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NICOLE CONLEY: I'D LIKE TO CALL THE TRAVIS CENTRAL APPRAISAL
[1. Call To Order]
DISTRICT BOARD OF DIRECTORS MEETING TO ORDER. THE TIME IS EXACTLY 11:30 ON THURSDAY, JUNE 11, 2026. WE'RE CONDUCTING THIS MEETING AT TRAVIS CENTRAL APPRAISAL DISTRICT HEADQUARTERS, LOCATED 850 EAST ANDERSON LANE, AUSTIN, TEXAS, AND A QUORUM IS[2. Establishment Of A Quorum]
PRESENT. WE ALSO ARE PROVIDING THIS MEETING THROUGH ONLINE BROADCAST AND WITH CLOSED CAPTIONS AS A COURTESY. SO, THE FIRST ITEM ON OUR AGENDA, AS ALWAYS, IS CITIZENS[3. Citizens Communication]
COMMUNICATIONS. I UNDERSTAND THAT WE HAVE ALL RIGHT. CITIZENS WILL BE GIVEN THREE MINUTES TO ADDRESS THE BOARD, WHETHER GIVING A COMPLAINT OR PRAISE, MEMBERS OF THE PUBLIC ARE ASKED TO REFER TO STAFF MEMBERS BY POSITION OR BY THEIR ABBREVIATED LAST NAME. WHILE CITIZENS MAY SPEAK ON ANY TOPICS THEY CHOOSE, THE BOARD CANNOT ACT OR COMMENT ON ANY SUBJECT NOT LISTED ON TODAY'S AGENDA. I KNOW WE HAVE TWO PERSONS SIGNED UP TO SPEAK.MISS MANN, LEANA MANN: YES, MISS SHANA CROMWELL IS GOING TO BE OUR FIRST SPEAKER.
TRAVIS COUNTY TAXPAYER: HELLO, AM I GOOD TO GO AHEAD AND GO? CELIA ISRAEL: YES. GOOD MORNING.
TRAVIS COUNTY TAXPAYER: OKAY. GOOD MORNING, MEMBERS OF THE BOARD. MY NAME IS SHAYNA CROMWELL, AND I AM A RESIDENT AND HOMEOWNER HERE IN TRAVIS COUNTY. I'M HERE TODAY TO BRING YOUR ATTENTION TO A SYSTEMIC RIGID ADMINISTRATIVE POLICY ENFORCED BY THE APPRAISAL DISTRICT STAFF THAT IS ACTIVELY HARMING VULNERABLE DISABLED RESIDENTS WHO ARE TRYING TO NAVIGATE OUR PROPERTY TAX SYSTEM. FOLLOWING THE PASSAGE OF PROPOSITION 11 ON THE NOVEMBER 2025 BALLOT, MY HOUSEHOLD APPLIED FOR THE DISABLED PERSON'S HOMESTEAD EXEMPTION UNDER TEXAS TAX CODE SECTION 11 DOT 13. WE WERE DENIED BY THE APPRAISAL DISTRICT FOR ONE REASON. MY SSDI CLAIM IS CURRENTLY IN PROCESS. AT MY APPEAL HEARING, I WAS TOLD THAT THE APPEALS BOARD LACKS JURISDICTION TO OVERRIDE THE TCAD DECISION FOR DISABLED PERSONS EXEMPTION. TEXAS LAW DOES NOT MANDATE AN SSDI AWARD LETTER. IN FACT, OTHER COUNTIES ACROSS TEXAS, INCLUDING WILLIAMSON COUNTY, CONTINUE TO ALLOW THE USE OF A PHYSICIAN STATEMENT FORM TO VERIFY DISABILITY. TRAVIS COUNTY USED TO ACCEPT THIS LETTER AS WELL, YET THIS OFFICE HAS CHOSEN TO IMPLEMENT A RIGID BLANKET SSDI LETTER REQUIRED RULE. THIS POLICY TRAPS DISABLED RESIDENTS IN A BUREAUCRATIC NIGHTMARE, PUNISHING THEM FOR A YEARS LONG FEDERAL PROCESSING BACKLOG OVER WHICH THEY HAVE ABSOLUTELY NO CONTROL. TEXAS DISABILITY RIGHTS PROVIDED A FORMAL LETTER THAT YOU SHOULD HAVE IN FRONT OF YOU. THE LETTER HIGHLIGHTED THE GAPS BETWEEN COUNTY POLICY AND SECTION 1113 SPECIFICALLY, THEY SAY THAT TEXAS' USE OF THE WORD "QUALIFY" INDICATES THAT THE PERSON NEED ONLY MEET THE SSA REQUIREMENT TO RECEIVE BENEFITS.
TEXAS'S DICTION INTENTIONALLY DOES NOT REQUIRE, NOR SUGGEST THAT AN INDIVIDUAL ACTUALLY RECEIPT OF SSDI OR SSI PAYMENTS IS REQUIRED FOR EXEMPTION QUALIFICATION. ADDITIONALLY, THEY HIGHLIGHT THAT THE PROCESS CAN TAKE UP TO SIX YEARS. I WOULD LIKE TO POINT OUT THAT THE PROCESSING TIME FOR INITIAL APPLICATIONS IN TEXAS IS DOUBLE THE NATIONAL AVERAGE AND TAKES OVER A YEAR. FURTHERMORE, THE ENTIRE ADMINISTRATIVE PROCESS IS COMPLETELY BROKEN FOR DISABLED EXEMPTIONS, EVERY SINGLE FORM, WEB PAGE, PIECE OF PAPERWORK THAT I HAVE BEEN PROVIDED BY THE DISTRICT IS SET UP ENTIRELY FOR PROPERTY VALUE APPEALS. NONE OF IT IS BUILT FOR DISABLED HOMEOWNER EXEMPTIONS. MY FAMILY IS NOW FORCED TO INITIATE A FORMAL LAWSUIT IN DISTRICT COURT JUST TO SECURE AN EXEMPTION THAT WE ARE LEGALLY ENTITLED TO RECEIVE AND WOULD RECEIVE IF WE LIVE JUST FIVE MILES NORTH.
DURING THIS PROCESS, I REACHED OUT TO THE CHIEF APPRAISER VIA EMAIL TO DETAIL THIS GAP IN POLICY, EXPLAIN OUR SITUATION, AND ASK FOR CLARIFICATION ON ALTERNATIVE MEDICAL VERIFICATION. I RECEIVED ABSOLUTELY NO RESPONSE. WHILE YOU CANNOT INTERVENE AND INTERVENE IN MY INDIVIDUAL CASE, YOU DO HIRE THE CHIEF APPRAISER, APPROVE THE BUDGET, AND SET GENERAL OPERATIONAL POLICIES. I URGE THIS BOARD TO DIRECT MANAGEMENT TO REVIEW AND REFORM INTERNAL GUIDELINES, RETURN TO ALLOWING ALTERNATIVE MEDICAL DOCUMENTATION FOR THOSE WITH PENDING SSDI CLAIMS, AND ESTABLISH BASIC STANDARDS OF ACCOUNTABILITY FOR RESPONDING TO TAXPAYERS. THANK YOU FOR YOUR TIME.
NICOLE CONLEY: THANK YOU SO MUCH, MS. MANN. I ASK THAT YOU FOLLOW UP AS APPROPRIATE TO THE EXPRESS CONCERNS THAT WE CAN PROVIDE A SUFFICIENT RESPONSE. THANK YOU.
LEANA MANN: OUR SECOND SPEAKER IS JUDY GRACIE.
