[00:00:01]
DO IT.THIS SATURDAY, UH, THE TIME IS EIGHT O'CLOCK.
I'M GOING TO CALL A SPECIAL CITY COUNCIL MEETING TO ORDER WOULD ALL.
PLEASE RISE FOR THE PLEDGE OF ALLEGIANCE IN TERMS OF THE REPUBLIC FOR WHICH IT STANDS.
ONE NATION UNDER GOD, INDIVISIBLE WITH LIBERTY AND JUSTICE AROUND THE CITY.
SECRETARY, PLEASE CALL THE ROLL.
MITCHELL RIZZO, ELLISON, ROSA FLORES, KILL HERE.
WE HAVE A QUORUM NEXT STEP, CITIZEN COMMENTS PERIOD.
AT THIS TIME, WE ASK ANYONE IN THE AUDIENCE WHO WISHES TO COME FORWARD AND SPEAK ON ANY HONOR, PLEASE DO.
SO WE ASK THAT YOU LIMIT YOUR COMMENTS TO THREE MINUTES AND YOU DIRECT THOSE COMMENTS TO MAYOR AND COUNCIL.
WE ALSO ASK THAT YOU FILL OUT A CITIZEN COMMENTS FORM AND SUBMIT THAT TO EITHER MYSELF OR THE CITY SECRETARY, UH, FIRST UP LAILA NINE, UM, THIS PAST TUESDAY, JUST FIVE DAYS AGO, I TOLD YOU I WAS CONFIDENT THAT YOU WOULD PROTECT OUR FIRST AMENDMENT RIGHTS, BUT THEN I WAS NOT SO CONFIDENT THAT YOU WOULD EVER PASS A HOMESTEAD EXEMPTION.
AND HERE WE ARE, I DON'T EASILY CHANGE MY OPINION.
SO I THANK YOU VERY, VERY MUCH FOR BEING HERE THIS MORNING, EVEN THOUGH IT'S EARLY.
AND I AM CONFIDENT NOW THAT YOU WILL PASS A HOMESTEAD EXEMPTION THIS MORNING, JUST THINK BIG IN YOUR DELIBERATIONS ON HOW LARGE THAT EXEMPTION SHOULD BE.
I FEEL PRETTY CONFIDENT THAT YOU WILL PASS THE HOMESTEAD EXEMPTION THIS MORNING, BUT I WANTED TO SPEAK IN FAVOR OF IT.
UM, I FEEL LIKE IT'S, IT'S PRETTY MUCH A GIVEN THAT THIS IS THE BEST TIME TO DO SUCH A, UH, PASS SUCH A MEASURE.
AND KYLE, BECAUSE OF OUR INCREASED, UH, UH, EVALUATIONS, EVERYBODY IS FEELING THE PAIN OF RIGHT NOW.
UM, THERE WOULD BE NO BETTER TIME POLITICALLY OR FISCALLY TO PASS THIS.
ALSO IN KYLE, WE, UM, INCENTIVIZE COMPANIES COMING HERE FOR THE BENEFIT OF OUR COMMUNITY.
AND I WOULD LIKE TO US TO ALSO INCENTIVIZE OUR RESIDENTS TO BE LONG-TERM MEMBERS OF THE COMMUNITY TO STAY HERE, NOT SELL THEIR HOMES FOR THE EQUITY.
THEY CAN GET OUT OF THEM AT THIS TIME, BUT TO STAY HERE AND BE MEMBERS LONG-TERM AND CONTRIBUTE LIKE YOU ALL DO.
MY NAME IS KAY BRUSH, AND I WOULD LIKE TO HAVE YOU CONSIDER MOVING UP THE AMOUNT OF THE HOMESTEAD EXEMPTION FOR THE 65 AND OLDER AND THE DISABLED.
I WOULD ALSO LIKE TO HAVE YOU CONSIDER A HOMESTEAD EXEMPTION FOR THE GENERAL CITIZENRY OF THE CITY PROPERTY OWNERS OR THE PEOPLE WHO PAY, PAY THE BURDEN OF THE SERVICES THAT THE CITY CAN OFFER.
UM, I ASKED THAT WE GET SOME EQUITY IN THE FACT THAT OUR HOME, NOT OUR HOME, OUR LAND VALUES HAVE RAISED 47,000, AT LEAST MINE.
I'M SURE OTHER PEOPLE'S IS HIGHER, BUT MINE ALONE HAS RAISED $47,000.
THE HOMESTEAD EXEMPTION FOR SENIORS AND DISABLED IS $30,000.
I ASK THAT YOU NOT HAVE SENIORS SELL THEIR HOMES BECAUSE THEY CAN NOT PAY FOR UPKEEP AND THEY CANNOT PAY FOR THEIR TAXES.
IT'S UNBELIEVABLE THAT SENIORS WOULD HAVE TO GIVE UP THEIR HOME BECAUSE THEY COULDN'T AFFORD THE TAXES.
I ASK YOU TO CONSIDER GIVING US THE OPPORTUNITY TO STAY IN OUR HOMES, BECAUSE THAT
[00:05:01]
IS WHAT MY GOAL IS.AND I ASK THAT YOU HELP US BE ABLE TO MAINTAIN OUR HOMES SO THAT WE DON'T HAVE TO JUST PAY OUR TAXES AND LIVE IN A TUMBLEDOWN SHACK.
IS THERE ANYONE ELSE WHO WISHES TO COME FORWARD AND SPEAK? OKAY, PLEASE STATE YOUR NAME FOR THE RECORD.
UH, GOOD MORNING, MAYOR AND COUNCIL.
UH, I LIVE IN BUTTON CREEK VILLAGE FOR THE LAST NINE YEARS.
UM, I'M NOT EVEN CLEAR ON IF THERE IS A DISABLED, UH, TAX EXEMPTION FOR THE CITY OF CO BECAUSE I ACTUALLY DO RECEIVE THE HAYES COUNTY, JUST DISABLED EXEMPTION.
UM, AND I DON'T GET ONE FOR THE CITY.
SO I'VE BEEN TRYING TO FIGURE OUT IF THERE'S LANGUAGE FOR THAT.
UM, I HOPE THERE IS, AND IT'S JUST ME NOT GETTING IT.
UH, BUT DEFINITELY THINK IT'S TIME TO INCREASE FOR ELDERLY, MAKE SURE DISABLED IS INCLUDED AND GIVE SOMETHING TO THE EXISTING HOMEOWNERS, UM, AS A BROAD HOMESTEAD EXEMPTION FOR EVERYBODY.
UM, I'M SURE IT'S HAPPENING EVERYWHERE, BUT IN BUNT CREEK VILLAGE LGI SOLD 40 TO 50 HOMES TO AMERICAN HOMES FOR RENT.
I ACTUALLY HAVE NO PROBLEM WITH ALL THE RENTERS THAT ARE MY NEIGHBORS, BUT I DO THINK GIANT CORPORATIONS LIKE THAT COMING IN AND BUYING THE, THAT MANY HOMES AT ONCE.
UM, YOU KNOW, THEY CAN SHARE A LITTLE BIT OF THAT BURDEN AND WE CAN GET A LITTLE BIT OF RELIEF FOR BEING THE HOMEOWNERS IN THE COMMUNITY.
THAT'S ALL THEY, UH, UH, FORMS AND COMMENTS THAT I HAVE.
IS THERE ANYONE ELSE WHO WISHES TO COME FORWARD? OKAY.
SEEING NONE, WE'RE GOING TO CLOSE IT AS AND COMMENTS.
IT IS NOW CLOSED NEXT UP, UH, AGENDA ITEM, NUMBER ONE, CONSIDERING POSSIBLE ACTION.
FIRST READING AN ORDINANCE OF THE CITY OF KYLE TEXAS ADOPTING A RESIDENTIAL HOMESTEAD EXEMPTION FROM AD VALOREM TAXES, PROVIDING FOR SEVERABILITY, PROVIDING FOR OPEN MEETINGS AND EFFECTIVE DATE CLAUSES AND PROVIDING FOR RELATED MATTERS.
THIS ITEM IS SPONSORED BY MR. UH, SELLERS WHOSE REQUESTS IT CAME AT THE REQUEST OF, UH, COUNSEL.
SO I DIDN'T KNOW IF
UH, STAFF HAS PREPARED TO ASSIST YOU IN YOUR DISCUSSIONS AND YOUR DELIBERATIONS ON THIS ORDINANCE.
UH, PERVEZ, OUR FINANCE DIRECTOR HAS LAID OUT SOME OPTIONS OF SCENARIOS, SCENARIOS BASED ON EITHER FLAT RATES AND OR PERCENTAGES, UH, DATE IN YOUR DISCUSSIONS.
UM, DO YOU WANT TO GO OVER THAT BRIEFLY WHENEVER COUNCIL'S RIGHT.
UM, SO I KNOW WHAT WAS PROPOSED LAST TIME BY A COUNCIL MEMBER FLOOR SCALE WEST TO KIND OF START WITH A 15,000 POINT.
UM, SO I DO HAVE SOME QUESTIONS.
WHAT IS, WHAT IS CURRENTLY SET IN PLACE FOR SENIORS? MARIN COUNCIL? UM, FOR THE RECORD I'M PERVEZ MAHEEN CITY'S DIRECTOR OF FINANCE.
SO YOUR QUESTION IS IN TERMS OF EXEMPTIONS FOR 65 AND OLDER, YES.
WE HAVE $30,000 IN EXEMPTION FOR 65 YEARS AND OLDER.
WE DO NOT HAVE AN EXEMPTION FOR DISABLED.
WE DO HAVE EXEMPTIONS FOR VETERANS.
UM, SO WHAT I WOULD LIKE TO PROPOSE THAT I BELIEVE IT MAKES SENSE TO ME.
I MEAN, DUE TO THE FACT THAT WE HAVE HAD SUCH AN INCREASE IN PROPERTY VALUES, IT'S ALMOST LIKE 50%, I BELIEVE OVER THE LAST TWO YEARS.
UM, I THINK IT MAKES SENSE TO ME TO DO THE EXAMINATIONS ON A PERCENTAGE INSTEAD OF A BASE VALUE, BECAUSE LET'S SAY THE MARKET CRASHES AND THEN THE HOMES LOSE VALUE.
THEN I DON'T WANT TO PUT THE CD IN A BIND IF WE HAVE A SET AMOUNT OR IF THE MARKET KEEPS GOING UP, THEN $15,000 WILL BASICALLY BE NOTHING.
SO I DON'T KNOW WHAT FIVE, SIX, 7% OF THE HOME APPRAISED VALUE WILL LOOK LIKE.
I DON'T KNOW IF THEIR CD CAN AFFORD SUCH A THING.
AND I WAS GOING TO CONSIDER MAYBE GIVEN ADDITIONALLY ONE OR 2% FOR VETERANS DISABLED AND SENIOR RESIDENTS.
I DON'T KNOW HOW THE REST OF COUNCIL FEELS ABOUT THAT, BUT I THINK THAT MAKES A LITTLE BIT MORE SENSE IN MY OPINION.
WE'LL JUST WAIT FOR MR. PEREZ TO HEAD BACK.
[00:10:09]
MS. PEREZ.UM, I'D LIKE TO ASK YOU A COUPLE OF QUESTIONS.
UH, FIRST ONE WOULD BE, UM, WHAT WILL WE HAVE TO DO TO ADD DISABLED TO THAT LIST OF THOSE THAT ARE GETTING THE, WHAT IS IT? 30% OR 35% DISCOUNT, 30,000, 30,000, 30,000.
UH, WHAT WOULD WE HAVE TO DO AS A COUNCIL? JUST VOTE ON IT AND THAT'S IT? I BELIEVE SO.
I ALSO THINK CITY ATTORNEY IS ONLINE VIRTUALLY, BUT WE DO NEED TO CONSIDER THAT AS A PROPERTY OWNER, THEY CANNOT HAVE BOTH FROM THE SAME JURISDICTION.
SO THEY COULDN'T DO THE OLDER AND THE, THEY COULDN'T DO THE, YEAH, THAT'S RIGHT.
BUT IF WE ADDED IT, SAY THE PERSON WASN'T 65, THEY COULD GET IT.
THEN WE COULD STILL ADD IT IN AND HELP A GROUP OF DISABLED PEOPLE IN OUR CITY.
UH, THE OTHER THING IS, UM, I'M NOT A BIG FAN OF TAKING IT UP TO A PERCENTAGE.
CAUSE I THINK, UM, IT'S NOT, WE'RE NOT TARGETING THE PEOPLE THAT WE WANT TO HELP OUT.
AND THOSE ARE THE PEOPLE THAT ARE REALLY STRUGGLING RIGHT NOW.
WHAT WOULD IT LOOK LIKE IF WE WERE TO GIVE THAT ACROSS THE BOARD? WHAT ARE THE DO'S AND DON'TS OF SOMETHING LIKE THAT, DOING IT IN A PERCENTAGE.
IF YOU'RE ASKING FOR MY RECOMMENDATION AS YOUR DIRECTOR OF FINANCE, IF I HAD TO CHOOSE BETWEEN A FIXED AMOUNT OF EXEMPTION VERSUS A PERCENTAGE, I WOULD HIGHLY RECOMMEND TO COUNCIL, EVEN THOUGH IT'S A POLICY DECISION, IT'S UP TO Y'ALL WHICH WAY Y'ALL WANT TO GO.
MY RECOMMENDATION WOULD BE WE, WE TAKE A FIXED EXEMPTION AMOUNT AND HERE'S THE REASONS THAT OFF THE TOP OF MY HEAD ON A PERCENTAGE BASIS, THE CALCULATION FOR THE EXEMPTION AMOUNT IS BASED ON THE TAXABLE ASSESSED VALUATION OF THAT HOMEOWNER'S HOMESTEAD.
SO ONE, IT WILL FLUCTUATE EACH YEAR, UM, ON, DURING DOWN ECONOMY, ECONOMIC TIMES, IT WILL COME DOWN DURING GOOD TIMES.
SO THAT FLUCTUATION IS A CONCERN.
SO THE HIGHER, THE HOME VALUE, THE MORE EXEMPTION YOU GET.
SO THEN WE GO BACK TO THE EARLIER DISCUSSIONS WE HAVE IN THIS COMMUNITY EAST VERSUS WEST OF 35.
SO YOU'LL HAVE HOMES ON THE WEST SIDE WITH HIGHER VALUES THAT WILL HAVE LARGER EXEMPTIONS AS COMPARED TO HOMES ON THE EAST OF 35.
AND KYLE, AND THAT WILL HAVE LOWER VALUES AS COMPARED TO WEST WILL HAVE LOWER EXEMPTIONS.
IN ADDITION, I WOULD RECOMMEND WHATEVER EXEMPTION ROUTE WE GO THAT WE STAY CONSISTENT.
SO RIGHT NOW THE 65 AND OLDER IS BASED ON A FIXED EXEMPTION AMOUNT.
SO IF WE GO AND SELECT AN AND, AND ADOPT A GENERAL HOMESTEAD THAT WE ALSO USE THE SAME FIXED AMOUNT IS ALSO, IT'S EASIER FOR HOMEOWNERS TO BUDGET WHAT THEIR MORTGAGE PAYMENTS WILL BE.
IT DOESN'T FLUCTUATE WHEN YOU'RE ON A FIXED AMOUNT ON OUR SIDE OF THE FENCE, AS CITY FOR OUR BUDGETING PURPOSES, OUR RATE SETTING, UH, PROCESS.
IT IS ALSO LESS COMPLEX TO DO A FIXED RATE VERSUS PERCENTAGE.
