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Property Tax Impact

Information from the Tarrant Appraisal District shows an increase in net assessed values for
2018/2019. New residential and commercial construction supplemented by a hot residential
market have increased property appraisals by $487,254,968 or 9.4%. Of this increase
$54,435,171 occurred within the two remaining Tax Increment Financing Districts (TIF) and
is captured there. This will accelerate the time-line for the TIF’s to complete their financing
plan, but this growth is not available to fund normal operating costs or city debt service. In
addition roughly $60 million in net value growth is not considered as taxable since it is
subject to tax ceilings for individuals over the age of 65 or who are disabled. The end result
is a net increase of $1,945,472 in tax revenue at the proposed $0.585 tax rate. Of this
amount $632,156 is obligated to pay for existing and anticipated tax supported debt service.
Incidentally, $454,771 in new tax revenue is attributed to $77,738,650 in new construction
added to the rolls.

The FY 2018/2019 General Fund Budget decreased the property tax rate from
$0.59 per $100 of assessed taxable valuation to $0.585 per $100 of assessed
valuation. The average taxable value of an NRH residence for 2018 is $184,000,
which will incur an annual city tax bill of $1,076. The average taxable residential
value for 2017 was $170,000 which incurred an annual city tax bill of $1,003. The
lower tax rate of $0.585 will result in an increase for the average residential property of
$73 per year which is an increase of 7.3%. For reference purposes, each penny on the
tax rate produces $432,142. The increase or decrease of a penny on the tax rate
will impact the average residence by $18.40 on their annual tax bill.

The 2018/2019 budget includes additional street maintenance funds, staffing for a
fourth ambulance and hiring two additional Police Patrol Officers. The three program
additions have a total cost of $663,210 the equivalent of about 1.53 cents on the tax
rate.

Parks and Recreation Facilities Development Fund

The primary source of funding to the Parks and Recreation Facilities Development Fund is
the voter approved ½ cent sales tax. Sales tax is projected to increase by about 2% based
on the opening of Babe’s Chicken Dinner House and Alamo Draft House in the next
fiscal year. Revenue from the NRH Centre, including the Grand Hall, is the other
significant source of funding. Although Centre membership revenues are down compared
to the 2017/2018 adopted budget, revenues from Grand Hall rentals as well as classes
and programs at the Centre are up significantly. The NRH Centre is still able to
contribute to facility reserves covering costs for maintenance and upkeep such as the pool
plaster replacement scheduled for next fiscal year. Overall, the Park Facilities Development
Fund is able to fund necessary maintenance projects for our parks and trails, and is able
to fund the cost of design for the renovation of Linda Spurlock Park which will begin
next fiscal year. Work on the renovation of Northfield Park started almost one year ago,
and is on track for completion at the end of September.
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