TRAVIS COUNTY TAXPAYER: HI, JUDY GRACIE. I AM HERE AGAIN. LAST TIME, LAST MONTH, I WAS HERE, AND YOU KNOW, MY PROBLEM IS, IS THAT IN 2024 MY LAKE PROPERTY WAS REAPPRAISED. THE FRONT FOOT FOR ME WAS APPRAISED AT 10,000 A FRONT FOOT AND THE ADJOINING PROPERTY MARKET AREAS WERE 4500 SO MINE WAS 55% MORE THAN PROPERTY FIVE MINUTES AWAY ACROSS THE LAKE, SO WE HAD TALKED LAST TIME ABOUT, YOU KNOW, HOW. I CANNOT SEE, I
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CANNOT SEE WHAT THEIR LAND ANALYSIS WAS, BECAUSE I DON'T OWN PROPERTY IN THAT THAT MARKET AREA. SO IT WAS DISCUSSED, SORT OF AFTER I WAS DONE TALKING, THAT I COULD GET THAT IF I FILED A PROTEST, BUT THAT WAS MISUNDERSTOOD. IT WAS FOR, BY YOU KNOW, BECAUSE THEY WERE JUST TALKING ABOUT MY LAND ANALYSIS, WHICH I'VE HAD FOR THE LAST, YOU KNOW, TWO YEARS. THIS IS MY THIRD YEAR IN TRYING TO RECTIFY THIS. SO, ANYWAY, SO I CANNOT RECEIVE THAT LAND ANALYSIS FROM MARKET AREA THAT'S FIVE MINUTES AWAY FROM ME, SO THAT'S AN ISSUE, YOU KNOW. HOW DO YOU, HOW DO YOU KNOW WORK ON WHY IS MINE 10,000 AND FRONT FOOT AND THEIRS IS 4500 AT LAST MEETING, YOU WERE PROVIDED WITH A, YOU KNOW, OTHER PROPERTIES THAT LOOK LIKE MINE, SAME ANCHORAGE THAT WERE, YOU KNOW, 1.5 1.7 MINE IS NOW 3 MILLION, AND IT CAME DOWN FOR THIS YEAR. LAST YEAR IT WAS 4.4 MY LOT IN 24 WENT UP FROM 700,000 TO 4.4 THIS IS A VERY UNEQUAL APPRAISAL, AND YOU KNOW, SO NOW THE OTHER THING THAT HAS HAPPENED IN THE LAST YEAR, AS I WAS, I WAS TOLD BY AN ATTORNEY HERE THAT AT A BOARD MEETING, THAT I COULD, THE ONLY REMEDY FOR GETTING YOUR LAND CHANGE WAS DISTRICT COURT. AFTER THAT, I WAS TOLD BY APPRAISERS THAT I COULD GO TO ARBITRATION, CALLED ARBITRATION, AND THEY SAID THEY DON'T HAVE ANY AUTHORITY TO REDUCE LAND VALUE, AND THAT'S MY PROBLEM. IT'S THE LAND VALUE, WHEN I, YOU KNOW, BECAUSE MY HOUSE VALUE HAS GONE IN A HUGE RANGE. SO THAT'S CURRENTLY WHERE I'M AT. I JUST WANTED TO TELL YOU THAT, AND I'M NOT RECEIVING THE ADJOINING MARKET ANALYSIS FOR THOSE, YOU KNOW, MY JOINING LAND AREAS. THANK YOU.NICOLE CONLEY: IS THAT IT, MISS MANN? LEANA MANN: SINCE IT'S NOT AN AGENDA ITEM, WE SHOULDN'T DISCUSS IT, BUT I WILL SAY THAT OUR ATTORNEYS HAVE ADVISED US THAT IF THE LAND ANALYSIS HAS CONFIDENTIAL SALES IN IT, AND SO YOU ARE NOT ENTITLED TO THAT, UNLESS YOU HAVE A PROTEST IN A PROPERTY IN THAT MARKET AREA, BECAUSE THEN THAT DATA WAS USED TO APPRAISE YOUR PROPERTY. SO WE'RE FOLLOWING THE GUIDANCE OF OUR LEGAL COUNSEL.
NICOLE CONLEY: THANK YOU FOR THAT CLARIFICATION. OKAY, MOVING ON. I ASSUME THAT CONCLUDES OUR CITIZENS' COMMUNICATION. WE'RE
[4. Consent Agenda]
MOVING ON TO THEIR CONSENT AGENDA, WHICH IS ITEM NUMBER FOUR. THESE ITEMS MAY BE ACTED UPON IN ONE MOTION. NO SEPARATE DISCUSSION OF VOTE WILL OCCUR UNLESS REQUESTED BY A BOARD MEMBER. THE CONSENT AGENDA INCLUDES APPROVAL OF THE MINUTES FROM THE MAY 14 MEETING, SECTION TWO 5.2 5B REPORT, ACCOUNTING STATEMENTS AND PERSONNEL REPORTS. I'LL GIVE OUR BOARD SOME TIME TO REVIEW THESE ITEMS AND REQUESTS FOR IT, AND MAKE THE REQUEST FOR ANY ITEMS THAT SHOULD BE PULLED FOR SEPARATE DISCUSSION. OTHERWISE, I'LL TAKE A MOTION AT YOUR CONVENIENCE.ELIZABETH MONTOYA: I MOVE TO APPROVE THE CONSENT AGENDA AS PRESENTED.
NICOLE CONLEY: THANK YOU. WE HAVE A MOTION BY MS. MONTOYA. DO WE HAVE A SECOND? MR. MORENO SECONDED BY MR. MORENO. SEEING NO FURTHER DISCUSSION, WE'LL TAKE A VOTE. ALL IN FAVOR OF APPROVING THE CONSENT AGENDA. ALL IN FAVOR, IT WAS UNANIMOUS APPROVAL. MOVING ON TO OUR REGULAR AGENDA, WE'LL MOVE INTO
[5. Regular Agenda]
ITEM FIVE, A DISCUSSION AND POSSIBLE ACTION ON THE TAXPAYER[A. Discussion And Possible Action On Taxpayer Liaison Officer Report]
LIAISON REPORT. I'LL TURN IT OVER TO MR. TRAN. GOOD TO SEE YOU THIS MORNING, SIR.TONY TRAN: GOOD MORNING, SO THE REPORT DOES INCLUDE DATA FROM THE ENTIRE YEAR UP TILL MAY 30-FIRST. HOWEVER, MY PRESENTATION IS GOING TO BE MORALLY FOCUSED ON MAY ACTIVITY IN MAY. SO, IN MAY, WE DID SEE A LIGHT, SLIGHT UPTICK FROM LAST YEAR. LAST YEAR, THERE WAS 102 INQUIRES. THIS YEAR, THERE WAS 107 SO ABOUT A 5% INCREASE FROM LAST YEAR. OUT OF THAT 107 70 WERE INITIATED BY EMAIL, 29 BY IN PERSON, AND EIGHT WAS BY PHONE. CONTINUING ON TO INQUIRY TYPE, AND IF WE CAN LOOK AT THE COMPLAINT LOG DETAIL, SO OUT. THE 107 86 WERE LEVEL 118 WERE
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LEVEL TWO, AND THERE WERE FOUR LEVEL THREE, WHICH THERE WAS A PERHAPS A MISTAKE MADE BY ONE OF THE ONE OF THE ONE DEPARTMENTS WE WERE ABLE TO RECTIFY THAT OUT OF THE OUT OF THE FOUR THREE WERE ABLE TO BE RESOLVED WITH THAT DEPARTMENT WITHIN THE SAME DAY. ONE TOOK A LITTLE BIT MORE RESEARCH, BUT IT WAS SUBSEQUENTLY RESOLVED WITHIN FIVE DAYS. ALSO, MISS CARTWRIGHT HAD ASKED ABOUT UNAUTHORIZED AGENTS IN THE LAST MEETING, SO WE START TRACKING THAT. MISS ARNOLD AND I STARTED TRACKING THAT MORE, AND SINCE THE 14TH OF LAST MONTH TILL THE END OF THE MONTH, WE HAD TWO INQUIRIES, OR TWO COMPLAINTS, REGARDING THAT ONE. AFTER RESEARCH WAS BECAUSE THE PROPERTY OWNER HAD JUST RECENTLY PURCHASED OUR PROPERTY, THE PREVIOUS OWNER WAS A BUILDER, AND THEY HIRED THE PROPERTY AGENT, TAX AGENT. TCAD DOES HAVE A SYSTEM SET UP IN PLACE WHERE IF THERE'S A DEED CHANGE, THEY REALIZE THAT THAT PROPERTY AGENT WAS HIRED BY THAT PROPERTY OWNER, SO THEY DID DO PUT A TAG ON IT, AND THEN LATER ON REMOVE THAT, SO THAT HAPPENED IN THAT INSTANCE. ANOTHER ONE, A PROPERTY OWNER FILED THEIR PROTEST, AND THEY WERE DILIGENT ON KEEPING TRACK OF THEIR PROTEST, AND THEY NOTICED THERE WAS AN AGENT THAT WAS PLACED ON THEIR ACCOUNT DURING THAT PROTEST PROCESS. I SPOKE TO THE PROPERTY OWNER, THEY MENTIONED THAT THEY HAD GONE ONLINE, CLICKED A FEW BUTTONS SOMEWHERE, AND MAYBE INADVERTENTLY ADDED THEM AS THEIR AGENT. SO, WHAT WE'RE RECOMMENDING NOW IS SO THEY COMPLETE THE REVOCATION FORM WITH TCAT, BUT ALSO REACHING OUT TO THOSE AGENCIES TO LET THEM KNOW THAT THEIR SERVICES ARE NO LONGER REQUIRED, BECAUSE AGENCIES IS LIKE A SUBSCRIPTION BASE WHERE THEY'RE CONTINUING THEIR SERVICES YEAR IN, YEAR OUT, SO FOLLOWING YEAR THEY MAY SEND ANOTHER AUTHORIZATION FORM, IN WHICH TCAD IS NOT GOING TO BE ABLE TO LOOK THROUGH EACH SINGLE ONE AND MAKE SURE THAT THAT WAS REVOKED OR WHATNOT. SO WE'RE RECOMMENDING THAT THE PROPERTY OWNERS ALSO REACH OUT TO THE AGENCIES, BUT THEY NO LONGER WANT THEIR SERVICE TO LET THEM KNOW, SO THAT THEY KNOW THEY THE FOLLOWING YEAR DON'T HAVE TO RUN INTO THE SAME ISSUE AGAIN. AND THEN, REGARDING INQUIRY TYPES, SO THE BULK OF IT NOW COMING IN, I THINK ABOUT 55% IN MAY WAS DUE TO MARKET VALUE, AND WE DO ANTICIPATE THIS TREND TO CONTINUE BECAUSE WE ARE IN THE MIDDLE OF THE PROTEST SEASON, SO WE'RE EXPECTING THAT, AND INQUIRES BY ZIP CODE, NOT MUCH CHANGE THERE, WE DID HAVE AN UPTICK IN KIND OF NORTH AUSTIN, LIKE TECH RIDGE AREA, REGARDING MARKET VALUE INQUIRIES, BUT OTHER THAN THAT, IT WAS PRETTY MUCH THE SAME WEST PART OF TOWN HAVING MORE MARKET VALUE INQUIRIES, AND THEN THE EAST PART, INCLUDING DEL VALLE, HAVING MORE INQUIRIES REGARDING EXEMPTIONS AND THINGS OF THAT NATURE, BUT THAT DOES INCLUDE MY PRESENTATION. OPEN TO ANY QUESTIONS.NICOLE CONLEY: THANK YOU, MR. TRAN. WE HAVE A QUESTION FROM MS. CARTWRIGHT, AND THEN IT'LL BE SECOND BY MS. ISRAEL.
