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ADMINISTRATIVE SERVICES COMMITTEE[ NOTICE OF MEETING CITY OF GARLAND, TEXAS Administrative Services Committee Work Session Room of City Hall William E. Dollar Municipal Building 200 N. Fifth Street Garland, Texas JANUARY 23, 2025 5pm ]
MEETING.UH, WE ARE MEETING IN THE WORK SESSION ROOM TODAY.
THE DATE IS JANUARY 23RD, 2025.
WE WILL START WITH APPROVAL OF THE MINUTES.
DO WE HAVE ANYONE FOR PUBLIC COMMENTS? WE DO NOT.
ITEM THREE, COUNCIL APPOINTEE EVALUATION PROCESS.
I BELIEVE WE HAVE MICHAEL BAYES HERE TO GIVE A PRESENTATION ABOUT WHERE WE ARE IN THIS IN THE PROCESS.
WELL, FOR THOSE OF YOU WHO HAVEN'T HAD A CHANCE TO MEET, UM, MIKE BAYES PEER CARE PROFESSIONALS, UM, REALLY APPRECIATE THE OPPORTUNITY TO, OH, I DO.
I NEED TO RECORD IT, SO I NEED TO HEAR YOU ON THE MIC.
MIKE BAYES WITH, UH, CLEAR, CLEAR PROFESSIONALS HERE AND, AND REALLY APPRECIATE THE OPPORTUNITY TO WORK WITH, UH, COUNCIL AND COLLABORATE ON THIS PROJECT.
UM, I DID, YOU KNOW, PREPARE A REPORT THAT HOPEFULLY YOU GUYS WILL EITHER HAVE OR, OR HAVE ACCESS TO.
AND, UH, KIND OF WHAT WE'VE BEEN DOING IS FOLLOWING THE ORIGINAL OUTLINE OF, UH, THE SCHEDULE THAT WE HAD ADOPTED AFTER OUR KICKOFF MEETING ON JANUARY 6TH.
UH, KIND OF REVIEWING THOSE, WE, WE'VE BEEN LOOKING AT THE, UH, CONTRACTS AND, AND KIND OF THE, UM, UH, JOB DESCRIPTION OF THE DIFFERENT COUNCIL APPOINTED POSITIONS, AND THAT WAS KIND OF ONE OF OUR FIRST STEPS IN THIS PROCESS.
UM, AT, AT OVER THE LAST FEW WEEKS, WE'VE ALSO BEEN SENDING OUT INFORMATION REQUESTING, UH, COMPENSATION ANALYSIS FROM THE CITIES THAT TYPICALLY GARLAND IS PARTICIPATING IN, REVIEWING, AND, UH, COMPARING THOSE THINGS.
UM, AND THEN OVER THE LAST FEW DAYS, I'VE HAD THE OPPORTUNITY TO MEET WITH EACH COUNCIL APPOINTEE AND THEN SEVERAL OF THEIR DIRECT REPORTS, UM, IN THAT PROCESS, YOU KNOW, TYPICALLY IN A, IN A CITY MANAGER EVALUATION, UH, THEIR, THEIR, THE COUNCIL AND MAYOR ARE LOOKING AT, YOU KNOW, GENERALLY FIVE CATEGORIES OF, OF, UH, PERFORMANCE, WHICH IS STRATEGIC LEADERSHIP, UM, WHICH CAN, YOU KNOW, TALK ABOUT THEIR LEADERSHIP AND VISION, HOW THEY TYPICALLY, UM, EMPOWER PEOPLE AND HOW THEY GET THEM TO BUY INTO THE, THE VISION OF THE ORGANIZATION.
UM, OPERATIONAL EXCELLENCE, WHICH, WHICH SPEAKS TO PERFORMANCE AND RESULTS.
UM, COMMUNITY ENGAGEMENT, WHICH WE MAY LOOK AT.
COLLABORATION AND HOW THEY BUILD RELATIONSHIPS, UH, NOT ONLY WITH THE COMMUNITY, BUT WITH, WITH THE MAYOR AND COUNCIL, UH, FINANCIAL STEWARDSHIP, UM, HOW ARE THEY MANAGING THE CITY'S, YOU KNOW, FINANCIAL RESPONSIBILITIES.
AND LASTLY, ETHICAL CONDUCT, WHICH, UH, WELL, THEY'LL LOOK AT ETHICS, INTEGRITY, AND ACCOUNTABILITY, UM, IN THOSE KIND OF CATEGORIES.
WHAT WE HAVE, UH, ACCOMPLISHED IS, IS WHEN WE WERE MEETING WITH THE COUNCIL APPOINTEES, WE, WE SPOKE, UH, TO THEM ABOUT THEIR ACCOMPLISHMENTS, THEIR PRIORITIES AND THEIR CHALLENGES, UM, TRYING TO KIND OF UNDERSTAND THEIR PARADIGM AND, AND EXACTLY WHAT HAS BEEN GOING ON, UH, OVER THIS LAST YEAR.
UM, AND THEN WHEN WE WERE MEETING WITH THE, THE DIRECT REPORTS TO, UH, YOUR APPOINTEES, WE ASKED THEM, UH, QUESTIONS INVOLVING, UH, THEIR LEADERSHIP, THEIR MANAGEMENT STYLE, THEIR ACHIEVEMENTS, AND THEN GENERALLY IN WHAT THE ORGANIZATIONAL CULTURE IS WITHIN THEIR WORK GROUP.
AND THEN IN THE ORGANIZATION AS A WHOLE, UM, TRYING TO GET AS MUCH INFORMATION, UH, TO PROVIDE TO THE COUNCIL AS POSSIBLE.
UH, WHAT WE'RE HOPEFUL OF IS AS WE KIND OF TAKE THIS INFORMATION BACK AND BUILD A REPORT FOR OUR COUNCIL WORKSHOP ON FEBRUARY 3RD, UM, WE'LL PROVIDE THAT REPORT TO YOU AND THEN HOPEFULLY, YOU KNOW, ANSWER QUESTIONS THAT THE THE COUNCIL HAS AND OR SEE WHERE WE NEED TO DELVE INTO GETTING ADDITIONAL INFORMATION IN ORDER TO MAKE THE ENTIRE EVALUATION PROCESS LOOK EXACTLY LIKE YOU GUYS WOULD, WOULD LIKE IT TO LOOK.
UM, AND, YOU KNOW, WE STILL ARE ON TARGET FOR THAT.
AND THEN HOPEFULLY WE'LL BE ABLE TO HAVE THE FINAL PRESENTATION, UH, ON FEBRUARY 17TH, ACCORDING TO THE SCHEDULE AND, AND FINISH THE EVALUATION PROCESS.
UH, BUT THAT'S GENERALLY WHERE WE'RE AT AND WOULD BE HAPPY TO ANSWER ANY OF YOUR QUESTIONS THAT, UH, THAT YOU MAY HAVE.
COMMITTEE, DO YOU HAVE ANY QUESTIONS? NO, I'M LOOKING FORWARD TO THE REPORTS COMING UP VERY SOON.
WELL, WE REALLY APPRECIATE ALL THE WORK AND, UM, AND YEAH, LOOKING FORWARD TO THIS PROCESS, I THINK IT'S BEEN, IT'S BEEN A LITTLE DIFFERENT THAN WHAT WE'RE USED TO, BUT
PROVIDE EVERYBODY WITH THE NECESSARY INFORMATION THEY NEED TO MAKE GOOD DECISIONS.
WELL, AND, AND THANK YOU FOR THAT AND, AND, YOU KNOW, FOR US, YOU KNOW, LEARNING, YOU KNOW, HOW, HOW, UH, TO WORK WITH, WITH YOU AS A GROUP TOO, AND MAKING SURE WE'RE, WE'RE HITTING THE POINTS THAT YOU NEED US TO, IS DEFINITELY A PROCESS.
AND SO HOPEFULLY, YOU KNOW, AS WE'RE GOING THROUGH THIS, WE CAN KIND OF UNDERSTAND EXACTLY WHAT YOU'RE, YOU KNOW, NEEDING MORE OF OR, OR LESS OF AS WE KIND OF ADAPT, YOU KNOW, THE EVALUATION PROCESS TO, TO REALLY FIT INTO EXACTLY WHAT YOU GUYS HOPE TO ACHIEVE WITH IT.
OH, WELL, AND I DO WANNA MENTION THAT,
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UM, THE MEMBERS OF THE COMMITTEE ARE COUNCILMAN DI HEDRICK AND COUNCILMAN CHRIS BET.SO, UH, I DID NOT SAY THAT EARLIER.
UH, OUR NEXT ITEM IS THE ANNUAL REVIEW OF HOMESTEAD AND SENIOR EXEMPTIONS.
AND I BELIEVE WE HAVE MR. CORY HERE.
IT, DID YOU RECEIVE A COPY? NO, THANK YOU.
SO WE HAVE MR. WORSHAM, OUR TAX ADMINISTRATOR, AND MATT WATSON, OUR CFO, AND I BELIEVE MR. WORSHAM, YOU'RE GOING FIRST? YES, MA'AM.
UH, TODAY I'M JUST GONNA TALK A LITTLE BIT ABOUT THE OVER 65 EXEMPTION AND HOW, HOW IT, UH, IS ADMINISTERED IN THE TAX OFFICE HERE, AND PROVIDE YOU A LITTLE BIT OF DATA ABOUT WHERE, WHAT THE STATUS OF OVER 65 EXEMPTION IS AND DO A SMALL COMPARISON WITH SOME, UH, CITIES HERE IN THE DALLAS COUNTY AREA.
UH, AND JUST GENERAL OVERVIEW OVER 65 EXEMPTION, OF COURSE IS FOR A HOMEOWNERS HERE, UH, REALLY ACROSS THE STATE, UH, WHERE A TAX TA HAS AGREED TO PROVIDE THAT EXEMPTION FOR ANYONE OVER 65.
I'LL TALK A LITTLE BIT ABOUT HOMESTEAD EXEMPTION PAYMENT OPTIONS, AND THEN AGAIN, WE'LL DO SOME DATA, DATA COMPARISON AND, UH, TOUCH ON STEPS FOR APPROVING A CHANGE IN THE EXEMPTION.
