAVE CALLED ME SAYING, WHY DID YOU RAISE OUR TAXES? I HAVEN'T HAD A CITY OF GARLAND TAX BILL IN YEARS, AND ALL OF A SUDDEN NOW I GOT ONE.
[00:40:01]
ARE THE VERY PEOPLE THAT THIS IS AIMED FOR.THESE ARE THE PEOPLE WITH THE VERY OLD AND VERY INEXPENSIVE HOUSES, BUT EVEN THOSE HOUSES HAVE GONE UP IN VALUE.
SO THESE ARE THE PEOPLE THAT SENIOR EXEMPTIONS ARE ACTUALLY, UM, LARGELY TARGETING IS OUR LOWEST INCOME, CHEAPEST HOUSES, PEOPLE WHO NEED THE MOST HELP.
SO 27% INCREASE IN THEIR VALUE IN THE LAST THREE YEARS.
UM, AND WITH A LOT OF THE, UM, THE INFORMATION WE SAW HERE, I GUESS THAT WE ARE, UH, WE ARE SAYING, CAN YOU PUT THAT BACK UP WITH THE AMOUNT THAT IT'LL SAVE? THIS IS BASED ON AN AVERAGE GARLAND HOME.
SO SINCE THIS IS JUST DOLLAR, THE, THE AVERAGE, DO THE AVERAGE HOME DOESN'T MATTER.
IT'S ANY HOME SINCE IT'S BASED OFF OF DOLLARS, IT'S NOT A PERCENTAGE.
ON THE HOMESTEAD, BECAUSE IT'S PERCENTAGE, I PUT SOME HOME VALUES TO SHOW YOU KIND OF HOW IT RIGHT.
BUT WITH THIS, IT MAKES NO DIFFERENCE WITH THIS, IT MAKES NO DIFFERENCE.
ANNUALLY, WHICH MEANS MORE TO PEOPLE IN THE VERY LOWEST INCOMES RIGHT.
THAN IT DOES TO PEOPLE IN LARGER HOUSES.
SO THAT IS, UM, THAT IS WHAT, AND, AND THE, THE INCREASE IN THE NUMBER OF PEOPLE WHO ARE DOING THE QUARTER PAY AND THE INCREASE IN THE NUMBER OF OUR SENIORS WHO ARE DOING THE DEFERRALS, THAT TELLS ME THAT WE'VE GOT OVER 60 FIVES WHO ARE FEELING THE DISTRESS ONE WAY OR THE OTHER.
AND THAT MAKES ME, UM, THAT MAKES ME TAKE A HARD LOOK AT THIS.
I AM NOT PERSONALLY INTERESTED IN INCREASING OUR, OUR REGULAR HOMESTEAD EXEMPTION, UM, AT THIS TIME.
THE SENIOR EXEMPTION, I'M, I'M NOT BEING QUICK TO SAY NOT TO CHANGE IT.
SO, AND THAT'S WHAT WE'RE HERE FOR.
SO I BELIEVE THAT I UNDERSTAND FROM, UM, THE CITY MANAGER THAT IF, IF WE WERE TO GO WITH THE FIVE, ANOTHER $5,000 INCREASE IN THE SENIOR EXEMPTION, WHICH WE DID IN 2020, THAT THAT WOULD BUMP DOWN OUR $270 MILLION DEBT CAPACITY BY ABOUT 5 MILLION.
IS THAT CORRECT? THAT'S CORRECT.
SO, UM, THERE'S A LOT OF LEEWAY BETWEEN 1,505, AND WE CAN PICK ANY OTHER NUMBER WE WANT.
IT'S PRETTY EASY MATH WISE TO FIGURE OUT WHERE THAT WOULD LAND US.
THIS IS A LOT OF INFORMATION YOU'RE GONNA HAVE TO GIVE US TIME TO.
I'VE BEEN, I'VE BEEN TOYING WITH THIS FOR SOME WEEKS AND, AND IN MY MIND AND LATE AT NIGHT, BUT IT IS STILL NOT A SUPER CLEAR CUT DECISION.
