Public Hearing on Proposed Denton County Tax Rate for Tax Year 2017 - - PowerPoint PPT Presentation

Public Hearing on Proposed Denton County Tax Rate for Tax Year 2017

August 18, 2015 – 7:00 p.m. August 25, 2015 – 10:00 a.m.

Denton Central Appraisal District

Appraisal Districts were established in 1981 as a political subdivision and are responsible for appraising property for ad valorem tax purposes of each taxing unit. Taxing jurisdictions have no control over the specific appraisal of individual property valuations.

Contact Information: Chief Appraiser Rudy Durham 3911 Morse Street Denton, Texas 76205 Metro: 972-434-2602 Fax: 940-387-4824

Effective Tax Rate

• The effective tax rate will provide the taxing

unit with approximately the same amount of revenue it had the year before on properties taxed in both years.

• Generally, if values increase, the effective tax rate

goes down; if values decrease, the effective tax rate goes up.

4 Principles of Truth-In-Taxation

• Property owners receive notices of their properties’ appraised

value and estimated taxes that could result from the new value.

• Taxing units must publish its effective and rollback tax rates

before adopting an actual rate.

• Notices must be published and taxing entity must hold two

public hearings before adopting a tax rate that exceeds the lower of the rollback rate or the effective rate.

• If a taxing unit adopts a rate that exceeds the rollback rate,

voters may petition for an election to limit the rate to the rollback rate.

Important Property Tax Dates

• April 1 –

Chief Appraiser sends property appraisal notices to single family residences.

• May 1 –

Chief Appraiser sends notices to any other properties requiring notice

• May 31 – Deadline to file a protest of your appraisal with

the Appraisal District

• July 25 – Deadline for Chief Appraiser to Certify the

Appraisal Roll

• August – Cities and Counties Propose Tax Rates and

Publish Notice

• August-September – Taxing units adopt budget and tax

rate

• October – Tax Assessor/Collector prepares and mails tax

bills

Public Hearing Notices/Proposed Tax Rate

• Public hearings on a tax increase are triggered by any increase
• ver the Effective Tax Rate.
• At the conclusion of the final budget workshop on August 1st, the

Commissioners Court unanimously voted to propose a tax rate of $0.237812 and scheduled two public hearings on the proposed rate.

• The “Notice of Proposed Property Tax Rate” has been advertised

and posted according to the provisions detailed in the Local Government Code as follows:

• ¼ page notice appeared in the Denton Record Chronicle on Friday,

August 11th.

• Notice was posted on the main page of the Denton County web site

and will remain posted through August 29th.

• Notice was provided to the local free-access cable station to run for

60 second periods at least 5 times per day between the hours of 7:00am and 9:00pm through August 29th.

Maintenance and Operation Rate

• Is the component of the tax rate that will impose the

amount of taxes needed to fund maintenance and

• peration expenditures for the following year.

Debt Rate

• The amount of taxes needed to fund debt service

(long-term debt service payments) for the following year.

Rollback Rate

• The tax rate which, if the adopted rate exceeds,

exposes taxing unit to a rollback election.

Proposed Tax Rate Breakdown

• Maintenance & Operation Rate =

$0.173786

• Debt Rate =

$0.064026

• Total Proposed Rate =

$0.237812

Summary of Current and Proposed County Tax Rate

• Current Tax Rate = $0.248409
• Effective Tax Rate = $0.234135
• Proposed Tax Rate = $0.237812
• Variance (Current vs. Proposed) = ($0.010597)
• Variance (Proposed vs. Effective Rate)= $0.003677
• Rollback Tax Rate =

$0.248971 The Proposed Tax Rate is 1.570461% above the effective tax rate.

New Property Value

• New property value generates new revenue

for a taxing unit. This helps offset property value losses for new exemptions and special appraisals granted for the first time in the current year.

• The taxing unit deducts new property value

from the appraised values in the effective tax rate calculation

• New

Property values totaled

• ver

$3.6 billion which provides $8,675,101 in new funds used in the proposed FY2018 budget; an increase of $1.5 million above last year

Denton County, Texas

• The tax rate increase above the calculated effective

tax rate.

