* This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting. [00:00:58] OF THE CITY COUNCIL FOR JUNE 24TH, 2019. COUNCIL MEMBER TRAVINO HERE. COUNCIL MEMBER ANDREW SULLIVAN. HERE. COUNCIL MEMBER VERAN. HERE. COUNCIL MEMBER ROCHA GARCIA. HERE. COUNCIL MEMBER GONZALEZ. COUNCIL MEMBER CAVEO HDA HERE. COUNCIL MEMBER SANDOVAL. HERE. COUNCIL MEMBER GOLIATH PRESENT. COUNCIL MEMBER COURAGE PRESENT. COUNCIL MEMBER PERRY HERE. AND MAYOR NURENBERG HERE. MAYOR, WE DO HAVE A QUORUM. OKAY. UM, THANK YOU EVERYONE FOR ATTENDING OUR SPECIAL CITY COUNCIL SESSION. THE TIME IS 5:08 PM UM, WE DO NOT HAVE AN INVITATION SCHEDULED FOR TODAY. UM, BUT WE'RE GONNA GO AHEAD AND GO AHEAD. YES, SIR. ITEM NUMBER ONE. YEAH, LET, LET'S ROLL A TRANSLATION VIDEO REAL QUICK. OKAY. YES. MAYOR. ITEM NUMBER ONE IS ORDINANCE APPROVING A RESIDENCE HOMESTEAD EXEMPTION IN THE CITY FOR THIS TAX YEAR, BEGINNING JANUARY 1ST, 2019, IN AN AMOUNT EQUAL TO 0.01% OF THE APPRAISED VALUE OF THE RESIDENTS HOMESTEAD. OKAY, THANK YOU VERY MUCH. THAT'S THE ONLY ITEM WE HAVE SCHEDULED FOR TODAY, AND WE'LL START WITH OUR BRIEFING FROM BEN GELLE. UH, GOOD EVENING, UH, MAYOR AND COUNCIL MEMBERS. UM, FIRST I GOTTA 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 LIKE THE ONLY ITEM ON THE AGENDA. SO THIS IS A FIRST FOR ME. I DID WANT TO INTRODUCE JUST A COUPLE OF PEOPLE AND RECOGNIZE A COUPLE OF PEOPLE. ONE IS OUR DEPUTY CHIEF FINANCIAL OFFICER, UH, TROY ELLIOT, UM, WHO COULDN'T BE HERE TODAY, BUT DOES JUST A TREMENDOUS JOB RUNNING THE FINANCE DEPARTMENT. THESE GUYS DO A GREAT JOB OF MANAGING THE CITY FROM A FISCAL PERSPECTIVE. I GOT A COUPLE OF PEOPLE HERE IN THE AUDIENCE I WANT TO INTRODUCE, PARTICULARLY FOR THE NEW COUNCIL MEMBERS, MARGARET VIEGAS. MARGARET, IF YOU'D STAND UP. SHE'S OUR ASSISTANT DIRECTOR OF FINANCE. AND THEN TINA MARIA, WHO IS OUR ADMINISTRATOR, WHO DOES ALL OF THE TRUTHS AND TAXATION CALCULATIONS. ACTUALLY, THEY BOTH DO. SO THEY DID A TREMENDOUS AMOUNT OF WORK THIS LAST LEGISLATIVE SESSION ON PROPERTY TAXES OVERALL AND ON A NUMBER OF DIFFERENT BILLS. UH, GETTING INTO JUST A, SOME BACKGROUND ON THE POWERPOINT HERE, UH, DURING THE, THE POLICY, UH, GOAL SETTING SESSION LAST FRIDAY, COUNCIL DID ASK FOR AN ITEM TO BE PLACED ON THE AGENDA FOR CONSIDERATION OF A 0.01% JOURNAL HOMESTEAD EXEMPTION. AND WHAT THAT EQUATES TO IS A $5,000 EXEMPTION FOR HOMESTEADS. AGAIN, THE BACKGROUND IS THAT, UM, 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 GOTTA BE DONE AS A PERCENTAGE OF THE APPRAISED VALUE, AND IT CAN GO UP TO 20% OF THE APPRAISED VALUE. AND AGAIN, THE MINIMUM IS $5,000. UH, THE REASON YOU'RE HAVING THE SPECIAL COUNCIL MEETING TODAY IS THAT IN ORDER FOR THIS TO BECOME EFFECTIVE FOR OUR NEXT FISCAL YEAR, WE HAVE TO YOU ALL AS A BODY, HAVE TO TAKE ACTION BEFORE JULY 1ST SO THAT WE CAN NOTIFY THE STATE COMPTROLLER'S OFFICE AS WELL AS THE BEAR APPRAISAL DISTRICT. A LITTLE BIT OF BACKGROUND, AGAIN, CURRENTLY THE CITY PROVIDES TAX RELIEF. WE DO THAT THROUGH TWO, A COUPLE OF DIFFERENT EXEMPTIONS. THE CITY CURRENTLY OFFERS A $65,000 OVER 8 65 EXEMPTION AND A $12,500 DISABLED PERSON'S TAX EXEMPTION ALONG WITH THE TAX FREEZE. WHAT THAT MEANS, AND I'LL USE THE OVER 8 65 AS AN EXAMPLE, WHEN SOMEONE TURNS 8 65, A $65,000 [00:05:01] EXEMPTION IS APPLIED TO THE TAXABLE VALUE OF THE HOME. SO THE PROPERTY TAXES ACTUALLY GO DOWN THE CITY'S PORTION, AND THEN BECAUSE WE HAVE A TAX FREEZE IN PLACE, THAT DOLLAR VALUE IS FROZEN GOING FORWARD. SO IT DOESN'T MATTER WHAT THE VALUE OF THE HOME, IF IT INCREASES, IT DOESN'T MATTER THAT PROPERTY TAX BILL WILL STAY THE SAME GOING FORWARD. UH, IN TOTAL, THE CITY WILL FOREGO NEARLY $52 MILLION IN PROPERTY TAX, UH, REVENUE FROM THESE EXEMPTIONS AND THAT TAX FREEZE. JUST A COUPLE OF QUICK STATISTICS AGAIN, UH, IF YOU LOOK AT, WE'VE GOT ABOUT 473,000 TOTAL PARCELS ON THE PROPERTY TAX ROLL. UH, IT'S ABOUT A 50 50 SPLIT BETWEEN COMMERCIAL PROPERTIES AND RESIDENTIAL PROPERTIES. IN TERMS OF PARCELS, UH, IF YOU LOOK AT THOSE THAT HAVE, UH, UH, REACHED 8 65 AND, UH, HAVE A TAX FREEZE, IT'S ABOUT 96,000 WITH OR OVER 8 65 AND ABOUT 8,800 DISABLED PERSONS EXEMPTIONS. I'LL MENTION ON THE OVER 8 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 YEARS, 94% OF THOSE HAVE REACHED 8 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, UH, UH, UNIVERSITY HEALTH SYSTEM. ALAMO COLLEGES, THE COUNTY, THE CITY CURRENTLY DO NOT HAVE HOMESTEAD EXEMPTIONS. ALL THE ENTITIES OFFER THE OVER 8 65 EXEMPTION. UH, ALL OF THEM WITH EXCEPTION OF UNITED, UH, OR UNIVERSITY HEALTH SYSTEM OFFER THE DISABLED EXEMPTION, AND THEY ALL HAVE THE SENIOR TAX FREEZE, AGAIN, EXCEPT THE 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, UH, UH, 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, UH, 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 8 65 THERE, THERE'S NO TAX FREEZE IN PLACE. THOSE TAX BILLS WILL CONTINUE TO RISE. WHEREAS HERE, UH, THAT'S NOT THE CASE. THEY'RE FROZEN. SO THAT TOP DOLLAR BILL DOESN'T CHANGE. UH, 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 M AND 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 DISTRICTS. 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 34.60 CENTS FOR THE GENERAL FUND, AND 21 CENTS FOR THE DEBT SERVICE FUND FOR A TOTAL TAX RATE OF 55.83 CENTS IN 2019. THAT DEBT SERVICE FUND, UM, SUPPORTS OUR BOND PROGRAM AND OUR CAPITAL BUDGET. SO I'M GONNA TRANSITION A LITTLE BIT HERE FROM TALKING ABOUT WHERE, WHO WE HAVE BEEN HISTORICALLY, AND TALK A LITTLE BIT ABOUT WHAT HAS CHANGED DURING THIS LAST LEGISL LEGISLATION SESSION. UH, ONE OF THE BIG CHANGES, OF COURSE, WAS HB THREE, AND ONE OF THE QUESTIONS CAME UP AND WAS, WHAT WOULD BE THE IMPACT ON, UH, HOMEOWNERS IN TERMS OF SAVINGS WITH THE CHANGES ON SCHOOL FINANCE? THAT HAPPENED AS PART OF HB THREE. JEFF COYLE AND OUR INTERGOVERNMENT RELATIONS TEAM WORKED WITH SOME OF THE SCHOOL DISTRICTS TO GET SOME PROJECTIONS FROM THEM. WE SHOWED THOSE TO YOU LAST WEEK, UH, HERE ON THIS SLIDE. UH, SO WE TOOK THE THREE BIGGEST SCHOOL DISTRICTS HERE, SS A, SS D. SO FOR A, A HOME VALUED AT A HUNDRED THOUSAND DOLLARS, THEY WOULD SEE ANNUAL SAVINGS OF ABOUT A HUNDRED DOLLARS. NOW, S A I S D DID HAVE A VOTER APPROVED BOND PROGRAM THAT DOES HAVE, UH, SOME I N S OR DEBT SERVICE TAX RATE INCREASES BUILT IN IN THE FUTURE. SO SOME OF THAT SAVINGS WILL BE, UM, PICKED UP BY THAT INCREASE IN THE TAX RATE IN THE FUTURE. NORTHEAST. THE, UH, HOME VALUE THERE IS 233,000. THE ANNUAL SAVINGS IS 167,000 $167, AND THE NORTH SIDE $200,000 HOME, $140 IN ANNUAL SAVINGS. NOW, WE'VE TALKED A LITTLE BIT ABOUT, UM, THE PARADIGM SHIFT SHIFT THAT HAS HAPPENED FINANCIALLY FOR US, AND I WANTED TO GIVE YOU SOME ADDITIONAL CONTEXT ON THAT. UM, AS YOU THINK