WHEN YOU DO A PERCENTAGE, YOU REALLY LITERALLY HAVE TO KNOW THE VALUE OF EACH HOMESTEAD IN KYLE AND YOU'RE TALKING ABOUT THOUSANDS.
SO IT MAKES IT MORE COMPLICATED.
UH, EQUITY IS THE BIGGEST CONCERN FROM MY PERSPECTIVE YES, SIR.
UM, SO, SO THANK YOU FOR EXPLAINING THAT ACROSS, AS FAR AS THE DIFFERENCE BETWEEN FIXED AND PERCENTAGE, I GUESS WHEN, WHENEVER WE'RE LOOKING AT, UM, I GUESS CITY, UH, SERVICES AND STUFF FOR THE FUTURE, WHAT WE'RE SAYING IS THAT IF WE GO WITH A FIXED AMOUNT ACROSS THE BOARD, YOU WOULD HAVE MORE OF A GENERAL IDEA OF WHAT WOULD BE NEEDED IN SPECIFIC AREAS OF THE CITY.
AND WOULD THAT HELP, UM, IDENTIFY CERTAIN HOMES WITH A CERTAIN FIXED RATE THAT THE CITY COULD BE ABLE TO HELP WITH? SO FOR IF YOU'RE ASKING THEM ABOUT BUDGETING PURPOSES, YES, SIR.
IF YOU GO WITH THE FIXED AMOUNT BASED EXEMPTIONS, IT IS A LOT LESS COMPLICATED IN TERMS OF SETTING THE RATES, PROPERTY TAX RATES, AND FOR PRIORITIZING OUR BUDGET REQUESTS.
[00:15:01]
OKAY.BECAUSE WHATEVER THE EXEMPTION AMOUNT WILL BE, WE'LL HAVE TO BE CONSIDERED WITHIN THE BUDGET PROCESS.
IT BECOMES ANOTHER ONE OF THOSE REQUIRED FUNDING REQUIREMENTS, JUST LIKE PRINCIPAL AND INTEREST PAYMENTS ON DEBT.
SO IF COUNCIL WAS TO ADOPT EXEMPTION, THIS WILL ALSO BE ONE OF THOSE MANDATED AMOUNTS THAT HAS TO BE INCORPORATED WITHIN THE BUDGET, AFTER THAT EVERYTHING ELSE IS PRIORITIZED AND FUNDED.
SO IF YOU WENT WITH A PERCENTAGE, IT'D BE BASICALLY KIND OF LIKE PLAYING THE MARKET, RIGHT.
WHETHER WE HAVE A, LIKE WE HEAR RIGHT NOW THAT THERE'S A POSSIBLE RECESSION COMING SO FORTH, THEY WOULD HAVE TO A V E THE HOME VALUES WOULD, WOULD FLUCTUATE.
AND IT WOULD MAKE IT JUST A LITTLE BIT MORE DIFFICULT WHERE WE'RE SAYING, IF IT COMES TO A BUDGET FOR THE CITY BY DOING PERCENTAGES, BECAUSE WE DON'T KNOW THE PERCENTAGE OF VALUES IN 2024, WHETHER HAVING A FLAT RATE YOU'RE SAYING THAT WE COULD BE ABLE TO SEE WHERE WE'RE AT AND, AND RESIDENTS CAN ALSO BUDGET THEIR TAXES FOR THE YEAR.
UH, PREVIOUS, CAN YOU PLEASE GO OVER THE A HUNDRED PERCENT, 80% AT 75 AND 60? EXPLAIN WHAT THAT IS? YES, SIR.
IT SEEMS LIKE THE HOMESTEADS ARE REDUCED.
SO, UH, MARIN COUNCIL, LET ME WALK YOU THROUGH FIRST, HOW THE ANALYSIS IS LAID OUT.
IF YOU'LL RECALL IN OCTOBER OF 21 COUNSEL ASKED STAFF TO DO AN ANALYSIS OF EXEMPTIONS AND, UH, BOTH NOT JUST HOMESTEAD EXEMPTIONS, BUT ALSO LOOK AT THE 65 AND OLDER EXEMPTIONS.
WHAT OPTIONS DO WE HAVE AND WHAT WILL IT COST? SO WE DID AN ANALYSIS IN OCTOBER, VERY SIMILAR TO WHAT YOU HAVE IN FRONT OF YOU.
UH, YESTERDAY I UPDATED THAT MODEL BASED ON THE PRELIMINARY, UM, PRELIMINARY TAX ROLL WE RECEIVED FROM HAYES COUNTY, UH, APPRAISAL DISTRICT.
CAN I GET A COPY OF THAT EMAIL, THE CUSTOMER PRESSURE? I DON'T HAVE A PDF.
SO I UPDATED THE MODEL BASED ON THAT.
I ALSO ADDED A COUPLE OF, UH, ADDITIONAL INFORMATION FOR YOUR BENEFIT.
SO LET ME FIRST GO OVER THE LAYOUT OF THE, OF THE, SO THE TOP HALF OF THE ANALYSIS IS FOR AGE 65 AND OVER EXEMPTIONS.
AND TODAY WE'RE TALKING ABOUT THE GENERAL HOMESTEAD, WHICH IS ON THE BOTTOM HALF OF THIS SAME DOCUMENT.
SO WORKING FROM LEFT TO, RIGHT, IF YOU LOOK AT THE GENERAL RESIDENTIAL HOMESTEAD EXEMPTION, YOU HAVE FOUR PAGES FIRST PAGE, YOU'LL SEE IN RED AT A HUNDRED PERCENT, THEN IT GOES TO 80, 75 AND 70.
AND I'LL EXPLAIN TO YOU IN JUST A MINUTE, WHAT THAT DOES.
SO WORKING FROM LEFT TO RIGHT, WE HAVE OPTION ONE THROUGH 10.
WE HAVE EXEMPTION AMOUNTS FROM 5,000, ALL THE WAY TO 50,000 NUMBER OF HOMESTEADS.
THESE ARE THE NUMBER OF HOMES WITHIN THE CITY OF KYLE BASED ON PROPERTY TAX RECORDS, 14,029.
SO IF YOU JUST TAKE THE FIRST OPTION, IF YOU, IF COUNCIL WAS TO CONSIDER 5,000 WITH 14,000 HOMES, THE EXEMPTION VALUE TAXABLE VALUE THAT WE WOULD EXEMPT WOULD BE 70 MILLION, ONE 45,000.
THEN IF YOU TAKE THE TAX RATE, HOW CITY'S CURRENT TAC ADOPTED TAX RATE OF 50 82, THAT WOULD PER HOMESTEAD, THAT WOULD BE $25 AND 41 CENTS.
THE ESTIMATED TAX REVENUE THAT WE WOULD EXEMPT WOULD BE 356,000 4 77.
AND THEN AS YOU WILL RECALL, OUR TAX RATE IS MADE UP OF TWO COMPONENTS, MAINTENANCE AND OPERATIONS AND INS, WHICH IS FOR DEBT SERVICE.
SO I HAVE BROKEN DOWN THAT TOTAL TAX REVENUE THAT WE WOULD EXEMPT.
WHAT WOULD THE GENERAL FUND HAVE TO EXEMPT AND WHAT THE DEATH SERVICE FUND WOULD HAVE TO EXEMPT? SO THAT'S HOW IT'S LAID OUT.
[00:20:01]
80%, 75% AND 70, OR DOES THAT MEAN AT A HUNDRED PERCENT? WE'RE ASSUMING THAT ALL SINGLE FAMILY HOMES WOULD QUALIFY FOR HOMESTEAD EXEMPTION.AND IN REALITY, THAT IS NOT THE CASE.
SO THIS IS THE UPPER LIMIT, WORST CASE SCENARIO.
SO HOW DO WE FIGURE HOW MANY HOMES HAVE HOMESTEADS IN KYLE? BECAUSE WE DON'T HAVE A GENERAL EXEMPTION.
YOU CAN JUST TAKE THE 65 YEAR OLD BECAUSE ONLY A CERTAIN PORTION OF OUR POPULATION HAS THOSE HOMESTEAD EXEMPTIONS.
SO I HAD TO DEFER BACK TO, OKAY, WHAT OTHER JURISDICTION ALLOWS HOMESTEAD EXEMPTIONS IN KYLE FOR HOMEOWNERS IN COP? SO WE HAVE ACC, WE HAVE SCHOOL DISTRICT AND WE HAVE THE COUNTY.
SO I WENT WITH LET'S LOOK AT HOW MANY HOMES IN KYLE HAVE ACC HOMESTEAD EXEMPTIONS LAST YEAR, IF YOU LOOK AT THE LAST YEAR'S DATA, AS IT'S ABOUT 65%, 65% OF TOTAL SINGLE FAMILY HOMES ARE HOMEOWNERS ARE CLAIMING AS THEIR HOMESTEAD.
WHEN I LOOK AT THE CURRENT PRELIMINARY NUMBERS WE RECEIVED FROM HAYES COUNTY, THEY'RE NOT VERY RELIABLE AT THIS POINT BECAUSE WE HAVE A WHOLE LOT OF HOMES UNDER PROTEST.
SO I DON'T HAVE A REAL CLEAN DATA, BUT HISTORICALLY WE'VE BEEN SOMEWHERE BETWEEN 65 AND 70%.
AND THE REASON FOR THAT IS SOME HOMES ARE SECOND VACATION HOMES.
THEY'RE OWNED BY CORPORATIONS.
THEY'RE RENTED OUT THE AIRBNB.
SOME HOMEOWNERS HAVE OTHER PROPERTIES THAT IS THEIR PRINCIPAL RESIDENCE.
SO YOU CAN'T CLAIM TWO HOMESTEADS IN THE STATE OF TEXAS.
AND NOW TEXAS IS ALSO LOOKING AT, IF YOU HAVE HOMESTEADS IN OTHER STATES, YOU CAN NOT CLAIM ONE IN TEXAS ANYWHERE.
SO IT, IT, IT GETS TO BE VERY CHALLENGING IN DETERMINING HOW MANY HOMESTEADS, BUT LOOKING AT HISTORICALLY HOW MANY HOMESTEADS WE HAVE THAT ARE CLAIMING ACC OR COUNTY OR SCHOOL DISTRICT HOMESTEADS.
UH, WE HAVE ABOUT 70% ROUGHLY.
SO WHAT I'VE DONE IN THIS ANALYSIS FIRST PAGES AT A HUNDRED PERCENT, THIS IS YOUR UPPER LIMIT, WORST CASE SCENARIO.
THEN I'VE GONE DOWN TO 80%, 75% AND 70%.
SO IT'S UP TO COUNCIL, WHICH ONE YOU WOULD PREFER THAT I HELP IN THE DISCUSSIONS IN TERMS OF WHAT THOSE NUMBERS MEAN.
MY RECOMMENDATION WOULD BE THAT WE TAKE SOMEWHERE BETWEEN 70 AND 75.
WE CAN LOOK AT 70, OR WE CAN LOOK AT 75%.
WE WON'T KNOW THE FINAL NUMBERS UNTIL WE HAVE THE CERTIFIED TAX ROLL.
AND THAT DOESN'T HAPPEN UNTIL JULY 25TH.
ALL RIGHT, DO WE HAVE, UH, FURTHER DISCUSSIONS OR MOTIONS? I WANT TO GET A MOTION ON THE TABLE.
I'D LIKE TO MAKE A MOTION THAT WE CONSIDER $15,000 EXEMPTION AND ADD A DISABLED AS WELL TO $30,000 TO SAY EXEMPTION SEVENTY-FIVE PERCENT CHART.
THE MOTION IS TO ADD A GENERAL RESIDENTIAL HOMESTEAD EXEMPTION IN THE AMOUNT OF $15,000, UH, WITH, UH, A $30,000 EXEMPTION FOR DISABLED AND TO WORK OFF OF THE 75% CHART.
UH, IS THERE A SECOND ON THAT MOTION? I WILL SECOND THAT MOTION.
UH, IS THERE FURTHER DISCUSSION CASPER PARSLEY? I JUST DON'T THINK 15,000 IS NEARLY ENOUGH TO WHAT WE HAVE RIGHT NOW.
HOME PRICES LIKE WE HAVE ABOUT 50% INCREASE IN THE HOME PRICES, WHICH MEANS THE CDS GETTING A LOT MORE MONEY.
I THINK 15 IS ABSOLUTELY NOTHING.
SO I WOULD, THAT'S WHY I WAS CONSIDERING HAVING A PERCENTAGE BECAUSE WE GET A RECESSION AND IT TURNS OUT THAT WE'RE NOT GETTING NEARLY ENOUGH OR THE HOME PRICES KEEP GOING UP 15,000 IS GOING TO BE A SCENT.
SO I KNOW IT'S A LOT MORE DIFFICULT FOR US TO CONSIDER THAT, BUT I WOULD THINK TAKING IN CONSIDERATION THE ECONOMY RIGHT NOW,
[00:25:01]
IT WILL MAKE SENSE TO ME, FOR US TO DO THIS DECISIONS BASED ON A PERCENTAGE.THAT WAY, IF THE RESIDENTS ARE STRUGGLING BECAUSE WE CAN PAY BARELY PAY BILLS, THEN YOU KNOW, UM, THEY'RE GOING TO GET AN EXEMPTION THAT KIND OF TIES UP WITH THE PRICE OF THE HOME.
AND IF WE'RE GONNA DO, YOU KNOW, A B FLAT RATE, I WILL SAY PROBABLY START AT 45,000.
THAT WILL BE, AND I DON'T KNOW IF WE CAN EVEN DO BRACKETS BY THE PRICES OF THE HOME, LIKE HOMES FROM THIS AMOUNT TO THIS AMOUNT, GET 15 FROM THIS AMOUNT TO THIS AMOUNT, THEY DO 30 FROM THIS AMOUNT TO THIS AMOUNT, 45.
AND I WILL HATE TO SAY IT LIKE EAST AND WEST PRICES.
IT, I JUST FEEL LIKE EVERYBODY IN GENERAL IS STRUGGLING.
SO IF WE'RE GOING TO DO A FLAT AMOUNT, IT NEEDS TO WEIGH BE WAY HIGHER THAN 15.
UH, IS THERE ANY OTHER DISCUSSION MAY PROTEST? YEAH.
UM, I'M NOT IN FAVOR OF PERCENTAGE CAUSE THAT HELPS YOU HAVE FLUENT PEOPLE IN OUR, UH, YOU KNOW, AREA.
I THINK WHAT WE'RE TRYING TO DO IS GET THOSE THAT ARE REALLY, REALLY STRUGGLING AT THE BOTTOM LINE.
I THINK THIS IS WHY WE'RE HERE TODAY.
UM, YOU KNOW, I REALLY GOT EAST WEST SIDE, I LIVE ON THE WEST SIDE.
I KNOW THAT, UH, THAT I THINK A PERCENTAGE WOULD PROBABLY BENEFIT, UH, THE AREA I LIVE IN, UH, WHICH WOULD, YOU KNOW, IT'S ALWAYS GREAT TO HAVE SOME ADDED, UH, IN INSURITY'S, BUT I JUST FEEL LIKE WE'RE HERE TODAY BECAUSE WE'RE TARGETING THOSE THAT ARE STRUGGLING IN, UH, TO STAY IN THEIR HOMES.
UH, SO I, I THINK WE REALLY NEED TO STAY IN THAT FOCUS WITH THAT.
AND, UM, THE ONLY REASON I THREW OUT 15% IS THAT WHEN THE MAYOR HAS FOR PARTS DISCUSSION, NOBODY SAID ANYTHING.