IN ORDER TO QUALIFY FOR THIS EXEMPTION, UM, YOU MUST BE IN A SECURE STRUCTURE NOT TO EXCEED 20 ACRES ON HOLD OR IN PART BY THE APPLICANT DESIGNED TO OR ADAPTED FOR HUMAN RESIDENCE OCCUPIED BY THE OWNER AS A PRIMARY RESIDENT.
UM, IT SAYS, UH, THE, THE, THE STRUCTURE DOES NOT USE LOSES CHARACTER AS A RESIDENT HOMESTEAD IF THE OWNER TEMPORARILY STOPS OCCUPYING A PROPERTY FOR HEALTH INFIRMITY AGING OR ACT MILITARY SERVICE.
UH, I, I THOUGHT THAT WAS IMPORTANT TO MENTION BECAUSE, UH, AS WE KNOW, UH, A HOMESTEAD EXEMPTION AND I, I TEND TO RELAY HOMESTEAD WITH OVER 65 BECAUSE THEY'RE JOINT, UH, THEY END UP BEING A JOINT EXEMPTION.
BUT IF YOU'RE NOT LIVING IN THE PROPERTY, YOU DON'T GET THE CLAIM, THE EXEMPTION, UH, SO THE EXCEPTION WITH OVER 65 IS, UH, IF YOU SAY NEED TO GO TO A THERAPY CENTER AND STAY FOR AN EXTENDED PERIOD OF TIME, IF THE HOMEOWNER'S INTENT IS TO RETURN TO THAT PROPERTY, THAT OVER 65 STAYS WITH THAT PROPERTY.
UH, NOW KEEP, KEEP IN MIND, OWNER WOULD NEED TO COMMUNICATE THAT WITH THE APPRAISAL DISTRICT.
SHOULD THEY RECEIVE, UH, AN AUDIT LETTER ASKING THEM, YOU KNOW, ARE YOU STILL THERE? UH, BUT THEY WOULD BE ABLE TO MAINTAIN THE EXEMPTION OVER 65 EXEMPTION CONTINUED YEAR, UH, MANDATE GENERAL HOMESTEADS, UH, BASICALLY IF YOU'RE APPROVED FOR LOCAL EXEMPTION ADMINISTERED PERCENTAGE, NO LESS THAN $5,000.
UM, THE DIFF BIGGEST DIFFERENCE WITH A HOMESTEAD VERSUS, UH, OVER 65 IS HOMESTEAD'S TYPICALLY CALCULATED AT A PERCENTAGE OF THE MARKET VALUE, WHEREAS THE OVER 65 EXEMPTION IS A HARD, UM, OF SOLID NUMBER.
UH, AND IN OUR CASE IT'S $56,000 OF ACTUAL MARKET VALUE.
UM, KEEP IN MIND, CITY GARLAND DOES NOT HAVE A TAX CEILING FOR OVER 65 EXEMPTIONS.
TALK A LITTLE BIT ABOUT PAYMENT OPTIONS.
UH, ONE OF THE THINGS THAT WE HAVE IS COMMONLY CALLED QUARTER PAY PLAN.
THE TECHNICAL TERM IS INSTALLMENT PAYMENT PLAN.
IT'S FOR THE OVER 65 DISABLED HOMEOWNERS AND IT BASICALLY ALLOWS HOMEOWNERS TO BREAK THEIR OVERALL LEVEE AMOUNT OR TAX AMOUNT INTO FOUR EQUAL PAYMENTS.
AND IT ALTERS THE DELINQUENCY DATE INTO FOUR DIFFERENT DAYS, UH, THAT FIRST QUARTER BY JANUARY 31ST, SECOND QUARTER BY MARCH 31ST, MAY 31ST, AND THEN JULY 31ST.
UH, THIS OF COURSE GIVES PROPERTY OWNERS A LITTLE MORE TIME TO PAY AND TO MANAGE THEIR TAX UH, DEBT.
OKAY, WE'LL TALK A LITTLE BIT ABOUT THE QUARTER PAY STATS.
IF YOU LOOK, I'VE KIND OF PUT SOME, UH, FIGURES THERE FROM 22 TO 24, UH, STARTED 22, HAD 795 PARTICIPANTS IN THE QUARTER PAY PROGRAM.
SO IT'S DEFINITELY A, A UPWARD TREND AND HAS BEEN FOR QUITE A FEW YEARS.
I DON'T FIND THIS TREND TO BE ANY NECESSARILY DIFFERENT THAN ANY OTHER ENTITY IN THE GENERAL AREA.
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DEFERRALS UH, TAX DEFERRAL IS ANOTHER OPTION FOR OVER 65 DISABLED PROPERTY OWNERS WHO, UM, ARE IN A SEVERE HARDSHIP.THIS PRIMARY REASON FOR THIS, UH, DEFERRAL OPTION IS TO PROTECT THE PROPERTY FROM ANY KIND OF FORECLOSURE AND TO ALSO, UM, LIMIT THE INCREASE IN PENALTIES FOR THAT PROPERTY OWNER.
UH, SO IF YOU'RE OVER 65 DISABLED AND THEY ARE DECLARING THAT THEY HAVE A HARDSHIP, THEY CAN GO TO THE DALLAS OR, OR THE CENTRAL APPRAISAL DISTRICT, REQUEST A DEFERRAL FOR THEIR DELINQUENT TAXES.
BY DOING SO, IT BASICALLY FREEZES ANY CURRENT PENALTY ACCRUAL SO THAT IT DOESN'T CONTINUE TO GROW, AND THAT COVERS ALL DELINQUENT YEARS.
UH, AND THEN IT WILL CHANGE THE CALCULATION FOR INTEREST GROWTH TO 5% ANNUALLY.
UH, SO WITHOUT GOING INTO ALL THE INTRICACIES OF WHAT PENALTY INTEREST IS THAT, THAT'S A SIGNIFICANT REDUCTION IN PENALTY GROWTH FOR OVER SIX FIVE.
UH, WE, WE DEFINITELY TRY TO EDUCATE OUR TAXPAYERS WHO INQUIRE ABOUT THIS OR WHO WE TRY TO EDUCATE THEM ON THIS.
UH, ONE OF THE BIGGEST CAVEATS IS IF YOU HAVE ONE OF THESE DEFERRALS AND YOU ALSO HAVE A MORTGAGE COMPANY, YOUR MORTGAGE COMPANY DOES NOT HAVE TO HONOR YOUR DEFERRAL BECAUSE THEY HAVE A PRIVATE AGREEMENT WITH THE OWNERSHIP, UH, NOT TO GET A A A LIEN AND A TAX DEBT IS A LIEN.
AND SO ALTHOUGH THE CITY, THE COUNTY, THE SCHOOL DISTRICT WILL NOT PURSUE A DEFERRED ACCOUNT, UH, THE MORTGAGE COMPANY WILL PAY THAT ACCOUNT ANYWAY AND PUT THE HOMEOWNER IN AN ESCROW.
SO WE ALWAYS TRY TO, TO DEFINE THAT WHEN WE ARE TALKING TO OVER 65 CITIZEN OR SOMEONE WAS ASKING ABOUT A DEFERRAL, UH, SO THAT THEY KNOW AND THEY'RE AWARE BEFOREHAND.
UH, AGAIN, SOME DATA ON THIS BACK IN 20 20 22, 262 PARTICIPANTS HERE IN 20 24, 271 PARTICIPANTS.
IT'S BEEN HOLDING PRETTY STEADY, UH, DEFERRED LEVY OF COURSE HAS GONE UP SOME, BUT THAT, THAT COULD BE ATTRIBUTED AGAIN TO JUST OVERALL VALUES INCREASES AND TAX LEVIES INCREASING.
UM, THIS NEXT SLIDE IS GOING TO TALK ABOUT OVER 65 EXEMPTION AS IT APPLIES SPECIFICALLY TO THE CITIES HERE IN DALLAS COUNTY.
UM, IF YOU LOOK AT THE CHART, THOSE THAT HAVE, UH, PURPLE MARKING ARE TAXING ENTITIES OR TAXING CITY TAXING ENTITIES THAT DO NOT HAVE A CEILING.
UH, I'VE MARKED CITY OF GARLAND THERE IN RED, SO WE CAN SEE WHERE WE LIE IN THE, IN THE SPREAD THERE.
AND THEN THOSE THAT ARE GREEN, THEY ALL HAVE CEILINGS IN THOSE ENTITIES.
UH, KEY, WELL KEY POINT THAT'S NOT ON HERE I WANNA MENTION IS OUT OF THE 31 CITIES, UM, SEVEN OF THEM HAD A OVER 65 EXEMPTION INCREASE THIS PAST YEAR.
UH, AND ANOTHER NOTE ON THIS PRESENT, ON THIS PARTICULAR SLIDE, HIGHLAND PARK IS NOT INCLUDED BECAUSE THEY ARE VERY MUCH OUTSIDE OF THE SCOPE OF WHAT EVERYONE ELSE IS DOING.
UM, TALK A LITTLE BIT ABOUT THE OVER 65 EXEMPTION AS IT PERTAINS TO, UH, PROPERTY VALUE IN A LITTLE BIT OF THE COMPARISON HERE.
UH, I I, I PUT IN SUBSIDIES, GARLAND IRVING, GRAND PRAIRIE, MESQUITE, DESOTO RICHARDSON, AND, UH, JUST GIVE YOU SOME DATA TO SHOW, UH, BASED ON AVERAGE RESIDENTIAL VALUE.
UM, AND THE, GIVES YOU SOME PERSPECTIVE ON THE OVERALL, UH, VOLUME OF RESIDENTIAL PROPERTIES AND THOSE ENTITIES AND HOW THE OVER 65 EXEMPTION AFFECTS THOSE, THOSE PARTICULAR ENTITIES AS FAR AS PROPERTY VALUE LOSS, UM, AND THE PARTICIPATION IN OVER 65 EXEMPTION FOR THOSE ENTITIES.
THIS SLIDE HERE IS A QUICK THREE YEAR COMPARISON ON ACTUAL LEVY TAX, THE TAX CALCULATION AS IT PERTAINS TO OVER 65, UH, EXEMPTION FOR THOSE SAME ENTITIES.
