* This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting. WE ARE. [00:00:03] OKAY. OOPS, . I THINK I'M READY. ALL RIGHT. GOOD AFTERNOON. UM, THIS IS THE ADMINISTRATIVE SERVICES COMMITTEE MEETING. IT IS 5:00 PM ON APRIL 23RD, 2026. UM, I'M SORRY, I I DO APOLOGIZE. I'M HAVING A LITTLE VISION ISSUES TODAY, SO READING IS NOT COMING EASILY. UM, THE FIRST ITEM ON OUR AGENDA IS, UH, CONSIDERED THE MINUTES FROM APPROVAL OF THE MINUTES FROM FEBRUARY 26TH, 2026. UM, MOTION TO APPROVE THE MINUTES. OKAY. UH, AND, UM, I GUESS I'LL SECOND, SO, ALL IN FAVOR? AYE. OKAY, LET ME BACK UP A MINUTE. I'M CHRIS BEARD, UH, CHAIR OF THE ADMINISTRATIVE SERVICES COMMITTEE. I HAVE MAYOR PRO TIM MARGARET, LUCK WITH ME. UH, COUNCIL MEMBER CARISSA DUTTON IS ON HER WAY. SHE'LL BE HERE MOMENTARILY. UM, AND WE HAVE NUMEROUS CITY STAFF MEMBERS WITH US AND I WILL LET THEM ALL INTRODUCE THEMSELVES. UM, PUBLIC COMMENTS, PERSONS WHO WISH TO DES WHO DESIRE TO ADDRESS THE COMMITTEE ON ANY ITEM ON THE AGENDA OR ALLOWED THREE MINUTES TO SPEAK. DO WE HAVE ANY PUBLIC SPEAKERS? NO, MA'AM. OKAY. THANK YOU. AND ITEM NUMBER THREE, ITEMS FOR IN INDIVIDUAL CONSIDERATION OR ANNUAL REVIEW OF THE HOMESTEAD AND SENIOR EXEMPTIONS. AND I'LL TURN THIS OVER TO ALLISON AND COREY. ALRIGHT. ALRIGHT. THANK YOU. THANK YOU. UH, AS YOU MENTIONED, WE ARE AN EMPLOYER ORSHAM TAX ADMINISTRATOR FOR THE CITY, AND WE'RE GONNA TALK A LITTLE BIT ABOUT OVER 65 EXEMPTIONS. UH, PLEASE NOTE WHEN WE ARE HAVING THIS DISCUSSION, UH, THESE OVER 65 EXEMPTIONS ARE ALSO TIED BY STATUTE TO THE DISABLED PERSON'S EXEMPTION. UH, SO FOR ALL INTENT AND PURPOSES, IF THERE'S AN EFFECT ON OVER 65, THAT SAME EFFECT WILL HAPPEN WITH DISABLED ACCOUNTS. OKAY. UH, BUT FOR TODAY'S DISCUSSION, WE'RE JUST GONNA TALK ABOUT OVER 65. UH, THAT'S LOOKING AT OUR, GIMME JUST A SEC. HERE WE GO. OKAY. LOOKING AT OUR OVERVIEW HERE TODAY, WE'RE GONNA TALK OF COURSE ABOUT EXEMPTIONS, PAYMENT OPTIONS. UH, WE'LL DO A LITTLE BIT OF DATA COMPARISON AND THEN WE'LL FINISH OUT WITH, UM, STEPS TWO, IF YOU, IF YOU SHOULD, UH, CHOOSE TO PURSUE AN AMENDMENT OF THE EXEMPTION. UH, LOOKING AT THE EXEMPTION IN ITSELF, IN ORDER FOR AN INDIVIDUAL TO QUALIFY, OF COURSE THEY HAD TO HAVE A SEPARATE STRUCTURE, NOT EXCEEDING 20 ACRES. UH, AS YOU KNOW, SOME PEOPLE MAY HAVE PROPERTY, UH, MAYBE NOT SO MANY GARLAND, BUT, UH, MAYBE MORE THAN 20 ACRES. BUT THAT PORTION, UH, THAT GETS THE EXEMPTION CAN'T EXCEED 20, UM, ONLY IN WHOLE OR PART BY THE APPLICANT. UH, IT MUST BE DESIGNATED OR ADAPTED FOR HUMAN RESIDENCE, UM, OCCUPIED BY THE OWNER AS A PRIMARY RESIDENT. AND THAT'S THE KEY. UM, THE PERSON DOES NOT LOSE THE BENEFIT OF THEIR OVER 65 EXEMPTION SHOULD THEY HAVE TO GO INTO SOME TYPE OF ASSISTED LIVING AS LONG AS THEIR INTENT IS TO RETURN TO THEIR ORIGINAL HOME. SO, UH, SOME PEOPLE ASSUME THAT, YOU KNOW, UM, I, I LEAVE MY HOME, I HAVE TO GO GET CARE FOR A LITTLE WHILE, AND THEY, THEY WILL TAKE MY EXEMPTIONS AWAY. AS LONG AS YOU HAVE SOMEONE WHO CAN CHECK THE MAIL AND RESPOND AND LET THE APPRAISAL DISTRICT KNOW THAT, HEY, I'M NOT GONE, UH, I'M STILL HERE AND THIS IS STILL MY HOMESTEAD, UH, AND I INTEND TO RETURN, UH, THEY CAN MAINTAIN THEIR BENEFITS OF THEIR EXEMPTION. OKAY. THE TAX IS NOT MAN, UM, TAX CODE DOES NOT MAN MANDATE THAT GENERAL HOMESTEAD EXEMPTION FROM MUNICIPALITIES. UM, HOWEVER, UM, THANK YOU. HOWEVER, THE LOCAL EXEMPTION IS AVAILABLE. UH, CITY OF GARLAND HAS APPROVED, UH, HOMESTEAD EXEMPTION AS OF 11% OF THE OVERALL MARKET VALUE. AND IT WAS RECENTLY INCREASED, UH, FROM 10%, AND THEN ALSO, UH, THERE WAS A RECENT INCREASE FROM 56,000 ON YOUR OVER 65 TO $60,000. PLEASE NOTE THAT THE CITY OF GARLAND DOES NOT PROVIDE A CEILING FOR THE OVER 65 EXEMPTION. IT IS A FLAT RATE EXEMPTION, UH, WHICH MEANS THAT IF THE VALUE OF A PROPERTY, UH, GOES UP, THEN YOUR TAXES WILL GO UP. TALK A LITTLE BIT ABOUT YOUR OPTIONS, PAYMENT OPTIONS IF YOU HAVE AN OVER 65 UH, EXEMPTION. UH, THE EXEMPTION IN ITSELF HAS CERTAIN STATUTES THAT ALLOW FOR PROTECTIONS AND ADDITIONAL PAYMENT OPTION, ONE OF WHICH IS AN INSTALLMENT PAYMENT