Total Taxable Value in Denton County = $ 87,261,998,321 Total Tax Levy on Effective Tax Rate = $ 204,310,879 Total Tax Levy on Proposed Tax Rate = $ 207,519,503 Actual Increase In Taxes Above the Effective Rate = $ 3,208,624

Denton County, Texas

Effective Rate vs. Proposed Rate

Sample Home Value Effective Rate County Taxes Proposed Rate County Taxes Annual Variance Monthly Variance Tax Rate per $100 Value: $0.234135 $0.237812 Impact (Savings) Impact (Savings) $100,000 $234.14 $237.81 $3.67 $0.31 $150,000 $351.20 $356.72 $5.52 $0.46 $200,000 $468.27 $475.62 $7.35 $0.61 $298,231 (Avg. home value) $698.26 $709.23 $10.97 $0.91

• This chart assumes no increase in valuation. Changes in an individual taxpayer’s county taxes depend on the

specific change in property valuation.

Denton County, Texas

Current Rate vs. Proposed Rate

Sample Home Value Current Rate County Taxes Proposed Rate County Taxes Annual Variance Monthly Variance Tax Rate per $100 Value: $0.248409 $0.237812 Impact (Savings) Impact (Savings) $100,000 $248.41 $237.81 ($10.60) ($ .88) $150,000 $372.61 $356.72 ($15.89) ($1.32) $200,000 $496.82 $475.62 ($21.20) ($1.77) $298,231 (Avg. home value) $740.83 $709.23 ($31.60) ($2.63)

• This chart assumes no increase in valuation. Changes in an individual taxpayer’s county taxes depend on the

specific change in property valuation.

Impact Of Proposed Tax Rate Based on the Average Home Value

Last Year Proposed Impact Average Home (Taxable Value) $274,839 $298,231 $23,392 Tax Rate $0.248409 $0.237812 ($0.0106) Property Tax Levied $682.72 $709.23 $26.51

Monthly Estimated Increase $2.21

Denton County, Texas

Property Taxes for Average Home Owner City of Denton–Current Tax Rates (Tax Year 2016)

Based on the Average $274,839 Denton County Home Value

Tax Rates: Denton County $0.248409 / Denton ISD $1.540 / City of Denton $0.68475

Total Taxes $6,798 School District* $4,233

• r

62% City of Denton $1,882 or 28% Denton County $683 or 10%

Denton County, Texas Property Taxes for Average Home Owner City of Denton – Proposed Rates (Tax Year 2017)

Based on the Average $298,231 Denton County Home Value

* Proposed Tax Rates: Denton County $0.237812 / Denton ISD $1.540 / City of Denton $0.6833

Total Taxes $7,340 School District* $4,593

• r

62% City of Denton $2,038 or 28% Denton County $709 or 10%

Denton County, Texas

Average Home Value/Monthly Taxes

Based on the average Denton County Home Value of $298,231 Based on proposed tax rates for each entity

59 383 170

50 100 150 200 250 300 350 400 450

Denton County School District City of Denton

Monthly Taxes

$612

0.05 0.1 0.15 0.2 0.25 0.3 0.35 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17

Cents Per $100 Value Tax Year

Denton County, Texas

Ten-Year Tax Rate History

Denton County, Texas

Comparison of Top 10 Texas Counties Taxes Assessed County-Wide

Denton County’s tax rate is the proposed rate for FY18. Other counties tax rates are the existing FY17 rates. All rates reflected include a combined total of the tax rates that are assessed on a county-wide basis not only for the county but for any Hospital Districts, Community College Districts, Flood Control Districts, Port Authority Districts, etc. if applicable.

0.100000 0.200000 0.300000 0.400000 0.500000 0.600000 0.700000 0.800000 0.900000 1.000000 1.100000

Denton Collin Fort Bend Travis Harris Tarrant Dallas Bexar El Paso Hidalgo

Tax Rate in Cents

Denton County, Texas

Tax Bill Comparison

Based on Denton County’s average home value of $298,231

This chart reflects Denton County’s proposed tax rate for FY2018 while the other counties tax rates are the existing FY2017 rates. The totals include a combined total of taxes assessed on a county- wide basis not only for the County but for any Hospital District, and Community College District

• taxes. The chart does not include city, special districts or school district taxes for in each county.

