Loading...
07 Public educationCITY COUNCIL AGENDA ITEM BRIEFING SHEET Submittal Date: Originating Departmerrt: Presented By: Agenda Item No.: 9/ 17/OS Council Date: City A/Ianager Kevin Carruth 7. 9/29/08 RECOMMENDED MOTION: POLICY ISSUE(S): Public education BACKGROUND: Council has called for a special election on November 4 to allow citizens to decide on whether or not t adopt a senior and disabled tax freeze (eaxly voting is October 20-31). There has been no recent discussion of the topic thax would allow voters the opportunity to examine the issue thoughtfully and consider the positive and negative impacts of the passage or defeat of the proposed ordinance. Section 255.003 of the Texas Election Code prohibits the use of public funds for political advertising but does a11ow a public agency to educate its citizens as long as the advertising does not advocate the passage or defeat of a ballot measure. Staff needs direction from Council on what effort Council desires for educating citizens about the tux freeze. Potential options include developing an FAQ, making presentations to civic and community groups, placing infoimaxion on the Cit/s website, direct mailing information to all addresses, radio and newspapers ads, or doing nothing at all. BOARD/COMMISSION RECOMMENDATION: E XII IIBITS: Sections 251.001 and 255.003 of the Texas Election Code; City of Windcrest FAQ; Texas Ethics Commission Order of Dismissal ACTION: BUDGET INFO: ❑ Financial Report ❑ Minute Order Expense $ ❑ Department Report ❑ Resolution Budgeted Amt $ ❑ Ptesentation ❑ Ordinance y'TD A,ctual $ ❑ Public Hearing Z Other A,cct Name Acct Number FiscAL NoTES: REVIEWED AND APPROVED BY: Z Administration Z City Clerk ❑ Community Development ❑ EMS/IT ❑ Finance ❑ Fire ❑ Municipal Court [D Legal ❑ Library ❑ Police ❑ Eng./Public Woxks ❑ Utilities City of Paris Revised 2/04/08 _ 000024 § 255.003. UNLAWFUL USE OF PUBLIC FUNDS FOR POLITICAL ADVERTISING. (a) An officer or employee of a political subdivision may not spend or authorize the spending of public funds for political advertising. (b) This section does not apply to a communication that factually describes the purposes of a measure if the communication does not advocate passage or defeat of the measure. (c) A person who violates this section commits an offense. An offense under this section is a Class A misdemeanor. § 251.001. DEFINITIONS. In this title: (16) "Political advertising" means a communication supporting or opposing a candidate for nomination or election to a public office or office of a political party, a political party, a public officer, or a measure that: (A) in return for consideration, is published in a newspaper, magazine, or other periodical or is broadcast by radio or television; or (B) appears: (i) in a pamphlet, circular, flier, billboard or other sign, bumper sticker, or similar form of written communication; or (ii) on an Internet website. 000025 CITY OF WINDCREST 8601 Midcrown Windcrest, Texas 78239-0022 www.ci.windcrest.tx.us CITY HALL 210-655-0022 POLICE 210-655-2666 FAX 210-655-8776 March 31, 2006 Dear Windcrest Resident, Subject: Educational Information Sheet on City Property Tax Freeze Election 1. A Special Windcrest Election is scheduled for Saturday, May 13, 2006 with Early Voting days on Monday, May 1- Tuesday, May 9, 2006. Voting is at Citv Hall. The Windcrest General Election for three Council Member positions is also being held on these days and place. 2. The only proposition on the ballot at this Special Windcrest Election deals with the freezing of the City's property taxes for residents disabled or age 65 years or older. Your vote is important and I want to encourage all residents to vote and for you to encourage your Windcrest neighbors and friends to vote. You should find out as much information as possible about the proposition. The City Council, City Staff, and I, as your Mayor, have an obligation to provide you with information to help in your making an intelligent decision. We can legally provide you with information, but we cannot advocate that you vote "For" or "Against" the proposition. 3. You will find attached an Educational Information For Residents sheet on the property tax freeze proposition. 4. Again, the most important thing is for you to vote after careful consideration of the advantages and disadvantages of the proposition. g•~~`,~- Jack H. Leonhardt Mayor - Op0(l26 EDUCATIONAL INFORMATION FOR RESIDENTS Over Age 65/Disabled Property Tax Freeze Special Election, Saturday, May 13, 2006 Special Election Dates. Early Voting Dates: Monday, May 1- Tuesday, May 9; Election Day: Saturday, May 13'h. Each elector is to vote "FOR" or "AGAINST" the following proposition: "THERE SHALL BE A CITY OF WIlVDCREST AD VALOREM TAX LIMITATION ON RESIDENCE HOMESTEADS OF DISABLED PERSONS AND PERSONS SIXTY-FIVE (65) YEARS OF AGE OR OLDER AS AUTHORIZED BY ARTICLE VIII, SECTION 1-b(h) OF THE TEXAS CONSTITUTION" 2. The tax freeze ONLY applies to Windcrest taxes which represent about 12% of your total tax bill. • This election will not affect the 88% of your tax bill which goes to NEISD, Flood, ACCD, Bexar Countv, Hospital District and River Authoritv • Note: the 88% and 12% figures may vary if the resident's school tax is already frozen. 