SO I WAS LIKE, WHAT? SO D IS PEOPLE IN FAVOR OF THIS OR NOT? SO I WAS, I JUST THREW OUT A NUMBER THAT I THOUGHT MAYBE ALL OF COUNCIL WOULD BE FAVORABLE FOR.
CAUSE I WANT TO SEE SOMETHING PAST TODAY, BUT I'M WILLING TO PULL THAT BACK.
IF THERE IS ANOTHER NUMBER THAT SOMEONE WOULD THROW OUT, I WAS JUST THROWING OUT A NUMBER, A NUMBER THAT I THOUGHT PEOPLE WOULD ALL BE ABLE TO AGREE WITH.
AND THAT WAY WE COULD HAVE THIS VOTE, TAKE ONE, VOTE, BE ABLE TO MOVE ON AFTER THE DAY AND NOT HAVE TO TAKE A SECOND MEETING, BUT I'M OPEN TO RETRACT THAT NUMBER.
IF THERE'S A CONSENSUS AROUND THE DIOCESE TO RAISE IT, UH, IS THERE ADDITIONAL DISCUSSION CATS WERE FORCED CAT, THANK YOU.
AND I DO WANT TO THINK, UH, COUNCIL MEMBERS HAVE FOR THE MOTION, UM, CAUSE I HAD NO IDEA WHERE WE WERE GOING TO START AT AND IT'S THE BEGINNING.
UM, BUT I CERTAINLY DID NOT SECOND IT, UM, AND WITH THAT SAID, I THINK WE DO NEED TO LOOK AT A HIGHER NUMBER AS FAR AS GIVING REAL RELIEF TO THE RESIDENTS.
I KNOW COUNCIL MEMBER PARSLEY MADE MENTION OF THE FACT THAT SOME HOMES HAVE INCREASED BY 50%.
HOWEVER, MY HOME HAS INCREASED BY A HUNDRED PERCENT AND MY LAND HAS MORE THAN THREE-FOURTHS DOUBLED.
AND SO I'M NOT NECESSARILY, UM, IMPRESSED.
I TOOK A DAY OFF WORK AND I WENT AND I PROTESTED MY TAXES AND THAT'S NOT NECESSARILY THE CITY'S FAULT.
THIS IS, THESE ARE NOT CITY NUMBERS.
THESE ARE NUMBERS PROVIDED BY THE COUNTY.
HOWEVER, WHAT WE CAN CONTROL AS A CITY IS OUR CITY RATE IN OUR CITY EXEMPTION.
AND SO, UM, I WOULD LIKE TO SAY THAT WE DON'T LOOK AT ANY NUMBER BELOW 40,000 TO GIVE REAL RELIEF TO RESIDENTS BECAUSE IF I'M, I'M LOOKING AT THESE NUMBERS, UM, THE HOMESTEAD AT $45,000 FOR A VALUE OF 473,000 GIVES A RELIEF OF $228 AND 69 CENTS.
AND PEREZ, IS THAT A MONTH OR IS THAT A YEAR? THAT'S YOUR ANNUAL TAX BILL.
SO IF YOU BREAK THAT 2 28 DOWN DIVIDED BY 12 MONTHS, UM, WHICH I DID NOT HAVE MY CALCULATOR UP, BUT IF YOU TAKE 2 28, 69 DIVIDED BY 12, WE'RE GOING TO GIVE YOU GUYS A TAX BREAK OF, UH, $19 A MONTH.
AND ALTHOUGH I KNOW THAT'S NOT, THAT'S NOT A LOT.
I ALSO AM AWARE THAT IT'S GOING TO TAKE A TAKE AWAY $2.4 MILLION FROM THE CITY.
SO AS WE SIT UP HERE AS ELECTED OFFICIALS, WE HAVE TO FIGURE OUT WHAT IS BEST FOR THE CITY.
KNOWING THAT WE HAVE ROADS THAT WE HAVE DRIVEN UPON THAT NONE OF US REALLY LIKE VERSUS WHAT IS REALLY GOING TO AFFECT OUR RESIDENTS.
SO, UM, I WILL ASK FOR A LITTLE BIT OF GRACE AS WE MAKE THESE DECISIONS, UM, BECAUSE THEY'RE NOT EASY.
$2.4 MILLION IS A LOT OF MONEY TO A CITY.
UM, BUT $19 IS NOT A LOT TO A RESIDENT.
SO WE'RE GOING TO TRY TO HOPEFULLY MANEUVER AROUND THAT AND MAKE THE BEST DECISION.
BUT WITH THAT SAID, I WOULD NOT VOTE FOR ANYTHING LESS THAN $40,000 CUSTOMER TOBY'S.
UM, MS. FLORES, GAIL, YOU AND I ACTUALLY HAD A GOOD CONVERSATION EARLIER THIS YEAR.
I REMEMBER WHEN WE WERE TALKING ABOUT WHAT OUR GOALS WOULD BE OR, YOU KNOW, ON OUR END,
[00:30:01]
UM, IT WAS MORE OF A RNR ROADS AND RELIEF.AND WE KNEW THAT THERE'S A BIG STRUGGLE OUT THERE WITH EVERYBODY, UH, WITH, UH, HOME PRICES AND ALSO WITH YOUR DAILY LIVING EXPENSES.
SO I KNOW OUR TAX BASE HAS NOT INCREASED OVER THE YEARS, CORRECT IN THE VOTING SESSIONS, BUT, UH, PROPERTY VALUES IN KYLE HAVE SKYROCKETED.
AND WE HAVE HAD A LOT OF SUCCESS WITH DEVELOPMENTS IN CITY PROJECTS, BUT, UH, I, I, I DO AGREE THAT IT IS TIME THAT US AS A COUNCIL NEED TO REALLY SERIOUSLY GIVE, UH, START LOOKING AT THE FINANCIAL RELIEF TO OUR RESIDENTS, INCLUDING OUR TAXPAYERS.
UM, IF WE PASS THIS, WHAT, WHAT THE AMOUNT WE HAVE, UM, I WANT TO SAY TO EFFECTIVELY, EFFECTIVELY COMMUNICATE TO OUR CAR RESIDENTS, DEVELOP A PLAN OF ACTION AND AN EFFECTIVE YET EFFICIENT APPLICATION PROCESS, WHATEVER WE DECIDE AND TO BE ABLE TO ACCESS THESE EXEMPTIONS AND MAKE IT EASY TO APPLY.
I THINK THAT'S ONE OF THE MAIN FOCUS WE ALSO HAVE TO LOOK AT.
I KNOW WE'RE ALL KIND OF, UM, TORN ON THE NUMBER.
UM, BUT THE PRICES OF OUR HOUSES HAVE JUST INCREASED SO MUCH.
AND, UM, I GUESS A PROPOSAL THAT I WOULD BRING WOULD BE THE, UM, AT LEAST THE 50,000 OFF THE PROPERTY VALUATION AND AT AN 80%, BUT I WOULD LIKE TO GET OTHER PEOPLE'S FEEDBACK ON THAT.
WELL, MY FEEDBACK IS, I'M NOT SO SURE THAT THE NUMBER WE'RE GOING THE 80% OR 75% OR 70%, THAT'S JUST KIND OF, I THINK A GUIDE GUIDING MARK FOR US TO LOOK AT, TO HAVE A SENSE OF WHAT THAT'S GOING TO DO TO IT, TO OUR BUDGET.
SO WE DON'T GET TO PICK THE NUMBER, THE HOME, THE RESIDENTS PICK THE NUMBER THEY'RE, THEY'RE THE ONES WHO FILED THE HOMESTEADS.
BUT SO I WOULD THINK SOMEWHERE BETWEEN, AND AS MORE AND MORE FOLKS RENT, UM, UH, THAT, THAT NUMBER PROBABLY OVER TIME IS GOING TO GO DOWN.
SO IN KYLE, I WOULD THINK WE, WE MIGHT, IT MIGHT BE POSSIBLE THAT WE ACTUALLY HAVE, UH, A HIGHER PERCENTAGE OF RESIDENTS WHO RENT SINGLE FAMILY HOMESTEADS AS OPPOSED TO A PURCHASE.
BUT, UH, AND CERTAINLY THAT IS THE TREND MOVING, UH, MOVING FORWARD.
THAT'S WHAT ALL THE TRENDS SHOW.
SO, UH, MY COMMENTARY ON THIS IS, IS, IS A LITTLE BIT DIFFERENT.
UH, I DON'T NECESSARILY CONSIDER THIS MOTION TO BE ONE PENNY OF TAX RELIEF, UH, TO THE COMMUNITY.
UH, I BELIEVE IT IS, UM, MORE ALONG THE LINES OF SHIFTING TAX, UH, UH, THE TAX BURDEN FROM ONE GROUP OF PEOPLE TO ANOTHER.
UH, AND THAT IS THE ONLY WAY TO PROVIDE MEANINGFUL TAX RELIEF TO FOLKS IS TO, UH, HAVE MORE, UM, UH, PROPERTIES THAT SHARE A, UH, PIECE OF THE PIE AND DIVERSIFYING YOUR REVENUE STREAM SO THAT YOU CAN LOWER THE AMOUNT OF, UH, TAX REVENUE THAT YOU COLLECT, UH, FROM PROPERTY TAXES, UH, OR TO, UM, UH, ACTUALLY BE ABLE TO LOWER YOUR COST OF SERVICES AND REDUCE YOUR COST OF SERVICES.
SO, UH, THAT'S, THAT'S JUST THE CHALLENGE.
SO IF WE, IF WE GO WITH A 40 OR 45 OR 50,000 OR 15,000 NUMBER, LET'S SAY IT'S 50 AND THAT'S, WE'LL CALL IT TWO AND A HALF MILLION DOLLARS OFF OF THAT.
THAT NUMBER IS GOING STRAIGHT INTO THE BUDGET PER PREVIOUS, AND JERRY, AND WHOEVER'S PREPARING THE BUDGET.
UH, THEY GO ADD THAT TO THE BUDGETARY LINE ITEM.
AND IF WE'RE NOT GOING TO COLLECT IT FROM THE HOMEOWNERS WHO OWN HOMES, THEN, UH, WE HAVE TWO CHOICES.
WE EITHER REDUCE SERVICES BY TWO AND A HALF MILLION, UH, OR WE INCREASE REVENUES.
UH, UH, WE INCREASE THE TAX RATE, UH, IN ORDER TO ACCOMPLISH THAT.
SO WHILE IT MAY BE BENEFICIAL TO THE SINGLE FAMILY HOMEOWNERS, UH, IT WILL BE DETRIMENTAL IN ORDER TO BALANCE IT OUT IF WE DON'T CUT TO EVERYONE ELSE.
AND THAT WOULD BE ALL OF OUR BUSINESS OWNERS WHO WOULD PICK UP THE TAB.
SO THE, THE, THE EXEMPTION THAT WE DO HERE, THAT, THAT BALANCES OUT COME, COME BUDGET SEASON THAT SAID, UH, I THOUGHT THAT MS RAINA'S COMMENTS WERE, UH, FAIRLY COMPELLING.
IF, AS LONG AS WE HAVE OUR MIND AROUND WHAT WE'RE DOING HERE, UM, THERE IS SOME VALUE TO THE COMMUNITY IN SINGLE FAMILY, RESIDENTIAL HOMEOWNERS, UH, THEMSELVES, UM, BEING, UH, INCENTIVIZED TO REMAIN SUCH.
AND SO FOR, FOR THAT REASON, I CAN GET AROUND IT.
I'M JUST HOPING THIS COUNCIL DOESN'T HAVE, AND CUSTOMER FLORIST KALE'S COMMENTS WERE CORRECT.
UH, YOU KNOW, THAT I'M HOPING WE WERE NOT THINKING
[00:35:01]
THAT WE'RE WE'RE PROVIDING, THIS IS ONLY ONE HALF OF THE COIN.THIS IS REALLY EASY TO PASS A BIG HOMESTEAD EXEMPTION, UH, AND MAKE CERTAIN PEOPLE IN THE COMMUNITY FEEL GOOD WHILE OTHERS UH WON'T UH, OR MAYBE JUST WILL BE UNAWARE AND JUST WILL COMPLAIN GENERALLY ABOUT WHY DO THEIR TAXES KEEP GOING UP? UH, THE MAJORITY OF TAXPAYER DOLLARS WILL PROBABLY GO UP, YOU KNOW, WE'LL FEEL LIKE THEIR TAXES ARE GOING UP AS A RESULT OF THIS.
BUT, UM, I DO THINK THAT IT IS, UH, WITHIN OUR PURVIEW TO INCREASE THE, OR TO CREATE A HOMESTEAD EXEMPTION, OTHERS DO.
UH, AND I THINK THAT IT DOES SERVE AS AN TO HOME OWNERSHIP.
AND THAT'S AN ARGUMENT THAT I CAN GET BEHIND.
UM, I WOULD LOVE FOR US TO COME TO AGREEMENT ON A NUMBER HERE AND, AND NOT BE TOO STUCK ON, UH, TAKING A VOTE ABOUT ONE NUMBER OR ANOTHER.
UH, IT WOULD BE GOOD IF WE COULD ALL GET ON THE SAME PAGE THERE, BUT IT MAY NOT HAPPEN.
THOSE ARE MY COMMENTS, UH, CUSTOMER FLOURISH CAP.
I WOULD LIKE TO ASK OUR FINANCE DIRECTOR HIS OPINION REGARDING THE, UM, CAUSE I'VE HEARD THIS STATEMENT ONCE BEFORE FROM A RESIDENT AND I DIDN'T QUITE UNDERSTAND HOW ADDING A HOMESTEAD EXEMPTION WOULD INCREASE THE TAX RATE FOR OTHER HOME HOMEOWNERS, UM, THAT MAYBE HAVE, UH, RENTAL PROPERTIES, WHICH I CAN ALWAYS WE'LL CONSIDER A BUSINESS IF YOU HAVE A RENTAL PROPERTY.
UM, IS THAT A VALID STATEMENT OR CONCERN A AND THEN B COULD YOU EXPLAIN TO US HOW WE COULD USE THOSE NUMBERS FOR MNO AND INS WHEN WE DECREASE? COULD WE TAKE, I KNOW WE CAN ADJUST BOTH SIDES.
HOW WOULD THAT LOOK AS WELL? OKAY, SO YOU HAD TWO QUESTIONS.
SO BEFORE I GET TO THE TWO QUESTIONS, LET ME ADD A POINT OF CLARIFICATION FOR COUNCIL TO BE AWARE OF AS YOU'RE GOING THROUGH YOUR DELIBERATIONS.
WHEN IT COMES TO EXEMPTIONS, THERE IS A MINIMUM THRESHOLD AND A MAXIMUM THRESHOLD THAT WE HAVE TO KEEP IN MIND.
THE MINIMUM IS THOU SHALL NOT GIVE EXEMPTIONS LESS THAN 5,000.
THAT'S THE MINIMUM, THE UPPER LIMIT IS THOU SHALL NOT EXCEED 20% OF THE TAXABLE S S VALUATION.
SO WE HAVE TO KEEP THOSE TWO NUMBERS IN MIND AS WE ADOPT THIS OR WORK THROUGH THIS.
SO BACK TO YOUR QUESTION ABOUT A LANDLORD, HIS OR HER COSTS OF OPERATING A RENTAL FACILITY, JUST LIKE ANY COSTS THAT THAT LANDLORD HAS TO BEAR, WHETHER IT'S MAINTENANCE, UTILITIES, LANDSCAPING, ROOF, REPAIRS, TAXES, PART, AND PARCEL OF THAT COST STRUCTURE.
