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MAN.[ CITY OF BAYTOWN NOTICE OF MEETING CITY COUNCIL WORK SESSION THURSDAY, SEPTEMBER 11, 2025 5:30 P.M. COUNCIL CHAMBER, CITY HALL 2401 MARKET STREET, BAYTOWN, TEXAS 77520 AGENDA CALL TO ORDER AND ANNOUNCEMENT OF QUORUM ]
I NOW CALLED THE ORDER THE SEPTEMBER 11TH, 2020 5, 5 30 AT THE COUNCIL CHAMBER.UM, CITY HALL, AN ANNOUNCEMENT OF QUORUM AT 5 33.
FIRST ON THE AGENDA IS CITIZEN COMMENT.
DO WE HAVE ANYONE SIGNED UP TO SPEAK?
[a. Discuss and consider the proposed property tax rate for Fiscal Year 2026.]
MOVING ON TO, TO A, DISCUSS AND CONSIDER THE PROP PROPOSED PROPERTY TAX RATE FOR FISCAL YEAR 2026.UH, GOOD EVENING, MAYOR AND COUNSEL.
UM, THE PURPOSE OF THIS PRESENTATION IS TO PROVIDE YOU WITH THE OPPORTUNITY TO REVIEW THE PROPERTY TAX RATE OP, UH, OPTIONS, THE REVENUE IMPLICATIONS, AND THE TAXPAYER IMPACTS, UM, TO HELP IN YOUR DECISION MAKING.
THE FORMAL CONSIDERATION FOR ADOPTION OF THE PROPERTY TAX RATE WILL BE ON SEPTEMBER 25TH, COUNCIL MEETING.
SO, UM, WE'RE GOING TO GO OVER A FEW HIGHLIGHTS OF THE TAX RATE COMPARISON.
WE'RE GONNA LOOK AT THE TAXPAYER IMPACT STATEMENT, THE TAX BILL IMPACT, AND THEN WE'LL HAVE DISCUSSION AND FEEDBACK.
BUT FEEL FREE TO ASK QUESTIONS AS WE GO ALONG IN THE SLIDES.
UM, THE FIRST SLIDE IS, THIS IS OUR, OUR CURRENT, UM, TAX RATE FOR FY 25 IS 0.70042.
UM, OUR NO NEW REVENUE RATE CALCULATION BASED ON THE VALUE ROLLS, UM, THAT YOU'LL RECEIVE TODAY, UM, THAT WE HAVE WITH HCA IN CHAMBERS COUNTY IS 0.69803.
AND THEN OUR VOTER APPROVAL RATE IS AT 0.77270.
UM, THE NOTE AT THE BOTTOM SAYS THAT OUR ACTUAL VOTER APPROVAL RATE IS 3.5%, WHICH IS 0.72547.
UM, THE REASON IT IS 0.7727 IS BECAUSE THE TEXAS LAW ALLOWS US TO USE THE INCREMENT THAT WE DIDN'T USE IN PRIOR YEARS.
SO WHEN YOU CONTINUE TO USE THE NO NEW REVENUE RATE, IT GIVES YOU THE DIFFERENCE BETWEEN THE NO NEW REVENUE RATE AND THE VOTER APPROVAL RATE.
AND YOU CAN USE THAT FOR FUTURE USE.
AND SO THAT'S WHAT THAT ADDITIONAL 0.04723 IS, THAT'S WHAT THAT REPRESENTS.
UM, OUR M AND O REVENUE, UM, FOR OUR CURRENT TAX RATE WOULD BE AROUND 26 MILLION.
AND ALSO OUR NO NEW REVENUE RATE WILL BE AROUND 26 MILLION.
THERE'S A SLIGHT DIFFERENCE OF 232,000.
OUR VOTER APPROVAL RATE WILL BE 30 MILLION, WHICH IS AROUND $4 MILLION DIFFERENCE.
UM, WHEN YOU'RE LOOKING AT THE IDA REVENUE, UM, IT WILL BE 68,000, WHICH IS WHAT WE BUDGETED IN OUR BUDGET.