NOW, THIS CALCULATION IS BASED ON A FIRST YEAR OVER 65, UH, HOMEOWNER.
UH, TWO OF THOSE ENTITIES, THEY, THEY, THEY HAVE A CEILING.
SO IF A HOMEOWNER AND THOSE ENTITIES HAVE MULTIPLE YEARS OF, OF OVER 65, UM, PRIVILEGE, THEY WILL ALSO HAVE A CEILING THAT WOULD SKEW THESE NUMBERS.
BUT BASICALLY A, UH, UH, STRAIGHT CALCULATION OF THE HOMESTEAD AND OVER 65 BASED ON THE AVERAGE HOME HOME VALUES.
UH, WHAT'S BEING DISPLAYED HERE, UH, THE CITY OF GARLAND KIND OF FALLS RIGHT THERE IN THE MIDDLE OF THE GRAPH, BUT OVERALL THE TREND IS, UH, FOR THE THREE YEARS, AS YOU CAN SEE, IS DEFINITELY UPWARD FOR THESE PROPERTY OWNERS.
AND, AND ALL THOSE ENTITIES TALK A LITTLE BIT ABOUT OVER 65 EXEMPTION MUST BE
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APPROVED BY JULY 1ST BY COUNSEL.SO, UM, THE GOVERNOR BODY MAY ALSO CALL AN ELECTION, BUT YOU HAVE TO PETITION 20% OF THE ELECTORATE IN ORDER TO CALL THAT ELECTION, UH, FOR AN OVER 65 APPROVAL.
AND THEN CHANGES TO THE EXEMPTION AMOUNT MUST RESULT IN THE EXEMPTION AMOUNT OF AT LEAST $3,000 OF VALUE, WHICH WE DO HAVE, UH, TAX CEILINGS ONCE APPROVED MAY NOT BE REMOVED.
SO, UM, THAT'S WHAT I HAVE TODAY.
DO YOU Y'ALL HAVE ANY QUESTIONS? COMMITTEE? YES.
I DON'T EVEN KNOW WHAT TO ASK.
COUNCILMAN HENDRICK? YES, THANK YOU.
I KNOW IN THE PAST WHEN WE'VE TALKED ABOUT THIS, WE'VE TALKED ABOUT THE, UM, DEFERRAL RATE RISING AND IT SEEMS TO BE HOLDING PRETTY STEADY LATELY.
EVEN WITH THE INCREASE IN HOME VALUES.
UM, I WISH THE TERRAIN WENT BACK A LITTLE FURTHER 'CAUSE I SEEM TO REMEMBER IT WAS GOING UP FOR A LITTLE WHILE, BUT NOW IT SEEMED TO LEVEL OUT.
DOES THAT MY MEMORY CORRECT ON THAT AS FAR AS, UH, THOSE WHO PARTICIPATE IN AN, IN AN ACTUAL DEFERRAL RIGHT.
OR WHO ARE ACTUALLY BEHIND, MAYBE THAT'S, YOU KNOW, UH, THEY'RE LEVELING OUT AND, AND, AND I THINK IT HAS A LOT TO DO WITH JUST THE NATURE OF, UM, THAT SEGMENT OF OWNERSHIP THAT WE ARE TALKING, UH, OVER 65, YOU KNOW, AS THAT, AS, AS OWNERSHIP CHANGES, THE DEFERRAL GOES AWAY MM-HMM
SO, UM, WHILE IT CAN STAY ON THE PROPERTY FOR INDEFINITELY WONT, BUT THE, BUT WE DON'T STAY HERE INDEFINITELY.
SO I THINK THAT MAY HAVE AN EFFECT ON SOME OF THAT TREND.
AND YOU'RE NOT AT ALL CONCERNED ABOUT THE DEFERRED LEVY.
IT GREW BY MORE THAN $200,000.
IT'S, I'M SORRY, SAY IT AGAIN.
THE DEFERRED LEVY, IT GREW BY MORE THAN $200,000 THIS PAST YEAR.
AND, AND SO THAT GROWTH CAN AGAIN BE ATTRIBUTED TO JUST THE OVERALL TAXATION GROWTH MM-HMM
AND SO IF YOU LOOK ACROSS BASICALLY ALL TRENDS IN, IN YOUR TAX ROLE, UH, JUST YOUR ROLE ITSELF GROWS SIGNIFICANTLY EACH YEAR.
SO THAT MEANS IF YOU HAVE UN UNCOLLECTIBLE, UH, DEBT, IT TOO WILL GROW.
I'LL, I'LL JUMP IN THERE AND JUST SAY CORY'S OVERALL COLLECTION RATES ARE STILL DOING MUCH BETTER THAN YEARS AGO, AND HE'S STILL AVERAGING, YOU KNOW, 99% COLLECTION.
IT THE, WHEN THE WHOLE BODY OF IT IS GROWING, SEEING A GROWTH IN JUST THAT.
BUT IT'S THE ENTIRE TAX BASE WHEN YOU'RE TALKING ABOUT 15, 16% INCREASES, YOU'RE GONNA SEE SOME JOBS.
COUNCIL MEMBER BEARD, DO YOU HAVE ANY QUESTIONS YET? YOU WANT SOME TIME? I'LL ORDER FIRST
UM, HOW OFTEN DOES ONE HAVE TO CONFIRM HOMESTEAD IN DALLAS COUNTY? DOES THAT HAVE TO BE REAFFIRMED EVER? UH, NOT, NOT, UH, PROGRAMMATICALLY.
UH, WHAT, WHAT THEY WILL DO FROM TIME TO TIME IF THE APPRAISAL DISTRICT GETS NOTIFICATION, UH, THAT SOMEONE MAY NOT BE RESPONDING TO MAIL, UH, THEY MAY SEND OUT AN AUDIT.
SO IT'S MORE OF A SPOT CHECK THEN, UH, A REQUIREMENT.
AND ON THOSE PAYMENT PLANS, UH, THE FOUR PAYMENT PLANS THAT SOMEONE CAN GO INTO, IS THERE COMPOUNDING INTEREST ON THOSE? SO I, I SAW THAT THERE WAS A FEE IF THEY DIDN'T PAY FOR THE QUARTER, BUT ARE THEY PAYING INTEREST ON THAT ORIGINAL AMOUNT OR WHAT'S DUE THROUGHOUT THE, THEIR, THEIR OPINION ON THAT QUARTER PORTION? OKAY.
UH, BASED ON THE CURRENT PENALTY SCALE OR SCHEDULE, SO WHATEVER PENALTIES YOU WOULD ACCRUE THAT SEVEN, 9%, 11% ON REGULAR TAX TAX ACCOUNT, YOU WOULD ACCRUE THAT SAME SCHEDULE ON THAT PARTICULAR QUARTER.
SO YOU MAY HAVE FOUR QUARTERS AT DIFFERENT TIMES IF THEY GET OFF, OR EVEN IF THEY ONLY GET OFF ON ONE, UH, OR OUTTA SYNC ON ONE, THEY'RE ONLY GETTING THAT PENALTY ON THAT ONE QUARTER.
AND HOW, IF WE WERE TO CHANGE THE PENALTIES FOR PAYMENT PLANS TO MAKE IT EASIER, MAKE IT LESS COSTLY FOR SOMEONE TO PAY BACK THAT AMOUNT, UM, HOW DO, WHAT DOES THAT PROCESS LOOK LIKE? UNFORTUNATELY, THERE'S NOT A PROCESS TO DO.
IT'S, THOSE ARE JUST MANDATED BY THE STATE.
UM, I WAS THINKING MAYBE THAT MIGHT BE SOMETHING WE COULD DO.
UM, AND THEN DO YOU HAVE ANY DATA ON THE HOME VALUE FOR DEFERRALS? I DON'T LIKE THE AVERAGE HOME VALUE.
I HAVE THE AVERAGE HOME VALUE FOR THE CITY IN, IN THE PRESENTATION.
BUT JUST SPECIFICALLY, I, I WOULD BE INTERESTED TO SEE IF WHAT THOSE ARE, UM, TO SEE IF WE'RE, UM, LOOKING AT PEOPLE WITHIN A CERTAIN RANGE TYPICALLY.
AND IS THERE ANYTHING THAT WE CAN DO IN REGARD TO THAT? SO SAY IF SOMEONE, UH, LIVES IN A HOUSE THAT'S UNDER $200,000 AND THEY'VE, UM, ARE WE ALLOWED TO PINPOINT AN EXEMPTION TO A VALUE OR DO WE HAVE TO DO
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IT JUST BLANKET OVER 65? UH, THE, THE DATA'S THERE, BUT IT'S NOT NECESSARILY ORGANIZED IN THAT FASHION.SO, UH, I, I WOULD RUN A BASICALLY DEFERRAL ROLE AND THEN AND EXTRAPOLATE BACK TO IT, IT REQUIRES SOME DEAKING.
I'M NOT SURE ON IF YOU CAN HAVE A, I THINK WHAT YOU'RE SAYING IS LIKE A, A LOWER LOWER PERCENTAGE OR SOMETHING MM-HMM
FOR DEFERRALS UNDER 200,000? I DON'T THINK SO.
UH, BUT THE PERCENTAGE IN ITSELF, AGAIN, UM, IF THEY, ONCE THEY ENACT THE DEFERRAL, IT, IT SHUTS OFF THE, IT SHUTS THE PENALTY OFF.
SO WHATEVER THAT ACCRUED IS STILL THERE, BUT IT'S NOT GONNA COME BACK.
AND SO, WHICH WAS A LARGE PART OF THE CALCULATION FOR PENALTY INTEREST.
SO LAW CHANGE, IT USED TO BE 8%, NOW IT'S 5% ANNUALLY, WHICH IS WHICH, WHEN YOU AGGREGATE THAT OUT TO A 12 MONTH PERIOD, IT'S VERY LOW ACCRUAL.
SO WHEN SOMEONE GOES ON A DEFERRAL AND THEY'RE IN THIS SITUATION, IT'S JUST REALLY THE BEST SITUATION THEY CAN BE IN.
ONLY EXCEPTION IS IF THEY HAVE A MORTGAGE COMPANY.
