HomeMy WebLinkAboutAgenda CC 06.17.2021 SpecialN otice of M eet ing of the
Governing B ody of the
C ity of Georgetown, Texas
J une 17 , 20 21
The G e orgetown City Council will meet on J une 1 7, 2021 at 5:30 P M at City Co uncil Chambers - 510
West 9th Street
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Le gislative Re gular Age nda
A First reading of an ordinance of the City Council of the City of Ge orgetown, Texas establishing
the value o f the exemption from ad valorem taxes for a percentage of the appraised value of
residential ho mesteads; repealing co nflicting ordinances and resolutio ns; including a severability
clause; and setting an effective date -- Leigh Wallace, Finance Dire c to r
Adjournme nt
Ce rtificate of Posting
I, R o b yn Dens mo re, C ity S ec retary fo r the C ity of G eorgetown, Texas , d o hereb y certify that
this No tic e of Meeting was posted at C ity Hall, 808 Martin Luther King Jr. S treet,
G eorgeto wn, T X 78626, a p lace readily ac ces sible to the general pub lic as required by law, on
the _____ day of _________________, 2021, at __________, and remained s o posted for
at leas t 72 c ontinuous ho urs p receding the s ched uled time o f said meeting.
__________________________________
R o byn Dens more, C ity S ecretary
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City of Georgetown, Texas
City Council Special M eeting
June 17, 2021
S UBJEC T:
First reading of an ordinance of the City Council o f the City o f Georgetown, Texas e stablishing the value of the
exemption from ad valo rem taxes for a percentage o f the appraised value of reside ntial homesteads; repealing conflicting
ordinances and re so lutio ns; including a severability clause; and setting an effective date -- Leigh Wallace, Finance
Director
I T E M S UMMARY:
Over the past five years the market value of home s in Geo rgetown has increased, fro m $4.9 billion in residential market
value in 2016, to $8.3 billion in 2021. The taxable value of ho mes has increased as a result. The State imposes a 10% c ap
on the yearly inc re ase in taxable value of homeste ads, and the City currently offers the greater of a $5,000 or 1%
exemption of taxable value o f homesteads. For tax ye ar 2 02 1 (FY2022), more than 80 % of ho mes in Georgetown we re
at or above the 10 % state cap, compared to less than 20 % last year.
The City Counc il de sires to discuss and possibly take actio n to increase the value of the homestead exemption. For a
change to be effe c tive in the coming tax year 2021 (FY20 22 ), it must be adopted befo re J uly 1 , per Texas Tax Code
11.13.
This item will disc uss the financial impact to the City and the homeowners of adopting a change in exemption. The
attached ordinanc e is a draft for consideration and may be amended by the Council.
S P E C IAL C O N S IDE R ATION S:
This item must be adopted on two readings according to the City Charter, and the seco nd reading must occur on or befo re
J une 30 for the change to take effect in the next year.
F I NANC I AL IMPAC T:
A $5,000 incre ase to the ho mestead exemption is estimated to result in $389,000 le ss in pro perty tax revenue for the
City. P roperty tax revenue is split 46% toward G e ne ral Fund operations such as public safety, and 54% toward the
repayment of tax-supported debt such as road and park pro jects.