ABOUT FUTURE POLICY AS IT RELATES TO PROPERTY TAX RELIEF, BECAUSE THE CHANGES THAT HAPPEN IN THE LEGISLATURE ARE PRETTY SIGNIFICANT, WILL HAVE A PRETTY SIGNIFICANT IMPACT UPON THE CITY GOING FORWARD. SB TWO, OF COURSE, WAS THE PROPERTY TAX REFORM BILL THAT IMPACTED CITIES AND COUNTIES PRIMARILY. IT REDUCES OUR ROLLBACK RATE FROM 8% TO 3.5%, AND THEN WE HAVE THE ABILITY TO CARRY FORWARD UNUSED CAPACITY FROM YOURS WHERE WE'RE NOT AT THAT 3.5% CAP. I'M GONNA WALK YOU THROUGH A COUPLE OF EXAMPLES OF WHAT THAT LOOKS LIKE. UM, BUT IF YOU THINK ABOUT IT JUST FROM THE STANDPOINT IN TERMS OF WHERE WE WERE ABLE TO [00:10:01] CAPTURE REVENUE BEFORE WE WERE AT 8% ON HIGH GROWTH YEARS, THEY'VE NOT CUT THAT BY MORE THAN HALF. SO YOU'RE AT CAP NOW AT THREE POINT A PERCENT IN TERMS OF WHETHER THE, IF SSB TWO HAD BEEN IN PLACE FOR THE PAST 10 YEARS. UM, AND WITH THE CARRY FORWARD IN PLACE, WE DID THAT ANALYSIS. UH, YOU'VE SEEN THIS BEFORE. THE LOST REVENUE CUMULATIVELY TO THE CITY OVER THE PAST 10 YEARS WOULD'VE BEEN $81 MILLION. THE GENERAL FUND TODAY WOULD BE $37 MILLION SMALLER THAN IT IS, AND THE AVERAGE, UH, SAVINGS TO THE AVERAGE HOMESTEAD IN SAN ANTONIO WOULD'VE BEEN ABOUT $12 ANNUALLY. THIS IS THE CITY'S TAXABLE VALUATION GOING BACK TO 2010. AND SO WHEN WE LOOK AT SSB TWO, SB TWO FOCUSES ON WHAT WE CALL BASE VALUE GROWTH. IT, IT, IT, 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, IN A YEAR, AND YOU HAVE THE FLEXIBILITY AS A COUNCIL TO DO THAT. SB TWO NOW LOWERS THAT TO 3.5%. SO IF YOU LOOK AT THIS SLIDE FROM 2010 TO 2014, SB TWO 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, VERY SMALL. UH, 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 SEE, 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? UH, WHEN YOU LOOK AT THE TAX RATE, WE TALKED A LITTLE BIT ABOUT THIS LAST WEEK, BUT TRY SHOW A LITTLE BIT DIFFERENTLY HERE. THE R THE BLUE BAR, THE BLUE LINE IS WHAT WE ADOPTED. THAT'S THE CITY'S TOTAL ADOPTED TAX RATE. WHEN YOU APPLY SSB TWO BACK TO THE PRIOR DECADE, IT WOULD'VE, IT WOULD'VE REQUIRED A REDUCTION IN THE TAX RATE IN 2009. GOING BACK TO THIS SLIDE, UH, WELL ACTUALLY'S NOT 2009 IS ON HERE, BUT WE HAD BASE VALUE GROWTH OF I THINK SEVEN OR 8% IN 2009. WE'D HAVE HAD TO LOWER THE TAX RATE IN 2009. YOU THEN GET INTO THE RECESSIONARY YEARS. OUR PRACTICE HAD BEEN, WE HOLD THE TAX RATE THE SAME. YOU WOULD'VE HAD THE, THE COUNCIL AT THAT TIME WOULD'VE HAD THE FLEXIBILITY TO INCREASE THE TAX RATE. WE CHOSE NOT TO. OUR POLICY WAS MAINTAIN THE TAX RATE, EVEN THOUGH WE WERE TAKING IN, UH, 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 GONNA BE ABLE TO RECOVER AND CAPTURE SOME OF THAT TAX REVENUE BACK. UM, SO YOU CAN SEE THE TAX RATE STAYING FLAT FROM 2010 ALL THE WAY TO 2015. WE HAD, UH, 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 SSB TWO HAD BEEN IN PLACE SINCE 2016, THE TAX RATE WOULD'VE CONTINUED TO DROP. AND THAT'S BECAUSE YOU CAN SEE THE, 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, UM, THE DRAMATIC CHANGE IN OUR TAX RATE, UH, FROM WHERE WE, 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, YOU KNOW, ONE OF THE THINGS YOU HAVE TO CONSIDER IS DON'T THINK ABOUT IT FROM THE PERSPECTIVE OF WE HAVE WHERE WE HAVE BEEN HISTORICALLY. BECAUSE EVEN IF WE GET THAT KIND OF GROWTH, THE TAX RATE'S GONNA BE DIFFERENT. AND IT'LL BE, YOU KNOW, THESE CHANGES THAT I'M SHOWING ON THIS SLIDE THAT WOULDN'T NEC 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 C P S 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. UM, SO I SUSPECT THAT LOSS WOULD GET BIGGER. WE'RE PROJECTING FROM WHAT WE'VE SEEN FROM THE APPRAISAL DISTRICT, PROBABLY BASE VALUE GROWTH SOMEWHERE BETWEEN FOUR AND 4.5% FOR NEXT YEAR. IF SB TWO WERE IN PLACE RIGHT NOW, WE WOULD BE REDUCING THE TAX RATE AGAIN NEXT YEAR. AND THAT'S, AGAIN, BASED ON THAT FORMULA. SO THAT, TRYING TO GIVE YOU SOME PERSPECTIVE IN TERMS OF HOW DRAMATICALLY OUR FINANCIAL PICTURE LOOKS GOING FORWARD VERSUS WHAT IT HAS BEEN HISTORICALLY AND HOW WE'RE GONNA HAVE TO MANAGE THAT IN THE CONTEXT OF PRIORITIES AND EXPECTATIONS AS IT RELATES, UH, TO THE BUDGET. UM, AND THEN WHEN YOU GET TO THE HOMESTEAD, UH, [00:15:01] UH, EXEMPTION ITSELF, REMEMBER IT'S GOTTA BE BASED ON A PERCENTAGE TODAY, WHICH YOU HAVE IS AN ITEM THAT WOULD DO THE, UH, 0.01%, WHICH WOULD GET TO A $5,000 EXEMPTION AS YOU GO UP ON THE EXEMPTION. UM, AND WE TRIED TO GET, UH, AN OPTION WHERE WE COULD DO FIXED DOLLAR AMOUNTS, UH, PASSED AT THE LEGISLATURE THAT DID NOT, UM, GET ANY TRACTION. SO WE'RE LEFT WITH THE PERCENTAGES. SO WHEN YOU THINK ABOUT PERCENTAGES AS IT MOVES UP ON THE SCALE, UM, TO GET, FOR SOMEBODY THAT'S GOT A HUNDRED THOUSAND DOLLARS HOME TO GET SOMETHING GREATER THAN A $5,000 EXEMPTION, WE'VE GOTTA BE OFFERING MORE THAN A 5% HOMESTEAD. VERSUS IF I'M AT A $300,000 HOME AND I GET A 5% EX EXEMPTION, I'M AT 15 THOU THOUSAND DOLLARS ON THE EXEMPTION. 'CAUSE IT'S A PERCENTAGE BASED, UH, 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 TWO WILL CHANGE OUR FINANCIAL PICTURE GOING FORWARD. AND IT IS A FORM OF PROPERTY TAX RELIEF. YOU KNOW, 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, UH, PREVIOUS LAW OR CURRENT LAW VERSUS WHERE, WHERE WE WILL BE UNDER SB TWO. SO YOU CAN TAKE THAT INTO CONSIDERATION WHEN YOU THINK ABOUT PROPERTY TAX RELIEF. THE LAST SLIDE JUST SUMMARIZES AGAIN, THE ITEM THAT YOU'VE GOT BEFORE YOU TODAY IS A 0.01% JOURNAL HOMESTEAD EXEMPTION THAT WOULD RESULT IN A $5,000 EXEMPTION FOR, UH, HOMESTEADS. IT'S EFFECTIVE JANUARY 1ST, 2019, WHICH WOULD BE OUR FISCAL YEAR 2020. WE ESTIMATE THE HOMEOWNER SAVINGS TO BE ABOUT $28 ANNUALLY. UH, WE, WE HAVE PROJECTED THE GENERAL FUND REVENUE LOSS TO BE ABOUT $3.6 MILLION. AND THEN THE DEBT SERVICE FUND REVENUE LOSS IS ABOUT $2.2 MILLION. WHAT THAT MEANS IN TERMS OF DEBT SERVICE CAPACITY. 