DEBORAH CARTWRIGHT: NOT A QUESTION, JUST A COMMENT. THANK YOU SO MUCH FOR DOING THE PERSONAL FOLLOW-UP ON THE AGENCY MATTER. I THINK IT REALLY HELPS PEOPLE TO UNDERSTAND WHAT'S GOING ON AND GET A PERSONAL EXPLANATION, SO THANK YOU VERY MUCH FOR DOING THAT.
CELIA ISRAEL: YOU MENTIONED A DESIRE HABIT THAT YOU WOULD LIKE THE TAXPAYER TO FOLLOW UP WITH THAT AGENCY TO SAY YOU HELPED ME LAST YEAR, YOU'RE NOT, YOU'RE NOT MY CONTRACTOR THIS YEAR. WAS THAT, IS THAT A COMMUNICATION POLICY THAT WE'RE RECOMMENDING THAT WE WORK ON AS AN ORGANIZATION, OR WAS THAT YOUR ADVICE TO ONE PERSON? TONY TRAN: THAT'S MY ADVICE TO THE PROPERTY OWNERS CELIA ISRAEL: IN THAT ONE INSTANCE.
TONY TRAN: YES, MA'AM. AND THAT'S WHAT WE'RE TELLING PROPERTY OWNERS, MYSELF, AS MISS ARNOLD, AS WELL, TELLING PROPERTY OWNERS GOING FORWARD, IF THEY DO DECIDE TO REVOKE AN AGENT AGENCY, THAT TO GO AHEAD AND NOT ONLY SUBMIT THE FORM TO US, BUT ALSO CONTACT THESE AGENCIES, BECAUSE, AS MENTIONED, THEY'RE, THEY'RE, THEY, THEY RENEW, LIKE, KIND OF LIKE A SUBSCRIPTION WHEN YOU HIRE THEM, SO THE AGENCY MIGHT NOT KNOW THAT THEIR SERVICE OWNER IS NO LONGER WANTED BY THE PROPERTY OWNER, AND THEY MAY SUBMIT THAT SAME FORM NEXT YEAR, SAY THAT THEIR AGENCY ON FILE FOR THAT PROPERTY OWNER.
CELIA ISRAEL: SO IT'S A GOOD GOAL. I'M JUST WONDERING, IF THIS IS, HOW DO WE COMMUNICATE TO TAXPAYERS TO SAY YOU HAD THIS AGENCY BEFORE? I'M JUST WONDERING WHAT THE ORGANIZATION IS DOING TO COMMUNICATE, WHAT WOULD BE A GOOD COMMUNICATION PROTOCOL.
LEANA MANN: TAKE THAT ONE. SO, GENERALLY, OUR ADVICE TO PROPERTY OWNERS IS THEY HAVE A CONTRACT WITH THEMSELVES AND AN AGENT. WE ARE NOT A PARTY TO THAT CONTRACT, SO OUR GENERAL COMMUNICATION IS THAT THEY SHOULD REVOKE THE AGENCY, AS WELL AS LETTING THEM KNOW THE AGENT, CELIA ISRAEL: HOW DOES THAT HAPPEN? I GUESS I'M ASKING A MECHANICAL COMMUNICATIONS LINE OF LEANA MANN: WE USUALLY FIND OUT DURING AN INFORMAL MEETING OR PHONE CALL FROM A PROPERTY OWNER, FORMAL HEARINGS, SO THEY'RE USUALLY HERE WITH US IN DISCUSSIONS, AND IT COMES UP, AND THAT'S WHEN WE TELL THEM THAT, CELIA ISRAEL: BUT THERE'S NOTHING PREEMPTIVELY THAT WE CAN DO. OR UNTIL YOU, UNTIL YOU SEE THAT REALLY THAT CONTRACT, THAT
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THAT AGREEMENT THAT MIGHT BE NOW PAST DUE, TO SELL TO TELL THEM YOU NEED TO REVOKE THIS.LEANA MANN: YEAH, THERE'S NO WAY FOR US TO PROACTIVELY KNOW IF THEY WOULD NOT LIKE TO WORK WITH THAT AGENCY AGAIN.
UNFORTUNATELY, CELIA ISRAEL: THANKS, NICOLE CONLEY: MR. LAVINE.
DICK LAVINE: I'M NOT CLEAR. DOES THE NOTICE OF APPRAISED VALUE GO TO THE TAXPAYER OR TO THE AGENT? LEANA MANN: IF THEY HAVE AN AUTHORIZED AGENT ON THEIR ACCOUNT, IT GOES TO THE AGENT.
DICK LAVINE: SO, THE HOME.. WHEN.. WHEN DOES THE HOMEOWNER FIND OUT? LEANA MANN: THEY WOULDN'T, THEY, THE NOTICE IS AVAILABLE ON THE WEBSITE, SO THEY COULD GO DOWNLOAD IT, BUT IT'LL BE ADDRESSED TO THEIR PROPERTY TAX AGENT, DICK LAVINE: RIGHT. BUT IF THEY'RE JUST YOUR AVERAGE PASSIVE HOMEOWNER, THEY'LL JUST GET A LITTLE NOTICE IN THE MAIL THAT THEIR APPEAL HAS BEEN HANDLED BY THEIR AGENT, AND THIS IS THE RESULT.
LEANA MANN: THEY WON'T EVEN GET THAT ONCE THAT AUTHORIZED AGENT IS SET UP IN OUR SYSTEM, WE HAVE TO COMMUNICATE WITH THE AGENT.
ALL COMMUNICATIONS GO THROUGH THE AGENT UNTIL IT'S REVOKED, DUSTIN BANKS: AND THAT'S ASSUMING THEY ELECTED ON THE COMPTROLLER FORM. YOU CAN ELECT TO THE AGENT, CAN ELECT TO RECEIVE THE COMMUNICATIONS ON BEHALF OF THE PROPERTY OWNER.
THEY CAN ALSO ELECT TO HAVE THE PROPERTY OWNER RECEIVE THOSE COMMUNICATIONS, SO IT'S DEPENDENT ON WHAT THEY ELECT ON THE COMPTROLLER FORM.
DICK LAVINE: COULD WE SEND A NOTICE TO THE TAXPAYER IN ADDITION TO THE AGENT, SO THE TAXPAYER'S AWARE THAT'S GOING ON? LEANA MANN: WE COULD SEND THE NOTICE OF APPRAISED VALUE AND DUPLICATE IT, WOULD OF COURSE DOUBLE OUR COST, BUT YES, WE COULD DICK LAVINE: DOUBLE, BECAUSE THERE'S SO MANY REPRESENTED BY AGENTS, LEANA MANN: AND WE USED TO DO THAT ABOUT A DECADE AGO. WE QUIT DOING THAT WHEN WE MADE THE NOTICES AVAILABLE ONLINE, SO THEY CAN STILL GO SEARCH FOR THEIR PROPERTY ON THE PROPERTY SEARCH AND DOWNLOAD A COPY.
