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>> CLERK: MAYOR, WE DO HAVE A QUORUM.
THANK YOU, EVERYONE, FOR ATTENDING OUR SPECIAL CITY COUNCIL SESSION.
WE DO NOT HAVE AN INVOCATION SCHEDULED FOR TODAY, BUT WE'RE GOING TO GO AHEAD AND... GO AHEAD.
LET'S ROLL OUR TRANSLATION VIDEO REAL QUICK.
[1. Ordinance approving a residence homestead exemption in the City for the Tax Year beginning January 1, 2019 in an amount equal .01% of the appraised value of the residence homestead.]
ITEM NUMBER ONE IS ORDINANCE APPROVING A RESIDENCE HOMESTEAD EXEMPTION IN THE CITY FOR THE TAX YEAR BEGINNING JANUARY 1, 2019, IN AN AMOUNT EQUAL TO .01% OF THE APPRAISED VALUE OF THE RESIDENCE HOMESTEAD.
THAT'S THE ONLY ITEM WE HAVE SCHEDULED FOR TODAY, AND WE'LL START WITH OUR BRIEFING FROM BEN GORZELL.
>> GORZELL: GOOD EVENING, MAYOR AND COUNCILMEMBERS.
FIRST, I'VE GOT TO SAY I'VE BEEN DOING THIS FOR A LONG TIME.
I THINK THIS IS THE FIRST TIME THAT I'VE GOT AN A SESSION ITEM AND I'M THE ONLY ITEM ON THE AGENDA, SO THIS IS A FIRST FOR ME.
DID WANT TO INTRODUCE AND RECOGNIZE A COUPLE OF PEOPLE.
ONE IS OUR DEPUTY CHIEF FINANCIAL OFFICER TROY ELLIOTT WHO COULDN'T BE HERE TODAY BUT DOES A TREMENDOUS JOB RUNNING THE FINANCE DEPARTMENT.
THESE GUYS DO A GREAT JOB OF MANAGING THE CITY FROM A FISCAL PERSPECTIVE.
I'VE GOT A COUPLE OF PEOPLE I WANT TO INTRODUCE FOR THE NEW COUNCIL COUNCILMEMBERS.
MARGARET 53 EGG -- VIEGAS, THEY DID A TREMENDOUS AMOUNT OF WORK THIS LAST LEGISLATIVE SESSION ON PROPERTY TAXES OVERALL ON A NUMBER OF DIFFERENT BILLS.
GETTING INTO JUST SOME BACKGROUND ON THE POWERPOINT HERE, DURING THE POLICY GOAL-SETTING SESSION LAST FRIDAY COUNCIL DID ASK FOR AN ITEM TO BE PLACED ON THE AGENDA FOR CONSIDERATION OF A .01% HOMESTEAD EXEMPTION, WHAT THAT EQUATES TO IS A $5,000 EXEMPTION FOR HOMESTEADS.
AGAIN, THE BACKGROUND IS THAT ONCE YOU ADOPT A HOMESTEAD EXEMPTION, IT MUST APPLY TO ALL HOMESTEADS REGARDLESS OF VALUE.
IT CANNOT BE ADOPTED AS A DOLLAR AMOUNT, IT'S GOT TO BE DONE AS A PERCENTAGE OF THE APPRAISED VALUE, AND IT CAN GO UP TO 20% OF THE APPRAISED VALUE.
AND,ING AGAIN, THE MINIMUM IS $5,000.
THE REASON YOU'RE HAVING THIS SPECIAL COUNCIL MEETING TODAY IS THAT IN ORDER FOR THIS TO BECOME EFFECTIVE FOR OUR NEXT FISCAL YEAR, YOU ALL AS A BODY HAVE TO TAKE ACTION BEFORE JULY 1ST SO WE CAN NOTIFY THE STATE COMPTROLLER'S OFFICE AS WELL AS BEXAR APPRAISAL DISTRICT.
CURRENTLY THE CITY PROVIDES TAX RELIEF.
WE DO THAT THROUGH A COUPLE OF DIFFERENT EXEMPTIONS.
THE CITY CURRENTLY OFFERS A $65,000 OVER AGE 65 EXEMPTION AND A $12,500 DISABLED PERSONS TAX EXEMPTION ALONG WITH THE TAX FREEZE.
WHAT THAT MEANS AND I'LL USE THE OVER AGE 65 AS AN
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EXAMPLE.WHEN SOMEONE TURNS AGE 65, A $65,000 EXEMPTION IS APPLIED TO THE TAXABLE VALUE OF THE HOME, THE TAXABLE AMOUNT ACTUALLY GOES DOWN, THE CITY'S PORTION.
AND THAT DOLLAR VALUE IS FROZEN GOING FORWARD.
IT DOESN'T MATTER THE VALUE OF THE HOME, IF IT INCREASES, IT DOESN'T MATTER, THAT PROPERTY TAX BILL WILL STAY THE SAME GOING FORWARD.
IN TOTAL THE CITY WILL FOREGO NEARLY $52 MILLION IN PROPERTY TAX REVENUE FROM THESE EXEMPTIONS AND THAT TAX FREEZE.
JUST A COUPLE OF QUICK STATISTICS, AGAIN, IF YOU LOOK AT WE'VE GOT ABOUT 473,000 TOTAL PARCELS ON THE PROPERTY TAX ROLL.
IT'S ABOUT A 50/50 SPLIT BETWEEN COMMERCIAL PROPERTY AND RESIDENTIAL PROPERTIES IN TERMS OF PARCELS.
IF YOU LOOK AT THOSE THAT HAVE REACHED AGE 65 AND HAVE A TAX FREEZE, IT'S ABOUT 96,000 WITH ARE OVER AGE 65 AND ABOUT 8800 DISABLED PERSONS EXEMPTIONS.
I MENTIONED ON THE OVER AGE 65 AND THE TAX FREEZE, IF YOU LOOK AT THOSE, WE DID SOME ANALYSIS.
IF YOU LOOK AT THOSE THAT HAVE BEEN IN THEIR HOME FOR MORE THAN 30 YEAR, 94% OF THOSE HAVE REACHED AGE 65 AND THEIR PROPERTY TAXES ARE FROZEN.
IN TERMS OF HOW THAT COMPARES IN TERMS OF EXEMPTIONS TO OTHER TAXING ENTITIES HERE LOCALLY, ON THE HOMESTEAD EXEMPTION, THE SCHOOL DISTRICTS OFFER A MANDATORY EXEMPTION.
THE SAN ANTONIO RIVER AUTHORITY ALSO OFFERS AN EXEMPTION.
UNITED -- UNIVERSITY HEALTH SYSTEM, ALAMO COLLEGES, THE COUNTY, THE CITY CURRENTLY DO NOT HAVE HOMESTEAD EXEMPTIONS.
ALL THE ENTITIES OFFER THE OVER AGE 65 EXEMPTION.
ALL OF THEM WITH EXCEPTION OF THE UNITED -- OR UNIVERSITY HEALTH SYSTEM OFFER THE DISABLED EXEMPTION.
AND THEY ALL HAVE THE SENIOR TAX FREEZE, AGAIN, EXCEPTING UNIVERSITY HEALTH SYSTEM AND THE SAN ANTONIO RIVER AUTHORITY.
NOW, I KNOW THE QUESTION CAME UP BEFORE ABOUT MAYBE WHY WE HAVEN'T HAD A HOMESTEAD HERE IN SAN ANTONIO BEFORE.
WHEN YOU LOOK AT OTHER CITIES AND YOU COMPARE US, ONE OF THE THINGS YOU HAVE TO LOOK AT IS THAT THE MAJOR CITIES LIKE HOUSTON, DALLAS, AUSTIN AND EL PASO, THEY DON'T HAVE THE TAX FREEZE.
SO THE EXEMPTION FOR THEM, THEY ADJUST IT PERIODICALLY BECAUSE EVEN WHEN YOU REACH AGE 65 THERE, THERE'S NO TAX FREEZE IN PLACE, THOSE TAX BILLS WILL CONTINUE TO RISE; WHEREAS HERE, THAT'S NOT THE CASE.
THEY'RE FROZEN, SO THAT DOLLAR BILL DOESN'T CHANGE.
THE CITIES THAT DO HAVE A TAX FREEZE HERE.
OF COURSE, US, CORPUS AND FORT WORTH HAS A SENIOR FREEZE AND A HOMESTEAD EXEMPTION.
THEY'RE ONE OF THE FEW CITIES THAT HAS BOTH, BUT FORT WORTH'S M & O RATE, JUST TO GIVE YOU SOME CONTEXT, THEIR TAX RATE IS 63 CENTS, OURS IS 35 CENTS.
IN TERMS OF HOW THE PROPERTY TAX BILL BREAKS DOWN, ABOUT 50% OF IT GOES TO THE PUBLIC SCHOOL DISTRICT, ABOUT 30% GOES TO THE COUNTY COMMUNITY COLLEGES, THE RIVER AUTHORITY AND THE UNIVERSITY HEALTH DISTRICT AND ABOUT 20% OF THAT TAX BILL COMES TO THE CITY.
ON THE FAR LEFT, YOU CAN SEE OUR CURRENT TAX RATE FOR 2019 AT 34.6 CENTS FOR THE GENERAL FUND AND 21 CENTS FOR THE DEBT SERVICE FUND FOR A TOTAL TAX RATE OF 55.827 CENTS IN 2019.
THAT DEBT SERVICE FUND SUPPORTS OUR BOND PROGRAM AND OUR CAPITAL BUDGET.
I'M GOING TO TRANSITION A LITTLE BIT HERE FROM TALKING ABOUT WHERE WE HAVE BEEN HISTORICALLY AND TALK A LITTLE BIT ABOUT WHAT HAS CHANGED DURING THIS LAST LEGISLATIVE SESSION.
ONE OF THE BIG CHANGES, OF COURSE, WAS HB 3, AND 1 OF THE QUESTIONS CAME UP AND WAS WHAT WOULD BE THE IMPACT ON HOMEOWNERS IN TERMS OF SAVINGS WITH THE CHANGES ON SCHOOL FINANCE THAT HAPPEN AS PART OF HB 3? JEFF COYLE AND OUR INTERGOVERNMENTAL RELATIONS TEAMWORK WITH SOME OF THE SCHOOL DISTRICTS TO GET SOME PROJECTIONS FROM THEM.
WE SHOWED THOSE TO YOU LAST WEEK.
HERE ON THIS SLIDE, SO WE TOOK THE THREE BIGGEST SCHOOL DISTRICTS HERE, SAISD, SO FOR A HOME VALUED AT $100,000, THEY WOULD SEE ANNUAL SAVINGS OF ABOUT $100.
SAISD DID HAVE A VOTER-APPROVED BOND PROGRAM THAT DOES HAVE SOME INS OR DEBT SERVICE TAX RATE INCREASES BUILT IN IN THE FUTURE, SO SOME OF THAT SAVINGS WILL BE PICKED UP BY THAT INCREASE IN THE TAX RATE IN THE FUTURE.
NORTHEAST, THE HOME VALUE THERE IS 233,000.
THE ANNUAL SAVINGS IS $167 AND IN NORTH SIDE -- AUDIO] -- ANNUAL SAVINGS.
NOW, WE'VE TALKED A LITTLE BIT ABOUT THE PARADIGM SHIFT THAT HAS HAPPENED FINANCIALLY FOR US, AND I WANTED TO GIVE YOU SOME ADDITIONAL CONTEXT ON THAT.
AS YOU THINK ABOUT FUTURE POLICY AS IT RELATES TO PROPERTY TAX RELIEF, BECAUSE THE CHANGES THAT HAPPENED IN THE LEGISLATURE ARE PRETTY SIGNIFICANT.
IT WILL HAVE A PRETTY SIGNIFICANT IMPACT UPON THE CITY GOING FORWARD.
SB 2, OF COURSE, WAS THE PROPERTY TAX REFORM BILL THAT IMPACTED CITIES AND COUNTIES PRIMARILY.
IT REDUCES OUR ROLLBACK RATE FROM EIGHTH% TO 3.5% AND WE HAVE THE ABILITY TO CARRY FORWARD UNUSED CAPACITY FROM YEARS WHERE WE'RE NOT AT THAT 3.5% CAP.
I'M GOING TO WALK YOU THROUGH A COUPLE OF EXAMPLES OF WHAT THAT LOOKS LIKE, BUT IF YOU
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THINK ABOUT IT JUST FROM THE STANDPOINT IN TERMS OF WHERE WE ARE ABLE TO CAPTURE REVENUE BEFORE, WE WERE AT 8% ON HIGH GROWTH YEARS.THEY'VE NOW CUT THAT BY MORE THAN HALF, SO YOU'RE CAPPED NOW AT 3.5%.