'CAUSE REMEMBER WE MANAGED TO THE 21 CENT DEBT SERVICE TAX RATE. IS THAT WHAT THAT $2.2 MILLION LOSS GOING FORWARD? IT'S ABOUT $33 MILLION IN DEBT SERVICE CAPACITY. SO WITH THAT MAYOR, THAT CONCLUDES MY, UH, PRESENTATION AND I'D BE HAPPY TO ANSWER ANY QUESTIONS. GREAT, THANK YOU VERY MUCH, BEN. UH, WE DO HAVE, UH, ONE CITIZEN SIGNED UP TO SPEAK ON THIS ITEM. MARIO BRAVO. YEAH, GOOD JOB. HELLO, COUNSEL. UM, SO I KNOW A LOT OF PEOPLE HEAR ME SPEAK ON BEHALF OF ENVIRONMENTAL DEFENSE FUND. I'M NOT HERE TO SPEAK ON BEHALF OF THEM TODAY. UM, I DO, UH, SERVE AS THE NEW CHAIR OF THE POLITICAL COMMITTEE FOR MOVE TEXAS. AND, UH, I HAVE HAD CONVERSATIONS WITH THEM TODAY. I KNOW THERE'S A LOT OF CONCERN IN THE COMMUNITY RIGHT NOW. UH, YOU KNOW, MOVE TEXAS. THEY, UM, THEY, THEY REPRESENT A LOT OF YOUNG PEOPLE AND A LOT OF YOUNG PEOPLE TEND TO BE VOTERS. I I MEAN, A LOT OF YOUNG PEOPLE TEND TO BE RENTERS. AND SO THERE'S CONCERN ABOUT HOW THIS AFFECTS RENTERS, RIGHT? BECAUSE YOU, UM, WHEN YOU REDUCE, WHEN YOU HAVE A HOMESTEAD EXEMPTION, UH, IT'S NOT GONNA APPLY TO THE RENTERS AND, BUT THEY ARE GONNA LOSE SERVICES, RIGHT? WE'RE GONNA LOSE $6 MILLION OF CITY SERVICES, SO IT WILL AFFECT THEM. AND SO THERE'S SOME CONCERN RIGHT THERE. UM, THERE'S ALSO CONCERN THAT WE ARE THE MOST ECONOMICALLY SEGREGATED CITY IN THE UNITED STATES. AND SO WHAT IS THIS GONNA DO? WILL THIS EXACERBATE, UM, THAT SITUATION, RIGHT? IF WE'RE HELPING THE HAVES, THE PEOPLE WHO OWN HOMES AND NOT HELPING THE HAVE NOTS, THE PEOPLE WHO ARE RENTING AND POSSIBLY LIVING PAYCHECK TO PAYCHECK. SO THERE'S SOME CONCERN AROUND THAT. I, AND I KNOW THIS IS HAPPENING VERY HAPPENING VERY QUICKLY. I ALSO UNDERSTAND THAT THE COMMUNITY WANTS, UH, 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, UM, 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, UM, THAT THEY CAN TA, UH, 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 AND TO CHALLENGE THAT AND GET A FAIR TAX VALUATION, THAT COULD BE REALLY HELPFUL. THAT'S WHAT THEY'RE GONNA BE LOCKED IN AT FOR THE REST OF THEIR LIVES. THEY COULD BE, THEY COULD LIVE ANOTHER 20, 30 YEARS, THEY COULD BE ON A FIXED INCOME. AND SO IF WE COULD HELP THEM, MAYBE, MAYBE THEY LIVE IN AN AREA THAT'S BEING GENTRIFIED AND THEIR, THEIR, UH, PROPERTY TAX, THEIR PROPERTY VALUE HAS BEEN SPI, YOU KNOW, SKYROCKETING. IF WE COULD HELP CUT THAT BACK A LITTLE BIT, THAT'S SOMETHING THAT COULD HELP THEM FOR THE REST OF THEIR LIVES. AND [00:20:01] SO I'D BE HAPPY TO TALK TO ANY OF YOU ALL ABOUT DOING THAT, UM, FINDING SOME, SOME TAX RELIEF FOR THAT COMMUNITY. THANK YOU VERY MUCH. THANK YOU, MR. BRAVO. UM, ALSO FOR THE RECORD, UM, VOL ENTER IN COMMENTS BY BRETT FINLEY, UH, SENT IN GOVERNMENT AFFAIRS OF, UH, SAN ANTONIO BOARD OF REALTORS IN SUPPORT OF OUR ACTION TODAY. UM, THAT'S EVERYONE WHO SIGNED UP TO SPEAK, SO I'LL GO AHEAD AND GET STARTED. UH, BEN, THANK YOU VERY MUCH FOR THE PRESENTATION. UH, I DON'T REALLY HAVE ANY QUESTIONS FOR YOU. UM, I DID WANT TO ACKNOWLEDGE, UH, MR. BRAVO, YOUR COMMENTS, UH, WHICH ARE, ARE TAKEN TO HEART. UH, I THINK THAT WE DO HAVE TO BE COGNIZANT ABOUT HOW EQUITABLE OUR TAX RELIEF IS, WHICH IS WHY WE'LL SUPPORT, UM, THE MOTION OR, OR THE, THE ITEM TODAY. UH, PLEASE KNOW, THIS IS JUST A START. UH, WE HAVE ENGAGED WITH THE APPRAISAL DISTRICT REVIEW PROCESS INITIATED BY COUNCILMAN PIAS. UH, 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 GONNA CONTINUE TO WORK IN AUSTIN AT THE LEGISLATURE. UH, WE DIDN'T GO AS FAR AS WE COULD HAVE WITH REGARD TO, UH, PROVIDING ADDITIONAL TOOLS, TARGETED TOOLS FOR, UH, FOR FOLKS TO GET PROPERTY TAX RELIEF AND, AND TAX RELIEF IN GENERAL. UH, BUT WE DO KNOW EFFORTS BY OUR FORMER COLLEAGUE, FOR INSTANCE, COUNCILMAN BERNAL, UH, AT LEAST GOT A HEARING AND, AND WILL CONTINUE FORWARD, UH, IN YEARS TO COME. I WANNA THANK MY 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. UH, WE COVERED A LOT OF GROUND AND DISCUSSED MANY IDEAS AMONG THEM. THE MOST SIGNIFICANT TOPICS, UH, WAS THE HOMESTEAD EXEMPTION. AND I SPENT A LOT OF TIME OVER THE WEEKEND STUDYING THAT PROPOSAL AND REFLECTING ON THE IMPLICATIONS OF IT. AND SO I WANNA MAKE CLEAR TODAY THAT I SUPPORT ENACTING A $5,000 HOMESTEAD 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 WANNA 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 WANNA THANK THEM AGAIN FOR THE GREAT DISCUSSION THAT WE HAD THAT SHOWED, UH, THE, UH, COLLEGIALITY OF THIS COUNCIL TO, TO OVERCOME, UH, SOME DIFFERENCES ON DIFFICULT ISSUES AND ACHIEVE A CONSENSUS. SO THANK YOU VERY MUCH TO MY COLLEAGUES ON THAT. REGARDLESS OF WHEN AN EXEMPTION IS ENACTED, WE WILL HEAR CONCERNS THAT THE TIMING IS WRONG AND WORRIES THAT WE CAN'T AFFORD IT. NOW, THE LOOMING IMPACT OF REVENUE CAPS IDENTIFIED BY BEN AND OTHERS APPROVED BY STATE LAWMAKERS IS THE LATEST COMPLICATION. BUT I BELIEVE THAT, 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 SHOE LACES. I'LL IDENTIFY SPECIFIC BUDGET REDUCTIONS TO PAY FOR THIS TAX RELIEF WITHOUT CUTTING PUBLIC SAFETY OR OTHER ESSENTIAL SERVICES. AND I LOOK FORWARD TO HEARING MY COLLEAGUES' IDEAS FOR REFINING EFFICIENCIES AS WELL. THESE MODEST BUDGET REDUCTIONS WILL NOT DERAIL OUR AGENDA OF 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 AT 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. AND I'LL CLOSE BY NOTING THAT WE ARE AWAITING THE RESULTS OF THE BEXAR COUNTY APPRAISAL DISTRICT STUDY THAT CITY COUNCIL APPROVED EARLIER THIS YEAR, AND HOPING OF FINDING BEST PRACTICES AND METHODS THAT WILL ALSO HELP LOWER TAX BILLS. SO THANK YOU VERY MUCH. AND I DO WANT TO SAY AGAIN, THANK YOU TO MY COLLEAGUES FOR THE GREAT DISCUSSION, AND CERTAINLY THANK YOU TO MY COLLEAGUES COUNCILMAN PERRY AND, AND COUNCILMAN CURD FOR THE ORIGINATING C C R COUNCILMAN PERRY. THANK YOU, SIR. AND, UM, YOU KNOW, I'M REALLY COUNTING ON THIS VOTE AND I'M REALLY COUNTING ON MY COLLEAGUES AND, AND THE MAYOR TO SUPPORT THIS, UM, OVER THE LAST TWO ELECTION CYCLES. UM, 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 TAXES THAT PEOPLE NEED SOME PROPERTY TAX [00:25:01] RELIEF. AND, UM, UH, I HAVE WANTED TO DO THIS FOR THE LAST COUPLE OF YEARS, AND THIS IS SOMETHING THAT, UM, A A LOT OF, I, I KNOW THERE'S A LOT OF, UH, HAND WRINGING AND, AND, UH, UH, WORRY THAT WE'RE GOING TO, UH, WRECK SOMETHING OR BREAK SOMETHING. I DON'T THINK THAT WILL HAPPEN. I THINK THE, THE, THE RESOURCES ARE AVAILABLE FOR THIS, AND IT'S SOMETHING THAT PEOPLE HAVE BEEN ASKING FOR THIS TOGETHER WITH THE, UH, HOUSE BILL, I THINK IT WAS THREE HOUSE BILL THREE, ABOUT THE, UM, 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 BE THE LAST STEP FOR SAN ANTONIO AND THE PROGRESSION OF OFFERING A HOMESTEAD EXEMPTION. THIS IS, THIS IS ONLY THE FIRST STEP 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'T AFFORD IT BASED ON THE, UH, 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. UM, 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. UM, IT WAS TALKED ABOUT THE, THE, UM, OVER 65 FREEZE AND THE DISABILITY, UM, 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, THEIR PROPERTY VALUES AND REDUCING THEIR TAXES, SO THEY CAN LOOK FORWARD TO THIS EXEMPTION. ALSO, UH, I, 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, AND I'M LOOKING FORWARD TO ADDITIONAL INCREASES IN THIS EXEMPTION OVER TIME FOR OUR HOMEOWNERS HERE IN SAN ANTONIO. I WANT TO THANK MY, UH, COLLEAGUES HERE AND THE MAYOR, THOSE THAT ARE SUPPORTING THIS, AND I LOOK FORWARD TO WORKING OUT THE DETAILS AND, AND MOVING, MOVING THIS ITEM FORWARD IN OUR BUDGET PROCESS. WITH THAT, SIR, I MOVE TO APPROVE ITEM NUMBER ONE, OR I WAS GONNA READ THIS, I'M GONNA READ IT. ORDINANCE APPROVING A RESIDENCE HOMESTEAD EXEMPTION IN THE CITY FOR THE TAX YEAR, BEGINNING JANUARY 1ST, 2019, IN AN AMOUNT EQUAL TO 0.01% OF THE APPRAISED VALUE OF THE RESIDENT'S HOMESTEAD. NOW, NOW, SECOND. ALRIGHT, THANK YOU. COUNCILMAN PERRY. COUNCILMAN COURAGE. THANK YOU, COUNCILMAN. THAT WAS VERY DRAMATIC. UH, BUT I DO THANK COUNCILMAN PERRY, UH, REALLY FOR, UH, STEPPING UP, UH, IN HIS FIRST TERM, UH, SAYING THIS IS SOMETHING WE NEEDED. AND I RECOGNIZE THAT I THINK MANY OF US DID, UH, A COUPLE OF YEARS AGO, BUT WE WEREN'T SURE IF WE COULD FIND A WAY TO GET THERE. THERE WERE MANY OTHER THINGS, UH, THAT WE HAD TO CONSIDER. AND I THINK IT, IT'S NOW A TIME WHEN THERE IS PRETTY MUCH A, A STRONG SENTIMENT ON THE COUNCIL THAT SOMETHING NEEDS TO BE DONE BY THE, UH, ABOUT THIS. I, I HAVE SOMETHING I'D LIKE TO PUT UP ON THE BOARD, UM, AND IT JUST, HOPEFULLY THEY CAN SHOW IT UP HERE. WE DID A SURVEY IN DISTRICT NINE, AND WE SAY, WHAT IS DISTRICT NINE SAYING ABOUT A HOMESTEAD TAX EXEMPTION? AND, UH, IT LOOKS LIKE IT MAY NOT BE UP THERE, BUT LET ME TELL YOU, WE, WE EXAMINED, UH, SIX DIFFERENT ZIP CODES. UH, WE TALKED TO MANY, MANY PEOPLE ABOUT THIS, UH, AND WE HAD 85% OF THE RESIDENTS WHO WERE IN SUPPORT OF THIS TAX EXEMPTION. PEOPLE WERE SAYING THINGS LIKE, IT'LL [00:30:01] PUT MORE MONEY IN MY POCKET. UH, THANK YOU FOR YOUR SUPPORT IN GIVING CITIZENS BETTER PROPERTY RELIEF. JUST DO IT. TAXES IN GENERAL ARE TOO HIGH. WE ARE BEING TAXED OUT OF OUR HOMES ENOUGH. ANYTHING TO HELP WITH TAXES IN THIS DISTRICT, DO IT QUICKLY. I REALLY NEED TAX RELIEF. HOMEOWNERS NEED A BREAK, AND THE RISE IN WAGES DID 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, UH, I'M REALLY PLEASED THAT THIS COUNCIL IS MOVING TO ADOPT THIS ORDINANCE, TO CREATE THIS HOMESTEAD EXEMPTION. UH, 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. THANK YOU, MAYOR. THANK YOU. COUNCILMAN CUR, COUNCILWOMAN GONZALEZ. UH, THANK YOU MAYOR. AND TO MY COLLEAGUES, COUNCILMAN PERRY. UH, WE'VE HAD LOTS OF CONVERSATIONS ABOUT THIS ISSUE, AND I KNOW THAT IT WAS, UH, IMPORTANT FOR, FOR HIM AND, AND MANY OF HIS COMMUNITY MEMBERS. AND, AND IT'S IMPORTANT FOR MINE TOO. UM, 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. UH, WE JUST OPENED ALMANOR PARK POOL AND IT'S FABULOUS. UH, I INVITE EVERYBODY TO COME AND ATTEND. I'VE BEEN THERE NOW, UM, MULTIPLE TIMES SINCE IT OPENED LAST WEEKEND. UH, BUT THERE'S STILL THINGS WE NEED. WE STILL NEED MORE SHADE. WE NEED MORE PUBLIC, UH, MORE SEEDING. WE NEED MORE BARBECUE PITS. WE NEED MORE SHADE. UH, 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, UM, THAT THE CITY'S FINALLY PROVIDING. AND THAT PEOPLE IN, IN MY NEIGHBORHOODS ARE FINALLY SEEING. UM, AN EQUITY BUDGET, EVEN FOR JUST TWO YEARS HAS BEEN REALLY TRANSFORMATIVE FOR A COMMUNITY LIKE MINE. AND SO, WHILE I, I, I WILL SUPPORT THE, THE, UH, AMENDMENT OR BEFORE US TODAY, UH, BECAUSE IT IS ONE OF THE THINGS THAT PEOPLE TALK ABOUT THE MOST. AND I HAVE TO SAY, UH, WHEN I GO OUT IN, IN MY COMMUNITY AND THEY SAY, WELL, WHAT HAVE YOU DONE? AND I SAY, I CAN GO ON AND ON ABOUT ALL THE THINGS I'VE DONE. WE'VE DONE LIGHTING, WE DID THE EQUITY BUDGET, WE'VE DONE OUR PARKS, WE'VE DONE ALL THESE THINGS. AND THEY'LL SAY, BUT WHAT DID YOU DO FOR ME? AND SO THEY DON'T CARE, UH, 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 WANNA 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, UH, SOME OF THOSE QUESTIONS. UM, WE DID THAT AND IN DISTRICT FIVE, 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%. UH, BUT MOST OF OUR HOMES ARE, UM, ARE OLDER AND QUALIFY UNDER THE EITHER 65 EXEMPTION OR THE $65,000 EXEMPTION, UH, AND FREEZES. AND I DID, UH, YOU KNOW, WHEN I TALKED TO MY CONSTITUENTS, 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, UM, PROGRAM, UH, AND, YOU KNOW, TO MAKE SURE THAT SHE WAS, HAD HER TAX EXEMPTION. AND I SAID, YOU MUST BE ELIGIBLE FOR YOUR TAX EXEMPTION. YOU MUST BE OVER 65. AND SHE SAID, I'M 52. I SAID, ALL RIGHT, WELL, YOU'LL BE ELIGIBLE NOW FOR THIS ONE, UH, SINCE IT'S AVAIL AVAILABLE TO EVERY HOMEOWNER. BUT I DO ALSO THINK IT'S IMPORTANT TO, UH, TO RECOGNIZE THAT IF PEOPLE, EVEN WITH THE EXEMPTIONS, 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. UM, NOBODY BELIEVES THAT PEOPLE SHOULD BE EVICTED OR, UM, NOT TAKE THEIR MEDICATION. UM, IF THEY ARE IN A CERTAIN CIRCUMSTANCE WHERE THEY CANNOT AFFORD TO DO SO, THEY CAN HAVE THEIR, THAT EXEMPTION, UH, REMOVED, OR RATHER, THEY WILL, THEY CAN APPLY FOR THAT EXEMPTION AND EVENTUALLY, UH, THEIR HEIRS WILL HAVE TO PAY. BUT IF THEY CANNOT, UM, AND THEY CAN PROVE IT, THEN UH, [00:35:01] THEY DON'T HAVE TO PAY AT ALL. SO, PLEASE, UM, THE SECOND ROUND IS TO MAKE SURE THAT EVERYBODY KNOWS THAT THIS IS AVAILABLE TO THEM. AND, UM, I'LL, I'LL SUPPORT TODAY'S MOTION. THANK YOU. COUNCILMAN GONZALEZ. COUNCILMAN GRO. THANK YOU MAYOR. UH, BEN, I HAVE SOME QUESTIONS FOR YOU. YOU MENTIONED, UH, AUSTIN HAD A HOMESTEAD EXEMPTION. CAN YOU TELL ME WHAT THEIR GENERAL HOMESTEAD EXEMPTION IS? YES, MA'AM. LEMME GRAB THAT REAL QUICK. OKAY. WE'RE LOOKING AT A 0.01%. WHAT IS AUSTIN'S? AUSTIN OFFERS A 10% HOMESTEAD EXEMPTION. OKAY. UM, AND SO YOU MENTIONED THAT $7 MILLION LESS BECAUSE OF TELECOM, CORRECT? I'M SORRY TO HEAR THE FIRST, THE $7 MILLION LESS IN OUR BUDGET BECAUSE OF THE, THE TELECOM. WE'RE NOT GETTING THAT RIGHT OF WAY FEES ANYMORE. THAT'S CORRECT. CORRECT. AND THEN YOU MENTIONED OUR C P S REVENUE IS, IS DOWN, UM, 11, CURRENTLY DOWN 11 MILLION THROUGH MAY. RIGHT. AND WE EXPECT THAT TO BE FURTHER DOWN IN THE MONTH OF JUNE. SO, AND THEN, UM, AN ADDITIONAL FOR HERE, WE'D BE, UM, FOREGOING 3.6 MILLION. THAT'S CORRECT. AND THEN HOW IS OUR SALES TAX DOING RIGHT NOW? IT IS UP, UH, IT'S AT BUDGET. IT'S AT BUDGET, IT'S FORECAST. SO, SO WHAT I'M TRYING TO UNDERSTAND RIGHT NOW, AND SOME OF THE QUESTIONS THAT I WANTED ANSWERS TO IS OUR BUDGET CURRENT. OUR BUDGET FOR F Y 2019 WAS TWO, WELL TOTAL 2.8 BILLION. CORRECT. TOTAL ALL FUNDS. TOTAL ALL FUNDS. SO GIVE ME GENERAL FUND, AGAIN, JUST GENERAL FUND , 1.2 BILLION, SO 1.2 BILLION, BUT IF WE, BUT WE'RE OBVIOUSLY NOT GONNA START OFF THAT WAY. I, OBVIOUSLY ANYMORE BECAUSE OF THIS 7 MILLION LESS, 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 HOME, IF THIS HOMESTEAD EXEMPTION IS TAKEN INTO ACCOUNT. SO AS YOU RECALL, WHEN WE DID THE FORECAST PRESENTATIONS PRIOR TO CONSIDERING POLICY ISSUES, WE WERE PROJECTING AN ENDING BALANCE IN 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. RIGHT. OKAY. UM, AND SO I AM, I'M, I'M UNDERSTANDING, UM, EVERYTHING HERE, AND I'M TRYING TO LOOK AT THE NUMBERS AND KNOW THAT YOU'RE, YOU'RE GOING TO HAVE AN EVEN BIGGER TASK AHEAD OF YOU THIS JULY. AS YOU MOVE FORWARD AFTER THIS VOTE, UM, YOU'RE