2011 PROPOSED PROPERTY
TAX RATE
Funding the 2011/12 General Fund Budget
Public Hearing – August 9, 2011
2011 Proposed Tax Rate
Overview of Property Taxes
 2011/12 General Fund Budget Overview
 Tax Highlights

Property Tax Overview

Ad Valorem Taxes (in proportion to the value)
 Based
upon the value of your property
 Value is determined by outside agency (Williamson
Central Appraisal District)
 WCAD determines “market value”
 City does not determine value of property
 WCAD does not set the tax rate
Property Tax Overview

City’s property tax rate set by the Council
 Funds
on-going General Fund operations
 Public
safety, library, social services, parks & streets
 Funds
payments on debt for general government (not
utility related) improvements

Calculation: Tax rate x taxable value/$100 = your
City tax levy
Property Tax Overview

Property Tax Exemptions
 Lower
the taxable value of your property
 Do not affect market value
 City may grant to groups of property owners
Property Tax Overview

Exemptions the City currently offers:
 General
Homestead - $5,000
 Over 65 Homestead - $12,000
 Disabled - $40,000
 Disabled veterans (mandatory) – variable

Revenue frozen for Over 65 & Disabled
 “Freezes”
 Adopted
revenue - 1st year of exemption
in 2004 for 2005 Tax Year
2010/11 General Fund Budget

Total General Fund budget =$40M
 2.8%
increase from 2010/11 projected
 Includes
 Includes
$985K 1-time projects
increased Contingency Reserve Funds to $7.1
million
 Includes
90 days operating expenses
 $6.847 million in 2010/11
“Status Quo” Budget

Revenues remain relatively flat
 Slight
increase in sales & property tax
 Development related revenues continue to lag



No operational increases without warranted need
Service levels remain stable
No employee COLA or merit bonus
 Will
review again at Mid-year
 Revenues
greater than anticipated
2011/12 General Fund Increases

Opening Fire Station 5
 12

Firefighters
Add 3 new and fund previously 9 granted funded positions

June 2012
 Station


Fire Training Facility operations
Construct Fire Stations 5 & 2
 New


operations
Station 2 to be located next to existing station
Debt impact of Fire related facilities
Public safety step plan
 Annual
compensation increase for police & fire
2011/12 General Fund Increases

Bookmobile Librarian added
 Grant


funded position Year 1
Increased fuel costs - +$56,183
Increased Health Insurance costs
 Offset
by decrease in retirement contribution
Other Impacts:

Reallocate resources
2
building inspectors temporarily transferred to GUS for CIP
inspections


Reduce Associate Judge costs in Court
“Freeze” additional positions
 Warrant
officer assigned to Municipal Court
 Director of Community Services

17 total positions “frozen” all year
4
additional positions for 6 months
 Municipal
Court Clerk
 Heavy Equipment Operator in Streets
1- Time Funding

Funded with excess funds in General Capital funds
 Interest
earnings
 Remaining bond funds





Repairs to San Gabriel Park restrooms
Repairs to restrooms at Grace Church
Equipping Fire Stations 5 and 2
Review Sanitation/Recycling contract & RFP
Convert email system to Microsoft Exchange
General Fund Revenue Sources
General Fund Revenue Comparison
2011 Tax Highlights
2011 Proposed Tax Rate

Ad Valorem Property Taxes
 Assessed
valuation
 Components
of the Tax Rate
 Effective Tax Rate
 Rollback Rate
 Proposed Tax Rate
 What does the Tax Increase Fund
 Impacts to Homeowner
2011 Assessed Valuation

Certified valuation = $4.318 Billion
 Net
of $35.1M in TIF districts
 Includes $92.5M new/annex property
 Includes $1.256B frozen property
 Equals
29% of total valuation
 8.5% increase in 2011

2010 final taxable value = $4.229 Billion
 2010
frozen value = $1.157 Billion
 Equals
27% of total valuation
Assessed Valuation
Assessed Valuation per Capita
Taxable Value by Property Class
Class of Property
Assessed Value
%
Residential
Single Family
Multi Family
Total Residential
2,857,351,025
68.09%
119,056,293
2.84%
2,976,407,318
Commercial
908,743,400
21.66%
Personal Property, Other
311,033,417
7.41%
4,196,184,135
100%
2011 Certified Assessed Valuation
60% of uncertified under protest value
2011 Total Assessed Valuation
121,964,074
4,318,148,209
2011 Taxable Value by Property Class
Components of the Tax Rate

Operations and Maintenance (O&M)
 GENERAL
 Fire,

FUND
Police, Parks, Library, Streets
Interest and Sinking (I&S)
 TAX
SUPPORTED DEBT PAYMENTS
 Bonds
issued for capital improvements
 Does not include self funded utility and GTEC debt
Effective Tax Rate
The rate necessary to derive the same amount of revenue as
previous year based upon the current year assessed
valuations



Effective rate = $0.36901
Adopted 2010 tax rate = $0.35622
Proposed 2011 tax rate = $0.38750
 Includes
$0.032 sales tax for property tax relief
Rollback Rate

The rollback rate is a calculated maximum rate
allowed by law without voter approval. Calculated:
8% increase in O&M effective rate
+ Current year I&S rate
= ROLLBACK RATE

2011 Rollback Rate = $0.41232
2011 Proposed Tax Rate: $0.38750

5% increase over effective rate
 1.4%
increase in O&M rate
 Equals
 20.7%
$70K in new General Fund Revenues
increase in I & S (debt service)
 $0.026
due to Nov 2011 bonds (2008 authorization)
 $0.005 due to increase in 2011 CO for fire facilities


$94M increase in “Frozen” property = ($100.5K)
revenue loss
Increase in abated property
 Citicorp
abated 100%
Comparison of Rate Components

Operations & Maintenance (General Fund)
2010 = $0.21987
 2011 = $0.22290


Interest & Sinking (Debt Service)
2010 = $0.13635
 2011 = $0.16460


Total Proposed Tax Rate
2010 = $0.35622
 2011 = $.038750


8.7% Actual Tax Rate Increase

Primarily related to debt service
Tax Rate Components
Proposed Property Tax Rate Comparison
(Cities within the Central Texas Area)
$0.80
Taylor (.815340)
Killeen (.7428)
.70
Leander (.67042)
.60
Pflugerville (.5990)
Temple (.5679)
San Marcos (.5302)
Hutto (.50758)
.50
Cedar Park (.49350)
Austin (.46130)
Round Rock (.42321)
.40
Georgetown (.3875)
$0.30
.30
Average Home Values

2011 TAXABLE average value = $184,959
 Taxable
value before exemptions
 1.18% increase over prior year taxable average of
$182,799

2011 MARKET average value = $197,260
 Compared
to 2010 average market of $194,857
Average Home Value
(Taxable Value)
Impacts on Average Homeowner Property Tax Increase

2010 Average Taxable Value = $182,799
 2010

2011 Average Taxable Value = $184,959
 2011

Taxes @ $0.35622 = $651.17
Taxes @ $0.38750 = $716.72
Difference = $65.55 annually
 10%
increase
 Increase
2008 Voter Approved Bonds = $55.49
Tax Rate Adoption

Required public hearings
 August
9
 August 18

Vote on levying 2011 tax rate
 August
23 - First Reading
 September 13 - Second Reading

October 1 - beginning of new fiscal year
QUESTIONS?