CELIA ISRAEL: MADAM CHAIR, FOLLOW-UP QUESTION: WHEN SOMEONE.. I'VE NEVER HAD AN AGENT BEFORE, BUT IF YOU, IF YOU CONTRACT WITH AN AGENT, IS THERE SOMETHING IN THE, IN THE STANDARDS OF THAT BUSINESS THAT SAY YOU ARE, WE REPRESENT YOU UNTIL YOU TELL US WE'RE NOT? DO THEY SIGN SOMETHING TO THAT EFFECT? LEANA MANN: THE FORM ITSELF SAYS THAT DUSTIN BANKS: THERE COULD BE AN AUTOMATIC REVOCATION DATE, BUT THE INDUSTRY STANDARD IS TO HAVE IT IN PERPETUITY.
CELIA ISRAEL: IS THERE A TIME, OR THIS IS NOT, I GUESS, JUST SOMETHING FOR YOU TO CONSIDER. IS IS THERE A WAY FOR US, AS A MATTER OF ROUTINE IN OUR COMMUNICATION WITH TAXPAYERS, SO THAT WE'RE NOT DOING AN EXTRA MAILER, BECAUSE THAT'S IT'S NOT SMART, BUT TO SAY TO THEM, IF YOU USE AN AGENT AND THEN YOU DECIDE NOT TO USE AN AGENT, YOU HAVE TO PROACTIVELY TERMINATE THAT AGREEMENT.
DUSTIN BANKS: YES, I THINK THAT'S WE COMMUNICATE CELIA ISRAEL: THAT AT ANY POINT, DUSTIN BANKS: ABSOLUTELY, AND JUST EDUCATE THEM ON THEIR RIGHTS, THEY CAN REMAIN IN THAT CONTRACTUAL OBLIGATION, BUT IF THEY DO, THEN THAT'S WHO'S RECEIVING THEIR COMMUNICATIONS, AND IF THEY CHOOSE TO REVOKE, BECAUSE IT'S THERE, WE CAN'T INTERFERE WITH THE CONTRACTUAL OBLIGATION, IT'S EDUCATING THEM ON THEIR RIGHTS, WHETHER THEY WANT TO REMAIN IN THAT CONTRACTUAL OBLIGATION OR IF THEY INTEND TO EXIT THAT CONTRACTUAL OBLIGATION, FILE A REVOCATION THAT WOULD END THAT CONTRACTUAL OBLIGATION, CELIA ISRAEL: SO WE ARE DOING THAT NOW.
DUSTIN BANKS: I, IT SOUNDS LIKE INFORMALLY, YES, BUT I DON'T THINK WE HAVE UNEQUIVOCAL.. I'M UNAWARE OF US HAVING LIKE A...
CELIA ISRAEL: I GUESS WHAT I'M ASKING IS THAT THE ONLY TIME WE ROUTINELY COMMUNICATE IS WHEN THEY GET THEIR NOTICE OF APPRAISED VALUE, AND IN THAT NOTICE OF APPRAISED VALUE, IS IT REALISTIC TO SAY TO THEM, IF YOU HIRE SOMEONE, THIS IS THIS IS AN ONGOING RELATIONSHIP, DUSTIN BANKS: AND I'D HAVE TO GO. IT'S BEEN A WHILE SINCE I'VE READ, LIKE, THE FINE PRINT OF THE NOTICE APPRAISED VALUE, BUT IT MAY SPEAK TO THAT IN SOME CAPACITY.
LEANA MANN: SO, WITH EACH NOTICE, WE ARE REQUIRED TO ALSO ATTACH SOME RESOURCES FROM THE COMPTROLLER'S OFFICE, MAINLY THE TAXPAYERS' RIGHTS AND REMEDIES. IT DOES TALK A LITTLE BIT THROUGH THAT, BUT AGAIN, IF THEY HAVE AN AGENT, THEY'RE NOT GOING TO GET THE NOTICE TO GET THAT INFORMATION.
CELIA ISRAEL: YEAH, LEANA MANN: WE COULD ADD SOME INFORMATION TO OUR WEBSITE, THOUGH.
CELIA ISRAEL: THAT'D BE GOOD. I KNOW IT'S ALL OVERWHELMING, BUT LEANA MANN: IT'S A LOT FOR TAXPAYERS. THERE'S SO MANY NUANCES WITH THE SYSTEM, BUT I THINK IT IS PRUDENT TO SAY THAT TAX AGENTS ARE A REGULATED INDUSTRY. THEY HAVE ETHICAL STANDARDS, THEY'RE REGULATED BY TDLR, JUST LIKE APPRAISERS ARE.
SO THEY HAVE SOME ETHICAL REQUIREMENTS THAT THEY HAVE TO FOLLOW AS WELL.
CELIA ISRAEL: I THINK IT'S WORTH CONSIDERING, AND HOW WE COMMUNICATE THIS, BECAUSE IT'S, IT'S A GROWING RELATIONSHIP, WHICH IS A CHALLENGE FOR US TO MAKE SURE THAT WE ARE BEING AS CONNECTED TO THE TAXPAYERS AS POSSIBLE. WE WORK FOR THEM, SO I JUST THINK IT'S WORTH THINKING ABOUT HOW THAT, HOW THAT'S ALL HANDLED AS IT BECOMES A BIGGER AND BIGGER. YOUR PORTION OF OUR,
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OF OUR WORK, LEANA MANN: WE CAN DISCUSS WITH SOME OUTSIDE ATTORNEYS. IF WE CAN COMMUNICATE WITH THE PROPERTY OWNER ONCE THEY HAVE AN AUTHORIZED AGENT, YOU KNOW, IF THEY CHECK THAT THEY WANT ALL COMMUNICATIONS TO GO TO THEIR AGENT, CAN WE LEGALLY SEND A DUPLICATE NOTICE ALSO TO THE PROPERTY OWNER? SO WE'LL EXPLORE THOSE. WE'LL ALSO PUT SOME INFORMATION ON THE WEBSITE BEFORE THE NEXT MEETING, CELIA ISRAEL: YEAH, LEANA MANN: AND UPDATE Y'ALL ON THAT.CELIA ISRAEL: ALL RIGHT. THANK YOU.
DICK LAVINE: JUST ONE MORE. DO YOU KNOW IF AFTER THE AGENT HAS HANDLED THE PROTEST, WHETHER THEY INFORM THE HOMEOWNER WHAT'S HAPPENED TO THEIR VALUE? LEANA MANN: WE, WE TRY TO STAY OUT OF THE CONTRACTUAL RELATIONSHIP BETWEEN AN AGENT PROPERTY OWNERS, DICK LAVINE: YOU HAPPEN TO KNOW IF THEIR PRACTICE IS.. I'M JUST AFRAID THERE'S HOMEOWNERS WHO HAVE OTHER THINGS ON THEIR MIND, AND WILL SUDDENLY GET THE TAX BILL IN OCTOBER, AND WONDER WHAT HAPPENED, BECAUSE THEY DIDN'T THINK TO REACH OUT TO GO TO THE WEBSITE TO LOOK FOR THEIR VALUE, OR THEY MISSED THE MAY 15, OR WHATEVER IT WAS.
LEANA MANN: THERE ARE HUNDREDS OF AGENTS, SO THEY ALL OPERATE DIFFERENTLY. I CAN'T SPEAK TO WHAT AN AGENT, WHAT COMMUNICATION THEY HAVE WITH THE PROPERTY OWNER AFTER THE APPEAL.
DUSTIN BANKS: YES, FROM WHAT I KNOW AND PERSONAL EXPERIENCE, THEY WILL BILL YOU, SO THEY TAKE THE FINAL OUTCOME AND THEN USE THAT TO BILL YOU FOR THAT OUTCOME FOR THE TAX SAVINGS CONTRACTUALS, YOU KNOW, THE CONTRACTUAL RELATIONSHIP WILL RANGE FOR A CONTINGENCY FEE, YOU KNOW, SAY 33% YOU HAVE TO PAY ON THE TAX SAVINGS, AND SO THEN THEY'RE THEY'RE SENDING THAT THE OUTCOME TO THE PROPERTY OWNER, AND THEN SAYING THIS IS HOW MUCH YOU OWE TO, DICK LAVINE: I UNDERSTAND, I'M ASKING YOU ABOUT SOMETHING OVER WHICH YOU HAVE NO CONTROL, RIGHT, BUT IS THAT CONTINGENCY STILL POPULAR, OR IS IT A FLAT FEE, BECAUSE VALUES ARE DROPPED? INDEED, DUSTIN BANKS: SEE, IS VERY POPULAR, BUT LEANA MANN: THERE ARE OTHER FEE STRUCTURES THAT MANY AGENCIES USE.