PLAN. [00:05:01] UH, WE COMMONLY CALL THE QUARTER PAY PLAN. UH, BASICALLY THE PROPERTY OWNER, INSTEAD OF HAVING TO PAY ALL OF THEIR PROPERTIES BY JANUARY 31ST, THEY'RE ALLOWED TO BREAK THAT PAYMENT UP INTO FOUR EQUAL PARTS AS LONG AS THEY'VE MADE THE FIRST PAYMENT BY JANUARY 31ST, THE SECOND BY MARCH 31ST, THEN MAY 31ST, AND THEN JULY 31ST. UH, AS LONG AS THEY MAKE THOSE DATES, THEN THERE IS NO ADDITIONAL PENALTIES. UM, AND THEY CAN PAY IT ALL OFF EARLY IF THEY LIKE. UM, AND IN THE EVENT THAT THEY, THEY STUMBLE DURING THE PROCESS, ONLY A THE PORTION OR THE QUARTER THAT'S DELINQUENT WILL ACCRUE PENALTIES. SO ALL AROUND, IT'S A WAY TO, UH, PROTECT AND PROVIDE THOSE PROPERTY OWNERS SOME, UH, PROTECTION AND, AND, AND OPTIONS WITH THEIR PAYMENTS. THE OTHER, UH, IF YOU LOOK HERE AT THIS NEXT CHART, UM, AND YOU CAN SEE KIND OF SOME OF THE TRENDING NOW WITH QUARTER PAY PARTICIPANTS. UM, WE IN GARLAND, IF YOU WERE QUARTER PAY IN THE PRIOR YEAR AND YOU SUCCESSFULLY WENT THROUGH THE PROCESS, WE AUTOMATICALLY ENROLL YOU THE NEXT YEAR. WE SEND YOU THE DOCUMENTS SO YOU KNOW THAT IT'S COMING. UM, BASICALLY A PACKET. IT, IT, THE CODE REQUIRES THAT THEY WRITE A LETTER, UH, WE SIMPLY PROVIDE A LETTER FOR THEM AND THEY JUST NEED TO SIGN IT AND SEND IT IN WITH THEIR FIRST PAYMENT. UM, AND SO WHEN YOU LOOK AT THAT, YOU CAN SEE THAT WE, IN 2024, WE KIND OF TRENDED UP WITH SOME TRANSACTIONS. WE DID FIND THAT THERE WERE QUITE A FEW ACCOUNTS THAT WERE PARTICIPATING, UH, OR SIGNING UP FOR QUARTER PAY, BUT THEY WOULD PAY IT ALL OFF, UH, THE FIRST PAYMENT OR BEFORE IT EVER GOT PASSED JANUARY. UH, THINK TIM LUCK HAS A QUESTION. I'M SORRY. GO AHEAD. THAT'S OKAY. WHAT ARE THE ENROLLMENT QUALIFICATIONS FOR THAT QUARTER PAY PROGRAM? UH, JUST YOU HAVE TO BE THE HOMEOWNER AND HAVE AN OVER 65 EXEMPTION. OKAY, THANK YOU. YEAH. OR QUALIFY FOR THAT EXEMPTION. THERE MAY BE A OWNER WHO, UM, YOU LOOK AT THE ACCOUNT, THEY DON'T HAVE THE ACTUAL EXEMPTION ON THERE, BUT IT'S, THEY, MAYBE IT'S THEIR HOMESTEAD, AND, BUT IF THEY CAN, YOU CAN SEE THAT THEY'RE OVER 65, THEY QUALIFY FOR OVER SIX FIVE, AND THEY, WE CAN, WE CAN SIGN THEM UP EVEN THOUGH THAT EXEMPTION DOESN'T SHOW ON THE RECORD AS LONG AS THEY'RE GOING TO PURSUE IT. THAT WAY, THEY DON'T MISS THE OPPORTUNITY TO GET THEIR PAYMENT. I SEE. MM-HMM . OKAY. THE NEXT PAYMENT OPTION, UH, OR PROTECTION IS MORE FOR HARDSHIP. UH, AND, AND, AND TO PROTECT THOSE OVER 65 PROPERTY OWNERS WHEN THEY ARE IN A POSITION THAT THEY SIMPLY CAN'T MAKE PAYMENT. UH, AS WE KNOW, THE PROPERTIES TAX CODE CAN BE VERY PUNITIVE FOR OWNERS WHO CAN'T MAKE THEIR PAYMENT ON TIME. UM, AND SO THIS MECHANISMS CALLED TAX DEFERRAL COMING FROM CODE 33 0 6 OF THE TAX TAX CODE. UH, THIS OPTION ALLOWS THE PROPERTY OWNERS TO, AS IT'S TITLED, DEFER THEIR TAXES, PENALTIES AND COLLECTION FEES ARE FROZEN AT THE TIME OF APPROVAL. UH, ONCE DEFERRED, ALL LEGAL ACTION IS DISMISSED OR PRO PROHIBITED. UH, ALL, UH, ACCOUNT RECEIVES 5% ANNUAL INTEREST ON A DELINQUENT BALANCE. AND, UH, THE PROPERTY OWNERS ARE ALLOWED TO PAY AT THEIR OWN PACE. SO IS THEY'RE NOT ON A SCHEDULE TO MAKE, UH, PAYMENT. IF THEY CAN'T MAKE THE PAYMENT, THAT'S OKAY. THE TAXES ARE STILL DUE, THEY'RE STILL PAYABLE, BUT THERE WON'T BE ANY COLLECTION ACTIVITY ON THAT ACCOUNT. UM, AND SO AS LONG AS THEY OWN THAT PROPERTY AS A HOMEOWNER, AS THE HOMESTEADED OWNER, THEY, THEY WILL GET THE BENEFIT OF THIS TAX DEFERRAL. HOW LONG ARE THEY ALLOWED TO STAY ON THAT PROGRAM? AS LONG AS THEY OWN THE PROPERTY, AS THEIR HOMESTEADED PROPERTY, YEAH. THE MOMENT THAT THEY'RE NO LONGER THE OWNER OF THAT PROPERTY, WHOEVER PURCHASES THAT PROPERTY WILL, WILL BE RESPONSIBLE TO PAY ALL THOSE TAXES. UM, THEY HAVE, UH, ROUGHLY 180 DAYS, I BELIEVE, TO GET THAT PAYMENT IN. I DID A LITTLE CHART HERE SHOWING SOME OF THE ACTIVITY ON TAX DEFERRALS, UH, FROM YEAR TO YEAR. UM, AS YOU CAN SEE, WE'VE HAD KIND OF A DECREASE IN THE DEFERRALS, AND I'M SURE THAT'S RELATED TO THE ACTIVITY OF, OF NEW INVESTORS IN THE AREA. UM, BUT THAT, THAT ACCOUNT MOST YEARS STAYS PRETTY, PRETTY STEADY. NEXT CHART IS A COMPARISON OF