Property and sales tax presentation 8-8-17

[0:00:00] we wanted to put together some information to try to kind of give an overview of how property tax and seal sites works together and to give you a idea of where we stand with our existing sister cities and how we ranked amongst those and so that's what this presentation is about first of all why do we care about property valuation well it's the key component of the property tax equation which is valuation which is assessed by the appraisal district times the tax rate which is set by the City Council and that equals our tax levy which is what we budget for property tax revenue on an annual basis that's the most excuse me because the evaluation is determined independently governing boards can decide the evaluation or the tax rate but not both okay so our city's current property tax rate is 0.7 7/6 per 100 dollars of assessed valuation 0.67 seventy-four of that goes to maintenance and operations and point zero nine eight six of that goes to interest in sinking fund which is our debt service fund for the general debt service excuse me our combined local rate is two point five zero eight five four $100 of assessed valuation of that point seven seven six obviously it's the city of San Angelo the county accounts for point five one two five of that and the School District is one point two two of that amount so you can see here that the combined local property tax rate some Angelo accounts the city accounts for 31 percent while other entities account for sixty nine percent of our citizens tax rate burden this is the historical property tax rate for San Angelo you can see there I don't know if this is a pointer but starting in 2005 we began slowly to decrease the tax rate on an annual basis we flattened out there in about 2014 and we have neither increased the tax rate or

[0:02:04] changed it since that time this is our general fund revenues by source you can see there that the property tax accounts for 40% of our general fund revenue all sales tax accounts for about 25 percent of that revenue and then our expenditures like Department our property tax was initially adopted into the Charter and the purpose of the property tax was to fund Public Safety well you can see from 46 percent of our revenue being from property tax and 51 percent of our expenditures going toward police and fire that property tax revenue that we do generate is not even enough to cover the cost of those services and the next slide just shows our expenditures by category 72% of our general fund expenditures go to personnel and again the majority of that goes to police and fire police police officers and fire personnel this slide depicts our assessed valuation per capita so you can see there in comparison with some of our sister cities on average the assessed value per capita for Samantha was lower than most of them I think Wichita Falls might be a little bit lower than San Angelo but vicious shows that per your average citizen our assessed value is much lower than some of our sister cities and so our property tax rate again going back to that equation combined with our assessed value is where we produce our property tax revenue and and so for San Angelo it has to be a little bit higher in order to generate the same amount of revenue that other cities are able to generate because our assessed values are so much higher they have a much broader tax base this is just a comparison of our property tax rate again with our sister

[0:04:08] Texas cities just same discussion that we had before it's a little higher but again that's because of our smaller tax base and so in order to generate the same amount of revenue and provide those services we do need to have a bit of a higher tax rate and you'll see more about that again like I said when we discuss in further detail in correlation with the sales tax revenue this is the amount of property tax revenue by city so Midland is up there of course more right in line with Odessa and Wichita Falls I do want to point out that all of these numbers do come from audited financial statements from 2016 I did want to make sure that we had accurate and up-to-date numbers so that was the most recent year that had been audited so I want to point that out that's where these numbers are coming from in this presentation so this is our text levy per capita so this is the amount of tax each individual citizen would pay based on the amount of tax revenue that we received for the city of San Angelo $352 person Angela in comparison with the other cities but ranging from two hundred eighty one dollars to $329 another thing that we take into consideration when we're talking about the tax levy and tax levy comparisons our property tax and vent exemptions excuse me soussan angeles exemption is up to 20 percent of a home's value or at least $5,000 aveline's is 15 percent or five thousand dollars Wichita Falls is a flat twenty-five thousand odessa is 20 percent or five thousand dollars and in Midland it depends on the value of your property in the location and so San Angelo homestead exemption of 20 percent also gives our citizens you know some relief when it comes to their property tax bill as well so to start on sales tax our City rate

[0:06:15] is a point zero one size of that one cent goes to the city and a half cent goes to the Economic Development Corporation our combined local rate is eight and a quarter so again one and a half cents going to the city of San Angelo and the Development Corporation a half cent goes to the county and of course six and a quarter goes to the state of Texas this is our sales tax revenue by city again for fiscal year 16 audited financial statements you can see how San Angelo is lagging quite a ways behind any of our sister cities when it comes to sales tax and that in conjunction with the property tax is what we wanted to talk about today our sales tax revenue per capita is a dollar seventy again lagging quite a bit behind our sister cities when it comes to sales tax revenue and then this is depicting our combined property and sales tax per capita and you can see that we're kind of close for fiscal year 16 with Odessa and Wichita Falls but we're still even with the combined property tax and sales tax per capita we still like behind all of our sister cities when it comes to generating revenue for those two revenue streams San Angelo was at 523 dollars total per capita Abilene at 570 Wichita Falls at 530 Odessa at 535 and Midland at 592 dollars per capita and so again we just wanted to kind of give an overview of how the the property tax and sales tax worked together and and to show that you know while we are being very conservative you know we still have to find other ways to generate that revenue to provide those services that our citizens have come to expect and so with that I'll be happy to answer any questions to expand on any of that provide more information if you have any questions on that do you have what other cities in total have ours is 72% let me go back to that slide

[0:08:21] for personnel what do other cities what percent because what we the big picture course is the following conversation we keep trying to do salary and pay relative to those cities but if you take a look at them we're not close to those cities so you look at it and you go okay so we 72% of our funds go towards personnel what do those other cities % of personnel equal you know that's not something that I've actually looked at in detail I don't want to put lease on the spot but she wouldn't know either okay I could get that information for you but so I'm in my big point is the fine we can't use Midland Odessa Wichita Falls in Abilene as comparison cities because we don't compare ranked close to them in almost every category particularly property tax and so we just need to be cognizant of it's nice to talk about Midland Odessa relative to where we should be but we're not close to where they're I mean they have double the amount of sales tax revenue we have double that's a good point so you look at double the amount of sales tax revenue that they have because they do have those additional numbers that come in I mean they really can afford to have a lower tax rate property tax rate so you start looking at that and you see the challenges that the city of San Angelo has in combining those two which they're our top two revenue generators we have to be more efficient with our monies basically what it comes down to we did reality is we do compete with those cities for employees we just wanted to see how to put this together I just want to make sure that we're clear as far as we start talking about property taxes sales tax revenues I wanted to make sure that I'll be doing the same presentation Thursday evening but to another group that had asked for this but on our part we just want to make sure that we go into especially our general fund when we start discussing that item at the next budget workshop with our eyes wide open and looking at

[0:10:25] exactly what those challenges are and then addressing them accordingly but again I think this is a good presentation by Tina good numbers you put together so I appreciate you doing that I would like to say that you know sales tax is something that we have limited control over how much revenue we bring in and so property tax is one of our biggest tools that has to be unfortunately and if we did have the same sales tax per capita and this slide as are some of our sister cities we would be generating a lot more revenue in that regard and be able to lower our property tax rate and so that's why I know you've talked about a lot mayor about we need more industry we need more commercial base and and that's very true if we did have that additional source of income we'd be able to lower I mean from the math that I've done we could lower our tax rate anywhere from 9 to 18 cents and so you know that's it's very important to keep up on that and to try to bring in those new industries and new new revenue streams thank you it's very important point

Captured 2026-07-26 · source: youtube.com/watch?v=eRzb90L5z8Q