GONNA HAVE AN EVEN BIGGER TASK. CONGRATULATIONS, ERIC AND TEAM, UM, BECAUSE THIS IS GOING TO TO BE SOMETHING THAT YOU HAVEN'T SEEN IN A VERY LONG TIME, IF EVER, UM, IN OVER A DECADE. SO ONE OF MY, UM, MY THOUGHTS IS ALONG THE LINES OF WE DO, I'M GLAD WE ARE GOING THROUGH THIS AUDITING PROCESS WITH, UM, WITH THE, UH, THE APPRAISAL DISTRICT, BUT I JUST, SIMILARLY MAYOR LIKE WE DID WITH THE INDEPENDENT SCHOOL DISTRICTS FOR I G R IN THE NEXT LEDGE SESSION, WE HAVE TO GET A GROUP OF STAKEHOLDERS AND RESIDENTS TOGETHER, SIT AT THE TABLE TOGETHER AND COME AND WORK IN, UM, UNISON, SPEAK ON THE SAME SHEET OF MUSIC, AND GO UP AND FIGURE OUT THIS METHODOLOGY. WE HAVE TO DO THIS TOGETHER, UM, FOR OUR STATE LEGEND, BRING OUR, OUR MEMBERS TOGETHER, AND, UH, UM, I'LL BE WHOLEHEARTEDLY SUPPORTING AND PARTICIPATING IN THAT. YOU KNOW, AND I THINK AS MENTIONED, UM, YOU'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 SET EXEMPTION. SO IF THERE'S ANY PARTNERSHIPS THAT WE CAN DO, EVEN WITH A A R P, EVEN THOUGH YOU GET YOUR CARD, I HEAR, I DON'T KNOW, YOU GET YOUR CARD WHEN YOU'RE 50, UM, THAT WE ALREADY START PUTTING IT IN THE THOUGHT PROCESS FOR THE 65 AND OVER TAX FREEZE, ET CETERA. UM, AND I ALSO WANTED, [00:40:01] ERIC, 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 SHOW, MAKE SURE THAT WE'RE TAKING CARE OF OUR OWN WITHIN OUR ORGANIZATION IF WE'RE NOT DOING THAT ALREADY. UM, AND THEN FINALLY, I, TWO, TWO OTHER POINTS THAT HAVE BEEN MADE. THE GROWTH IN DISTRICT THREE 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, UM, 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, UM, BROOKS AND ROOSEVELT AND FOUR 10 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, UM, FINANCIAL, THIS WEALTH, THIS FINANCIAL WEALTH THAT IS VERY GREATLY NEEDED IN ALL PARTS OF SAN ANTONIO, PARTICULARLY IN THE SOUTHERN SECTOR OF SAN ANTONIO, BUILDING UP THAT WEALTH. AND I THINK THIS IS GOING TO HELP, UH, BUILD THAT. SO, UM, I WANNA THANK ALL MY COUNCIL COLLEAGUES FOR THEIR, UH, THEIR CONVERSATIONS, THEIR, UM, WALKING ME THROUGH THINGS AND SHARING ME, SHARING WITH ME THEIR CONCERNS. I WANNA THANK THE RESIDENTS TOO BECAUSE ALL OF OUR RESIDENTS WHO'VE BEEN VERY VOCAL ABOUT WHAT IS HAPPENING HERE IN THIS, IN THIS CITY WITH OUR RISING, UM, APPRAISALS. AND MAYOR, I KNOW I'M READY TO WORK ON THIS, WHAT WE NEED TO DO AT THE STATE LEVEL. THANK YOU. CAN I JUST ADD ONE COMMENT YOU MENTIONED ON THE, THE, UH, OVER 65 EXEMPTION. COUNCILMAN VINNO MAY MENTION THIS AS WELL, BUT THE BAY APPRAISAL DISTRICT, I THINK HE MENTIONED THAT BSES IS DOING AN AUDIT YEAH. OF EXEMPTIONS. SO I THINK THAT'S SOMETHING THEY'LL BE WORKING ON. WE CAN CERTAINLY HELP COORDINATE WITH THAT MM-HMM. SO THAT WE CAN IDENTIFY THOSE THAT MAY BE 65 ROLLS OR THAT AREN'T TAKING ADVANTAGE OF THAT EXEMPTION. YEAH. UH, AND THEN JUST ONE OTHER COMMENT. UM, CERTAINLY I UNDERSTAND THE NEED TO DO PROPERTY TAX RELIEF AND AS WE GO FORWARD AND YOU THINK ABOUT, UH, FROM A POLICY PERSPECTIVE, HOW WE PRIORITIZE WHEN YOU LOOK BACK AT THAT LAST FIVE YEARS, HAD, HAS B TWO BEEN IN PLACE? YOU KNOW, 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 TWO BEEN IN PLACE FOR THE PAST FIVE YEARS, WE WOULD'VE MADE DIFFERENT DECISIONS ALONG THE WAY. BUT I THINK IT JUST ILLUSTRATES THAT, THAT IT'S, IT'S JUST GONNA BE A LOT MORE DIFFICULT TO BALANCE THINGS LIKE PROPERTY TAX RELIEF, YOUR PRIORITIES, THE PROGRAMS YOU WANT TO INITIATE, THE THINGS YOU WANNA DO IN YOUR COMM IN IN OUR COMMUNITIES. IT'S GONNA BE A LOT MORE CHALLENGING. AND THERE'S CERTAINLY GONNA HAVE TO BE A LOT MORE EMPHASIS ON THE PRIORITIZATION PART COME GOING FORWARD BECAUSE OUR REVENUE PICTURE WILL NOT LOOK LIKE IT HAS LOOKED HISTORICALLY BECAUSE OF SSB TWO. I'M GLAD YOU KEPT TALKING 'CAUSE ANOTHER QUESTION CAME TO MIND. UM, SO IN LOOKING AT THIS, DO YOU SEE, DO YOU, UM, ANTICIPATE THIS WHEN YOU GO UP TO OUR RATING AGENCIES IN, UH, WHEN YOU GO UP TO OUR RADIO AGENCIES, HOW WILL THIS, WILL IT NEGATIVELY OR NOT HAVE AN IMPACT? OUR, OUR DECISION TODAY? I THINK CERTAINLY WHEN WE'RE MEETING WITH THEM THIS SUMMER, WE WILL HAVE A LOT OF CONVERSATION ABOUT SSB TWO AND ITS IMPACT UPON, UH, THE ORGANIZATION GOING FORWARD. I THINK A BIG PART OF THE, THAT WILL HELP IN THAT CONVERSATION IS THE FINANCIAL POLICY CONVERSATION WE HAD LAST, UH, FRIDAY. SURE. WHERE YOU ALL, UM, BUT WHAT ABOUT THIS, THIS ENACTING A LOCAL HOMESTEAD EXEMPTION? I THINK IT'S A LITTLE BIT OF A TOUGH CONVERSATION FROM THE STANDPOINT THAT, THAT WE ARE DOWN $11 MILLION IN C P S. WE DO HAVE UNCERTAINTY WITH THE FIRE CONTRACT OUT THERE. UM, WE'VE GOT SB TWO IN PLACE NOW GOING FORWARD, BUT I THINK IN TERMS OF, OF THIS PARTICULAR, UH, HOMESTEAD EXEMPTION, I THINK WE CAN POINT TO THE FACT THAT IT'S A $3 MILLION IMPACT. IT'S, IT'S SOMETHING WE'RE GONNA HAVE TO MANAGE THROUGH THIS YEAR'S BUDGET PROCESS. WE'RE GONNA HAVE TO ADJUST TO THAT. I THINK WE CAN DO THAT. UM, SO I THINK THAT'S PART OF THE CONVERSATION WE'LL HAVE WITH THEM. BUT OUR, OUR POLICIES THAT WE WILL HAVE ARE STILL GOING TO BE SET IN ORDER TO GIVE US SOME STABILITY IN THE FUTURE THAT THEY'LL BE LOOKING AT. YES. THAT'S THE GOAL IS THAT WHEN WE, WHEN WE GO FORWARD, ONE OF THE BIG ONES IS THAT WHEN I SHOWED THAT SLIDE THAT TALKED ABOUT WHEN WE WERE IN A, UM, [00:45:01] RECESSIONARY PERIOD AND COMING OUT AND YOU'RE NOT AT 3.5%, AND OBVIOUSLY I THINK THAT'S GONNA BE THE, THE CHALLENGES. YOU DON'T WANT TO INCREASE THE TAX RATE DURING THE RECESSION, BUT IN THOSE YEARS WHEN YOU COME OUT AND YOU'VE GOT SOME ROOM TO MOVE, THAT'S WHEN WE WANNA MOVE A LITTLE BIT, I THINK, OKAY, THAT ISN'T GONNA MAKE UP FOR THE LOSS UNDER SSB TWO, BUT IT CAN CERTAINLY HELP PUT US IN A BETTER POSITION FINANCIALLY. AND IT'S A BALANCING ACT. I MEAN, WE'RE GONNA, WE'RE GOING TO UPDATE YOU EVERY YEAR ON WHAT THE DIFFERENCE IS RELATED TO SB TWO, 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'LL BE PART OF THAT BALANCING ACT THAT WE'LL GO THROUGH EVERY YEAR. UM, I THINK CERTAINLY THIS BUDGET PROCESS IS GONNA BE A TOUGH ONE. I THINK IT'S GONNA BE ONE OF THE MORE CHALLENGING ONES. SORRY ERIC, THAT WE'VE HAD IN A WHILE. UM, BUT I THINK WE'LL GET THROUGH IT AND, AND I THINK, UH, I THINK WE CAN MANAGE THIS, THIS WELL. I THINK Y'ALL ARE THE RIGHT TEAM TO DO IT, SO THANK YOU. THANK YOU. COUNCILWOMAN GRO, COUNCILWOMAN, ANDREW SULLIVAN, THANK YOU FOR YOUR PRESENTATION. I'M GLAD THAT YOU WERE ABLE TO AT LEAST BREAK DOWN HOW MANY TOTAL PARCELS WE ACTUALLY HAVE. UM, DO YOU KNOW AN ESTIMATED TIMEFRAME ON GETTING A NUMBER BACK TO US ON HOW MUCH THAT WILL GENERATE TO ACTUALLY OFFSET WHAT WE'LL BE LOSING, UM, AS WE IMPLEMENT THE HOMESTEAD EXEMPTION? UM, FOR MY COMMUNITY, I KNOW THAT IS ONE OF THE LARGEST THINGS THAT WE HAVE