[00:00:03]
[INVOCATION]
THANK YOU. THANK YOU.WE'RE GOING TO START WITH AN INVOCATION AND THEN MOVE TO OUR PLEDGE.
AND HERE TO DO OUR PRAYER TODAY IS ALEXANDRA PEREZ FROM PRAY THE CITY.
THANK YOU, ALEXANDRA, FOR BEING WITH US.
IS THIS ON? IS THIS ON, CAN YOU HEAR ME? OKAY? PLEASE JOIN ME IN PRAYER.
DEAR HEAVENLY FATHER, WE ASK THAT YOUR PRESENCE JUST BE IN THIS PLACE.
AND WE KNOW THAT'S WHAT IT IS FOR YOUR CITY, LORD.
SO, FATHER, RIGHT NOW I'M PRAYING THAT YOU GIVE US THE WISDOM, UNDERSTANDING AND KNOWLEDGE TO MAKE THE CHOICES THAT WE NEED TO MAKE LORD TO BE ABLE TO GO FORTH AND WITH YOUR PROMISE FOR US LORD.
AND FATHER, I'M ASKING THAT YOU HELP US TO SPEAK WITH LOVE AND KINDNESS TODAY LORD, WE THANK YOU FOR ALL THAT YOU ARE, FOR ALL THAT YOU DO, LORD, AND FOR ALL THAT YOU'RE GOING TO DO IN OUR CITY FATHER WE TRUST YOU, LORD.
AND I JUST PRAY OVER THESE MEMBERS HERE, LORD.
FATHER AND I'M PRAYING THAT YOU GIVE THEM A SPECIAL UNDERSTANDING.
THANK YOU FOR ALL THAT YOU DO.
THANK YOU FOR ALL THAT YOU ARE.
THIS IS IN JESUS MIGHTY NAME WE PRAY, AMEN.
AMEN. ALEXANDRA, THANK YOU VERY MUCH.
WOULD YOU JOIN US IN THE PLEDGE PLEASE? BEFORE WE MOVE TO PUBLIC ADDRESS TODAY, I JUST WANT TO MAKE AN OPENING STATEMENT AND RECOMMENDATION COUNCIL.
WITH REGARD TO THE TAX RATE, WHICH IS WHAT WE HAVE ON OUR AGENDA TODAY, IT WILL BE MY RECOMMENDATION THAT WE MOVE TOWARD THE 40 CENT RATE.
BECAUSE I UNDERSTAND, AS WE'RE LEARNING HOW TO DO AND PROGRESS THROUGH SENATE BILL TWO AND HOW IT CHANGES OUR TIMELINES AND OUR CALENDARS TO SET OUR TAX RATES AND OUR BUDGET, I THINK IT IS WE'RE LEARNING ON THE GO AND CITIZENS ARE LEARNING AS THEY WATCH WITH US.
SO I JUST WANTED YOU AS A COUNCIL TO KNOW THAT MY RECOMMENDATION WILL BE THAT WE GO WITH THE 40 CENT TAX RATE AND WE CAN HAVE CONVERSATION ABOUT THAT.
SO WITH THAT, WE DO HAVE A CITIZEN SIGNED UP FOR PUBLIC ADDRESS.
[PUBLIC ADDRESS]
SO I'LL PASS THE MICROPHONE TO OUR MODERATOR, STEPHANIE COLLINS.THANK YOU, MAYOR, AND THANK YOU FOR PARTICIPATING IN TODAY'S CITY COUNCIL MEETING.
YOUR INPUT AND YOUR OPINIONS ARE IMPORTANT TO US AND WE ARE GLAD THAT YOU'RE HERE TO SHARE THEM.
AT EACH POSTED MEETING, WE INVITE OUR FELLOW COMMUNITY MEMBERS TO ADDRESS CITY COUNCIL REGARDING POSTED AGENDA ITEMS. EVERY SPEAKER WILL HAVE 3 MINUTES TO ADDRESS CITY COUNCIL.
SPEAKERS ARE ASKED TO LIMIT YOUR COMMENTS TODAY TO ITEMS ON THE POSTED AGENDA.
AND IF YOU'RE HERE TO SPEAK ON THE PUBLIC HEARING THAT WE HAVE WITH ITEM NUMBER ONE, WE WOULD ASK THAT YOU GIVE US YOUR COMMENTS EITHER IN PUBLIC ADDRESS OR DURING THE PUBLIC HEARING, BUT NOT BOTH.
THIS WILL HELP US TO KEEP AN ACCURATE RECORD OF TODAY'S MEETING.
WHEN YOU WISH TO SPEAK, YOUR DECISION IS UP TO YOU.
AND THEN LET US KNOW IF YOU'RE SPEAKING ON FOR OR AGAINST YOUR AGENDA ITEMS. AND WITH THAT, WE HAVE ONE SPEAKER TODAY SIGNED UP FOR PUBLIC ADDRESS, AND THAT'S MR. JAMES SCHENCK.
EXCUSE ME BEFORE WE GET GOING.
COULD. COULD YOU? THIS IS BARELY ON.
COULD YOU RESTATE WHAT YOU JUST SAID AT THE FIRST? WE'RE GOING TO. WHAT? TAX RATE? THERE'S TWO PROPOSALS.
THAT'S THE ONE THAT I WOULD RECOMMEND.
OK. JUST BE CLEAR BECAUSE IT CHANGES MY WHOLE COMMENT TO SOME DEGREE.
[00:05:07]
OKAY. BECAUSE I WAS SORT OF CONFUSED ABOUT WHAT WE WERE TRYING TO DO.AND I HOPE WE CONSIDER WHAT YOU'RE TALKING ABOUT HERE, AND I'LL LISTEN AS I SIT BACK DOWN, BECAUSE THIS HAS BROUGHT UP SUCH AN HOUR ABOUT SENATE BILL TWO, AS WELL AS DRAWING OUT A LAWSUIT, DRAWING OUT A PETITION TO PULL BACK ON THIS AND LETTING THE CITIZENS VOTE IN SOME OF THE QUESTIONABLE STATEMENTS, EVEN HERE IN THE AGENDA IN REFERENCE TO 23.66% INCREASE ON PROPERTY.
RAISE TAXES FOR MAINTENANCE AND OPERATION AND ZERO ON OR ZERO AND MAINTENANCE, MAINTENANCE AND OPERATION FOR 100,000 FOR PEOPLE, BUT THE REST WAS ON INS.
IT'S HARD FOR US THAT TRY TO FOLLOW IT, HARD TO KEEP UP WITH THESE MANEUVERS.
SO I WOULD APPRECIATE THE EXPLANATION.
AS I SIT DOWN SOMETIMES I SORT OF HEAR SOME OTHER CONVERSATIONS THAT I WISH WE COULD JUST HAVE.
YOU KNOW, I THINK THE OPEN MEETINGS ACT WOULD ACTUALLY ALLOW US TO TALK IF YOU ACTUALLY WORKED WITH THE OPEN MEETINGS ACT, BUT YOU REFUSED TO, JUST ON SIMPLY.
WHEN YOU COME OUT HERE RIGHT NOW AND WE'RE ALL LOOKING DEADHEAD AT A 49 CENT PROPERTY TAX, AND YOU MENTIONED YOU'RE RECOMMENDING $0.40 NOW.
LET'S LET'S GET THAT OUT ON THE TABLE.
AND I'D BE INTERESTED IN SEEING WHERE YOU COME DOWN BECAUSE THIS IS THE CITIZENS THAT ARE CONCERNED.
THANK YOU. THANK YOU, MR. SCHANKE. THAT CONCLUDES PUBLIC ADDRESS, MAYOR.