AND THEN WE HAVE FOR NO NEW REVENUE RATE, 67, WHICH IS A MILLION, AROUND A MILLION DOLLAR DIFFERENCE.
AND THEN WE ALSO HAVE OUR IDA REVENUE FOR THE VOTER APPROVAL IS AROUND 75, WHICH IS A $7 MILLION DIFFERENCE.
UM, THIS IS A TAXPAYER IMPACT STATEMENT AND THIS IS JUST REPRESENTING REGULAR HOMESTEAD EXEMPTIONS OF 20%.
UM, OUR, UH, OUR HOME BASE THAT REPRESENTS ONLY HOMESTEAD EXEMPTIONS IS AROUND 80% OF OUR BASE.
UM, WE HAVE LIKE 21 UM THOUSAND, WHERE AM I AT 21,327 HOMES WITH THIS VALUE.
AND SO IF THIS TAXPAYER WOULD PAY AROUND $1,300, IF WE WERE TO DO THE NO NEW REVENUE RATE AT 0.69803, THEY WOULD PAY AROUND $1,400 WITH A DIFFERENCE OF $75.
AND WITH THE VOTER APPROVAL RATE, THEY WOULD PAY FIF, UH, AROUND $1,500.
SO THE ONE THING I WANNA HIGHLIGHT ON HERE IS WITH THE NO NEW REVENUE RATE AND THE VOTER APPROVAL RATE, WE HAVE INCLUDED A 6% GROWTH ESTIMATE BECAUSE WE USE THAT ESTIMATE WITH THE GO BOND.
BUT IF YOU ARE A TAXPAYER THAT, UM, YOUR VALUES DIDN'T GROW, OF COURSE YOUR BILL WOULD BE LESS.
IF IT WAS MORE THAN THAT, OF COURSE IT WOULD BE MORE.
QUESTION, DO WE, DO WE HAVE THE VALUE IF WE STAYED AT THE 0.70 FOR A TAXPAYER? YES.
YES, BECAUSE THAT'S, 'CAUSE IF WE WENT TO THE SEVEN SEVEN, IT'S $226 ADDITIONAL A YEAR.
IF WE GO DOWN TO THE 0.69, IT'S $75 ADDITIONAL.
I'D LIKE TO SEE WHAT IF WE, IF WE STAYED, STAYED WHERE WE ARE, WHAT WOULD THAT BE? BECAUSE IN MY OPINION, TURN THAT ON.
THE, THE REAL BENEFACTORS OF US AT THIS POINT LOWERING THE TAX RATE ARE THE IDAS.
IF YOU, IT, IT IS A HUNDRED BUCKS OR YOU KNOW, WHATEVER TO OUR CITIZENS A YEAR, BUT IT'S MILLIONS MM-HMM
AND THAT'S WHERE THE, IN THIS CLINIC, I AGREE WITH LAURA AND THE TAX RATE TO RELIEVE THE TAX BURDEN, BUT WE'RE KIND OF TO THE POINT NOW THAT WE ALSO NEED TO START REALIZING THAT IF WE CONTINUE TO LOWER THAT TAX RATE, THE REALLY, THE ONLY ONES GETTING THE BEST BENEFIT ARE OUR IDAS.
AND THEY NEED TO BE PAYING MORE.
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PAYING THEIR FAIR MORE THAN FAIR SHARE.SO WE CAN DO OTHER THINGS TO HELP OUR CITIZENS.
WE NEED THE IDA TO CONTINUE TO PAY THE, THE HIGHER RATE MM-HMM
BECAUSE THAT'S WHAT IS HINGED ON IS THE RATE.
SO I'D JUST LIKE TO SEE WHAT THAT NUMBER IS.
STAYED THE SAME IF WE JUST STAYED THE SAME.
AND IT'S, AND IT'S A MILLION, IT'S, YOU KNOW, MILLIONS OR LESS ON THE IDAS MM-HMM
SO THAT'S, I'M SORRY, I DIDN'T MEAN TO INTERRUPT.
YEAH, THAT, THAT'S MY OWN COMMENT.
SO WE'LL SEE THAT NUMBER LATER.
UM, IF THIS, HOLD ON ONE SECOND.
SO IF WE DO IT AT 71, WHAT WOULD THAT, WHAT WOULD THAT BE? IT PRESENTATION.
WE'RE JUST GONNA SAY I'M JUST AHEAD OF THE CURVE.
YEAH, NO, AND I COMPLETELY AGREE.
UM, HOW MUCH, UH, BECAUSE I KNOW A BIG PORTION OF OUR BUDGET REVENUES ANYWAY IS ID EIGHT MM-HMM
AND SO I KNOW IT'S OVER 40% THAT WE'RE GETTING IN REVENUE, UM, FROM, UH, IDAS.
AND THAT'S WHAT, YOU KNOW, PAYS PRETTY MUCH A LOT OF THE BILLS FOR US.
AND SO I'M JUST VERY CAUTIOUS OF THAT AS WELL.
UM, THE NEXT SLIDE IS JUST ANOTHER COMPARISON AS THE PREVIOUS SLIDE, BUT THIS ONE JUST ILLUSTRATES THE 65 AND OLDER EXEMPTION.
SO, UM, THE TAXPAYER AT THE CURRENT TAX RATE WOULD PAY, UM, AROUND FOUR, ALMOST $500 A YEAR.
AND IF WE DID THE NO NEW REVENUE WITH THE 6%, UM, GROWTH ESTIMATE, THEY WOULD PAY $576 WITH A CHANGE OF AROUND $78 A YEAR.
AND WITH THE VOTER APPROVAL RATE, IT GOES UP TO $638, WHICH IS 140, UH, ADDITIONAL, UH, AMOUNT, UM, TAXES PER YEAR.
AND REMEMBER, THIS IS ALL BASED ON WHETHER OR NOT YOUR PERSONAL PROPERTY TAX, UH, VALUE, HOME VALUE GOES UP OR NOT.
UM, THIS SLIDE JUST SIMPLY REPRESENTS, UM, SOMETHING, UH, SIMILAR TO WHAT, UH, YOU WERE REQUESTING.
YOU KNOW, DURING OUR BUDGET, UH, DISCUSSIONS PREVIOUSLY, YOU WANTED TO SEE, UH, MORE DETAIL ON, UH, COMPARISONS WITH THIS DATA FOR THE NO NEW REVENUE RATE, CURRENT RATE, AND OUR VOTER APPROVAL RATE.
SO WE, I'VE HIGHLIGHTED THE 250,000 JUST TO LOOK AT ONE, UM, TOGETHER, UM, WITH THE HOMESTEAD EXEMPTION.
THIS DOES NOT TAKE INTO ACCOUNT THE 65 AND OLDER.
IF YOU LOOK AT THE TAX RATES, UM, NEXT TO EACH OTHER, THE CURRENT TAX RATE IS 1400.
THE NO NEW REVENUE IS 13, CLOSE TO 14.
UH, THE VOTER APPROVAL IS AROUND 15.
UM, WHEN YOU LOOK AT THE GREEN SECTION OF THIS SLIDE ON THE NO NEW REVENUE RATE IS A SLIGHT DECLINE OF 4.78 AND 40 CENTS PER MONTH.
SO THE FIRST COLUMN IS ANNUAL.
WHAT THAT, WHAT THAT, UM, COST WOULD BE.
AND THEN SEC, THE SECOND SECTION IS THE MONTHLY AMOUNT.
AND THEN THE GRADE SECTION REPRESENTS THE VOTER APPROVAL CHANGE FOR THE ANNUAL AMOUNT OF $144.
AND THEN THE MONTHLY AMOUNT IS $12.
UH, DOWN AT THE BOTTOM IT SAYS THAT THE TABLE ASSUMES HOME VALUES REMAIN UNCHANGED.
BUT IF, IF THE HOME VALUE INCREASES, WHICH I KNOW FOR ME THAT'S HAPPENED EVERY YEAR, UM, EVEN WITH THE NO NEW REVENUE, SO THAT WOULD MEAN THE, DOESN'T GET MORE MONEY FOR THE IDAS OR ANYWHERE, BUT MY TAX BILL AS A HOMEOWNER IS STILL GONNA GO UP.
SO EVEN IF WE DECIDE TO STAY NO NEW REVENUE, IF MY HOME VALUE GOES UP, THEN MY TAX BILL GOES UP.
IS THAT WHAT THAT'S CLARIFYING? YES.
AND SO THAT REPRESENTS AND ILLUSTRATES THAT IN THIS, SO THE CITIZEN PAYS MORE NOT ONLY ON THEIR HOME, BUT ALSO MORE THAN LIKELY MORE IN BILLS AROUND TOWN BECAUSE WE WILL HAVE TO INCREASE THINGS TO MAKE UP FOR THAT DEFICIT WITH NOT HAVING ENOUGH MONEY.
IS THAT WHAT THAT'S DID IT ARE, DIDN'T THE STATE INCREASE HOME HOMESTEAD EXEMPTION? IT'S ON THE, THE MEMBER SCHOOL DISTRICT.
IT HASN'T PASSED YET FOR SCHOOL TAXES.
BUT IT'S STILL AN OVERALL TO THEIR TAX BILL FOR SCHOOL TAX.
YEAH, BECAUSE THEY DON'T SEPARATE IT WHEN THEY LOOK AT THEIR BILL.
WELL 'CAUSE THEY'RE GETTING SCREEN FOR BOTH OF US.
ANY MORE QUESTIONS ON THIS SLIDE BEFORE? OKAY.
UM, SO THIS LAST SLIDE JUST REPRESENTS THE INCREMENTAL INCREASE THAT WOULD TAKE PLACE IF YOU WERE TO INCREASE THE, UM, THE TAXES FROM THE NO NEW REVENUE RATE.
SO IF YOU WOULD GO UP TO 70 CENTS, WHICH IS ABOUT WHERE WE ARE, IS SLIGHTLY MORE ON THIS COMPARISON,
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UM, ON THIS UH, SNAPSHOT, BUT AT 250,000, THEIR TAX BILL WOULD BE AROUND AN ADDITIONAL $5 A YEAR.AND THEN IF YOU GO, UH, UP TO 7 CENT, IF YOU WERE TO ADD 7 CENT FROM THE NO NEW REVENUE RATE, IT WILL GO UP TO 140 A YEAR WITH $11 AND 67 CENTS A MONTH.
AND SO THIS ILL RATES INCREMENTALLY, LIKE IF YOU INCREASE GRADUALLY, 'CAUSE THE FIRST ONE IS A QUARTER OF A CENT, THEN THERE'S A HALF A CENT AND THEN THERE'S 1 CENTS AFTER THAT WHAT THOSE IMPACTS WOULD BE.
AND SO THAT IS THE END OF THE PRESENTATION.
I'M HAPPY TO ANSWER ANY QUESTIONS, ANYTHING.
I DON'T WANT TO SEE US GO TO THIS HIGHER END FOR SURE.
UM, YEAH, I I I AGREE MY COLLEAGUE, ANYTHING ABOVE WHAT WE CURRENTLY ARE, I'M, I'M NOT INTERESTED IN RAISING THE TAXES ON OUR CITIZENS.
I JUST THINK WE NEED TO LOOK AT STRONGLY LOOK AT, IF WE JUST STAY WHERE WE ARE, THE DIFFERENCE, AGAIN, $5 A YEAR TO THE AVERAGE PERSON HOMEOWNER, UH, $5 A YEAR I THINK IS ACCEPTABLE CONSIDERING THAT WE WOULD LOSE MILLIONS ON THE IDA SIDE.
COULD YOU GO BACK TO THAT, YOUR FIRST SLIDE WHERE IT SHOWED THE IDA DIFFERENCE? SORRY.
SO IF WE STAYED AT, IT'S, IT'S 300 AND SOMETHING THOUSAND, WE WOULD LOSE IF WE, IF WE STAY WHERE WE ARE, IT'S 68 MILLION.
IF WE GO DOWN TO THE 69, IT'S 67 7 MILLION.
SO, SO IT'S 300 AND 200 AND SOMETHING THOUSAND DOLLARS COMPARED TO $5 TWO 30 TO RESIDENTS.
I MEAN THAT'S, WE GOTTA START LOOKING AT IT THAT WAY.
'CAUSE THE, THE IDAS ARE WHO GETTING THE REAL BENEFIT, UM, IF WE REDUCE DOWN TO THE NO NEW REVENUE.
YEAH, I I AGREE WITH WHAT YOU'RE SAYING IS THAT WE COULD LOOK INTO STAND WHERE WE ARE CAPTURING MORE OF THAT IDA REVENUE.
AND, UM, AND $5 A PERSON IS KIND AGAIN.
YES, IT RAISES YOUR TAXABLE VALUE, BUT FIVE BUCKS CONSIDERING THAT WE'RE LOSING AND I'LL ALSO ALMOST $300,000 FROM THE IDA SIDE.
MY COLLEAGUE, I'M NOT INTERESTED IN RAISING THE TAXES, BUT WE HOLD THE TAX RATE STEADY, HOLD THAT LINE, AND THEN WE CAN MOVE FORWARD.
IT GIVES US A LITTLE BIT MORE FLEX AS WE MOVE FORWARD.
42 CENTS A MONTH IS NOT EVEN A COKE.
IT SOUNDS LIKE BIG PICTURE WISE THAT, YOU KNOW, AS WE MOVE FORWARD WITH EXPLORING THESE OPTIONS, BIG PICTURE WISE, IT'S, IT'S ACTUALLY WHAT'S BETTER FOR THE COMMUNITY.
AND ULTIMATELY WHAT, WHAT YOU MENTIONED IN TERMS OF APPRAISAL VALUES STILL GO UP AND WE, YOU KNOW, THE STATE, WHETHER IT'S THE STATE OR WHETHER IT'S US, YOU KNOW, UH, INCREASING THE HOMESTEAD EXEMPTION, IT'S LIKE WE'RE NOT ALLOWING IT FOR THAT INCREASE IN APPRAISAL VALUE.
BUT WE CAN'T DO THAT UNLESS WE CONTINUE TO RAISE, YOU KNOW, WE COULD HAVE GOTTEN TO THE 77, BUT WE DON'T WANT TO GO THERE.
UM, AND UNTIL THE APPRAISAL VALUE STARTS MIRRORING THE MARKET, THEN THAT'S NOT GONNA DO US ANY GOOD.
I WAS JUST GONNA, I WAS WONDERING HOW MANY YEARS HAS, UH, BAYTOWN CONSIST, I'M SORRY, JACOB, GO AHEAD.
HOW MANY YEARS HAS BAYTOWN CONSISTENTLY BEEN LOWERING THE TAX RATE? BECAUSE I THINK WHEN I WAS A KID IT WAS IN THE EIGHTIES.
IT WAS, IT'S GONE FROM 83 TO 70 SINCE OVER, I BELIEVE INTO THE LAST FIVE YEARS.
AND WE'VE BEEN WORKING THAT'S GOOD.
BUT WE'VE GOTTEN TO A POINT, I THINK MY COLLEAGUE AT THE OTHER SIDE DOWN THERE, SHE'S KIND OF SEEING THAT WE'VE GOTTEN TO A POINT NOW THAT WE'VE GOT IT DOWN 'CAUSE IT WAS WAY TOO HIGH.
NOW IT'S TO THE POINT NOW WE NEED TO BE COGNIZANT OF WHAT THE RECIPROCAL IMPACT FROM THE IDAS AND THE OTHER ISSUES, YOU KNOW, THE VALUATION INCREASES.
WE NEED TO START BEING REFLECTIVE OF THAT AND, AND MOVE FROM THERE.
SO MY COLLEAGUE HERE IS A COMMENT.
NO, I WAS JUST GONNA SAY, I, I MEAN, I SAID EARLIER ON THIS YEAR THAT I THINK WE NEEDED TO STAY AT, AT NO NEW REVENUE AND I'M GONNA STAND BY THAT.
UM, I DON'T THINK WHAT WE'RE TALKING ABOUT HERE IS A DIFFERENCE OF LESS THAN $400,000 BETWEEN STAYING AT THE CURRENT RATE AND NO NEW REVENUE.
AND I DON'T THINK $400,000 IS WORTH THE, UM, THE OPTICS OF GOING ABOVE NO
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NEW REVENUE WHEN WE'RE TRYING TO GET A GO BOND APPROVED.UM, I DON'T WANT THAT TO BE VOTED DOWN.
UM, BECAUSE WE RAISED TAXES AND WENT OVER NO NEW REVENUE AND WE GOT $400,000 LESS THAN $400,000.
UM, COMPLETELY UNDERSTAND THE ARGUMENT OF STAYING AT NO NEW REVENUE FOREVER IS UNSUSTAINABLE.
AND I, I DO THINK WE'RE GONNA HAVE TO LOOK AT, UM, GOING OVER THAT IN THE FUTURE OR, AND WE'VE TALKED ABOUT WHAT ARE SOME OF THE OPTIONS, UM, YOU KNOW, TO, TO STILL CAPTURE THE IDA MONEY, BUT REALLY GIVE THE BENEFIT BACK TO THE CITIZENS.
UM, I MEAN, AND I THINK THERE ARE OPTIONS TO GO OVER NO NEW REVENUE, BUT, UM, WHERE WE'RE GETTING THAT ADDITIONAL IDA REVENUE, WE CAN, UM, YOU KNOW, WE CAN SUBSIDIZE WATER RATES A BIT OR TRASH PICKUP OR WE HAVE OTHER OPTIONS WHERE WE'RE STILL CAPTURING THE IDA MONEY AND ACTUALLY HELPING CITIZENS MM-HMM
UM, I JUST DON'T THINK, UH, I WANT TO RISK THE GO BOND FOR $378,000 MM-HMM
UH, SO I'M, I'M, I'M GONNA BE, YOU KNOW, I'M GONNA STAND FIRM ON, WE STICK TO NO NEW REVENUE THIS YEAR.
WE GET THROUGH THE GEO BOND, UM, AND THAT, AND THEN AS WE, YOU KNOW, WE'LL IMMEDIATELY START LOOKING AT WHAT DOES NEXT YEAR'S BUDGET LOOK LIKE? AND WE REALLY, WE NEED TO HAVE SOME CONVERSATIONS ABOUT WHAT ARE OPTIONS, UM, HOW DO WE GO OVER NO NEW REVENUE, BUT REALLY RETURN VALUE TO THE CITIZENS.
ANYONE ELSE? AND AND JUST TO BE CLEAR, EVEN THOUGH WE WOULD BE GOING ABOVE THE NO NEW REVENUE, IT WOULD STILL BE BELOW THE VOTER APPROVAL.
IT'S JUST THE LANGUAGE THAT THE STATE HAS GIVEN US THAT IT JUST SEEMS THAT WE'RE RAISING TAXES, BUT WE'RE STILL STAYING WITHIN THE RANGE OF NO NEW REVENUE.
UM, BUT FOR THE FUTURE, WE START TO LOOK AT HOW MUCH DO WE WANT TO GO OVER.
UM, IT'S STILL BE, IT WOULD STILL BE BELOW THE VOTER, UH, APPROVAL RATE.
YOU KNOW, I LIKE THE COMMENTS ABOUT THE IDA, UM, I BELIEVE IDA IS OVER IS ABOUT 60% OF OUR BUDGET.
AND WE EARN A THOUSAND TO SOME PEOPLE.