WHAT ABOUT THE TAX EXEMPTION FOR OVER 65? IS THERE A WAY TO SAY IF YOU LIVE IN A HOME THAT'S UNDER THIS VALUE, YOUR EXEMPTION IS MORE THAN SOMEONE THAT LIVES IN LIKE A $400,000 HOME? THIS IS AGAIN, ACTUALLY REGULATED BY.
COUNCIL MEMBER BEARD, DO YOU HAVE ANY QUESTIONS? I ASKED QUESTIONS THE OTHER DAY WHEN I MET WITH MATT AND HE ANSWERED ALL MY QUESTIONS ON CAN WE MAKE IT A PERCENTAGE? CAN WE DO THIS? UH, SO I HAD SEVERAL QUESTIONS THEN.
SO I DON'T HAVE ANY NEW QUESTIONS AT THIS TIME.
AND I'LL ADD TO WHAT YOU'RE SAYING THAT'S, THAT'S THE REASON WHY IT'S A FLAT DOLLAR AMOUNT ON THE SENIOR IS BECAUSE IT, IT WILL PROVIDE MORE RELIEF TO LOWER YOUR HOME.
SO IF YOU HAVE A HUNDRED THOUSAND DOLLARS HOUSE, YOU'RE BASICALLY GETTING CUT IN HALF MM-HMM
COMPARED TO SOMEBODY WITH A 400,000 HOUSE.
I'VE BEEN RUSHING AROUND ALL DAY.
WHAT DOES THAT MEAN? I BROKE IT.
CAN WE JUST OFF, WE'RE GONNA HAVE TO GO BY PAPER OFF OLD SCHOOL.
GOOD THING YOU PRINTED IT OFF.
SOME, A LOT OF THE, A LOT OF THIS INFORMATION HERE, UH, COREY DID COVER AND I ALSO HAVE KIND OF SPLIT SOME DATA UP A LITTLE BIT DIFFERENT, AND I'LL EXPLAIN THE BEST I CAN, WHY IT MAY LOOK A LITTLE DIFFERENT THAN WHAT COREY, COREY JUST PRESENTED.
UH, BUT A QUICK SUMMARY OF THE HOMESTEAD EXEMPTION.
RIGHT NOW WE'RE AT 10% OF APPRAISED VALUE.
SO AGAIN, IT'S A PERCENTAGE BASE.
THE MINIMUM EXEMPTION IS $5,000 FOR THOSE WITH LOWER, LOWER VALUED HOMES.
RIGHT NOW, ABOUT 64% OF OUR RESIDENTIAL HOMES QUALIFY FOR HOMESTEAD EXEMPTION.
AND IN 2020 4 25, THE LAST BUDGET THAT HOMESTEAD EXEMPTION FOR THOSE 64% RESULTED IN ABOUT 8 MILLION IN FOREGONE TAX REVENUE.
AGAIN, AS COREY MENTIONED, THE THE MOST IMPORTANT DATE THAT WE HAVE IN OUR REVIEW OF THIS IS JULY 1ST.
THAT IS THE DEADLINE TO MAKE CHANGES TO, UH, ANYTHING RELATED TO HOMESTEAD OR SENIOR.
AND THEN I'VE ADDED TWO NEW KIND OF BULLETS FROM THE, YOU KNOW, THE STANDARD DISCUSSION OF THIS SUMMARY.
AND, UM, REMEMBER NOW THAT WITH SB TWO, AND AS WE TALKED ABOUT AT THE SATURDAY WORK SESSION, ADJUSTMENTS TO HOMESTEAD EXEMPTIONS OR SENIOR EXEMPTIONS RESULT IN LESS DEBT REVENUE.
BUT ON THE M AND O SIDE, IT RESULTS IN A SHIFT OF THE TAX BURDEN TO THOSE THAT DO NOT HAVE THE EXEMPTION.
SO FOR THE CITY SIDE, IT'S GOOD IN THAT THE GENERAL FUND DOES NOT LOSE OR FOREGO REVENUE, BUT WE DO LOSE AND FOREGO THE DEBT SERVICE SIDE.
THE NEXT SLIDE IS VERY SIMILAR ON THE SUMMARY OF SENIOR EXEMPTIONS.
SO AS COREY SAID, WE'RE AT 56,000, WE INCREASED THAT IN 21 FROM 51,000, MUST BE AGE 65.
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AS COREY HAD IN HIS SLIDES TOO, 25% OF OUR RESIDENTIAL HOMES AND GARLAND QUALIFY FOR SENIOR EXEMPTIONS.AND I HAVE NOTICED IN IN THE PAST WE WERE GOING UP ABOUT 4% A YEAR, BUT THAT HAS SINCE KINDA LEVELED OFF.
SO THE, THE GROWTH AND THE NUMBER OF SENIORS IN OUR COMMUNITY HAS KIND OF FLATTENED OUT.
SO AGAIN, LIKE I SAID, FIVE, SIX YEARS AGO, WE WERE SEEING AVERAGE OF 4% GROWTH EACH YEAR, BUT IT'S KIND OF LEVELED OUT.
UH, JULY 1ST IS THE SAME DEADLINE AND THEN THE SAME CONCEPT ABOUT SB TWO, WHERE WE WOULD FOREGO ADDITIONAL DEBT, SERVICE REVENUE AND CIP CAPACITY WITH ANY ADJUSTMENTS TO THE SENIOR EXEMPTION.
BUT ON THE M AND O SIDE, IT WOULD BE A TAX BURDEN SHIFT.
THEN I'LL GO TO THE NEXT SLIDE.
AND THIS LOOKS A LITTLE DIFFERENT THAN WHAT I PRESENTED SATURDAY BECAUSE I TRIED TO BREAK THE DATA OUT A LITTLE BIT IN MORE DETAIL.
SO WHAT YOU'RE SEEING HERE IS, AND, AND I DO NOT HAVE, I I TRIED TO DO A MIX OF COLLUM COUNTY, TARRANT COUNTY AND JUST LOOKED AT, THERE'S, THERE'S REALLY 14 CITIES WE COMPARE TO WHEN WE LOOK AT BUDGET DATA, UH, MERIT COMPENSATION DATA.
SO THAT'S WHAT I WENT WITH HERE IS JUST THOSE CITIES.
AND YOU CAN SEE THERE ARE SENIOR EXEMPTIONS.
IN THE FIRST COLUMN, THE AVERAGE OF THE CITIES IS ABOUT 70,286 HOMESTEAD EXEMPTION.
THE AVERAGE OF ALL THE CITIES IS 11%.
AND WHAT'S DIFFERENT ON THIS, FROM WHAT I PRESENTED SATURDAY, IS THAT I ACTUALLY WENT THROUGH THE DATA AND BROKE OUT THE AVERAGE TAXABLE VALUE OF A SENIOR COMPARED TO A HOMESTEAD EXEMPTION.
MEANING THE SENIORS, HIS IS THE AVERAGE VALUE OF A HOME FOR ANYONE OVER TO THE AGE OF 65.
AND THEN THE HOMESTEAD IS THE AVERAGE VALUE FOR THOSE WITH A HOMESTEAD.
SO YOU CAN SEE THERE ON THE AVERAGE, THE AVERAGE SENIOR HOME TAXABLE VALUE IN THE CITY IS 194.
AND REMEMBER, THIS IS TAXABLE VALUE.
SO THIS IS AFTER ALL THE EXEMPTIONS COMPARED TO THE AVERAGE OF 2 85 6 0 2.
THE HOMESTEAD IS 2 50, 2 6 1 7 COMPARED TO A 3 59, 3 1 9.
AND THEN I PROVIDED BASED OFF OF THIS DATA EXP YOU KNOW, POOL WHAT THE AVERAGE TAX BILL WOULD BE FOR A SENIOR AND A HOMESTEAD.
AND SO YOU'LL SEE THAT THESE ARE SLIGHTLY LOWER THAN WHAT COREY PRESENTED ON THE SENIORS AND IT'S BECAUSE I TOOK OUT THE ALL THE OTHER AVERAGES COMPONENTS AND JUST LOOK AT SENIORS.
UM, THINGS THAT TO POINT OUT HERE YOU CAN SEE SOME CITIES LIKE RICHARDSON ARE ALL IN ON SENIOR WITH NO HOMESTEAD EXEMPTION.
IF IT HAS AN ASTERISK NEXT TO IT, THOSE ARE WHAT COREY WAS MENTIONING, THE THE ONES WITH THE CEILING OR THE FREEZE.
AND SO WHEN YOU'RE LOOKING AT A CITY SUCH AS ETTE, WHERE THEIR CURRENT TAXABLE VALUE FOR SENIORS IS 3 0 5 360 BECAUSE THEY CAN'T TURN THIS BACK OFF, EVERYONE ELSE IS GOING TO CATCH UP TO THEM AND THEY'LL SOON BE AT THE LOWER END OF THAT VALUE.
THIS IS JUST A GENERAL LOOK AT PROPERTY TAX COLLECTION BASED OFF OF BUDGETS FOR THE 2020 4 25 YEAR PER CAPITA.
AND I DID PER CAPITA, JUST TO PUT IT APPLES TO APPLES WITH EVERYONE ELSE BECAUSE DIFFERENT CITIES ARE DIFFERENT SIZES.
SO YOU CAN'T JUST LOOK DIRECTLY AT THEIR TAX REVENUE.
AND YOU CAN SEE GARLAND IS THE SECOND LOWEST OUT OF ALL THOSE CITIES AND PROPERTY TAX REVENUE COLLECTION.
AND IT, I DON'T HAVE IT IN THIS SLIDE DECK, BUT IF YOU WERE TO LOOK AT OUR TAX RATE, IT WOULD BE BASICALLY FLIP FLOPPED.
YOU WOULD SEE US AT THE HIGHER END, DALLAS ROLLETTE ARE HIGHER THAN US, BUT, UH, WE WOULD BE AT THE HIGHER END OF THAT SPECTRUM BECAUSE IT'S REALLY INVERSELY RELATED.
YOU'VE GOTTA, YOU'VE GOTTA GET ENOUGH MONEY TO RUN YOUR OPERATIONS.
AND WHEN PROPERTY VALUES ARE LOW, THE TAX RATE IS TYPICALLY HIGHER.
AND I DID PUT A COUPLE BULLET NOTES THERE THAT I'VE, I'VE MENTIONED THESE BEFORE.
