Travis County Commissioners Court

June 5, 2012 - Item 17
Agenda

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>> 17 is to consider and take appropriate action on assumptions for Travis County regarding the following: a, property tax considerations, and b, 2012 parcel fee rate.

>> And for the property tax considerations for the county, we're recommending the same as for

>> [inaudible] districts, and again, those are 100% anticipated collection rate, no debt buy-down, the greater of $5,000 or 20% for the optional homestead exemption and no action on the over 65 and disabled and historic exemption.

>> You all went

>> [inaudible] the anticipated collection rate?

>> I'm sorry?

>> Did you all work with the auditor's office?

>> This anticipated collection rate is used specifically in the effective tax rate calculations and it's different than the collection rate the auditor's office uses, certifying anything less than 100% would lower next year's effective tax rate since our current collection rate is high at about 98, 99%.
If we collected over 100% we would have to deduct that from next year's effective tax rate calculation.

>> Okay.
And what did you say about the parcel rate?

>> For the parcel rate I haven't done over that yet but I can.

>> Please do.

>> For the parcel rate calculation we've attempted to fairly allocate the expenses we incur while assessing collecting for the jurisdictions other than the county, and we've submitted our costing model and calculation to you in our backup material.
Our current 2011 rate is 96 cents, and our new 2012 rate came out at 7 cents higher than that, $1.03, and we're to bring that increase to an increase in our

>> [inaudible] personnel costs, which include a 3.5 increase in compensation a 5.5 increase in health care and a 5% increase in retirement funding.
In addition to that we've added a new internal automaticker position in our accounting -- auditor position in our accounting department and we've factored that into the calculation as well.
Revenue at the $1.03 rate, it's projected to be 1.6 million which is about $100,000 more than last year's projected revenue so we're recommending the court adopt the parcel fee rate of $1.03.

>> And that's how we've calculated the rate historically?

>> Yes.

>> Questions?
Comments?

>> I have a question.
With regard to the possibility of collecting more than 100%, we have recently changed practices with regard to overcollections when we double collect as far as informing taxpayers?

>> I think you're talking about the issuance of tax refunds?

>> Uh-huh.

>> And I think renee has something to say about that.

>> Yes, this collection rate that she's talking about has nothing to do with the refunds, and yes, we have always worked very hard to make sure that we send the refunds out timely, and we have lowered that number substantially.
But her effective tax rate, the reason it could go over 100% is because there are other factors that you figure in, such as the prior year or the penalty and interest and things.

>> Yeah, the penalty and interest and everything in addition just to the original base tax is part of our collection, and we're telling the effective tax rate, we need this much revenue and this much for debt this year, and that's what our tax rate is based on, and then there is adjustments during the year with values, so we might actually be collecting more than we're telling the effective tax rate calculation we need on July 25.

>> Okay.
So the issue with individuals accidentally double paying doesn't figure into an over 100% collection.

>> Absolutely not.
That's correct.

>> Move approval of the proposed property tax considerations as well as it the 2012 parcel rate, parcel fee rate of $1.03.

>> Yes.

>> Second by Gomez, discussion on the motion?
All in favor, that passes by a unanimous vote.

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