IS THE DISPLACEMENT OF FAMILIES 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, UM, IMPLEMENT THE 3.5% THAT WILL ACTUALLY BE LOSING AS WELL IN PROPERTY TAXES. AND JUST THANK YOU SO MUCH. UM, COUNCILMAN PERRY AND COUNCILMAN COURAGE, BECAUSE THIS WAS TRULY ONE OF THE THINGS WHEN I WAS ON THAT 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 UPFRONT AND FOREMOST, AND I LOOK FORWARD TO SUPPORTING YOU. I LOOK FORWARD TO GETTING THOSE NUMBERS TO TELL US HOW MUCH WE'LL ACTUALLY BE ABLE TO RECOUP AS WELL. SO IN TERMS OF, OF RECOUPMENT, UM, THE, THE EXEMPTION WILL APPLY TO ALL HOMESTEADS, SO THAT'LL BE THE, THE REVENUE LOSS TO US. THERE'S REALLY NOT AN OFFSET TO THAT. THAT'S, THAT'S WHAT WE'RE GONNA REALIZE GOING INTO 2020, IS THAT REVENUE LOSS. SO WITH THE PARCELS, WE'RE NOT GONNA BE ABLE TO RECOUP ANY, ANY MONEY BACK INTO THE CITY. I KNOW THERE WAS SOME CONVERSATION ABOUT, UM, WHAT DID I DO WITH IT OUT? THERE ARE A LOT OF PARCELS THAT ARE NOT, UH, PAYING PROPERTY TAXES TODAY. RIGHT? BUT THOSE ARE STATUTORILY EXEMPT FROM PROPERTY TAXES. AND, AND WE PULL THAT, IT'S ABOUT 14,200 PARCELS. THE FAR MAJORITY OF THEM ARE PUBLIC PROPERTY, PROPERTY THAT WE OWN. SCHOOL DISTRICTS OWNS THE COUNTY, UH, THE FEDERAL GOVERNMENT. SO ALL THOSE GOVERNMENTAL PROPERTIES ARE NOT TAXABLE, UM, BY STATE LAW, CHARITABLE ORGANIZATIONS, CHURCHES, RELIGIOUS GROUPS, ALL OF THOSE ARE EXEMPT FROM, FROM PROPERTY TAXES. I THINK THERE WAS SOME CONVERSATION AROUND, UM, LIKE IN OUR CASE, COULD WE IDENTIFY SURPLUS PROPERTY THAT THEN YOU COULD, UM, SELL, GET BACK, UH, TO A PRIVATE DEVELOPMENT AND GET THOSE ONTO THE TAX ROLLS? THOSE ARE CERTAINLY THINGS YOU COULD LOOK AT, BUT IT'S REALLY, IT TAKES TIME TO DO THAT. AND THEN 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 REDEVELOP, 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, IT'LL TAKE TIME. TWO, IT'S NOT GONNA MOVE THE NEEDLE A LOT. OKAY. BUT IT'S SOMETHING WE CAN CONTINUE TO LOOK AT. 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 GONNA HAVE ON US WHEN IT COMES TO THE REVENUE THAT WE'RE LOSING AS A CITY? HAVE WE [00:50:01] LOOKED AT, I KNOW, UH, THE MAYOR SPOKE OF OTHER ENTITIES IN WHICH THE BUDGET HE WILL BE KIND OF LOOKING TO, TO MANEUVER. AND SO, UM, I'D JUST LIKE TO SEE HOW WE COULD ACTUALLY BREAK IT ALL DOWN TO, TO MAKE THE NUMBERS MEET. I MEAN, I THINK IN TERMS OF GOING THROUGH THE BUDGET PROCESS THIS YEAR, THE THINGS WE'LL BE LOOKING AT ARE, UH, REDUCTIONS. UM, YOU KNOW, WHERE WE, WHERE WE CAN GET EFFICIENCIES OR ACTUAL REDUCTIONS SO THAT WE CAN BALANCE THE BUDGET OR WE'RE GONNA HAVE TO LOOK AT OTHER TYPES OF REVENUES, UH, OPTIONS. UM, WE HAVEN'T IDENTIFIED THOSE YET. WE'LL CONTINUE TO LOOK AT IT. AND THEN OF COURSE, WE HAVE TO CONTINUE TO UPDATE EVEN WHERE WE ARE TODAY, BECAUSE AS I MENTIONED, C P S, 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. THAT'LL BE EVEN, UH, WILL BE FURTHER BE, WILL BE, WE WILL 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 GONNA HAVE TO LOOK AT COST REDUCTIONS, UH, AND EFFICIENCIES WITHIN THE BUDGET, AND THEN SOME REVENUE OPPORTUNITIES OF SOME TYPE. OKAY. THANK YOU. THANK YOU COUNCILMAN. ANDREW SULLIVAN. COUNCILMAN KEO. HAVRE. THANK YOU FOR THE PRESENTATION, BEN. UH, A COUPLE OF OF QUESTIONS. UM, DISTRICT SIX IS A VERY DIVERSE DISTRICT. WE GO, UM, FROM LITTLE, LITTLE BIT OF ALAMO RANCH OVER TO EDGEWOOD. SO, UM, MY, MY QUESTION REALLY IS, UM, HOW WILL CUTTING THESE SERVICES IMPACT ONE, I THINK THAT ONE AREA WILL BE MORE IMPACTED, MORE SEVERELY, MORE THAN, THAN THAN OTHER AREAS. I GUESS MY REAL QUESTION IS DO WE HAVE A CITY DEMOGRAPHER THAT LOOKS INTO THAT OR DO WE HAVE A AN AREA OF OUR CITY THAT WILL BREAK THAT DOWN? UH, IMPACT IN TERMS OF, UM, THE HOMESTEAD OR, OR IN TERMS OF, YES. 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 HOME. SO, OKAY, OBVIOUSLY SOMEBODY IN A HUNDRED THOUSAND DOLLARS HOME, THE $5,000 EXEMPTION WILL HAVE MORE VALUE THAN SOMEBODY IN A $300,000 HOME. I, WE HAVE, WE HAVE NOT BROKEN THAT DOWN TO THAT LEVEL. I'M LOOKING MORE AT IT FROM THE, THE COST OF CITY SERVICES, CITY SERVICES TO ONE AREA OF MY DISTRICT IS GONNA HAVE A, YOU KNOW, SPECIFICALLY, YOU KNOW, EDGEWOOD, IT'S GONNA HAVE A VERY DIFFERENT IMPACT ON EDGEWOOD THAN IT WILL IN TO HOMES, UM, HOMEOWNERS IN THE WESTOVER HILLS AREA. SO MY QUESTION ABOUT THE DEMOGRAPHER IS TO SEE CAN THEY, CAN SOMEBODY BREAK THAT DOWN FOR US TO SEE WHAT, HOW, HOW WILL CITY TO, TO COUNCILWOMAN GONZALEZ'S POINT, THERE ARE CERTAIN AREAS THAT THAT USE CITY SERVICES MORE, AND I'D LIKE TO KNOW THE IMPACT TO THE DIFFERENT PARTS OF MY DISTRICT ON, UM, THIS HOMESTEAD EXEMPTION WILL HAVE, BUT NOT SO MUCH ON THE EXEMPTION ITSELF, BUT ON THE, THE, THE COST OF CITY SERVICES. OKAY. WE CAN LOOK AT, I THINK PART OF IT AS WE, WE LOOK AT THE BUDGET, I THINK WE'LL HAVE TO DETERMINE, UM, AND I GUESS YOU'RE ASKING MORE FROM THE PERSPECTIVE IF WE HAVE TO REDUCE SERVICES TO PAY FOR THIS, RIGHT? RIGHT. UM, WE HAVEN'T IDENTIFIED WHAT THAT MIGHT LOOK LIKE, SO IT DEPENDS WHICH SERVICES WE LOOK AT AND, AND OKAY. AND THEN WE CAN, I THINK, GIVE YOU A BETTER IDEA OF WHAT THE IMPACT WILL BE IN THE COMMUNITY. COUNCILWOMAN, UH, UH, CITY MANAGER HAS A COMMENT. I, I WAS JUST GONNA SAY THE SAME THING THAT BEN JUST SAID. I MEAN, THAT'S PART OF THE PROCESS. WE'LL GO THROUGH THIS SUMMER AND IDENTIFYING, UM, AND NOT JUST FROM A REDUCTION STANDPOINT, BUT IF THERE ARE ADJUSTMENTS TO REVENUES, WHO DOES THAT IMPACT AND HOW DOES IT IMPACT THEM? MM-HMM. . UM, BUT, BUT THAT'S ANALYSIS THAT WE'RE GONNA HAVE TO GO THROUGH OVER THE NEXT 30, 45 DAYS. OKAY, GREAT. UM, MY SECOND, UH, QUESTION IS TWOFOLD. UH, THAT, JUST LIKE MY COLLEAGUES MENTIONED, THE PEOPLE OF DISTRICT SIX MADE IT VERY CLEAR TO ME. I CONDUCTED A MORE INFORMAL POLL THAT COUNCILMAN ENCOURAGED, 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, I MEAN, AND I, BUT I ALSO KNOW SOMETHING HAS TO GIVE. SO, UM, CAN YOU MAY, AND MAYBE YOU CAN'T ANSWER THIS TODAY, BUT I'D LIKE TO KNOW THE TOTAL ECONOMIC IMPACT OF THE EXEMPTION, UM, ON OUR CITY SERVICES. THE, I GUESS THE SECOND PART OF THAT WAS THE QUESTION ABOUT THE, UH, THE DEMOGRAPHICS OF MY DISTRICT. BUT I'D LIKE TO SEE SOME KIND OF ILLUSTRATION. I I WANNA GO BACK TO MY HOMEOWNERS, UH, AND SAY, OR THE PE ALL THE PEOPLE OF DISTRICT SIX AND SAY, THIS IS WHAT WE DID FOR YOU, BUT THIS IS HOW IT'S GONNA IMPACT YOU. MM-HMM. . SO IF I COULD GET SOME CLARIFICATION ON THAT AT A LATER DATE, THAT'D BE GREAT. SURE. I DON'T HAVE THAT, BUT THAT'S SOMETHING WE CAN CERTAINLY LOOK AT. AND I THINK, UM, YOU KNOW, PART OF OUR LEGISLATIVE AGENDA GOING FORWARD WILL PROBABLY BE, HAVE TO BE TO CONTINUE TO KEEP THIS ON THE AGENDA, BECAUSE REMEMBER FROM THE STATE SIDE, HB THREE, THAT