SO HOW THEY MANAGE THAT, THAT'S UP TO THEM.
THEY CAN DECREASE SOMETHING, THEY CAN ABSORB SOMETHING TO MAKE ROOM FOR IT, OR THEY CAN RAISE THE RENT.
SO IT'S, THAT'S PART OF THAT PROCESS.
SO YOUR SECOND QUESTION WAS JUST HOW WE CAN, AND JUST TO CLARIFY, BEFORE I GO FORWARD, I JUST WANT TO MAKE SURE THAT HOMESTEAD IS NOT GOING TO AUTOMATICALLY INCREASE, UH, ANY KIND OF RATES OR, UM, TAXES FOR A HOMEOWNER, JUST BECAUSE, OR I, YOU KNOW, A RENTER OR A BUSINESS, I SHOULD SAY, JUST BECAUSE WE IMPLEMENT A HOMESTEAD DOES NOT AUTOMATICALLY MEAN THAT, THAT, THAT IS NOW GOING TO FALL ON TO PEOPLE WHO OWN HOME RENTALS.
SO IS THAT OKAY? SO I CAN, I CAN EXPLAIN TO YOU FROM A BUDGETING PERSPECTIVE, HOW STAFF WILL DEAL WITH THIS AFTER COUNCIL MAKES A FINAL DECISION.
SO WHATEVER THAT EXEMPTION AMOUNT IS, WE WILL HAVE TO FIGURE OUT WHAT IS THE DOLLAR VALUE OF THE MNO TAX REVENUE THAT WILL NO LONGER COME INTO THE GENERAL FUND AND PREPARE A BUDGET THAT TAKES THAT INTO CONSIDERATION AND BALANCES IT WITH ALL OTHER NEEDS OF THE CITY AND WITH THE HELP OF THE COUNCIL THAT Y'ALL PRIORITIZE, WE COME UP WITH A FINAL BUDGET.
SO THERE'S TWO WAYS OF DOING THAT.
YOU CAN ABSORB IT, CUT SOMEWHERE ELSE.
THAT IS LESS OF A PRIORITY, OR WE INCREASE THE ONLY BUTTON TO INCREASE IS THE TAX RATE, DEPENDING ON WHERE WE LAND ON THE TRUTH IN TAXATION CALCULATIONS, WE THERE'S A THRESHOLD AFTER WHICH YOU HAVE TO GO TO THE VOTERS.
UH, I WOULD RECOMMEND THAT WE KEEP OUR TAX RATES SUCH THAT WE STAY BELOW THAT CEILING.
WHAT USED TO BE THE OLD ROLLBACK RATE.
SO I DON'T KNOW IF THAT ANSWERED YOUR QUESTION,
[00:40:01]
SORRY.I JUST WANT TO MAKE SURE IMPLEMENTING A HOMESTEAD IS NOT GOING TO DIRECTLY AFFECT THE, THE AMOUNT THAT NON-HOMESTEAD PEOPLE ARE GOING TO HAVE TO PAY, BECAUSE THEY'RE GOING TO HAVE TO PAY A CERTAIN AMOUNT EVERY YEAR ANYWAYS, RIGHT? SAY ONE HOME PAYS A HUNDRED DOLLARS A MONTH, BUT THEY'RE RENTERS.
THIS HOME IS A HOMESTEAD, AND NOW IT GETS AN EXEMPTION RATE THIS HOUSE.
SO IT'S STILL GOING TO HAVE TO PAY THE RENTERS ARE STILL GONNA HAVE TO PAY A HUNDRED DOLLARS, RIGHT? IT DOESN'T AUTOMATICALLY INCREASE JUST BECAUSE WE GIVE THIS PEOPLE A HOMESTEAD EXEMPTION.
IT'S NOT, IT HAS TO BE BALANCED.
THAT'S, THAT'S WHY I'M ASKING.
AND IF IT'S, IF IT'S TRUE, I WOULD WELCOME THAT INFORMATION.
SO WHAT I'M ASKING PEREZ, I UNDERSTAND THAT, BUT I'M GOING TO RESPOND TO YOU.
WHAT PREVENTS SAID WAS THAT THE TAX RATE WILL HAVE TO INCREASE IF IT IS A COUNCIL PRIORITY FOR US TO NOT CUT SERVICES, BECAUSE WE ARE GIVING IT TO, UH, THE SINGLE FAMILY, RESIDENTIAL HOMEOWNERS WHO LIVE IN THERE.
IT AFFECTS EVERYBODY, NOT JUST THE, THE NON HOMESTEAD PEOPLE.
I DON'T THINK IT'S FAIR TO USE IT AS AN EXAMPLE, THAT PEOPLE WHO RENT THROUGH HOMES WILL HAVE AN INCREASE BECAUSE THAT INCREASED NOT ONLY AFFECTED THEM, IT'LL AFFECT THE WHOLE CITY.
I JUST WANT A FAIR ASSESSMENT OF THIS.
AND I'M NOT SAYING WHAT YOU'RE SAYING IS INCORRECT.
I'M JUST SAYING I WANT TO BE TRANSPARENT AND OPEN AND FAIR.
SO WHEN WE MAKE THIS VOTE, WE COMPLETELY UNDERSTAND WHAT WE'RE VOTING ON.
UM, THAT'S WHAT I'M, THAT'S WHAT I'M TRYING VERY HARD TO DO AS WELL.
BUT IT IS, IT IS ALWAYS THE CASE THAT MATH BALANCES BUDGETS BALANCE.
SO IF YOU REDUCE HALF A BILLION DOLLARS OFF THE TAX ROLLS EXCLUSIVELY IN ONE CATEGORY, SINGLE FAMILY, HOMEOWNERS WHO OWN THEIR PROPERTIES, WE WILL EITHER HAVE TO CUT HALF A BILLION DOLLARS IN VALUATION AND THE CORRESPONDING BUDGET TO KEEP THE TAX RATE THE SAME, OR WE WILL HAVE TO INCREASE THE TAX RATE IN ORDER TO MAKE THAT WORK.
THAT'S JUST HOW, AND JUST TO INCREASE IT, BECAUSE THAT ALSO GOES TO A VOTE AS WELL, WHICH IS GREAT.
IF THE WHOLE, THE QUESTION IS UP TO THE COUNCIL AS TO WHETHER WE WANT TO INCREASE THE TAX RATE.
I THINK THE ANALYSIS WAS THAT $15,000 IS ABOUT 1 CENT IN THE CURRENT NEW VALUATIONS.
SO IF WE DID 45, WE'RE TALKING ABOUT A 3 CENT TAX RATE INCREASE THAT CORRESPONDS IF YOU WERE A RENTER AND IT IS A PASS THROUGH TO WHATEVER THAT NUMBER IS $254 PER YEAR, UH, GOES TO, UH, INCREASED RENTS.
AND IT'S MORE COMPLICATED THAN THAT, BUT THERE IS STILL A, THE NUMBERS HAVE TO BALANCE IS ALL I'M SAYING THAT IS THE NO, I AGREE.
AND I ALSO AGREE THAT A RENTAL BUSINESS IS A BUSINESS.
SO WE ARE NOT LOOKING FOR RELIEF FOR BUSINESSES.
AGAIN, WE ARE LOOKING FOR RELIEF FOR HOMEOWNERS, OKAY.
THE RE UH, THE WAY THAT RENTING MATES IS VERY PRO TIP.
SO YOU AND I'VE HAD THIS DISCUSSION A FEW TIMES COMES FROM OVERKILL, AND WE TALKED ABOUT WHAT IS A GREAT RENT RATE FOR PEOPLE.
AND WE'RE LOOKING AT SINGLE FAMILY DWELLINGS.
WE, WE LOOK AT WHAT THE RENT RATES ARE.
ARE THEY AFFORDABLE OR NOT INCREASING THE RATE ON A BUSINESS WHO RENTS OUT PROPERTY WILL INCREASE THE RATE ON THAT PERSON.
WHO'S RENTING THAT PROPERTY AS WELL.
AND THAT'S, I'M PRETTY SURE YOU'RE GETTING IT.
I JUST THINK I COMPLETELY UNDERSTAND IT, BUT THIS MEETING IS NOT ABOUT BUSINESSES, THIS MEETING, AND THEN I UNDERSTAND RENTERS LIVE HERE.
THAT IS SOMETHING THAT WE CAN NOT CONTROL, BUT WHAT WE CAN CONTROL IS THE EXEMPTION FOR HOMEOWNERS.
AND THAT IS WHY WE ARE HERE MEETING.
SO LET'S, LET'S GO FOR MOTIONS.
LET'S, LET'S JUST TRY TO GET TO A NUMBER WE'RE JUST GOING TO SIT UP HERE AND DEBATE THIS FOREVER.
I'D LIKE TO RETRACT MY MOTION.
THAT'S AN AMENABLE D IS THERE A NEW MOTION CUSTOMER PARCELING I'D LIKE TO MAKE A MOTION TO APPROVE A HOMESTEAD EXEMPTION FOR REGULAR RESIDENTS? I MEAN, HOMEOWNERS HAVE A $40,000 EXEMPTION AND THEN A $50,000 ONE FOR DISABLED VETERANS.
AND OVER 65 SECOND, ONLY FOR DISCUSSION, THE MOTION IS MADE BY COUNCILMEMBER PARTIALLY SECONDED BY CUSTOMER FORCE, KALE THAT WE PROVE A HOME GENERAL HOMESTEAD EXEMPTION IN THE AMOUNT OF $40,000.
UH, AND WE INCREASE THE, UH, 65 AND OVER HOMESTEAD EXEMPTION FROM 30,000 TO 50,000 AND INCLUDE DISABLED AND VETERANS.
IS THERE DISCUSSION ON THAT MOTION AGAIN? I LIKE TO SECOND, SO WE COULD JUST HAVE THE DISCUSSION THAT IS, I THINK IT'S A THING TO DO ALWAYS.
UM, AND SO MY QUESTION WOULD BE TO PEREZ IF THERE IS A 40,000 FOR A GENERAL EXEMPTION AND THEN ANOTHER 50,000 FOR DISABLED AND VETERANS, CAN THAT BE STACKED ON TOP OF EACH OTHER? THAT HAS TO BE SO MEANING IF THE HOMEOWNER IS 65 AND OLDER? NO.
SO LET'S JUST SAY DISABLED, RIGHT? SO IF THEY'RE DISABLED AND THEY'RE A HOMEOWNER, WILL THAT BE STACKED? BECAUSE WHAT
[00:45:01]
I THOUGHT I UNDERSTOOD WAS DISABLED AND, AND VETERAN, OR COULDN'T BE STACKED, BUT CAN A GENERAL EXEMPTION AND A DISABILITY EXEMPTION BE STACKED ON TOP OF EACH OTHER.I'M GOING TO LET THE CITY ATTORNEY ADDRESS THAT.
I'M NOT SURE SHE LOCKED AND LOADED.
I'M RE I'M AGREEING THAT, BUT I DON'T.
I BELIEVE THAT THOSE ARE, THEY COULD CLAIM BOTH IS WHAT I, WHAT I'M SAYING IT IS, IT IS MY GENERAL UNDERSTANDING THAT YOU CAN STACK BOTH.
I DON'T KNOW IF YOU CAN STACK BOTH DISABILITY AND VETERAN, BUT I THINK YOU CAN STACK HOME INSTEAD AND EITHER DISABILITY OR VETERAN.
SO THAT WOULD, THAT WOULD GIVE ME CONCERN BECAUSE THAT WOULD MAKE THAT 90,000.
BUT I JUST WANT TO MAKE SURE THAT'S CORRECT.
IF YOU COULD CONFIRM WHAT I'M THINKING, I'M GOING TO SUGGEST TO YOU ALL.
AND I DON'T KNOW IF THE MATH REQUIRES IT, BUT SINCE THE, AS PREVIOUS HAS NOTED, THERE'S A MINIMUM AMOUNT AND A MAXIMUM AMOUNT FOR WE HOMESTEAD EXEMPTION.
AND SO, UM, WHEN YOU ADOPT A SPECIFIC DOLLAR AMOUNT, THERE'S THE POTENTIAL THAT, THAT COULD EXCEED THE 20%.
I DON'T KNOW IF THAT'S A REALITY OR NOT, BUT WHAT, WHAT I WOULD DO IN THE WORDING OF THE ORDINANCE WITH WHATEVER YOU ADOPT IS IF YOU ADOPT A SPECIFIC NUMBER AMOUNT, A SPECIFIC AMOUNT OF AN EXEMPTION, IT WOULD BE THAT AMOUNT UP TO 20% OF THE APPRAISED VALUE.
IF YOU UNDERSTAND WHAT I'M SAYING.
SO THAT, THAT IF YOU ADOPT AN EXEMPTION, THAT FOR SOME REASON, FORCES SOMEBODY ABOVE THE 20%, WE'LL NEED TO NOTE THAT THAT CAP IS 20%.
SO I'LL, I'LL TAKE CARE OF THAT IN THE DOCUMENT, BUT IT JUST WANT TO MAKE YOU AWARE OF THAT.
THAT THAT'S MY RECOMMENDATION WHEN YOU ADOPT A SPECIFIC DOLLAR AMOUNT, IS THAT IT GETS LIMITED THAT IT'S THAT AMOUNT, BUT UP TO 20% OF THE APPRAISED VALUE.
SO, UH, SO PREPARES OUR CURRENT TAXABLE VALUE IN THE CITY.
SO ACCORDING TO THE NEW TAX RULES IS 4.2 BILLION, 4.8, 4.8 BILLION.
SO THAT'S ROUGHLY 1,000,000,009 OR 900 MILLION.
SO I THINK WE'LL BE UNDERNEATH THAT, BUT WE ARE DEFINITELY TALKING ABOUT TAKING SOMETHING LIKE 15% OF THE ENTIRE VALUE OF THE CITY OFF THE TAX ROLLS WITH THIS, JUST TO BE CLEAR THAT THAT WILL HAVE AN IMPACT ON OUR DISCUSSIONS HERE IN A COUPLE OF MONTHS.
LET ME, LET ME THAT, BECAUSE WHAT I GAVE YOU WAS JUST FOR SINGLE FAMILY.
SO LET ME LOOK AT WHAT HIS COUNTY HAS GIVEN US FOR CITYWIDE AND WHILE YOU'RE LOOKING THAT UP, WE ALSO DON'T HAVE THE ANALYSIS FOR THE DISABLED AND THE VETERANS.
WE JUST HAVE THE ANALYSIS FOR 65 AND OVER.
SO IF WE ADD DISABLED AND VETERANS AND WE INCREASE THAT NUMBER TO 50,000, THE EXEMPTION VALUES, UH, RECORDED HERE IS 96.5 MILLION, BUT IT WOULD OBVIOUSLY BE SUBSTANTIALLY HIGHER.
I WOULD ASSUME WE HAVE, I DON'T KNOW, MAYBE AS MANY VETERANS AS RESIDENTS, HOME HOMEOWNERS OVER 65.
SO THAT NUMBER COULD POTENTIALLY DOUBLE, I JUST DON'T KNOW, CAUSE WE DON'T HAVE THE ANALYSIS.
SO THIS THE PRELIMINARY 20, 22 CERTIFIED ESTIMATE AS OF APRIL IS 5.7 BILLION CITYWIDE.
IF WE ADDED FOUR 20 AND UNDER THE A HUNDRED THAT'S FIVE 20, SO THAT'S SOMETHING LIKE 10% OFF THE BOOKS, CUSTOMER TICKETS.