[1. AGENDA PUBLIC HEARING ON FISCAL YEAR 2022/2023 BUDGET]
MR. CITY MANAGER, MAYOR WE'LL JUMP STRAIGHT INTO PRESENTATION FROM CHIEF FINANCIAL OFFICER, ASSISTANT CITY MANAGER LAURA STORRS.LAURA, ARE YOU GOING TO MAKE A PRESENTATION FIRST? YES. AND THEN COUNCIL WILL BE ABLE TO ASK QUESTIONS ON BUDGET AND TAX RATE GO THROUGH.
OK. GOOD AFTERNOON, MAYOR AND COUNCIL.
SO WHAT WE WANT TO HIGHLIGHT IN THIS BUDGET.
FIRST OFF, DO WANT TO MENTION THAT THERE WERE A LOT OF CHALLENGES IN THIS YEAR'S BUDGET.
AS YOU ALL ARE AWARE, WE ARE SEEING A LARGE AMOUNT OF INFLATION ON EVERYTHING THAT WE BUY.
WE'RE SEEING AN INCREASED AMOUNT OF UTILITY COSTS.
WE'RE SEEING AN INCREASED AMOUNT OF FUEL COSTS.
AND SO ALL OF THAT HAS BEEN FACTORED INTO THIS PROPOSED 2223 BUDGET.
BUT SOME THINGS WE WANTED TO HIGHLIGHT AS SOME WINS THAT WE WERE ABLE TO ACHIEVE THROUGH THIS PROPOSED BUDGET IS FIRST, WE'VE BEEN ABLE TO ADD IN CASH FUNDING FOR A NEW FIRE STATION.
SO THIS WOULD BE AN ADDITION TO THE 13 FIRE STATIONS WE HAVE.
WITH THAT, WE HAVE ADDED IN 15 ADDITIONAL FIREFIGHTER POSITIONS TO STAFF THAT NEW FIRE STATION, AND WE'VE ALSO ADDED IN ONE NEW FIRE DISTRICT CHIEF.
WE ALSO ADDED IN INCREASED FUNDING FOR NEIGHBORHOOD PLANS.
THAT'S BEEN WE'VE SEEN SOME HUGE SUCCESSES OUT OF THOSE.
AND SO COUNCIL WAS SUPPORTIVE OF US PUTTING SOME ADDITIONAL FUNDING IN FOR THOSE NEIGHBORHOOD PLANS.
BUT SOLID WASTE HAS SEEN SOME CHALLENGES FROM A STAFFING STANDPOINT.
SO IN THIS PROPOSED BUDGET, WE WERE ABLE TO PUT IN ADDITIONAL PAY ADJUSTMENTS TO HELP US RECRUIT NEW STAFF INTO THOSE VACANT POSITIONS AND RETAIN THE STAFF THAT WE DO HAVE.
ALSO WANTED TO NOTE THAT THE INCREASED FUNDING THAT THIS COUNCIL APPROVED THIS PAST YEAR FOR MAINTENANCE FOR OUR PARKS AND REC DEPARTMENT, THAT IS STILL INCLUDED IN THIS PROPOSED 2223 BUDGET.
[00:10:06]
SO WITH THAT, LET'S LOOK AT THE EXPENDITURE SIDE OF THE FULL CITY BUDGET.SO OUR 2122 APPROVED BUDGET, WHICH IS THE CURRENT YEAR BUDGET WE'RE WORKING ON IN RIGHT NOW, IS $419.5 MILLION. WE INCREASE THAT BY 71.3 MILLION TO GET TO OUR PROPOSED 2223 FISCAL YEAR BUDGET, WHICH IS $490.8 MILLION.
AND AGAIN, THINGS THAT WE INCLUDED IN IT WAS THE INITIATIVES FOR FIRE THAT WE JUST COVERED, INCLUDING A FIRE STATION IN ADDITIONAL POSITIONS, ADDITIONAL POLICE OFFICERS, THE SOLID WAY PAY ENHANCEMENTS, PARKS AND MAINTENANCE FUNDING, AND THEN ALSO THE INCREASED COSTS THAT WE ARE INCURRING RELATED TO UTILITIES, FUEL AND MATERIALS THAT WE ARE PURCHASING.
AND THAT'S ALL RELATED TO INFLATION.
AND THERE'S A LOT MORE IN THIS BUDGET THAN THIS JUST THAT.
WE HAVE IDENTIFIED 55 MILLION IN ADDITIONAL REVENUE TO BRING US TO OUR 2223 PROPOSED REVENUE BUDGET OF $455.4 MILLION.
SO WITH THAT, WHAT WE ARE NEEDING COUNCIL TO DO IS TO CONDUCT A PUBLIC HEARING.
SO WE WILL HAVE A PUBLIC HEARING TODAY ON THE BUDGET.
AND THEN ON THURSDAY, THIS THURSDAY, SEPTEMBER 8TH, WE WILL HAVE YOU DO THE SECOND AND FINAL READING ON THE BUDGET ORDINANCE IN ORDER TO APPROVE IT, AND THAT WILL ADOPT YOUR BUDGET FOR FISCAL YEAR 2223.
ARE THERE QUESTIONS THAT I CAN ANSWER? AND I KNOW THAT'S A VERY HIGH LEVEL OVERVIEW, BUT WE WENT IN DEPTH, I KNOW OVER A THREE DAY PERIOD WITH ALL OF YOU AND AND I KNOW I'VE BEEN SENDING SOME ADDITIONAL EMAILS AS WELL.
SO IF Y'ALL HAVE ANY QUESTIONS, I WOULD BE MORE THAN HAPPY TO ANSWER THOSE FOR YOU.
SO, MAYOR, IF I COULD JUST ASK ON THE..
YES. THE AGENDA, MISS STORRS, THE 40 CENT TAX RATE WORKS WITH OUR PROPOSED BUDGET BECAUSE THE NINE CENT DIFFERENTIAL WAS ON THE INS SIDE.
AND WE'LL GO OVER I CAN GO OVER SOME OF THESE POSTINGS IN A LITTLE MORE DETAIL HERE IN A MINUTE WHEN WE TALK ABOUT TAXES, BECAUSE A LOT OF IT'S DERIVED FROM PROPERTY TAX LAW.
AND ON THAT, IF COUNCIL DECIDES TO MAKE A CHANGE, WE CAN STILL FUND THIS ENTIRE BUDGET ON THAT.
WE JUST WILL NOT UTILIZE A PIECE FOR THE INS SIDE.
OKAY. SO THAT'S A GREAT QUESTION.
JUST CONFIRMING THAT, ARE THE REVENUES THE SAME OR DOES DO WOULD WE HAVE A DIFFERENT REVENUE NUMBER THERE? SO THIS REVENUE IS AS IT'S PROPOSED RIGHT NOW AT THE 49 CENT RATE.
IF COUNCIL TAKES ACTION TO GO A DIFFERENT WAY, THAT REVENUE NUMBER WILL COME DOWN.
SO THE REVENUES WOULD CHANGE, THE BUDGET ALIGNMENT WOULD NOT CHANGE.
SO THE REVENUES WELL, WHAT I PRESENTED IS ALL ON THE 49 CENT TAX RATE.
EVERYTHING WAS POSTED AS OF THE $0.49, BUT THE REVENUE PIECE WILL COME DOWN.
OKAY. YEAH. AND AS WE GET TO THE TAX RATE ITEM ON THE NEXT ITEM, WE WILL GIVE MUCH MORE DETAIL ON THE DIFFERENCES BETWEEN HOW THOSE TWO TAX RATES WORK, BECAUSE WE'RE GOING TO GIVE YOU OPTIONS TO CONSIDER.