FUNDING IS REALLY IN PLACE FOR THE NEXT BIENNIUM. THERE'S NOT A PERMANENT, UM, REVENUE SOURCE THAT'S BEEN IDENTIFIED. SO THE STATE WILL HAVE TO COME UP WITH ADDITIONAL FUNDING IN THE NEXT BIENNIUM IN ORDER TO KEEP THAT TAX RATE WHERE IT'S AT OR TO KEEP THE TAXES WHERE THEY'RE AT OR KEEP THEM FROM GROWING SIGNIFICANTLY. [00:55:01] SO THAT'LL, IT'LL BE AN ONGOING CONVERSATION, I'M SURE. OKAY. THANK YOU. THANK YOU. COUNCILWOMAN CAVEO, HOWEVER, TO COUNCILWOMAN GARCIA. THANK YOU, BEN. AND TEAM. I ALSO WANNA POINT OUT HOW BEN KEEPS SAYING THAT THE WEATHER IS MILD, BUT ACCORDING TO ALL THE MEMES ON SOCIAL MEDIA, IT'S REALLY HOT , BUT I GUESS ONLY THE C F O COULD SAY THAT. UM, SO THANK YOU FOR WORKING THROUGH THE WEEKEND ON THAT. I APPRECIATE THAT. ON BEHALF OF THE RESIDENTS OF DISTRICT FOUR, UH, 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, UM, IN THE STAFF. I THINK THAT YOU ALL HAVE REALLY GOOD RECOMMENDATIONS. I HAVE COMPLETE CONFIDENCE IN, IN MY COLLEAGUES. THANK YOU, UH, COUNCILMAN PERRY, WHO GAVE ME A LOT OF HOMEWORK TO READ OVER THE WEEKEND, BY THE WAY, IN PREPARATION. UH, 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 GONNA 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, UH, PROBABLY ASK, UH, MAYBE JEFF, IF THERE'S A PLAN ALREADY, UH, 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, UH, CURRENT HOMEOWNERS OR RESIDENTS IN GENERAL. UH, FOR INSTANCE, IN THIS CASE OF, UH, 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. UM, ME TOO. WE, WE HAVEN'T DEVELOPED A COMMUNICATIONS PLAN YET. WE CERTAINLY CAN. UM, AND I THINK GIVEN THAT THIS WOULD BE A CITY HOMESTEAD EXEMPTION, IT WOULD BE, UH, AN OBLIGATION ON THE CITY TO BE ABLE TO COMMUNICATE THAT OUT TO THE PUBLIC. I KNOW THAT THE, UH, APPRAISAL DISTRICT DOES ITS OWN, UH, PUBLICIZING AND, 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. THANK YOU, JEFF. THANK YOU. COUNCILMAN GARCIA. COUNCILMAN PALAIS. THANK YOU, MAYOR. UM, I, I'M GONNA SUPPORT THIS AND, AND IT'S A, IT'S THE RIGHT THING TO DO. ALL OF OUR CONSTITUENTS, I'VE YET TO MEET A CONSTITUENT OUT THERE THAT SAYS, YOU KNOW, I'D, I'D REALLY RATHER NOT HAVE A HOMESTEAD EXEMPTION THIS TIME AROUND. AND SO THIS IS, THIS IS A NO-BRAINER. UM, AND, AND AGAIN, I'LL, I'LL, I'LL CAUTION ALL OF US THAT, YOU KNOW, WE MAY ALL WALK OUT OF THIS ROOM TODAY AND TAKE A VICTORY LAP AND SPIKE THE BALL, BUT I'M NOT SURE THAT THIS IS A, A VICTORY THAT IS GONNA BE, UM, FELT BY THE TAXPAYER FOR VERY LONG. UM, YOU KNOW, THEY'RE GONNA, NEXT YEAR'S TAX APPRAISAL'S GONNA COME AROUND. THEY'RE GONNA GET THEIR LOVE LETTER FROM THE BEXAR COUNTY APPRAISAL DISTRICT. AND, UM, THEY'RE GONNA SEE EXACTLY WHAT THEY OWE AND THAT WE DID THIS, UH, TODAY IS PROBABLY NOT GONNA BE VERY MUCH APPRECIATED OR REMEMBERED. UH, DESPITE THAT WE GOTTA DO THE RIGHT THING ANYWAY BY THEM. UH, AND YEAH, I'M A TAXPAYER TOO. AND I'M A HOMEOWNER ALSO, AND, AND I WOULD LOVE TO PAY LESS IN TAXES. AND, AND I UNDERSTAND THAT, UM, YOU KNOW, DEMONIZING ALL TAXES IS VERY EASY, AND THE HARD PART IS ACTUALLY DEFENDING WHAT YOU DO WITH THE TAXES AND EXPLAINING TO PEOPLE THAT TAXES PAY FOR PARKS AND SIDEWALKS AND STREETLIGHTS AND AIRPORTS AND, UH, ALL THE THINGS THAT WE'VE, UH, COME TO APPRECIATE. BUT I ALSO KNOW THAT, UM, IN LEVYING TAXES, UH, IT'S REALLY SIMILAR TO SHEARING SHEEP THAT, YOU KNOW, IT'S ALWAYS A GOOD IDEA TO STOP WHEN YOU HIT THE SKIN. UM, AND THIS, IN THIS INSTANCE, WE, IT'S CLEAR THAT ALL OF OUR CONSTITUENTS ARE, ARE FEELING, UM, ARE FEELING THE PAIN. AND, UH, SO YOU GOT MY SUPPORT. AND, UH, THANK YOU SO MUCH, COUNCILMAN PERRY AND COUNCILMAN COURAGE FOR, UH, BEING LEADERS IN THIS, IN THIS, UH, IN THIS EFFORT. THANKS, MAYOR. THANK YOU. COUNCILMAN PALAI. COUNCILMAN SANDOVAL. UH, THANK YOU VERY MUCH, MAYOR. UM, I HAVE, UH, I'LL BE SUPPORTING THE ITEM, BUT I DO HAVE, UH, SOME, SOME CONCERNS AND I JUST WANNA MAKE SURE THAT, THAT I EXPRESS THOSE BEFORE WE HAVE, UH, TODAY'S VOTE. UM, SO THE, THE SAVINGS THAT WE ANTICIPATE, I'M SORRY, THE, THE LOSS OF REVENUE THAT WE ANTICIPATE IS 3.6 MILLION, RIGHT? UM, BEN, NOW, IS IT TECHNICALLY A LOSS OR IT MEANS OUR REVENUES AREN'T GOING TO GROW BY, YOU KNOW, THAT MUCH MORE, UM, PULL OUT YOUR CRYSTAL BALL COMING OUT OF THE 2020 BUDGET. $3.6 MILLION. MM-HMM. . SO IF YOU LOOK AT THE FORECAST AGAIN, WE [01:00:01] WERE PROJECTING A LITTLE BIT OF A POSITIVE BALANCE IN 2020, THIS WOULD ABSORB THAT POSITIVE BALANCE. OKAY. UM, SO $3.6 MILLION, UM, COULD YOU TELL ME, LIKE, WHAT WOULD THAT PROVIDE NORMALLY, LIKE A, YOU KNOW, I MIGHT ASK MARIA TO HELP ME. SHE'S BETTER OFF, OFF THE TOP PHONE ON HOW MANY POSITIONS IN AIR QUALITY. IN AIR QUALITY. WHEN WE SAY, OH, WE'RE GONNA REDUCE A HUNDRED TONS OF, YOU KNOW, POLLUTION, THEY ALWAYS SAY, WELL, TELL ME WHAT DOES THAT MEAN IN, YOU KNOW, HOW MANY MILES YOU DRIVE OR SOMETHING. SO A QUICK EXAMPLE, COUNCILWOMAN, UM, THAT'S ABOUT 36, UH, POLICE OFFICERS. UH, THEY COST ABOUT A HUNDRED THOUSAND DOLLARS, UH, A YEAR. SO YOU COULD, YOU COULD DO THAT WITH $3.6 MILLION. OKAY. UM, THANK YOU. UM, SO THAT'S, UH, YOU KNOW, THAT'S PART OF THE CONCERN. IT JUST, WE'VE BEEN INCREASING OUR, OUR SPENDING ON, UH, THE REHABILITATION OF THE ROADS. AND I, I DON'T THINK THERE'S ANYBODY OUT THERE THAT SAYS, AT LEAST IN MY DISTRICT, THAT WILL SAY, STOP, STOP FIXING MY ROADS. I'M READY TO, YOU KNOW, TAKE A SLOWER PACE AT WHAT YOU'RE AT, WHAT YOU'RE DOING WITH THE ROADS. SO THAT'S, THAT'S THE TOUGH PART ABOUT THIS. UM, BUT I ALSO UNDERSTAND THE TOUGH PART ABOUT, UH, PROPERTY TAXES. UM, IT'S NOT JUST THAT THEY'RE HIGH, IT'S JUST THAT THEY'RE SO UNPREDICTABLE FROM, FROM YEAR TO YEAR. SO WHEN THEY GO UP, YOU DON'T NECESSARILY HAVE MORE MONEY IN YOUR POCKET TO, TO PAY IT. RIGHT. JUST 'CAUSE YOUR VALUE'S WORTH MORE. YOU, YOU ONLY GET THAT VALUE WHEN YOU SELL IT. AND, AND THEN WHERE DO YOU LIVE, UM, AFTER THAT? UM, AND THE AVERAGE SAVINGS IS 28. $28? THAT'S CORRECT. OKAY. UM, ALRIGHT. WELL THANK YOU. I APPRECIATE IT. THANKS, MAYOR. THANK YOU. COUNCILMAN SANDOVAL. COUNCILWOMAN ANDREWS SULLIVAN. SO I HAVE A QUESTION FOR JEFF. I APOLOGIZE. YES, COUNCILMAN, THANK YOU. UM, 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, OF TOOK A BACKSEAT THIS SESSION. AND ONCE WE HAVE THIS IN PLACE, WHAT WILL BE THE NEXT STEP TO WORK IN THE LEGISLATIVE PORTION TO GET OUR APPRAISALS TO A OH, I SEE YOUR QUESTION. A, A SUBSTANTIAL, UM, UNDERSTANDING WITHOUT US HAVING TO SPEND THE SECOND 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? UM, I THINK I UNDERSTAND YOUR QUESTION, UH, WHICH IS, TELL ME IF I'M CORRECT HERE, THAT, UM, THE, 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. UM, 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, UH, YOU'RE CORRECT. THERE