OVER 65 EXEMPTION THROUGHOUT DALLAS COUNTY. AS YOU SEE THE CHART THAT'S KIND OF COLOR CODED. UM, THE CITIES THERE WITH THE PURPLE, UH, THEY DO NOT CARRY A CEILING, UH, AS, AS WITH THE CITY OF GARLAND, UH, THOSE CITIES WITH GREEN, THEY DO CARRY A CEILING. UH, AND THEN IN GARLANDS, THEY'RE IN THE MIDDLE. UH, SO JUST [00:10:01] KIND OF A PICTURE TO SHOW YOU WHERE WE SIT WHEN IT COMES TO THE OTHER CITIES IN THE AREA. ANY QUESTIONS? YES, MA'AM. CAN YOU CLARIFY WHEN YOU SAY CEILING, EXACTLY WHAT THAT REFERS TO? OKAY. OKAY. SO TAX CEILING. SO WHEN YOU HAVE YOUR EXEMPTION, UH, YOU GET A PERCENTAGE OF YOUR TAXABLE OR YOUR, YOUR MARKET VALUE OFF OR YOUR HOMESTEAD, THEN YOUR OVER 65 IS A FLAT RIGHT FLAT RATE REDUCTION OF YOUR MARKET VALUE. AND HERE IN GARLAND, THAT'S $60,000 FLAT RATE REDUCTION, WHICH A CEILING IS, IT IS A, UM, SUPPLEMENTAL MECHANISM OF THE OVER 65 EXEMPTION. UH, IF THE ENTITY PARTICIPATES IN A CEILING, ONCE THAT PERSON GETS THAT EXEMPTION, EITHER THEIR FIRST OR SECOND YEAR SETS THE CEILING, WHICHEVER YEAR HAS THE LOWEST LEVY, THAT WILL BE THAT PERSON'S CEILING, MEANING THEN SUBSEQUENT YEARS, SHOULD THE VALUE OF THAT PROPERTY GO UP, UH, THEY WILL, THEY WILL STILL PAY BASED OFF THAT CEILING AMOUNT OF THOSE FIRST, UH, FIRST YEAR. THANK YOU. YES, MA'AM. OKAY. UH, NEXT PROP. NEXT SLIDE SHOWS A, UM, BREAKDOWN OR VALUE COMPARISON, UH, WITH SOME OF THE NEIGHBORING OR COMPETITIVE CITIES. AS YOU CAN SEE, WHEN WE LOOK AT GARLAND, WE, WE HAVE ABOUT 4.9%, UH, RESIDENTIAL VALUE LOSS DUE TO OVER 65 ACCOUNTS. AND WE HOLD PRETTY STEADY RIGHT AROUND 15,000, UH, RESIDENTIAL ACCOUNTS THAT FALL UNDER OVER 65. THIS NEXT SLIDE GIVES US KIND OF A BREAKDOWN OF, OF YEAR OVER 65 EXEMPTION LEVY COMPARISON. AND IT'S BASED OFF OF THE AVERAGE TAXABLE VALUE, I'M SORRY, THE AVERAGE HOME VALUE IN, IN EACH AREA. UM, AND THAT CALCULATION IS SPECIFICALLY FOR FIRST, FIRST YEAR, UH, QUALIFIERS. AS YOU SAY, SOME OF THE ENTITIES MAY PARTICIPATE IN THE CEILING, SO THEREFORE THE NUMBERS MAY SKEW DEPEND UPON THAT HISTORY QUESTIONS. ALRIGHT. ALRIGHT. SO LAST SECTION HERE TALKS ABOUT AMENDING THE EXEMPTION. SHOULD COUNSEL, UH, FIND INTEREST AND AMENDED AMENDING THE EXEMPTION, UH, IT MUST BE APPROVED BY JULY 1ST. THE GOVERNMENT BODY MAY ALSO CALL AN ELECTION PETITION AT LEAST 20% OF THE ELECTORAL ELECTORATE, WHICH PARTICIPATE IN THE, IN THE PRECEDING ELECTION. CHANGES TO THE EXEMPTION MUST AMOUNT OR MUST RESULT IN EXEMPTION AMOUNT OF AT LEAST $3,000 IN VALUE. AND IF THIS, IF THE, UM, GOVERNMENT BODY DECIDES TO CREATE A CEILING OF THE OVER 65 EXEMPTION, UM, PLEASE UNDERSTAND THAT IT CAN NEVER BE REMOVED ONCE IT'S CREATED. OKAY. AND IF THAT, IF Y'ALL DON'T HAVE ANY QUESTIONS, THAT WILL WRAP ME UP. I'M GOING TO PASS IT OVER TO MS. ALLISON. OKAY, ALLISON, NOW YOU TELL US WHETHER OR NOT WE CAN AFFORD TO DO ANY CHANGES. DO THAT. GOOD AFTERNOON. I'M ALLISON STEADMAN. I'M THE CHIEF FINANCIAL OFFICER, AND I'M HERE TO WALK THROUGH SOME HOMESTEAD AND SENIOR EXEMPTION, UM, PROPOSALS FOR THE COMMITTEE TO DISCUSS AND PROVIDE FEEDBACK TO STAFF ON, AS WELL AS JUST INFORMATION ABOUT, UM, SOME OF THE OTHER ACTIVITIES WE HAVE GOING ON THIS YEAR THAT WILL IMPACT OUR 2026 TAX BASE, OUR 2026 TAX RATE AND THE FY 27 BUDGET PROCESS. SO BEGINNING OFF, UM, AND SOME OF THIS REITERATES WHAT COREY HAD, JUST WANTED TO PUT IT INTO A SUMMARY SLIDE UP THE TOP. UM, WE HAVE A, UH, 11% HOMESTEAD EXEMPTION. THIS HAS BEEN, UH, CHANGED IN 2021. IN 2025, UM, 65% OF OUR RESIDENTIAL HOMES QUALIFY FOR THIS EXEMPTION. UM, AND FOR THE CURRENT FISCAL YEAR, UM, THAT HOMESTEAD EXEMPTION RESULTED IN ABOUT $9 MILLION IN FOREGONE REVENUE TO HOMES BENEFITING FOR HAVING THAT EXEMPTED OFF THEIR PRO, UH, THEIR, UH, TAX VALUE. UM, AS COREY SAID, JULY 1ST IS THE FIRST, IS THE DEADLINE TO MAKE CHANGES TO THE HOMESTEAD EXEMPTION, AND THIS WILL REQUIRE A SPECIAL MEETING NOTICE, UM, ADJUSTMENTS TO THE HOMESTEAD EXEMPTION IMPACT THE CITY'S DEBT SERVICE CAPACITY, BUT DOES NOT MATERIALLY IMPACT THE GENERAL FUND UNDER THE SB TWO CALCULATION. UM, ANY CHANGES OR INCREASE TO THE [00:15:01] HOMESTEAD