WHEN WE TALK ABOUT GARLAND'S CHALLENGE, IF GARLAND WAS AT THAT METROPLEX AVERAGE, THAT WOULD GENERATE $25.5 MILLION ANNUALLY.
AND RICHARDSON AND DALLAS ARE KIND OF OUTLIERS TO ME 'CAUSE THEY HAVE A LOT OF COMMERCIAL PROPERTY.
SO IF YOU EVEN BACK THOSE TWO OUT OF THAT AVERAGE IS STILL $15.5 MILLION OF ADDITIONAL REVENUE WE WOULD RECEIVE IF WE WERE SIMILAR TO THE OTHER SUBURBAN CITIES.
THE NEXT SLIDE IS THE DEBT DONUT THAT WE'VE SHOWN SEVERAL TIMES.
AND WITH ONE LITTLE CHANGE HERE, UH, IN THE
[00:30:01]
PREVIOUS DEBT DONUTS, WE DID NOT HAVE LISTED THE ADDITIONAL CAPACITY WE HAVE THAT ISN'T ACTUALLY PROGRAM INTO SOMETHING RIGHT NOW.SO AGAIN, WE HAVE FOUR, OUR CIP THAT WE'RE CURRENTLY, UH, GOING OVER AND SCHEDULED FOR ADOPTION ON FEBRUARY 4TH IS 432 MILLION.
WE HAVE 43 MILLION SET ASIDE FOR DRAINAGE IMPROVEMENTS.
THERE'S 17 MILLION FOR WHAT WE CALL THE EMERGENCY RESERVES.
35 MILLION FOR INFLATION RESERVES.
THE COST OF LIVING ADJUSTMENT IS ANTICIPATED TO BE 130 MILLION AND THE 2025 BOND PROGRAM AT 360 MILLION.
AND THEN THE 70 MILLION AT THE TOP IS THE ECONOMIC DEVELOPMENT INITIATIVE THAT WE TALKED ABOUT MONDAY IN EXECUTIVE SESSION.
AND THEN THAT LEAVES THAT BLACK PIECE OF $10 MILLION THAT IS AVAILABLE OR IS NOT PROGRAMMED AT THE CURRENT TIME.
THAT COULD BE USED AS RELIEF WITHOUT MESSING UP ANYTHING ELSE ON THIS DIAGRAM.
SO THE NEXT SLIDE I WANTED TO PROVIDE, SO THESE ARE THE THREE, UH, LAST TIME I SHOWED TWO OPTIONS, BUT NOW I HAVE THREE OPTIONS ON JUST DOING THIS WITHOUT IMPACTING ALL THOSE FUTURE PLANS.
THE FIRST OPTION IS DOING EQUAL RELIEF, A 1% INCREASE TO HOMESTEAD WITH A SENIOR EXEMPTION OF 4,000.
THE SECOND IS TO GO ALL IN ON SENIORS.
THAT WOULD BE AN $11,000 INCREASE AND NO RELIEF TO HOMESTEAD.
AND THEN COUNCIL MEMBER HEDRICK HAD ASKED ME A QUESTION ABOUT USING COULD YOU GO UP PER, YOU KNOW, MORE, LESS THAN 1%.
AND IN FACT, UH, GRAND PRAIRIE IS AT 17 AND A HALF, SO YOU CAN ACTUALLY DO HALF INCREMENTS.
SO ANOTHER OPTION THAT IS NOW ON THE TABLE IS A ONE AND A HALF HOMESTEAD WITH NO SENIOR.
IF YOU WANTED TO DO THE OPPOSITE OF THE ALL IN ON SENIORS, YOU COULD GO ALL IN ON HOMESTEAD.
AND AGAIN, THESE ARE JUST THE THREE OPTIONS IF YOU DON'T WANT TO IMPACT ANYTHING ELSE ON THAT DEBT DONUT.
UH, THIS IS THE INFORMATION WE SHARED SATURDAY.
AND YOU CAN SEE ON OPTION ONE WITH A 1% HOMESTEAD AND A $4,000 SENIOR EXEMPTION.
UM, FOR, I'M GONNA, I'M POINTING OUT A $200,000 HOME VALUE.
THERE'D BE ABOUT A $39 DECREASE FOR A SENIOR, WHICH IS ABOUT A 5% REDUCTION FOR THE HOMESTEAD.
A $200,000 HOME BECAUSE IT'S PERCENTAGE BASE WOULD ONLY BE ABOUT A 1% REDUCTION OR $10.
AND THEN YOU CAN SEE HOW THE TAX RATE SH BURDEN SHIFT STARTS OCCURRING WITH THE RENTAL PROPERTIES AND OUR COMMERCIAL PROPERTIES.
UH, AGAIN, ON THE RENTAL PROPERTIES THAT'S, YOU KNOW, THAT'S NON-MATERIAL AMOUNTS, BUT WHEN ON COMMERCIAL PROPERTIES, YOU KNOW THAT IT COULD BE UPWARDS OF $21 PER $1 BILLION OF VALUE.
1 MILLION, $1 MILLION OF VALUE.
I WAS JUST MAKING, I WAS LIKE, WELL, I DON'T KNOW ABOUT, YEAH, THE SECOND OPTION IS THE ALL IN ON HOMESTEAD WITH 11,000 THERE, YOU'RE SEEING A 9% REDUCTION FOR A $200,000 HOME OR $73.
BUT THEN YOU SEE THE TAX RATE SHIFT.
NOW IT STARTS IMPACTING THOSE ON THE HOME SET EXEMPTION.
AGAIN, NOT MATERIAL ABOUT 0.3%, BUT STILL A $4 INCREASE FOR THAT $200,000 HOME.
AND THEN THE RENTAL PROPERTIES AND COMMERCIAL PROPERTIES THE SAME AND THOSE ARE MILLIONS.
AND THEN NOW THE THIRD OPTION, UH, WHICH IS THE ALL IN ON THE HOMESTEAD AT ONE POINT HALF PERCENT, WHICH BENEFITS BOTH SENIORS AND THOSE OVER 65.
UH, AS COREY MENTIONED, YOU KNOW, MOST OF THE TIME WE LOOK AT THESE FROM UH, FINANCIAL ACCOUNTING PERSPECTIVE AS THEY'RE BOTH EXEMPTIONS.
SO, UH, THEY BOTH, BOTH GET THE BENEFIT OF IT, BUT YOU CAN SEE ABOUT A 2% REDUCTION, $18, BUT YOU'RE SPREADING ALSO A $17 DECREASE TO THOSE THAT ARE UNDER 65.
SO IT'S SPREADING IT TO THAT ENTIRE 65% OF OUR, UH, CURRENT SINGLE FAMILY RESIDENTIAL PARCELS.
THIS NEXT SLIDE IS JUST WHAT IF YOU WANTED TO HAVE A MORE OF AN IMPACT FOR SENIORS? SO
[00:35:01]
WHAT IT'S SHOWING IS THE SENIOR EXEMPTION INCREASE.SO WE WENT ALL THE WAY UP TO 11,000 ON THE PREVIOUS WITH NO IMPACT TO THE CIP.
THIS IS GOING TO SHOW WHAT THE SAVINGS ARE FOR A $200,000 HOME AND WHAT THE IMPACT IS TO THOSE UNDER THE AGE OF 65, AS WELL AS THE LOSS, UH, REVENUE TO THE CITY AND THE DEBT SERVICE CAPACITY.
SO AGAIN, REMEMBER ON THE DEBT DONUT WE ALREADY HAVE 10 MILLION AVAILABLE.
THIS IS GONNA BE OVER AND ABOVE THAT.
SO IF WE WERE TO MOVE UP TO A $15,000 EXEMPTION AND MOVE TO 71,000, THAT WOULD BE ABOUT A HUNDRED DOLLARS DECREASE OR 12%.
THE IMPACT TO THOSE UNDER THE AGE OF 65 WOULD SEE ABOUT A $5.
AND OUR DEBT SERVICE FUND WOULD LOSE ABOUT A MILLION DOLLARS AND THAT WOULD REQUIRE A $3.9 MILLION REDUCTION IN THAT DEBT DONUT.
AND YOU CAN SEE HOW IT SLIDES UP.
AND I JUST WANTED TO PROVIDE THAT THIS MOSTLY TO YOU COUNCILWOMAN LUCK TO SHOW IF YOU WANTED TO PROVIDE A LOT OF RELIEF, THIS IS PRETTY MUCH WHAT IT WOULD LOOK LIKE.
AND I DID PUT THE NOTE AT THE BOTTOM THERE IS YOU DON'T HAVE TO TAKE A FULL BITE.
AND ONE THING THAT I WOULD SUGGEST IS THE, THE TAX CEILINGS ARE, UH, DETRIMENTAL BECAUSE YOU CAN'T TURN THEM BACK OFF.
BUT IT DOESN'T MEAN YOU CAN'T HAVE SOME SORT OF ADMINISTRATIVE FUNCTION TO SLIDE SLOWLY INCREASE THESE SENIOR EXEMPTIONS OVER TIME.
AND THAT PROVIDES COUNSEL THE FLEXIBILITY TO IT.
WE'RE IN BAD TIMES, WE CAN'T DO IT RIGHT NOW, MAYBE NEXT YEAR.
BUT, UM, WHY I WANTED TO PUT THAT THERE AND I DON'T HAVE LIKE A FULL ANALYSIS 'CAUSE I WANTED TO GET INPUT FROM ALL OF Y'ALL ON, IF Y'ALL WOULD BE OPEN TO LOOKING AT MAYBE A SCENARIO WHERE IF YOU'RE OVER 5% OF TAXABLE VALUE, YOU GO UP A CERTAIN POINT FOR SENIORS TO REDUCE THEIR TAX BILL.
SO THOSE ARE ALL, THERE'S A MILLION DIFFERENT WAYS TO SKIN THIS CAT.
SO I DIDN'T WANNA TRY TO PUT ALL OF THEM HERE, BUT WANTED TO GET YOUR THOUGHTS AND THEN WE CAN BRING ANALYSIS BACK AND IF YOU HAVE QUESTIONS ABOUT THAT, YOU KNOW, LET KNOW, BECAUSE AGAIN, THE, THE, THE CALCULATION IS HEAVILY MANDATED BY STATE LAW MM-HMM
SO WHILE YOU CAN DO CERTAIN THINGS, UH, CERTAIN THINGS YOU CAN'T.
