HomeMy WebLinkAboutMIN 08.28.2012 CC-WThe City Council of the City of Georgetown, Texas, met in Regular Session on the above date with Mayor
George Garver presiding.
Council Present: Council Absent:
Patty Eason, Danny Meigs, Bill Sattler, Tommy Jerry Hammerlun
Gonzalez, Rachael Jonrowe, Troy Hellmann
Staff Present:
Paul E. Brandenburg, City Manager; Bridget Chapman, Acting City Attorney; Jessica Brettle, City
Secretary; Micki Rundell, Chief Financial Officer; Laurie Brewer, Assistant City Manager; Susan Morgan,
Finance Director; Jim Briggs, General Manager of Utilities
Minutes
'• !- t•• �- • a • • • •- ,tai i/ '_
A Public Hearing on the proposed 2012 Property Tax Rate -- Micki Rundell, Chief Financial Officer
Hammerlun absent.
With a Powerpoint Presentation, Rundell provided a brief background and how the staff got to the proposed tax
rate for 2012. She said, six weeks ago, they brought a business plan to the Council called the "City of
Excellence." She said this is a five year business plan. She said the proposed 2012/13 annual budget was
presented to Council in July is that first year of the business plan and lays the ground work for what the City
wants to become. She noted the property tax setting process is a component of that annual process. She
spoke about ad valorem taxes and how they are paid in proportion to the value of the home. She noted they are
based upon the value of the property and determined by an outside agency. She said, however, the City's
property tax rate is set by the Council. She said the general fund includes public safety, library, social service
funding, parks and street maintenance. She spoke about the two elements of the property tax rate, the O&M
rate and the I&S rate. She defined the effective tax rate and noted it is a calculation, based upon new
valuations, that gives the City the exact dollars in revenue as generated in the previous year. She said,
traditionally, when values rise the effective rate goes down. She noted this does not happen in Georgetown
because of the City's frozen property values. She said there is also the rollback rate, which is the one no one
wants to talk about. She said the voters can take the tax rate to an election if the City provide a rate greater than
the rollback rate. She said all of the rules are part of a bigger process called truth in taxation. She said that is a
state law that regulates public hearings and published notices for taxing entities. She said this year the
assessed valuation is over $4.48 billion. She said this includes 7.5% increase in frozen property. She said the
tax rolls were certified. She said the assessed valuation is much better than project and the existing property
increase is less than 1 %. She said there was $94 million in new frozen values. She showed Council a graph
demonstrating the taxable value by property class, She said the proposed tax rate is 41 cents, which funds the
City Manager's proposed budget as well as an extra $420,000 toward the "City of Excellence" plan. She spoke
about the options for uses of the added tax revenue. She said there is opportunities to use that for public safety
vehicles and equipment to pay as you go as well as to fully implement the compensation plan including public
safety. She said even with the increase, the tax rate components have remained fairly consistent. She provided
the Council with a graph showing that Georgetown is the most cost effective place to live in the Central Texas
area. There was much discussion regarding the economy of the Central Texas area. She provided the Council
City Council Meeting Minutes/
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with a proposed tax rate comparison. She spoke about the general fund budget and the financial impacts of the
budget. She provided the Council with a general fund variance from last year to this year. She showed the
Council the general fund revenue sources last year compared to this year. She said there will be a debt issue for
public safety vehicles, facility and downtown park improvements and the second phase of the public safety
facility funding. She noted the total City debt issues should be around $15.5 million for the fiscal year. She
spoke about the 2012112 general fund and spoke about the staffing and operation for Fire Station 5. She spoke
about the compensation plan implementation. She said the $1.1 million included in the budget is to get
everyone up to market for their pay range. She said this plan is expected to impact as many as 371 of 495
employees citywide. She spoke about the planned one time general fund expenses. She listed the General
Capital Projects in the plan including the various downtown projects: parks projects, the design of the parking
garage, the public safety facility construction as well as street maintenance. She provided Council with the
budget and tax rate adoption schedule. Gonzalez said he would like to state again that he does not support the
proposed 41 cent tax rate.
Public Hearing was opened at 4:25 PM
No persons are present to speak.
Public Hearing was closed at 4:26 PM
Meeting recessed to Executive Session under Section 551.071-- 4:27 PM
Meeting returned to Open Session and adjourned -- 6:04 PM
Approved
Mayor Georg arver
City Council Meeting Minutest
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The meeting was adjourned at 06:04 PM.
Aest:
I' 1 .011
Q�tylSecretary Msica Brettle