EXEMPTION OR THE SENIOR EXEMPTION, UM, REALLY DID SHIFTED TO NON-EXEMPT PROPERTIES. SO THAT WOULD BE YOUR COMMERCIAL PROPERTIES OR YOUR RENTAL PROPERTIES THAT DO NOT QUALIFY FOR THOSE EXEMPTIONS, BUT IT DOES IMPACT THE DEBT SERVICE FUND AND YOUR LONG-TERM DEBT CAPACITY SUMMARY OF OUR SENIOR EXEMPTION, UH, SET AT 60,000 FLAT DOLLAR AMOUNT, NOT A PERCENTAGE, UM, AGAIN, WAS MODIFIED IN 2021 AND 2025. AS COREY SAID, YOU MUST BE 65 OR OLDER. UM, WE HAVE 26% OF OUR RESIDENTIAL HOMES, UH, QUALIFYING FOR THIS AND IT FOR FY 26, IT RESULTED IN ABOUT 6.4 MILLION IN FOREGONE REVENUE. UM, AND AGAIN, SIMILAR TO THE HOMESTEAD, UM, HAS A JULY 1ST DEADLINE TO MAKE ANY MODIFICATIONS, UM, AND IMPACTS THE DEBT SERVICE SIDE OF THE EQUATION BECAUSE LIKE THE HOMESTEAD EXEMPTION ON THE GENERAL FUND, UM, IT JUST SHIFTS THAT TAX BURDEN TO, UH, PROPERTIES THAT DO NOT QUALIFY FOR THE EXEMPTION. DOING A COMPARISON, UH, KIND OF EXPANDED, UH, CORY HAS EVERYONE IN DALLAS COUNTY. UM, WHAT I'VE DONE IS I'VE ADDED IN SOME OF OUR OTHER COMPARISON CITIES. WE, WE DO THROUGH THE BUDGET PROCESS. AND JUST TO PROVIDE AN UPDATE SINCE THE COMMITTEE REVIEWED THIS LAST YEAR OF ANYONE THAT MODIFIED THEIR SENIOR OR HOMESTEAD EXEMPTION FROM THE PRIOR, UM, WE WERE NOT THE ONLY CITY THAT MADE CHANGES TO THAT LAST YEAR. UM, WE ADDED $4,000 ON THE SENIOR EXEMPTION AND A PERCENT ON OUR HOMESTEAD EXEMPTION. SEVERAL OTHER CITIES, UM, MADE INCREASES TO THEIR SENIOR EXEMPTION. UM, NOTED HERE IN THIS THIRD COLUMN. UM, AND THEN ONLY ONE OTHER CITY IN THE METROPLEX MADE A CHANGE TO THEIR HOMESTEAD EXEMPTION OVER THE PRIOR YEAR, MAJORITY OF THE CITIES IN THE METROPLEX MAINTAINED THEIR EXISTING LEVEL OF EXEMPTIONS. AND, AND PLEASE STOP ME IF YOU HAVE A QUESTION. I'M GONNA JUST GONNA KEEP, KEEP MOVING THROUGH. YOU WANNA NOTE FOR THE RECORD MM-HMM . OUR SENIOR AND HOMESTEAD EXEMPTIONS ARE EQUAL TO THAT OF PLANO. YES. I BELIEVE THEY'RE, YES, THEY'RE NO, THEY, THEY HAVE 40,000 FOR THEIR SENIOR EXEMPTION AND 20% FOR THEIR HOMESTEAD. RIGHT. AND WE HAVE 60,000, SO WE'RE, WE'RE HIGHER ON THE SENIOR, SENIOR EXEMPTION AND LOWER ON THE HOME HOMESTEAD PLAN. YES. AND PLANO HAS THE CEILING, WHICH THANK YOU FOR MATT WATSON, OUR ASSISTANT CITY MANAGER CALLING OUT THE POINT I FORGOT TO MENTION, WHICH IS THE CITIES WITH AN ASTERISK ON THIS CHART, UM, ALSO HAVE A TAX CEILING. SO THE, IT'LL NEVER BE ABOVE 40,000 BECAUSE THERE, THE, THE CEILING ESSENTIALLY FREEZES THAT VALUE FOR WHEN THAT STARTS. THERE IS LESS OF A NEED TO INCREASE THAT EXEMPTION. BUT YEAH, WE'RE PRETTY, I MEAN, THE ONES THAT HAVE THE REALLY HIGH SENIOR EXEMPTION DON'T HAVE A HOMESTEAD EXEMPTION AT ALL. MM-HMM . SO WE SERVE A LARGER PERCENTAGE OF OUR RESIDENTS WITH SOME SORT OF TAX EXEMPTION, AND THAT'S CORRECT. OKAY. UM, WHEN YOU LOOK AT THIS GRAPH, YOU'LL SEE THAT THERE ARE CITIES THAT FOCUS MORE ON, UH, REALLY BENEFITING THEIR SENIOR POPULATION THROUGH EITHER HAVING A TAX CEILING OR HAVING A REALLY ROBUST SENIOR EXEMPTION. OFTENTIMES THEY HAVE LESS OF A HOMESTEAD EXEMPTION. UM, SO THAT WAY IT BALANCES OUT IN THEIR OVERALL TAX REVENUE AND THEIR SB TWO CALCULATIONS. UM, AND THE DEBT SERVICE CAPACITY, UH, OR YOU'LL SEE CITIES HAVING A MORE ROBUST HOMESTEAD EXEMPTION, WHICH BENEFITS MORE OF THEIR POPULATION. UM, AND A LESSER SENIOR EXEMPTION. THE SENIOR EXEMPTION, UH, BENEFITS RESIDENTS ON A FIXED INCOME BECAUSE IT IS A FLAT DOLLAR AMOUNT. UM, IT HAS MORE OF A IMPACT IN REDUCING THE TOTAL VALUE OR THE TOTAL AMOUNT THEY'RE PAYING IN THEIR TAX. THE HOMESTEAD EXEMPTION DOES DECREASE THAT, BUT IT'S A PERCENTAGE BASIS. SO IT, IT, THE HIGHER YOUR HOME VALUE IS, THE MORE BENEFIT YOU RECEIVE. WHEREAS IF YOU HAVE A LOWER HOME VALUE IN OUR, IN OUR CITY, UM, THE SENIOR EXEMPTION GIVES YOU A GREATER REDUCTION IN THAT THAN THE PERCENTAGE WOULD. AND THIS MIGHT BE MORE, UM, SUITED FOR THE CITY MANAGER. BUT WOULD YOU THINK THAT IT'S FAIR TO SAY THAT THE CITIES THAT HAVE A HIGHER SENIOR EXEMPTION ARE ALSO NOT CITIES THAT ARE BUILT OUT? SO THEY'RE STILL ABLE TO HAVE MORE NEW BUILD THAN SAY WE ARE. [00:20:03] I HAVE TO, I