IN TERMS OF WHETHER THE -- IF SB 2 HAD BEEN IN PLACE FOR THE PAST 10 YEARS AND WITH THE CARRYFORWARD IN PLACE, WE DID THAT ANALYSIS, THE LOSS REVENUE CUMULATIVE WOULD HAVE BEEN $81 MILLION.
THE GENERAL FUND TODAY WOULD BE $37 MILLION SMALLER THAN IT IS, AND THE AVERAGE SAVINGS TO THE AVERAGE HOMESTEAD IN SAN ANTONIO WOULD HAVE BEEN ABOUT $12 ANNUAL LY.
THIS IS THE CITY'S TAXABLE VALUATION GOING BACK TO 2010.
AND SO WHEN WE LOOK AT SB 2, SB 2 FOCUSES ON WHAT WE CALL BASE VALUE GROWTH.
IT EXCLUDES NEW IMPROVEMENTS, NEW HOMES, NEW PROPERTIES COMING ONTO THE TAX ROLL AND IT FOCUSES ON EXISTING PROPERTIES.
THE CURRENT LAW SAYS THAT WE CAN GO UP TO BASICALLY 8% GROWTH IN A YEAR.
AND YOU HAVE THE FLEXIBILITY AS A COUNCIL TO DO THAT.
SO IF YOU LOOK AT THIS SLIDE FROM 2010 TO 2014, SB 2 WON'T HAVE AN IMPACT THERE, BECAUSE THERE'S NO BASE VALUE GROWTH.
WE'RE IN A RECESSION, PROPERTY VALUE GROWTH ON THE BASE IS ACTUALLY NEGATIVE OR VERY SMALL.
WHERE IT STARTS TO HAVE AN IMPACT IS WHEN YOU'RE RECOVERING FROM A RECESSIONARY TYPE PERIOD AND YOU START LOOKING AT YEARS 2015 TO 2019, THAT DARKER BLUE BAR IS THE BASE VALUE GROWTH.
ALL OF THAT WOULD BE TRIMMED BACK TO 3.5%.
YOU WOULD STILL SEE THE MARKET VALUE CHANGE ON THE HOME SIDE, BUT IT WOULD FORCE A CHANGE ON THE TAX RATE ON OUR SIDE TO LOWER IT, SO THAT OUR TAX REVENUE DOESN'T GROW BY MORE THAN 3.5% FROM BASE REVENUES EXCLUDING NEW PROPERTIES.
SO WHAT DOES THAT LOOK LIKE WHEN YOU LOOK AT THE TAX RATE? WE TALKED A LITTLE BIT ABOUT THIS LAST WEEK, BUT I WANT TO SHOW IT A LITTLE BIT DIFFERENTLY HERE.
THE BLUE BAR -- THE BLUE LINE IS WHAT WE ADOPTED.
THAT'S THE CITY'S TOTAL ADOPTED TAX RATE.
WHEN YOU APPLY SB 2 BACK TO THE PRIOR DECADE, IT WOULD HAVE -- IT WOULD HAVE REQUIRED A REDUCTION IN THE TAX RATE IN 2009, GOING BACK TO THIS SLIDE.
WELL, 2009 ISN'T ON HERE, BUT WE HAD BASE VALUE GROWTH OF, I THINK, 7 OR 8% IN 2009.
WE WOULD HAVE HAD TO LOWER THE TAX RATE IN 2009.
YOU THEN GET INTO THE RECESSION RECESSIONARY YEARS, OUR PRACTICE WOULD HAVE BEEN -- WE HOLD THE TAX RATE THE SAME.
THE COUNCIL WOULD HAVE HAD FLEXIBILITY TO INCREASE THE TAX RATE.
OUR POLICY WAS MAINTAIN THE TAX RATE, EVEN THOUGH WE WERE TAKING IN NEGATIVE TAX GROWTH FROM PRIOR YEARS, TAKING IN LESS PROPERTY TAX REVENUE, WE HELD THAT WITH THE UNDERSTANDING THAT, YOU KNOW, ON THE OTHER SIDE, YOU'RE GOING TO BE ABLE TO RECOVER AND CAPTURE SOME OF THAT TAX REVENUE BACK.
SO YOU CAN SEE THE TAX RATES STAYING PLAT FROM 2010 ALL THE WAY TO 2015.
WE HAD GROWTH ABOVE THE 8% ROLLBACK IN 2016, SO THERE'S A REDUCTION IN THE TAX RATE THERE THAT WAS ADOPTED. AND THEN WE'VE BEEN FLAT EVER SINCE.
IF SB 2 HAD BEEN IN PLACE SINCE 2016, THE TAX RATE WOULD HAVE CONTINUED TO DROP, AND THAT'S BECAUSE YOU CAN SEE THE BASE VALUE GROWTH THERE OF 9.9%, 7.9, 6.6, AND 4.4.
IT'S ALL OVER THE 3.5% CAP, SO IT FORCES A REDUCTION IN THE PROPERTY TAX RATE, SO THAT OUR BASE REVENUES DON'T GROW BY MORE THAN 3.5%.
SO YOU CAN SEE THE DRAMATIC CHANGE IN OUR TAX RATE FROM WHERE WE HAVE BEEN HISTORICALLY, AND REALLY WANTED TO SHARE THAT WITH YOU FROM THE PERSPECTIVE OF, AGAIN, AS YOU THINK ABOUT PROPERTY TAX RELIEF POLICY GOING FORWARD, ONE OF THE THINGS YOU HAVE TO CONSIDER IS DON'T THINK ABOUT IT FROM THE PERSPECTIVE OF WHERE WE HAVE BEEN HISTORICALLY, BECAUSE EVEN IF WE GET THAT KIND OF GROWTH, THE TAX RATE'S GOING TO BE DIFFERENT.
AND IT WILL BE -- YOU KNOW, THESE CHANGES THAT I'M SHOWING ON THIS SLIDE, THAT WOULDN'T -- THAT'S NOT AN OPTION UNLESS YOU'RE WILLING TO TAKE THAT TO A VOTE.
SO THE TAX RATE WOULD DECLINE, AND EVEN IN A YEAR LIKE THIS YEAR WHERE, YOU KNOW, WE ARE DOWN $11 MILLION ON CPS REVENUES, I EXPECT THAT TO PROBABLY GET WORSE IN THE MONTH OF JUNE, OR WILL GET WORSE IN THE MONTH OF JUNE.
THE WEATHER'S NOT BEEN VERY HOT.
IT'S BEEN PRETTY MILD AGAIN TODAY EVEN.
SO I SUSPECT THAT LOSS WOULD GET BIGGER.
WE'RE PROJECTING FROM WHAT WE'VE SEEN FROM THE APPRAISAL DISTRICT, PROBABLY BASE VALUE DPROAT SOMEWHERE BETWEEN -- GROWTH SOMEWHERE BETWEEN 4 TO 4.5%.
IF SB 2 WAS IN EFFECT RIGHT NOW, WE WOULD BE REDUCING THE TAX RATE.
TRYING TO GIVE YOU A PICTURE OF WHAT OUR TAX RATE LOOKS GOING FORWARD AND HOW IT'S BEEN HISTORICALLY AND HOW WE'RE GOING TO HAVE TO MANAGE THAT IN THE CONTEXT OF PRIORITIES AND EXPECTATIONS AS IT RELATES TO THE BUDGET.
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AND THEN WHEN YOU GET TO THE HOMESTEAD EXEMPTION ITSELF, REMEMBER, IT'S GOT TO BE BASED ON A PERCENTAGE.TODAY, WHAT YOU HAVE IS AN ITEM THAT WOULD DO THE .01%, WHICH WOULD BE A $5,000 EXEMPTION.
AS YOU GO UP ON THE EXEMPTION -- AND WE TRIED TO GET AN OPTION WHERE WE COULD DO FIXED DOLLAR AMOUNTS PASSED AT THE LEGISLATURE, THAT DID NOT GET ANY TRACTION, SO WE'RE LEFT WITH THE PERCENTAGES.
SO WHEN YOU THINK ABOUT PERCENTAGES, AS IT MOVES UP ON THE SCALE, TO GET -- FOR SOMEBODY THAT'S GOT $100,000 HOME, TO GET SOMETHING GREATER THAN A $5,000 EXEMPTION, WE'VE GOT TO BE OFFERING MORE THAN A 5% HOMESTEAD; VERSUS IF I'M AT A $300,000 HOME AND I GET A 5% EXEMPTION, I'M AT $15,000 ON THE EXEMPTION, BECAUSE IT'S A PERCENTAGE BASED ALLOCATION.
SO THAT'S ANOTHER THING TO CONSIDER AS YOU LOOK AT POLICY GOING FORWARD.
BUT REALLY THE MAIN POINT OF THIS SLIDE WAS JUST TO SHOW YOU HOW DRAMATICALLY SB 2 WILL CHANGE OUR FINANCIAL PICTURE GOING FORWARD, AND IT IS A FORM OF PROPERTY TAX RELIEF.
THE BASE VALUES ARE GOING TO BE CAPPED AT 3.5%, SO WE'LL BE TRACKING THIS FOR YOU ON AN ANNUAL BASIS SO WE CAN SHOW YOU, YOU KNOW, WHERE WE WOULD HAVE BEEN UNDER THE PREVIOUS LAW OR CURRENT LAW VERSUS WHERE WE WILL BE UNDER SB 2, SO YOU CAN TAKE THAT INTO CONSIDERATION WHEN YOU THINK ABOUT PROPERTY TAX RELIEF.
THE LAST SLIDE SUMMARIZES AGAIN THE ITEM YOU'VE GOT BEFORE YOU TODAY IS A .01% GENERAL HOMESTEAD EXEMPTION, THAT WILL RESULT IN A $5,000 EXEMPTION FOR HOMESTEADS.
IT'S EFFECTIVE JANUARY 1, 2019, WHICH WOULD BE OUR FISCAL YEAR 2020.
WE ESTIMATE THE HOMEOWNERS SAVING TO BE ABOUT $28 ANNUALLY.
WE HAVE PROJECTED THE GENERAL FUND REVENUE LOSS TO BE ABOUT $3.6 MILLION AND THEN THE DEBT SERVICE REVENUE LOSS IS ABOUT $2.2 MILLION.
WHAT THAT MEANS IN TERMS OF DEBT SERVICE CAPACITY, BECAUSE, REMEMBER, WE MANAGE TO THE 21 CENT DEBT SERVICE TAX RATE, WITH THAT $2.2 MILLION LOSS GOING FORWARD, IT'S ABOUT $333 MILLION IN DEBT SERVICE CAPACITY.
SO WITH THAT, MAYOR, THAT CONCLUDES MY PRESENTATION AND I'LL BE HAPPY TO ANSWER ANY QUESTIONS.
WE DO HAVE ONE CITIZEN SIGNED UP TO SPEAK ON THIS ITEM.
SO I KNOW A LOT OF PEOPLE HAVE HEARD ME SPEAK ON ENVIRONMENTAL DEFENSE FUND.
I'M NOT HERE TO SPEAK ON BEHALF OF THEM TODAY.
I DO SERVE AS THE NEW CHAIR OF THE POLITICAL COMMITTEE FOR MOVE TEXAS.
AND I HAVE HAD CONVERSATIONS WITH THEM TODAY.
I KNOW THERE'S A LOT OF CONCERN IN THE COMMUNITY RIGHT NOW.
MOVE TEXAS, THEY -- THEY REPRESENT A LOT OF YOUNG PEOPLE, AND A LOT OF YOUNG PEOPLE TEND TO BE VOTERS.
I MEAN, A LOT OF YOUNG PEOPLE TEND TO BE RENTERS.
AND SO THERE'S CONCERN ABOUT HOW THIS AFFECTS RENTERS, RIGHT? BECAUSE YOU -- WHEN YOU HAVE A HOMESTEAD EXEMPTION, IT'S NOT GOING TO APPLY TO THE RENTERS, AND -- BUT THEY ARE GOING TO LOSE SERVICES, RIGHT? WE'RE GOING TO LOSE $6 MILLION OF CITY SERVICES SO IT WILL AFFECT THEM.
AND SO THERE'S SOME CONCERN RIGHT THERE.
THERE'S ALSO CONCERN THAT WE ARE THE MOST ECONOMICALLY SEGREGATED CITY IN THE UNITED STATES AND SO WHAT IS THIS GOING TO DO? WILL THIS EXACERBATE -- IN AUDIO] -- AND NOT HELPING TO HELP THE PEOPLE WHO ARE RENTING AND POSSIBLY LIVING PAY CLEK TO PAYCHECK.