WE DON'T WANT TO HARM OURSELVES, UM, GOING FORWARD.
BUT ALSO I'M LOOKING AT LOST REVENUE, UM, 186,000.
I MEAN, WE'VE SPENT THAT MUCH ON A LOT OF THINGS AND I AM CONCERNED ABOUT SENIORS
SO WE HAVE SPENT THAT ON A LOT OF THINGS.
AND YOU KNOW, AND, AND FRANKLY, UH, I MEAN LIKE TONIGHT WE HAVE A, UM, WE HAVE A, AN AFFORDABLE SENIOR, UM, DEVELOPMENT THAT, THAT WE'RE GONNA BE CONSIDERING.
AND PART OF THE REASON I THINK WHY OUR SENIORS ARE STAYING MOSTLY LEVEL IS THAT THEY ARE GRADUALLY SHIFTING OUT OF THEIR HOMES AND SELLING THEM.
AND WE'RE HAVING, AND I'M HAPPY TO SEE THAT WE'RE STAYING LEVEL AND THAT THE WHOLE CITY IS NOT
SO, UM, COMMITTEE, OTHER THOUGHTS? WHAT'S, WHAT'S YOUR RECOMMENDATION ON THE INCREASE? YEAH, I, I WAS, I WAS KIND OF PROBING TO SEE WHERE YOU ALL WERE AT.
UM, I, I CAME IN HONESTLY THINKING $2,000, UM, WHICH HAS NO BASIS IN ANY, UH, DATA POINT OR CALCULATION.
IT'S JUST, IT'S ENOUGH TO MAKE A DIFFERENCE THAT WILL GO ON YEAR AFTER YEAR, UM, ESPECIALLY FOR THE PEOPLE, UM, WHO NEED IT THE MOST.
BUT, UM, MY ORIGINAL THOUGHT BEFORE I SAW THE NUMBERS HAD BEEN TO, TO BUMP IT UP TO AN EVEN 60,000, WHICH WOULD BE A $4,000 INCREASE.
AND HONESTLY, WE COULD DO THAT.
I, I DON'T THINK THESE NUMBERS WILL, UM, GIVEN OUR PRETTY HEALTHY DEBT CAPACITY RIGHT NOW, I WOULD NOT FEEL BAD DOING THAT.
SO I'M THINKING BETWEEN TWO AND FOUR,
[00:45:01]
HONESTLY, I WAS THINKING MIDDLE OF THE ROAD AS WELL, IF THAT WERE SOMETHING THAT WE WERE GOING TO, UH, MOVE FORWARD WITH.LOOKING AT NUMBERS HERE, JUST DIFFERENT PERCENTAGES.
UM, WHAT WOULD BE, AND $2,800 EQUATES TO ABOUT $19 A YEAR SOMEWHERE THERE.
BUT I'M, I'M, I DON'T HAVE A RECOMMENDATION YET.
I NEED TO THINK ABOUT MORE WHAT THE
AND WE DO NOT HAVE TO DECIDE THIS NOW AND I DIDN'T EXPECT US TO HONESTLY, BECAUSE IT'S TAKEN ME, LIKE I SAID, I'VE BEEN SPENDING WEEKS GOING IN CIRCLES ON THIS AND, AND SO, UM, IF YOU ALL WOULD LIKE TO SPEND THE NEXT MONTH MUSING AND TALKING TO CONSTITUENTS AND, UM, COME BACK AND, AND LET'S, WE CAN AIM TO TRY TO COME UP WITH A RECOMMENDATION NEXT MONTH.
WE'RE NOT UNDER THE GUN AT THIS POINT AS FAR AS THE DEADLINE, BUT I ALSO DON'T WANT THIS, WE'VE COME CLOSE TO MISSING THE OPPORTUNITY SEVERAL YEARS PASSED BY NOT GETTING IT DONE.
SO I DON'T WANNA DO THAT ON THIS.