HAVE TO LOOK INTO THAT COMMERCIAL, YES. THE BURDEN OF THEIR TAX RATE SIDE AND NOT ON RESIDENTIAL SIDE. SO THEY'RE ABLE TO INCREASE THAT WITHOUT DROPPING THEIR REVENUE. THESE CITIES ARE MOSTLY 50. OKAY. ALLISON, I JUST WANNA GET A CLARIFICATION. OKAY, SO WE'VE GOT OUR TAX BILL AND DO WE TAKE THE 11% OFF FIRST AND THEN SUBTRACT THE 60,000 OR DO WE SUBTRACT THE 60,000 AND THEN TAKE THE 11% OFF OF HOW DOES THAT, HOW DO THEY CALCULATE THE, WHAT DO THEY CALCULATE? THE 11% OFF THE TOTAL TAXABLE VALUE OR THE TOTAL TAXABLE VALUE MINUS THE 60%, 60,000. SO THE, THE CODE WANTS TO MAKE SURE THAT THE, THE PROPERTY OWNER GETS THE BIGGEST BENEFIT. SO THE, UH, INSTRUCTION IS TO USE THE PERCENTAGE OFF FIRST. OKAY. AND THEN YOU COME BACK AND YOU TAKE THE FLAT RATE EXEMPTION, APPLY IT TO THE ACCOUNT. ALL RIGHT. THANK YOU. I'VE JUST BEEN ASKED THAT QUESTION. I THOUGHT I WOULD GET A CLARIFICATION WHILE WE WERE HERE. THANK YOU. ALL RIGHT, KEEP GOING. AND I MAY ANSWER. SO LOOKING AT THE MARKET VALUE COMPARED TO THE METROPLEX CITIES, UM, THE CITY OF GARLAND HAS INCREASED OVER THE YEARS, PRIMARILY DUE TO WHAT WE'RE CALLING THE TAR TARRAN APPRAISAL DISTRICT EFFECT, UM, FOR 2025, UM, IS YOU SEE THIS GRAND PRAIRIE, FORT WORTH AND ARLINGTON, THEY USED TO BE HIGHER THAN THE CITY OF GARLAND ON THIS CHART. THE APPRAISAL DISTRICT EFFECTIVELY CAPPED HOW MUCH THEY COULD INCREASE THEIR, UH, YOU KNOW, APPRAISAL ROLES BEFORE SB TWO EVEN WENT INTO EFFECT. AND SO THE APPRAISAL DISTRICT SAYING, WE'RE ONLY INCREASING YOUR CERTIFIED TAXABLE VALUES BY THIS MUCH EFFECTIVELY CAPPING BEFORE ANY OF THE TRUTH AND TAXATION PROCESS CAPS THEIR REVENUES AS WELL. SO THEY'RE CAPPING THE GROWTH IN THAT MARKET AND TAXABLE VALUE, UM, AND IN ORDER TO PROVIDE ADDITIONAL TAX RELIEF, UM, FROM THE COUNTY LEVEL. UM, SO THIS HAS MOVED GARLAND UP IN THIS CHAT CHART, BUT, UH, PLEASE NOTE THAT WE ARE STILL WELL BELOW THE, UH, METROPLEX AVERAGE AND SOME OF THE CITIES ON THE PREVIOUS GRAPH THAT WE COMPARE AGAINST, UM, UH, ARE THAT ARE OUR NEIGHBORS HAVE MUCH HIGHER MARKET VALUES. AND ULTIMATELY ON THIS NEXT SLIDE, TAXABLE VALUE AND A TAXABLE VALUE PER CAPITA COMPARED TO THE CITY OF GARLAND. SO THE BETTER, THE STRONGER YOUR TAX BASE IS, THE EASIER IT IS TO HAVE, UH, HIGHER SENIOR EXEMPTIONS, HIGHER HOMESTEAD EXEMPTIONS WITHOUT IMPACTING YOUR CORE REVENUE TO PROVIDE CORE SERVICES. SO, UH, LOOKING AT OUR TAXABLE VALUE PER CAPITA, YOU'LL SEE WE ARE WELL BELOW THE METROPLEX AVERAGE. UM, AND WE DROP BELOW GRAND PRAIRIE ON THIS GRAPH, UM, WITH 112,000, UH, UH, PER CAPITA COMPARED TO THE 1 52. AND HOW THAT REALLY STACKS UP IS LOOKING AT THE METROPLEX COMPARISON OF OUR PROPERTY TAX REVENUE, IS THAT WE ARE WELL BELOW ON JUST FOR PROPERTY TAXES, DOES NOT INCLUDE ANY SALES TAX. UM, WELL BELOW THOSE METROPLEX CITIES IN TERMS OF OUR PROPERTY TAX PER CAPITA, UH, THEN THOSE OTHER CITIES WE'RE COMPARING AGAINST. UM, AND IF GARLAND WERE JUST THE AVERAGE CITY ON THIS GRAPH, THAT WOULD GENERATE AN ADDITIONAL ABOUT 59 MILLION IN PROPERTY TAX REVENUE ANYTIME THE CITY COUNCIL, UM, DISCUSSES, UH, CHANGING ANY OF OUR EXEMPTIONS WITH SINCE SB TWO. UM, IT DOES REDUCE OUR LONG-TERM DEBT CAPACITY, UM, ON THE DEBT SERVICE SIDE. SO WE WANTED TO TALK ABOUT, UH, OUR OUT OUTWARD LOOKING PROJECTIONS IN TERMS OF PROPERTY TAX-BASED GROWTH AND WHAT THAT IMPACT COULD BE TO THE DEBT SERVICE, UM, SHOULD WE WANT TO MOVE FORWARD WITH ANY RECOMMENDATIONS. SO WHAT YOU SEE ON THIS GRAPH IS THE TAX BASE GROWTH THAT'S HAPPENED HISTORICALLY UP THROUGH FY 26 AND THE ASSUMPTIONS WE'VE USED THROUGH THE CIP PROCESS AND MODELING OUT, UH, THE DEBT SERVICE ASSOCIATED WITH OUR CAPITAL PROJECTS, UM, THROUGH THE CIP, OUR CAPITAL IMPROVEMENT PROGRAM. AS, AS YOU ALL RECALL, WE HAVE OUR, THE FINALIZATION IN THE LAST COUPLE YEARS OF OUR 2019 BOND PROGRAM WITH MAJOR CAPITAL PROJECTS COMING TO COMPLETION [00:25:01] OVER THE NEXT COUPLE YEARS, AS WELL AS THE INITIATION OF OUR 2025 BOND PROGRAM WITH A MAJOR INVESTMENT IN OUR STREET INFRASTRUCTURE THROUGH THAT. AND SO ALL OF THAT CAPACITY HAS BEEN SCHEDULED OUT AND WE ARE PROJECTING