THERE'S SOME CONCERN ABOUT THAT.
I KNOW THIS IS HAPPENING VERY QUICKLY.
I ALSO UNDERSTAND THAT THE COMMUNITY WANTS TAX RELIEF RIGHT NOW.
AND SO I UNDERSTAND YOU HAVE TO DEAL WITH THAT AS WELL.
IT'S JUST A CHALLENGE THAT THIS IS HAPPENING SO QUICKLY.
I DO HAVE SOME IDEAS ON HOW TO HELP SENIOR CITIZENS ON THIS ISSUE.
I KNOW THAT, YOU KNOW, IF YOU'RE A SENIOR CITIZEN AND YOU GET A TAX FREEZE, THAT'S GREAT.
BUT THERE ARE A LOT OF LOW INCOME SENIOR CITIZENS WHO ARE NOT AWARE OF WHAT CAN -- THAT THEY CAN CHALLENGE THEIR PROPERTY TAX VALUATION.
AND SO IF WE COULD COME UP WITH SOME WAY TO APPROACH PEOPLE WHO ARE 64 YEARS OLD, THEY'RE ABOUT TO TURN 65, AND WHATEVER THEIR TAX VALUE IS RIGHT THEN, THAT'S GOING TO BE FROZEN.
IF WE COULD GO AND HELP THEM TO CHALLENGE THAT AND GET A FAIR TAX VALUATION, THAT COULD BE REALLY HELPFUL.
THAT'S WHAT THEY'RE GOING TO BE LOCKED IN AT.
FOR THE REST OF THEIR LIVES, THEY COULD LIVE ANOTHER 20, 30 YEARS.
THEY COULD BE ON A FIXED INCOME.
SO IF WE COULD HELP THEM, MAYBE THEY LIVE IN AN AREA THAT'S BEING GENTRIFIED AND THEIR PROPERTY TAX -- THEIR PROPERTY VALUE HAS BEEN, YOU KNOW, SKYROCKETING.
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IF WE COULD HELP CUT THAT BACK A LITTLE BIT, THAT'S SOMETHING THAT COULD HELP THEM FOR THE REST OF THEIR LIVES, AND SO I'D BE HAPPY TO TALK TO ANY OF YOU ALL ABOUT DOING THAT, FINDING SOME TAX RELIEF FOR THAT COMMUNITY.>> MAYOR NIRENBERG: THANK YOU, MR. BRAVO.
ALSO FOR THE RECORD, WE'LL ENTER IN COMMENTS BY BRETT FINLEY, SENT IN GOVERNMENT AFFAIRS OF SAN ANTONIO BOARD OF REALTORS IN SUPPORT OF OUR ACTION TODAY.
THAT'S EVERYBODY WHO SIGNED UP TO SPEAK, SO I'LL GO AHEAD AND GET STARTED.
BEN, THANK YOU VERY MUCH FOR THE PRESENTATION.
I DON'T REALLY HAVE ANY QUESTIONS FOR YOU.
I DID WANT TO ACKNOWLEDGE MR. BRAVO, YOUR COMMENTS, WHICH ARE TAKEN TO HEART.
I THINK THAT WE DO HAVE TO BE COGNIZANT ABOUT HOW EQUITABLE OUR TAX RELIEF IS, WHICH IS WHY I WILL SUPPORT THE MOTION -- OR THE ITEM TODAY.
PLEASE KNOW THIS IS JUST A START.
WE HAVE ENGAGED WITH THE APPRAISAL DISTRICT REVIEW PROCESS INITIATED BY COUNCILMAN PELAEZ.
WE DO KNOW THAT WE HAVE WORK TO DO IN THE PUBLIC PARTICIPATION PROCESS IDENTIFIED BY COUNCILWOMAN SANDOVAL WITH REGARD TO GETTING -- MAKING SURE THAT PEOPLE ARE TAKING ADVANTAGE OF THE EXEMPTIONS THAT THEY CAN BE ENROLLED IN AND MAKING SURE WE'RE PROACTIVE ABOUT THAT.
AND, OF COURSE, WE'RE GOING TO CONTINUE TO WORK IN AUSTIN AT THE LEGISLATURE.
WE DIDN'T GO AS FAR AS WE COULD HAVE WITH REGARD TO PROVIDING ADDITIONAL TOOLS, TARGETED TOOLS FOR -- FOR FOLKS TO GET PROPERTY TAX RELIEF AND TAX RELIEF IN GENERAL, BUT WE DO KNOW EFFORTS BY OUR FORMER COLLEAGUE, FOR INSTANCE, COUNCILMAN BERNAL, AT LEAST GOT A HEARING AND WILL CONTINUE FORWARD IN YEARS TO COME.
I WANT TO COLLEAGUES, OUR BUDGET PROCESS GOT OFF TO A GREAT START LAST WEEK WITH THE GOAL-SETTING SESSION, AND WE CLEARLY HAVE A VIBRANT AND ENGAGED COUNCIL.
WE COVERED A LOT OF GROUND AND DISCUSSED MANY IDEAS, AMONG THEM THE MOST SIGNIFICANT TOPICS WAS THE HOMESTEAD EXEMPTION.
I SPENT A LOT OF TIME OVER THE WEEKEND STUDYING THAT PROPOSAL AND REFLECTING ON THE IMPLICATIONS OF IT.
AND SO I WANT TO MAKE CLEAR TODAY THAT I SUPPORT ENACTING A $5,000 HOMESTEAD SEM -- EXEMPTION WITHOUT A TAX INCREASE.
HOMEOWNERS HAVE BEEN ASKING FOR PROPERTY TAX RELIEF AND I INTEND TO PROVIDE IT FOR THEM WITH NO STRINGS ATTACHED.
I WANT TO EMPHASIZE THAT THIS REQUIRES A COLLABORATIVE EFFORT BY THE CITY COUNCIL, AND I'LL BE WORKING CLOSELY WITH MY COLLEAGUES ON THIS ISSUE, AND I WANT TO THANK THEM AGAIN FOR THE GREAT DISCUSSION THAT WE HAD THAT SHOWED THE COLLEGIALITY ON THIS COUNCIL TO OVERCOME SOME DIFFERENCES AND ACHIEVE A CONSENSUS.
SO THANK YOU VERY MUCH TO MY COLLEAGUES ON THAT.
REGARDLESS OF WHEN AN EXEMPTION IS ENACTED WE WILL HEAR CONCERN THAT THE TIMING IS WRONG AND WORRIES THAT WE CAN'T AFFORD IT NOW.
LOOMING IMPACT OF REVENUE CAPS IDENTIFIED BY BEN AND OTHERS, APPROVED BY STATE LAWMAKERS IS THE LATEST COMPLICATION, BUT I BELIEVE THAT WE SHOULD MOVE FORWARD WITH THE HOMESTEAD EXEMPTION THIS YEAR, BECAUSE IT COULD BE MORE DIFFICULT TO ENACT IN THE FUTURE.
LET'S MAKE THE HOMESTEAD EXEMPTION PART OF THE CALCULUS NOW.
AND TO BE CLEAR, WE'RE TALKING ABOUT TRIMMING $6 MILLION FROM A $2.8 BILLION BUDGET.
SOME MIGHT CALL IT BELT TIGHTENING BUT IT'S MORE LIKE TIGHTENING OUR SHOELACES.
I'LL IDENTIFY SPECIFIC BUDGET REDUCTIONS TO PAY FOR THIS TAX RELIEF WITHOUT CUTTING PUBLIC SAFETY OR OTHER ESSENTIAL SERVICES AND LOOK FORWARD TO HEARING MY COLLEAGUE'S IDEAS FOR FINDING EFFICIENCIES AS WELL.
THESE MODEST BUDGET REDUCTIONS WILL NOT DERAIL OUR AGENDA PURSUING EQUITY, PROVIDING BASIC SERVICES AND PREPARING OUR CITY FOR ONGOING DRAMATIC GROWTH.
WE'LL CONTINUE TO PROVIDE A VAST ARRAY OF SERVICES TO OUR RESIDENTS OF WHICH THEY EXPECT.
THIS IS A CLEAR STEP FORWARD FOR HOMEOWNERS, ADDING TO THE CITY'S $65,000 SENIOR CITIZEN TAX EXEMPTION AND THE SENIOR CITIZEN VALUATION FREEZE.
THE HOMESTEAD EXEMPTION IS A PROGRESSIVE POLICY THAT HAS THE MOST IMPACT FOR HOMEOWNERS WITH MODEST BUDGETS.
I REMAIN COMMITTED TO PROTECTING SMALL BUSINESS OWNERS AND RENTERS AS WELL AS HOMEOWNERS AND THAT WAS REFLECTED IN THE COMMENTS BY MR. BRAVO AS WELL.
I'LL CLOSE BY NOTING WE'RE AWAITING THE RESULTS OF THE BEXAR COUNTY APPRAISAL DISTRICT STUDY THAT THEY CONCLUDED EARLIER THIS YEAR AND FINDING METHODS THAT WILL HELP LOWER TAX BILLS.
THANK YOU VERY MUCH, AND I DO WANT TO SAY THANK YOU TO MY COLLEAGUES FOR THE GREAT DISCUSSION AND THANK YOU TO MY COLLEAGUES COUNCILMAN PERRY AND COUNCILMAN COURAGE FOR THE ORIGINATING CCR.
AND, YOU KNOW, I'M REALLY COUNTING ON THIS VOTE AND I'M REALLY COUNTING ON MY COLLEAGUES AND THE MAYOR TO SUPPORT THIS.
OVER THE LAST TWO ELECTION CYCLES, I SAID IT LAST WEEK, THE TOP THREE THAT WERE CONTINUING TO RING OUT WERE PROPERTY TAXES, POLICE AND FIRE PROTECTION AND INFRASTRUCTURE.
THOSE WERE THE THREE MAIN ITEMS. AND WHAT WAS EMPHASIZED TIME AND TIME AGAIN WAS PROPERTY
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TAXES; THAT PEOPLE NEED SOME PROPERTY TAX RELIEF.AND I HAVE WANTED TO DO THIS FOR THE LAST COUPLE OF YEARS, AND THIS IS SOMETHING THAT A LOT OF -- I KNOW THERE'S A LOT OF HAND WRINGING AND WORRY THAT WE'RE GOING TO WRECK SOMETHING OR BREAK SOMETHING.
I DON'T THINK THAT WILL HAPPEN.
I THINK THE RESOURCES ARE AVAILABLE FOR THIS AND IT'S SOMETHING THAT PEOPLE HAVE BEEN ASKING FOR.
THIS, TOGETHER WITH THE HOUSE BILL, I THINK IT WAS 3, HOUSE BILL 3 ABOUT THE SCHOOL FINANCE, IF YOU COUPLE THESE TOGETHER, THAT IS BECOMING REALLY MEANINGFUL TAX RELIEF FOR OUR HOMEOWNERS.
YOU KNOW, THIS IS -- THIS IS A SMALL STEP AND I DON'T CONSIDER THIS TO WITH THE LAST -- BE THE LAST STEP FOR SAN ANTONIO IN THE PROGRESSION OF OFFERING A HOMESTEAD EXEMPTION.
AND I LOOK FOR MORE INCREASES TO OUR EXEMPTION IN THE FUTURE AS WE CAN AFFORD IT.
AND, YES, WE HAVE TO TAKE A LOOK AT IT, BUT IF YOU LOOK OVER THE LAST FIVE YEARS OF OUR GENERAL FUND AND HOW MUCH IT'S GROWN OVER YEAR AFTER YEAR AFTER YEAR, YES, THIS CITY CAN AFFORD IT.
BASED ON THE -- JUST THE INCREASES EVERY YEAR, AND THAT'S -- YOU KNOW, I'VE GOT A SLIDE TO SHOW THAT, BUT I DON'T THINK WE NEED TO SHOW THAT TODAY.
I THINK IT IS IMPORTANT FOR OUR FOLKS HERE IN SAN ANTONIO TO KNOW THAT THE CITY COUNCIL IS LISTENING TO THEM AND WE ARE OFFERING THEM TAX RELIEF.
IT WAS TALKED ABOUT THE OVER 65 FREEZE AND THE DISABILITY EXEMPTIONS.
THIS WILL BE IN ADDITION TO THAT, SO THOSE THAT HAVE FROZEN TAXES, THEY WILL BE INCLUDED IN THIS HOMESTEAD EXEMPTION AS WELL.
