HomeMy WebLinkAboutAgenda CC 06.29.2021 SpecialN otice of M eeting of the
Governing B ody of the
C ity of Georgetown, Texas
J une 2 9, 2 02 1
The Georgetown City Council will meet on J une 29, 2021 at 5:30 P M at City Council Chambers - 510
West 9th Street
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Le gislative Re gular Age nda
A Second 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
Adjournme nt
Ce rtificate of Posting
I, R obyn Densmore, C ity S ecretary for the C ity of G eorgetown, Texas, do hereby c ertify that
this Notice of Meeting was pos ted at C ity Hall, 808 Martin Luther King Jr. S treet,
G eorgetown, T X 78626, a plac e readily ac cessible to the general public as required by law, on
the _____ day of _________________, 2021, at __________, and remained so pos ted for
at leas t 72 c ontinuous hours prec eding the s cheduled time of said meeting.
__________________________________
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R obyn Dens more, C ity S ec retary
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City of Georgetown, Texas
City Council Special Meeting
June 29, 2021
S UBJEC T:
Second 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
I T EM S UMMARY:
Over the past five years the market value of homes in Georgetown has increased, from $4.9 billion in residential market
value in 2016, to $8.3 billion in 2021. The taxable value of homes has increased as a result. The State imposes a 10% cap
on the yearly increase in taxable value of homesteads, and the City currently offers the greater of a $5,000 or 1%
exemption of taxable value of homesteads. For tax year 2021 (FY2022), more than 80% of homes in Georgetown were at
or above the 10% state cap, compared to less than 20% last year.
The City Council approved a change in the exemption on first reading at a special called meeting on J une 17, 2021. The
Council supported the exemption to be the greater of $10,000 or 2%. For a change to be effective in the coming tax year
2021 (F Y2022), it must be adopted before J uly 1, per Texas Tax Code 11.13.
S P E C IAL C O N S ID E R ATIO N S:
This item must be adopted on two readings according to the City Charter, and the second reading must occur on or before
J une 30 for the change to take effect in the next year.
F I NANC I AL I MPAC T:
A $5,000 increase to the homestead exemption is estimated to result in an incremental $389,000 decrease in property tax
revenue for the City. P roperty tax revenue is split 46% toward General Fund operations such as public safety, and 54%
toward the repayment of tax-supported debt such as road and park projects.
S UBMI T T ED BY:
Sharon P arker
AT TAC HMENT S :
Description
P resentation
O rdinance
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Increase Homestead Exemption
Special Called Meeting June 29, 2021
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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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Dollar Value and Percent Change
•Approved on First Reading: Greater of $10K, or 2%
•Dollar change annual impact to City: ~$389K increment in lost revenue
($776k total in lost revenue)
•$180K increment for General Fund, which has a tax rate cap; $360K total in lost
revenue
•Dollar change annual impact to average taxable homeowner: ~$20 lower
tax bill
•$5K * 0.418 / 100 = $20.9
•$10K * 0.418 / 100 = $41.8
•Change from 1% to 2%
•$5K, taxable home value must be more than ~$500K to use 1% as “greater than”
•$10K, taxable home value must be more than ~$500K to use 2% as “greater than”
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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
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Background for Reference
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Market and Taxable Value History for GT
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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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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
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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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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 ten thousand dollars ($10,000) or two percent (2%),
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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