The URL can be used to link to this page

Home My WebLink AboutAd Valorem Tax Considerations presentationTown of Westlake Public Hearing Ad Valorem Tax Considerations September 29, 2010 4/5/2013 Ad Valorem Tax Considerations 2 FY 10/11 FY 11/12 FY 12/13 FY 13/14 FY 14/15 1 Real Estate Residential Property Totals ***521,898,037$ 521,898,037$ 532,335,998$ 542,982,718$ 553,842,372$ 2 Real Estate Commercial Property Totals 360,128,750 480,128,750 560,128,750 571,331,325 582,757,952 3 Personal Property Commercial 73,420,539 73,420,539 99,888,950 101,886,729 103,924,463 4 Agriculture Taxable Property Total 70,087,970 70,087,970 71,489,729 72,919,524 74,377,914 4 Ag Deferrals (Exemption)(69,824,195) (69,824,195) (71,220,679) (72,645,092) (74,097,994) 5 Arbitration Cases estimated (82,881,010) (82,881,010) (84,538,630) (86,229,403) (87,953,991) 5 Incomplete Accounts (3,245,856) (3,245,856) (3,310,773) (3,376,989) (3,444,528) 5 20% Homestead Exemption (66,574,802) (66,574,802) (67,906,298) (69,264,424) (70,649,712) 5 Disabled Vets (12,000) (12,000) (12,240) (12,485) (12,734) 5 Absolute Exemptions (6,038,661) (6,038,661) (6,159,434) (6,282,623) (6,408,275) Tarrant Cty Certified Taxable Value 796,958,772 916,958,772 1,030,695,372 1,051,309,280 1,072,335,465 6 Denton County Taxable Property Total 1,352,244 1,352,244 1,352,244 1,379,289 1,406,875 Certified Taxable Value 798,311,016 918,311,016 1,032,047,616 1,052,688,569 1,073,742,340 7 Fidelity Phase I tax abatement/rebate (61,675,718) - - - - 8 Fidelity Phase II tax abate./rebate (thru FY 18-19)(72,036,961) (72,036,961) (73,477,700) (74,947,254) (76,446,200) 9 Fidelity Phase I comm. personal property .66%(7,366,679) - - - - 10 Fidelity Phase II comm. personal property .33%(3,683,339) (3,757,006) (3,832,146) (3,908,789) (3,986,965) 11 Deloitte tax abatement/rebate (thru FY 20-21)- (90,000,000) (150,000,000) (153,000,000) (156,060,000) 12 Deloitte commercial personal property - - (18,750,000) (19,125,000) (19,507,500) Total Net Taxable Value 653,548,318 752,517,049 785,987,770 801,707,525 817,741,676 Assumption of 98% collection rate 640,477,352$ 737,466,708$ 770,268,014$ 785,673,375$ 801,386,842$ Tax Revenue from one cent property tax 64,048$ 73,747$ 77,027$ 78,567$ 80,139$ ***65 and older taxable value represents $24,091,253 which is not included in the totals above Abatements and rebates FIVE YEAR FORECAST (20% Homestead Exemption and 65 & Older Freeze Included) Town Council Approved Property Tax Exemptions Approved by Council June 28, 2010 –Over 65 / Disabled – base year value “zero” for those who qualify this year; future years would be frozen at value at the time of turning age 65 or disability –Homestead Exemption – 20% (current maximum allowed by State law) 4/5/2013 Ad Valorem Tax Considerations 3 Tax Rate Amounts •Maintenance & Operations (M&O) $.1562 per $100 of assessed valuation generates an estimated $1,000,000 for FY 10-11 •Amount for Interest & Sinking (I&S) depends on funding of 5 Year Capital Improvement Plan 4/5/2013 Ad Valorem Tax Considerations 4 Solvent Forecast (Includes $0.1562 per $100 for O&M) 4/5/2013 Ad Valorem Tax Considerations 5 Fund Description Estimated FY 09-10 Proposed FY 10-11 Estimated FY 11-12 Estimated FY 12-13 Estimated FY 13-14 Estimated FY 14-15 General Fund Beginning Fund Balance 2,675,310$ 3,400,014$ 3,309,752$ 3,261,840$ 3,149,832$ 3,008,226$ Total Revenues 4,869,244 3,888,427 4,089,065 4,190,913 4,267,100 4,345,351 Total Transfers In 90,000 18,000 18,540 19,096 19,669 20,259 Total Expenditures (4,113,749) (3,960,931) (4,079,759) (4,202,152) (4,328,216) (4,458,063) Total Transfers Out (120,790) (35,758) (75,758) (119,865) (100,158) (81,258) Net Total 3,400,014 3,309,752 3,261,840 3,149,832 3,008,226 2,834,516 Total Restricted Funds 194,540 197,800 197,800 197,800 197,800 197,800 Ending Balance (projected)3,205,474$ 3,111,952$ 3,064,040$ 2,952,032$ 2,810,426$ 2,636,716$ Operating Days 284 287 274 256 237 216 Property Tax Reduction Beginning Fund Balance 1,068,034$ 1,350,324$ 1,637,247$ 1,534,036$ 1,432,837$ 1,377,384$ Total Revenues 917,800 818,300 625,000 625,000 625,000 625,000 Total Transfers Out (635,510) (531,377) (728,211) (726,199) (680,453) (724,575) Ending Balance (projected)1,350,324$ 1,637,247$ 1,534,036$ 1,432,837$ 1,377,384$ 1,277,809$ ASSUMPTIONS: Includes Property Tax based on Fifteen year forecast Sales tax remains flat Revenues Increase 3% FY 11-12 and forward Expenditures Increse 3% FY 11-12 and forward Includes General Major Maintenance and Vehicle & Replacement expenditures No Capital expenditures included Survey Results 4/5/2013 Ad Valorem Tax Considerations 6 Ad Valorem Tax Scenarios Ad Valorem Tax Considerations 7 *The table above are based on September 1st certified values and include the following assumptions: 4/5/2013 TOTAL PROPERTY TAX RATE SCENARIOS Without Gas Wells MAINTENANCE INTEREST TOTAL ISSUED AMOUNT FISCAL YEAR & OPERATIONS & SINKING TAX RATE $6.21M 10/11 0.1562 0.0152 0.1714 $6.21M 11/12 0.1562 0.0589 0.2151 $6.21M 12/13 0.1562 0.0586 0.2148 $8.75M 13/14 0.1562 0.081 0.2372 $8.75M 14/15 0.1562 0.0792 0.2354 • 20% Homestead Exemption (approximately $66M) • Over 65 exemption (approximately $24M) 4/5/2013 Ad Valorem Tax Considerations 8 Neighboring Municipalities Proposed Tax Rates for FY 2010-2011 and Current Collection Rates Municipality Proposed Tax Rates FY 2010-2011 M&O I &S Collection Rate Fort Worth 0.855 0.7109 0.1441 Not released Burleson 0.71 0.5478 0.1622 98% Hurst 0.578 0.4452843 0.1327157 97% Trophy Club 0.535 0.41533 0.11967 100% Bedford 0.491609 0.309075 0.182534 97% Euless 0.47 0.343905 0.126095 Not released Southlake 0.462 0.332 0.13 97% Flower Mound 0.4497 0.3227 0.127 Not released Keller 0.44219 0.31219 0.13 99.10% Roanoake 0.37521 Not released Not released 99% Colleyville 0.3559 0.29758 0.05832 98% Grapevine 0.35 0.13643 0.21357 99% Westlake (FY 10-11) 0.1714 0.1562 0.0152 98% Westlake (FY 11-12 Est.) 0.2151 0.1562 0.0589 98% Median 0.462 0.32735 0.13 98% Mean 0.4893 0.366893275 0.131913642 98% Min 0.2863 0.13643 0.056759 97% Max 0.855 0.7109 0.21357 100% Impact by Home Value 4/5/2013 Ad Valorem Tax Considerations 9 # TAD Value w/ 20% Exemption Tax Amount per $.1714 Tax Rate (FY 10-11) Tax Amount per $.2151 Tax Rate (FY 11-12) 203 $200,000 $160,000 $274 $344 70 $500,000 $400,000 $686 $860 185 $1,000,000 $800,000 $1,371 $1,721 53 $1,500,000 $1,200,000 $2,057 $2,581 11 $3,000,000 $2,400,000 $4,114 $5,162 1 $4,000,000 $3,200,000 $5,485 $6,883 1 $5,000,000 $4,000,000 $6,856 $8,604 1 $6,000,000 $4,800,000 $8,227 $10,325 1 $7,000,000 $5,600,000 $9,598 $12,046  Average home value in Westlake = $1,417,955 CIP Options •Do Nothing – current course •Cash fund by reducing fund balance •Cash fund using fund balance and a portion of the proposed O&M ad valorem levy •Cash fund using annual O&M levies calculated to cover proposed CIP •Issue debt to cover the streets & drainage portion of the CIP •Issue debt in stages to cover the entire CIP •Issue $8M in bonds to cover entire CIP as originally proposed 4/5/2013 Ad Valorem Tax Considerations 10