IT, NEXT THING THOUGH IS JUST A REALLY A WARNING ON IF WE WENT DOWN A PATH OF, UH, INCREMENTALLY GIVING SENIOR EXEMPTIONS OR HOMESTEAD EXEMPTIONS.
UM, I REALLY BELIEVE AT WHERE THE GOOD TIMES ARE OVER.
SO YOU CAN SEE THAT PREVIOUSLY WE HAD A 16.4, 12.7, 11.2, AND RIGHT NOW WE'RE PROJECTING A 4.9% INCREASE.
AND THEN FROM A DEBT SERVICE PERSPECTIVE, WE ARE BEING FAIRLY CONSERVATIVE IN THE OUT YEARS JUST BECAUSE WE, WE WILL HAVE AT THAT POINT INVESTORS IN THE CITY WHO WE OWE MONEY TO AND WE NEED TO ENSURE THAT WE DON'T OVEREXTEND OURSELF.
BUT THAT 4.9% IS, WE'RE FAIRLY CONFIDENT IN THIS ONE AND WE'VE ACTUALLY BEEN A LITTLE LESS CONSERVATIVE THAN WE TYPICALLY HAVE BEEN.
AND I'M GONNA SHOW YOU WHY ON THE NEXT SLIDE.
THIS SLIDE IS A WEIGHTED AVERAGE BY IT BY, WE KIND OF CATEGORIZE THE SQUARE FOOTAGE 'CAUSE WE HAVE A LOT OF HOUSES THAT ARE SMALLER.
WE HAVE SOME HOUSES THAT ARE MID RANGE AND THEN THE LARGE HOUSES.
BUT THIS IS SHOWING A 12 MONTH MOVING AVERAGE OF THE INCREASES TO PROPERTY VALUES.
SO YOU CAN SEE FROM DECEMBER, 2021 TO ROUGHLY MARCH OF 23, WE WERE IN 20% INCREASES IN OUR, UH, PER SQUARE FOOT FOR OUR HOMES BECAUSE MOSTLY BECAUSE OF THE INTEREST RATES GOING UP FOR MORTGAGES IN THE HOUSING MARKET SLOWING DOWN, WE HAVE NOW KIND OF BOTTOMED OUT AND ARE ACTUALLY NEGATIVE ON TWO OF OUR HOUSING CLASSES IN GROWTH.
I'M NOT SAYING THAT PEOPLE'S HOME VALUES ARE GOING NEGATIVE, IT'S THE GROWTH IN THEIR HOME VALUES, WHICH IS WHAT WE'RE CONCERNED ABOUT AS WE MOVE FORWARD IN, UH, BUDGETING FOR ADDITIONAL REVENUE FOR ALL THESE LONG-TERM INITIATIVES WE HAVE.
'CAUSE AGAIN, IT'S A 12 MONTH MOVING AVERAGE.
SO IT'S LOOKING BACK 12 MONTHS, UH, AN ENTIRE YEAR.
AND IT'S SHOWING THE PAST ENTIRE YEAR FOR TWO OF OUR HOUSING CLASSES WERE ROUGHLY NEGATIVE 2%.
AND WE SAW THAT LAST NIGHT THOUGH, UM, WHEN THEY WERE VIRGINITY WAS TALKING ABOUT THE, UH, THE VALUE OF OUR HOMES ACCORDING TO SIZE.
WE ACTUALLY HAD HIGHER VALUATIONS FOR OUR SMALLER HOMES
[00:40:01]
COMPARED TO OTHER CITIES.OUR, IT, IT, IT IS STRANGE WHEN YOU DIG INTO THE DATA THAT HE WAS PRESENTING LAST NIGHT THAT YOU, EVERYONE ALWAYS LOOKS TO THE FIREWALL AREA AS THE, AS THE, THE BEST, YOU KNOW, ACREAGE WE HAVE.
BUT WHEN YOU'RE LOOKING AT IT FROM A PERFORMANCE TO SIMILAR TYPES OF HOUSING, THEY'RE NOT PERFORMING AS WELL AS THE SAME CLASS IN PLANO.
BUT WHEN YOU'RE LOOKING AT OUR SMALL HOUSING STOCK, IT IS WAY OUTPERFORMING THE REST OF THE METROPLEX.
THIS NEXT SLIDE IS, YOU KNOW WHAT, I DON'T KNOW IF IT, MOST OF THIS IS DESIGNED REALLY I THINK FOR THE, UH, BY THE LEGISLATURE TO MAKE IT HARD FOR US TO MAKE DECISIONS.
BUT I WANTED TO OUTLINE THE CURRENT KIND OF WHEN WE GET ADDITIONAL INFORMATION ON VALUES.
SO AGAIN, RIGHT AS OF TODAY WE'RE AT A 4.9% ASSUMPTION ON TAX-BASED GROWTH.
SO THAT MEANS THE NUMBERS THAT I SHOWED YOU ON NO IMPACTS, THAT'S WHAT IT'S BASED OFF OF.
EARLY MARCH, WE TYPICALLY HAVE OUR FIRST, UH, MEETING COREY AND I AND THE CITY MANAGER WITH THE CHIEF APPRAISAL FOR DCA.
AND THE PURPOSE OF THIS MEETING IS TYPICALLY JUST TO GO OVER THEIR BUDGET AND TO TELL COREY HOW MUCH MORE HE HAS TO PAY EACH YEAR TO HAVE, HAVE THEIR SERVICES.
BUT THAT IS USUALLY THE FIRST GLIMPSE TO SEE HOW APPRAISALS ARE GOING.
AND THIS WOULD BE FROM A 30,000 FOOT LEVEL.
UH, THE QUESTION IS TYPICALLY ASKED, WHAT ARE Y'ALL SEEING APPRAISALS IN DALLAS COUNTY RIGHT NOW? AND THEY'LL TYPICALLY SAY 5%, 6%, BUT THEY'LL AT LEAST ALLUDE TO IF THERE'S PROBLEMS. WELL THEY'RE, THEY'RE NOT LOOKING GOOD.
THEY LOOK MAYBE NEGATIVE, BUT IT'S, IT'S REALLY JUST KIND OF A HIGH LEVEL WHERE IS THINGS GOING? BUT IT ALSO HELPS TO SEE IS THAT 4.9? ARE WE CLOSE, UH, ROUGHLY AROUND APRIL 30TH, SOMETIME SOONER WE GET WHAT'S CALLED THE ESTIMATE OF VALUE LETTER.
THIS IS A LITTLE BIT BETTER INFORMATION BUT NOT A LOT MORE THAN WHAT WE GET IN MARCH.
SO THIS WILL BE MORE OF RESIDENTIAL VALUES.
LOOK TO BE LIKE THIS COMMERCIAL VALUES LOOK TO BE LIKE THIS PPP LOOKS TO BE LIKE THIS, BUT NO DETAIL ABOUT HOW MANY PROTESTS OR WHAT'S GOING ON.
BUT IT GIVES US KIND OF THE START STARTING DOLLAR AMOUNT, IF YOU WILL, FOR BEFORE THEY GET INTO PROTEST MARCH.
I MEAN MAY 12TH IS REALLY THE FIRST TIME WE HAVE A, A DECENT PROJECTION ON WHAT THE APPRAISED VALUES WILL BE.
AND ON MAY 12TH WE GET THE FIRST PRELIMINARY ESTIMATE.
SO THIS WILL PROVIDE US THE DE SOME DETAILS ON TIFFS AND THINGS OF THAT NATURE SO WE CAN ACTUALLY GET THE REAL CALCULATION OF HOW THIS IS GOING TO IMPACT EVERYONE.
UM, AND THEN MAY 27TH WHEN WE GET THE SECOND LETTER, UH, THAT IS EVEN MORE REFINED NUMBER.
AND THEN WE START GETTING TO A PROCESS WHERE WE CHECK THIS THING EVERY WEEK FROM ROUGHLY JUNE TO JULY 25TH, WHICH IS THE CERTIFIED VALUES.
BUT AGAIN, JULY 25TH ON THE ACTUAL REAL NUMBER, WE'RE TOO LATE TO MAKE ANY CHANGES.
SO I'M PUTTING THIS IN HERE BECAUSE I KNOW, I FIGURE WE WILL BE BACK WITH ADDITIONAL, UH, SCENARIOS TO SHOW Y'ALL BASED OFF OF WHAT Y'ALL WANNA SEE.
BUT, UH, MY THOUGHT IS WE SHOULD TRY TO TARGET SOMEWHERE AROUND, UH, THE MAY ELECTION ON A APPROVAL OF THIS IF UH, OR FOR Y'ALL TO PRESENT TO THE FULL CITY COUNCIL TO SEE IF THEY WANT TO APPROVAL OF THIS.
JUST TO COINCIDE WITH THE BOND ELECTION.
THAT'S JUST A THOUGHT REALLY WE HAVE ALL THE WAY UP TO THE END OF JUNE.
UM, BUT IT MAKES, WHAT MAKES IT HARD IS MAY 12TH IS WHEN I ACTUALLY KNOW, OKAY, WE'RE IN WITHIN RANGE.
MAYBE WE CAN GO UP ONE MORE PERCENT.
AND SO I KNOW THE QUESTION'S GONNA BE IS WE'RE AT 4.9 RIGHT NOW.
WHAT IF I CHANGE THAT PROJECTION TO 5.9? WHAT DOES THAT MEAN? BASICALLY EACH, EACH PERCENTAGE POINT INCREASE IN OUR TAX BRACE IS ABOUT A MILLION DOLLARS.
SO IF YOU GO BACK TO THE SLIDE OF THE SENIORS, THE OTHER OPTIONS, THAT'S ABOUT THAT 15, YOU COULD GO UP TO THE $15,000 SENIOR EXEMPTION AND THAT 3.9 MILLION REDUCTION THAT I HAVE WOULD GO AWAY.
SO 1% INCREASE ABOVE THAT 4.9 AGAIN IS ANOTHER MILLION DOLLARS OF ADDITIONAL REVENUE TO US.