AND THEY CAN APPLY THIS TO THEIR PROPERTY VALUES AND REDUCING THEIR TAXES, SO THEY CAN LOOK FORWARD TO THIS EXEMPTION ALSO.
I LOOK AT THIS AS A PART OF OUR AFFORDABLE HOUSING HERE FOR SAN ANTONIO, ANYTHING TO REDUCE THAT OVERALL BILL FOR OUR HOMEOWNERS SHOULD BE LOOKED AT AS PART OF PROVIDING AFFORDABLE HOUSING.
AND THIS IS JUST ONE OF THOSE PIECES THAT I THINK IS CRITICAL FOR OUR HOMEOWNERS TO KNOW THAT, YES, WE ARE LOOKING OUT FOR THEM AND WE ARE PROVIDING THEM WITH TAX RELIEF.
I THINK WE'RE SHOWING THE WILL TO DO THIS.
THIS IS A LONG TIME COMING FOR SAN ANTONIO.
I'M LOOKING FORWARD TO ADDITIONAL INCREASES IN THIS EXEMPTION OVER TIME FOR OUR HOMEOWNERS HERE IN SAN ANTONIO.
I WANT TO THANK MY COLLEAGUES HERE AND THE MAYOR, THOSE THAT ARE SUPPORTING THIS, AND I LOOK FORWARD TO WORKING OUT THE DETAILS AND MOVING -- MOVING THIS ITEM FORWARD IN OUR BUDGET PROCESS.
WITH THAT, SIR, I MOVE TO APPROVE ITEM NUMBER ONE OR -- I WAS GOING TO READ THIS -- I'M GOING TO READ IT.
ORDINANCE APPROVING A RESIDENCE HOMESTEAD EXEMPTION IN THE CITY FOR THE TAX YEAR BEGINNING JANUARY 1, 2019, IN AN AMOUNT EQUAL TO .01% OF THE APPRAISED VALUE OF THE RESIDENCE HOMESTEAD .
>> MAYOR NIRENBERG: THANK YOU, COUNCILMAN PERRY.
>> COURAGE: THANK YOU, COUNCILMAN.
>> COURAGE: BUT I DO THANK COUNCILMAN PERRY REALLY FOR STEPPING UP IN HIS FIRST TERM, SAYING THIS IS SOMETHING WE NEEDED.
A COUPLE OF YEARS AGO, BUT WE WEREN'T SURE IF WE COULD FIND A WAY TO GET THERE.
THERE WERE MANY OTHER THINGS THAT WE HAD TO CONSIDER, AND I THINK IT -- IT'S NOW A TIME WHEN THERE IS PRETTY MUCH A STRONG SENTIMENT ON THE COUNCIL THAT SOMETHING NEEDS TO BE DONE BY -- ABOUT THIS.
I HAVE SOMETHING I'D LIKE TO PUT UP ON THE BOARD, AND IT'S JUST -- HOPEFULLY THEY CAN SHOW IT UP HERE.
WE DID A SURVEY IN DISTRICT 9, AND WE SAY, WHAT IS DISTRICT 9 SAYING ABOUT THE HOMESTEAD TAX EXEMPTION? AND IT LOOKS LIKE IT MAY NOT BE UP THERE, BUT LET ME TELL YOU, WE EXAMINED SIX DIFFERENT ZIP CODES.
WE TALKED TO MANY, MANY PEOPLE ABOUT THIS.
AND WE HAD 85% OF THE RESIDENTS WHO WERE IN SUPPORT OF THIS TAX EXEMPTION.
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PEOPLE WERE SAYING THINGS LIKE, IT WILL PUT MORE MONEY IN MY POCKET.THANK YOU FOR YOUR SUPPORT IN GIVING CITIZENS BETTER PROPERTY RELIEF.
TAXES IN GENERAL ARE TOO HIGH.
WE ARE BEING TAXED OUT OF OUR HOPES.
ANYTHING TO HELP WITH TAXES IN THIS DISTRICT, DO IT QUICKLY.
AND THE RISE AND WAGES DO NOT OFTEN COVER OUR EVER ESCALATING PROPERTY TAXES.
THESE ARE THE SENTIMENTS OF PEOPLE IN MY DISTRICT, AND I THINK THEY REFLECT THE SENTIMENTS OF PEOPLE THROUGHOUT THE COUNTY AND THROUGHOUT SAN ANTONIO.
AND SO I'M REALLY PLEASED THAT THIS COUNCIL IS MOVING TO ADOPT THIS ORDINANCE TO CREATE THIS HOMESTEAD EXEMPTION, AND I THINK IT'S GOING TO MAKE A SIGNIFICANT DIFFERENCE ON TOP OF, AS WE'VE HEARD, THE STATE LEGISLATURE MOVING TO HELP RELIEVE SOME OF THE PROPERTY TAXES IN OUR SCHOOL DISTRICTS.
SO I WAS PROUD TO SECOND THIS.
I HOPE THAT WE HAVE CONSENSUS ON THIS AND WE CAN MOVE FORWARD.
>> MAYOR NIRENBERG: THANK YOU, COUNCILMAN COURAGE.
>> GONZALES: THANK YOU, MAYOR, AND TO MY COLLEAGUES, COUNCILMAN PERRY, WE'VE HAD LOTS OF CONVERSATIONS ABOUT THIS ISSUE, AND I KNOW THAT IT WAS IMPORTANT FOR HIM AND MANY OF HIS COMMUNITY MEMBERS.
AND IT'S IMPORTANT FOR MINE, TOO.
BUT WHAT I HEAR MORE FROM MY NEIGHBORHOODS IS THAT WE JUST NEED MORE SERVICES.
AND WE HAVE MORE OF THE NONPROFITS, WE HAVE MORE BOYS AND GIRLS CLUBS, WE HAVE MORE SENIOR CENTERS, WE HAVE MORE LIBRARIES, WE HAVE MORE PARKS, WE JUST OPENED ELMENDORF PARK POOL AND IT'S FABULOUS.
I INVITE EVERYBODY TO COME AND ATTEND.
I'VE BEEN THERE NOW MULTIPLE TIMES SINCE IT OPENED LAST WEEKEND BUT THERE'S STILL THINGS WE NEED.
WE NEED MORE SHADE, WE NEED MORE SEATING WE NEED MORE BARBECUE PITS, WE NEED MORE SHADE.
WE NEED A LOT MORE THINGS IN OUR COMMUNITY, AND I BELIEVE THAT MOST OF MY CONSTITUENTS ARE WILLING TO SACRIFICE THEIR $28 A YEAR IN ORDER TO GET THESE REALLY GREAT SERVICES THAT THE CITY IS FINALLY PROVIDING AND THE PEOPLE IN MY NEIGHBORHOODS ARE FINALLY SEEING.
AN EQUITY BUDGET, EVEN FOR JUST TWO YEARS HAS BEEN REALLY TRANSFORMATIVE FOR A COMMUNITY LIKE MINE.
AND SO WHILE I WILL SUPPORT THE AMENDMENT BEFORE US TODAY, BECAUSE IT IS ONE OF THE THINGS THAT PEOPLE TALK ABOUT THE MOST, AND I HAVE TO SAY, WHEN I GO OUT IN MY COMMUNITY AND THEY SAY, WELL, WHAT HAVE YOU DONE? AND I SAY, I CAN GO ON AND ON ABOUT ALL THE THINGS WE'VE DONE, WE'VE DONE OUR BUDGET, OUR PARKS, ALL THESE THINGS, BUT THEY'LL SAY, WHAT DID YOU DO FOR ME? AND SO THEY DON'T CARE REALLY ABOUT ALL OF THE OTHER THINGS THAT WE DO HERE ON A DAILY BASIS.
THEY DON'T CARE ABOUT THE CITY STAFF, THEY DON'T CARE ABOUT OUR STAFF, WHAT THEY WANT TO KNOW IS WHAT DID YOU DO FOR ME? AND SO AT LEAST WE CAN SAY WE GAVE EACH PERSON A HOMESTEAD EXEMPTION.
AND SO HOPEFULLY THAT SATISFIES SOME OF THOSE QUESTIONS.
AND IN DISTRICT 5, WE HAVE A HIGHER PERCENTAGE OF HOME OWNERSHIP THAN OTHER PARTS OF THE CITY, 57%, A LITTLE BIT HIGHER THAN THE CITY AVERAGE WHICH IS AROUND 50%, BUT MOST OF OUR HOMES ARE OLDER AND QUALIFY UNDER THE EITHER 65 EXEMPTION OR THE $65,000 EXEMPTION AND FREEZES, AND I DID -- YOU KNOW, WHEN I TALK TO MY CONSTITUENTS TO TELL THEM -- REMIND THEM TO MAKE SURE THAT THEY ARE CURRENTLY TAKING ADVANTAGE OF ALL OF THE EXEMPTIONS THAT ARE AVAILABLE, AND RECENTLY I WAS TALKING TO ONE OF MY CONSTITUENTS AND ENCOURAGED HER TO ENROLL IN THE PROGRAM AND, YOU KNOW, TO MAKE SURE THAT SHAHE HAD HER TAX EXEMPTION.
AND I SAID, YOU MUST BE ELIGIBLE FOR YOUR TAX EXEMPTION, YOU MUST BE OVER 65.
WELL, YOU'LL BE ELIGIBLE NOW FOR THIS ONE, SINCE IT'S AVAILABLE TO EVERY HOMEOWNER.
BUT I DO ALSO THINK IT'S IMPORTANT TO RECOGNIZE THAT IF PEOPLE EVEN WITH THE SEM SHUNS, EVEN WITH THE HOMESTEAD EXEMPTION, IF THEY'RE STILL NOT ABLE TO PAY, THEY CAN WORK THINGS OUT AND THEY DON'T HAVE TO PAY.
THEY DON'T HAVE TO PAY TAXES AT ALL, IF THEY WORK THROUGH THE COUNTY TO GET THEIR EXEMPTIONS, NOBODY BELIEVES THAT PEOPLE SHOULD BE EVICTED OR NOT TAKE THEIR MEDICATION IF THEY ARE IN A CERTAIN CIRCUMSTANCE WHERE THEY CANNOT AFFORD TO DO SO, THEY CAN HAVE THEIR -- THAT EXEMPTION REMOVED -- RATHER, THEY CAN APPLY FOR THAT EXEMPTION.
[00:35:02]
HEIRS WILL HAVE TO PAY.BUT IF THEY CANNOT AND THEY CAN PROVE IT, THEN THEY DON'T HAVE TO PAY AT ALL.
SO PLEASE -- THE SECOND ROUND IS TO MAKE SURE THAT EVERYBODY KNOWS THAT THIS IS AVAILABLE TO THEM, AND I'LL SUPPORT TODAY'S MOTION.
>> MAYOR NIRENBERG: THANK YOU, COUNCILWOMAN GONZALES.
BEN, I HAVE SOME QUESTIONS FOR YOU.
YOU MENTIONED AUSTIN HAD A HOMESTEAD EXEMPTION.
CAN YOU TELL ME WHAT THEIR GENERAL HOMESTEAD EXEMPTION IS.
>> VIAGRAN: WE'RE LOOKING AT A .01%.
>> GORZELL: AUSTIN OFFERS A 10% HOMESTEAD EXEMPTION.
AND SO YOU MENTIONED THAT $7 MILLION LESS BECAUSE OF TELECOM, CORRECT?
>> VIAGRAN: $7 MILLION LESS IN OUR BUDGET BECAUSE OF THE TELECOM WE'RE NOT GETTING THAT RIGHT OF WAY FEES ANYMORE.
>> VIAGRAN: AND THEN YOU MENTIONED OUR CPS REVENUE IS DOWN.
>> GORZELL: DOWN 11 MILLION THROUGH MAY AND WE EXPECT THAT TO BE FURTHER DOWN IN THE MONTH OF JUNE.
>> VIAGRAN: SO -- AND THEN AN AD DITIONAL FOR HERE, WE'RE GOING 3.6 MILLION.
>> VIAGRAN: AND HOW IS OUR SALES TAX DOING RIGHT NOW?
>> VIAGRAN: SO WHAT I'M TRYING TO UNDERSTAND RIGHT NOW AND SOME OF THE QUESTIONS I WANTED ANSWERS TO IS OUR BUDGET FOR FY 2019 WAS -- WELL, TOTAL 2.8 BILLION, CORRECT?
SO GIVE ME GENERAL FUND AGAIN.
>> VIAGRAN: BUT WE'RE OBVIOUSLY NOT GOING TO START OFF THAT WAY OBVIOUSLY ANYMORE BECAUSE OF THIS 7 MILLION LOSS, 11 MILLION DOWN AND THEN AN ADDITIONAL 3.6 MILLION.