IS THAT AGREEABLE? YEAH, THAT'S BRING IT BACK NEXT MONTH.
LAST TIME WE LOOKED AT THIS WAS JUNE OF 2020, WHICH WAS BEFORE THE JULY DEADLINE.
SO WE STILL HAVE PLENTY OF TIME NOW.
WELL CAN YOU ALL REVISIT US NEXT MONTH AND WE MAY HAVE MORE CLARIFIED THOUGHTS.
PLEASE LET US KNOW IF Y'ALL NEED ADDITIONAL INFORMATION.
ALRIGHT, SO WE ARE NOW AT ITEM THREE C, WHICH IS ADMINISTRATION OF A PUBLIC ART PROGRAM.
AND I BELIEVE COUNCILWOMAN LUCK WAS THE ONE WHO PUT THIS FORWARD.
SO DO WE HAVE STAFF HERE TO TALK ABOUT PUBLIC ART? UH, COMMITTEE? WE DO HAVE STAFF THAT'S, UH, PREPARED, UH, A PRESENTATION THAT'S IS AN OVERVIEW OF WHAT WE, UH, DO TO HANDLE OUR PUBLIC ART PROGRAM NOW.
AND EXAMPLES OF OTHER CITIES ART PROGRAMS. UH, WE WANTED TO TAKE YOUR DIRECTION IF WE WANTED TO PRESENT THAT OR IF THE COMMITTEE NEEDED TO TO DISCUSS PRIOR TO THAT.
WOULD YOU, LIKE, SINCE THIS IS YOUR REFERRAL? SO, UM, BASICALLY I, I WOULD LIKE TO EXPLORE A STREAMLINED FUND FOR PUBLIC ART WHERE, UM, IF IT'S A PURELY PUBLIC ART ENDEAVOR, THERE'S A FUND THAT CAN BE USED TO MAKE ART HAPPEN AROUND THE CITY WHERE THERE AREN'T TIFFS AVAILABLE FOR FUNDING OR, UM, MAYBE THERE'S NOT ENOUGH FUNDING IN THE CULTURAL ARTS, YOU KNOW, COMMISSIONS BAG TO PAY FOR SOMETHING.
UM, AND THEN ALSO EXPLORE ANY LARGE DEVELOPMENTS.
UM, MAYBE HAVING A, A 1% ATTACHED TO A BIG DEVELOPMENT WHERE THEY SPEND 1% OF THAT PROJECT ON PUBLIC ART FOR, YOU KNOW, TO MAKE THINGS LOOK BETTER.
AND I'M NOT JUST TALKING ABOUT MURALS,
UM, AND REALLY THE WHOLE POINT IS TO HAVE ART SPREAD OUT THROUGH THE CITY.
RIGHT NOW WE HAVE A HEAVY CONCENTRATION IN DOWNTOWN AND I'D REALLY LIKE TO SEE THAT EVERYWHERE ELSE.
AND I JUST WANNA MAKE SURE THAT THERE'S A FUNDING SOURCE FOR THAT, UM, TO HAPPEN AROUND THE CITY WHERE THERE MIGHT NOT BE MONEY AVAILABLE NOW.
SO THIS IS MORE ABOUT FINDING FUNDING THAN ABOUT ACTUALLY ADMINISTRATIVE.
THIS HAS NOTHING, UM, IN, IN MY MIND THIS HAS NOTHING TO DO.
IT'S MORE ABOUT SOMEONE WANTS TO PUT UP A MURAL OR A SCULPTURE, LIKE LET'S SAY THE LIBRARY NORTH GARLAND LIBRARY, THEY PAID FOR THE MURAL THAT WENT ON THE BACK OF THEIR FACILITY.
THEIR, THEIR FUNDS NEED TO GO TO COMMUNITY OUTREACH AND BOOKS AND THINGS.
NOT, NOT THAT IN PARTICULAR, THAT COULD HAVE COME OUT OF A PUBLIC ART FUND AND THEY WOULD'VE HAD THAT MONEY TO DO WITH LIBRARY THINGS.