NICOLE CONLEY: THANK YOU, MR. TRAN. I JUST HAVE ONE REQUEST ON YOUR YEAR-OVER-YEAR LOOK. IT SEEMS LIKE YOU KNOW COMPLAINTS ARE GOING DOWN SUBSTANTIALLY, BUT I BELIEVE THAT'S JUST A SNAPSHOT YOU'RE LOOKING AT A SNAPSHOT IN TIME VERSUS A FULL YEAR, SO YOU MIGHT CONSIDER PUTTING A YEAR TO DATE OF THE PREVIOUS YEAR, JUST TO SORT OF BRING MORE CONTEXT TO LIGHT, OR, OR MAYBE I'M READING IT WRONG, TONY TRAN: SO ON THE INQUIRY SUMMARY, THERE'S ACTUALLY A YEAR TO DATE SHOWING 297 COMPLAINTS FOR THIS YEAR, ALSO ON TOP. AND THEN FOR LAST YEAR IT WAS 352 TO THAT'S NOT WRITTEN ON THERE, BUT IT'S IN MY NOTES. UP TILL MAY 31 THOSE 352 COMPLAINTS THIS YEAR WAS 297 UP TILL MAY 31 NICOLE CONLEY: THANK YOU. AND SO YOU MIGHT JUST WANT TO CLARIFY, JUST, YOU KNOW, THESE DOCUMENTS BECOME PUBLIC ARTIFACTS, AND SO I WOULDN'T WANT ANYONE TO THINK THAT YOU'RE DOING LESS THAN YOU'RE ACTUALLY DOING MORE. ACTUALLY, TONY TRAN: THANK YOU SO MUCH.
NICOLE CONLEY: THANK YOU SO MUCH, MR. TRAN. SINCE THERE'S NO FURTHER DISCUSSION, WE'LL NOW MOVE INTO ITEM 5B IS THAT IS
[B. Discussion And Possible Action On Appraisal Review Board Chairperson's Report]
THAT IT, BOARD MEMBERS? THANK YOU, MR. TRAN. ITEM 5B DISCUSSION ON POSSIBLE ACTION ON THE APPRAISAL REVIEW BOARD CHAIRPERSON'S REPORT. WE'LL HEAR FROM OUR ARB CHAIR, MS. MEG BROOKS. MS. BROOKS, THANK YOU.MEG BROOKS: GOOD MORNING. I'M GONNA APOLOGIZE BECAUSE I'VE GOT A - MY ALLERGIES HAVE TURNED INTO A CHEST COLD, SO I'M A LITTLE COFFEE, BUT YEAH, WE'VE GOT THE SEASON STARTED. I THINK EVERYTHING'S GOING PRETTY SMOOTHLY. IT LOOKS LIKE WE'VE, IN THE SHORT TIME THAT WE'VE BEEN DOING CASES, IT'S GONE PRETTY. WE'VE GOTTEN A BUNCH OF CASES TRIED, I MEAN, A BUNCH OF CASES HEARD, AND AS FAR AS I CAN TELL, IT'S GOING PRETTY SMOOTHLY. DON'T HAVE MUCH ELSE TO REPORT, EXCEPT WE'RE JUST, WE'RE IN THE MIDDLE OF IT, BUT NICOLE CONLEY: ANY COMMENTS OR QUESTIONS FROM BOARD OF DIRECTORS FOR MISS BROOKS? SHENGHAO WANG: YES, SO I, YES, THANK YOU. SO, I JUST WANTED TO CLARIFY, IT DOESN'T SOUND LIKE YOU'RE HAVING EXPERIENCING ANY ISSUES THAT YOU WOULD NEED SUPPORT OR ASSISTANCE. OKAY, MEG BROOKS: NOT RIGHT NOW. I THINK I THINK THINGS ARE GOING VERY SMOOTHLY, AND OBVIOUSLY WITH WITH A LOT OF HELP FROM THE ARB SUPPORT STAFF AND THE RESIDENTIAL AND COMMERCIAL APPEALS PEOPLE THAT HELP US READ IT'S A LOT OF RESCHEDULING. I FORGOT THIS FROM LAST YEAR, THAT A LOT OF WHAT WE DO IN THE OFFICE IS RESCHEDULING, AND THEN MAKING SURE WE'VE GOT ENOUGH PANELS AND EMPLOYEES TO HEAR ALL THE CASES. WE'VE GOT A FEW MEMBERS THAT ARE HAVING SOME HEALTH DIFFICULTIES, SO THEY'RE NOT - THEY DON'T WANT TO RESIGN FROM THE BOARD, BUT WE'VE GOT FIVE OR SIX PEOPLE THAT ARE OUT WITH MEDICAL ISSUES, BUT WE'VE GOT - I THINK WE'VE GOT ENOUGH PEOPLE IN OUR NEW CLASSES, VERY, VERY GOOD. WE HAVEN'T LOST A SINGLE ONE YET, SO WE'RE VERY HAPPY ABOUT THAT. AND WE HAD FUN IN THE DARK THIS MORNING, OR AT LEAST WE HAD NO PANIC. SO THE LIGHTS WENT OUT, LEANA MANN: I DIDN'T THINK IT WAS FUN.
I WAS JUST.. I THOUGHT THERE WOULD BE A LOT MORE UPHE. WHOLE, EVERYBODY JUST KIND OF KEPT WORKING IN THE DARK, SO IT WAS,
[00:25:03]
IT WAS KIND OF FUNNY.NICOLE CONLEY: IT'S GOOD, IT'S BREAKFAST AT SUNSET. THANK YOU, MISS BROOKS. THANK YOU.
NOW WE'LL MOVE INTO ITEM 5C ONE OF MY FAVES, DISCUSSION AND
[C. Discussion And Possible Action On 2025 Annual Comprehensive Financial Report and Financial Audit Results to Include Presentation from the District's Auditors]
POSSIBLE ACTION ON THE 2025 ANNUAL COMPREHENSIVE FINANCIAL REPORT AND FINANCIAL AUDIT, FINANCIAL AUDIT RESULTS, INCLUDING A PRESENTATION FROM THE DISTRICT'S AUDITORS, AND SO I'LL TURN IT OUT OVER TO MISS MANN.LEANA MANN: THANK YOU. I WANTED TO KICK OFF BY JUST STATING OUR VERY SMALL FINANCE TEAM UNDERTOOK THE AUDIT WITH VERY LIMITED RESOURCES FROM ME THIS YEAR, AND THEY DID A FANTASTIC JOB. THEY WORKED SO DILIGENTLY. SO, I WANT TO FIRST CONGRATULATE THEM ON A SUCCESSFUL AUDIT. THEY DID FANTASTIC. AND WE ALSO HAVE KEVIN RANDOLPH HERE FROM EIDE BAILLY, WHO ARE OUR AUDITORS.
HE'S THE MANAGING DIRECTOR, AND HE HAS SOME STATISTICS TO PRESENT FOR YOU.
