HomeMy WebLinkAboutMIN 04.27.2021 CC-WMeeting Minutes of the
Governing Body of the
City of Georgetown, Texas
Tuesday, April 27, 2021
The Georgetown City Council will meet on Tuesday, April 27, 2021 at 2:00 PM at Teleconference.
The City of Georgetown is committed to compliance with the Americans with Disabilities Act
(ADA). If you require assistance in participating at a public meeting due to a disability, as defined
under the ADA, reasonable assistance, adaptations, or accommodations will be provided upon
request. Please contact the City Secretary's Office, at least three (3) days prior to the scheduled
meeting date, at (512) 930-3652 or City Hall at 808 Martin Luther King Jr. Street, Georgetown, TX
78626 for additional information; TTY users route through Relay Texas at 711.
Mayor Schroeder called the meeting to order at 2:01 p.m. The following Council Members were
in attendance: Mayor Josh Schroeder; Mary Calixtro, Council Member District 1; Shawn Hood,
Council Member District 2; Mike Triggs, Council Member District 3; Steve Fought, Council
Member District 4; Kevin Pitts, Council Member District 5; Rachael Jonrowe, Council Member
District 6; and Tommy Gonzalez, Council Member District 7. All Council Members were present
via videoconferencing and a roll call was performed.
Policy Development/Review Workshop - Call to order at 2:00 PM
A. Overview, discussion and direction from City Council regarding the possible creation of an
Extraterritorial Jurisdiction (ETJ) Municipal Utility District (MUD) for the proposed Avery
Bost Development -- Wayne Reed, Assistant City Manager
Reed presented the item and reviewed the Avery Bost Land Use Plan, MUD Policy, current
service area, features of quality development within the MUD Policy, and features of
extraordinary benefits within the MUD Policy. Mayor Schroeder and Reed discussed
parkland ownership. Reed resumed the presentation and reviewed the following aspects of
the MUD Policy: enhanced public service and safety; being City exclusive provider; and the
Finance Plan. He provided the following bond information: maximum amount of bonds to
be issued totals $120,000,000; maximum bond maturity equals 25 years; bond issuance period
equals 10 years; refunding bonds will have no deviation from the policy; district only tax rate
(maximum) equals $0.95/$100 in assessed value; and that the Master Developer has agreed to
design, construct, and install an estimated $14 million of off -site wastewater infrastructure, at
no cost to the City and to promote City's long-term wastewater solution for the southeast
quadrant of the City's ETJ. Reed added that Staff supports an Strategic Partnership
Agreement (SPA) annexing the entire MUD for limited purposes, the limited purposes being
imposition and collection of sales tax, where the proposal is to: MUD would receive 20% of
the City's 1% general sales tax but none of the other 1 cent of dedicated sales and use taxes;
and the City will get 80% of the City's 1% general sales and use tax, and 100% of all other sales
and use taxes. He then provided The City of Georgetown U Sales Tax break down and that
the project is fiscally responsible while provided the following estimated Sales Tax scenarios
1— 3 tat assume commercial absorption over 20 years with a Strategic Partnership Agreement
with an ETJ MUD as follows:
ESTIMATE
City0fGeorget0svn Avery Bost MUD - DR Horton
SCENARIO
City's Revenue: 90% of the City's 1%general sales and
use tax
City's Revenue: 100% of "all other" sales and use taxes
Ilisted below]
Sales Tax Revenue )1%) - less .125% property tax relief
Sales Tax Revenue - Property Tax Relief (.125%)
Street Tax Revenue (25%)
GTEC Revenue (.5%)
GEDCO Revenue (.125%)
Total Sales Tax Revenue Generated
kenwio i
$3,029,339.60
$3,786,675
Stenarfo 2
$1,947,432.20
$2,511,570
$2,434,290
Sceuario3
$1,514,669.76
$1,993,337
S5W,954
$347,756
5270,477
$961,695
$618,233
W,848
$1,923,390
$1,236,465
$961,695
$480,848
$309,116
$240,424
$6,154.848-80 $3,956,689.00 $3,077,424.80
[NOTE: Scenario 1 includes 170,400 sq ft of neighborhood commercial with construction
starting in year 5 and buildout by year 101
Gonzalez and Reed discussed triggers for amenities and predicting factors for development.
Reed stated that staff is seeking Council's feedback and direction on a request for creation of
a new ETJ Municipal Utility District (MUD), Avery Bost, to negotiate agreement and a
corresponding Land Use Plan as follows: does Council support an ETJ MUD (roughly 420
acres) under terms as presented; if Council supports an ETJ MUD, does Council support an
SPA to impose and collect the City's sales tax in an ETJ development with sales tax revenue
to be divided between the City and the Developer on terms approved by City Council (e.g.,
80% City/20% Developer); and does Council have comments on the proposed Land Use Plan?
He added that should Council direct staff to proceed with an ETJ MUD, the next steps would
include initiating negotiations with Avery Bost MUD.
There was then a presentation by Adib Khoury with DR Horton. Mr. Khoury reviewed
statistics about DR Horton as a business; how the Austin area is one of the top 5 markets for
real estate and DR Horton is the top builder in the area; a list of DR Horton Georgetown
communities; how a majority of closings were in the southeast portion of Georgetown; how
DR Horton is running out of lots to continue building; and the need for an ETJ MUD.
General discussion among Council, staff, and developer related to the need to construct
amenities and commercial development; how market dynamics drive commercial; the
number of expected phases to build out the development, sales tax benefit to the City;
infrastructure and related costs; who will develop the commercial portion of the
development; build out of different housing types; the possibility of a GISD school in the
development, and possibility of trails and parks in the development. Fought, Gonzalez, and
Hood voiced support of the project overall.
Reed reviewed the direction received by Council related to commercial and working with the
parks department.
B. Presentation, update and discussion regarding amendments to the Shadow Canyon MUD
(a.k.a. Williamson County Municipal Utility District #34 or WCMUD #34) Amended Consent
Agreement and water services agreement -- Wayne Reed, Assistant City Manager
Reed presented the item and reviewed: the project location and general description; update
on build -out status; South San Gabriel River Trail Corridor; requested consent agreement
amendments; and developer agreement on community benefits. He added that staff is
seeking Council's feedback and direction on the following amendments to the 2016 Consent
Agreement and Water Services Agreement: increase bond amount limit from $19.9 million to
$26 million; address traffic signalization at River Terrace Drive and SH 29 intersection;
address architectural and masonry requirements to be same as PUD Ordinance; accelerate
construction of San Gabriel River Trail; and replace Water Service Agreement replacing
expired CTSUD-era agreement. Reed noted that the next steps if City Council supports the
proposed amendments are: to begin drafting amendments to the current Consent Agreement
and a new Water Service Agreement as described in presentation consistent with Council
direction; public notice and hearings as required; and council consideration of Consent
Agreement Amendment and related Water Services Agreement.
Derek Pampe, developer, reviewed the reasons for request; increased costs; how the
developer is committed to going above and beyond; that the development will be adding a
traffic signal; additional bonding capacity will allow development along the river and provide
dates; and that the amenities center will be built and serve as the trail head that can be
accessed by public.
Hood asked about the architectural and masonry requirements that are currently being used
that are above and beyond. Reed responded that the developer wanted those in the consent
agreement due to changes in state law.
Council had no additional questions
Mayor Schroeder noted that Council is in favor of moving forward as proposed.
C. Presentation and discussion regarding short term rentals and potential regulation -- Michaela
Dollar, Economic Development Director; Jackson Daly, Community Services Director; and
Cari Miller, Tourism & CVB Manager
Dollar began the presentation and reviewed what constitutes a short term rental (STR) and
reviewed STR market. Miller presented the current tracking of STRs. Daly presented the
City's current ability to regulate STRs using the City's noise ordinance and occupancy limits.
Dollar resumed the presentation and reviewed: areas of focus; regulation of short term rentals
including low (Fredericksburg) and medium (San Antonio) similarities with examples;
additional regulations used in San Antonio; tracking software program; and proposed public
engagement including a survey and possible public hearing. She stated that staff had the
following questions for Council: does Council have an interest in continuing research into
regulation and a draft policy; if so, does a low, medium, or hybrid policy stand out; and what
comments/concerns does Council have.
Discussion between Fought and staff about the driving force for this subject; if the STRs are
location in one specific area of town; and if the issue can just be addressed through the noise
ordinance.
Discussion between Calixtro and staff regarding: Calixtro's desire to do a survey; comments
Calixtro has received from constituents about this; impact to neighbors of STRs; all
departments involved in the process; and how the City is missing out on tax revenue
associated with STRs.
Mayor Schroeder asked if leasing back a home to buy/seller of a home would trigger this type
of situation. Dollar responded no, as it would not be done through a booking site.
Discussion between Hood and staff regarding: how frequent violators of noise ordinance are
not related to STR; no known issues related to houses being viewed as "party" houses; if the
City would need to increase City staff by following one of these models; and Hood not
wanting to saddle the Planning Department with another burden.
Discussion between Pitts and staff regarding: how staff would handle existing STRs; when
the implementation of overseeing existing would happen; if HOAs be able to outlaw STRs;
how the City is missing out on approximately $90,000 in HOT tax and associated staff cost to
collect those funds; how the collection could be automated by software; how Pitts feels this is
a solution looking for a problem; how Pitts feels that the only real problem is money being
left on the table; and that Pitts is in favor of moving forward with the current method.
Jonrowe provided the following points: some points of this process will depend on the area
of town; has used AirBNB herself, not looking to shutdown the industry; folks in Old Town
are feeling impacts of this; at least do the survey to allow all of Council to see result; citizens
have also expressed fear of oversaturation and how it can effect the neighborhoods; also heard
concerns about market pressures; safety concerns; implementation of regulation could
provide a level playing field; more concerned about absentee owners; and she asked that
Council at least support the use of a survey.
Discussion between Triggs and staff regarding: if staff has had any input from local hotels
and how it could affect their business; how staff could address hotels via a survey; and how
the City has no legal liability if someone is running a business out of a home that is not up to
code.
Gonzalez provided the following points: he is not sure if there is a big enough issue at this
time; survey may be useful to providing more information; the City needs to be careful not to
over regulate; let owners do what they want with their properties; and the possibly to revisit
this issue in the future.
Hood asked if staff could show Council on a map how the City is affected by STRs and that
he would like to go past COVID to see how things look in the future.
Jonrowe asked about the scope of proposed survey and if it would include those that operate
STRs. Dollar responded that there is more development potentially coming in and interest,
but she was not sure if operators specifically asked for this.
Mayor Schroeder noted that overall Council needs more information and asked that staff
provide a list of current properties and then Council can reconsider in the future.
D. Presentation by Williamson Central Appraisal District (WCAD) Chief Appraiser Alvin
Lankford regarding growth trends in assessed value and an overview of the WCAD budget
and services provided -- Leigh Wallace, Finance Director
Wallace introduced Langford. Langford presented the item and noted that the Appraisal
District is governed by the State, and Texas State Law provides for the establishment of
appraisal districts within each county; the appraisal district is responsible for appraising
property in the district for each taxing unit that imposes ad valorem (property) taxes on
property within the district; and the appraisal district is a political subdivision of the State of
Texas. He continued that all appraisals are done at 100% of Market Value as of January 1 of
the tax year and values are audited by the State Comptroller for compliance. Langford
continued that if values fall out of range local schools can lose state funding. He then reviewe
what is new at WCAD; market dashboard with property owner dashboard; the change
detection sketch validation capabilities and following results of those:
2021 Change Finder Results
Appraiser Hours Spent
237
x) Approximate Salary Per Hour
$ 24.98
(=) Subtotal Appraiser Cost
Change Finder Service Cost
5 59,352
$ 66,280
Total Project Cost
$ 125 633
Total Value Added
$ 37,510,917
x Average Tax Rate
$2.50 Per $100.00
'Total Taxes Gained Year 1
5 937,773
Total Cost to District
$ 125,633
Total Taxes Gained Year 1
$ 937,773
ROI
746%
Langford reviewed how WCAD is graded; what others are saying about the market;
December 2020 statistics; Texas A&M Real Estate Center data; City of Georgetown Appraisal