AND YOU'LL KNOW THAT IN MAY, ABOUT MAY 12TH YOU SAID I WON'T KNOW THE CERTIFIED NUMBER BUT RIGHT.
BUT I, BACK TO THE SQUARE FOOTAGE, THE DATA'S NOT SHOWING FOR US TO BE IN A REAL GOOD SPOT.
BUT I THINK THE BEST THING NOW IS IN MARCH WHEN WE MEET, WE'LL KNOW FROM A HIGH LEVEL COUNTYWIDE
[00:45:01]
WHAT'S GOING ON.BUT THEN IN APRIL, LATE APRIL, WE'LL WE'LL GET THAT LETTER AND WE'LL KNOW, OKAY, THIS LOOKS LIKE MAYBE A SITUATION WHERE WE MIGHT BE ABLE TO INCREASE OR WE NEED TO GO BACK DOWN AND THEN MAY 12TH IT STARTS GETTING A LITTLE MORE CERTAINTY.
MATT, UM, THAT DIFFERENCE BE HELD FOR APPLICATION TO NEXT YEAR.
NO, I MEAN IT WOULD, IT WOULD HAVE TO BE THIS IS FOR THIS NEXT YEAR, YOU KNOW.
YEAH, NO, WELL I MEAN WHAT YOU COULD DO AND THAT'S, THAT GOES BACK TO IF THERE WAS SOME SORT OF POLICY DECISION, IF WE CAN GET TO THAT WHERE IF WE'RE LOOKING AT OUR PROPERTY VALUES EVERY YEAR, BECAUSE YOU WOULD HAVE TO PROBABLY DO THIS IN A YEAR LAG ANYWAY, IF OUR PROPERTY VALUES WENT UP MORE THAN 5%, I'M GONNA USE THE 5%, 5% EACH YEAR.
WE WILL GIVE AN EXTRA $2,000 AND I'M JUST MAKING THIS UP SENIOR EXEMPTION THE NEXT YEAR THAT WOULD FALL INTO PLACE.
'CAUSE WE'LL HAVE THE HARD NUMBERS TO BE ABLE TO DO THAT.
SO IF YOU WANTED TO GET INTO SOME ROLLING THING LIKE THAT, THERE WOULD BE A YEAR LAG.
I REALLY LIKE THE IDEA OF HITTING, I MEAN, I WOULD LOVE TO SEE AN INCREASE THAT'S CLOSE TO THOSE, WELL HIGHER THAN THE AVERAGE THAT'S SHOWN ON THIS, UM, TABLE, BUT CLOSER TO THOSE OF LIKE, UM, RICHARDSON, I, AND MAYBE, WELL THEY'RE JUST SO DIFFERENT.
I DEFINITELY WANNA SEE IT HIGHER FOR BOTH.
I'D LOVE TO SEE SENIORS GET A, A REALLY BIG BREAK AND I'D LOVE TO SEE HOMESTEADERS GET A BIG BREAK.
WELL, I DON'T KNOW THAT WE CAN ACTUALLY DO BOTH.
AND I DON'T KNOW THAT THAT'S REALLY IN, IN OUR, I JUST DON'T SEE THAT AS A FEASIBLE THING TO DO RIGHT NOW.
UM, BUT IF WE CAN DECIDE ON MAYBE ONE SEGMENT OR LIKE THE HOMESTEAD EXEMPTION, LIKE YOU WERE TALKING ABOUT JUST A A BLANKET THING OR THE OVER 65, I'D LIKE TO AT LEAST WHITTLE IT DOWN TO WHAT ARE WE GONNA FOCUS ON? GO AHEAD.
I DON'T THINK RICHARDSON'S A GOOD COMPARISON 'CAUSE THEY DON'T HAVE A HOMESTEAD EXEMPTION AT ALL IF THAT'S, THAT'S WHY THEIR NUMBER IS SO HIGH ON THEIR SENIOR EXEMPTION.
AND THEY ALSO HAVE THE BENEFIT OF A MASSIVE COMMERCIAL EVALUATION.
ONE REASON I WAS AGAINST LAST YEAR WAS INCREASING THE SENIOR EXEMPTION LOAN IS BECAUSE YOU SEE IT DOES SHIFT THE BURDEN TO NON-SENIOR PROPERTIES.
I WOULD LIKE TO SEE, I LIKE THE SPLIT VERSION.
IF WE'RE GOING, YOU KNOW, WE COULD DO BOTH THE SAME TIME.
THAT OPTION BI BELIEVE IT IS, IT HAS THE, YOU GIVE FOUR GRAND TO THE SENIORS, IT BUMPS IT UP TO 60,000 TOTAL.
AND YOU ALSO DO A PERCENTAGE IF THAT'S FEASIBLE.
AND WITHIN OUR DEBT DONUT LIMIT RIGHT AT THE 10%, IT TAKES THAT WHOLE BLACK SLIVER AWAY AT THAT POINT.
AND THEN WHAT, THEN MY QUESTION IS WHAT IS THE RISK IF WE COME IN UNDER THAT FOUR AND A HALF, 4.9% GROWTH, WHERE DO WE MAKE UP THE DIFFERENCE? 'CAUSE WE'LL BY THEN WE MAY HAVE DECIDED ON THIS ALREADY.
WE NEED TO COME UP WITH ANOTHER, TAKE IT FROM SOMEWHERE ELSE THEN.
AND THAT'S, AND THAT'S WHY I WANTED TO SHOW THAT CALENDAR IS THAT AT, AT THIS POINT, AND IF WITH THE WAY HOME VALUES ARE GOING, WAITING TILL LATE APRIL WOULD BE MY SUGGESTION JUST BECAUSE I'LL HAVE BETTER INFORMATION ON WHAT'S GOING ON.
BUT YOU COULD SEE FROM THE DATA THE TRENDS ARE SHOWING THAT WE'RE, AND WE'LL ALSO HAVE A COUPLE MORE MONTHS OF DATA FROM OUR MLS DATA.
BUT THE TRENDS ARE STARTING TO SHOW THAT WE'RE STARTING TO GO BACKWARDS BACK.
YOU KNOW, THE, THE, WE HAD A BIG HUMP OF GROWTH AND NOW IT'S, YOU KNOW, NEGATIVE 2%.
SO IF THAT CONTINUES TO GO ON OR LEVELS OFF, WE'LL KNOW THAT.
AND THEN ALSO FROM TALKING TO DA, WE'LL KNOW THAT WHAT THEIR ANTICIPATION IS BY LOOKING AT THEIR APPRAISALS, UM, AND TO MAKE THAT DECISION BE FEEL MORE COMFORTABLE ABOUT THE PROJECTIONS WE HAVE OF 4.9%.
LAST YEAR WE WERE RUSHING THROUGH IT, TRYING TO GET SENIOR EXEMPTION THROUGH, BUT I, I STILL DON'T LIKE THEM ALONE AND IT'S SHIFTING THE BURDEN TO THE REST OF THE CITY.
I THINK, YOU KNOW, LET'S GIVE, THERE'S A LOT OF FAMILIES THAT NEED IT AS WELL THAT AREN'T SENIORS.
SO I, I WANNA HELP THEM OUT AS WELL.
SO I I'M IN FAVOR OF THE, THE SPLITTING.
WE'LL DO SOME FOR SENIOR IN ADDITION TO THE OTHER, THE 1% FOR HOME FOR INSTEAD.
SO HOMESTEAD AND A SENIOR, IT'S OPTION ONE.
AND I'LL ADD TO, UH, COUNCILMAN HEDRICK THAT THAT'S WHY WE ARE SO CONSERVATIVE IN THE OUT YEARS ON OUR TAX BASE.
SO I MEAN, IF I COME IN TOO LOW ON THE CURRENT YEAR, YOU KNOW, THE OUT YEARS ARE, YOU KNOW, OUR AVERAGE
[00:50:01]
TAX BASED GROWTH AT OH, CLOSE TO 5% A YEAR AND I'M IN AT TWO AND A HALF IN THE OUT YEARS.SO, UM, YOU HAVE SOME BUFFER IN THERE.
SOME BUFFER, BUT I DON'T KNOW IF THAT MAKES YOU FEEL ANY BETTER, BUT IT DOESN'T MAKE ME FEEL BETTER, BUT NEGATIVE, NOT WITH THE NEGATIVE VALUES.
IT DOESN'T MAKE ME FEEL BETTER RIGHT NOW.
UH, YEAH, BUT I, I JUST DON'T LIKE THE SHIFT THAT, THAT'S WHAT BOTHERED ME ABOUT THE LAST YEAR IS THAT WE WERE SHIFTING, THERE'S A LOT OF SINGLE MOTHERS WHO HAVE HOMES AND THEY, YOU KNOW, THEY WOULD SHIFT IT TO THEM.
SO AT THE EXPENSE OF THOSE, I DON'T WANNA DO ONE OVER, YOU KNOW, LET'S DO EVERYONE GIVE EVERYONE SOME TAX RELIEF RATHER THAN TO FOCUS ON A SPECIFIC DEMOGRAPHIC.
WELL, EVEN IF WE DO THE SENIOR AND HOMESTEAD, THAT STILL AFFECTS RENTER RENTAL PROPERTIES AND COMMERCIAL PROPERTIES.
SO IT'S NOT, IT'S NOT BLANKET, IT'S
UM, I MEAN IF YOU'VE GOT A $4 MILLION PIECE OF PROPERTY AT COMMERCIAL AND IT INCREASES YOUR $86, I MEAN, MY COMMENT EARLIER WAS WHEN I WAS WITH MATT, WAS THAT'S PROBABLY A MEETING, BREAKFAST, COFFEE AND DONUTS FOR THAT COMPANY.
SO, I MEAN, IT'S NOT A HUGE ORDEAL.
I KNOW ONE OF THE COMMENTS THAT DID COME UP WAS, WELL, FOR THE SMALLER BUSINESSES, BUT EVEN AT A MILLION DOLLAR VALUE, IT'S ONLY $21 A YEAR.
UM, I DON'T, THAT'S NOT OUTRAGEOUS AMOUNTS THERE.
UM, I QUALIFY FOR BOTH OF THESE.
UH, BUT, UM, AND I DO SEE WHERE A LOT OF OUR SENIORS RIGHT NOW DO LIVE IN THOSE OLDER, SMALLER HOMES.
