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” revenue - 1st year of exemption

Adopted in 2004 for 2005 Tax Year

2010/11 General Fund Budget

Total General Fund budget =$40M 2.8% increase from 2010/11 projected

Includes $985K 1-time projects Includes 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 operations Fire Training Facility operations Construct Fire Stations 5 & 2

New 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 2,857,351,025 68.09%

Multi Family 119,056,293 2.84%

Total Residential 2,976,407,318

Commercial 908,743,400 21.66%

Personal Property, Other 311,033,417 7.41%

2011 Certified Assessed Valuation 4,196,184,135 100%

60% of uncertified under protest value 121,964,074

2011 Total Assessed Valuation 4,318,148,209

2011 Taxable Value by Property Class

Components of the Tax Rate

Operations and Maintenance (O&M) GENERAL FUND

Fire, 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 $70K in new General Fund Revenues 20.7% 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

$0.80 Taylor (.815340)

Killeen (.7428)

.70

Leander (.67042)

Pflugerville (.5990)

Temple (.5679)San Marcos (.5302)

Hutto (.50758) .50

Austin (.46130)

.40

Georgetown (.3875)

$0.30 .30

(Cities within the Central Texas Area)

.60

Round Rock (.42321)

Cedar Park (.49350)

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 Taxes @ $0.35622 = $651.17

2011 Average Taxable Value = $184,959 2011 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?