$0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 $2,000

Denton County Proposed Tarrant County Current Dallas County Current Collin County Current

$709 $1,927 $1,953 $864 Annual Tax Bill

Tax Rate Comparison / 254 Counties

Only 2 have a current county tax rate lower than we propose:

Midland $0.155992 Collin $0.208395

All county tax rates range from $0.155992 to $1.196053 Average rate of 254 counties = $0.5858 Denton County’s proposed rate = $0.237812

Source – https://comptroller.texas.gov/taxes/property-tax/rates/index.php

Top 15 Counties Population/Employee

Denton County information is based on the proposed FY18 budget. Information for other counties is based on FY17 survey data.

County Population # Employees # Emp Per 1000

Harris 4,590,000 16,092 3.51 Dallas 2,480,000 6,307 2.54 Tarrant 1,928,300 4,348 2.25 Bexar 1,897,753 4,813 2.54 Travis 1,242,674 5,188 4.17 Collin 914,127 1,790 1.96 Hidalgo 842,304 3,092 3.67 El Paso 836,575 2,812 3.36 Denton 814,560 1,700 2.09 Fort Bend 716,087 2,338 3.26 Montgomery 537,559 2,271 4.22 Williamson 508,514 1,578 3.10 Cameron 420,392 1,740 4.14 Nueces 359,715 1,247 3.47 Brazoria 346,312 1,474 4.26

Denton County, Texas

Number of Employees per Capita

614.7 628.3 662.6 673.8 683.0 694.1 713.2 734.9 758.4 814.6 2.41 2.38 2.27 2.23 2.23 2.32 2.30 2.25 2.21 2.09 1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 5.00 0.0 100.0 200.0 300.0 400.0 500.0 600.0 700.0 800.0 900.0 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18

Series2 Series1

Fiscal Year Population in Thousands Employees per Capita

Summary of Budget Process

• February 14th –

court establishes goals and kicks off the budget process

• March-April –

departments prepare budget requests

• May-June –

Budget Office prepares Recommended Budget

• July 18th –

Budget Office presents Recommended Budget to Commissioners Court

• July 25th and August 1st – Budget Workshops
• August 22nd and August 29th – Public Hearings on Proposed

Tax Rate

• September 5th – Adoption of Budget and Tax Rate

Denton County, Texas

Revenue Summary by Function $292,140,080

Property Taxes 71% Interest <1% Miscellaneous 3% Fund Balance 9% Fees 7% Fines 1% Intergovernmental 5% Auto Registration 4%

Functions of Denton County

• Public Safety
• County Jail and Jail Health
• Sheriff’s Department
• Adult and Juvenile Probation
• (6) Constables
• Fire and Ambulance Services
• Emergency Management/Homeland

Security

• County Roads and Bridges
• Judicial/Legal - Criminal Justice System
• (22) District, County, & Justice of the

Peace Courts

• Criminal District Attorney
• District Clerk and Jury Services
• Medical Examiner Services
• Security Services
• Debt Service – Long Term Debt
• Roads and Bridges
• Facilities / Technology
• Miscellaneous
• Transfers
• Intergovernmental
• Conservation
• Health and Welfare
• Health- Clinical/Dental/ Environmental
• Child Protective Services
• Indigent Health Care
• Financial
• County Auditor
• County Treasurer
• Tax Assessor/Collector

Motor Vehicle Registration/Property Taxes

• Budget Office
• General Administration
• County Clerk
• Commissioners Court
• Human Resources
• Purchasing
• Technology Services
• Elections
• Veterans Service
• Public Works
• Facilities Management
• Capital Projects

Denton County, Texas

Expense Summary by Function

$292,140,080

Public Safety 29% Facilities 5% General Administration 12% Miscellaneous 4% Debt Service 20% Road & Bridge 5% Legal 4% Judicial 9% Health & Welfare 4% Financial 3% Capital Projects 5%

Summary of Major Changes

5% Sliding of the Scale/Various Salary Adjustments/Benefits $ 9,046,000 Increase in Debt Service Payments $ 5,487,000 New Building/Parking Lot Repairs- Capital Replacement Funds $ 4,994,000 New Hires $ 2,330,000 Transfer to Capital Replacement Fund $ 2,000,000 Increased Road Project Planning $ 1,000,000 Road Maintenance Equipment/Cars/Small Trucks $ 902,000 Increased Computer Equipment/Software $ 616,000 Increased Repairs and Maintenance $ 436,000 Increased Fire Calls $ 284,100 Other Miscellaneous Reductions $ -568,200 Total Proposed Budget Increase $ 26,527,000