NICOLE CONLEY: ANY QUESTIONS FROM THE BOARD? WELL, I WILL SAY THAT IN ON OBVIOUSLY THIS SPEAKS TO THE TREMENDOUS EFFORTS AND WORK OF OUR MANAGEMENT TEAM, OUR FOCUS ON FINANCIAL TRANSPARENCY, OUR KEEN SORT OF AUDIT PRINCIPLES. I MEAN, YOU COULDN'T HAVE A BETTER RESULT. ALSO, NO MANAGEMENT DISCUSSIONS TYPICALLY, SOMETIMES EVEN IF YOU GET A CLEAN OPINION, THERE ARE FLAGS THAT THEY BRING TO OUR ATTENTION, AND THERE'S NO FLAGS, NOTHING SORT OF TO LOOK TO, SO SPEAKING TO SOME OF THE SUPERIOR PERFORMANCE OF OUR TEAM, AND YOU KNOW, I THINK THAT WE SHOULD ALL BE HAPPY AND WITH THE RESULTS, AND THAT WE CAN, YOU KNOW, SAFELY SAY TO TAXPAYERS THAT TCAD IS MANAGING ITS RESOURCES SUFFICIENTLY. NOT ONLY DID WE GET A CLEAN AUDIT, BUT WE HAVE NO MANAGEMENT DISCUSSION, NO INTERNAL SORT OF CONTROLS OR ISSUES THAT WE SHOULD BE FOREWARNED ABOUT, SO THAT GOES A LONG WAY TO BOTH LEADERSHIP AS WELL AS THIS BOARD IN TERMS OF OUR REVIEW AND EXPECTATIONS AND SETTING THE TONE FOR GOOD FINANCIAL STANDARDS. ALL RIGHT, WITH THAT BEING SAID, DO WE HAVE A MOTION TO APPROVE THE FINANCIAL AUDIT AS PRESENTED BY THE ADMINISTRATION. I'M SORRY, MISS ISRAEL. WE HAVE A MOTION BY MISS ISRAEL, SECOND BY MR. LEVINE. ALL IN FAVOR OF ACCEPTING THE CAFR FOR 2025 ALL RIGHT, UNANIMOUSLY, UNANIMOUSLY APPROVED BY THE BOARD. THANK YOU ALL. THANK YOU. MOVING ON TO SECTION 5D A DISCUSSION ON BUDGET AND AUDIT COMMITTEE
[D. Discussion On Budget & Audit Committee Report Regarding The 2027 Proposed Budget And The Work Of The Committee]
REPORT REGARDING THE 2027 PROPOSED BUDGET AND WORK OF THE COMMITTEE. I WILL HAND THAT OVER TO MISS MONTOYA TO TALK ABOUT SOME OF THE COMMITTEE WORK.[00:30:01]
ELIZABETH MONTOYA: GOOD AFTERNOON. WE MET ON THE BUDGET COMMITTEE MET ON MAY 20 AND MAY 29 BECAUSE WE HAD AN ISSUE THAT WE ASKED THE DISTRICT TO LOOK AT. WE DISCUSSED THE DISTRICT'S OPERATIONAL STATUTORY, THE STRATEGIC FUNDING, THE ADDITIONAL WORK THAT THEY HAVE TO DO, THE CHALLENGES, IT'S PRETTY SIGNIFICANT, JUST LIKE MOST OTHER ORGANIZATIONS THESE DAYS. THANK YOU TO THE LEGISLATURE, LEGISLATIVE CHANGES, AND THE DISTRICT REALLY DUG IN, AND THEY FOUND SOME COST SAVINGS AND EFFICIENCIES. THEY IDENTIFIED ALMOST A MILLION DOLLARS OF COST SAVINGS TO OFFSET SOME OF THE INFLATIONARY PRESSURES, THINGS LIKE PROFESSIONAL SERVICES, AERIAL PHOTOGRAPHERS, PHOTOGRAPHY, SOFTWARE MAINTENANCE, AND INSURANCE, AND SOME DEAD ADMINISTRATIVE EXPENSES, AND THE DRIVERS OF THE BUDGET INCREASE HEALTH CARE, OBVIOUSLY MOSTLY OUTSIDE OF THE DISTRICT'S CONTROL, LEGISLATIVE RELATED EXPENSES, STATUTORY OBLIGATIONS, AND LEGAL REQUIREMENTS. THEN AN ITEM THAT WE'D LIKE PROBABLY FURTHER DISCUSSION IS COST OF LIVING ADJUSTMENTS. ULTIMATELY, WHERE WE LANDED AFTER SOME ADJUSTMENTS WE PROPOSE AN ADDITIONAL BUDGET INCREASE, SUBJECT TO SOME DISCUSSION OF ABOUT 7.23% WHICH IS NOT OUT OF LINE OF SOME OF THE OTHER SUPPORT AGENCIES, AND I THINK PROBABLY THE DISCUSSION COME AFTER THE BUDGET EXPECT THE BUDGET PRESENTATION DO NICOLE CONLEY: THANK YOU, MISS MONTOYA. IF I COULD ADD SOME CONTEXT, I THINK WE'RE GOING TO HEAR FROM THE CHIEF APPRAISER ON THE PROPOSED BUDGET. I THINK SUBSEQUENTLY THAT PROPOSED BUDGET WILL GO TO THE TAXING ENTITIES THAT THEY'LL SORT OF SET AND ADOPT, AND THEN WE'LL SUBSEQUENTLY COME BACK AND FORMALLY SORT OF ADOPT THE BUDGET, SO WE WON'T NECESSARILY BE TAKING AN ACTION ON THIS PROPOSED BUDGET, BUT CERTAINLY WE WANT TO SHARE FEEDBACK TO GIVE DIRECT AND DIRECTION TO THE CHIEF APPRAISER, SO THAT THAT CAN BE INCLUDED INTO THE BUDGET THAT IS PRESENTED TO THE TAX AND ENTITIES, SO THAT THEY CAN SUBSEQUENTLY INCLUDE THOSE EXPENDITURES INTO THEIR PLANS, BUDGETARY EXPENSES. I THINK THAT WE HAVE A, THERE'S A COUPLE OF SORT OF IDEAS THAT WE NEED TO SORT OF CONSIDER IN GIVING THAT FEEDBACK, ONE OF WHICH IS, YOU KNOW, I THINK STAFF HAS SORT OF DONE A GOOD JOB OF SORT OF FINDING LOW HANGING FRUIT TO SORT OF MINIMIZE SORT OF PROJECTED INCREASES FOR NEXT YEAR, BUT WE WRESTLED ABOUT SORT OF COLA, SORT OF WHAT, YOU KNOW, WHERE DO WE WANT TO BE, WE WANT TO MAKE SURE THAT, YOU KNOW, LAST YEAR WE DIDN'T NECESSARILY GIVE A COLA, WE HAD, YOU KNOW, WE HAD SORT OF THE WHOLE RECLASSIFICATION, WHERE WE SORT OF, YOU KNOW, WE DID SORT OF THE SALARY SCHEDULE SORT OF LOOK ACROSS INDUSTRIES AND PUT PEOPLE WHERE WE THOUGHT THEY COULD BE BASED UPON INDUSTRY STANDARDS AND RECLASSIFICATIONS AT THAT TIME, BUT CERTAINLY WE WANT TO SHARE FEEDBACK FOR MISS MAN ABOUT WHAT SHOULD GO INTO THOSE THAT PROPOSED BUDGET AS TAXING ENTITIES PREPARE AND WHAT LEVEL OF POSSIBLE COLOS OR INCREASES THAT WE FEEL COMFORTABLE WITH AS A BOARD AND SO YOU KNOW I'D LIKE FOR US TO SORT OF GET A GOOD PLACE AND GET SOME GOOD DIRECTION AND FEEDBACK TO MISS MANN AS THIS BUDGET IS GOING TO BE THE PROPOSAL THAT IS GOING TO BE ULTIMATELY INCLUDED IN THOSE RESPECTIVE TAXING ENTITIES PREPARED BUDGETS THAT ARE SOME OF THEM ARE ADOPTING AT THE END OF THIS MONTH, AND ACTUALLY A MATTER OF WEEKS. SO, THANK YOU ALL. SO, LET'S GET INTO IT, MISS MANN.[E. Discussion And Possible Action On Fiscal Year 2027 Proposed Budget]
LEANA MANN: ALL RIGHT, AND I'LL INVITE KAT HARVEY UP. SHE DID THE MAJORITY WORK OF THE WORK ON OUR PROPOSED BUDGET.KAT HARVEY: HELLO. RIGHT, SO THIS YEAR I KIND OF, THAT'S LOUD. SO THIS YEAR I KIND OF WANT TO GO OVER OUR BUDGET PROCESS, BECAUSE I FEEL LIKE WE REALLY DUG OUR HEELS IN AND TRIED TO TAKE A BARE BONES APPROACH TO THIS BUDGET THIS YEAR. SO OUR NEW AND ONGOING FOCUS AREAS WERE OPERATIONAL EFFICIENCY AND ANY PROCESSES WE COULD IMPROVE. WE EVALUATE STAFFING, DEPARTMENT STRUCTURES, WE LOOKED AT LITIGATION, TECHNOLOGY, CYBERSECURITY SUPPORT. SO OUR BUDGET DRIVERS WERE BASICALLY TO REVIEW OUR CURRENT STAFF, ANY OPEN AND VACANT POSITIONS, ANY CONTRACT AND SUBSCRIPTION COSTS WE COULD EVALUATE INFLATIONARY PRESSURES ON GOODS, SERVICES, EMPLOYEE BENEFITS, AND ANY WORKLOAD AND SERVICE DEMAND IMPACTS THAT ANY CHANGES TO THE BUDGET WOULD CREATE. SO, OUR BUDGET APPROACH THIS YEAR WAS TO BE REALLY CONSERVATIVE, STABILITY-FOCUSED BUDGETING. WE LEVERAGED OUR EXISTING SYSTEMS, AND WE TRIED TO BALANCE OPERATIONAL NEEDS WITH PUBLIC STEWARDSHIP OF THOSE FUNDS, SO THE INITIAL BUDGET REQUEST THAT WAS SUBMITTED TO THE COMMITTEE WAS AT 5.42% BUT PER BUDGET COMMITTEE DIRECTION, WE DID EVALUATE ACROSS THE BOARD COLAS FOR ALL EMPLOYEES, SO WITH THOSE CHANGES INCORPORATED, WE ARE PROPOSING A SEVEN POINT.