AND I CAN GO OVER SOME OF THE POSTINGS TO AS WELL, BECAUSE I KNOW I THINK, AS MR. SCHENCK MENTIONED, IT'S VERY CONFUSING READING SOME OF THE WORDING ON OUR NOTICES, BUT THOSE ARE ALL PRESCRIBED BY STATE LAW.
[00:15:04]
LAW. SO WE ARE FOLLOWING THAT.OTHER QUESTIONS? THANK YOU, LAURA. AT THIS TIME, WE'LL OPEN A PUBLIC HEARING ON FISCAL YEAR 2020 TO 2023 BUDGET.
ANYONE WHO WISHES TO SPEAK FOR, ON OR AGAINST THIS ITEM MAY HAVE 3 MINUTES TO DO SO.
IS THERE ANYONE PRESENT WHO WISHES TO SPEAK? SEE. WELL, NO, YOU USED I MEAN, YOU HAD 3 MINUTES AND YOU TALKED ABOUT IT.
WE WILL CLOSE THIS PUBLIC HEARING AND ENTERTAIN A MOTION.
OK MR. CITY MANAGER WITH REGARD TO ORDINANCE NUMBER 8004.
DO WE HAVE A PRESENTATION? YES. HERE COMES LAURA. YES, MA'AM.
SO ITEM TWO IS THE ACTION PIECE RELATED TO ITEM ONE?
[2. CONSIDERATION OF ORDINANCE NO. 8004]
ITEM ONE IS THE PUBLIC HEARING ON THE BUDGET, AND ITEM TWO IS THE FIRST READING OF THE ORDINANCE ADOPTING YOUR PROPOSAL.SO THERE'S NO STANDALONE PRESENTATION FOR ITEM TWO.
THAT WAS THE REALLY THE PRESENTATION THAT WAS MADE FOR BOTH.
YES. IF THAT. SO SINCE WE WILL HAVE A SEPARATE PRESENTATION FOR ITEM THREE.
BUT RIGHT NOW, COUNCIL CAN EITHER ASK QUESTIONS OF LAURA TO GET MORE DETAIL ON THE BUDGET ITSELF, GET MORE INFORMATION FROM FEEDBACK FROM THE BUDGET CREATION SESSIONS THAT WE HAD EARLIER, OR THEY CAN MAKE A MOTION TO ACCEPT THE BUDGET AS IT IS UNDERSTANDING THAT WITH EITHER TAX RATE WE WILL ACCOMPLISH THE BUDGET AS PRESENTED. THAT IS CORRECT.
DO Y'ALL MIND SHARING YOUR THINKING SO WE CAN ALL BE A PART OF IT? SORRY, MAYOR. NO, THAT'S OKAY.
SO MY QUESTION WAS AN ORDINANCE.
ON THE ORDINANCE THAT WE'RE GOING TO CONSIDER ON ITEM NUMBER TWO.
SO DO YOU WANT TO MOVE FORWARD WITH THE PRESENTATION AND THEN WE COULD COME BACK TO THAT? OR WOULD YOU LIKE ME TO ADD? I THINK IT'S CONFUSING THE WAY THIS IS LAID OUT.
AND AGAIN, I KNOW IT'S LAID OUT IN ACCORDANCE TO THIS BUDGET STATUTE, BUT VOTE ON ITEM TWO FIRST.
WE'VE ALREADY HEARD THE PRESENTATION FOR ITEM TWO.
IT WAS THE PRESENTATION FOR ITEM ONE, BUT IT HAS TO BE LISTED AS TWO DIFFERENT AGENDA ITEMS. SO THERE'S NOT GOING TO BE A NEW PRESENTATION WITH REGARD TO THE ORDINANCE THAT WE HAVE TO CONSIDER ON ITEM TWO.
SO IF I COULD ASK MY QUESTION, THAT ORDINANCE 8004 SPECIFICALLY STATES THE 49 CENT RATE OR IS JUST THE BUDGET AS PROPOSED JUST THE BUDGET AS PROPOSED ORDINANCE 8005 IS THE ONE THAT LAYS OUT THE ACTUAL PROPERTY TAX.
THE TWO ARE NOT CONJOINED IN ANY WAY? SO YES AND NO.
SO THE PROPERTY TAX RATE IS NOT STATED IN ORDINANCE NUMBER 8004.
SO PROCEDURALLY WE WOULD BE FINE TO MOVE FORWARD WITH THE BUDGET AS PRESENTED AND THEN STEP UP AFTER THAT TO AN ORDINANCE THAT WOULDN'T BE 8005 WOULD BE A DIFFERENT ORDINANCE THAN WHAT'S IN MY AGENDA.
RIGHT? IT WOULD BE THE SAME ORDINANCE.
YOU WOULD JUST DIRECT US TO CHANGE THE RATE INSIDE THAT ORDINANCE.
YEAH. THEY'RE BOTH IN DRAFT FORM AT THIS POINT.
THEY WERE POSTED I BELIEVE ALONG WITH THE AGENDA AND THE FIRST ONE, 8004 IS THE REALLY LONG ONE THAT HAS ALL THE RATES AND FEES AND JUST THE OVERALL BUDGET FOR THE CITY.
AND THEN THE 8005 IS A LOT SHORTER AND IT'S OUTLINING THE PROPERTY TAX RATE AND THAT'S THE ONE IF YOU ALL DECIDE ON ITEM THREE TO GO WITH A DIFFERENT RATE, YOU'LL DIRECT BRIAN AND I TO MARK UP THE CHANGES IN THAT ORDINANCE AND WE'LL BRING IT BACK FOR SECOND READING, SECOND AND FINAL READING ON THURSDAY.
I WAS JUST TRYING TO MAKE SURE THAT I WAS SEEING THE STEPS.
IN ESSENCE, WHAT ENDS UP HAPPENING IS WE'RE GOING TO TALK ABOUT THE BUDGET, WHICH IS IN SOME WAYS IS COMPLETELY SEPARATE, EVEN THOUGH IT IS A ROUNDABOUT TIED INTO INTEREST AND SINKING.
BUT THIS IS MAINLY ABOUT MAINTENANCE AND OPERATION.
AND SO REALLY, YOU COULD ADOPT A BUDGET AND THEN WHATEVER YOU, YOU KNOW, WHATEVER YOU THINK NEEDS TO BE USED TO SUPPORT IT WITH A TAX RATE.
[00:20:05]
THAT'S WHY YOU HAVE TO DO THE BUDGET FIRST AND THEN THE TAX RATE SECOND.SO BECAUSE THE BUDGET YOU HAVE, THOSE ARE THINGS YOU HAVE TO DO.
AND THEN THE TAX RATE IS WHAT YOU ALL DETERMINE YOU WANT TO SUPPORT IN THAT BUDGET.
SO REALLY, THE BUDGET IS WHAT WE SPENT FOUR DAYS WORKING ON.
SO REALLY ALL WE'RE DOING IS JUST SAYING WE LIKE THE BUDGET.
YES. AND WE WANT TO MOVE THIS BUDGET FORWARD.
THAT IS CORRECT. THAT IS WHAT ITEM TWO IS ABOUT.
THIS IS MONTHS AND MONTHS AND MONTHS OF WORK TIED INTO A VERY SHORT PRESENTATION, BUT APPRECIATE ALL THE WORK THAT THEY'VE DONE AND ALL THE WORK THAT ALL OF OUR DEPARTMENTS HAVE DONE TO BRING THIS BUDGET FORWARD.
SO I APPRECIATE YOU LET ME STATE THAT.
I DON'T THINK IT'S MIND NUMBING FOR MATT AND DEBBIE AND BLAIR.
I MEAN, THEIR FACES KIND OF LIGHT UP ANY TIME YOU SAY BUDGET.
NO. WE DO APPRECIATE YOU GUYS VERY, VERY MUCH.