SO I GUESS WHAT IT WOULD HAVE TO DO IS WE WOULD HOW WE WOULD WORD IT IN THE ACTUAL ORDINANCE ITSELF.
UM, WE WOULD GO WITH SENIOR CITIZEN, UH, UH, OR DISABLED VETERAN CITIZEN WHERE YOU HAD YOUR 40, AND THEN YOU HAD YOUR 50, I GUESS THAT'S WHAT WE'RE GETTING AT.
SO WHAT WARS IT IS GOING TO BE ONE OR THE OTHER IS WHAT WE'RE SAYING.
YOU HAD A MINIMUM OF 40,000 AND THEN WHEN IT CAME TO DISABLED OR VETERAN, YOU'D HAVE UP TO 50,000 UP TO 90.
SO IT WOULD ACTUALLY, SO THEY WOULD ACTUALLY STACK ON TOP OF EACH, I THINK THAT'S WHAT I'M HEARING.
AND THEN, SO WHAT IT WOULD BE IS YOU'RE SAYING THAT WOULD TAKE 10% OFF OF OUR BUDGET FOR THAT.
[00:50:01]
ON A ROUGHLY YEARLY BASIS, 2 MILLION WOULD BE TAKEN OFF PER YEAR OF, UM, FROM THE GENERAL FUND FOR, FOR CITY SERVICES OR OPERATIONS COSTS.NO, THERE'S A DUPLICATION IN THERE.
SO WE, WE ARE ALREADY GRANTING UP TO 30,000 FOR 65 AND OLDER.
SO IF YOU LOOK AT THAT TABLE, WE'VE ALREADY TAKEN 58 MILLION EXEMPTED FROM VALUE.
SO IF YOU GO FROM 30,000 TO 50,000, YOU'RE ONLY ADDING ANOTHER 40 MILLION, NOT THE ENTIRE HUNDRED MILLION PLUS THE ADDITION OF VETERANS AND DISABLED, WHATEVER THAT NUMBER IS.
WE DON'T KNOW THE DISABLED CURRENTLY.
I DON'T HAVE A COUNT OF HOW MANY DISABLED WE DO HAVE A COUNT OF THE VETERANS.
SO WHAT IF WE WERE TO SAY THE GENERAL WILL BE A SET AMOUNT, LIKE THE 40 AND THEN FOR ANYBODY ELSE THAT QUALIFIES AS A HOME OWNER AND ALSO DISABLE UP TO THAT 20%, WHATEVER IT IS.
UM, I GUESS IT WOULDN'T BE 90, BUT IF 90 IT'S OVER THE 20%, THEN IT WILL BE UP TO THAT 20% WHAT THEY COULD GET.
DOES THAT MAKE SENSE? NO, I UNDERSTAND YOUR, YOUR, YOUR PROPOSAL, BUT I THINK I WOULD LEAVE THAT UP TO PAIGE.
CAN THAT BE WORDED SUCH THAT BETWEEN 65 AND OLDER IN GENERAL HOMESTEAD CANNOT EXCEED 20% OF THE HIV WHEN YOU UNDER THE STATUTE, THE 20% CLEARLY APPLIES TO THE RESIDENTIAL REGULAR RECORD RESIDENTIAL HOMESTEAD.
THERE'S NOT, THERE'S NOT A CAP ON THE DISABLED.
UM, IT WOULD CERTAINLY MAKE IT CHALLENGING FOR HAYES COUNTY APPRAISAL DISTRICT TO CALCULATE THE TAX BILL BECAUSE CURRENTLY NO ONE ELSE IS DOING SOMETHING LIKE THAT.
WE'LL HAVE TO CHECK WITH THEM EVEN IF IT'S FEASIBLE WELL, AND I THINK WE'RE, THE NUMBERS ARE 10%, SO WE'RE NOT GOING TO, WE'RE NOT GOING TO GET CLOSE TO THAT, THAT NUMBER.
I, YOU KNOW, I'D LIKE TO HEAR FROM ALL OF COUNCIL AND TRY TO COME UP WITH A NUMBER.
I MEAN, WE CAN DEBATE THIS ALL DAY, BUT LET'S TRY TO FIND A NUMBER THAT WE CAN ALL AGREE.
WHETHER IT'S A 20%, 30%, 40%, LET'S TRY TO FIND A NUMBER.
LET'S TRY TO ADD A DISABLED AS WELL TO THE $30,000 EXEMPTION.
I THINK IF WE FOCUS ON THAT NUMBER, WE COULD PROBABLY, UH, FIND A HAPPY MEDIUM HERE, SOMETHING THAT WOULD PASS AND THAT EVERYONE WOULD BE, UH, HOPEFULLY ACCEPT AND WHAT ALSO BRINGS SOME RELIEF TO THE RESIDENTS.
SO IF EVERYBODY HAS A NUMBER I'D LIKE TO HEAR IT ANY FURTHER DISCUSSION.
SO, UM, I WANT TO THANK THE COUNCIL FOR GREEN TO MEET HERE.
AND THEN WE HAVE ALL SEVEN, UH, PARTICIPATING TODAY.
UM, YOU KNOW, WE FOUND OUT THAT WE HAD A DEADLINE OF JULY 1ST IN ORDER TO GET THESE EXEMPTIONS IN PLAY, UH, FOR THE NEXT FISCAL YEAR.
SO, UM, YOU KNOW, I, I KNOW IT WAS CHALLENGING.
YOU KIND OF GET THAT TURNAROUND ON SUCH A QUICK NOTICE, BUT THAT WAS THE GOAL HERE.
UM, I HAVE TO BE HONEST WITH MY THOUGHTS ON THIS.
IT MAY BE VERY DIFFERENT FROM EVERYONE ELSE.
UM, I DON'T THINK WE'RE REALLY GOING ABOUT THIS IN THE, WHY IS THIS WAY? UM, YOU KNOW, I, I HEAR DIFFERENT NUMBERS BEING THROWN OUT, BUT I'M NOT REALLY HEARING WHY, UH, OR THE NUMBERS BEING THROWN OUT.
WHAT BROUGHT YOU TO THE CONCLUSION TO GET TO THAT NUMBER? I KNOW WE CAN BE INFLUENCED BY VARIOUS DIFFERENT THINGS COMING AT US IN ORDER TO MAKE THESE DECISIONS.
UM, YOU KNOW, THIS IS THE FIRST TIME THE CITY IS ADOPTING A HOMESTEAD EXEMPTION, UM, OF THIS KIND.
AND, YOU KNOW, AS OUR CITY HAS CERTAINLY GROWN AND THE REVENUE HAS INCREASED FOR MANY DIFFERENT AREAS, YOU KNOW, THAT HAS PUT OUR CITY IN A BETTER POSITION.
UM, THE SERVICES HAVE INCREASED, THE DEMAND HAS INCREASED, YOU KNOW, UM, I THINK IT IS IMPORTANT TO, TO THINK ABOUT THE TOTALITY OF THE LEDGERS.
UM, I UNDER, I AGREE WITH THE COMMENTS
[00:55:01]
THAT, UH, POPPY DONORS THAT RAN OUT THAT AS A BUSINESS THEY'RE RUNNING, BUT THERE IS A, THERE IS A SIDE OF, OF PEOPLE AND I'M ONE OF THOSE THAT YOU SEE THOSE, THOSE RENTS INCREASE, UH, AS THAT PASS THROUGH COMES ALONG.SO THOSE ARE RESIDENTS AS WELL.
YOU KNOW, I THINK IT'S INTERESTING, THERE'S, THERE'S A NUMBER OF DIFFERENT TERMS BEING THROWN AROUND THAT ARE USED KIND OF, UM, TOGETHER, BUT A HOMEOWNER AND A RESIDENT AREN'T NECESSARILY THE SAME THING.
UM, AND SO OUR RESIDENTS, OUR HOMEOWNERS, OUR RESIDENTS ARE RENTERS, UM, AND THIS IS THIS DECISION IMPACTS ALL OF THEM.
UM, AND SO I, I CERTAINLY APPRECIATE THE COMMENTS BY THE FINANCE DIRECTOR EARLIER ABOUT EQUITY, BECAUSE I THINK THAT'S SOMETIMES FORGOTTEN IN OUR DECISIONS THAT WE MAKE, UH, OF HOW THIS IMPACTS PEOPLE ALL ACROSS THE ASSOCIATE, UM, ECONOMIC, UH, SPECTRUM AND THE ECONOMICAL SPECTRUM.
UM, YOU KNOW, EVERYBODY'S HURTING FROM VALUATIONS GOING UP, BUT YOU THINK ABOUT IT, IT'S A SUPPLY AND DEMAND THING.
I HEAR RESIDENTS JUSTIFIABLY CONCERNED ABOUT THEIR VALUATIONS GOING UP, BUT ALSO HERE AT THE SAME TIME, FRUSTRATION ABOUT HOUSING COMING IN AND IT'S SUPPLY AND DEMAND A LARGE REASON WHY VALUATIONS ARE GOING SKYROCKET, NOT ONLY JUST HEARING KYLE, BUT EVERYWHERE IS BECAUSE THERE'S NOT ENOUGH SUPPLY OF HOUSING.
UM, SO, YOU KNOW, IT'S A DELICATE BALANCE WITH ALL OF THAT.
AND SO, YOU KNOW, I AM CLEARLY IN SUPPORT OF DOING EXEMPTIONS.
CERTAINLY SOME OF YOU ALL ARE GOING TO BE ON COUNCIL, UH, LONGER, UH, GRADUAL INCREASES TO BE LOOKED AT AS, AS A YEAR OVER YEAR TO REEVALUATE HOW, UM, THE DECISIONS ARE MADE ON THE EXEMPTIONS BECAUSE THE EXEMPTIONS WILL BE THERE IN PERPETUITY FOR THE MOST PART.
SO I AM MORE OF A, THE SCHOOL OF STARTING LOWER AND THEN WORKING UP OVER TIME AS THE ANALYSIS COMES BACK AND WE SEE HOW THIS IMPACTS SERVICES, WE SEE HOW THIS IMPACTS, UM, ALL DIFFERENT PARTS OF THIS EQUATION.
UM, BUT AT THE END OF THE DAY, UM, YOU KNOW, I KNOW WE'RE UNDER THE GUN FOR IT, AS FAR AS OUR DEADLINE, THIS IS WHY I WANTED TO START THIS PROCESS LAST YEAR.
UH, THIS IS WHY I BROUGHT FORWARD THIS PROCESS.
AND I KNOW YOU ALL GET FRUSTRATED WITH ME BRINGING THIS UP, BUT I'M EQUALLY AS FRUSTRATED THAT WE DIDN'T, UH, TACKLE THIS ISSUE MONTHS AGO, OR THEY START THE PROCESS SO THAT WE CAN START TO WRAP OUR HEADS AROUND THESE THINGS A LITTLE BIT BETTER, YOU KNOW, NOT EVERYBODY EVEN KNOWS WHAT EXEMPTIONS THERE ARE IN THE CITY, UM, WHAT CAN BE ADDED ON TOP OF EACH OTHER.
AND WE'RE, IT SEEMS TO BE A LOT OF LEARNING ALL ON THIS MORNING TO COME TO A DECISION.
AND, UM, THAT'S JUST NOT THE WAY I LIKE TO IN MY PERSONAL LIFE MAKE REALLY CHALLENGING DECISIONS LIKE WE'RE MAKING HERE.
UM, I JUST WANT TO GO BACK AND SAY THAT THIS AGENDA ITEM WAS ON THE AGENDA SEVERAL WEEKS AGO, SO, AND I WISH AT THE LATEST WE WOULD HAVE STARTED THEN, UM, AND, AND NO DISCUSSION WAS HAD, THERE WAS A MOTION MADE, SO WE HAVE HAD OPPORTUNITY AGAIN AND AGAIN AND AGAIN, AND LET'S BE CLEAR, ANYBODY COULD PLACE THIS INFORMATION ON THE AGENDA.
SO, AND IT WASN'T PLACED UNTIL THIS YEAR WITH THAT SAID, IF WE'RE LOOKING AT SMALL RELIEF FOR THE RESIDENTS IN THE AMOUNTS OF THE EXEMPTION, LET'S GO AHEAD.
I THINK WE'RE GOING TO BASE OFF OF 70%.
I THINK THAT'S A SAFE ROUTE BECAUSE I THINK WE WERE TOLD 65 TO 70, IF WE WANT TO ERR, ON THE SIDE OF CAUTION, I THINK, OKAY.
UM, I'M A LITTLE BIT CONSERVATIVE WHEN IT COMES TO THOSE NUMBERS.
SO IF WE'RE LOOKING AT A LITTLE BIT, WHICH I UNDERSTAND, WE DON'T WANT TO RUSH INTO ANYTHING MAJOR.
IF WE GO DOWN THE 1, 2, 3, 4, 5, 6 COLUMN, AND IT SAYS, HOMESTEAD, IT'LL SHOW YOU HOW MUCH THE HOMEOWNER WILL SAVE EVERY YEAR.
SO I DON'T KNOW IF WE WANT TO LOOK AT A LITTLE BIT IN THE AMOUNT OF THE CITY OR A LITTLE BIT IN THE AMOUNTS OF THE HOMEOWNER.
SO I THINK THAT WOULD, THAT THAT'S A COST FOR SOME KIND OF CLARIFICATION.
FOR ME, IT WOULD BE A COMBINATION OF BOTH.
SO IF I LOOK AT THE HOMESTEAD AND WE DO OPTIONS, SAY 25,000, THAT WILL GIVE THE HOMEOWNER $127 RELIEF A YEAR.
[01:00:01]
THE CITY 1.3 3 6 7 8, 8.SO I GUESS AS A COUNCIL, WE NEED TO DECIDE A, ARE WE GOING TO FOCUS ON RELIEF FOR THE HOMESTEAD, OR ARE WE GOING TO FOCUS ON MAKING SURE THE CITY SAVES MONEY? UM, MY, MY POINT OF VIEW IS WHATEVER MONEY WE TAKE OUT OF THIS HOMESTEAD, WE THEN FIGURE OUT A WAY TO APPLY IT TO BUSINESSES THAT ARE COMING.
AND INSTEAD OF SPENDING $3 MILLION ON A TUNNEL, WE TAKE THAT $3 MILLION WHEN WE FIX UP OUR ROADS AND WE USE THAT FOR BONDS.
UM, AND I KNOW IT'S NOT POPULAR.
UM, BUT I THINK REDIRECTING MONEY THAT WE RECEIVE FROM DEVELOPERS, INCLUDING HOME AND BUSINESSES AND TAKING THAT MONEY AND SPENDING IT TOWARDS OUR INFRASTRUCTURE TO INCLUDE OUR WASTEWATER AND OUR ROADS, UM, WOULD BE A WISER DECISION.
AND SO WITH THAT, IT MIGHT, IT WOULD BE GREAT TO HAVE SOMEBODY FROM MAYBE OUR ECONOMIC DEVELOPMENT DEPARTMENT.
UM, I'M GOING TO TELL YOU RIGHT NOW, I DON'T THINK THIS IS GOING TO PASS.
I DON'T THINK WE'RE GOING TO RESOLVE MUCH TODAY.
WELL, WE GET ON THE CONVERSATION AND I FEEL LIKE THERE'S PROBABLY GOING TO BE ANOTHER MEETING BECAUSE THIS IS A BIG DECISION AND WE'RE GOING TO NEED THE INPUT OF NOT JUST THE PEOPLE IN THIS ROOM, BUT THE PEOPLE WHO ALSO HAVE A HAND IN DEVELOPING THE CITY.
SO IT WOULD BE NICE TO GET THE ECONOMIC DEVELOPMENT DEPARTMENT INVOLVED, TO SEE HOW WE CAN IMPLEMENT OR REDIRECT FUNDS THAT WE RECEIVED FROM DEVELOPERS, BOTH HOME AND BUSINESS TO HELP MAKE UP FOR THIS HOMESTEAD EXEMPTION, THAT WORD WE'RE DEBATING ON HAVING, BECAUSE ULTIMATELY WE DO NOT WANT THE CITY RIDING ON THE BACKS OF OUR HOMEOWNERS.
AND I THINK, I THINK WE ALL WANT THAT.
I DON'T THINK ANYBODY'S LIKE, OH MAN, MORE HOMES THAT WE CAN HAVE MORE TAXES.
BUT WHAT I LIKE TO SEE IS THE BUSINESSES THAT ARE COMING IN THAT ONLY BE INVOLVED FINANCIALLY, BUT ALSO BE INVOLVED AS A COMMUNITY.
I THINK THAT WOULD BRING SOME COMMODITY THAT THAT IS MUCH NEEDED.
SO I WILL, AGAIN, NOT PROBABLY LOOK FOR ANYTHING MUCH LESS THAN $40,000.
AND IF WE LOOK AT 40 AND I KNOW SOME PEOPLE DON'T BELIEVE THAT WE'RE DOING THIS METHODICALLY, BUT I, I AM, AND I BELIEVE OTHER PEOPLE ARE.
BUT, UM, SO MY METHOD OF THINKING IS IF WE DO $40,000 FOR AN EXEMPTION VALUE OF WHAT, WHO DOES THAT 420 MILLION, UM, IT WOULD GIVE A HOMESTEAD RELIEF OF $203 AND 28 CENTS A YEAR FOR A TOTAL TO AFFECT THE CITY AT $2.18 MILLION.
AND I WOULD BE OPEN TO HEAR OTHER PEOPLE'S IDEAS AND OTHER AMOUNTS AND THEIR REASONS AS WELL.
YEAH, JUST REAL QUICK, YOU TALKED ABOUT SOMETHING DISCUSSIONS WE'VE HAD BEFORE.
I DON'T SEE A DEVELOPER GIVING YOU $3 MILLION FOR YOUR TAXES.
UH, I COULD PROBABLY, YOU KNOW, IF, IF THEY'RE FUNDING A PROJECT AND THEY'RE PUTTING INTO THAT PROJECT, WHY WOULD THEY TAKE OUT OF THEIR PROJECT AND GIVE IT TO THE TAX ROW? I'M JUST TRYING TO GET THAT CLARIFICATION AND YOU CAN EXPLAIN IT TO ME.
SO MY EXPLANATION WAS THE $3 MILLION FOR GETTING FOR THE TUNNEL.
INSTEAD OF IT BEING APPLIED TO A TUNNEL, THEY CAN APPLY THAT TO THE STREETS.
THEY CAN APPLY IT, HOWEVER THEY LIKE, AND THE CITY CAN ASK FOR THAT INCENTIVE TO BE APPLIED WHEREVER WE LIKE, JUST LIKE WE TOOK THE TOLL BROTHERS MONEY AND MOVED IT FROM STAGECOACH TO THE EAST SIDE.
WE COULD ASK THE SAME FROM OUR DEVELOPERS.
SO I'M NOT SAYING, HEY, DEVELOPERS GIVE US THIS TEXT MONEY.
WHAT I'M SAYING IS INSTEAD OF INCENTIVIZING THEM TO BUILD A TUNNEL, WE SHOULD INCENTIVIZE THEM TO FIX OUR ROADS AND HELP DEVELOP OUR WASTEWATER SYSTEMS AND OUR OTHER MUCH NEEDED, UH, NECESSITY INFRASTRUCTURE AND NOT SO MUCH THINGS THAT WE WOULD LIKE TO HAVE AND DON'T GET ME WRONG.
I WOULD LOVE TO START PUTTING LUXURIES IN KYLE LIKE THAT, BUT WE ARE NOT AT THAT POINT AS A CITY.
I THINK WE NEED TO BE A LITTLE BIT MORE RESPONSIBLE WITH THE MONEY THAT WE RECEIVE FROM THE DEVELOPERS AND HOW WE, AND IF THEY DON'T WANT TO GIVE A STEP $3 MILLION TO PUT TO THE ROADS, IS THAT REALLY A BUSINESS THAT'S GOING TO SUPPORT OUR COMMUNITY IN THE LONG RUN CUSTOMER PARSLEY? I WOULD LIKE TO HEAR SOME NUMBERS TO SEE IF WE CAN GET THIS STARTED.
AND I AGREE WITH COUNCIL MEMBER ELLISON ABOUT THIS BEING EVALUATED EVERY YEAR, BECAUSE WE'RE JUST GETTING STARTED WITH THIS.
SO IF WE JUST MAYBE SEIZE A LITTLE BIT, I KNOW DISCUSSION NEEDS TO HAPPEN, BUT I KNOW RESIDENTS ARE WAITING AND WE NEED TO MAKE A DECISION.
SO DOES ANYBODY ELSE HAVE A DIFFERENT NUMBER THAT WANT TO PROPOSE FOR THIS? OKAY.
IF YOU WANT TO HEAR, I WILL RETRACT MY MOTION.
DOES THAT MEAN? ALL RIGHT, SO WE'RE, WE'RE WE'RE BACK, UH, MAYOR PRO TEMP.
UM, COUNSELOR ELLISON BROUGHT UP A GREAT POINT.
THE REASON I, HE WANTS TO HEAR WHY I REACHED AT THE NUMBER I DID EARLIER WAS BECAUSE THE MAJORITY OF THE EMAILS THAT I RECEIVED FROM RESIDENTS WAS
[01:05:01]
A $15,000 EXEMPTION.AND THEY ALSO STATED IF YOU COULD GO UP A LITTLE BIT MORE THAN THAT, IT WOULD BE, IT WOULD BE GREAT.
AND I THINK THEY WERE THINKING MAYBE A $20,000 EXEMPTION.
UH, BUT THESE WERE THE MAJORITY OF THE EMAILS I RECEIVED WAS A $15,000 EXEMPTION.
SO THAT'S WHY I STARTED OFF AT $15,000 IS BECAUSE IT WAS THE FEEDBACK I GOT FROM THE RESIDENTS.
UM, AND, UH, THAT'S WHY I STARTED THAT NUMBER.
UH, I TOOK A LOT OF THINGS INTO CONSIDERATION.
THIS IS THE FIRST TIME THAT WE IMPLEMENTED A HOMESTEAD.
WE'RE ONLY 20% OF THE OVERALL TAXES, UH, THAT WE TAKE IN THAT THE, UH, COUNTY TAKES IN COMPLETELY.
UM, YOU KNOW, UM, IF YOU LOOK AT THE BRACKET, YOU CAN SEE WHAT THE TAXING ENTITIES ARE AS WELL.
WE'RE ABOUT 20%, BUT THAT WAS THE REASON WHY I LOOKED AT 15,000 WAS THE MAJORITY OF THE FEEDBACK I GOT FROM RESIDENTS WAS PLEASE GIVE US A $15,000 RELIEF.
AND IF YOU COULD DO A LITTLE BIT MORE, WE'D BE GRATEFUL.
UM, SO THE, YOU KNOW, MY THOUGHTS ON THE MATH, UH, ARE TO, TO, TO BE CLEAR.
AND THIS IS SOMETHING THAT I'VE HEARD FROM, UH, PREVIOUS MANY, MANY TIMES, ACTUALLY IN PREVIOUS YEARS, WE HAVEN'T DISCUSSED IT SO MUCH THIS YEAR OR LAST YEAR, BUT THE IMPORTANCE OF UNDERSTANDING THE DIFFERENCE BETWEEN A CIP PROJECT AND AN ONGOING OBLIGATION.
SO LIKE FOR EXAMPLE, IF WE HAVE, UH, RECEIVE A A HUNDRED THOUSAND DOLLARS DONATION FROM, UH, YOU KNOW, SOME, SOME GROUP, WE CAN TAKE THAT A HUNDRED THOUSAND DOLLARS AND MAYBE, UH, UH, BUILD A STATUE.
BUT IF WE TAKE THAT A HUNDRED THOUSAND DOLLARS AND HIRE, UH, AN OFFICER, UH, THAT IS AN ONGOING OBLIGATION.
SO THE 3 MILLION COMPARED TO THIS TWO AND A HALF MILLION, UM, THE PROPER WAY TO THINK OF THAT WOULD BE WHAT IS, UH, WHAT IS THE DEBT SERVICE ON $3 MILLION? AND THAT WOULD BE SOMETHING MUCH SMALLER OR WHAT IS THE DEBT SERVICE CAPACITY ON, UH, $2 MILLION, WHICH IS SOME MUCH, MUCH LARGER NUMBER.
SO A $2 MILLION ANNUAL, UH, TAKING OFF THE TAX ROLLS THAT GOES INTO PERPETUITY IS $2 MILLION THAT YOU CAN'T BORROW AGAINST, WHICH WOULD BE, I DON'T KNOW WHAT, UH, I THINK 80,000 IS FOR, YOU KNOW, I DON'T KNOW WHAT THE NUMBER THERE WOULD BE, BUT THAT WAS THE, WHAT I WAS ASKING THE FINANCIAL ADVISOR TO, UH, TO DO MATH ON BECAUSE WE ARE GETTING READY TO, UH, ASK THE VOTERS TO APPROVE A BOND.
UH, AND THAT THE NUMBER CORRESPONDS, IT'S NOT 2 MILLION, IT'S 2 MILLION IN ANNUAL DEBT SERVICE PAYMENTS ON A MUCH, MUCH LARGER NUMBER.
AND I SEE PREVIOUS WORK IN HIS CALCULATOR.
SO, SO IF, IF THE NUMBER YOU'RE USING IS 2 MILLION OFF THE TAX REVENUE.
JUST IF IT WAS ALL APPLIED TO, UH, TO INS, BECAUSE WE OBVIOUSLY ARE, THAT'S, THAT'S SOMETHING LIKE THE PAYMENT THAT WE'RE GOING TO BE LOOKING AT, OR IT'S ACTUALLY GOING TO BE HIGHER THAN THAT.
IF WE GO FOR THE BOND NUMBERS THAT ARE BEING CONSIDERED.
SO IF YOU ASSUME $2 MILLION AND USING THE CITY'S FINANCIAL ADVISORS, 80,000 PER MILLION, THAT'S 25 MILLION IN BOND CAPACITY.
SO WE HAVE TO, UH, IF, IF ALL THINGS BEING EQUAL, THERE ARE LOTS OF DIFFERENT WAYS TO HANDLE THIS, BUT ALL THINGS BEING EQUAL, IF WE TAKE $2 MILLION OFF THE TAX ROLLS, THEN WE'RE, WE'RE TALKING ABOUT, UM, WHAT, I'M SORRY, WHAT WAS THE NUMBER OF 25 45? ALL RIGHT.
SO THAT'S, LET'S SAY AT LEAST ONE, MAYBE TWO OF THE ENTIRE ROADS THAT WE'RE PROPOSING RECONSTRUCTION ON, UH, BEING JUST NOT POSSIBLE FOR US ANYMORE, AS A RESULT OF THIS ACTION OR, UH, INCREASING THE TAX RATE IN SUCH A WAY THAT WE CAN ABSORB THAT $2 MILLION.
BUT TO SAY, TO THINK THAT A $3 MILLION, UH, EXPENDITURE FROM OUR CAPITAL, UH, PROJECT, WE CAN TAKE THAT AWAY IN ORDER TO APPLY TO THE 2 MILLION IS, IS NOT MATH THAT WILL SUSTAIN.
THAT WILL BE THE KIND OF LOGIC THAT GETS US INTO BIG TIME, FINANCIAL TROUBLE QUICKLY.
UH, AND I DON'T MEAN THAT TO, I'M JUST TRYING, I'M TRYING TO MAKE SURE THAT WE UNDERSTAND WHAT WE'RE DOING HERE.
THAT'S IT, I'M NOT TRYING TO BE ARGUMENTATIVE.
UM, UH, I'M, I'M READY TO SUPPORT THIS, YOU KNOW, AT SOME NUMBER I WOULD LIKE TO SEE THE NUMBER LOWER SPECIFICALLY FOR WHAT COUNSELOR ELLISON AND MAYOR PRO TEM HAVE HAD TO SAY.
UH, I THINK THERE'S SOME WISDOM IN GOING INTO IT SLOWLY.
IF WE GO TO THE LARGER NUMBER, YOU KNOW, WHATEVER, WHATEVER HOMESTEAD EXEMPTION THAT THIS BODY PASSES, UH, IS A FOREVER VOTE.
IT IS A VOTE FOR THIS YEAR AND ALL FUTURE YEARS.
I DON'T THINK IN THE HISTORY OF TEXAS THEY'VE EVER RE ELIMINATED OR TAKEN BACK A HOMESTEAD EXEMPTION.
SO WE HAVE TO JUST PREPARE OURSELVES THAT WE ABSOLUTELY WILL HAVE TO BALANCE OUR BUDGET AROUND THE NUMBER THAT WE COME UP WITH.
AND THAT WILL BE MUCH HARDER DECISIONS HERE SOON.
AND YOU'LL HAVE A WHOLE NEW GROUP OF RESIDENTS COMING OUT TO COMPLAIN ABOUT HOW OUR TAX RATE IS GOING UP.
AND THEN THERE'S ALSO THE CONSIDERATION
[01:10:01]
TO MAKE THAT IT LET'S SAY, UH, WE'RE TALKING ABOUT A THREE OR 4 CENT TAX RATE INCREASE JUST TO BALANCE THE HOMESTEAD EXEMPTION.IF WE'RE GOING FOR A HUNDRED TO $200 MILLION, UH, RHODES BOND, UH, THERE'S A POTENTIAL FOR HAVING TO ADD FIVE TO 10 CENTS MORE ON TOP OF THAT, WHICH JEOPARDIZE.
SO THEN WE'RE GOING AND ASKING THE VOTERS TO INCREASE THE TAX RATE, UH, BY 10, 15 CENTS UP TO ALL TIME HIGH NUMBERS FOR THE CITY OF KYLE.
UH, THOSE ARE THE, THOSE ARE THE QUESTIONS THAT THIS BODY THAT IS, THAT IS LOOMING BEFORE, UH, THIS BODY RIGHT NOW, UH, AND THIS, THIS VOTE HAS A ONE-TO-ONE IMPACT ON THAT VOTE.
UH, SO IT'S JUST, IT'S JUST A LOT TO CONSIDER.
MY PREFERENCE WOULD BE TO KEEP THE NUMBERS SMALLER, TO ALLOW FOR US TO HAVE SOME ROOM, TO DEAL WITH THE BOND, UH, TO TRY TO SEE WHAT THE VOTERS HAVE TO SAY ABOUT, UH, PASSING A RHODES BOND.
UH, AND THEN IF IT ALL WORKS OUT JUST FINE, YOU KNOW, WE COULD POTENTIALLY COME TO, UH, AN INCREASE THE FOLLOWING, YOU KNOW, UH, BUDGET SEASON TO GO UP HIGHER.
SO, YOU KNOW, MY PREFERENCE IS THE LOWER NUMBER, BUT I'LL VOTE FOR ANYTHING.
IF THE ENTIRE COUNCIL WILL SUPPORT IT, BECAUSE I KNOW THAT WE'RE GOING TO HAVE TO JUST REBALANCE OUR BUDGET.
UH, AND THAT'S SOMETHING I'M DOING WITH EYES WIDE OPEN.