SO I'M JUST TRYING TO WRAP MY HEAD AROUND THE NUMBERS OF HOW MUCH WE ARE GOING TO ACTUALLY SEE AND WHAT YOU-ALL ARE PROJECTING IT TO BE, OUR BUDGET THAT WE'RE GOING TO WORK INTO -- WORK IN THIS -- IF THIS LOCAL -- IF THIS HOMESTEAD EXEMPTION IS TAKEN INTO ACCOUNT.
>> GORZELL: SO YOU'LL RECALL, WHEN WE DID THE FORECAST PRESENTATIONS PRIOR TO CONSIDERING POLICY ISSUES, WE WERE PROJECTING AN ENDING BALANCE OF 2020 OF ABOUT $3.1 MILLION.
AND THEN WE WERE ACTUALLY IN 2021, NEGATIVE $9.3 MILLION.
AND THAT'S WITHOUT TAKING INTO CONSIDERATION POLICY ISSUES RELATED TO AFFORDABLE HOUSING, POLICE, FIRE OR THIS EXEMPTION.
AND SO I'M UNDERSTANDING EVERYTHING HERE AND I'M TRYING TO LOOK AT THE NUMBERS AND KNOW THAT YOU'RE GOING TO HAVE AN EVEN BIGGER TASK AHEAD OF YOU THIS JULY AS YOU MOVE FORWARD AFTER THIS VOTE.
YOU'RE GOING TO HAVE AN EVEN BIGGER TASK.
CONGRATULATIONS, ERIK AND TEAM.
BECAUSE THIS IS GOING TO BE SOMETHING THAT YOU HAVEN'T SEEN IN A VERY LONG TIME, IF EVER, IN OVER A DECADE.
SO ONE OF MY THOUGHTS IS ALONG THE LINES OF WE DO -- I'M GLAD WE'RE GOING THROUGH THIS AUDITING PROCESS WITH -- WITH THE APPRAISAL DISTRICT, BUT I JUST SIMILARLY, MAYOR, LIKE WE DID WITH THE INDEPENDENT SCHOOL DISTRICTS FOR IGR IN THE NEXT LEDGE SESSION WE HAVE TO GET A GROUP OF STAKEHOLDERS AND RESIDENTS TOGETHER, SIT AT THE TABLE TOGETHER, IN UNISON, SPEAK ON THE SAME SHEET OF MUSIC AND GO UP AND SPEAK OF THE SAME METHODOLOGY.
WE HAVE TO DO THIS TOGETHER FOR OUR STATE LEG AND BRING OUR MEMBERS TOGETHER.
I'LL BE WHOLEHEARTEDLY AND PARTICIPATING IN THAT.
YOU KNOW, AND I THINK, AS MENTIONED, Y'ALL WERE MENTIONING ABOUT SENIORS AND THAT ONE PERSON WAS 52, BUT WE DO HAVE TO MAKE SURE -- I KNOW IN MY DISTRICT, SIMILARLY TO YOURS, WE HAVE TO MAKE SURE ALL OF THOSE WHO CAN TAKE PART IN HOMESTEAD EXEMPTION ARE SIGNING UP AND GETTING THEIR HOMESTEAD EXEMPTION.
SO IF THERE'S ANY PARTNERSHIPS THAT WE CAN DO, EVEN WITH AARP, EVEN THOUGH YOU GET YOUR CARD -- I HEAR, I DON'T KNOW, YOU GET YOUR CARD WHEN YOU'RE 50, THAT WE ALREADY START PUTTING IT IN THE THOUGHT PROCESS FOR THE 65 AND OVER
[00:40:01]
TAX FREEZE, ET CETERA.AND I ALSO WANTED ERIK, I THINK WE ALSO NEED TO -- IF WE DON'T DO THIS YET, WE HAVE TO FIND OUT HOW MANY CITY OF SAN ANTONIO EMPLOYEES ARE HOMEOWNERS AND MAKE SURE THAT OUR CITY EMPLOYEES ARE ALSO TAKING ADVANTAGE OF ALL OF THE EXEMPTIONS THAT THEY HAVE AT THEIR DISPOSAL.
I THINK THAT IS THE THING THAT WE NEED TO DO TO LEAD THE WAY AND MAKE SURE THAT WE'RE TAKING CARE OF OUR OWN WITHIN OUR ORGANIZATION IF WE'RE NOT DOING THAT ALREADY.
AND THEN FINALLY, TWO OTHER POINTS THAT HAVE BEEN MADE, THE GROWTH IN DISTRICT 3 HAS BEEN EXTRAORDINARY IN THESE PAST COUPLE OF -- PAST SIX YEARS.
IT IS GROWING AT A RATE THAT MANY PEOPLE NEVER BELIEVED WOULD EVER GROW AGAIN.
AND I'M VERY PROUD OF THAT FACT.
WE NOT ONLY HAVE THOSE LEGACY HOMEOWNERS AND GENERATIONAL HOMES, WE FINALLY HAVE NEW SINGLE FAMILY HOUSING STOCK THAT IS COMING INTO THE DISTRICT.
IT'S FOR THE LEGACY HOMEOWNERS, BUT IT'S ALSO FOR THESE NEW HOMEOWNERS THAT ARE ABLE TO AFFORD THESE HOUSES IN AND AROUND BROOKS AND ROOSEVELT AND 410 AND TOYOTA, AND THESE ARE ALL COMING ONLINE, AND NOW THIS IS GOING TO BE ANOTHER TOOL FOR THEM TO START THEIR SAVINGS AND TO START BUILDING, I BELIEVE, FINANCIAL -- THIS WEALTH, THIS FINANCIAL WEALTH THAT IS VERY GREATLY NEEDED IN ALL PARTS OF SAN ANTONIO, PARTICULARLY IN THE SOW THRN SECTOR OF -- SOUTHERN SECTOR OF SAN ANTONIO.
BUILDING UP THAT WEALTH, AND I THINK THIS IS GOING TO HELP BUILD THAT.
SO I WANT TO THANK ALL MY COUNCIL COLLEAGUES FOR THEIR CONVERSATIONS, THEIR -- WALKING ME THROUGH THINGS AND SHARING WITH ME THEIR CONCERNS.
I WANT TO THANK THE RESIDENTS, TOO, BECAUSE ALL OF OUR RESIDENTS WHO HAVE BEEN VERY VOCAL ABOUT WHAT IS HAPPENING HERE IN THIS CITY WITH OUR RISING APPRAISALS.
AND, MAYOR, I KNOW I'M READY TO WORK ON THIS, WHAT WE NEED TO DO AT THE STATE LEVEL.
>> GORZELL: CAN I JUST ADD ONE COMMENT.
>> GORZELL: COUNCILMAN TREVINO MAY MENTION THIS AS WELL, THE BEXAR COUNTY APPRAISAL DISTRICT IS DOING AN AUDIT OF EXEMPTIONS.
WE CAN CERTAINLY HELP COORDINATE WITH THAT SO THAT WE CAN IDENTIFY THOSE THAT MAY BE 65 OR OLDER THAT AREN'T TAKING ADVANTAGE OF THAT EXEMPTION.
>> GORZELL: AND THEN ONE OTHER COMMENT, CERTAINLY UNDERSTAND THE NEED TO DO PROPERTY TAX RELIEF, AND AS WE GO FORWARD AND YOU THINK ABOUT FROM A POLICY PERSPECTIVE HOW WE PRIORITIZE, WHEN YOU LOOK BACK AT THAT LAST FIVE YEARS, HAD SB SPZ 2 BEEN IN PLACE, WE TALK ABOUT THE GENERAL FUND BEING $37 MILLION LOWER TODAY, YOU ADD IN THE TELECOM ON TOP OF THAT, YOU'RE TALKING ABOUT $44 MILLION LESS, SOMEWHERE IN THIS 2019 BUDGET.
SO CLEARLY, HAD THE SB 2 BEEN IN PLACE FOR THE PAST FIVE YEARS WE WOULD HAVE MADE DIFFERENT DECISIONS ALONG THE WAY, BUT I THINK IT JUST ILLUSTRATES THAT IT'S JUST GOING TO BE A LOT MORE DIFFICULT TO BALANCE THINGS LIKE PROPERTY TAX RELIEF, YOUR PRIORITIES, THE PROGRAMS YOU WANT TO INITIATE, THE THINGS YOU WANT TO DO IN OUR COMMUNITIES, IT'S GOING TO BE A LOT MORE CHALLENGING, AND THERE'S CERTAINLY GOING TO HAVE TO BE A LOT MORE EMPHASIZE ON THE PRIORITIZATION PART GOING FORWARD BECAUSE OUR REVENUE PICTURE WILL NOT LOOK LIKE IT HAS LOOKED HISTORICALLY BECAUSE OF SB 2.
>> VIAGRAN: I'M GLAD YOU KEPT TALKING BECAUSE ANOTHER QUESTION CAME TO MIND.
SO IN LOOKING AT THIS, DO YOU SEE -- DO YOU ANTICIPATE THIS WHEN YOU GO UP TO OUR RATING AGENCIES, WHEN YOU GO UP TO OUR RATING AGENCIES, HOW WILL THIS -- WILL IT NEGATIVELY OR NOT HAVE AN IMPACT.
>> GORZELL: I THINK CERTAINLY WHEN WE'RE MEETING WITH THEM THIS SUMMER SH WE WILL HAVE A LONGER CONVERSATION ABOUT SB 2 AND ITS IMPACT UPON THE ORGANIZATION GOING FORWARD.
I THINK A BIG PART OF THAT WILL HELP IN THAT CONVERSATION IS THE FINANCIAL POLICY CONVERSATION WE HAD LAST FRIDAY.
>> VIAGRAN: BUT WHAT ABOUT THIS, THIS ENACTING A LOCAL HOMESTEAD EXEMPTION.
>> GORZELL: I THINK IT'S A LITTLE BIT OF A TOUGH CONVERSATION FROM THE STANDPOINT THAT WE ARE DOWN $11 MILLION IN CPS, WE DO HAVE UNCERTAINTY WITH THE FIRE CONTRACT OUT THERE.
WE'VE GOT SB2 IN PLACE NOW GOING FORWARD.
BUT I THINK IN TERMS OF THIS PARTICULAR HOMESTEAD EXEMPTION, I THINK WE CAN POINT TO THE PACT THAT IT'S A THREE MILLION DOLLARS IMPACT.
IT'S SOMETHING WE'RE GOING TO HAVE TO MANAGE THROUGH THIS YEAR'S BUDGET PROCESS.
THAT'S PART OF THE CONVERSATION THAT WE'LL BE HAVING.
>> VIAGRAN: OUR POLICIES THAT WE HAVE ARE STILL GOING TO BE SET IN ORDER TO GIVE US SOME STABILITY IN THE FUTURE.
[00:45:01]
WHEN I SHOWED THAT SLIDE THAT TALKED ABOUT WE WERE IN A RECESSIONARY PERIOD COMING OUT AND YOU'RE NOT AT 3.5%, IN THOSE YEARS WHEN YOU COME OUT AND YOU'VE GOT SOME ROOM TO MOVE, THAT'S WHEN WE WANT TO MOVE A LITTLE BIT, I THINK.
>> GORZELL: THAT ISN'T GOING TO MAKE UP FOR THE LOSS UNDER SB 2 BUT IT CAN PUT US IN A BETTER POSITION FINANCIALLY.
WE'RE GOING TO UPDATE YOU EVERY YEAR ON WHAT THE DIFFERENCE IS RELLED TO SB 2, SO YOU HAVE SOME CONTEXT AROUND HOW WE'RE -- HOW MUCH OUR FINANCIAL POSITION HAS CHANGED, AND, YOU KNOW, YOU ALL CAN THEN DECIDE FROM A PRIORITY STANDPOINT WHAT YOU WANT TO DO.
IS IT MORE TAX RELIEF AND OTHER COUNCIL PRIORITIES? IS IT ONE OR THE OTHER? THAT WILL BE PART OF THAT BALANCING ACT THAT WE'LL GO THROUGH EVERY YEAR.
I THINK CERTAINLY THIS BUDGET PROCESS IS GOING TO BE A TOUGH ONE.
I THINK IT'S GOING TO BE ONE OF THE MORE CHALLENGING ONES, SORRY, ERIK, THAN WE'VE HAD IN A WHILE.
BUT I THINK WE'LL GET THROUGH IT AND I THINK WE CAN MANAGE THIS --
>> VIAGRAN: I THINK Y'ALL ARE THE RIGHT TEAM TO DO IT, SO THANK YOU.