SO THANK YOU ALL FOR YOUR PATIENCE.
OK. SO NOW GET US BACK ON BACK ON TRACK.
DO WE HAVE A MOTION WITH REGARD TO THIS ORDINANCE? YES, MAYOR, WE DO.
I MOVED TO ADOPT ORDINANCE NUMBER 8004, WHICH IS THE PROPOSED BUDGET, WHICH REFLECTS AN INCREASE IN REVENUE DERIVED FROM PROPERTY TAX REVENUES OVER LAST YEAR'S BUDGET.
ARE THERE ANY QUESTIONS OR FURTHER DISCUSSION ABOUT THAT MOTION? OK HEARING NONE.
ANYONE OPPOSED THAT PASSES WITH THE FIVE ZERO VOTE.
OKAY. ITEM THREE ON OUR AGENDA IS CONSIDERATION OF ORDINANCE NUMBER 8005.
THIS IS WHERE WE'RE GOING TO DISCUSS THE DIFFERENT OPTIONS ON TAX RATE THAT ARE AVAILABLE TO YOU.
DO FEEL FREE THOUGH TO ASK QUESTIONS AT ANY POINT DURING THE PRESENTATION.
CERTAINLY WE'LL ASK FOUR QUESTIONS AT THE END AND I'M SURE THERE WILL BE SOME.
LAURA. YES, AND BEAR WITH ME JUST A SECOND AS WE'RE LOOKING FOR THE PRESENTATION.
ME, IT SHOULD SAY 2022 PROPERTY TAX INFORMATION.
BUT AGAIN, IT'S VERY STATE LAW IS VERY PARTICULAR ON HOW WE POST PERFECT THANK YOU.
AND SO APPRECIATE YOUR PATIENCE AS WE TRY TO CLEAR SOME OF THIS UP AS WE WALK THROUGH, BECAUSE ESPECIALLY ON THE PROPERTY TAX SIDE, IT CAN BE VERY CONFUSING ON THERE. OKAY.
SO ON THIS FIRST SLIDE IS WHERE WE ARE TALKING ABOUT KIND OF THE EFFECTS THAT SENATE BILL TWO HAD ON THE BUDGET AND PROPERTY TAX RATE APPROVAL PROCESS.
SO THIS IS ALL IN TEXAS TAX CODE SECTION 26.
AND WHAT IT OUTLINES IS THAT NOW THERE'S THIS VOTER APPROVAL TAX RATE, AND THAT IS ESSENTIALLY A RATE THAT ALLOWS FOR THREE AND A HALF PERCENT MORE IN REVENUE FROM THE MAINTENANCE AND OPERATIONS SIDE OF THE RATE THAN THE PRIOR YEAR.
YOUR INTEREST IN SINKING SIDE, THE SIDE THAT SUPPORTS DEBT IS ALLOWED TO FLUCTUATE UPPER UP AND DOWN AS MUCH AS NEEDED BASED ON DEBT ISSUANCES THAT ARE OUTSTANDING. BUT THE MAINTENANCE AND OPERATION SIDE CANNOT RISE HIGHER THAN THREE AND A HALF PERCENT ABOVE THE PRIOR YEAR.
OTHERWISE, IT AUTOMATICALLY HAS TO GO TO A AN ELECTION OF VOTER APPROVAL TAX RATE ELECTION ELECTION.
NOW, THESE CHANGES ALSO COMPRESSED OUR TIMELINE FOR APPROVING A BUDGET.
THAT'S WHY WE HAD EARLIER DATES SET IN CASE COUNCIL WANTED TO CALL AN ELECTION.
[00:25:02]
SINCE COUNCIL DECIDED NOT TO, WE WERE ABLE TO PUSH THE DATES OUT A LITTLE FURTHER AND THEN ALSO IT OUTLINES WHAT RATE THE CITY HAS TO USE IF AN ELECTION IS NOT SUCCESSFUL.AND A LOT OF THAT WE WALK THROUGH THIS PAST YEAR BUT IS NOT APPLICABLE NECESSARILY FOR THIS YEAR.
SO LET'S TALK ABOUT JUST THE OPERATIONS AND MAINTENANCE SIDE OF THE RATE.
YOU CAN'T COLLECT MORE THAN THREE AND A HALF PERCENT IN REVENUE ABOVE WHAT THE PRIOR YEAR RATE WAS.
NOW, AS YOU LOOK AT THIS SLIDE, THIS STARTS SOME OF THE CONFUSION BECAUSE YOU SEE THAT THE 2122 APPROVED MAINTENANCE AND OPERATION RATE IS 36.4 TO $0.03.
SO YOU DO BASIC MATH IN YOUR HEAD, THAT'S A LOWER RATE.
AND THAT IS DUE TO THE RISE IN APPRAISED VALUES THAT WE SAW THIS YEAR.
BY JULY 25TH EACH YEAR, THEY CERTIFY THEM WELL, BECAUSE WE SAW THOSE APPRAISED VALUES GO UP.
IT TAKES A LOWER INTEREST RATE TO STILL PRODUCE MORE REVENUE THAN LAST YEAR.
SO WE ARE CAPPED ON A MAINTENANCE AND OPERATION SIDE OF OUR RATE AT THIS 33.07 $0.09.
AND AS I MENTIONED, THAT'S ABOUT IT PRODUCES ABOUT THREE QUARTERS OF $1,000,000 MORE THAN LAST YEAR.
AND I JUST PUT A NOTE ON HERE JUST FOR FRAME OF REFERENCE.
SO AS I MENTIONED, WE'RE SEEING LOTS OF PRESSURE.
SAME THING EVERYONE IS SEEING IN THOSE RISING COSTS AND JUST KIND OF OUTLINE THAT HERE.
THIS NEXT SLIDE IS THE TOTAL PROPERTY TAX RATE.
SO THIS IS LOOKING AT THE OPERATION AND MAINTENANCE SIDE AND THE INS SIDE.
SO I'M CALLING THIS OPTION ONE ON HERE BECAUSE THIS IS WHAT THE CURRENT PROPOSED RATE IS SET AT.
IT IS ALSO EQUAL TO THE VOTER APPROVAL TAX RATE.
SO THE HIGHEST TAX RATE THAT THIS COUNCIL COULD UTILIZE WITHOUT GOING TO AN ELECTION, OUR CURRENT APPROVED TAX RATE FOR 2021 IS 44.33 $0.04.
WHAT THAT MEANS ON $100,000 HOME IS THAT IS ABOUT A $4 PER MONTH INCREASE ON A $100,000 HOME.
FOR THAT, WE WOULD BE ABLE TO ACHIEVE OUR CURRENT SERVICE LEVELS.
ALSO ONE NEW FIRE DISTRICT CHIEF CONTINUED PARK MAINTENANCE IMPROVEMENTS AND FUNDING, ATHLETIC FIELD LIGHTING, CITY HALL AND CIVIC CENTER, PROJECT FUNDING AND MORE. THAT IS WHAT YOU WOULD BE ABLE TO ACHIEVE WITH THE 49.08 $0.06.
THAT IS ALSO WHAT TODAY'S POSTINGS AND WHAT WAS POSTED IN THE NEWSPAPER.
THAT'S WHAT ALL OF THOSE NUMBERS ARE CALCULATED ON.
SO AS YOU LOOK ON YOUR AGENDA, WHEN WE DID THE PUBLIC HEARING ON THE BUDGET, THE REVENUE NUMBER IS BASED OFF OF THIS 49 CENT NUMBER, THIS OPTION ONE, WHICH IS ABOUT 13.2 MILLION MORE THAN LAST YEAR FROM PROPERTY TAX REVENUE IN TOTAL.
SO THAT'S OPERATIONS AND MAINTENANCE AND YOUR INS SIDE.