S UBMI T T ED BY:
Sharon P arker
AT TAC HMENT S :
Description
Inc reas e ho mes tead exemp tion
O rd inance
Page 3 of 16
Increase Homestead Exemption
Special Called Meeting June 17, 2021
Page 4 of 16
Background
Page 5 of 16
Market and Taxable Value History for GT
Page 6 of 16
Change in Homestead Capped Accounts
-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
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Current Homestead Exemption GT
•Adopted 1983 via ordinance
•$5,000 or 1% of market value, whichever is greater
•Current number of properties ~18,500
•Current value in lost property tax revenue, operations and debt sides
•~$389K total at current tax rate of 41.8 cents per $100 of valuation
•46% Operations and Maintenance to General Fund
•$180,000
•54% Principal and Interest for General Debt Service Fund
•$210,000
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Other Local Homestead Exemptions with WCAD
ENTITY Code ENTITY HS Amt HS %
CAU City of Austin $5,000 10
CCP City of Cedar Park $5,000 1
CGT City of Georgetown $5,000 1
CLE City of Leander $5,000 1
CLH City of Liberty Hill $5,000 1
GWI Williamson CO $5,000 1.5
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Current Other Exemptions
•Homestead exemption age 65 and older -$12,000
•Disabled exemption -$40,000
•Tax ceiling on amount of taxes paid for disabled or 65 and older –amount
varies
Page 10 of 16
Tax Code 11.13
•Must adopt the change before July 1 for it to take effect for the coming year
•Taxing unit may not adopt a percentage more than 20%
•Homeowner may not claim more than one residence
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Increase Options
Page 12 of 16
Dollar Value and Percent
•$10K, or 1%
•Dollar change annual impact to City: ~$389K increment in lost revenue ($776k
total)
•$180K increment for General Fund, which has a tax rate cap; $360K total
•Dollar change annual impact to average taxable homeowner: ~$20 lower tax bill
•Percent change –taxable home value must be more than ~$1M to use 1%
•$10K, or 1.5%
•Percent change –taxable home value must be more than ~$670K to use 1.5%
•$10K, or 2%
•Percent change –taxable home value must be more than ~$500K to use 2%
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Next Steps
•Council Action first reading, June 17 Special Called
•Council Action second reading, June 29 Special Called
•File updated exemption with Williamson Central Appraisal District
•No action needed from homeowners for currently filed homes
Page 14 of 16
Ordinance Number: ____________ Page 1 of 2
Description: Ad Valorem Exemption Ordinance
Date Approved: _________________
ORDINANCE NO. ___________
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GEORGETOWN,
TEXAS ESTABLISHING THE VALUE OF THE EXEMPTION FROM AD VALOREM
TAXES FOR A PERCENTGE OF THE APPRAISED VALUE OF RESIDENTIAL
HOMESTEADS; REPEALING CONFLICTING ORDINANCES AND RESOLUTIONS;
INCLUDING A SEVERABILITY CLAUSE; AND SETTING AN EFFECTIVE DATE.
WHEREAS, the Texas Tax Code Section 11.13 authorizes a percentage or amount exemption from ad
valorem (property) taxes on the appraised value of residential homesteads;
WHEREAS, pursuant to Ordinance No. 83-25, the City of Georgetown previously adopted an
exemption in the amount greater of five thousand dollars ($5,000) or one percent (1%) of the market
value of a residential homestead ;
WHEREAS, the Texas Tax Code Section 11.13 further provides that “[i]n addition to any other
exemptions provided by this section, an individual is entitled to an exemption from taxation by a
taxing unit of a percentage of the appraised value of his residence homestead if the exemption is
adopted by the governing body of the taxing unit before July 1 in the manner provided by law for
official action by the body. If the percentage set by the taxing unit produces an exemption in a tax
year of less than $5,000 when applied to a particular residence homestead, the individual is entitled to
an exemption of $5,000 of the appraised value. The percentage adopted by the taxing unit may not
exceed 20 percent.”
WHEREAS, the City Council finds that it is in the public interest to change the exemption at this time;
NOW, THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
GEORGETOWN, TEXAS THAT
Section 1. The meeting at which this ordinance was approved was in all things conducted in
compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551.
Section 2. Beginning tax year January 1, 2021, the City hereby adopts an exemption to ad valorem
taxes for residential homesteads in the amount of $10,000 or 1 percent, whichever is greater.
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Ordinance Number: ____________ Page 2 of 2
Description: Ad Valorem Exemption Ordinance
Date Approved: _________________
Section 3. If any provision of this ordinance or application thereof to any person or circumstance
shall be held invalid, such invalidity shall not affect the other provisions, or application thereof, of
this ordinance which can be given effect without the invalid provision or application, and to this end
the provisions of this ordinance are hereby declared to be severable.
Section 4. The Mayor is hereby authorized to sign this ordinance and the City Secretary to attest.
This ordinance shall become effective in accordance with the provisions of the Charter of the City of
Georgetown.
PASSED AND APPROVED ON FIRST READING on the ______ day of__________, 2021.
PASSED AND APPROVED ON SECOND READING on the ______ day of ________, 2021.
ATTEST: THE CITY OF GEORGETOWN:
________________________________ _____________________________________
Robyn Densmore, Josh Schroeder,
City Secretary Mayor
APPROVED AS TO FORM:
______________________________
Skye Masson, City Attorney
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