THEY DIDN'T PAY FOR THE LABOR
[00:50:01]
SO IT, IT'S THINGS LIKE THAT WHERE WE JUST HAVE A SOURCE FOR PEOPLE TO UTILIZE FUNDS IN ORDER TO MAKE ART HAPPEN AROUND THE CITY.AND MAYBE IF THERE IS A LARGE DEVELOPMENT, THEY'RE KIND OF REQUIRED TO DO SOME KIND OF PUBLIC ART THING WITH 1% OF THEIR BUDGET.
AND THAT'S ACTUALLY KIND OF TYPICAL IN MANY CITIES.
UM, AND THEY'LL TALK ABOUT IT, I'M SURE IN THE PRESENTATION ABOUT HOW THOSE THINGS ARE FUNDED IN OTHER CITIES.
BUT, UM, IT IS, IT IS A, A THING THAT HAPPENS WHERE, YOU KNOW, WE BUILD A FIREHOUSE AND INSTEAD OF REGULAR GLASS, WE PUT IN STAINED GLASS 'CAUSE IT'S PRETTY, AND IT'S ARTISTIC.
SO IT'S THINGS LIKE THAT THAT I WOULD LIKE TO SEE FUNDED.
AND WELL DONE ON ALL THE STUFF YOU'RE DOING BY THE WAY.
IT'S A GREAT TIME TO BE IN GARLAND AND LOTS OF GREAT TEAMS. UM, SO MR. PHIL, JUST TO MAKE SURE SHE ON THE, IS IT ON THE DESKTOP? OH, THERE IT IS.
SO, AMY ROSENTHAL, CULTURAL ARTS DIRECTOR.
UM, THIS IS JUST KIND OF AN OVERVIEW OF A LITTLE BACKGROUND AND, UH, JUST A LITTLE, UH, SNAPSHOT ABOUT WHAT OTHER CITIES ARE DOING AS WELL TOO.
SO, UH, JUST KIND OF AS A REMINDER, WE HAVE A, A COMPREHENSIVE CULTURAL ARTS PLAN THAT WAS PUT TOGETHER IN 2020.
IT WAS DEVELOPED BY CIVIC ARTS.
UM, AND IT'S A REALLY, A VERY INCREDIBLE ROBUST PLAN THAT INVOLVED LOTS OF FEEDBACK FROM ALL KINDS OF STAKEHOLDERS.
UM, WITH THE PLAN, THE, THE PLAN HELPED ESTABLISH A VISION FOR THE CITY FOR, IN REGARDS TO ARTS, UM, HELPED EXPAND UNDERSTANDING, UH, AND PROVIDED SOME RECOMMENDATIONS AND RESOURCES.
AND, UM, AGAIN, THE PLAN REALLY EMPHASIZES THAT ARTS, OPPORTUNITIES, ARTS AND CULTURE, THERE ARE GREAT OPPORTUNITIES FOR ARTS AND CULTURE IN GARLAND.
SO, UH, AGAIN, JUST AS A LITTLE REMINDER OF SOME OF THE, THE, THE COOL THINGS THAT HAVE HAPPENED IN THE PAST, LOTS OF GREAT PUBLIC PRIVATE PARTNERSHIPS.
UM, THE VISION FOR THE ARTS IS A PUBLIC ART, UH, FUNDED PROJECT FOR THE CITY OF GARLAND.
AND THAT UTILIZED A COMBINATION OF CULTURAL ARTS COMMISSION DOLLARS.
UM, I BELIEVE THERE WAS SOME ECONOMIC DEVELOPMENT DOLLARS.
THERE WAS SOME CITY MATCHING AND A LITTLE BIT OF PRIVATE FUNDRAISING AS WELL TOO.
SO PULLING, PULLING DOLLARS FROM A VARIETY OF SOURCES.