SO NEXT SLIDE HERE IS OPTION TWO.
SO IF WE WERE TO LOOK AT THIS SAME RATE LESS THE AMOUNT NEEDED FOR THE CIVIC CENTER PROJECT FUNDING.
IN THIS FIRST YEAR WE WOULD BE LOOKING AT A 40.628 CENT RATE.
SO WHAT THAT MEANS IS OUR CURRENT TAX RATE IS 44.334 AND WE WOULD BE LOOKING TO GO TO A 40.628 TAX RATE. WHAT THAT MEANS ON $100,000 HOME.
IS THIS ACTUALLY A $3 PER MONTH DECREASE?
[00:30:01]
SO ON THAT WE GET THE SAME CURRENT SERVICE LEVELS, WE GET THE PUBLIC SAFETY FUNDING INITIATIVES, PARK MAINTENANCE FUNDING, ATHLETIC FIELD LIGHTING AND CITY HALL.SO THERE'S ONLY ONE PIECE THAT'S NOT INCLUDED IN THIS OPTION.
I ALSO WANTED TO TO STATE THAT NOT INCLUDING THAT ADDITIONAL PIECE IN THIS OPTION DOES NOT CHANGE ANY ACTION THAT COUNCIL IS TAKING AT THIS POINT IN TIME.
AND THE THE ITEMS THAT ARE PENDING AT THIS POINT IN TIME, THIS HAS NO BEARING ON THAT.
SO LET'S LOOK AT HOW THIS BREAKS DOWN ON A PROPERTY TAX RATE, ON THE PROPERTY TAX BILL IN TOTAL.
NOW, ALL THE TAXING ENTITIES ARE GOING THROUGH THIS EXACT SAME PROCESS RIGHT NOW.
THEY'RE DOING PUBLIC HEARINGS AND THEY ARE ADOPTING THEIR TAX RATES.
SO WHAT WE SHOW FOR YOU HERE IS THE 2021 TAX RATES ON THE ENTITIES VERSUS THE TWO OPTIONS ON THE CITY'S PROPOSED TAX RATE FOR 2022.
NOW, AGAIN, SOME OF THE ENTITIES MAY BE LOWERING THEIR TAX RATES THIS YEAR.
SOME MAY BE LEAVING THEM FLAT, SOME MAY BE INCREASING THEM DEPENDING ON THEIR SITUATIONS.
WHAT THIS PROPERTY TAX BILL IS, IS IT SHOWS YOU AN EXAMPLE OF A BILL FOR SOMEONE IN AMARILLO, INDEPENDENT SCHOOL DISTRICTS, POTTER COUNTY, INSIDE THE CITY LIMITS, AND THEN ALSO AMARILLO COLLEGE IN THE WATER DISTRICT ARE ON HERE.
WE HAVE FIVE DIFFERENT SCHOOL DISTRICTS, TWO COUNTIES AND TWO DIFFERENT WATER DISTRICTS.
SO THESE BILLS VARY DEPENDING ON WHERE YOU LIVE INSIDE THE CITY LIMITS, BUT THEY'RE PRETTY CLOSE.
THEY ALL RUN VERY SIMILAR WITHIN A FEW PERCENTAGE POINTS.
SO ON THIS, IT WOULD IT WOULD HAVE US AS 19% OF THE TOTAL PROPERTY TAX BILL, AIC WOULD BE ABOUT 45%, POTTER COUNTY WOULD BE 28%.
EMERALD COLLEGE WOULD BE AT 8% IN THE WATER DISTRICTS, USUALLY LESS THAN 1%.
THE TOTAL BILL, WHICH IS WHAT HOW TAXPAYERS ARE ACTUALLY BILLED.
SO LET'S LOOK AT THE SECOND OPTION HERE.
SO IT CHANGES THE MAKEUP OF THIS BILL JUST A LITTLE BIT.
AND SO ON HERE WHAT THIS DOES.
IT DIDN'T UPDATE ON THIS COPY, SO I APOLOGIZE.
SO THE MAKE UP OF IT, IT'S VERY SIMILAR.
IT PUTS THE AMARILLO ISD AT 46%.
THE CITY DROPS DOWN TO ABOUT 16% AND AC GOES UP TO 9%.
SO THEN WE ALWAYS LIKE TO SEE KIND OF WHERE DO WE FALL IN SIMILAR SIZED CITIES ACROSS THE STATE.
AGAIN, THEY ARE ALL DOING THIS SAME THING RIGHT NOW.
SO NOT A PERFECTLY APPLES TO APPLES COMPARISON, BUT AT LEAST IT SHOWS YOU KIND OF WHERE WE FALL.
SO THE FIRST ONE HERE IS AGAIN ON THAT 49.086 RATE.
AMARILLO IS ON THE FAR RIGHT OVER THERE IN GREEN.
SO THERE ARE THREE CITIES THAT HAVE A RATE IN 2021, LOWER THAN THIS 49 CENT RATE.
AND THAT'S FRISCO, PLANO AND MIDLAND.
THERE'S AN ORANGE LINE GOING ACROSS THIS GRAPH AND THE ORANGE LINE IS THE POPULATION.
SO AGAIN, WE PICK THE EIGHT LARGER CITIES IN AMARILLO, IN THE EIGHT SMALLER CITIES IN AMARILLO.
SO WE TRY TO PICK A SIMILAR SIZED CITIES AS WE COULD.
THE AVERAGE RATE ACROSS ALL OF THESE 17 CITIES IS 57.21 $0.05.
SO STILL OUR 49 CENT RATE WOULD BE LOWER THAN THAT.
SO THEN WE RAN THE SAME GRAPH ON THE 40 CENT TAX RATE.
YOU'LL SEE NOW WE'RE SECOND FROM THE RIGHT AND THAT PUTS ONLY MIDLAND'S 2021 TAX RATE LOWER THAN WHAT WE'RE LOOKING AT HERE. AND ALL THE OTHER CITIES HAD A HIGHER TAX RATE.
THIS ALSO THEN PULLS DOWN THAT AVERAGE TAX RATE TO 56.71 $0.07.
AND YOU'LL NOTICE ON HERE I HAD HIGHLIGHTED THE CITIES THAT HAD A LOWER TAX RATE THAN US.
[00:35:05]
FELL. SO ON THIS GRAPH, WHAT WE DO IS WE TAKE THE TAXABLE VALUES FOR EACH OF THESE COMMUNITIES.AND AGAIN, IT WAS THEIR 2021 TAXABLE, TAXABLE VALUES.
WE MULTIPLY IT TIMES THEIR 2021 TAX RATES AND DIVIDED IT BY THEIR POPULATIONS THAT WERE REPORTED.
AND YOU GET A TAX REVENUE PER CAPITA.
SO THAT MEANS THEY HAVE A LOT MORE TAX MONEY COMING IN PER PERSON IN THEIR AREAS.
THIS IS A 501, JUST ALMOST $502 PER CAPITA NUMBER WITH THE CITY OF AMARILLO BEING JUST OVER $404 PER CAPITA.
NOW THIS NEXT DRAFT IS IS AT THE 40 CENT TAX RATE.
YOU'LL SEE THAT THEY SHIFTED A LITTLE FURTHER OVER TO THE RIGHT.
AMARILLO IS THE SECOND TO LOWEST TAX REVENUE PER CAPITA AT THIS 40.628 TAX RATE, PRODUCING $334. AND $0.69 PER CAPITA WITH THE AVERAGE AT AROUND $497 PER CAPITA.
LET'S TALK A LITTLE BIT ABOUT WHAT COMES NEXT.
[3. CONSIDERATION OF ORDINANCE NO. 8005]
AT THE 49.I'M SORRY, AT THE 49.086 CENTS.