OUT OUR TAX-BASED GROWTH IN ORDER TO SUPPORT, UM, THE DEBT SERVICES ASSOCIATED WITH THOSE BOND PROGRAMS IN ORDER. AND WHEN WE'RE LOOKING AT THAT, BECAUSE IT'S A DEBT SERVICE OBLIGATION THAT THE CITY WILL HAVE TO FUND, WE ARE CONSERVATIVE IN THOSE ASSUMPTIONS. AND SO WHAT YOU'LL SEE HERE IS LOOKING AT FY 27, UH, WE WERE USING A 3.9% INCREASE, UM, WHICH IS BELOW, UH, THE 20 YEAR AVERAGE OF ABOUT 5.4%. UM, THAT, THAT 20 YEAR AVERAGE HAS BEEN SKEWED BASED ON REALLY THREE YEARS FROM 2021 TO 2023, WE HAD THE, WHAT IS THE POST PANDEMIC BOOM AND A BOOM IN, UH, RESIDENTIAL PROPERTY VALUES. UM, SO THAT REALLY TOOK OUR AVERAGE UP FROM WHAT WAS HISTORICALLY PRIOR TO THAT PERIOD, A 4.2% AVERAGE TAX-BASED GROWTH ALL THE WAY UP TO THAT 5.4%. SO IT DRASTICALLY SHIFTED, UM, THAT 20 YEAR AVERAGE UP. WE HAVE RECEIVED OUR FIRST VERY PRELIMINARY ESTIMATE FROM DC AD, THE APPRAISAL DISTRICT AND COLIN CAD, OUR, OUR APPRAISAL DISTRICTS. THE APPRAISAL DISTRICTS THEMSELVES WILL TELL YOU, DO NOT USE THIS LETTER FOR ANY OF YOUR BUDGET PROJECTIONS BECAUSE THEY ARE SO EARLY IN THE PROCESS. THEY HAVEN'T FLOWN, UH, YOU KNOW, PUSH THROUGH A LOT OF THEIR REAPPRAISALS OR ANY OF THE DISPUTE INFORMATION. SO TAKE THIS WITH A MASSIVE GRAIN OF SALT IN THAT, LOOKING AT THAT LETTER AND THE OUTCOMES OF THOSE LETTERS AND OUR HISTORIC CHANGE FROM THE POINT OF WHEN WE'VE RECEIVED THIS LETTER IN THE PAST TO OUR ULTIMATE CERTIFIED VALUES, UM, IT'S A CONSERVATIVE, VERY PRELIMINARY OUTLOOK OF ABOUT 5.7%, BUT THAT IS NOT SOMETHING TO START MAKING MAJOR DECISIONS OFF OF. UH, WE WILL, AND I BELIEVE I HAVE IT ON MY, NO, I HAVE IT IN A COUPLE SLIDES, BUT WE'LL BE RECEIVING BETTER ESTIMATES AS WE GO THROUGH THE MONTH OF MAY. THAT WILL REFINE AS WE GET INTO JUNE. AND I'LL GO OVER THE FULL CALENDAR IN A, IN A COUPLE SLIDES. UM, BUT IT IS LOOKING, THE EARLY INDICATIONS FROM THE APPRAISAL DISTRICT IS THAT FY 27, THE 2026 TAX BASE WILL BE VERY SIMILAR TO WHAT YOU SEE IN FY 26. UM, WE'RE MONITORING LOCAL INDICATORS THAT MAY INDICATE THAT OUR RESIDENTIAL MAY NOT PERFORM AS WELL AS IT DID FOR OUR 2025 TAX BASE JUST BASED ON WHAT WE'RE SEEING IN THE MLS DATA. UM, BUT IT'S, IT'S TOO EARLY TO TELL IF THAT WILL BE CAPTURED IN THIS YEAR'S APPRAISAL EFFORTS AND REAPPRAISAL OR IF THAT MAY BE LAGGED A YEAR. AND WE'LL STILL HAVE, UM, SOME AMOUNT OF THAT, UH, UNCAPTURED VALUE FLOWING THROUGH FOR THIS UPCOMING YEAR. VERY TECHNICAL. DOES THAT MAKE SENSE? LOOKING AT OUR PROPERTY TAX RATE. UM, SO AS THIS COMMITTEE IS AWARE, UM, SB TWO WENT INTO EFFECT RIGHT AFTER, UM, WE ADOPTED A SIX AND A HALF CENT INCREASE TO IMPLEMENT OUR 20 20 19 BOND PROGRAM. SO WE EFFECTIVELY, UH, INCREASED THE DEBT SERVICE SIDE OF OUR TAX RATE RIGHT BEFORE SB TWO WENT INTO EFFECT. SB TWO UH, FOCUSES ON THE O AND M TAX RATE, WHICH IS HOW WE FUND OUR GENERAL FUND AND DAILY OPERATIONS. SINCE THAT WENT INTO EFFECT, UH, WE HAVE LOST, UH, ALMOST 11 CENTS OFF OUR O AND M TAX RATE, UM, EQUATING TO ABOUT 30 MILLION OF FOREGONE REVENUE. UM, WHICH GETS YOU TO, TO THE CURRENT EFFECTIVE TAX RATE OF 0.6897 WITH YOUR M AND O TAX RATE OF 0.2886. THE CITY COUNCIL HAS DISCUSSED EARLIER, UH, THIS SPRING AND WE'LL BE CONTINUING TO DISCUSS THIS SUMMER THROUGH THE BUDGET PROCESS, THE, UM, PROPOSAL TO REBALANCE OUR TAX RATE, UH, FOR AND TAKING THIS TO THE VOTERS IN A NOVEMBER ELECTION. THIS WILL BE CONTEMPLATED ALONGSIDE THE FY 27 BUDGET PROCESS. UM, THAT WILL REALLY KICK OFF IN JUNE WITH THE COUNCIL'S TYPICAL BUDGET RETREAT. UM, THE BUDGET PRESENT, THE BUDGET WILL BE PRESENTED IN JULY, AND THEN CITY COUNCIL WILL WILL MAKE THAT OFFICIAL DETERMINATION IN AUGUST. UM, THE CURRENT, UH, WORKING DIRECTION IS THAT WE ARE PREPARING FOR, UM, TAKING THIS PROPOSAL OR PREPARING TO TAKE THIS PROPOSAL TO THE VOTERS IN NOVEMBER OF 2026 TO REBALANCE OUR TAX RATE, REDUCE OUR DEBT SERVICE RATE. LET [00:30:01] ME PUT AN ASTERISK ON THAT AND COME BACK TO IT. UM, AND REDUCE THE TAX BURDEN FOR OUR CITIZENS ALL AT THE SAME TIME. SO BY REDUCING THAT DEBT SERVICE RATE, THAT WOULD EFFECTIVELY STILL REDUCE OUR RATE. IT WOULD NOT REDUCE