REVENUE CAPS and APPRAISAL CAPS

Document Sample
REVENUE CAPS and APPRAISAL CAPS Powered By Docstoc
					REVENUE CAPS and
 APPRAISAL CAPS
Effects on County Government
    TRUE OR FALSE?

Currently there is no appraisal cap on
residential homesteads?



          FALSE
The current appraisal cap on
residential homesteads is 10%.
 What is an Appraisal Cap?

• Limitation on the amount property
  values can rise each year.

• Currently, the taxable value of a
  homestead before exemptions cannot
  rise by more than 10% per year
  regardless of market value.

• Recent proposals would change this
  cap to 3%, 5% or a local option.
             The Results
• Appraisal Caps shift the tax burden from
  high growth areas of the county to areas
  where values stay the same or go down.

• Everybody else picks up the tax burden for
  the few people who benefit. If your home
  value is not increasing, your taxes will
  increase to compensate.
   TRUE OR FALSE?


Texas counties currently have a
revenue cap.



          TRUE
     What is a Revenue Cap?
• Limit on the amount of additional tax revenue
  that can be raised.
• Currently counties have an 8% cap – exceeding
  the cap can trigger a rollback election.
  Expensive! (Travis County cost for a county
  wide election is $1million)
• Recent proposals would change this cap to a
  population growth plus inflation factor, 3%, or
  5%.
Total Property Tax Levy 2004
                        Special
                        Districts
                          11%

Counties
 14%




Cities                                               School
15%                                                  Districts
                                                       60%




 Data Source: Texas Comptroller of Public Accounts
                                       Denton County
                                      FY1995 to FY2005

                     Population (County)              66.5%
                                 Inflation         28.1%
            Juvenile Probation/Detention                                                495.4%
                            Debt Service                                     348.2%
               Repairs and Maintenance               73.9%
                                  Utilities               136.6%
County Jail (does not include Jail Health)               126.8%
           Emergency Medical Services                68.6%
               Juvenile Medical Expense                92.4%
             Employee Health Insurance                                   317.2%
                  Indigent Attorney Fees                            234.6%
Sheriff's Dept Medical Care (Jail Health)                      168.4%
                              Fuel Costs                    123.6%
                                              0%     100%      200%   300%    400%    500%   600%
                                 Travis County
                                FY1994 to FY2005

        Population (County)          37.2%

                    Inflation        31.8%

          Fuel Expenditures                    180.8%

Sheriff's Office Medical Care         52.4%

     Indigent Attorney Fees              111.1%

 Employee Health Insurance                                         429.2%

            Juvenile Medical                                           515.3%

Emergency Medical Services                                                            709.7%
                                0%    100%    200%   300%   400%    500%    600%   700%   800%
      Jasper Co. Revenues ‘06

                 Fines, Fees and       Grants and
                   Charges for     Intergovernmental
                    Services        Reimbursements
                     17.5%                2.6%

                                          Investment Earnings
                                                 0.6%


                                           Miscellaneous
                                               1.1%

Property Taxes
    78.1%
       Jasper Co. Expenditures ‘06
                                           Community and
                                             Economic
            Health and Human
                                            Development               Infrastructure and
                Services
                                              1.05%                     Environmental
                  2.01%
                                                                           Services
Public Safety &                                                            21.85%
 Corrections
   31.27%




                                                                           General
                                                                         Administration
Elections                                                                  13.24%
 0.77%
                            Financial                      Judicial
                          Administration                   21.56%
                             8.25%
          $326,488 Impact
3% Revenue Cap =>
          Revenue Loss =>
                     CUTS TO SERVICES
Commissioners Court must make a decision
regarding a cut in services to cover the budget
deficit. $326,488 is equivalent to the following budgets:

   Emergency management
   Sheriff patrol
   Healthcare unit
   Senior citizens services
   Child foster care
   Public library
   Historical commission
   Mandatory vs. Discretionary
       (Required vs. Optional Services)
Which of the following services that county
 government provides are mandatory?
  A.   Employee Health Insurance/Retirement
  B.   Emergency Medical Services
  C.   Sheriff’s Patrol
  D.   None of the Above
                        Jails
       Mandatory                    Discretionary
   Meals                      Quality and Quantity of Meals
   Medical Treatment          Level of Medical Care; Dental
   Staff                       Care
   Facilities                 Rehabilitation Programs
   Access to Legal            Work Programs
   Transportation             Victim/Witness Secure
   Equipment                   Telecommunications
   Commissary
   Training
                  Judicial System
        Mandatory                            Discretionary
   Courts-staff, equipment,            CSCD-level of rehabilitative
    facilities                           programs
   Indigent legal services             Juvenile Probation-level of
   Court Administration                 rehabilitative programs
   Clerks-record keeping
   Constable-service of process
   Sheriff-service of process
   Sheriff-juror & bailiff duties
   CSCD-facilities and
    communication infrastructure
   Juvenile Probation
        Public Health and Safety
       Mandatory                         Discretionary
   Indigent Medical                Level of medical services
   Indigent Burials                Poverty level of citizens
   Mental Health-jail               served
   Hospital (some                  Environmental/sanitation
    circumstances)                   services
   Sheriff-suppress crime and      Emergency Medical
    arrest offenders                 Services
   Homeland Security-various       Level of enforcement
    offices                         Level of preparedness
   Victim Notification             Fire Marshall
            Public Welfare and
           Personnel & Benefits
       Mandatory                   Discretionary
   Roads (current)            Roads (new)
   Sheriff-estray             Parks
   Retirement (existing       Library
    programs)                  Event arenas
   Salary (minimum wage)      Nuisance abatement
   Personnel/payroll          Family services
    recordkeeping              Elder services
   Worker’s Compensation      Community development
                               Retirement (new
                                employees)
                               Salary (position
                                appropriate-market)
                               Medical benefits
               Conclusion
• The purpose of this presentation is to help
  you better understand what the effects of
  caps are and how they could affect you.
• The truth is county government already
  operates under an 10% appraisal cap and
  an 8% rollback rate.