SO COUNCIL NEEDS TO TAKE A VOTE ON A TAX RATE.
WE'VE GIVEN TWO OPTIONS HERE THAT WILL SUPPORT THE BUDGET THAT WAS JUST VOTED ON.
SO COUNCIL CAN CHOOSE ONE OF THOSE TAX RATES OR DIRECT ME ON SOMETHING DIFFERENT IF THEY WOULD LIKE.
WE WILL LET CITIZENS COME AND TALK ABOUT THE TAX RATE, AND THEN WE WILL DO THE SECOND AND FINAL READING ON THE BUDGET AND THE SECOND AND FINAL READING ON THE TAX RATE. AND THEN WE WILL IT WILL BE FOLLOWED BY A VOTE TO RATIFY THE TAX RATE.
ARE THERE QUESTIONS THAT I CAN ANSWER? OR HOPEFULLY I MAYBE CLEARED UP SOME OF THE CONFUSION THAT ON WHAT WAS POSTED AGAIN ON SOME OF THE NOTICES THAT WE HAVE TO POST ON THE PUBLIC HEARINGS OR ON THE WEBSITE, IT TALKS ABOUT AN HOW MUCH THE RATES HAVE EFFECTIVELY CHANGED.
THAT COMPARISON GOES FROM A NO NEW TAX RATE, WHICH IS WHERE WE HAVE TO GO IN AND CALCULATE A RATE THAT COULD PRODUCE THE EXACT SAME REVENUE AS LAST YEAR. SO WE HAVE TO TAKE THAT RATE AND THEN COMPARE IT TO WHAT PROPOSED RATES YOU GUYS ARE LOOKING AT.
THAT IS THE EFFECTIVE NUMBER THAT IS CALCULATED.
BUT ON MAINTENANCE AND OPERATIONS, IF YOU GO BACK, ONE OF THE POSTINGS SAYS THAT ON $100,000 HOME, THE TAX RATE WILL BE WILL BE RAISED BY $0 ON MAINTENANCE AND OPERATIONS.
THAT'S ONE OF THE POSTINGS THAT'S OUT THERE THAT'S RELATED TO THIS SLIDE RIGHT HERE.
WE CAN GO TO THIS NEXT YEAR, AND THAT IS ALL RELATED TO THE GROWTH IN THE APPRAISED VALUES.
SO THAT IS WHY IT TALKS ABOUT ON A $100,000 HOME MAINTENANCE AND OPERATIONS WILL BE RAISED BY $0.
SO THAT'S CERTAINLY ONE OF THE CONFUSING POSTINGS THAT'S OUT THERE.
ARE THERE QUESTIONS I CAN ANSWER? OKAY. SO, MISS LAURA.
YES, MA'AM. ON ON OPTION TWO ON THE.
WHAT IS THE PERCENTAGE DECREASE ON THE TOTAL TAX BILL? IS IT IS IT STILL GOING TO BE 1.5% OR WILL IT BE A LITTLE MORE THAN THAT? SO ON THE TOTAL BILL, IT COMES IN JUST A LITTLE BIT MORE.
IT'S JUST RIGHT AROUND THAT 1.5% IN TOTAL.
[00:40:01]
AND THEN I JUST HAVE ONE OTHER QUESTION.SO WHEN WE VOTED ON THIS IN AUGUST, WE DID NOT HAVE THESE OPTIONS AT THE TIME.
SO WHAT HAS CHANGED SINCE SINCE AUGUST? SO IN AUGUST, WHEN WE WERE LOOKING AT THE TAX RATE, WE WERE LOOKING AT KIND OF THE UPPER END, THE HIGHEST TAX RATE THAT COUNCIL COULD OR MIGHT WANT TO LOOK AT.
SO WHAT WE WERE TALKING ABOUT WAS THE VOTER APPROVAL TAX RATE.
SO THE VOTER APPROVAL TAX RATE TAKES INTO ACCOUNT THAT THREE AND A HALF PERCENT INCREASE FOR MAINTENANCE AND OPERATIONS, ALONG WITH ALL THE AUTHORIZED DEBT THAT IS CURRENTLY OUTSTANDING, THAT IS BACKED BY PROPERTY TAXES.
SO THOSE NUMBERS WENT THROUGH A LARGE CALCULATION THAT CAME OUT WITH THE VOTER APPROVAL TAX RATE.
SO THAT WAS THE HIGH END ON AUGUST 2ND.
ALL Y'ALL WERE DOING WAS JUST.
PUT LIKE VOTING ON THE CEILING.
SO YOU DIDN'T WANT TO VOTE ON A LOWER RATE.
SO SINCE THEN, THERE'S BEEN DISCUSSIONS ABOUT FUNDING OF THE THE CIVIC CENTER PROJECT WITH PROPERTY TAXES IN THIS CURRENT YEAR.
AND WE AT THIS POINT IN TIME, DUE TO WHERE WE'RE AT ACTUALLY IN THE FISCAL YEAR, HOW MUCH TIME HAS PASSED, WE COULD TAKE IT OUT OF THE PROPERTY TAX RATE FOR THIS FIRST YEAR AND STILL ALLOW THE PROJECT TO MOVE FORWARD IF COUNCIL AS LONG AS EVERYTHING IS RESOLVED AND AND THEN IT WOULD NOT.
GO INTO THE TAX RATE UNTIL THE NEXT YEAR.
SO IT WOULD BE ON THE 2023 PROPERTY TAX RATE.
AND SO A LOT OF IT IS A FUNCTION OF WHERE WE ARE.
AND THAT'S WHAT TRIGGERS THAT FIRST DEBT SERVICE PAYMENT.
SO THAT'S JUST AN OPTION THAT COUNCIL COULD LOOK AT.
COUNCIL HAS DIRECTED THE CIVIC CENTER PROJECT.
WE DON'T SEE ANY POSSIBILITY OF OF THAT PROJECT MOVING FORWARD UNTIL SUCH TIME THAT WE COULD PUSH THAT TAX INCREASE TO OCTOBER OF 2023 JUST TO GET TO THAT ONE SPECIFIC ITEM.
SO A 40 CENT TAX RATE, 40 AND CHANGE WILL ALLOW US TO DO EVERYTHING THAT'S IN THE BUDGET.
THANK YOU, MISS LAURA. THAT'S ALL THE QUESTIONS I HAVE.
I'M SORRY, FRIDA. NO, NO, I'M GOOD.
THANK YOU. THAT'S ALL THE QUESTIONS I HAVE.
AND DO YOU HAVE SOMETHING ELSE? I WANT TO JUST ADD THAT THE MOTION LANGUAGE WE PUT PROPOSED MOTION LANGUAGE OUT THERE FOR ALL OF YOU ALL TO SEE.
AND WE GAVE YOU OPTIONS BASED ON THESE TWO OPTIONS.
AND IT HAS TO FOLLOW EXACTLY WHAT STATE LAW SAYS.
AND YOU'RE LOOKING AT LATE, OUR TAX RATE IS $0.44.
IF WE'RE GOING TO 40 CENT TAX RATE, HOW IS THAT AN INCREASE? THE WAY IT IS, AN INCREASE IN STATE LAW AGAIN, MAKES YOU GO BACK AND CALCULATE A NO NEW REVENUE RATE AND THAT'S A RATE THAT COULD PRODUCE THE EXACT SAME REVENUE AS THE PRIOR YEAR.
THAT RATE IS 39.6 CENTS, SO JUST SLIGHTLY LOWER THAN THIS 40 CENT TAX RATE.
AND SO IN THE MOTION LANGUAGE, THAT IS THE COMPARISON THAT IT IS SPEAKING TO.