POINT TWO 3% INCREASE, AND AGAIN, OUR BUDGET FOCUS IS GOING
[00:35:03]
TO BE WORKFORCE EFFICIENCY. YOU'RE GOING TO SEE THAT A LOT THROUGHOUT THIS PRESENTATION, AND AS YOU CAN SEE FROM THE CHART I'M SHOWING YOU OF 2022 ALL THE WAY THROUGH THE PROPOSED THIS YEAR, AND THOSE PERCENTAGE INCREASES THAT WERE STATED OR ADOPTED EACH YEAR. SO, WITH THESE STATED INCREASES. I'D LIKE TO KIND OF REITERATE THAT THERE'S A LOT OF UNFUNDED MANDATES THAT WERE BAKED INTO THOSE, SO WHEN YOU STRIP OUT THOSE UNFUNDED MANDATES FOR THOSE PRETTY HIGH YEARS, THE ACTUAL YEAR OVER YEAR INCREASE IS SIGNIFICANTLY LOWER. SO A SUBSTANTIAL PORTION OF THOSE INCREASES WERE MANDATED COSTS THAT WE HAD NO CONTROL OVER. SO YOU CAN SEE IN 2024 WAS A LITTLE OVER 16% THAT WAS ADOPTED. IT WOULD HAVE BEEN CLOSER TO JUST UNDER SEVEN IF YOU STRIP OUT THOSE UNFUNDED MANDATES. HAD THE SAME THING FOR 25 AND LAST YEAR WOULD HAVE BEEN RIGHT UNDER, YOU KNOW, TWO AND A QUARTER INSTEAD OF 5.95 SHENGHAO WANG: COULD YOU JUST PROVIDE SOME EXAMPLES OF WHAT TYPES OF MANDATES WE'RE LOOKING AT? LEANA MANN: THE BIGGEST ONE IS THE BOARD OF DIRECTORS ELECTION COST.SHENGHAO WANG: I APOLOGIZE, NICOLE CONLEY: THE PRICE TAG FOR THAT, LEANA MANN: ABOUT 1.5 MILLION EVERY TWO YEARS, SO WE BREAK IT UP OVER TWO YEARS OF BUDGET.
SHENGHAO WANG: WELL, GOING FORWARD, IT'LL BE PART OF THE NOVEMBER CYCLE, RIGHT? I HOPE THAT THAT SPREADS THE COST OVER A BIGGER DENOMINATOR, AND THE DISTRICT IS LESS ON THE HOOK AS A TOTAL DOLLAR FIGURE, SINCE YOU KNOW A LOT OF OTHER JURISDICTIONS ARE HAVING THEIR ELECTIONS IN NOVEMBER.
LEANA MANN: UNFORTUNATELY, SINCE WE'RE COUNTY-WIDE, WE ONLY SHARE THE COST WITH THE COUNTY, SO WHICH WE DID IN MAY WHEN Y'ALL WERE ELECTED. SO IT SHOULD BE VERY SIMILAR.
KAT HARVEY: OKAY, SO LOOKING AT OUR INCREASES THIS YEAR, THEY'RE PRIMARILY DRIVEN BY PERSONNEL BENEFITS AND LEGAL SERVICES, AND I'M GIVING YOU KIND OF A SHORT CHART OF WHAT THOSE BIG INCREASES WERE, AND I'LL GO OVER THOSE IN THE UPCOMING SLIDES.
NICOLE CONLEY: MR. HANNA, DID YOU HAVE A QUESTION? JETT HANNA: I JUST HAVE A GENERAL QUESTION THAT I'M WONDERING IF YOU ALL TRIED TO QUANTIFY IN THAT, NOT EVEN SURE EXACTLY HOW TO PUT THIS, BUT CAN YOU, CAN YOU QUANTIFY TO ANY EXTENT ADDITIONAL BENEFITS THAT WE ARE PROVIDING TO THE TAXING ENTITIES AS A RESULT OF CHANGES THAT WE MIGHT BE PROPOSING, IN OTHER WORDS, YOU KNOW, JUST, JUST WITH YOUR, YOUR TOP LINE NUMBER OF 7.23% I LOOK AT THE JURISDICTIONS AND THEY'RE STUCK WITH THE 3.5 CAP TO PLUS WHATEVER THEIR BONDS ARE THAT HAVE BEEN APPROVED, AND I GUESS I'M JUST TRYING TO MAKE SURE THAT WE HAVE A WAY TO SHOW THAT WHAT WE ARE DOING ISN'T OUT OF LINE WITH WHAT THE OTHER ENTITIES ARE DOING, ESPECIALLY IN THE FACE OF CERTAINLY THE HUGE CUTS THAT WE'RE LOOKING AT ON THE EDUCATION SIDE, SO THAT MAY BE JUST SOMETHING WE'VE GOT TO TALK ABOUT AT THE END, BUT I JUST THOUGHT I'D GET THAT OUT THERE.
LEANA MANN: I THINK IT'S ACTUALLY A REALLY GOOD TIME TO DISCUSS IT. SO, WE DID A PRETTY THOROUGH ANALYSIS, AND WHEN WE'RE TALKING ABOUT MUNICIPALITIES IN THAT THREE AND A HALF PERCENT CAP THAT THEY HAVE, THAT IS ON THE RATE, NOT ON EXPENDITURES. AND SO, WE REALLY ARE MORE LIKE AN OVERSIGHT AGENCY, LIKE THE COMPTROLLER'S OFFICE OR TEA, BECAUSE WE DON'T HAVE A TAX RATE. I DID GO THROUGH, AND I LOOKED AT OUR BIG FIVE ENTITIES IN TRAVIS COUNTY. THEIR GOVERNMENTAL FUND EXPENDITURES, WHICH IS IN ACCOUNTING, IT'S HOW YOU GROUP THINGS AS YOUR CORE BUSINESS FUNCTION. SO, WE DIDN'T LOOK AT DEBT, WE DIDN'T LOOK AT CAPITAL IMPROVEMENT PROJECTS, JUST OUR GENERAL FUND GOVERNMENTAL FUNCTIONS, AND THAT TELLS A VERY DIFFERENT STORY, SO THAT TAX RATE GOES UP AND DOWN DEPENDING ON VALUE. OBVIOUSLY, EXPENDITURES IS REALLY A BETTER WAY TO LOOK AT THAT, AND FOR I LOOKED AT 2020 THROUGH 2026 BECAUSE I DID WANT TO CAPTURE SOME OF THAT COVID PANDEMIC TIMEFRAME, BECAUSE IT WAS A VERY DIFFERENT TIME IN BUDGET WORLD, AND WE'RE, WE'RE REALLY IN LINE WITH THE OTHER ENTITIES EXPENDITURE WISE. ON AVERAGE, TRAVIS COUNTY WAS AT ABOUT 9% EXPENSE INCREASE EACH YEAR. CITY OF AUSTIN WAS 6.34 AND I'D BE HAPPY TO SHARE THIS SPREADSHEET WITH YOU TOO. YOU, BUT YES, WE
[00:40:01]
DID CONSIDER THAT, BECAUSE WE DO UNDERSTAND OUR TAXING ENTITIES ARE IN A VERY TOUGH SITUATION RIGHT NOW, AND WE'RE TRYING TO DO EVERYTHING WE CAN TO ASSIST WITH THAT. WE DID NOT LOOK AT ANY NEW BENEFITS THAT WE WOULD BE PROVIDING THEM IN THIS BUDGET. THE TAXING ENTITIES I TAKE AS ONE OF MY PRIMARY OBJECTIVES AS CHIEF APPRAISER IS TO HAVE THAT RELATIONSHIP, PROVIDE THE DATA THEY NEED, COMMUNICATE WITH THEM REGULARLY, AND STARTING IN 2024 THAT WAS A FOCUS FOR ME, AND I CAN SAY IT'S BEEN VERY BENEFICIAL FOR AT LEAST THE MAJOR ENTITIES THAT WE WORK WITH. SO WE'RE WORKING ON BUILDING THOSE BENEFITS, WE HAVEN'T QUANTIFIED WHAT THEY ARE, THOUGH.JETT HANNA: ALONG THAT LINE, I WAS JUST THINKING, YOU KNOW, LIKE IF WE HAD AN INCREASE IN THE LITIGATION BUDGET, YOU KNOW, IN THEORY YOU COULD SAY, WELL, WE EXPECT TO BRING IN THIS, THIS MUCH MORE FOR ENTITIES OR SOMETHING ALONG THAT LINE, BUT I KNOW THAT'S LEANA MANN: LEGALLY, WE WOULD NEVER INCREASE, WE CAN'T INCREASE THE VALUE, JETT HANNA: RIGHT? LEANA MANN: SO THEY WOULD NEVER GET MORE REVENUE THAN THEY HAD IT CERTIFIED, JETT HANNA: LOSE MORE IF WE DIDN'T LITIGATE. SO, LEANA MANN: YEAH, WE COULD QUANTIFY THAT, THAT IS AN ASPECT WE COULD PUT A NUMBER ON FOR THEM.