UM, AND AGAIN, NEIGHBORHOOD VITALITY AND THE INCREDIBLE PROJECTS THAT THEY DO ALL OVER THE CITY.
UM, WITH THE CULTURAL ARTS PLAN, THERE WERE PRIORITIES ESTABLISHED, AND THE NUMBER ONE PRIORITY FROM THE CULTURAL ARTS PLAN WAS TO, UM, DEVELOP A PUBLIC ART POLICY FOR GARLAND.
AND THEN THE NUMBER TWO TOP PRIORITY WAS A PERCENT FOR THE ART PROGRAM.
SO, UH, JUST THE, THE PUBLIC ART APPROACH IT, THE, THIS IS AGAIN FROM THE PLAN, UM, IT OUTLINED SOME STRATEGIES.
AND WHEN I GOT HERE IN THE SUMMER OF 2022, UM, CITY MANAGEMENT SAID, AMY, LET'S LOOK AT A, SOME TYPE OF POLICY FOR PUBLIC ART.
SO WE ROLLED UP OUR SLEEVES AGAIN, IT'S A, IT WAS A PRIORITY IDENTIFIED IN THE PLAN.
UM, THE THING THAT, THE INCREDIBLE THING ABOUT GARLAND IS THAT THERE ARE MULTIPLE DEPARTMENTS INTERACTING WITH PUBLIC ART FROM THE LIBRARY TO NEIGHBORHOOD VITALITY, TO CULTURAL ARTS, TO ECONOMIC DEVELOPMENT.
UM, ART IS ON THE MIND OF A LOT OF DEPARTMENTS IN THE CITY OF GARLAND, AND THE FUNDING VARIES BY PROJECT.
UM, AS COUNCILWOMAN LUCK REFERENCE, THERE IS NOT A, YOU KNOW, SPECIFIC ONE POT DEDICATED TO PUBLIC ART FUNDS FOR, FOR GARLAND.
UH, SO, YOU KNOW, WHY IS PUBLIC ART IMPORTANT? WE ALL KNOW THIS, BUT IT JUST HELPS WITH OUR SENSE OF PRIDE.
UM, IT DOES KIND OF GIVE A LITTLE REFLECTION OF WHO WE ARE.
UM, AND IT ALSO ATTRACTS, YOU KNOW, VISITORS.
IT'S GREAT FOR OUR RESIDENTS, IT BEAUTIFIES, YOU KNOW, UH, OUR, OUR NEIGHBORHOODS.
BUT IT ALSO BECOMES A WAY TO BRING VISITORS INTO OUR COMMUNITY TO SEE WHAT'S GOING ON.
SO WHEN WE WERE THINKING ABOUT OUR APPROACH BACK IN NOVEMBER OF 2022, WE WERE THINKING ABOUT HOW ARE THESE PROJECTS DETERMINED? WHO'S MAKING THE SELECTION, WHAT'S THE CRITERIA TO EVALUATE? UM, AND THEN JUST TAKING A LOOK AT WHAT OTHER CITIES WERE DOING.
SO, YOU KNOW, THE PROCESS WAS IMPORTANT FOR US JUST BECAUSE, AGAIN, IT GAVE US A LITTLE BIT OF A ROADMAP.
AND SO WHAT WE DETERMINED, WE DID NOT ESTABLISH A POLICY.
WE MADE IT VERY CLEAR THAT WE WERE
[00:55:01]
LOOKING AT A PROCESS JUST BECAUSE WE KNEW THERE WERE A FEW THINGS THAT NEEDED TO BE, UM, FINALIZED BEFORE WE COULD HAVE AN OFFICIAL POLICY.UH, BUT WE MOVED IN THE DIRECTION OF SELECTING OF, OF UTILIZING AN ARTIST SELECTION POOL.
AND THAT WAS, UM, A PANEL THAT WOULD BE COMPRISED OF A CULTURAL ARTS COMMISSIONER OF A STAKEHOLDER THAT MIGHT BE A PROPERTY OWNER, UM, TO ALSO VOLUNTEERS IN, IN GARLAND.