IT'S NOT SPEAKING TO THE APPROVED RATE TO A PROPOSED RATE.
IT'S THE NO NEW REVENUE RATE TO THE PROPOSED RATE.
SO THANK YOU AND I APPRECIATE THAT.
OKAY, GREAT. SO I APPRECIATE THAT.
WONDERFUL. COUNCILMAN SAUER, DO YOU HAVE ANY QUESTIONS? NO, MA'AM, I DON'T. OK COUNCILMAN STANLEY QUESTIONS.
NO, MA'AM. COUNCILMAN SMITH, I HAVE A FEW QUESTIONS.
I'M JUST WONDERING HOW IS INFLATION IMPACTING OUR BUDGET THIS YEAR? SO INFLATION I THINK WE COVERED THAT WITH YOU GUYS.
DAY ONE OF THE BUDGET REVIEW IS INFLATION WAS COMING IN A LITTLE OVER 9%.
SO IT IS HAVING A MASSIVE EFFECT ON OUR BUDGET.
[00:45:09]
KEEPING UP AS MUCH AS POSSIBLE.BUT WE ARE BEING HIT IN EVERY LINE ITEM OF OUR BUDGET, JUST LIKE ANY BUSINESS, BUT ESPECIALLY IN THE ALL OF OUR CONSTRUCTION COSTS ARE GOING UP SIGNIFICANTLY.
BUT THE FUEL, THE FUEL FACTOR THAT'S INCLUDED IN OUR UTILITIES, IT'S AFFECTING THOSE.
AND THEN THERE'S A LOT OF PRESSURES IN THE EMPLOYMENT MARKET RIGHT NOW JUST BECAUSE OF THE LOW EMPLOYMENT RATE IN OUR COMMUNITY AND JUST THE PRESSURES BETWEEN BUSINESSES TO TRY TO GET STAFFED.
SO WE ARE CONTINUING TO SEE STAFFING SHORTAGES ALONG WITH HIGH INFLATION ON OUR OVERALL BUDGET.
MAYOR, DOES THAT ANSWER YOUR QUESTION? YES, IT DOES. THANK YOU.
I HAD A QUESTION ALSO ABOUT IF WE COULD MOVE TO THE TAX RATE COMPARISON, JENNY.
WHICH ONE ARE YOU THINKING, MAYOR? YEAH, EITHER. REALLY? THE 40? THE ONE THAT'S 40 CENT.
OKAY. TALK ABOUT THE DOLLAR BILL.
NOPE. I'M TALKING ABOUT THE COLOR COMPARISONS.
GOTCHA. BAR GRAPH, THE CITIES.
SO THAT IS COMPARING THEIR LAST YEAR RATE TO OUR THIS YEAR RATE.
TALK JUST A LITTLE BIT SPECIFICALLY ABOUT WHY DOES THAT MATTER? I MEAN, THIS THIS IS THE BEST WE CAN PRODUCE RIGHT NOW BECAUSE THEY'RE IN THE PROCESS.
SO WE CAN'T USE THEIR 2022 APPLES TO COMPARE TO OUR 2022 APPLE.
WE HAVE TO USE THEIR 2021 APPLES TO COMPARE TO OUR 2022 APPLES.
ABSOLUTELY. HOW DO YOU THINK THAT AFFECTS WHAT'S ON THIS CHART? WELL, AND I WANTED TO FLIP TWO MORE OVER BECAUSE I THINK ON THE PER CAPITA ONE, YOU'RE GOING TO SEE IT A LOT MORE.
WE DIDN'T HAVE THAT NUMBER BECAUSE THOSE HAVEN'T BEEN PRODUCED YET, OR THEY PROBABLY HAVE THEM INTERNALLY, BUT IT HASN'T BEEN PUSHED OUT NECESSARILY WHERE WE CAN WE CAN GET A HOLD OF THOSE, BUT WE STILL, WITH OUR APPRAISED VALUES GOING UP ALMOST 12% OVERALL IN THE CITY, WE ARE STILL AT THIS LOWER POINT IN COMPARISON TO THEIR VALUES THAT WE HAVEN'T EVEN SEEN WITH THE GROWTH RATE IS ON THOSE.
BUT KEEP IN MIND, IF CITIES IF ANY OF THESE CITIES DID SOME DEBT ISSUANCES THIS PAST YEAR, EVEN WITH THE MAINTENANCE AND OPERATING PIECE GOING DOWN, THEIR INS SIDE MAY BE GOING UP.
SO THEY MAY BE STAYING CLOSE TO WHERE THEY ARE OR POTENTIALLY GOING UP FROM WHERE THEY ARE.
IT'S GOING TO BE A UNIQUE YEAR TO SEE THE CHANGES COMING FORWARD.
BUT AGAIN, THIS IS THE BEST SNAPSHOT IN TIME THAT WE CAN SAY HERE'S OUR INFORMATION AND HERE'S WHAT WE CAN SEE THAT'S READILY PRODUCED BY ALL THESE OTHER CITIES THAT ARE SIMILAR SIZED.
DO YOU PROJECT THAT ONCE WE HAVE THAT INFORMATION AND WE CAN UPDATE 2022 NUMBERS TO OUR 2022 NUMBERS, WHAT WILL HAPPEN TO AMARILLO? WILL IT MOVE LEFT OR FURTHER RIGHT ON THAT GRAPH? I WOULD SAY IT'S GOING TO STAY VERY CLOSE TO WHERE IT'S AT.
SO I WAS A LITTLE SURPRISED TO SEE THAT WE WERE UP JUST SLIGHTLY, BUT I DON'T KNOW THAT IT'LL STAY THAT WAY ONCE WE GET THOSE FINAL APPRAISED VALUES IN AND THE TAX RATES THAT THESE ENTITIES ADOPT.
AND SO WE CAN WORK ON GETTING THAT UPDATED OUT TO COUNCIL.
OR WE COULD DO AN UPDATE IN A COUNCIL MEETING IF NEEDED.
YEAH. MR. CITY MANAGER I WOULD LIKE TO REQUEST THAT WE SEE THAT CHART UPDATED IN THE NEXT 60 DAYS OR WHENEVER WE THINK THAT INFORMATION IS.
AND THEN I'D LIKE TO BACK UP TWO MORE SLIDES.
[00:50:04]
IT'S SMALL, AND SO I'M NOT SURE THAT EVERYONE SITTING IN THE ROOM CAN SEE IT ALL.WITH OUR RATE AT $0.40, THAT PUTS US AT THE SECOND LOWEST TAX RATE OUT OF THESE 17 CITIES.
LUBBOCK IS JUST OFF OF CENTER.
AND CAN YOU READ WHAT THEIR TAX RATE IS? WITH OUR TAX RATE AT $0.40? WHAT IS LUBBOCK'S TAX RATE? LUBBOCK'S TAX RATE FOR 2021 WAS 52.3 TO $0.03.
SO I JUST THINK THAT IS GOOD FOR US AS A COUNCIL TO KEEP IN MIND.
I MEAN, I THINK OUR BEST COMPARISON CITY, OUR BEST SISTER CITY TO COMPARE COSTS OF OPERATION, SIMILAR ECONOMIES, SIMILAR SIMILAR REVENUE SITUATIONS IS TRULY LUBBOCK.
AND AND YOU CAN SEE THE DIFFERENTIAL THERE BETWEEN OUR TAX RATE AND LUBBOCK'S TAX RATE.
AND THEN THE AVERAGE LA JUST IT'S LITTLE PRINT, BUT THE AVERAGE TAX RATE FOR THOSE 17 CITIES IS WHAT IT'S 56.71 $0.07. SO WE ARE CLEARLY BELOW AVERAGE FOR OUR PEER GROUP OF EIGHT LARGER CITIES AND EIGHT SMALLER CITIES. I THINK THOSE ARE IMPORTANT THINGS TO POINT OUT IN AND IN MAKING OUR DECISIONS.