AND SO $4,000 ADDITIONAL TAX BREAK IS FABULOUS FOR THEM, UM, ON THEIR VALUE.
AND THOSE SENIORS ARE AGING OUT.
SO THEY'RE PASSING AWAY, THEY'RE MOVING INTO RETIREMENT FACILITIES, THEY'RE MOVING INTO ASSISTED LIVING.
SO THEN THOSE HOMES COME BACK ON THE TAX ROLLS AS, AS FULL VALUE AT THAT POINT.
I'VE SEEN THAT A LOT IN MY NEIGHBORHOOD.
UM, YES, EVERYBODY CONTINUES TO GET OLDER, BUT OUR BIG POPULATION THAT WAS HERE IN THE FORTIES AND FIFTIES IS MOVING ON NOW.
SO I AGREE WITH, WITH, I THINK THE, THE SPLIT IS, IS, IS GOOD.
SO WE'LL FOCUS ON OPTION ONE AS, UM, WHAT WE'LL DIVE INTO.
UM, BECAUSE I WOULD LIKE TO SEE THIS INCREASE INCREMENTALLY EVERY SINGLE YEAR.
AND I'D LIKE TO PRESENT COUNSEL WITH A NUMBER AND A PERCENTAGE BY WHAT, WHAT WE WANNA HIT, LIKE SAY BY 2030 AND EVERY YEAR, THIS IS, THIS IS WHAT WE WANT OUR, OUR PERCENTAGE TO BE FOR OVER 65 OR SORRY FOR HOMESTEAD.
AND THEN THIS IS WHAT WE WANT OUR NUMBER TO BE FOR SENIORS AND HOW THAT LOOKS ON THE DEBT DONUT.
YOU KNOW, THAT'S, BUT WE DON'T HAVE TO LIKE, LIKE HE SAID, WE COULD, UM, IT COULD JUST LIKE WITH COLA, IT WAS SOMETHING WE MADE A PRIORITY, RIGHT? MM-HMM
AND IF WE MAKE THAT A PRIORITY AND STAFF KNOWS ABOUT IT EVERY YEAR THOSE VALUATIONS ARE CERTIFIED, IT CAN BE PUT INTO THAT DEBT DONUT AND, AND ALL OF THE THINGS THAT YOU LOOK AT.
AND IF YOU KNOW THAT IT'S A PRIORITY FOR COUNSEL, IT IT WILL, IT WILL BE.
SO, YOU KNOW, I MEAN IT'LL, THEY'LL FIND A WAY TO MAKE IT WORK IN SOME WAY.
IT'S JUST WE YEAH, I AGREE COMPLETELY.
IT'S JUST WHAT WE FOREGO, YOU KNOW, PROJECT WISE, CIP WISE THAT WE'RE NOT GONNA DO THIS YEAR BECAUSE OF THAT.
WELL, IF WE HAVE EXTREMELY NEGATIVE VALUATIONS AND, YOU KNOW, OUR, OUR REVENUE GOES INTO THE TOILET, I MEAN, THEN WE DON'T DO IT THAT YEAR.
SO I'D LIKE TO KNOW WHAT IF WE WERE TO SAY THIS IS OUR GOAL, UM, ARE THERE ANY IMPLICATIONS LEGALLY FOR US FOR THAT? AND WHAT, WHAT DOES SOMETHING LIKE THAT LOOK LIKE FOR COUNSEL TO SET AS A, AS A GUIDELINE FOR FUTURE BUDGETS? I MEAN THE LONG AS THE MECHANICS ARE INVOLVED OF, OF GETTING IT, UH, APPROVED BY JULY 1ST, UM, STATE, FOR COURSE THE STATE STATUTE'S CONCERNED, THAT'S MORE OF AN OPERAT AN INTERNAL OPERATIONAL GOAL FOR THE CITY.
SO IT DOESN'T REALLY CONFLICT.
THE ONLY THING THAT COULD OCCUR IS, REMEMBER WE'RE IN A LEGISLATIVE SESSION NOW AND THERE'S A LOT OF BILLS ALREADY FILED ON HOMESTEAD AND SENIOR THIS IS YOU, THIS IS Y'ALL'S LAST TOOL THAT Y'ALL ACTUALLY CONTROL.
SCHOOL DISTRICTS DON'T HAVE ANY CONTROL
[00:55:01]
OVER IT ANYMORE.SO AGAIN, JUST KNOW THAT THIS COULD BECOME OUT OF OUR CONTROL.
WELL THAT'S, I MEAN, THEN THERE'S NOTHING WE CAN DO ABOUT IT.
SO IT'S NEITHER HERE NOR THERE.
BUT IF, UM, SINCE IT'S NOT YET, I WOULD LIKE TO BE ABLE TO SHARE WITH TAXPAYERS THAT, YOU KNOW, WE HAVE A PLAN AND THIS IS OUR PLAN.
I WOULD, THAT'S WHAT I WOULD LIKE TO PRESENT TO COUNCIL IN ADDITION TO THIS OPTION ONE FOR THIS YEAR.
I JUST WANTED TO CLARIFY A FEW MORE THINGS.
ON THE 4.9% INCREASE, MOST OF THAT IS RELATED TO THE BACKLOG OF WHAT WE CALL CAP LOSS.
SO, UH, YOU HOMESTEAD YOU HAVE A 10% CAP EACH YEAR.
I SHOWED YOU ON THE ONE SLIDE, 16%.
SO THERE'S THIS BACKLOG OF CAP LOSS THAT'S GONNA FLOW THROUGH.
SO THAT'S REALLY HOW THAT 4.9 WAS CALCULATED.
SO I DON'T THINK D AD'S GONNA COME BACK AND SAY YOU HAVE NEGATIVE VALUATIONS THIS YEAR, BUT THAT CAP LOSS WILL EVENTUALLY WORK ITS WAY THROUGH THE SYSTEM AND WITH STAGNANT GROWTH, WE'RE NOT GONNA SEE THESE LARGE INCREASES.
MY COMMENT HERE IS IT'S BEEN FIVE YEARS SINCE WE'VE HAD AN INCREASE.
WE DON'T NEED, WE NEED TO REVIEW THIS AT LEAST EVERY FIVE YEARS.
'CAUSE IT WAS, WHAT, 20 YEARS BEFORE THAT? WE, WE REVIEW IT EVERY YEAR.
BUT I MEAN YEAH, BUT WE NEED SOMETHING TO GET A, WE DON'T NEED TO GO 20 YEARS WITHOUT AN INCREASE AGAIN.
WELL THAT'S WHAT I WAS SAYING.
THAT'S WHY WE NEED TO KIND OF SET GOALS ON A COUNCIL LEVEL AND SAY THIS IS THE PERCENTAGE WE WANNA HIT BY THIS DATE AND THIS IS THE AMOUNT WE WANT TO HIT FOR THE SENIORS BY THIS DATE.
IF WE HAVE A CLEAR GOAL IN MIND, I THINK THAT EVERYONE CAN WORK TOGETHER TO REACH THAT.
EVEN IF IT IS OVER A LONG PERIOD OF TIME.
AND IF THINGS ARE BAD THEN WE CAN SAY WE CAN'T DO IT THIS YEAR.
IT'S JUST REALLY, YOU KNOW, WE'RE ALL HURTING.
SO, AND I, I THINK THAT IF WE ARE ALL IN AGREEANCE THAT THAT IS, YOU KNOW, THAT WE WANNA GET TO THAT POINT, IT'LL BE DIFFICULT TO SAY NO, YOU KNOW, IF THINGS ARE BAD.
BUT WE'LL HAVE THE ABILITY TO IF WE HAVE TO.
AND, AND THAT'S WHY I WAS SUGGESTING ANOTHER ONE TO LOOK AT IT BECAUSE, YOU KNOW, THERE WILL BE A POLITICAL BACKLASH IF YOU SET THE STAGE AND YOU DON'T PERFORM.
YOU KNOW, YOU COULD LOOK AT IF IT BACK TO THE, IF IT'S OVER 5%, IF THE PROPERTY VALUES ARE OVER 5% EACH YEAR, WE'LL GIVE THIS PORTION BACK TO SENIORS IN HOMESTEAD.
ANY OTHER COMMENTS OR QUESTIONS FOR STAFF? ANYTHING FOR COMMITTEE
ARE YOU ALL COMFORTABLE GOING IN THAT DIRECTION FOR OUR NEXT MEETING? YES.
OKAY, SO WE'LL BRING BACK SOME ADDITIONAL ANALYSIS ON THE ASSUMPTION THAT WE ARE GONNA FOCUS ON HOMESTEAD AND SENIORS.
UM, DO Y'ALL HAVE A GOAL OR DO YOU WANT ME TO BRING BACK RECOMMENDATIONS? I WOULD PERSONALLY LIKE TO SEE IT GET UP TO 15 AT SOME POINT 15% AND THEN, UM, THE SENIOR EXEMPTION.
I'M NOT SURE WHERE I WANNA HIT THERE YET.
UM, BUT YEAH, OPTIONS WOULD BE GREAT.
WE'LL SHOW RANGES, UM, ALL IN BETWEEN THERE AS WELL.
THIS IS, I THINK THAT, UM, STARTING THIS EARLIER AND BEING ABLE TO TALK IT OUT
YOU KNOW, I, LAST TIME I THINK WE, WE ONLY SPEND ABOUT TWO MEETINGS ON IT AND IT'S, IT JUST FELT VERY RUSHED.
SO I'M GLAD THAT IT'S, IT'S GETTING DONE SOONER.
SO 15 AND LET'S SAY 80 FOR THE SENIOR.
GIVE YOU SOMETHING TO AT LEAST GOT IT TO SHOOT FOR.
IT'S 10, 10,000 ABOVE THE METROPLEX AVERAGE.
AND THANK YOU VERY MUCH, UH, FOR ALL OF YOUR HARD WORK.
IT'S, IT SHOWS, SO I APPRECIATE.
ALRIGHT, WELL IF THERE ARE NO MORE COMMENTS, I WILL CALL THIS MEETING, UH, AT FIVE FIFTY NINE.
THANK YOU EVERYBODY FOR COMING.