Denton County, Texas

Summary of New Positions - FY 2018

• New Positions Requested =

32.25

• New Positions Proposed =

24.25

– Human Resources – Human Resources Information Systems (HRIS) Administrator – Technology Services – Software Administrator; and Cyber Security Risk and Compliance Administrator – Office of History and Culture –Volunteer and Tour Coordinator (PT to FT) – Probate Court –Part-Time Senior Paralegal – County Criminal Court #3 – Program Manager Veterans Court (previously 50% Grant funded) – Death Investigations/Medical Examiner - Medical Investigator – Criminal District Attorney – Felony Prosecutor IIA; and Felony Prosecutor I – Construction Management – Construction Coordinator – Facilities Management – (2) Maint. Repair Specialist I; and Contract Administrator – Sheriff’s Department – (1) Deputy Sheriff; (3) Deputy Sheriff (Patrol); and Research Crime Analyst (transferred from Department of Public Safety) – Constable, Pct. 3 – Deputy Constable – Constable, Pct. 6 – Deputy Constable – Emergency Services – Emergency Management Officer II / Volunteer Coordinator – Road and Bridge, Pct. #1 – Lead Mechanic – Road and Bridge, Pct. #4 – Driver / Equipment Operator III – Public Health Clinical – (2) Program Coordinators – District Clerk – Senior Clerk

Denton County, Texas

Summary of Deleted Positions - FY 2018

• Deleted Slots:

– Veteran’s Court Grant – Program Manager (funded 50% of this position which is now absorbed

100% in County budget)

– Juvenile Probation – Juvenile Probation Officer; and ISP Officer (now funded by grant) – District Attorney / Hot Check Department - Administrative Specialist II (PT)

Denton County, Texas Increased Debt Service for FY2018 Voter Approved Road Projects

– TRIP ‘08 Roads, County Judge $ 14,000,000 – County Roads, Pct #1 5,868,874 – TRIP ‘08 Roads, Pct #3 2,000,000 – County Roads, Pct #4 6,808,608 – TRIP ‘08 Roads, Pct #4 1,750,000 – Sub-Total, Roads, Pct #4 8,558,608 – TOTAL ROAD PROJECTS $ 30,427,482

Denton County, Texas Increased Debt Service Voter Approved Building Projects for FY2018

– Loop 288-Phase III (construction) $ 30,815,260 – Grand Total- Building Projects $ 30,815,260

Denton County, Texas Summary of Voter Approved Projects Included in Debt Service for FY2018:

– County Roads $ 12,677,482 – TRIP ‘08 Roads $ 17,750,000 – Building Projects $ 30,815,260 – TOTAL VOTER APPROVED PROJECTS $ 61,242,742

Denton County, Texas

November 4, 2008 Bond Election Results

Proposition #1 Road Projects @ $310 million received 68.22% voter approval (Issued to-date $289,987,929 - Balance to Issue $20,012,071) Proposition #2 Building/Technology Projects @ $185 million received 52.25% voter approval (Issued to-date $157,542,142 - Balance to Issue $27,457,858)

Total Projects approved by the voters totaled $495 million

Denton County, Texas Summary of Tax Note Projects

• Approved Projects:

– Loop 288 Phase III (addl. funds -design approval) $ 2,700,000 – Voting Equipment $ 9,200,000 – Records Management Facility (design) $ 1,070,000 – TOTAL TAX NOTE PROJECTS $ 12,970,000

Additional Information

Proposed budget will be on file in the Budget Office, County Clerk and County Auditor’s Office and will be posted on the main page of the web site by Wednesday, August 30, 2017. Public Hearing on the Proposed Budget – 7:00 p.m.

• n

Tuesday September 5, 2017 at the Courthouse-on-the- Square in the Commissioners Courtroom. Adoption of the budget is scheduled immediately following the public hearing. Adoption of the tax rate will follow adoption of the budget.

Questions / Comments Public Participation

• Questions or comments
• Invite public input on the proposed

tax rate

At the Conclusion

• f the Public Hearing
• Announce the date, time and place that the proposed tax

rate will be scheduled for adoption:

• Schedule

adoption

• f

the tax rate for Tuesday, September 5, 2017 immediately following the Public Hearing on the Proposed Budget (which will take place at 7:00 pm) at the Courthouse on the Square, in the Commissioners Courtroom, 110 West Hickory, Denton, Texas.