OUR RATE AS MUCH AS IF S WE JUST LET SB TWO WORK. UM, BUT WE ARE STILL PROVIDING SOME FORM OF TAX RELIEF BY NOT, YOU KNOW, MAINTAINING OUR DEBT SERVICE RATE OR, UH, WE'RE, WE'RE WORKING TO ACTIVELY REDUCE THAT. THE TIME WE WERE REPAIRING THE 2026 CIP WHAT WE DISCUSSED BACK IN JANUARY, UM, WE WERE MODELING TO BRING OUR TAX RATE ON THE DEBT SERVICE SIDE BACK TO THE PRE 2019 BOND LEVELS. AND SO THAT IS THE TRUE THIS TAX RATE SHIFT, IF YOU WILL. THAT'S WHERE THAT THREE CENSUS COMING FROM TO UNDER THAT INITIAL PROPOSAL AT THAT TIME WAS TO KEEP THE TAX RATE THE SAME LEVEL AND SHIFT THOSE 3 CENTS ROUGHLY 3 CENTS OVER. UM, FOLLOWING DISCUSSION WITH THE CITY COUNCIL IN JANUARY. UM, AND SUBSEQUENT MEETINGS, UM, WE BELIEVE THERE IS INTEREST IN DOING A DROP OF THAT DEBT SERVICE RATE. AND SO WHERE WE'RE AT IN THE PROCESS IS WE'RE WORKING ON THAT ANALYSIS, BUT THE WHERE I WOULD, MY RECOMMENDATION WOULD BE TO HAVE BETTER ESTIMATES FROM THE APPRAISAL DISTRICTS ON EXACTLY WHAT THAT PROPERTY TAX BASED GROWTH WILL BE BEFORE WE MAKE THAT EXACT DETERMINATION OF HOW MUCH WE WILL DROP. BECAUSE I DON'T WANT TO GET AHEAD OF OURSELVES AND COME UP WITH A DROP AMOUNT AND THEN INADVERTENTLY PUT US IN A POSITION TO WHERE WE'RE HAVING TO MAKE DECISIONS ON OUR CAPITAL PROJECTS OR DEBT SERVICE CAPACITY. I WANT THAT IF WE CAN, TO THE EXTENT WE CAN CONTROL IT, ALIGN THOSE DECISIONS. SO THE COUNCIL IS MAKING THAT DETERMINATION WITH AS MUCH INFORMATION AS WE CAN, GIVEN THAT THE TIMING ALLOWS THAT WE'RE NOT PROPOSING TO DROP OUR DEBT SERVICE RATE MORE THAN WE HAVE INCREASED DEBT SERVICE CAPACITY BASED ON OUR TAX BASE. DOES THAT MAKE SENSE? THAT BRINGS US TO THE CALENDAR EVENTS. SO WE HAVE OUR ESTIMATED LETTER, WE'RE HAVING THIS MEETING, UM, TO JUST TALK ABOUT WHERE WE'RE AT IN THE PROCESS. MAY 11TH WILL BE THE FIRST ESTIMATED VALUE WE'RE REPORT WE RECEIVE FROM THE, UH, APPRAISAL DISTRICTS WILL RECEIVE THAT SECOND ONE AROUND MAY 26TH. UM, THROUGHOUT THE MONTH OF JUNE, UH, WE'LL START TO SEE, UM, THE APPRAISAL REVIEW BOARD MEET AND WORKING THROUGH THEIR PROCESS. WE'LL SEE ADDITIONAL, UM, UPDATES IN THEIR, UH, ELECTRONIC SYSTEM, UM, TO THOSE ESTIMATED VALUES. UM, AND THEN WE HAVE A CITY COUNCIL SPECIAL WORK SESSION ON JUNE 6TH, UM, WHERE WE WILL BE BRINGING FORWARD THE INFORMATION WE'VE RECEIVED FROM THE TWO PRELIMINARY ESTIMATED VALUE REPORTS AND PROVIDING AND SEEKING SOME PRELIMINARY DIRECTION FROM THE CITY COUNCIL ON WHAT THAT DROP AMOUNT COULD BE AND STAFF RECOMMENDATIONS RELATED TO THAT FOR THE COUNCIL'S DISCUSSION AND DIRECTION. UM, WITH THE GOAL TO, UH, PRESENT THE FY 27 PROPOSED BUDGET WITH THAT INFORMATION INCORPORATED, UM, BY JULY 6TH. AND THEN WE WILL RECEIVE CERTIFIED VALUES, UM, ON JULY 24TH BECAUSE WE ARE CONTEMPLATING TO GO TO THE VOTERS FOR THE TAX RATE ELECTION. WE HAVE TO START OUR BUDGET PROCESS A MONTH EARLIER. SO THE CITY COUNCIL WILL ACTUALLY CONSIDER AND DISCUSS A PROPOSED BUDGET THAT IS DEVELOPED BASED ON ESTIMATED VALUES FOR APPROXIMATELY A MONTH. AND THEN SHOULD THOSE CERTIFIED VALUES CHANGE ANY OF THAT INFORMATION OR THE RECOMMENDATIONS WITHIN THOSE PROPOSED BUDGET, UM, WE'LL DO SOME SPECIAL WORK SESSIONS FROM THE VERY END OF JULY THROUGH MID-AUGUST TO CONTEMPLATE ANY OF THOSE ADJUSTMENTS. SO SANDWICH WITHIN THE MIDDLE OF ALL OF THOSE ACTIVITIES IS OUR JULY 1ST, UM, DEADLINE SHOULD WE WISH TO MAKE A CHANGE. SO WITH THAT INFORMATION, UM, I HAVE SOME BASIC, UM, SCENARIOS UP HERE JUST BASED ON THE ACTIVITIES, UH, OR THE CHANGES WE IMPLEMENTED LAST YEAR, JUST WHAT THAT IMPACT IS TO THE RESIDENT. UM, I WOULD ASK IF THIS IS SOMETHING THE COMMITTEE'S INTERESTED IN PURSUING OR, OR WORKING ON A RECOMMENDATION FOR THIS YEAR THAT UM, WE GET SOME PRELIMINARY, UH, DIRECTION FROM YOU TODAY, WORK ON SOME FULL FLEDGED ANALYSIS ALONGSIDE THOSE ESTIMATED VALUE REPORTS AND BE, AND HOPEFULLY HAVE THE TIME TO COME BACK TO THIS COMMITTEE WITH SOME ADDITIONAL INFORMATION. [00:35:01] UM, 'CAUSE AS, AS I MENTIONED EARLIER IN TERMS OF THE IMPACT TO THE DEBT SERVICE CAPACITY, WE'LL HAVE BETTER INFORMATION FOR YOU ALL IN TERMS OF THE