SO THE PANEL WOULD COME TOGETHER, UH, TO HELP EVALUATE DIFFERENT PROJECTS TO HELP EVALUATE PO POSSIBLE ARTISTS.
WE IDENTIFIED DIFFERENT TYPES OF PROJECTS EVERY, EVERYTHING FROM A CAPITAL TYPE OF PROJECT FOR PUBLIC ART OR, UM, YOU KNOW, A PARKS AND RECREATION TYPE OF PUBLIC ART PROJECT.
UH, AND THEN WE KIND OF WENT THROUGH SOME EXAMPLES OF HOW THIS PROCESS WOULD FLOW.
SO THIS IS AGAIN, A LITTLE BIT OF THE BACKGROUND, UM, YOU KNOW, THINKING ABOUT HOW GARLAND'S PUBLIC ART PROCESS WOULD WORK.
SO THERE ARE A FEW THINGS THAT WE, UH, DETERMINED WERE NOT CONSIDERED PART OF THE PROCESS.
AND THAT WOULD BE, YOU KNOW, THESE URBANISM BEAUTIFICATION TYPES OF PROJECTS LIKE, UM, TRAFFIC BOX WRAPS, YOU KNOW, SIDEWALK ART, LIGHT POLE BANNERS.
THOSE THINGS ARE, ARE EXEMPT FROM OUR PUBLIC ART PROCESS.
WE'VE, WE'VE TALKED A LITTLE BIT ABOUT THIS, BUT WHEN YOU LOOK AT, UM, TEXAS GOVERNMENT CODE 4 4, 4 0.0 29, UH, ANY COUNTY MUNICIPALITY OR OTHER POLITICAL SUBDIVISION OF THE STATE UNDERTAKING A PUBLIC CONSTRUCTION PROJECT ESTIMATED TO COST MORE THAN 250,000, MAY SPECIFY THAT A PERCENTAGE NOT TO EXCEED 1% OF THE COST OF THE CONSTRUCTION PROJECT SHALL BE USED FOR FINE ARTS PROJECTS AT OR NEAR THE SIDE OF THE CONSTRUCTION PROJECT.
SO THIS IS THE CODE THAT REFERENCES THE, THE PERCENT FOR ART.
AND WHEN YOU TAKE A LOOK AT WHAT IS HAPPENING IN SOME OF OUR, UM, SISTER COMMUNITIES, UH, SOUTH LAKE USES A COMBINATION OF HOT FUNDS AND MATCHING.
SO HOTEL OCCUPANCY TAXES UP TO 15% CAN BE USED FOR ARTS INITIATIVES FOR GARLAND.
THE 15% IS GOING TO THE CULTURAL ARTS COMMISSION, WHICH IS PRIMARILY BEING SUB GRANTED TO THE DIFFERENT ARTS GROUPS.
AND THEN THIS LAST YEAR WE DID CARVE OUT JUST A LITTLE BIT OF THE EXCEEDED REVENUES TO PUT INTO CULTURAL ARTS BUDGET FOR PROGRAMMING.
SO THIS WAS APPROXIMATELY 190,000, WENT TO THE CULTURAL ARTS COMMISSION, AND 29,000 WENT TO CULTURAL, OKAY, A HUNDRED, EXCUSE ME, 190,000 WENT TO THE CULTURAL ARTS COMMISSION, RIGHT? THE INC FOR THEM TO SUBGRANT.
AND THEN ABOUT 29,000 WENT TO CULTURAL ARTS TO HELP FOR PROGRAMMING.
SO THAT'S WHERE THE 15% OF HOTEL OCCUPANCY WENT FOR THIS, FOR THIS CURRENT BUDGET YEAR.
UM, SO SOUTHLAKE IS USING THEIR 15% FOR PUBLIC ART.
UM, THEY'RE ALSO TRANSFERRING A HUNDRED THOUSAND, UH, TO CAPITAL TO CIP FOR ART PROJECTS.
SOUTHLAKE ALSO REQUIRES A PRIVATE MATCH, AND THERE ARE COMMUNITIES THAT DO SAY, HEY, IF YOU WANT A PIECE OF SCULPTURE ON YOUR PROPERTY, OR IF YOU WANT A MURAL OR A MOSAIC AS, AS THE PROPERTY OWNER, YOU NEED TO HELP MATCH.
FRISCO DOES A PERCENT FOR THE ART.
UM, AND HERE, YOU KNOW, I, I MAY NEED MATT'S HELP ON SOME OF THE, SOME OF THE, UH, THE NUMBER CRUNCHING WITH SOME OF THIS, BUT I KNOW, YOU KNOW, THEY'RE, THEY EXCEED THE 1%.
UM, THAT'S, YOU KNOW, THE CODE SAYS 1%, BUT THEY BELIEVE THAT THEIR ORDINANCES ARE INCREASING, ALLOW THEM TO INCREASE IT UP TO ABOUT 2%.
SO THEY HAVE AN ACTUAL ORDINANCE, UM, WRITTEN INTO THEIR CODE FOR FUNDING.
MAYBE, I DON'T KNOW, MATT, YOU MAY NEED TO HELP ME WITH SOME OF THIS.
I'M, I'M NOT A FINANCE PERSON,
AND THEY ALSO HAVE THEIR ORDINANCE.
UM, YOU KNOW, DALLAS DOES ALSO FOR PROJECTS THAT ARE OVER 50,000, THEY DO INVOLVE THEIR COUNCIL IN THE FINAL SELECTION OR THE FINAL PRODUCT.
SO, YOU KNOW, THERE ARE OTHER PLACES THAT, UM, YOU KNOW, OTHER WAYS TO FUND SOME PUBLIC ART.
YOU KNOW, THIS IS KIND OF A, AN EXAMPLE OF JUST SOME IDEAS OUT THERE.
UM, YOU KNOW, LOTS OF GREAT IDEAS ON THIS PAGE.
UM, I THINK ONE OF THE GREAT BENEFITS OF OUR CULTURAL DISTRICT, AND AGAIN, THAT IS KIND OF GEO-SPECIFIC BECAUSE IT'S, IT'S NOT THE WHOLE CITY.
IT ONLY, YOU KNOW, FALLS WITHIN THE
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BOUNDARIES OF OUR CULTURAL DISTRICT, BUT THERE WILL BE SOME GRANT OPPORTUNITIES TO ACCESS IN TERMS OF MATCHING DOLLARS, UM, FOR, FOR PUBLIC ART.SO, UM, WITH THAT BEING SAID, THERE'S, YOU KNOW, IT SEEMS LIKE A LOT OF CITIES FIGURE OUT WHAT'S THE BEST APPROACH FOR THEIR OWN COMMUNITY AND THEIR OWN CITY, UH, ON, ON HOW TO FUND THESE PROJECTS.
SO YEAH, I'LL ADD A LITTLE BIT ON THE 1%.
SO IT IS IN THE LOCAL GOVERNMENT CODE THAT UP TO, UP TO THE 1% OF THE CONSTRUCTION DOLLARS CAN BE SET ASIDE FOR ART.
WHAT FRISCO'S DOING IS SAYING, WE'LL GO UP TO 2%, BUT THAT 1% IS COMING FROM OUR CIP, SO TO MAKE SURE THEY'RE FOLLOWING THE LAW AND THAT, BUT WE WILL GO UP TO 2% IF WE GET GRANTS, IF WE FIND OTHER REVENUE SOURCES TO COMPLETE THAT.
BUT WE'RE NOT GOING OVER THE 2%.
SO THAT'S KIND OF HOW OTHER CITIES ARE GETTING AROUND THAT, THAT LOCAL GOVERNMENT CODE GOING ABOVE THE ONE.
UM, SO I WOULD LIKE YOUR, YOU KNOW, YOUR OPINIONS.
WHAT DO YOU THINK ABOUT MAYBE A HYBRID APPROACH WHERE FOR THOSE LARGE PROJECTS WE IMPLEMENT A 1%? UM, BECAUSE IF YOU HAVE A REALLY SMALL PROJECT, MAYBE, YOU KNOW, $200,000, $2,000 ISN'T GONNA, OR YOU KNOW, THAT 1% IS JUST NOT ENOUGH, UH, TO DO ANYTHING WITH.
SO, UM, I WAS ALSO CONSIDERING, YOU KNOW, AN ACTUAL FUND IN ADDITION TO A 1% THING.
YEAH, PLEASE, MATT, DO, CAN YOU PROVIDE MAYBE FOR OUR NEXT MEETING, SOME PROJECTED REVENUES USING OUR CURRENT CIP, UM, SPENDING? MM-HMM,
SO IF YOU CAN KIND OF GIVE US A ONE AND A HALF, 1.75, YOU KNOW, WHAT WOULD BE REVENUE PROJECTIONS BASED UPON CURRENCY IP SURE.
AND I'LL ASK, LET ME ALSO STATE AND SEE IF Y'ALL WANT ME TO BRING SEVERAL SCENARIOS RELATED TO THAT.
BECAUSE WHAT, WHAT A LOT OF CITIES DO IS THAT 1% ISN'T THE ENTIRE CIP.
SO IF YOU THINK ABOUT US WITH GP AND L, WATER AND SEWER AND ADDED, THAT'S HALF A BILLION DOLLARS, ONE THAT IS NOW A TON OF MONEY THAT COULD BE UTILIZED FOR PROJECTS.
BUT WE'RE NOT GOING TO, AT LEAST, I DON'T THINK THE INTENT IS TO GO PUT A, A PUBLIC ART ON A WASTEWATER SEWER LINE.
SO USUALLY CITIES ARE BACKING OUT THESE, THESE FIRST NON-TAX SUPPORTED AND THEN FROM THE TAX SUPPORTED LOOKING AT, OKAY, I ALSO HAVE SOME FIRE TRUCKS.
I ALSO HAVE SOME EQUIPMENT IN HERE BACKING THAT OUT.
AND REALLY JUST REALLY LOOKING AT A VERY SPECIFIC GROUPING OF CIP PROJECTS AND IT'S USUALLY ROADWAYS, DRAINAGE, AND, AND FACILITIES.
SO IF IT'S ALL RIGHT, CAN I BRING, BRING IT BACK SHOWING, KIND OF NARROWING IT DOWN AND THEN ALSO FULLY TAX SUPPORTED JUST TO SHOW WHAT THOSE DOLLARS ARE.
THEY SAY, WELL, THEY SAY TOTAL CAPITAL IMPROVEMENT IN PROJECT APPROPRIATION OR FOR THESE SEPARATE SUBCATEGORIES IS LESSER AMOUNT FOR STREET STORM DRAINAGE, UTILITY, OR SIDEWALKS.
UH, I I'M CURIOUS HOW THESE OTHER CITIES, LIKE AUSTIN HAS 2%, THEY IMPLEMENTED 2% IN 1985.
IT SAYS HERE IN, I WONDER HOW THEY GET AROUND THAT AS WELL.
WE CAN DIG INTO SOME MORE OF THAT BECAUSE I MEAN THE, IT'S VERY CLEAR THAT YOU CAN'T GO OVER THE 1%.
YEAH, I MEAN WE WERE TALKING TODAY THAT USUALLY, UH, STATE LAW HAS GOT SOME GRAY AIR.
THIS ONE'S DOES NOT
BUT I, MARTIN PUBLIC PLACES BIG BANNER 2% THAT WE CAN BRING FORWARD.
UH, 'CAUSE TO ME THIS WOULD ALSO, IN THE CITY OF GARLAND WOULD PROBABLY NEED TO BE A HYBRID APPROACH DEPENDING ON WHAT I WOULD LIKE TO.