WAS NO REAL REFORM ON THE APPRAISAL FRONT OTHER THAN, UH, SORT OF TRANSPARENCY AROUND THE PROCESS THAT OCCURRED THIS SESSION. UH, IN TERMS OF WHAT WE WILL PUSH FOR NEXT SESSION, ULTIMATELY, YOU ALL MAKE THAT DECISION, WE'LL, WE'LL BE COMING TO YOU WITH A RECOMMENDED LEGISLATIVE AGENDA BEFORE THE NEXT SESSION, UH, WHICH ULTIMATELY GETS CONSIDERED BY THE COUNCIL, BUT THE APPRAISAL PIECE HASN'T BEEN ADDRESSED. UM, WE'VE HAD, UH, MEMBERS FROM OUR DELEGATION WHO HAVE, UH, BELIEVED STRONGLY, AND I THINK OUR FINANCE DEPARTMENT DOES TOO, THAT, UM, 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, UH, 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 VALUES WERE CORRECT ACROSS THE COMMUNITY. AND THAT HASN'T GONE ANYWHERE EITHER. SO IT'S BEEN A, IT'S BEEN A DIFFICULT FIGHT AND, AND THE APPRAISAL GROWTH CONTINUES TO BE A PART OF THE EQUATION FOR SURE. DID I ANSWER IT CORRECTLY? YOU DID. THANK YOU. OKAY. THANK YOU. THANKS. [01:05:02] THANK YOU. COUNCILMAN ANDREW SULLIVAN. COUNCILMAN TREVINO. THANK YOU, MAYOR. UM, FIRST I JUST WANNA CONTINUE ON WITH AND THANK, UH, JEFF COYLE FOR, UH, TOUCHING ON SOME OF THE, THE, THE IMPORTANT ASPECTS OF THE APPRAISAL PROCESS AND UNDERSTANDING THAT RESIDENTIAL AND COMMERCIAL ARE ESSENTIALLY NOT BEING, UH, VALUED. UH, UNFORTUNATELY THE SAME, UH, COMMERCIAL PROPERTY TENDS TO BE, UH, FOUGHT MORE RIGOROUSLY THAN THAN RESIDENTIAL PROPERTY. AND I JUST WANNA GO BACK TO COUNCILMAN RA'S QUESTION TO BEN AND I, AND I I THINK I WOULD REPHRASE IT AS, YOU KNOW, NEIGHBORHOOD BY NEIGHBORHOOD. HOW WOULD YOU DEMONSTRATE THE IMPACT OF THE HOMESTEAD EXEMPTION? AND I'LL GIVE A SMALL EXAMPLE. YOU KNOW, THERE'S SOME NEIGHBORHOODS THAT YOU HAVE A HIGH NUMBER OF HOME OWNERSHIP AND OTHER NEIGHBORHOODS WHERE IT'S HIGH NUMBER OF RENTERS. SO I THINK THAT THAT WOULD SHED A LOT OF LIGHT ON THE REAL IMPACT OF THIS, UH, YOU KNOW, OF THIS HOMESTEAD EXEMPTION. I WILL BE SUPPORTING IT. I THINK IT'S THE RIGHT THING TO DO. ANY SMALL MEASURE, UH, IS, IS, IS, ESPECIALLY WHEN IT COMES TO TAXES, IS IMPORTANT. AND IT CERTAINLY IS, IS PART OF US AS A, AS A CITY OR GOVERNMENTAL AGENCY TO, TO, TO BE MORE DILIGENT ABOUT, UH, SAVING TAX DOLLARS. HOWEVER, I WILL SAY THAT, YOU KNOW, WE NEED TO KINDA UNDERSTAND WHAT THE, UH, THE IMPACT OF, OF THIS HOMESTEAD EXEMPTION REALLY MEANS. UM, YOU KNOW, IT'S DEFINITELY GONNA IMPACT OUR 2020 BUDGET. UM, IT IS A, A, A SMALL, UH, UH, BUT PROPER TAX RELIEF. UH, I WILL, UH, SUPPORT, UH, COUNCILMAN PERRY AND COUNCILMAN CURTIS'S, C C R. UH, HOWEVER, WE CAN'T FORGET THE RENTERS OUT THERE. THERE'S AT LEAST 46% OF, OF OUR COMMUNITY RENTS, AND THEY WILL NOT BE IMPACTED BY THIS WHATSOEVER. AND, UH, I THINK IT'D BE IMPORTANT FOR US TO KNOW WHAT PARTS OF OUR CITY ARE, ARE, ARE BEING IMPACTED MORE THAN OTHERS. YOU KNOW, SMALL EXAMPLE IS, UH, FIVE POINTS IN MY DISTRICT IS MOSTLY RENTERS. YOU KNOW, OTHER PARTS OF OF MY DISTRICT HAVE A HIGHER PERCENTAGE OF HOMEOWNERS. YOU KNOW, THOSE FOLKS WILL CERTAINLY BE IMPACTED THE MOST. AND AS BEN MENTIONED, UH, THE BARE APPRAISAL DISTRICT, UH, THE BOARD, UH, DID DECIDE TO MOVE FORWARD ON, ON AN AUDIT OF ALL THOSE THAT ARE TAKING, UH, THE HOMESTEAD AND OVER 65 EXEMPTION AND THOSE THAT ARE NOT. I THINK WHAT YOU'RE GONNA FIND IS THAT THERE'S, THERE'S, UH, GONNA BE A SIGNIFICANT NUMBER OF PEOPLE THAT ARE TAKING THE HOMESTEAD THAT, UH, ARE NOT, UH, ESSENTIALLY QUALIFIED FOR THAT HOMESTEAD. UM, BUT WE ARE ALSO GONNA LOOK FOR THOSE THAT, THAT ARE NOT TAKING ADVANTAGE OF THAT HOMESTEAD AND TRY TO HELP THEM IMMEDIATELY BECAUSE, UH, AS WE HEARD FROM THE ENTIRE DIOCESE, UH, 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, UH, SITUATION BECAUSE WE KNOW THAT, THAT THIS COULD HELP THEM IN A VERY SIGNIFICANT WAY. UM, ALSO WANNA MENTION, AS WAS BROUGHT UP SEVERAL TIMES THAT THROUGH THE, UH, NOT THE APPRAISAL DISTRICT, BUT THE TAX ASSESSOR, UH, IN WORKING WITH ALBERT ESTE, UH, I CAN GIVE ONE EXAMPLE OF HOW, UH, SOMEONE WHO THOUGHT THEY OWED QUITE A LOT OF MONEY, UH, AND WAS TRYING TO GET ON A PAYMENT PLAN, BUT THOUGHT IT WAS GONNA BE IMPOSSIBLE TO GET ON A PAYMENT PLAN, UH, QUALIFIED FOR A DEFERMENT. THIS DEFERMENT IT MEANS THAT SOMEONE CAN, CAN WORK ON A PAYMENT PLAN, CAN WORK TO GET BACK ON, UH, GETTING, UH, THEIR PROPERTY TAXES TO WHERE THEY'RE SUPPOSED TO BE WHILE WE, WHILE WE LOOK AT MAKING SURE THAT THEY'RE TAKING ADVANTAGE OF ALL THE, UH, POTENTIAL, UH, UH, BENEFITS THAT THEY, THEY DO QUALIFY FOR. IN THIS CASE. UH, THIS, THIS PERSON, UH, WAS BEING RESTRICTED FROM QUALIFYING FOR THE UNDER ONE ROOF PROGRAM, UH, WHICH WE WERE ABLE TO, TO GET THROUGH BECAUSE WE WORKED WITH A TAX ASSESSOR. SO I WANT TO THANK ALBERT ESTE AS WELL. I THINK HIS DEPARTMENT IS DOING A GREAT JOB OF, OF HELPING PEOPLE WITH THESE DEFERMENTS. SO, UH, AGAIN, IT'S NOT A, UH, ERASING THE DEBT, BUT RATHER DEFERRING IT SO THAT PEOPLE CAN GET CAUGHT UP. SO IT'S IN, IN, IN THE CASE OF, OF RISING PROPERTY TAXES, UH, OR THOSE FOLKS THAT FEEL THAT, UH, 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, AT OUR LAST SESSION. AND, YOU KNOW, THAT'S 15,000 [01:10:01] TOTAL. AND I WOULD ASK THAT CITY MANAGEMENT TAKE A LOOK AT OUR INVENTORY AND WE SHOULD BE SETTING AN EXAMPLE, MUCH LIKE THIS IS SETTING AN EXAMPLE OF, OF PROPER TAX RELIEF. UH, LET'S TAKE A LOOK AT, AT OUR INVENTORY, FIND OUT WHAT WE CAN, WHAT WE CAN SELL, WHAT WE CAN, UH, REPOSITION AND GET BACK ON THE TAX ROLLS BECAUSE I THINK THAT WILL HELP PEOPLE. AND IF IT'S GONNA TAKE SOME TIME, THEN LET'S GET STARTED. UM, AND YOU KNOW, I THINK THAT, UH, UH, MOST OF ALL, YOU KNOW, I WANNA GO BACK TO, TO RENTERS BEING AFFECTED IN ALL THIS. AND, YOU KNOW, I'M GONNA USE THIS OCCASION TO ASK FOR MY COLLEAGUE SUPPORT AS I FILE A, A, A, A CONSIDERATION REQUEST, UH, TO CREATE A RENTER'S COMMISSION TO REPRESENT THAT 46% OF OUR COMMUNITY THAT IT DOES NOT HAVE MUCH REPRESENTATION WHEN IT COMES TO THESE KINDS OF ISSUES. UM, SO, YOU KNOW, I THINK THAT, UH, OVERALL THESE ARE THE, THE KINDS OF THINGS THAT, UH, CAN BUILD TOWARDS A, A PROPER, UH, LOOK AT PROPERTY TAXES AND, AND HOW THEY WORK. PROPERTY TAXES ARE TWO PARTS, THEIR APPRAISALS AND THEIR TAX RATES. AND, AND WE CAN'T JUST SIMPLY, UH, TAKE A LOOK AT JUST THE, THE APPRAISAL PROCESS. WE SHOULD BE LOOKING AT OUR, OUR TAX RATE, UH, IF WE'RE GONNA BE TALKING ABOUT, UH, PROPERTY TAXES. WITH THAT, UH, COUNCILMAN PERRY, ENCOURAGE, UH, YOU'LL HAVE MY SUPPORT TODAY. THANK YOU, MAYOR. THANK YOU. COUNCILMAN TREVINO. THERE IS A MOTION AND A SECOND FOR APPROVAL OF ITEM NUMBER ONE. PLEASE VOTE. AYE. MOTION CARRIES. OKAY. THAT'S ALL THE ITEMS WE HAVE ON OUR AGENDA TODAY. THANK YOU FOR ATTENDING. WE ARE ADJOURNED. WELL, YEAH, * This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting.