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Home My WebLink AboutMIN 06.17.2021 CC-SNotice of a Meeting of the Governing Body of the City of Georgetown, Texas Tuesday, June 17, 2021 The Georgetown City Council will meet on Tuesday, June 17, 2021 at 5:30 PM at the Council Chambers at 510 West 91hSt., Georgetown, Texas. 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 for additional information; TTY users route through Relay Texas at 711. Mayor Schroeder called the meeting to order at 5:30 p.m. The following Council Members were in attendance: Mayor Josh Schroeder; Amanda Parr, Council Member District 1; Shawn Hood, Council Member District 2; Mike Triggs, Council Member District 3; Steve Fought, Council Member District 4; and Kevin Pitts, Council Member District 5. Rachael Jonrowe, Council Member District 6; and Tommy Gonzalez, Council Member District 7 were absent. A quorum of Council Members was present in Council Chambers and a roll call was performed. Hood arrived during Item A. Regular Session (This Regular session may, at any time, be recessed to convene an Executive Session for any purpose authorized by the Open Meetings Act, Texas Government Code 551.) A. First reading of an ordinance of the City Council of the City of Georgetown, Texas establishing the value of the exemption from ad valorem taxes for a percentage of the appraised value of residential homesteads; repealing conflicting ordinances and resolutions; including a severability clause; and setting an effective date -- Leigh Wallace, Finance Director Wallace presented the item and reviewed the market and taxable value history for Georgetown as showing in the following two graphs: City of Georgetown Total Market Value Real Parcels $12 (in billions) 1-D • ] .81 } 1.1 i V.a - s} 44 2016 4 2017 2018 2019 -.. YEAR Re-idential - - mmvial 202 2021 Land Q M t-Far .-�y 2 V.so 0 CHANGE IN TAXABLE VALUE FROM C7 ^.rs''na P•coeey Va -e 0 `:e:, ir-aover-ew Vc .,e °'e•en a^. "axoa.e Vc -e `•or^ arc YQ' S Ye.�• 30.E_1 1 TTT .2o PRIOR YEAR SO-78 $171 w.w� $O.SA I 20 1 G i'� i s 2-.i•LV �C $2-0 1 Wallace then noted the change in homestead capped accounts and noted that the percent of homesteads hitting the State 10% max allowed increase in taxable value went from below 20% last year, to more than 80% this year. She then reviewed the current homestead exemption for Georgetown that was adopted 1983 via ordinance and allowed for $5,000 or 1% of market value, whichever is greater. Wallace noted that the current number of properties that the exemption applies to is approximately 18,500; and the current value in lost property tax revenue, operations and debt sides is approximately $389,000 total at current tax rate of 41.8 cents per $100 of valuation with 46% going to Operations and Maintenance to General Fund totaling $180,000 and 54% going to Principal and Interest for General Debt Service Fund totaling $210,000. She the noted other local homestead exemptions with Williamson Central Appraisal District (WCAD) as follows: City of Austin $5,000 10 City of Cedar Park $5,000 1 City of Georgetown $5,000 1 City of Leander $5,000 1 City of Liberty Hill $5,000 1 Williamson CO $5,000 1.5 Wallace provided the current other exemptions as follows: homestead exemption age 65 and older for $12,000; disabled exemption for $40,000; and a tax ceiling on the amount of taxes paid for disabled or 65 and older where the amount varies. She noted that based on Tax Code 11.13 the City must adopt the change before July 1 for it to take effect for the coming year; the taxing unit may not adopt a percentage more than 20%; and a homeowner may not claim more than one residence. Wallace the reviewed the increase options and noted dollar value and percent as flows (based on the greater amount): with $10,000, or 10/o, the dollar change annual impact to City would be approximately $389,000 increment in lost revenue ($776,000 total), the $180,000 increment for General Fund, which has a tax rate cap ($360,000 total), and the dollar change annual impact to average taxable homeowner would equal an approximately $20 lower tax bill and the percent change for the taxable home value must be more than $1,000,000 to use 1%; with $10,000 or 1.5% the percent change for taxable home value must be more than approximately $670,000 to use 1.5%; and with $10,000 or 2% the percent change for taxable home value must be more than approximately $500,000 to use 2%. She provided the following next steps: Council action on First Reading, June 17, 2021 Special Called meeting; Council action on Second Reading, June 29, 2021 Special Called meeting; file updated exemption with Williamson Central Appraisal District; and no action will be needed from homeowners for currently filed homes. Wallace read the caption. Pitts noted the different options and asked what the amounts were based on. David Morgan, City Manager responded, that it was based on the way the homestead exemption formula works out. Pitts asked if, based on the first scenario of $10,000 or 1%, anything over $1,000,000 would be more than the $10,000 cap. Wallace responded yes and that there are a small amount of homes valued at over $1,000,000. Pitts asked about the number numbers associated with the $10,000 or 1.5% and $10,000 or 2% options. Wallace replied that staff had not run those, but the difference should be small. Morgan emphasized that the change in amounts was not significant. Fought stated that he likes the idea of helping people with the homeowner's exemption and asked about the average home price. Morgan responded that this year $350,000 was average home price. Fought asked what percentage would be needed to help those at the average home price. Morgan responded that the $10,000 would apply to all homeowners and to assist the those that own average priced home, you would be looking at increasing the $10,000 amount. Fought stated that he understood and likes the $10,000 or 2% option. Triggs asked for clarification if $776,000 would be the total amount in lost revenue to the City. Wallace and Morgan responded yes. No other questions. Motion by Triggs to increase the homestead exemption by $10,000 or 2% increase, whichever is greater, second by Pitts. Wallace noted that the ordinance was written with the $10,000 or 1% option. Skye Masson, City Attorney, stated that staff would correct the ordinance for second reading to reflect Council's choice of $10,000 or 2%. Vote on motion: Parr - Yes Hood - Yes Triggs - Yes Fought - Yes Pitts - Yes Jonrowe - Absent Gonzalez - Absent Approved 5-0 (Jonrowe and Gonzalez absent). Adjournment Motion to adjourn by Parr, second by Fought. Parr - Yes Hood - Yes Triggs - Yes Fought - Yes Pitts - Yes Jonrowe - Absent Gonzalez - Absent Approved 5-0 (Jonrowe and Gonzalez absent). Morgan clarified the timeline, noting that Council will have their Regular meeting on June 22, 2021 and see the second reading of this ordinance at a Special Meeting on June 29, 2021. Mayor Schroeder noted that this meeting was not a public hearing, but there were not speakers online or in person requesting to speak. Mayor Schroeder adjourned the meeting at 5:45 p.m. Approved by the Georgetown City Council on J t Y1 �Z z 1 7,0Z f Date ov, .0". %2.41 -1-, 0- J, t j; U Y �Wi/ Secretary