3. What is each eligible resident's savings if the tax freeze is approved? A savings could be obtained in two ways: • Tax Rate Increase: For example, a one-cent increase (e.g. from current $0.412622 to $0.422622) would change your City tax bill (on average home evaluation of $137,751) from $568.39 to $582.17 or $13.78 per year or $1.15 per month. Thus, an over 65/disabled resident would save $1.15 a month for each one cent increase in the tax rate. o This one-cent increase would have provided the City with an additional $36,513 in revenues. • Home Appraisal Value Increase: For example, let's say your home's appraised valuation increases b 3 000. Your City tax bill would increase by $12.38 per year or $1.03 per month (calculation: $0.412622 x$3000/$100 valuation =$12.38 divided by 12 months =$1.03). Thus with taxes frozen, an eligible resident would save $1.03 per month. 4. What will be the impact on the Citv of Windcrest's revenues? • The tax freeze will reduce tLe City's property tax revenues by $3,037,700 durine the next nine (9) vears (2007-2015). The Bexar Appraisal District provided this analysis using historical data on tax rate, appraisal valuation increases, and the number of over age 65 households. NOTE: This analysis did NOT use in its calculation the approximate 8-cent tax increase for the special Interest & Sinking Fund started in 2005 for the $4.2 million Street Repairs Project. • Although the City's revenue loss grows cumulatively over the 9-year period, if one calculates a yearly average, then the loss amounts to an average of $337,522 per vear. 5. What effect would the average annual loss of $337 522 have on City services? Effects/factors include: • Budget expenditures could be reduced. For example, employees could be cut. Services could be reduced. • Property taxes could be raised. Any increase after a freeze would impact those under the age of 65 years more than those over 65/disabled. • In the Budget, sales tax revenues into the City's General Fund for daily operations have continued to decline at about $100,000 per year for the last five years. Other sales tax revenues (street maintenance, economic development corporation, and crime prevention) are special use revenues. • Windcrest is a land-locked city and can not expand its size to be able to attract new homes, additional businesses, industrial parks, or other revenue-producing entities. • Currently it is uncertain as to whether the revitalization of Walzem Road and development of a Windcrest Town Center will be successful. • Some added revenues will come from construction of new homes in Winn Brook Estates and The Gardens of Windcrest. After complete build out and entry on the appraisal rolls in 2008-9, these - 00002 % new homes will provide approximately $190,000 in property tax revenues. Although a positive picture, this revenue merely serves to replace previous revenues, which were obtained from fees and permits during home construction. 6. For the City's FY2005-6 General Fund Budget, property taxes provided $1.154,960 in revenues • This property tax revenue represents about 32% of total revenues; sales taxes provide an additional 37%; and the remaining 31 % of total revenues are collected from fines, fees and other sources. • Total revenues including property taxes allowed the City to fund basic services such as: Fire Service $171,000 Police Dept $ 946,000 EMS $175,000 911 Dispatch $ 240~000 Parks/Lakes $248,000 Court $ 113,000 General Govt $690,000 Public Works $ 638,000 (excludes $4.2M Inspections $174,000 Post Office $ 52,000 Street Project) • If a tax freeze is imposed and property taaces are not increased, which of these services should be reduced? 7. How manv residents would benefit from the tax freeze? • Freezing City of Windcrest taxes means age 65/disabled residents continue to pay the same amount of dollars they are paying now, even if the City tax rate andlor your home appraised valuation increases. • Windcrest has one of the highest median ages at 56 years of any city in Texas. Windcrest, therefore, will be affected by a tax freeze more than most Texas cities. • 53% of Windcrest households (1091 out of 2054) are occupied by an individual over 65 years old or disabled. Thus, any additional new revenues from a property ta.x rate increase or a home's increase in appraised valuation would provide less than half of what would normally be generated. • Residents who are not 65 years old or disabled are the remaining 47% of households; this group alone would bear the brunt of any needed increase in City property tax revenues. • Will there be an impact on younger families moving into Windcrest? Whv has the Citv's propertv tax rate increased from 22 cents (Year 2001) to 41 cents (Year 2005)? • The 6-cent increase from 2001-2003 was for employee salaries, police vehicles, park improvements, Public Works equipment, new Fire Engine fund, and City Hall repairs. • In 2004, of the 5-cent increase, 4 cents were specifically dedicated to street repairs. • In 2005, the 8-cent increase was exclusively for street repairs for the 7-Year Interest & Sinking Fund and this increase will end after 7 years. ~ Thus since 2001, only 7 cents of the 19-cent tax increase have been used for general services and 12 cents are exclusively for street repairs. 