ESTIMATE OF ANY CHANGE TO THOSE EXEMPTIONS, UM, IN THE FULL IMPACT ON THE CIP AS WE ALSO HAVE BETTER INFORMATION REGARDING OUR TAX BASED GROWTH AND HOW MUCH OF THAT GROWTH MAY BE NEEDED TO, UH, BE USED TO COME UP WITH THAT DROP AMOUNT FOR THE DEBT SERVICE TAX RATE. AND THEN FINALLY, UM, BASED ON DIRECT IN ANY RECOMMENDATIONS OR UH, IDEAS YOU HAVE TODAY THAT YOU WOULD LIKE US TO RESEARCH, WE CAN ALSO, UH, BRING BACK, UM, THE FULL ANALYSIS ON ANY SHIFT OF THE TAX BURDEN INTO COMMERCIAL RENTER PROPERTIES BASED ON ANY EXEMPTION SCENARIOS YOU ALL ARE INTERESTED IN PURSUING. OKAY. I THINK WE'VE GOT SOME QUESTIONS. MM-HMM . UM, MARGARET? YEAH, I WOULD LIKE TO SEE THE PROPERTY TAX EXEMPTION CONSIDERATIONS FOR ONE, TWO AND $3,000 FOR THE, UM, WELL, I GUESS YEAH, FOR THE SENIOR OVER 65 OKAY. EXEMPTION, CHRIS? SO I AM PERSONALLY NOT IN FAVOR OF MAKING ANY ADJUSTMENTS THIS YEAR, UM, SIMPLY BECAUSE OF OUR CURRENT FINANCIAL SITUATION. I WOULD LIKE TO, I THINK IT WOULD BE MOST BENEFICIAL TO US JUST TO KIND OF SIT ON IT AND SEE HOW NOVEMBER GOES. UM, I WOULD HATE TO DO SOMETHING THAT WOULD PUT US IN A SITUATION WHERE WE KIND OF STICK IT TO OURSELVES IN A WAY. UM, ESPECIALLY CONSIDERING WE, WE JUST MADE AN, AN ADJUSTMENT LAST YEAR AND THEN BEFORE THAT WAS 2021, SO IT WAS A SOLID FOUR YEARS BETWEEN, YOU KNOW, MAKING AN ADJUSTMENT. SO, UM, I THINK THAT WE'RE PRETTY MIDDLE GROUND FROM SURROUNDING CITIES, ESPECIALLY GIVEN OUR, OUR TAX TAX BASE. SO, UM, I I, I WOULD FEEL ABSOLUTELY BEST JUST NOT TOUCHING IT THIS YEAR, SEE WHAT HAPPENS IN NOVEMBER, UM, AND JUST REALLY JUST TRYING TO SEE HOW IT PLAYS OUT SO THAT WE DON'T PUT OURSELVES ACCIDENTALLY SOMEWHERE THAT WE DON'T WANT TO BE. UM, I WILL AGREE WITH COUNCIL MEMBER DUTTON AS SOME IS THE ONLY PERSON IN THIS ROOM THAT ACTUALLY QUALIFIES FOR BOTH OF THESE EXEMPTIONS. UM, IT'S A WONDERFUL, I MEAN, THEY'RE, THEY'RE WONDERFUL TO HAVE. BUT YEAH, WE, WE WENT FOR YEARS WITHOUT AN INCREASE AND THEN LAST YEAR BASED TWO YEARS AGO, I PERSONALLY VOTED AGAINST THE INCREASE BECAUSE WE DID NOT HAVE THE FUNDS TO COVER IT. IT REQUIRED CUTTING SOMETHING ELSE TO FUND THOSE INCREASES AND I DIDN'T WANT US TO CUT SERVICES IN ANY SHAPE, FORM, OR FASHION. UM, LAST YEAR WE GOT A NICE HEALTHY INCREASE IN BOTH OF THOSE. UM, YES, 1% DOESN'T SEEM LIKE A WHOLE LOT, BUT WHEN YOU'RE TALKING OVER, YOU KNOW, ABOUT $250,000, ONE PERCENT'S A NICE LITTLE CHUNK OF MONEY. UM, SO NOW, SO I AGREE WITH THAT. I, WE'VE GOT TOO MUCH GOING ON. UM, WE'RE, OUR BUDGET IS VERY, VERY TIGHT. WE'RE HOPING TO GET THIS ELECTION APPROVED IN NOVEMBER THAT WOULD PUT US IN A BETTER SITUATION AND WOULD NOT PUT US AT RISK OF UM, GETTING OURSELVES INTO HAVING TO CUT ANY SERVICES SOMEWHERE ELSE ALONG THE LINE TO MEET THAT OBLIGATION. SO, UM, THAT'S MY OPINION. UM, I KNOW THIS IS A FULL COUNCIL DECISION AND WHEN THIS COMES UP FOR FULL VOTE, I WILL NOT BE ON COUNCIL ANYMORE. SO, UM, ALTHOUGH THAT'S MY OPINION, IT DOESN'T TECHNICALLY COUNT AT THIS MOMENT. SO , UM, BUT IF WE COULD GET THOSE ESTIMATES JUST SO THAT THE FULL COUNCIL COULD SEE THEM, I THINK THAT WOULD BE A GOOD IDEA BECAUSE AGAIN, THIS IS A FULL COUNCIL DECISION AND NOT JUST THIS COMMITTEE, BUT I WOULD AGREE THAT IT WOULD PROBABLY BE IN THE BEST INTEREST OF EVERYONE INVOLVED TO JUST WAIT ANOTHER YEAR. IF WE DO INCREASE EVERY OTHER YEAR, I THINK THAT WOULD BE GREAT. LET'S MAKE SURE WE HAVE THE FUNDS TO COVER IT. THANK YOU. ANYTHING ELSE MADAM CHAIR? IF I MAY, JUST SO I UNDERSTAND, UH, WE'RE GOING TO REPORT OUT TO COUNCIL, UH, AT A WORK SESSION AND WE'RE GOING TO TAKE ESTIMATES BASED ON, UH, INCREASING THE SENIOR EXEMPTION ONE, TWO, OR 3000. WE'RE NOT COMING BACK TO TO COMMITTEE FOR THAT OR DO WE WANT TO COME BACK TO COMMITTEE FOR, [00:40:01] I DON'T THINK WE NEED TO COME BACK TO COMMITTEE FOR THAT. I THINK THAT WOULD BE FINE TO REPORT TO COUNSEL LIKE THAT. I APPRECIATE THAT CLARIFICATION. THANK YOU. OKAY. IS THERE ANYTHING ELSE FOR THIS COMMITTEE? ALRIGHT THEN AT FIVE 40 WE ARE ADJOURNED. THANK YOU FOR. * This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting.