Travis County Commissioners Court
July 28, 2009,
Item 23
23.
receive and discuss the third revenue estimate for the fiscal year 2010 budget process.
>> good morning, judge, Commissioners, I'm blaine keith with the auditor's office.
in the preliminary budget, you should have had your third revenue estimate for this budget process.
it's -- it's very little change.
slight increase in the tax rate because of a change in the av.
we did get the certified tax rolls, that is taking into account in this revenue estimate, the general funds about 449.9 million.
that's up about two million from -- from the second estimate, that's all really fund balance.
our forecasted revenues went up a little bit and p.b.o.'s forecast of expenditures went down.
about the same amount.
the current revenue for next year is -- is almost unchanged.
there are a couple of small -- small budget request packages in this revenue estimate, that's their request of p.b.o., constable one and constable 2.
the other funds, two things that I think highlight is that the beginning balance of road and bridge fund is up quite a bit in this estimate.
our forecasted revenue stayed almost exactly the same.
but the forecasted expenditures went down over a million dollars.
i think they can give some credit for p.b.o.
for asking t.n.r., very hard to look at some of their forecasts for this year.
also we have one new fund in this estimate, it was not in the -- in the second estimate.
the juvenile case manager fund.
its revenues derived from fines from misdemeanors and by and large the expendture is limited for this use for staff working in -- in basically truancy cases.
so that is in there.
that was not in the second estimate.
other than that really not much change.
between the two revenue estimates.
dramatically little.
most unusual.
we would be glad to answer any questions.
that you have on this estimate.
>> questions.
>> questions?
okay.
i see on the -- on the -- when I look at the budget overview, first page of the individual expenditures, at the top I see fy '09 budget $451 million.
then I see the third revenue estimate, 449.
the difference I guess of roughly two million $.
>> yes, I mean this estimate -- this estimate is -- is down a little bit from the current budget.
now of course your current budget has a few things that are certified either mid year or late mid revenue process, so there are a few things in your revenue estimate for -- I mean revenue for '09 that we have addressed in 410.
but there are some significant -- significant reductions that -- basically you have pretty close to the same budget as last year.
>> about two million less.
>> about 1.85 million less.
at this point.
again, '09 has things that may come in later in this process or maybe certified, things like grants and weatherization contracts.
that kind of artificially raises the '09 budget.
but right now you are about 1.8 million shorter than where you are right now.
>> okay.
>> and this is a third revenue estimate and typically we would get what two more between now and the end of the fiscal year?
>> right.
and -- and as usual, if something would come in that would dramatically change your thinking, whether the estimate was due or not, we would notify you and p.b.o., if something happened in revenue that would change your thinking.
but we're not seeing a lot of -- of movement, the things that -- that really were down like interest revenue, I mean, we expect they are still going to be down, that's one of the reasons that you're seeing even with the very small tax increase that you are contemplating, we are still less than the budget of fy '09 because there were -- there were things that -- that were down and -- that we are just not going to collect in fq 2010.
just fyi, too, on the central appraisal district, I mean, our analysis based on the information we got from them is 17% of the property value is in appeals.
so that's very, very large and the appraisal district is working through those.
but those are not all, have not all -- you know, concluded and -- again if it's current property and they are just talking about value, what that does is it moves the effect of tax rate -- effective tax rate.
what does make a difference is if those people appeal and they lose then they litigate.
that's another group, if they are litigating, how much do we actually have to refund because most people pay their taxes and litigate.
third proper vehicles is that businesses -- proper vehicles is that -- projection is that businesses will not be able to pay their taxes.
in this economy we are seeing a fair number of bankruptcies.
in bankruptcies property taxes are a high priority, but we probably won't get them in the same fiscal year, usually takes a year or two out to get the money.
they won't be certified in the year that they are due, but we would get them.
so there's a lot of pieces, a lot of estimating and -- and trying to figure out what's the right number.
i might add when you have the -- the waller creek presentation as well as the veterans that has been integrated into this revenue estimate, so -- so you need to understand those but as far as the numbers are concerned blaine has got everything in there.
>> let me ask you susan, that 17% statistic, 17% of all real property, or taxable property period?
>> [one moment please for change in captioners] the time frame is clearly set out in state law.
it's not as though we or the appraisal district tore tax assessor has any authority to change any of that, and the valuations that they are coming up with for what we're going to send bills out in October was what the property was worth in January.
and so that is probably one of the things that's causing people consternation because if there has been an actual or perceived change in value from January forward, that really doesn't apply.
it will apply to next year.
>> uh-huh.
>> a year.
but it will not apply to the tax bills that we are sending out for fy 10.
>> that will have a affect in 2010.
>> it will.
yeah.
and again, just plain changes in value -- at the elective rate, don't really change the amount of money at the effective rate, but it certainly does change what you get on new property.
and one of the big differences in f.y.
10 is the projection that new property will be significantly less than this year.
and so if that's true, then that makes a difference.
and if that new property is valued less, that really makes less money coming in.
but the reshuffling of the crept property under the effective tax rate kind of its like -- I mean I think it's like a balloon filled with water.
you push your fist in and it moves someplace else.
that's what the effective tax rate calculation does.
but we're all giving this our highest priority.
the tax office and the county attorney's office is working closely together.
our accounting people do a lot of analysis on what they think the collections are going to be and litigation and blaine and carol are looking at everything so I guess, you know, we're giving you our best effort but it's not going to be a perfect effort because we've not seen an economy like this before.
>> so the taxable value of the property, and I guess the latest that the appraisal district has put out, mr.
brown and his staff at the appraisal district, I guess p.b.o.
would you have any information on anything as far as talking to mr.
brown to look at what the taxable value is of all of Travis County where it was and where it is now I guess as far as the latest?
have you guys had anything?
>> well, what we know is the 17% has been appealed.
and so some of those are done.
>> right.
but -- go ahead.
i'm sorry.
i didn't mean to cut you off.
>> some of that has been completed and they will work through that.
the deadline has passed when you can protest.
>> yeah.
>> and then the central appraisal district will look at and then there's an appraisal review board can go to.
if a taxpayer is still in disagreement they can file suit in district court.
so that process is fairly long in terms of the value.
i think the -- the district is working as quickly as they can to come up to, you know, a fair assessment, it's just you are talking about 17% of the value of the roll.
that's a lot of appeals out there and so they are looking at those.
i'm sure you did, but for the first time this year I actually got in my mailbox people who are specializing to help you appeal your taxes.
>> oh, really?
>> yeah.
when you get that in the mail, gee,
>> [indiscernible].
as I said, it is a very -- the process is clearly laid out in Texas law and that's what's followed.
and it is not uncomplicated.
>> so in looking at all of this, looking at what the rate was, 42, 32 before and gone up to -- it's increased slightly, but 254, so is that actual indication of the -- addressing some of the deals?
>> yes.
>> a lot of that is because we used 98 billion in the second revenue estimate.
>> pardon me?
>> we used assessed value of 98 bill.
it dropped to 97.6.
when it drops your rate is going to go up for the effective tax rate calculation.
that's why that moved.
>> that's -- and that's why I asked the question as far as the amount of money as far as the type of value and if it dropped down from 98 billion to 97, that reflects that and then there are other relationships also with this increase -- with this increase of the net, and I think you did mention something about the -- the veterans situation as far as
>> [indiscernible] that may not -- that may also be configured in some of this increase.
so it would be that plus veterans exemption, disabled veterans, who well deserve it, should be all I guess intertwined in this calculation here.
and I'm just assuming the first part, of course, and, of course, we realize that the veterans out there that will actually be applying for those that have disability and others -- factors, it's factored into this figure.
>> the appraisal district considered that in their appeals figure because they don't know what it's going to be.
people are going to have to apply for this.
so what's going to happen is as people apply for it and we find out we have to give money back to them, that will effect the refund.
so that's taken into account in the appeals figure and eventually it will get -- in future years it will affect the assessed valuation itself.
>> right.
>> yeah, and we considered that in our estimate so far with the information we have that that's about a loss of 1.4 million.
that that's what that runs out to be, and again, that's an estimate at this point.
like blaine said they have to apply.
many will probably pay their taxes and we'll have to refund.
so there's an estimate out there and, you know, just because you collect it doesn't mean you get to keep it.
>> that's right.
>> so there's a lot of moving pieces.
>> this is helpful.
p.b.o.
got the budget yesterday based on the third revenue estimate.
thank you.
>> thank you.
>> anything relating to the third revenue estimate?
>> were you talking about other items number 24?
>> we're talking only about the third revenue estimate, which is number 23.
The Closed Caption log for this Commissioners Court agenda item is provided by Travis County Internet Services. Since this file is derived from the Closed Captions created during live cablecasts, there are occasional spelling and grammatical errors. This Closed Caption log is not an official record the Commissioners Court Meeting and cannot be relied on for official purposes. For official records please contact the County Clerk at (512) 854-4722.
Last Modified:
Tuesday, July 28, 2009 2:31 PM