SO I WILL TELL THE VOTERS WHEN THEY ASK, WHY IS THE TAX RATE GOING UP? I'LL SAY IT'S FOR TWO REASONS.
UH, NUMBER ONE, BECAUSE WE PASSED A HOMESTEAD EXEMPTION THAT HAD A PERCENTAGE IMPACT.
AND NUMBER TWO, BECAUSE WE'RE ASKING FOR A RHODES BOND TO BE PASSED, WHICH HAS A TAX RATE IMPACT AS WELL.
UM, AND FOR THE HOMESTEAD EXEMPTION IS SOMETHING THAT WE'RE PASSING FOR THE SAKE OF INCENTIVIZING HOME OWNERSHIP.
UH, THAT'S SOMETHING I CAN GET BEHIND AND SELL.
AND IF A ROAD'S BOND IS SOMETHING THAT WE'RE PASSING FOR THE SAKE OF, UH, MAKING DRAMATIC IMPROVEMENTS TO OUR ROADS INFRASTRUCTURE, I CAN GET BEHIND THAT.
SO, UM, THOSE ARE MY THOUGHTS COUNTS, REMEMBER FLOURISH SCALE.
SO, UM, I'M KIND OF CONFUSED WHEN YOU STATE, OH, YOU KNOW, A ONE-ON-ONE, UM, BECAUSE MY HOUSE WENT FROM AN EVALUATION OF 200,000 TO 350,000.
AND SO IT'S REALLY NOT A ONE-ON-ONE ART.
OUR VALUATIONS ARE NOT FROZEN.
SO AS THEY GO UP EVERY YEAR, SO DOES HOW MUCH I PAY.
SO THIS FIVE PAY NOW $8,000, BUT I PAID LAST YEAR, $5,000.
AND THE CITY TAKES, SAY, LET'S SAY THEY TAKE $2,000.
THERE'S STILL A PLUS, THERE'S STILL A SURPLUS THAT THE CITY IS GOING TO RECEIVE THE NUMBERS.
AND THE EVALUATIONS YOU ARE GIVING IS ONLY IF EVERYTHING STAYS THE SAME, IF EVERYTHING STAYS THE SAME.
I CAN UNDERSTAND THAT, BUT THAT'S NOT WHAT'S HAPPENING WITH OUR CITY.
WHAT'S HAPPENING IS THAT EVALUATIONS ARE SIGNIFICANTLY INCREASING.
AND I THINK THAT THAT'S WHY IT'S COME TO THE DICE NOW IS BECAUSE WE SEE THIS INCREASE.
AND INSTEAD OF THE CITY MAKING AN EXTRA, LET'S MAKE UP A NUMBER OF $200 MILLION.
NOW THEY'RE JUST GOING TO MAKE $150 MILLION AND YOU'RE, BUT YOU'RE STILL GETTING MORE AS A CITY.
I'M NOT SAYING LET'S TAKE AWAY FROM THE CITY BECAUSE WE ALL KNOW WE NEED NEW STUFF, RIGHT? WE NEED NEW ROADS.
WE WANT, WE WANT TO BE ABLE TO BUILD AND LIVE WITHIN OUR COMMUNITY.
NOBODY WANTS THAT MORE THAN I DO, BUT WHAT I DON'T WANT TO DO IS DO IT OUT ON THE BACKS OF OUR HOMEOWNERS, BECAUSE EVERYTHING IS INCREASING.
NOW, I THINK THERE SHOULD BE AN I'M NOT OPPOSED TO REED COMING BACK AND LOOKING AT THIS EVERY YEAR BECAUSE MY, MY CONCERN IS PRICES ARE GOING TO COME DOWN.
THIS IS, THESE ARE UNPRECEDENTED TIMES.
WE ARE NOT, THIS IS NOT GOING TO LAST FOREVER.
AND IN THAT CASE, I HAVE NO PROBLEM GOING BACK AND SAYING, OKAY, YOU KNOW WHAT? THE VALUES HAVE GONE DOWN.
NOW, I THINK WE SHOULD DO $5,000 LESS TO INCREASE SO WE CAN MAINTAIN THE CITY.
I'M WILLING TO, I'M WILLING TO TAKE THAT FIREHOSE TO THE FACE, BUT JUST ONLY IN THE BEST INTEREST OF THE CITY.
THAT'S WHY IT MAKES SENSE TO ME TO JUST DO IT BY A PERCENTAGE.
SO PRICES GO UP, HOMESTEAD GOES UP, PRICES, GO DOWN, HOMESTAY GOES DOWN THE, THE EAST-WEST ARGUMENT.
UM, I'M ACTUALLY IN AGREEMENT WITH YOU BECAUSE, UH, I CAN MAKE THE EAST-WEST ARGUMENT THAT THE FLAT RATE IS, UH, UH, UH, AN INCENTIVE TO THE WEST.
I ACTUALLY THINK THE IT'S EASIER FROM AN ACCOUNTING STANDPOINT IS THE STRONGEST ARGUMENT THERE.
UM, THIS IS GOING TO AFFECT WEST HOMEOWNERS MORE THAN EAST HOMEOWNERS, JUST RIGHT OFF THE BAT, BECAUSE THERE ARE MORE HOMEOWNERS ON THE WEST SIDE THAN ON THE EAST SIDE.
AND SO IF YOU GO AND YOU TAKE THE NUMBERS THAT THIS THE 65 OR 70% THAT THIS APPLIES TO, IT WILL BE, IF YOU DO THE MATH, THE MORE MATH YOU DO, THE MORE FRUSTRATED YOU WILL GET, BECAUSE THEY'RE MORE, UH, HOMEOWNERS, UH, UH, ON THE WEST SIDE THAN ON THE EAST SIDE.
SO EITHER WAY, BUT A PERCENTAGE, UH, DOES ALLOW FOR, UH, THERE TO BE SOME DE-RISKING TO THE CITY IN THE EVENT OF A RECESSION, WHICH I LIKE TO DE-RISK, BUT I DO WANT TO RESPOND TO COUNCILOR FLUOROSCOPE, CAUSE I ACTUALLY, YOU'RE NOT WRONG.
[01:15:01]
AND I'M NOT SAYING THAT YOU'RE, THAT YOU'RE WRONG.WHEN YOU SAY THAT VALUATIONS HAVE GONE UP FROM 200,000 TO 300,000 TO 350,000.
UH, BUT WHEN YOU BRING THAT ARGUMENT IN, YOU HAVE TO ALSO BRING THE OPPOSITE OF THAT ARGUMENT, WHICH IS COSTS HAVE GONE UP.
SO THE REASON THAT THE VALUATIONS ARE GOING UP IS BECAUSE THE PRICE OF EVERYTHING IS GOING UP.
WE'RE HAVING 40 50% INFLATION THE COST OF A ROAD STAGECOACH, FOR EXAMPLE, OR WHATEVER ROAD HAS DOUBLED IN THE LAST SEVERAL YEARS.
SO THAT COST HAS TO BE BORN OUT OF THE SAME POT OF TAXPAYER DOLLARS.
SO WHEN PRICES GO UP, VALUATIONS, GO UP.
IF YOU KEEP THE TAX RATE THE SAME, THEN YOU'RE STILL, EVERYBODY IS STILL BASICALLY SHELTERING THE SAME AMOUNT, ASSUMING THEIR WAGES HAVE GONE UP, WHICH IS REALLY THE ULTIMATE TEST OF WHETHER OR NOT AFFORDABILITY IS BEING REDUCED.
AND THAT IS, ARE OUR WAGES NOT GOING UP COMMENSURATE WITH OUR COSTS, UH, COST OF LIVING AND TAXES AND EVERYTHING ELSE IN, IN LIFE.
AND THAT'S A DISCUSSION, MAYBE THAT'S OUTSIDE THE PURVIEW OF, UH, UH, OF THIS DIOCESE, BUT YOU CAN'T JUST SAY BECAUSE, UH, THE HOME WAS 200,000 AND NOW IT'S 300,000 THAT, UH, YOU KNOW, THAT THIS HOMESTEAD EXEMPTION IS JUST FREE MONEY AND WE'RE ONLY INCREASING BY W YOU KNOW, WHATEVER THE NUMBER IS BECAUSE AT THE END OF THE DAY, THE AMOUNT THAT WE CHARGE TO THE RESIDENTS IS BASED ON OUR BUDGET.
IT'S NOT BASED ON OUR, UH, WHAT WE DO HERE.
SO WE GET TO DETERMINE EXACTLY HOW MUCH MONEY WE'RE GOING TO ASK THE RESIDENTS TO PAY EVERY SINGLE YEAR.
AND IT'S BASED ON THE COST OF SERVICES THAT WE ARE COMMITTING TO PROVIDE THEM.
UH, SO THAT NUMBER GOES UP AND DOWN ENTIRELY BASED ON THE COST OF SERVICES IN THE BUDGET.
SO WE'RE GOING TO HAVE TO JUST FIND A DIFFERENT, I'VE ALWAYS BEEN OF THE OPINION, AND THIS IS NOT POPULAR AMONG A LOT OF TEA PARTY REPUBLICANS, ESPECIALLY IN THE STATE OF TEXAS.
I THINK THEY LEAD IN THE NATION FOR SAYING THEY WANT TO HAVE ALL OF THEIR TAX REVENUE IN ONE STREAM CONSUMPTION TAX, RIGHT? THEY WANT TO ELIMINATE PROPERTY TAXES IS, IS A HUGE THING, RIGHT? AND THE IDEA BEING THAT EVERYTHING GETS PUT INTO A SALES TAX THAT YOU W WHERE YOU'RE ONLY TAXED.
IF YOU SPEND THE MONEY AT THE GAS STATION OR, OR WHATEVER, UH, I AM A DIVERSIFY YOUR INCOME STREAM GUY, I'VE SEEN THAT BE THE APPROPRIATE METHOD.
SO WHEN THERE ARE IMPACT FEES THAT SOME PEOPLE PROTEST OR, UH, UH, MINIMUM WASTEWATER FEES ON YOUR WASTEWATER BILL, UH, OR AT THE END OF THE DAY, UH, I THINK THAT ADDING ALL OF THOSE LAYERS OF TAXATION IS A BETTER WAY.
IF YOU ARE STILL BEING, UH, YOU KNOW, CONSERVATIVE WITH YOUR BUDGETING, BUT PUTTING IT ALL IN ONE GROUP IS, IS NOT, UM, IT'S NOT SOUND FISCAL POLICY IN MY OPINION.
SO, UH, I DON'T KNOW THAT THIS MATTERS, BUT I WOULD LOVE FOR US TO TRY TO TAKE A VOTE AS WELL.
SO MAYOR AND COUNCIL, I ALSO HAVE THE PERCENTAGE-BASED ANALYSIS IF YOU GUYS ARE INTERESTED IN SEEING THEM.
A HUNDRED PERCENT, 80%, 75% AND 70%.
THE ONLY DIFFERENCE HERE IN THIS ANALYSIS IS THAT THE OPTIONS ARE BASED ON PERCENTAGE.
IT GOES FROM 1% TO 10%, AND IT'S ALSO BASED ON SINGLE FAMILIES, TAXABLE ASSESSED VALUATION.
SINCE WE DO NOT KNOW EACH INDIVIDUAL HOME VALUE, I CAN ONLY GIVE YOU AN AVERAGE HOMESTEAD BENEFIT.
SO WHERE YOU SEE THE AVERAGE HOMESTEAD, SOME WILL BE HIGHER, SOME WILL BE LOWER, BUT THAT'S THE AVERAGE AMOUNT.
UM, WELL, I, I AGREE WITH KEEPING IT SIMPLE AND I ALSO AGREE WITH KEEPING IT THE WAY THE COUNTY AND EVERYONE ELSE DOES IT.
SO FOR MYSELF, MY PREFERENCE IS STILL TO, EVEN THOUGH I, I DON'T HAVE A BAD VIEW OF THE PERCENTAGE.
I THINK THE DOLLAR IS, IS MORE, IS MORE CLEAR.
SO WE'VE HAD, WE'VE HAD TWO MOTIONS FOR DIFFERENT AMOUNTS, UH, BOTH RETRACTED.
AND, UH, IT SEEMS TO ME LIKE MAYBE GOING FOR TRYING TO GO FOR A UNANIMOUS CONSENSUS, JUST ISN'T GOING TO WORK CAUSE WE'RE GOING TO WANT TO VOTE FOR WHAT WE WANT TO VOTE AND FIND OUT WHAT THE, UH, THE WILL OF COUNCIL IS.
UM, IS THERE, IS THERE ANYONE ELSE WHO WANTS TO MAKE A MOTION BECAUSE IF NOT, I'LL MAKE A MOTION AND THEN I'M GOING TO CALL FOR A VOTE.
UH, SO COUNCIL WORKFORCE KILL.
BASED ON THE FEEDBACK FROM STAFF AND THE CONCERNS OF COUNCIL, I WOULD LIKE TO MAKE A MOTION TO IMPLEMENT A $40,000 HOMESTEAD EXEMPTION FOR THE CITY OF KYLE.
[01:20:02]
ALL RIGHT.THE MOTION IS MADE FOR $40,000 EXEMPTION.
MOTION BY COUNCILMAN NEIL, SECONDED BY COUNSELOR AND PARTIALLY ASSERT DISCUSSION ON THE MOTION CUSTOMARY FOREST COUNTY.
I'D LIKE TO ALSO AMEND THAT TO INCLUDE AN ADDITIONAL $10,000 EXEMPTION FOR DISABLED AND VETERANS.
THE MOTION TO AMEND IS TO ADD $10,000 TO THE ORIGINAL MOTION TO GO FROM 30,000 TO 40,000.
THAT MOTION WAS SECONDED BY COUNCIL MEMBER.
TOBIA SAYS THEIR DISCUSSION ON THAT MOTION.
IF WE COULD ADD TO THAT, MS. FORESCOUT OR YOU REVIEW THE HOMESTEAD EXEMPTION YEARLY.
IN TWO YEARS, WE HAVE A, WE HAVE A MOTION TO AMEND ON THE TABLE, SO I GOT TO KEEP THE PARLIAMENTARIAN PROCEDURE GOING.
SO I'D LIKE TO TAKE THE VOTE ON THE MOTION TO AMEND, AND THEN IF THERE'S AN, UH, WHICH BRINGS IT BACK TO THE ORIGINAL, AND THEN IF WE WANT TO ADD TO IT, WE'LL GO FROM THERE BECAUSE IF WE START AMENDING THE AMENDMENT, I'M GOING TO LOSE MY YES, SIR.
UM, ALL RIGHT, SO ROLL CALL VOTE.
THIS IS A VOTE FOR $10,000 TO INCREASE.
THAT'S ALL THIS, THIS, YES, IT'S AN AMENDMENT.
HE ASKED IF I COULD, UH, MAKE A MOTION ON THAT TO HAVE, UM, CITY STAFF, UH, REEVALUATE THESE YEARLY TO BRING BACK, UH, BEFORE BUDGET SEASON FOR OUR VOTE TO EVALUATE THE PERCENTAGES.
AND ALSO IF A INCREASE OR DECREASE NEEDS TO BE MADE.
THE MOTION, UH, IS MADE TO AMEND THE MOTION BY COUNSELOR.
TOBY IS TO ADD DIRECTION TO STAFF, UH, TO BRING THIS BACK ANNUALLY, UH, WITH THE BUDGET SEASON, SECONDED BY COUNCIL MEMBER FLOORS, SCALES, OR DISCUSSION ON THAT MOTION.