9. Alternative tax relief. As an alternative to the possible tax freeze, the City Council on December 19, 2005 passed Resolution No. 262 "A Resolution in support of the adoption of a residential homestead exemption in the amount of $15,000 for the homesteads of persons who are under a disability or sixty- five (65) years of age or older if the voters at an election decline to adopt a tax limitation as authorized in Section 1-b(h) of the Texas Constitution." 10. Other points to consider: • What changes will the Texas Legislature adopt for "school financing" and what will be its impact on property taxes? Since the NEISD tax bill is approximately 62% of the total tax bill, any savings received could help offset future City property tax increases. • Approval of a property tax freeze by Windcrest residents can not be rescinded except by an amendment to the Texas Constitution; thus a freeze is irreversible no matter what changes might occur within the City of Windcrest. - oDOa2g SPECIAL ELECTION (ELECCION ESPECIAL) CITY OF WINDCREST, TEXAS (Ciudad de Windcrest, Texas) May 13, 2006 (dia 13 de Mayo de 2006) OFFICIAL BALLOT FOR (A FAVOR) ] `THERE SHALL BE A CITY OF WINDCREST AD VALOREM TAX ] LIMITATION ON RESIDENCE HOMESTEADS OF DISABLED AGAINST (EN CONTRA) ] PERSONS OR PERSONS SIXTY-FIVE (65) YEARS OF AGE OR OLDER AS AUTHORIZED BY ARTICLE VIII, SECTION 1-b(h) OF THE TEXAS CONSTITUTION." (UNA RESTRICCION EN LA CIUDAD DE WINDCREST SOBRE LOS IMPUESTOS AD VALOREM SOBRE LOS HOGARES SEGUROS DE LAS PERSONAS INCAPACITADAS Y DE LAS PERSONA DE A LO MENOS SESENTA Y CINCO (65) ANOS DE EDAD, SEGUN AUTORICE LA SESSION 1-b(h) DEL ARTICULO VIII, DE LA CONSTITUCION DE TEXAS" City of Windcrest 8601 Midcrown Windcrest, TX 78239 Current Resident Xxxxxxxxxxxxxx Windcrest, TX 78239 I.LVl.f O.RrlANrL WINI/1.:R.L' Sl, SPECIAL ELFCTI()N IIITFORMAT.If1N Prsrt Std US Postage PAID Permit # San Antonio TX 0 000029 JUL-18-2007(WED) 09:09 BOVEy & BOJORQUEZ, LLP (FRx)5122500749 P.005/007 TExAs ETxIcs CaMWssiaN IIY TAE MATTER O1+ ~ BEFORE THE ~ JACJ+C I,EONHARQT, § ThXAS ErRTCS COMMISSION RESPQNDENT ~ ~ SC•2G06159 aRnER oF DrsnUssAL I. Recitals Thc Texas Ethics Commissian (tho commissian) met an Juno 28, 2007, to cansidcr swom complaint 5C-2606139. A qvorum of the cammissian was Dresent. The commission determined that thcrc is credible evidence thac no vipiation of a law or cule administercd =.d ertPorced bythe cntnmission has occmrced. 7'he commission diemissed the-eworn cotuplaint fac the reasons scamd in this ordar. 1T A.1legatians The cornplaiat alle$es that the respondeat spent or authari2ed the speuding of pubtic funds for pnliticat advertisiAg, in violation af section 255.003 of the Flectiott Code. III. 'p'acts 5uppotted by Credlble Ev34epce GredibIa evidenae avQ;lable to the carnmission supports the foliowing f,4di.ugs af face: t. 7he respandgot is Mayar af the City nf'Wiadcrest. The complaint is based oA a uacr aad an inforni.atioa shest mailod te the citazep9 of Windcrest abauc art eie.ction fcr a pmperty u~x frerze for residenrs who arc disablcd or over 65. The lerrer is an ciryr stationery and is 9igned by the raspondent. The locter reminds paopie abou.t the eiection and si3te$ that the city cannot adr►ocate for or against the pmposition. The letter rcfercncos an rutaehed iafonuation sheet. 3• "y`he in#'ermation ahcet dtsGribes the possble effects of pnssiug the progerty mx &eeze. iacTuding posaible tax irir.reases or nc3uctions in savice and iacluda certain calcntaxions and projections about thc -firiancial conditioa of the city. 4. '!'he ccmplAitrmt digputes that the infonnatiaa prorrided is factual and asseXts th4t the wording aud Forrnaning of the informatioa sheet ace designBd to persuade pcopte to votc agaiast tlhe freeze. . OROERoF AISMIssAL PAcs 1 or• 3 - 000030 JuL-io-cuurtwtul uy;Ju tlUVty & BOJORQUEZ, LLP (FRX)5122500749 P.007/007 Te= Ethics Commissiou SC-2606IS9 V. CopAdenti$Ury This disrnissal ordcr is coqfideatiaI uudcr 9ection 571.140 of the Govemmenr Code, ancf may tioi be disclosed by members and etaff of the ccmmission. . VI. Qtdcr The Texas Ethics Camrnissiaa hctcby dimieaes fhis compleint. Texas Etbics Cornmisaion JaY. :DA A~_ 9: • A$Yid A. Reisn=, Exeeativt Dircctor ~ J~zS~ ea-~ Aato OROEta OF DwMtSSAL. PAQE 3 oF 3 . 000031