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14 Tax Freeze ordinanceCITY COUNCIL AGENDA ITEM BRIEFING SHEET Submittal Date: Originating Department: Presented By: Agenda Item No.: 6/18/08 Council Date: City Council Kevin Carruth 14. 6/23/08 RECOMMENDED MOTION: Not an action item. POLICY ISSUE(S): Fiscal management; Ordinance BACKGROUND: At the June 9 meeting City Council informed the public that the petition ordinance calling for a senior and disabled tax freeze violated the Texas Constitution and an election for the petition would not be called. Councilmember Pickle requested staff to place the item on the June 23 agenda for consideration and passage of a constitutional ordinance. Following the June 23 meeting Council Member Pickle refined his request and changed it from an ordinance adopting the freeze to an ordinance calling for an election to allow citizens to vote on a constitutional tax freeze ordinance. Since there was a change in the agenda request at the meeting this item is for discussion only. Council has until August 26, 2008, to call for an election on the November uniform election date. According to the Secretary of State's office, Council cannot call for an election for the May uniform election date until after the Secretary's office has developed the detailed election calendar, which will be a few months yet. BOARD/COMMISSION RECOMMENDATION: EXHIBITS: Level of taxes when frozen table; Tax revenue impact of proposed tax freeze table; Census 2000 Demographic Profile Highlights; Council Member Strathern's 6/18/08 Memo ACTION: BUDGET INFO: ❑ Financial Report ❑ Minute Order Expense $ ❑ Department Report ❑ Resolution Budgeted Amt. $ Z Presentation ❑ Ordinance y'I'D Actual $ ❑ Public Hearing ❑ Other Acct. Name Acct. Number FISCAL NOTES: The impact on the individual average homestead value would be $33.99 and $135.00 for a$100,000 home. The total revenue impact is estimated to grow to from $29,577.41 the first year to $343,794.09 by year 10. To offset the loss ad valorem taxes for remaining citizens and business, the tax rate will have to increase around $0.0246 by year 109 City of Paris - 000055 Revised 2/04/08 REVIEWED AND APPROVED BY: Z Administration Z City Clerk ❑ Community Development ❑ EMS/IT Z Finance ❑ Fire ❑ Municipal Court E Legal ❑ Library ❑ Police ❑ Eng./Public Works ❑ Utilities City of Paris - 000056 Revised 2/04/08 Level of Taxes When Frozen, 2003 v. 2007 Impact on Average Homestead Value Description Tax Year 2003 Tax Year 2007 Difference Ave. Homestead Value $ 53,736.00 $ 60,621.00 ' Tax Rate per $100 value $ 0.695 $ 0.560 Total City Tax $ 373.47 $ 339.48 $(33.99) Impact on $100,000 Home Description Tax Year 2003 Tax Year 2007 Difference Homestead Value of $100,000 $ 100,000.00 $ 100,000.00 ' Tax Rate per $100 value $ 0.695 $ 0.560 Total City Tax $ 695.00 $ 560.00 $ (135.00) City of Paris - QM57 Revised 6/18/08 M O N O N e-I Ct ~ICT ~ M ~ O O V 0 0 1 o 0 ~ et W °0 o m 6 N 6 06 M -tt 1 t D f-I V M N ~q i/? 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V} tC O ~ 00 ~ ~ ~ w rn~ m ~ o o ~ m N 01 O 01 ' p O L t O O ~ 7 e-I 01 N O M y., 4-1 p 00 M-* lD ~--I 3 3 O O N > tO p e.r ~o oi O ~ a, N O~ 00 O Ln tD ~ ~ ~ O J co -1 e -1 ~ N N 41 0,m 3 7 C N C N ~ ~ N N ~ O O t0 I~ ~ ~ p p ~ ro m ~ m o o a) r, m v i to tv O O ~'d 00 ~O N O ~ ~ M N N ~ ~ C tI1 l0 m m c~ .1 .1 L co L m c» + u ~ ~ t--I N o6 01 ~ O' O 00 r-i rn M r-I Paris city, Texas - Fact Sheet - American FactFinder FACT SHEET Page 1 of 2 Paris city, Texas View a Fact Sheet for a race, ethnic, or ancestry group Census 2000 Demographic Profile Highlights: General Characteristics - show more » Number Percent U.S. Total population 25,898 map brief Male 11,982 46.3 49.1% map brief Female 13,916 53.7 50.9% map brief Median age (years) 36.5 (X) 35.3 map brief Under 5 years 1,923 7.4 6.8% map 18 years and over 19,329 74.6 74.3% 65 years and over 4,652 18.0 12.4% map brief One race 25,477 98.4 97.6% White 18,884 72.9 75.1 % map brief Black or African American 5,766 22.3 12.3% map brief American Indian and Alaska Native 245 0.9 0.9% map brief Asian 172 0.7 3.6% map brief Native Hawaiian and Other Pacific Islander 7 0.0 0.1 % map brief Some other race 403 1.6 5.5% map Two or more races 421 1.6 2.4% map brief Hispanic or Latino (of any race) 1,068 4.1 12.5% map brief Household population 24,848 95.9 97.2% map brief Group quarters population 1,050 4.1 2.8% map Average household size 2.35 (X) 2.59 map brief Average family size 2.97 (X) 3.14 map Total housing units 11,777 map Occupied housing units 10,570 89.8 91.0% brief Owner-occupied housing units 5,742 54.3 66.2% map Renter-occupied housing units 4,828 45.7 33.8% map brief Vacant housing units 1,207 10.2 9.0% map Social Characteristics - show more » Number Percent U.S. Population 25 years and over 16,725 High school graduate or higher 12,370 74.0 80.4% map brief Bachelor's degree or higher 2,550 152 24.4% map Civilian veterans (civilian population 18 years and over) 2,786 14.5 12.7% ma P brief Disability status (population 5 years and over) 6,797 29.4 19.3% map brief Foreign bom 567 2.2 11.1 % map brief Male, Now married, except separated (population 15 years and over) 5,170 56.7 56.7% brief Female, Now married, except separated (population 15 years and over) 5,198 46.5 52.1% brief Speak a language other than English at home (population 5 years and over) 1,200 5.0 17.9% map brief Economic Characteristics - show more » Number Percent U.S. In labor force (population 16 years and over) 11,031 55.3 63.9% brief Mean travel time to work in minutes (workers 16 years and over) 16.4 (X) 25.5 map brief Median household income in 1999 (dollars) 27,438 (X) 41,994 map Median family income in 1999 (dollars) 34,916 (X) 50,046 map Per capita income in 1999 (dollars) 17,137 (X) 21,587 map Families below poverty level 1,121 16.5 9.2% map brief Individuals below poverty level 5,125 20.6 12.4% map Housing Characteristics - show more » Number Percent U.S. Single-family owner-occupied homes 5,187 brief - OOU059' http://factfinder.census.gov/servlet/SAFFFacts? event=&ActiveGeoDiv=geoSelect&pctxt... 6/18/2008 Paris city, Texas - Fact Sheet - American FactFinder Page 2 of 2 Median value (dollars) 52,600 (X) 119,600 map brief Median of selected monthly owner costs (X) (X) brief With a mortgage (dollars) 690 (X) 1,088 map Not mortgaged (dollars) 264 (X) 295 (X) Not applicable. Source: U.S. Census Bureau, Summary File 1(SF 1) and Summary File 3(SF 3) The letters PDF or symbol indicate a document is in the Portable Document Format (PDF). To view the file you will need the AdobeD Acrobat@ Reader, which is available for free from the Adobe web site. . 000060 http://factfmder.census.gov/servlet/SAFFFacts? event=&ActiveGeoDiv=geoSelect&pctxt... 6/18/2008 MEMO0 TO: Mayor & Council Members Kevin Carruth, City Manager Kent Mcllyar, City Attorney FROM: Bill Strathern S U BJ ECT: /nteresting and Educational Artic% DATE: June 18, 2008 Enclosed is an article from USA today dated June 16, 2008. This article provides food for thought as we consider how we handle the tax freeze. WCS enclosure P,Pnop I ~ ~ ~(ij C11%, 9C / ~ ~ ~ ~ ~ ~c ifig atnone sen~ors y Some hitretirement years loaded with debt By Chr3stine Dugas USA TODAY swampea by aent ana ris116 medical aills,, elderiy Amerirans have been seeking banicruptcy- court protection at sharplyk~faster rates than other adults, a study to be released today itidieates. , Erom 1991 to 2007, the rate of personal bankruptqrfilings among those ages 65 or oldet jumped by 150%, according to AARP, which will release ttie nevV reseaz~h from th,e`Consumer Bankruptc'yFroject. The ,inost sCaitling rise qcdnred amtang those ages 75 to 84, whose ~`'iestwdy did not address the t`i'easons behind the trend. Zt experts 5ay medical biRs have Lyed a,moor role in the debt that ~`tiiteYl=mary4decly Arnericans tnt6tai&tipCcy proceedings. 'Healttt c4e is a big issue for the elilerly,' sa~rs George Gaber]avage; director of consumer and state af- faits at the AARP PubGc Policy In- stitute. '"And out of-pocket ex- penses fiave been going up." Retirees in debt Relative perc.entage change in banklvpccy filing rates from 1991-2007, by age category Age %change ]8-24 -64.1% 2S 34. -46,1% 35-44 30.1% 45-54 24.7% 55-64 40% 65 74 125% 75-84 433.3% 1'otat filmgs ,2s.2% Source:20p7.Con5umerBankruptcyProJect As a result, `Gaberlavage says he thinks health care is the sirigle big- gest cause of the rise in filicigs. Domg the same 1991-2007 pe- riod, bankruptcy frlings'by younger Mmericar)s actually dectined. 'Ihe 2007 statistics ate based pn a national sample that included 2,435 responses from banlruptcy filers. lt's the first in several Con- sumer Bankruptcy Project reports supported by AARP, wluch will lat- er study and sp611 out the individual factors behind the increase. The number of personal bank- ruptcy filings for all age groups de- clined after a stricter new law took effect in 2005. Still, when the filings from 2007 were compared with those from 19911those of otder Americans, as a percentage of all filings, have sutged. tn past generations, older Americans, were more finanaally secure," says Elizabeth Wacren, a Hatvard Ww professor and co-au- thor of the Consumer B~tcy Project study. "Now, instead o go- ing into tetirementloaded witb as- sets, Americans are hitting tlieir re- tirement yeacs .loaded with debt" In pievious decades, Warren notes, Social Securiry helped lift millions of oldec Amencans uito a solidly middle-class life. But now, with the rising cost of food, drugs and housu'~g,Sacial Security often doesn't go far enough. For the elderly, bankruptcy is a particular concern because it's rypically harder for seniors, usually lacking in well~p aying job opportu- niries, to climb ba~c owt of it "T~ey have so }ittle time to start over and build up savings, and they have few or no job opportunities," says Susan Reinhard, director ofthe AARP Public Policy lnstitute. "°fhe aonnection between health and economic security is a big issue for older Americans." - 000(l6~