UH, I THINK, UH, THE BURDEN OF THAT IS GOING TO STILL FALL ON THE CITY COUNCIL BECAUSE YOU HAVE, YOU KNOW, STAFF HAS TO FIGURE OUT AND MAKE SURE THAT THEY'RE DOING THAT.
BUT AS, AS WE HAVE LEARNED THAT WE'RE THE, WE'RE THE JUDGE OF OUR MEMBERS.
UH, AND WE'RE THE ONES WHO HAVE TO FIGHT FOR WHAT WE BELIEVE IN, UH, IN THESE, IN THESE INSTANCES, WHICH I THINK THIS BODY IS DOING A GOOD JOB OF FIGHTING FOR WHAT THEY BELIEVE IN HERE AND WHAT THEY WANT TO ACCOMPLISH.
SO I, MY ONLY FEEDBACK ON THAT IS TO SAY, UH, I WOULDN'T, I WOULDN'T THINK THAT THAT, THAT THIS VOTE, UH, HERE IS, IS GOING TO MAKE, UH, TOO MUCH OF AN IMPACT ON FUTURE BODIES AND DELIBERATIONS BECAUSE ELECTIONS, WE, YOU KNOW, WE, WE'RE CONSTANTLY, WE'RE REVOLVING A GROUP UP HERE.
UH, AND SO ANYWAY, BUT WE CAN, WE CAN GIVE THAT DIRECTION.
HOPEFULLY THAT IS SOMETHING THAT CAN BE HANDLED.
I DON'T KNOW EXACTLY WHEN YOU WANT TO BRING IT UP.
DO YOU HAVE A PREFERENCE LIKE BEFORE THE, LIKE, UH, LIKE SOMETHING SPECIFIC, WE CAN GO AHEAD AND PUT ON THE CALENDAR FOR WHEN, WHEN THAT'S DUE.
UH, IF WE CAN HAVE IT DONE BEFORE MAY 1ST, PRIOR TO MAY 1ST THAT GAVE US PLENTY OF TIME FOR ALL OF US TO, OR WHOEVER IS ON COUNCIL TO REVIEW THE, UH, THE CURRENT STATUS OF OUR, OF OUR CITY, THE GROWTH.
CAUSE AGAIN, UH, I'M LOOKING ABOUT FIVE YEARS FROM NOW, WE'RE GOING TO BE HITTING ABOUT 75,000 PEOPLE.
SO WE HAVE TO, UH, MAKE SURE THAT YEARLY, THAT WE REVIEW THESE AND SEE WHERE WE'RE AT AS WE GET NEW RESIDENTS AND SO FORTH.
IS THERE, IS THERE, SO THE, THE, THE CHALLENGE WITH THIS IS THAT THE REASON I, UM, IN OUR LAST TIME THAT WE BROUGHT THIS UP, WANTING TO DO IT CONCURRENTLY WITH THE BUDGET IS BECAUSE I THINK THAT WE'RE TALKING ABOUT EVERYTHING ABOUT THIS IS WHAT'S THE IMPACT ON THE BUDGET AND THE FUTURE TAX RATE.
SO I WOULD THINK THAT FIRST READING OF THE BUDGET, UH, YOU KNOW, NOT, NOT THE, SO WE'VE ADDED AN EXTRA WORKSHOP WHERE STAFF JUST BRINGS FORWARD THEIR REQUESTS.
THAT'S NOT REALLY AN ANALYSIS OF NEEDS AND WANTS.
IT'S JUST EVERY DEPARTMENT AND WHAT THEY'VE SAID.
SO WE STILL HAVEN'T HAD OUR PROPOSED BUDGET.
I WOULD THINK THAT IF WE'RE GOING TO HAVE STAFF REVIEW AND PROVIDE FEEDBACK THAT THEY WOULD DO THAT CONCURRENTLY WITH THE, UH, PRESENTATION OF THE BUDGET, FIRST, FIRST WORKSHOP ON THE PROPOSED BUDGET, WHICH IS WHERE I THOUGHT THIS DISCUSSION MADE MORE SENSE SO THAT WE CAN ANALYZE IT, BUT WE'RE, WE'RE JUMPING AHEAD AND IT'S JUST, IT'S FINE.
STAFF'S JUST GOING TO HAVE TO ADJUST AND WE WON'T BE ABLE TO CONSIDER IT, BUT I WOULD THINK THAT FIRST READING OF THE BUDGET, YES, SURE.
[01:25:01]
IT.I'D LIKE TO MAKE A MOTION TO WHERE, WHEN WE HAVE OUR FIRST BUDGET WORKSHOP, WE INCLUDE THE CURRENT ANALYSIS OF WHERE OUR HOMESTEAD TAXES ARE.
AND WE CAN BE ABLE TO HAVE A BEGINNING CONVERSATION POINT THAT IF THAT'S WHAT COUNCIL, LIKE YOU MADE A MOTION, RIGHT? YES.
IS THAT LET'S SAY, IS THAT WE'RE ALL OVER THE PLACE? I MEAN, I DON'T EVEN KNOW WHERE WE'RE AT ANYMORE.
BUT ONE OF THE THINGS THAT WE HAVEN'T EVEN DONE, ONE PERSON Y'ALL ONE GROUP YOU ALL HAVE EXCLUDED IS THE DISABLED.
Y'ALL, DIDN'T ADD THAT AT ALL.
I MEAN, SO I KNOW Y'ALL, DIDN'T, Y'ALL, Y'ALL HAD A 10%, THAT WAS AN EXTRA 10,000 FOR VETERANS AT THE SAME WAY THAT, SO THAT WOULD BE IN TOP OF THE 40,000.
BUT THE SIMPLE ORDER TO GET ANYTHING, ARE YOU ADDING THEM TO THE ORIGINAL 30,000 THAT WE GET RIGHT NOW? ALL RIGHT.
WELL, HOW, HOW ABOUT THIS? HOW ABOUT WE JUST WITHDRAW ALL OF OUR EMOTIONS AND LET'S TRY TO MAKE IT ONE MORE TIME CLEARLY.
CAUSE I, THAT'S NOT THE, WHAT I THOUGHT.
SO I'M GLAD YOU SAID THAT WHAT YOU THOUGHT THERE AND IS THAT OKAY? IS EVERYBODY IN AGREEMENT TO WITHDRAW, DRAW A LITTLE MOTION? I'M GOING TO TRY TO MAKE A MOTION BASED ON WHAT I'M HEARING, NOT WHAT I PREFER, SIR.
IF YOU WOULD ALSO CONSIDER OUR CITY ATTORNEY'S RECOMMENDATION TO, IN YOUR MOTION TO INCLUDE WHEN YOU DO THE GENERAL HOMESTEAD, WHATEVER THE DOLLAR AMOUNT IS NOT TO EXCEED 20%.
SO LET ME ASK A CLARIFYING QUESTION.
WHEN YOU SAY NOT TO EXCEED 20%, ARE WE TALKING ABOUT NOT TO EXCEED 20% OF TOTAL VALUE IN THE CITY? OR ARE YOU SAYING PERCENT OF THAT? HOMEOWNERS.
WE COULD, SO THAT WILL THERE'S PAY.
SHE CAN CLARIFY BECAUSE THERE'S GOING TO BE, IS THAT CORRECT PAGE? YES.
SO IT'S PER HOME, NOT JUST THE TOTAL VALUATION IT'S PER HOME HOMESTEAD.
SO MY, MY, WHAT I'M HEARING IS 40,000 ACROSS THE BOARD AND THAT, UH, THAT'S FOR THE GENERAL RESIDENTIAL HOMESTEAD, THAT'S 4 65 AND OVER THAT'S FOR DISABLED.
SO DISABLED VETERANS AND 65 AND OVER CAN STACK AND HAVE A POTENTIAL TOTAL OF 80,000.
SO WHAT I MEANT WAS 40,000 ACROSS THE BOARD AND AN ADDITIONAL 10,000 FOR A TOTAL OF 50 FOR THIS.
SO YOU WANT TO REDUCE THE 30,000 EXEMPTION TO 10, WHAT YOU'RE SAYING DOES THIS, OKAY, SO THE CITY DOES OFFER, BUT NOT FOR, I SEE WHAT YOU'RE SAYING.
SO THEN IT'S 40,000 ACROSS THE BOARD.
BUT IF YOU ARE DISABLED, IF YOU ARE A VETERAN OR IF YOU ARE 65 OR OLDER, YOU BASICALLY JUST GET THE DOUBLE, YOU GET TO DOUBLE IT UP RIGHT NOW.
IT'S GOING TO, IF WE DO 40 WE'RE ALREADY AT 70, WELL, THEN THEY ARE GOING TO GET LESS, MORE.
SO WILL THAT, WILL YOU MAKE IT LIKE 70? IT WOULD BE 70.
AND WE'RE ADDING, INSTEAD OF IT JUST BEING 65 AND OVER WE'RE ADDING DISABLED AND VETERANS TO THAT, TO THIS 30,000, UH, I WOULD SAY THAT PROBABLY 40 AND THEN ADDITIONAL 10 BECAUSE NOW DISABLED VETERANS AND OVER 65 RIGHT NOW ARE GETTING 30.
IF WE MAKE 40 ACROSS THE BOARD AND THEN ADD ADDITIONAL 10 DISABLED, INCLUDING DISABLED, WE WILL GET DISABLED VETERANS.
AND OVER 65 CAPPING AT 50 OR MAX MAX, 20%, CAN WE AFFORD THAT? THAT'S WHAT I'M SAYING.
THAT'S WHY I'M SAYING, CAN WE JUST MAKE, WE'RE GOING TO BASICALLY PUT A CATEGORY OF 40,000 FOR EVERYBODY, BUT THE SABLES VETERANS IN OVER 65 WILL GET AN ADDITIONAL 10,000 TO MAKE IT 50.
NO, THAT'S WHY I'M CLARIFYING.
WE'RE GOING TO TAKE CARE OF, WE'RE GOING TO GET RID OF THAT 34, EXACTLY.
AND ADD THE ADDITIONAL 10 TO MAKE IT MAX OF 50,000, WHICH WOULD BE AN INCREASE FOR THEM OF 20,000.
WHEN I WAS STABLE, I WAS WORRIED ABOUT TAKING AWAY.
WE'RE GET RID OF THAT AND PEOPLE 50.
WE'RE NOT DOING NO, IT'S NOT, IT'S NOT PERCENT.
IT'S $30,000, WHICH WE'RE GETTING BRITA.
EVERYBODY GETS 40 AND WE'RE GOING TO DO AN ADDITIONAL 10 FOR THOSE DISABLED, THE BETTER ENDS AND OVER 65.
I DIDN'T THINK THAT HIS BODY WOULD BE INTERESTED IN TALKING.
SO LET'S MAKE SURE OUR CITY ATTORNEY'S ON THE SAME PAGE PAGE.
[01:30:03]
I'D LIKE TO HEAR THE CURRENT PLAN.THE CURRENT PLAN IS, UH, TO OFFER $40,000 EXEMPTION TO ALL, UH, RESIDENTIAL HOMESTEAD OWNERS AND A $10,000 ADDITIONAL EXEMPTION FOR 65 AND OVER DISABLED AND VETERANS WITH A CAP OF 20% WITH A CAP OF 20%.
THE 20% WOULD APPLY TO THE RESIDENTIAL HOMESTEAD.
YOU DON'T HAVE A DISABLED, AS I UNDERSTAND IT OR VETERAN, WE HAVE VETERANS VETERANS, WELL, WE DO NOT HAVE DISABLED.
YOU WOULD HAVE A DISABLED VETERAN VETERAN VETERANS IS, IS BASED ON FEDERAL AND STATE LAW.
IF YOU'RE A HUNDRED PERCENT DISABLED, THEN YOU GET A HUNDRED PERCENT EXEMPTION.
AND THEN IT GOES DOWN BASED ON PERCENTAGE OF DISABILITY.
SO IF YOU HAVE 50% DISABLED, YOU GET 50% OFF.
YOU S YOU USE VETERANS AND DISABLED IN THE SAME.
SO IF YOU'RE A VETERAN AND YOUR DISABLED IS BASED ON PERCENTAGE OF YOUR DISABILITY, IF YOU'RE NOT A VETERAN AND YOU'RE DISABLED, WE DON'T HAVE ANYTHING.
YOU DON'T HAVE ANYTHING FOR NON-VETERANS DISABLED INDIVIDUAL, NO VETERAN.
NON-DISABLED WE DO NOT HAVE ANYTHING FOR VETERAN NON DISABLED.
UH, I THINK WE HAVE A CERTAIN AMOUNT OF CONSENSUS HERE.
LISTEN, YOU KIND OF IN AGREEMENT THAT WE HAVE A CERTAIN AMOUNT OF CONSENSUS HERE, I'M ASKING FOR A REASON.
THEN I'M GOING TO ASK FOR A FIVE MINUTE RECESS.
OCEAN, UH, TO PASS A GENERAL RESIDENTIAL HOMESTEAD EXEMPTION IN THE AMOUNT OF $40,000 AND TO, UH, RESTATE THE, UH, 65 AND OVER HOMESTEAD EXEMPTION TO $10,000 IN AD DISABLED AND VETERANS TO THAT CATEGORY AND DIRECTS, UH, AND ALSO, UH, MAKE IT SO THAT NO, UM, UH, HOMESTEAD CAN RECEIVE MORE THAN 20% OF THEIR, UH, EXEMPTION ON ANY TAX BILL.
SECOND BY MAYOR PRO TIM, IS THERE DISCUSSION ON THAT MOTION? WAS THAT GOOD WITH YOU PAGE? OKAY.
I WANT TO MAKE SURE EVERYBODY UNDERSTANDS.
I'M GOING TO REPEAT EXACTLY WHAT YOU JUST SAID.
SO, SO AS FAR AS THE STACKING GOES, THE EXEMPTIONS CAN BE STACKED EXCEPT FOR THE DISABLED WHEN THE 65 OR OLDER.
AND SO IF YOU ADOPT THE 40,000 HOMESTEAD EXEMPTION, WHAT GETS STACKED ON TOP OF THAT IS EITHER A DISABLED OR A 65.
YOU DO NOT CURRENTLY HAVE A DISABLED EXEMPTION.
SO YOU WOULD BE ADOPTING A $10,000 DISABLED EXEMPTION.
YOU DO CURRENTLY HAVE AN OVER 65 EXEMPTION, WHICH I UNDERSTAND IS 30,000 IS 30,000.
SO AT THIS MOTION, IT WOULD BE GOOD TO UNDERSTAND WHETHER THAT OVER 65 IS BEING REDUCED TO 10.
NOW IT'S BEING REDUCED IS EVERYBODY GETS 40.
AND IF YOU'RE IN ANY OF THE OTHER CATEGORIES, YOU GET AN ADDITIONAL 10.
ANY DISCUSSION ON THAT MOTION? JUST REAL QUICK, UH, BROUGHT TO MY ATTENTION, UH, HOW WOULD THIS AFFECT MAYBE A PAGER OR A PRESS COULD ANSWER THIS FOR ME REAL QUICK, FOR THOSE WHO LIVE IN THE ETJ FOR THOSE WHO HAVE A CALL ADDRESS, BUT IN OUTSIDE THE CITY, IF THEY'RE OUTSIDE THE CITY LIMITS, THEY DO NOT PAY CITY OF KYLE TAXES.
ANY OTHER DISCUSSION? ALL THOSE IN FAVOR, SAY AYE.
IS THERE ANY OBJECTION TO THIS BEING FINALLY PASSED? SEEING NONE.
IT IS FINALLY PASSED MOTION TO ADJOURN.