MAYOR TAX RATE. MAYOR, IF I COULD.
OH, GO AHEAD, EDDIE. I'M SORRY.
GO AHEAD. WELL, I JUST WANTED TO MAKE A COMMENT AND PERHAPS ASK ON THE NEXT GRAPH, COULD WE SEE ANY OF THESE OTHER CITIES? IF THEY ARE, DO THEY HAVE A JUNIOR COLLEGE THAT IS SUPPORTED BY PROPERTY TAX? SO MY COMMENT WOULD BE, I THINK WE DO MORE WITH LESS.
SO BECAUSE COMPETITIVELY WE'RE REALLY EVEN AT $0.40 WHERE IT WHAT WHAT'S AMARILLO COLLEGE'S TAX RATE? $0.09. 20.
IT'S ABOUT NINE. SO SO IF I'M JUST LOOKING AT MY TAX BILL PERSONALLY, WHETHER I LIVE IN AMARILLO OR I LIVE IN LUBBOCK, I DON'T PAY TAXES FOR A JUNIOR COLLEGE IN LUBBOCK. SO SO MY TAXES MAY BE COMPARABLE.
AND WE'RE WANTING TO COMPETE, YOU KNOW, IN APPLES TO APPLES WITH OTHER CITIES.
BUT THEN WE ALSO TAKE OUR SERVICES FURTHER THAN I THINK THEY HAVE TO.
AND SO I'M NOT ADVOCATING FOR OR AGAINST ANYTHING LIKE THAT.
I'M JUST I'M JUST DRAWING AN ATTENTION TO THAT.
THE CHART IS A GOOD CHART FOR REFERENCE, BUT UNLESS WE PUT IN THERE THESE OTHER CITIES AND DO THEY HAVE JUNIOR COLLEGES? I DON'T I DON'T REALLY THINK IT'S A FAIR COMPARISON.
I THINK WE DO A BETTER JOB THAN WHAT WE'RE REFLECTING.
SO, I MEAN, IT'S GOING TO EVEN SUPPORT THAT EVEN MORE SO.
OKAY. I PAUSED FOR JUST A SEC.
NOBODY'S JUNIOR COLLEGE RATES ARE REFLECTED IN THIS BAR GRAPH.
SO I DO I THINK YOU'RE BRINGING UP TOTAL TAX RATE.
I AM. BUT I, I JUST WANT TO CLARIFY EVERYTHING ON THIS CHART IS CITY TAX RATES ONLY.
SO LUBBOCK HAS A CITY TAX RATE LAST YEAR OF $0.52.
THIS YEAR WE'RE DISCUSSING A CITY TAX RATE OF $0.40.
AND THAT'S THE GAP THAT I WANTED TO HIGHLIGHT, WHAT THE COUNTIES DO, WHAT THE SCHOOL DISTRICTS DO, WHETHER OR NOT THEY HAVE A JUNIOR COLLEGE THAT'S PART OF THEIR OVERALL COMMUNITY TAX RATE.
BUT THIS CHART IS JUST SHOWING CITY TO CITY.
AM I UNDERSTANDING THAT IS CORRECT AND IS SIMILAR.
WE ARE ALL PROVIDING SOMEWHAT SIMILAR SERVICES.
IT MAY NOT LOOK AND FEEL EXACTLY THE SAME, I THINK, TO MR. STANLEY STANDPOINT, BUT WE'RE DOING ESSENTIALLY THE SAME THINGS WITH EACH OF THESE TAX RATES ACROSS TEXAS.
I THINK THAT'S WHAT OUR CITIZENS SEE ARE THE TOTAL TAX BILLS.
YOU KNOW, SOME HAVE JUNIOR COLLEGES, SOME DON'T.
THAT IS WHAT OUR CITIZENS SEE, WHICH IS WHERE WE TRY TO EXPLAIN MORE IN THIS GRAPHIC HERE, IS THAT WE'RE ONLY A PORTION OF THAT TOTAL BILL THAT THEY'RE SEEING.
[00:55:09]
SERVICES. ANNOUNCEMENTS ARE GOING TO BE A LITTLE BIT DIFFERENT THAN THAT THAT I THINK WE REALLY DO HAVE TO TALK ABOUT, BECAUSE IT DOES GO BACK TO WHAT COUNCILMAN STANLEY IS SAYING ABOUT HOW WELL WE TAKE CARE OF OUR MONEY.THE FIRST THING WOULD BE ON THIS ONE.
IF YOU LOOK AT WHAT MESQUITE RATE IS, OH NOT BROWNSVILLE.
YES. AND THEN GO DOWN HERE AND LOOK AT WHAT FRISCO IS.
RIGHT. AND PLANO, WHICH ARE THE TWO ABOVE US? YES. THEY'VE GOT A 44.6.
RIGHT. SO WHENEVER YOU GO TO THE NEXT SLIDE, YOU'LL FIND OUT.
SO WE'VE STAYED AT THE LOW END ON BOTH OF THESE.
YEAH. AND WHEN YOU LOOK AT THE NEXT SLIDE AND THEN YOU COME TO THE REALIZATION THAT SOMEBODY HAS A HIGH RATE, THEY HAVE VERY LOW PROPERTY VALUES, THEY END UP BEING VERY LOW 297 WHENEVER THEY HAVE A LOW TAX RATE, THEY TYPICALLY HAVE VERY HIGH PROPERTY VALUES, WHICH ENDS UP BEING FRISCO AND PLANO, WHO THEN BECOME THE TOP TWO.
AND LOOK AT WHERE WE MOVE ON THERE.
WE HAVE LOW TAX RATE AND WE HAVE LOW PROPERTY VALUES.
HECK OF A LOT MORE WITH OUR DOLLARS THAN ANY OTHER CITY IN THE STATE OF TEXAS.
HOWEVER, HISTORICALLY AND STILL CURRENTLY ARE WE ARE STILL AT THAT LOW TAX RATE, LOWER TAX RATE AND LOWER APPRAISED VALUES IN COMPARISON TO THE REST OF THE STATE. YEAH, THE OTHER THREE CITIES, THEY'RE NORMAL.
WE ARE. WE ARE VERY MUCH AN OUTLIER, YES.
OKAY. THANK YOU FOR TAKING TIME TO ANSWER THOSE QUESTIONS LAURA.
YES. ANY OTHER QUESTIONS? NO. OKAY.
MAYOR, I MOVED TO ADOPT ORDINANCE NUMBER 8005 THAT THE PROPERTY TAX RATE BE INCREASED BY THE ADOPTION OF A TAX RATE OF 0.40628, WHICH IS EFFECTIVELY A 2.3% INCREASE IN THE TAX RATE.
ANY QUESTIONS OR FURTHER DISCUSSION ABOUT THAT MOTION? HEARING NONE. WE DO HAVE TO DO THIS AS A ROLLING ROLL CALL VOTE.
SO IF YOU DON'T MIND, I'LL JUST CALL YOU OUT.
I THINK WE CAN DO IT BY RAISED HANDS.
IS THAT RIGHT? SO ALL OF THOSE IN FAVOR OF THE MOTION, WOULD YOU PLEASE RAISE YOUR HAND? OKAY. THAT'S FIVE VOTES FOR THE MOTION AND NONE OPPOSED.
AND THAT BRINGS US TO THE END OF OUR AGENDA TODAY.
THANK YOU FOR ARRANGING YOUR SCHEDULES TO BE AT THIS SPECIAL CALLED MEETING AND THE ONE ON THURSDAY.
THANK YOU.
* This transcript was compiled from uncorrected Closed Captioning.