>> MAYOR NIRENBERG: THANK YOU, COUNCILWOMAN VIAGRAN.
COUNCILWOMAN ANDREWS-SULLIVAN.
>> SULLIVAN: THANK YOU FOR YOUR PRESENTATION.
I'M GLAD THAT YOU'RE ABLE TO AT LEAST BREAK DOWN HOW MANY TOTAL PARCELS WE ACTUALLY HAVE.
DO YOU KNOW AN ESTIMATED TIME FRAME ON GETTING A NUMBER BACK TO US ON HOW MUCH THAT WILL GENERATE TO ACTUALLY OFFSET WHAT WE'LL BE LOSING AS WE IMPLEMENT THE HOMESTEAD EXEMPTION? FOR MY COMMUNITY, I KNOW THAT IS ONE OF THE LARGEST THINGS THAT WE HAVE IS THE -- IN AUDIO] -- BECAUSE OF THE PROPERTY TAXES.
I KNOW WE HAVE A LOT OF LEGACY HOMEOWNERS THAT HAVE TAKEN PART OF THE 65 AND OVER, BUT THEN WE HAVE A YOUNGER GENERATION THAT IS NOW MOVING IN AND OUR HOME VALUES HAVE ESCALATED OVER 210%.
SO A LOT OF THOSE LEGACY HOMEOWNERS ARE NOT ONLY BEING TAXED OUT, BUT THEY'RE BEING VALUED OUT.
SO WHEN WE LOOK AT THE FACT THAT THERE'S HALF AND HALF WITH OUR PARCELS, HOW MUCH WILL THAT GENERATE TO HELP US IN THIS HOMESTEAD EXEMPTION AS WE MOVE FORWARD? AND ACTUALLY HELP US AS WE IMPLEMENT THE 3.5% THAT WE'LL ACTUALLY BE LOSING AS WELL IN PROPERTY TAXES, AND JUST THANK YOU SO MUCH, COUNCILMAN PERRY AND COUNCILMAN COURAGE, BECAUSE THIS WAS TRULY ONE OF THE THINGS WHEN I WAS ON THE CAMPAIGN TRAIL, I DID TELL MY CONSTITUENTS, WE WILL, BECAUSE FOR SOME REASON THE CITY OF SAN ANTONIO BEING LEFT BEHIND ON A HOMESTEAD EXEMPTION, STILL BAFFLES ME.
SO THANK YOU FOR CHAMPIONING THIS UP FRONT AND FOREMOST AND I LOOK FORWARD TO SUPPORTING YOU.
I LOOK FORWARD TO SEEING THOSE NUMBERS TO TELL US HOW MUCH WE'LL ACTUALLY BE ABLE TO RECOUP AS WELL.
>> GORZELL: SO IN TERMS OF RECOUPMENT, THE EXEMPTION WILL APPLY TO ALL HOMESTEADS.
SO THAT WILL BE THE REVENUE LOST TO US.
THERE'S REALLY NOT AN OFFSET TO THAT.
THAT'S WHAT WE'RE GOING TO REALIZE GOING INTO 2020 IS THAT REVENUE LOSS.
>> SULLIVAN: SO WITH THE PARCELS WE'RE NOT GOING TO BE ABLE TO RECOUP ANY MONEY BACK INTO THE CITY.
>> GORZELL: I KNOW THERE WAS SOME CONVERSATION ABOUT -- WHAT DID I DO WITH IT? THERE ARE A LOT OF PARCELS THAT ARE NOT PAYING PROPERTY TAXES TODAY.
>> GORZELL: BUT THOSE ARE STATUTORILY EXEMPT FROM PROPERTY TAXES AND WE PULLED THAT, IT'S ABOUT 14,200 PARCELS.
THE MARFA JORTY OF THEM ARE -- FAR MAJORITY OF THEM ARE PROPERTY THAT WE OWN, SCHOOL DISTRICTS OWN, THE COUNTY, THE FEDERAL GOVERNMENT.
SO ALL THOSE GOVERNMENTAL PROPERTIES ARE NOT TAXABLE BY STATE LAW.
CHARITABLE ORGANIZATIONS, CHURCHES, RELIGIOUS GROUPS, ALL OF THOSE ARE EXEMPT FROM PROPERTY TAXES.
I THINK THERE WAS SOME CONVERSATION AROUND, LIKE IN OUR CASE, COULD WE IDENTIFY SURPLUS PROPERTY THAT THEN YOU COULD SELL, GET BACK TO A PRIVATE DEVELOPMENT AND GET THOSE ONTO THE TAX ROLLS.
THOUGHS ARE CERTAINLY THINGS YOU CAN LOOK AT BUT IT'S REALLY -- IT TAKES TIME TO DO THAT.
AND IT'S REALLY HARD TO MOVE THE NEEDLE FROM A PROPERTY TAX STANDPOINT TO GIVE YOU AN IDEA OF THE IMPACT TO US.
IF YOU DID THAT AND YOU HAD THOSE PROPERTIES REDEVELOPED AND LET'S SAY THEY GENERATED $500 MILLION IN VALUE, THAT WOULD EQUATE TO $1.7 MILLION TO US IN THE GENERAL FUND.
THAT $500 MILLION INCREASE WOULD BE SIGNIFICANT BECAUSE WHEN YOU LOOK AT DEVELOPMENT ACROSS THE ENTIRE CITY OF SAN ANTONIO, WE GET ON AVERAGE EVERY YEAR ABOUT $2 BILLION.
SO TO TAKE SURPLUS PROPERTIES AND TO MOVE THE NEEDLE A LOT WITHIN THE GENERAL FUND, IT'S ONE THAT WILL TAKE TIME.
TWO, IT'S NOT GOING TO MOVE THE NEEDLE A LOT.
THOSE ARE SOMETHING WE CAN CONTINUE TO LOOK AT.
>> SULLIVAN: SO ARE THERE OTHER RESOURCES OUTSIDE OF JUST THE PARCELS THAT WE AS A CITY CAN START LOOKING INTO TO HELP KIND OF ALLEVIATE THE BURDEN THAT WE'RE GOING TO HAVE ON US WHEN IT COMES TO
[00:50:02]
THE REVENUE THAT WE'RE LOSING AS A CITY? HAVE WE LOOKED AT -- I KNOW THE MAYOR SPOKE OF OTHER ENTITIES IN WHICH THE BUDGET HE WILL BE KIND OF LOOKING TO MANEUVER, AND SO I'D JUST LIKE TO SEE HOW WE COULD ACTUALLY BREAK IT ALL DOWN TO MAKE THE NUMBERS MEET.>> GORZELL: I THINK IN TERMS OF GOING THROUGH THE BUDGET PROCESS THIS YEAR, THE THINGS WE'LL BE LOOKING AT ARE REDUCTIONS.
YOU KNOW, WHERE WE CAN LOOK AT EFFICIENCIES OR ACTUALLY REDUCTION SOS WE CAN BALANCE THE BUDGET.
OR WE'RE GOING TO HAVE TO LOOK AT OTHER TYPE OF REVENUE OPTIONS.
WE HAVEN'T IDENTIFIED THOSE YET, BUT WE'LL CONTINUE TO LOOK AT IT.
AND, OF COURSE, WE HAVE TO CONTINUE TO UPDATE EVEN WHERE WE ARE TODAY, BECAUSE AS I MENTIONED, CPS, I THINK, IN THE FORECAST, WE WERE DOWN ABOUT 8.8 MILLION; IT HAS CONTINUED TO DECLINE.
WE'RE DOWN ABOUT 11 THROUGH MAY.
I EXPECT BY THE END OF JUNE, WE'LL BE FURTHER BEHIND AT THE END OF JUNE.
THE WEATHER HAS BEEN VERY MILD, CONTINUES TO BE VERY MILD.
SO ALL OF THAT WILL HAVE TO BE BUILT IN, BUT REALLY OUR ONLY LEVERS THAT WE CAN PULL, WE'RE GOING TO HAVE TO LOOK AT COST REDUCTIONS AND EFFICIENCIES WITHIN THE BUDGET AND THEN SOME REVENUE OPPORTUNITIES OF SOME TYPE.
>> MAYOR NIRENBERG: THANK YOU, COUNCILWOMAN ANDREWS-SULLIVAN.
>> HAVRDA: THANK YOU FOR THE PRESENTATION, BEN.
DISTRICT 6 IS IS IS LITTLE DISTRICT.
SO MY QUESTION REALLY IS HOW WILL CUTTING THESE SERVICES IMPACT, ONE, I THINK THAT ONE AREA WILL BE MORE IMPACTED MORE SEVERELY MORE THAN OTHER AREAS.
I GUESS MY REAL QUESTION IS DO WE HAVE A CITY DEMOGRAPHER THAT LOOKS INTO THAT OR THAT WILL BREAK THAT DOWN.
>> GORZELL: IMPACT IN TERMS OF THE HOMESTEAD OR IN TERMS OF --
>> GORZELL: SO EVERY -- EVERY HOMEOWNER, EVERY HOMESTEAD WILL RECEIVE THE $5,000 EXEMPTION.
I DON'T HAVE IT BROKEN DOWN IN THE DISTRICT IN TERMS OF VALUE OF HOMES, SO OBVIOUSLY SOMEBODY IN A $100,000 HOME, THE $5,000 EXEMPTION WILL HAVE MORE VALUE THAN SOMEBODY IN A $300 HOME.
WE HAVE NOT BROKEN IT DOWN TO THAT LEVEL.
>> HAVRDA: I'M LOOKING TO THE COST OF CITY SERVICES.
ONE AREA OF MY DISTRICT, SPECIFICALLY EDGEWOOD, IT'S GOING TO HAVE A VERY DIFFERENT IMPACT ON EDGEWOOD THAN IT WILL TO HOMEOWNERS IN THE WEST-OVER HILLS AREA.
SO MY QUESTION ABOUT THE DEMOGRAPHER IS CAN SOMEBODY BREAK THAT DOWN FOR US, TO SEE HOW WILL TO COUNCILWOMAN GONZALES' POINT, THERE ARE CERTAIN AREAS THAT USE CITY SERVICES MORE, AND I'D LIKE TO KNOW THE IMPACT TO THE DIFFERENT PARTS OF MY DISTRICT ON THIS HOMESTEAD EXEMPTION WILL HAVE.
BUT NOT SO MUCH ON THE EXEMPTION ITSELF, BUT ON THE COST OF CITY SERVICES.
WE CAN LOOK AT -- I THINK PART OF IT AS WE LOOK AT THE BUDGET, I THINK WE'LL HAVE TO DETERMINE -- AND I GUESS YOU'RE ASKING MORE FROM THE PERSPECTIVE OF IF WE HAVE TO REDUCE SERVICES TO PAY FOR THIS.
>> GORZELL: DEPENDS WHICH SERVICES WE LOOK AT AND -- HAFDZ OKAY.
>> GORZELL: AND THEN WE CAN, I THINK, GIVE YOU A BETTER IDEA WHAT THE IMPACT WILL BE IN THE COMMUNITY.
COUNCILWOMAN , THE CITY MAGGER HAS A COMMENT.
>> WALSH: THAT'S PART OF THE PROCESS WE'LL GO THROUGH THIS SUMMER IN IDENTIFYING, AND NOT JUST FROM A REDUCTION STANDPOINT, BUT IF THERE ARE ADJUSTMENTS TO REVENUES, WHO DOES THAT IMPACT AND HOW DOES IT IMPACT THEM.
BUT THAT'S AN ANALYSIS THAT WE'RE GOING TO HAVE TO GO THROUGH OVER THE NEXT 30, 45 DAYS.
MY SECOND QUESTION IS TWOFOLD.
JUST LIKE MY COLLEAGUES MENTIONED, THE PEOPLE OF DISTRICT 6 MADE IT VERY CLEAR TO ME, I CONDUCTED A MORE INFORMAL POLL THAN COUNCILMAN COURAGE AND IT WAS KNOCKING ON EVERYBODY'S DOOR, BUT THEY MADE IT VERY CLEAR TO ME THAT THEY WANTED A HOMESTEAD EXEMPTION.
CONVERSELY, THEY MADE IT CLEAR TO ME THEY DON'T WANT ANY CITY SERVICES TO BE CUT.
SO I UNDERSTAND, BUT I ALSO KNOW SOMETHING HAS TO GIVE.
SO CAN YOU -- AND MAYBE YOU CAN'T ANSWER THIS TODAY, BUT I'D LIKE TO KNOW THE TOTAL ECONOMIC IMPACT OF THE EXEMPTION ON OUR CITY SERVICES.