Data 2021 and the following illustration:
Lankford noted that the median values for 2021 are $323,450 for Williamson County and
$304,759 for City of Georgetown and provided the followin :
raging soMM a
2020
Residential
Home eouni
2020
hWdrindal
►lame Ayerage
VAkM
2020
ReUdential
RGme Ave qw
Taxable Value
11
MIN
Raidw bl
HM CMM
201
Residomial
Horne Average
Value
ATarkdl VoMe
%Diff"ace
2020- 202T
M2
Realderlrial
Nome Averva
Taxabk Vakre
Tarable Value
%Oilie+ence
2020.208T
CITY OF CEDAR PARK IWn67myonCounty PortimOnly)
19,149
8324,0%
S3t1,863
19.410
5385,M
1883%
5354,189
1357%
CITY OFGEORGETOWN
22,170
S2%1,054
Sr1,rM
23,991
$340,788
1749%
S306.979
12.95%
CITY OFHUTTO
8302
5220.466
5208,612
9,082
5263.427
19.49%
$240,%8
1532%
CITY OFLEANDER(wil wnsanCaunLyPmdonOnly)
14910
$282855
S276A83
16,233
5339,037
1986%
5316975
14.81%
CITY OF ROUND ROCK ("amsnn County Portion Only)
29,563
5286,292
6278,602
30,782
$342,482
19,63%
. $315 776
13 34%
GEORGETONM ISO
29,253
5316,321
5282,382
31 594J
5372 187
17.66%
5321,023
13.681%
HUTT0ISO
13,170
5246,478
1219,566
14652
5292.686
1875%
5255,006
1614%
LEANDER ISD (Wi19mmmi County Portion Onty)
45,341
5304,376
5279,579
47,553
5360,230
18 35%J
5319,&M
14 32%
LIBERTY HILL I80
7768
5348,174
5315,951
9.681
5401, 121
15 21 %
5354,919
12.37%
ROUND ROCK IBDIWilliamSunCountyPodionOnM
59.566
5320.506
5296.388
60,442
5382,466
1933%
5337,T77
1396%
TAYLORISD
5414
5162,623
1135,144
5,568
5188,508
1592%
5156,643
1591%
WILLIAM80NCOUNTY
170,O04
$299,424
$287,MJ
179,999
$354092
1826%
5324,112
1290%
Lankford the noted: the number of residential new improvements was 1,977 for 2021;
residential new improvement values ranges; average value of homestead capped accounts
and average cap adjustment; City and Williamson County Capped accounts; City of
Georgetown multi -family values (in millions) were $869.58 for 2021; City of Georgetown
commercial value (in billions) was $1.75 for 2021; commercial by parcel count, by value, and
by square footage; number of commercial new improvements was 53 for 2021; commercial
new improvements by category includes entertainment, retail, multi -family and other,
industrial, office, and service; and the change in taxable value from prior year.
Discussion between Mayor Schroeder and Lankford related to how properties that
agriculturally exempt and associated rollbacks are captured.
Discussion between Fought regarding frozen property taxes and associated resets when
someone sells the property.
Discussion between Hood and Lankford related to residential property ranges and what
portion is affordable housing.
Discussion between Calixtro and Lankford related to how foreclosures are tracked; how
foreclosures are nearly non-existent in Georgetown; now Georgetown is more likely to see
some short sales to pay off loans instead of foreclosures; and what is included in a comparable
area.
Discussion between Pitts and Lankford related to constant trends aside from last year to this
year; how WCAD processed last year; from a resident's standpoint, big swings are hard to
manage; how in order to protect staff WCAD took a conservative approach last year and went
to 96% of market values; WCAD able to get through without a single transmission of COVID-
19; and how WCAD was the only entity to certify the roll in a timely fashion.
William Boughton addressed the Council via Zoom and discussed with Lankford the
appraisal review and protest process and associated timelines.
Mayor Schroeder recessed into Executive Session at 4:24 p.m.
Executive Session
In compliance with the Open Meetings Act, Chapter 551, Government Code, Vernon's Texas
Codes, Annotated, the items listed below will be discussed in closed session and are subject to
action in the regular session.
E. Sec. 551.071: Consultation with Attorney
Advice from attorney about pending or contemplated litigation and other matters on which
the attorney has a duty to advise the City Council, including agenda items
- Litigation Update
Sec. 551.086: Certain Public Power Utilities: Competitive Matters
- Competitive Matters — Purchased Power Update
Sec. 551.087: Deliberation Regarding Economic Development Negotiations
- Project Access
- Project Zeus
Sec. 551.074: Personnel Matters
- City Manager
Adjournment
Mayor Schroeder adjourned the meeting at 4:25 p.m.
Approved by the Georgetown City Council on Row I 1 1 zoz.�
Date
Jos ' roeder, Mayor Attest: dty Secretary