I GUESS THE SECOND PART OF THAT WAS THE QUESTION ABOUT THE DEMOCRAT GRAPH IBS -- DEMOGRAPHICS OF MY DISTRICT.
I'D LIKE TO GO BACK TO MY HOMEOWNERS OR THE PEOPLE IN ALL THE DISTRICTS AND SAY THIS IS WHAT WE DID FOR YOU, BUT THIS IS HOW IT'S GOING TO IMPACT YOU.
SO IF I COULD GET SOME CLARIFICATION ON THAT AT A LATER DATE, THAT WOULD BE GREAT.
I DON'T HAVE THAT, BUT THAT'S SOMETHING WE CAN CERTAINLY LOOK AT.
AND I THINK, YOU KNOW, PART OF OUR LEGISLATIVE AGENDA GOING FORWARD WILL PROBABLY HAVE TO BE TO KEEP THIS ON THE AGENDA, BECAUSE REMEMBER FROM THE STATE SIDE, HB 3, THAT FUNDING IS REALLY IN PLACE FOR THE NEXT BIENNIUM.
THERE'S NOT A PERMANENT REVENUE SOURCE THAT'S BEEN IDENTIFIED, SO THE STATE WILL HAVE TO COME UP WITH
[00:55:02]
ADDITIONAL FUNDING IN THE NEXT BIENNIUM IN ORDER TO KEEP THAT TAX RATE WHERE IT IS, OR TO KEEP THE TAXES WHERE THEY'RE AT OR KEEP THEM FROM GROWING SIGNIFICANTLY.SO IT WILL BE AN ONGOING CONVERSATION I'M SURE.
>> MAYOR NIRENBERG: THANK YOU, COUNCILMAN CABELLO.
>> GARCIA: THANK YOU, BEN AND TEAM.
I ALSO WANT TO POINT OUT THAT THE WEATHER IS MILD BUT ACCORDING TO THE MEMES ON SOCIAL MEDIA IT'S REALLY HOT.
BUT I GUESS ONLY THE CFO CAN SAY THAT.
THANK YOU FOR WORKING THROUGH THE WEEKEND.
I APPRECIATE THAT ON BEHALF OF THE RESIDENTS ON DISTRICT 4.
ANY TAX RELIEF IS GOOD AND I'M LOOKING FORWARD TO SHOWCASE HOW SAN ANTONIO CAN MAINTAIN OUR SERVICES AT CURRENT LEVELS.
I HAVE COMPLETE CONFIDENCE IN THE STAFF.
I THINK YOU ALL HAVE REALLY GOOD RECOMMENDATIONS.
I HAVE COMPLETE CONFIDENCE IN MY COLLEAGUES, THANK YOU COUNCILMAN PERRY WHO GAVE ME A LOT OF HOMEWORK TO READ OVER THE WEEKEND, BY THE WAY, IN PREPARATION.
AND I LOOK FORWARD TO WORKING WITH MY COLLEAGUES AND SEEING WHERE IT IS THAT WE CAN FIND SOME EFFICIENCIES TO HELP YOU ALL AS WELL FROM THE COUNCIL PERSPECTIVE, AND I KNOW THAT THERE'S GOING TO BE SOME ADDITIONAL PRIORITIES THAT WE MIGHT HAVE TO READJUST OR RECONSIDER, BUT I THINK THAT THIS IS WHAT THE RESIDENTS WANT AND WHAT THE RESIDENTS WANT IS WHAT WE SHOULD GIVE THEM.
I'D ALSO LIKE TO PROBABLY ASK MAYBE JEFF IF THERE'S A PLAN ALREADY IN PLACE OR IF THERE'S JUST KIND OF A COMMUNICATIONS PLAN IN GENERAL EVERY TIME THAT WE MAKE SIGNIFICANT CHANGES LIKE THIS TO EDUCATE CURRENT HOMEOWNERS OR RESIDENTS IN GENERAL? FOR INSTANCE, IN THIS CASE, ABOUT ALL OF THE EXEMPTIONS THAT ARE PARTICULARLY AVAILABLE TO THEM, BUT I'M LOOKING SPECIFICALLY FOR HOW WE COMMUNICATE WITH VULNERABLE POPULATIONS THAT MIGHT NOT HAVE ACCESS TO INTERNET CONNECTIONS OR SMARTPHONES OR TRADITIONAL SOCIAL MEDIA THAT EVERYBODY USES NOW?
>> FIRST OF ALL, FORGIVE ME FOR MY DRESSING DOWN HERE.
I WAS TRYING TO IMPRESS COUNCILMAN TREVINO.
WE HAVEN'T DEVELOPED A COMMUNICATIONS PLAN YET.
WE CERTAINLY CAN, AND I THINK GIVEN THAT THIS WOULD BE A CITY HOMESTEAD EXEMPTION, IT WOULD BE AN OBLIGATION ON THE CITY TO BE ABLE TO COMMUNICATE THAT OUT TO THE PUBLIC.
I KNOW THAT THE APPRAISAL DISTRICT DOES ITS OWN PUBLICIZING AND EDUCATING ABOUT THE EXEMPTIONS AVAILABLE AND THE DEADLINES FOR APPLYING AND THE COUNCILMAN'S PROBABLY BETTER EQUIPPED TO ANSWER THAT THAN I AM.
BUT WE'LL BE HAPPY TO WORK WITH YOU ON DEVELOPING SOMETHING.
>> MAYOR NIRENBERG: COMEU COUNCILMAN GARCIA.
>> PELAEZ: I'M GOING TO SUPPORT THIS.
IT THE RIGHT THING TO DO. ALL OF OUR CONSTITUENTS, I'VE YET TO MEET A CONSTITUENT OUT THERE THAT SAYS I'D REALLY RATHER NOT HAVE A HOMESTEAD EXEMPTION THIS TIME AROUND.
AND, AGAIN SH I'LL CAUTION ALL OF US, WE MAY ALL WALK OUT OF THIS ROOM AND TAKE A VICTORY LAP AND SPIKE THE BALL, BUT I'M NOT SURE THAT THIS IS A VICTORY THAT IS GOING TO BE FELT BY THE TAXPAYER FOR VERY LONG.
YOU KNOW, THEY'RE GOING TO -- NEXT YEAR'S TAX APPRAISAL IS GOING TO COME AROUND, THEY'RE GOING TO GET THEIR LOVE LETTER FROM THE BEXAR COUNTY APPRAISAL DISTRICT AND THEY'RE GOING TO SEE EXACTLY WHAT THEY OWE AND THAT WE DID THIS TODAY IS PROBABLY NOT GOING TO BE VERY MUCH APPRECIATED OR REMEMBERED.
DESPITE THAT, WE'VE GOT TO DO THE RIGHT THING ANYWAY BY THEM.
AND I'M A TAXPAYER, TOO, AND I'M A HOMEOWNER ALSO AND I WOULD LOVE TO PAY LESS IN TAXES, AND I UNDERSTAND THAT, YOU KNOW, DEMONIZING ALL TAXES IS VERY EASY AND THE HARD PART IS ACTUALLY DEFENDING WHAT YOU DO WITH THE TAXES AND EXPLAIN IT TO PEOPLE, THAT TAXES PAY FOR PARKS AND SIDEWALKS AND STREETLIGHTS AND AIRPORTS AND ALL THE THINGS THAT WE'VE COME TO APPRECIATE.
BUT I ALSO KNOW THAT IN LEVYING TAXES, IT'S REALLY SIMILAR TO SHEERING SHEEP, THAT, YOU KNOW, IT'S ALWAYS A GOOD IDEA TO STOP WHEN YOU HIT THE SKIN.
AND IN THIS INSTANCE, IT'S CLEAR THAT ALL OF OUR CONSTITUENTS ARE FEELING THE PAIN.
AND THANK YOU SO MUCH, COUNCILMAN PERRY AND COUNCILMAN COURAGE FOR BEING LEADERS IN THIS EFFORT.
>> MAYOR NIRENBERG: THANK YOU, COUNCILMAN PELAEZ.
>> SANDOVAL: THANK YOU VERY MUCH, MAYOR.
I'LL BE SUPPORTING THE ITEM, BUT I DO HAVE SOME CONCERNS AND I JUST WANT TO MAKE SURE THAT I EXPRESS THOSE BEFORE WE HAVE TODAY'S VOTE.
SO THE SAVINGS THAT WE -- I'M SORRY, THE LOSS OF REVENUE THAT WE ANTICIPATE IS 3.6 MILLION, RIGHT, BEN? NOW, IS IT TECHNICALLY A LOSS OR IT MEANS OUR REVENUES AREN'T GOING TO GROW BY, YOU KNOW, THAT MUCH MORE?
[01:00:03]
2020, $3.6 MILLION.IF YOU LOOK AT THE FORECAST, WE WERE PROJECTING A LITTLE BIT OF A POSITIVE BALANCE IN 2020, THIS WOULD ABSORB THAT POSITIVE BALANCE.
SO $3.6 MILLION, COULD YOU TELL ME LIKE WHAT WOULD THAT PROVIDE NORMALLY? LIKE, YOU KNOW --
>> GORZELL: I MIGHT ASK MARIA TO HELP ME.
>> SANDOVAL: SO IN AIR QUALITY WHEN WE SAY WE'RE GOING TO RELEASE 100-TONS OF, YOU KNOW, POLLUTION, THEY'LL ALWAYS SAY, WHAT DOES THAT MEAN IN HOW MANY MILES YOU DRIVE OR SOMETHING, SO...
>> VILLAGOMEZ: A QUICK EXAMPLE, COUNCILWOMAN, THAT'S ABOUT 36 POLICE OFFICERS.
THEY COST ABOUT $100,000 A YEAR, SO YOU COULD DO THAT WITH $3.6 MILLION.
SO THAT'S -- YOU KNOW, THAT'S PART OF THE CONCERN.
WE'VE BEEN INCREASING OUR SPENDING ON THE REHABILITATION OF THE ROADS AND I DON'T THINK THERE'S ANYBODY OUT THERE THAT SAYS -- AT LEAST IN MY DISTRICT THAT WILL SAY STOP FIXING MY ROADS.
I'M READY TO, YOU KNOW, TAKE A SLOWER PACE AT WHAT YOU'RE DOING WITH THE ROADS, SO THAT'S -- THAT'S THE UF THE PART ABOUT THIS -- THE TOUGH PART ABOUT THIS.
BUT I ALSO UNDERSTAND THE TOUGH PART ABOUT PROPERTY TAXES.
NOT JUST THAT THEY'RE HIGH, IT'S JUST THAT THEY'RE SO UNPREDICTABLE FROM YEAR TO YEAR.
SO WHEN THEY GO UP, YOU DON'T NECESSARILY HAVE MORE MONEY IN YOUR POCKET TO PAY IT, RIGHT, JUST BECAUSE YOUR VALUE'S WORTH MORE.
YOU ONLY GET THAT VALUE WHEN YOU SELL IT.
AND THEN WHERE DO YOU LIVE AFTER THAT? AND THE AVERAGE SAVINGS IS $28?
MAIRS THANK YOU, COUNCILWOMAN SANDOVAL.
COUNCILWOMAN ANDREWS-SULLIVAN.
>> SALDAÑA: SO I HAVE A QUESTION FOR --
>> SULLIVAN: SO I HAVE A QUESTION FOR JEFF.
SO WITH THE IMPLEMENTATION OF THE HOMESTEAD EXEMPTION ONCE WE TAKE THE VOTE ON IT, AND I KNOW THAT THE LEGISLATIVE PORTION OF THE APPRAISAL PART OF GETTING THINGS IN PLACE TO HELP OUR HOMEOWNERS KIND OF TOOK A BACK SEAT THIS SESSION.
ONCE WE HAVE THIS IN PLACE, WHAT WILL BE THE NEXT STEP TO WORK IN THE LEGISLATIVE PORTION TO GET OUR APPRAISALS TO A --
>> GORZELL: OH, I SEE YOUR QUESTION.
>> SULLIVAN: -- TO A SUBSTANTIAL UNDERSTANDING WITHOUT US HAVING TO -- IN AUDIO] -- PORTION OF HAVING TO DO THE RESEARCH WITH THE BEXAR COUNTY APPRAISAL DISTRICT? WHAT ARE YOUR NEXT STEPS INTO MAKING SURE THAT ONCE THIS IS IMPLEMENTED, THE APPRAISALS ARE CAUGHT UP TO PAR AND THAT WE ARE NOT JUST GOING BACK AND FORTH IN THIS TUG OF WAR BETWEEN PROPERTY TAX APPRAISALS? WHAT WOULD BE YOUR NEXT STEP WITH THAT.
>> I THINK I UNDERSTAND YOUR QUESTION, WHICH IS -- TELL ME IF I'M CORRECT HERE, THE VALUE GROWTH IS PART -- IS A BIG PART OF THE REASON WHY PROPERTY TAXES ARE GOING UP, AND THOSE REFORMS HAVEN'T HAPPENED AT THE CAPITOL.
THEY'VE BEEN TALKED ABOUT FOR MANY, MANY SESSIONS, AND THERE HAVE BEEN SOME THINGS THAT HAVE BEEN DONE IN PAST SESSIONS.
THERE'S A 10% CAP ON HOMESTEAD APPRAISALS. YOUR VALUE CAN'T GO UP MORE -- IF IT GOES UP MORE THAN 10%, IT'S BROUGHT BACK TO THAT.
YOU'RE CORRECT, THERE WAS NO REAL REFORM ON THE APPRAISAL FRONT, OTHER THAN SORT OF TRANSPARENCY AROUND THE PROCESS THAT OCCURRED THIS SESSION.
IN TERMS OF WHAT WE WILL PUGS FOR NEXT SESSION, ULTIMATELY YOU ALL MAKE THAT DESIGNATURE.
WE'LL BE COMING TO YOU WITH A RECOMMENDED LEGISLATIVE AGENDA BEFORE THE NEXT SESSION, WHICH ULTIMATELY GETS CONSIDERED BY THE COUNCIL.
BUT THE APPRAISAL PIECE HASN'T BEEN ADDRESSED.
WE'VE HAD MEMBERS FROM OUR DELEGATION WHO HAVE, I BELIEVE, STRONGLY, AND I THINK OUR FINANCE DEPARTMENT DOES, TOO, THAT SALES PRICE DISCLOSURE IS AN IMPORTANT PIECE.
IN OTHER WORDS, IN TEXAS, THERE'S NO REQUIREMENT WHEN YOU SELL YOUR PROPERTY THAT YOU DISCLOSE THE SALES PRICE TO THE APPRAISAL DISTRICT.
AND SO FOR HOMES, IT'S RELATIVELY EASY FOR AN APPRAISAL DISTRICT TO FIGURE OUT WHAT SIMILAR HOMES ARE VALUED AT IN A NEIGHBORHOOD.
FOR LARGE COMMERCIAL OFFICE BUILDINGS OR OTHER PROPERTIES, IT'S MUCH MORE DIFFICULT.
AND SO REPRESENTATIVE BERNAL HAS PUSHED THE PAST COUPLE SESSIONS FOR A STUDY, JUST A STUDY TO START, BECAUSE IT'S BEEN SUCH A DIFFICULT ISSUE AT THE LEGISLATURE, TO STUDY WHAT THE IMPACT WOULD BE IF WE HAD OPEN TRANSPARENCY OF ALL SALES PRICES TO SORT OF ENSURE THAT VAL YOUS WERE -- VALUES WERE CORRECT ACROSS THE COMMUNITY AND THAT HASN'T GONE ANYWHERE EITHER.
IT'S BEEN A DIFFICULT FIGHT AND THE APPRAISAL GROWTH CONTINUES TO BE A PART OF THE EQUATION FOR SURE.
[01:05:02]
>> MAYOR NIRENBERG: THANK YOU, COUNCILWOMAN ANDREWS-SULLIVAN.
COUNCILMAN TREVINO TRECHEDZ THANK YOU --
FIRST I WANT TO CONTINUE ON AND THANK JEFF COYLE FOR TOUCHING ON SOME OF THE IMPORTANT ASPECTS OF THE APPRAISAL PROCESS AND UNDERSTANDING THAT RESIDENTIAL AND COMMERCIAL ARE ESSENTIALLY NOT BEING VALUED UNFORTUNATELY THE SAME.
COMMERCIAL PROPERTY TENDS TO BE FOUGHT MORE RIGOROUSLY THAN RESIDENTIAL PROPERTY.
AND I JUST WANT TO GO BACK TO COUNCILWOMAN HAF HAVRDA'S QUESTION TO BEN, I THINK I WOULD REPHRASE IT AS NEIGHBORHOOD BY NEIGHBORHOOD, HOW WOULD YOU DEMONSTRATE THE IMPACT OF THE HOMESTEAD EXEMPTION? AND I'LL GIVE A SMALL EXAMPLE.
THERE'S SOME NEIGHBORHOODS THAT YOU HAVE A A HIGH NUMBER OF HOME OWNERSHIP AND OTHER NEIGHBORHOODS WHERE IT HIGH RENTALS.
SO I THINK THAT WOULD SHED A LOT OF LIGHT ON THE REAL IMPACT OF THIS -- YOU KNOW, OF THIS HOMESTEAD EXEMPTION.
I THINK IT'S THE RIGHT THING TO DO, ANY SMALL MEASURE IS -- IS, ESPECIALLY WHEN IT COMES TO TAXES IS IMPORTANT, AND IT CERTAINLY IS PART OF US AS A CITY OR GOVERNMENTAL AGENCY TO BE MORE DILIGENT ABOUT SAVING TAX DOLLARS.
HOWEVER, I WILL SAY, THAT, YOU KNOW, WE NEED TO KIND OF UNDERSTAND WHAT THE IMPACT OF THIS HOMESTEAD EXEMPTION REALLY MEANS.
YOU KNOW, IT'S DEFINITELY GOING TO IMPACT OUR 2020 BUDGET.
IT IS A SMALL BUT PROPER TAX RELIEF.
I WILL SUPPORT COUNCILMAN PERRY AND COUNCILMAN COURAGE'S CCR; HOWEVER, WE CAN'T FORGET THE RENTERS OUT THERE.
AT LEAST 46% OF OUR COMMUNITY RENTS.
AND THEY WILL NOT BE IMPACTED BY THIS WHATSOEVER.
AND I THINK IT WOULD BE IMPORTANT FOR US TO KNOW WHAT PARTS OF OUR CITY ARE BEING IMPACT PACTED MORE THAN OTHERS.
YOU KNOW, A SMALL EXAMPLE IS FIVE POINTS IN MY DISTRICT IS MOSTLY RENTERS.
OTHER PARTS OF MY DISTRICT HAVE A HIGHER PERCENTAGE OF HOMEOWNERS.
YOU KNOW, THOSE FOLKS WILL CERTAINLY BE IMPACTED THE MOST.
AND AS BEN MENTIONED, THE BEXAR COUNTY APPRAISAL DISTRICT, THE BOARD DID DECIDE TO MOVE FORWARD ON AN AUDIT OF ALL THOSE THAT ARE TAKING THE HOMESTEAD AND OVER 65 EXEMPTION AND THOSE THAT ARE NOT.
I THINK WHAT YOU'RE GOING TO FIND IS THAT THERE'S GOING TO BE A SIGNIFICANT NUMBER OF PEOPLE THAT ARE TAKING THE HOMESTEAD THAT ARE NOT ESSENTIALLY QUALIFIED FOR THAT HOME STEAD.
BUT WE'RE ALSO GOING TO LOOK FOR THOSE THAT ARE NOT TAKING ADVANTAGE OF THAT HOMESTEAD AND TRY TO HELP THEM IMMEDIATELY, BECAUSE AS WE HEARD FROM THE ENTIRE DAIS, THAT IS ESSENTIALLY WHAT WE HOPE TO ACCOMPLISH WITH THE THINGS THAT WE ALREADY HAVE IN PLACE.
AND THAT MAKES A WHOLE LOT OF SENSE.
WHEN WE TALK TO SOME PEOPLE WHO ARE OVER 65 AND DON'T KNOW THAT THERE'S AN OVER 65 EXEMPTION, THAT IS TRULY A TRAGIC SITUATION, BECAUSE WE KNOW THAT THIS COULD HELP THEM IN A VERY SIGNIFICANT WAY.
ALSO WANT TO MENTION -- THIS WAS BROUGHT UP SEVERAL TIMES -- THAT THROUGH THE -- NOT THE APPRAISAL DISTRICT, BUT THE TAX ASSESSOR, IN WORKING WITH ALBERT URESTI, I CAN GIVE ONE EXAMPLE OF HOW SOMEONE WHO THOUGHT THEY OWED QUITE A LOT OF MONEY AND WAS TRYING TO GET ON A PAYMENT PLAN, BUT THOUGHT IT WAS GOING TO BE IMPOSSIBLE TO GET ON A PAYMENT PLAN, QUALIFIED FOR A DEFERMENT.
THIS DEFERMENT MEANS THAT SOMEONE CAN WORK ON A PAYMENT PLAN, CAN WORK TO GET BACK ON GETTING THEIR PROPERTY TAXES TO WHERE THEY'RE SUPPOSED TO BE WHILE WE LOOK AT MAKING SURE THAT THEY'RE TAKING ADVANTAGE OF ALL THE POTENTIAL BENEFITS THAT THEY DO QUALIFY FOR.
IN THIS CASE, THIS PERSON WAS BEING RESTRICTED FROM QUALIFYING FOR THE UNDER ONE ROOF PROGRAM, WHICH WE WERE ABLE TO GET THROUGH BECAUSE WE WORKED WITH THE TAX ASSESSOR.
SO I WANT TO THANK ALBERT URESTI AS WELL.
I THINK HIS DEPARTMENT IS DOING A GREAT JOB OF HELPING PEOPLE WITH THESE DEFERMENTS.
SO, AGAIN, IT'S NOT ERASING THE DATE, BUT RATHER DEFERRING IT SO PEOPLE CAN GET CAUGHT UP.
SO IT'S -- AND IN THE CASE OF RISING PROPERTY TAXES OR THOSE FOLKS THAT FEEL THAT THEY'VE BEEN BEHIND FOR SO MANY YEARS AND CAN NEVER CATCH UP, A DEFERMENT MAY BE PART OF A GOOD STRATEGY TO GET THEM BACK ON TRACK.
YOU KNOW, I ALSO WANT TO TALK ABOUT THE 15,000 PARCELS THAT I BROUGHT UP AT OUR LAST
[01:10:01]
SESSION, AND, YOU KNOW, THAT'S 15,000 TOTAL, AND I WOULD ASK THAT CITY MANAGEMENT TAKE A LOOK AT OUR INVENTORY -- THIS IS AN EXAMPLE OF PROPERTY TAX RELIEF.LET'S TAKE A LOOK AT OUR INVENTORY, FIND OUT WHAT WE CAN -- WHAT WE CAN SELL, WHAT WE CAN REPOSITION AND GET BACK ON THE TAX ROLLS.
BECAUSE I THINK THAT WILL HELP PEOPLEMENT AND IF IT'S GOING TO TAKE SOME TIME, THEN LET'S GET STARTED.
AND I THINK THAT MOST OF ALL, YOU KNOW, I WANT TO GO BACK TO RENTERS BEING AFFECTED IN ALL THIS.
AND, YOU KNOW, I'M GOING TO USE THIS OCCASION TO ASK FOR MY COLLEAGUE'S SUPPORT AS I FILE A CONSIDERATION REQUEST TO CREATE A RENTERS COMMISSION, TO REPRESENT THAT 46% OF OUR COMMUNITY THAT DOES NOT HAVE MUCH REPRESENTATION WHEN IT COMES TO THESE KINDS OF ISSUES.
SO, YOU KNOW, I THINK THAT OVERALL THESE ARE THE KINDS OF THINGS THAT CAN BUILD TOWARDS A PROPER LOOK AT PROPERTY TAXES AND HOW THEY WORK, PROPERTY TAXES ARE TWO PARTS.
THEY'RE APPRAISALS AND THEY'RE TAX RATES.
AND WE CAN'T JUST SIMPLY TAKE A LOOK AT JUST THE APPRAISAL PROCESS, WE SHOULD BE LOOKING AT OUR TAX RATE, IF WE'RE GOING TO BE TALKING ABOUT PROPERTY TAXES.
WITH THAT, COUNCILMAN PERRY AND COURAGE, YOU'LL HAVE MAY SUPPORT TODAY.
>> MAYOR NIRENBERG: THANK YOU, COUNCILMAN TREVINO.
THERE IS A MOTION AND A SECOND FOR APPROVAL OF ITEM NUMBER ONE.
>> MAYOR NIRENBERG: MOTION CARRIES.
THAT'S ALL THE ITEMS WE HAVE ON OUR AGENDA TODAY.
WE ARE
* This transcript was compiled from uncorrected Closed Captioning.