JETT HANNA: OKAY. ALL RIGHT. THANK YOU VERY MUCH.
NICOLE CONLEY: ANY OTHER QUESTIONS THIS MORNING? OKAY, KAT HARVEY: SO WE'LL START WITH PERSONNEL. THE BOARD APPROVED 12 POSITIONS BETWEEN 2023 AND 2025 AND SEVEN, JUST LAST YEAR, BUT FOR 2027 DUE TO RESTRUCTURING, WE EVALUATED STAFFING. WE ARE ASKING FOR ZERO NEW EMPLOYEES. WE'RE ACTUALLY GOING TO REDUCE FROM 172 TO 171 THIS YEAR, AND IT'S JUST NOT GOING TO FILL AN OPEN VACANT POSITION THAT WE HAVE. NO FILLED POSITIONS WOULD BE ELIMINATED. AND I HAVE A CHART SHOWING EACH DIVISION AND HOW MANY EMPLOYEES WERE ASSIGNED TO EACH ONE, DEBORAH CARTWRIGHT: AND GOING ALONG WITH THAT, THE RECLASSIFICATION THAT WE DID LAST YEAR RESULTED IN WHAT PERCENTAGE OF EMPLOYEES RECEIVING RAISES.
KAT HARVEY: I BELIEVE IT WAS JUST, LEANA MANN: WE DON'T HAVE THAT, WE WOULD, WE CAN PULL IT FOR YOU, THOUGH.
ELIZABETH MONTOYA: SMALL. WHAT WAS THE EFFECTIVE DATE OF THAT RESTRUCTURE? LEANA MANN: JANUARY 1, 2026 KAT HARVEY: AND SO, GOING ALONG WITH THAT, I KIND OF WANT TO LOOK AT OUR TURNOVER RATE BETWEEN 2022 THROUGH 2026 IN 2022 WE WERE AT AN 18% TURNOVER, AND WE HAVE WORKED VERY HARD TO KIND OF MITIGATE THAT AND BRING US DOWN TO YEAR TO DATE, WE ARE AT JUST OVER 1% AND SO THAT TURNOVER RATE IS THE PERCENTAGE OF STAFF WHO LEAVE BECAUSE OF RESIGNATIONS, RETIREMENTS, TERMINATIONS, SO THAT FALLING TURNOVER RATE MEANS THAT WE HAVE A MORE STABLE WORKFORCE, WE'RE PRESUMING, PRESERVING INSTITUTIONAL KNOWLEDGE AND SAVING TAXPAYER DOLLARS.
DEBORAH CARTWRIGHT: WOULD YOU ATTRIBUTE PART OF THAT TO THE REACH, THE RECLASSIFICATION THAT WE DID LAST YEAR? KAT HARVEY: I WOULD ATTRIBUTE THAT TO THE COLA THAT WE GAVE IN 2022 TO KIND OF BRING THIS DOWN AND GET PEOPLE WHERE THEY NEEDED TO BE, AND THEN RECLASSIFYING, BRINGING US FROM THAT 6% DOWN TO ONE, ABSOLUTELY HELPED.
NICOLE CONLEY: AND IF YOU COULD JUST, IT'D BE GREAT TO SORT OF HAVE THAT ESTIMATE AROUND, LIKE, HOW MANY, YOU KNOW, IS IT HALF EMPLOYEES WERE AFFECTED BY THE RECLASS OR NOT. I MEAN, OBVIOUSLY, THESE ARE GREAT RESULTS. IT IS A SAVINGS WHEN YOU DON'T HAVE TO SORT OF EXPEND TIME BRINGING IN NEW NEW STAFF, TRAINING THEM UP, AND GETTING THEM UP TO SPEED, BUT IT WOULD BE NICE TO SORT OF SEE IT'S SORT OF TIE SOME OF THAT BACK INTO HOW THIS IS SORT OF POSSIBLY LED TO BETTER RETENTION.
KAT HARVEY: ABSOLUTELY, LEANA MANN: I THINK THE TURNOVER RATE ALSO HAS A LOT TO DO WITH CULTURE, YOU KNOW, YOU'LL HEAR LATER IN THE YEAR WE ARE UP FOR SOME CULTURE AWARDS THROUGH A COUPLE DIFFERENT ORGANIZATIONS, AND I THINK WE'VE MADE A REALLY BIG PUSH WITH OUR EMPLOYEES TO HAVE A GOOD CULTURE, BUILD MORALE BACK UP, AND I THINK THIS REALLY SHOWS THAT.
NICOLE CONLEY: MR. WANG, SHENGHAO WANG: DO YOU HAVE A SENSE OF WHAT THE CAUSES OF THESE TURNOVERS ARE, RIGHT? IS IT PEOPLE LIKE DO THE BREAKDOWN BETWEEN, YOU KNOW, RESIGNATIONS, RETIREMENTS, AND TERMINATIONS? KAT HARVEY: THERE WERE, WE HAD A FEW RETIREMENTS, BUT MAINLY IT'S PEOPLE BEING OFFERED MORE MONEY FROM OTHER AGENCIES. WE CAN'T REALLY, YOU KNOW, FIGHT WITH THE PRIVATE SECTOR. WE HAVE NO DOG IN THE GAME. THERE DICK LAVINE: ARE WE ABLE TO COMPETE ON THE NON-WAGE, ON HEALTH BENEFITS, VOLUNTARY PENSION BENEFITS, ANYTHING LIKE THAT? KAT HARVEY: YES, THAT'S WHERE WE, WE REALLY PUSH TO MAKE SURE THAT WE HAVE BENEFITS THAT WE CAN PROVIDE STAFF THAT THEY CAN SEE IN THE LONG TERM. TERM, AND THEY WANT TO STAY AND BE A PART
[00:45:02]
OF THE ORGANIZATION TO STAY WITH THAT.DICK LAVINE: WHAT PENSION BE WE WHAT PENSION BENEFITS DO THEY GET? THE DISTRICT AND COUNTY, WHAT LEANA MANN: PART OF TCDRS, WHICH IS TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEMS. SO THEY HAVE THAT AS THEIR PENSION, AND THEN WE HAVE SOME OTHER ELECTED RETIREMENT BENEFITS THROUGH A 450 7B WITH A MATCH AND A 401 A CONTRIBUTION THAT'S PAID BY TCAD.
DICK LAVINE: DO WE HAVE OPT OUT OR OPT IN FOR THOSE LEANA MANN: OPT IN? CORRECT, KAT HARVEY: THE TCDRS IS MANDATORY, BUT THE OTHER TWO ARE OPT IN.
LEANA MANN: THE 401 A IS NOT OFTEN THEY AUTOMATICALLY GET THAT, KAT HARVEY: THAT ONE'S JUST THE 450 LEANA MANN: 7B PLAN WITH THE MATCH ISN'T OFTEN KAT HARVEY: ALL RIGHT, KEEPING WITH THIS, AND WHY ALL OF THIS MATTERS IS THAT REPLACING AN EMPLOYEE COSTS ANYWHERE FROM 50 TO 200% OF THEIR SALARY, SO LOWER TURNOVER MEANS LOWER, FEWER RECRUITMENTS, LESS TRAINING TIME, LESS DISRUPTION.
SO STABLE STAFF MEANS RESIDENTS INTERACT WITH THOSE EXPERIENCED, KNOWLEDGEABLE EMPLOYEES. SO FEWER VACANCIES MEANS BETTER, FASTER SERVICE DELIVERY, AND STAFF ARE JUST BASICALLY STAYING BECAUSE THEY BELIEVE IN THE WORK THAT CULTURE, LIKE WE SAID, TOOK A LONG TIME TO BUILD. WE'RE VERY PROUD OF IT, AND WE THINK IT'S SOMETHING THAT'S WORTH CELEBRATING. SO, SEEK KEEPING WITH THAT PERSONNEL AS PART OF THE STAFFING EVALUATION, AND PER COMMITTEE DIRECTION, WE REVIEWED CURRENT CPI DATA AND COMPENSATION ACTIONS TAKEN BY COMPARABLE LOCAL ENTITIES REGARDING THE COLA ADJUSTMENT, AND THE CONSUMER PRICE INDEX ROSE ABOUT 3.8% IN THE LAST 12 MONTHS, AS OF APRIL OF 2026 AND FOR CONTEXT, TRAVIS COUNTY IMPLEMENTED INCREASES OF THREE TO 5% IN THEIR LAST BUDGET CYCLE. CITY OF AUSTIN DID A 4% INCREASE IN 2026 STATE AGENCIES, SUCH AS DPS, HHS, AND THE COMPTROLLER'S OFFICE RECEIVED ACROSS THE BOARD INCREASES OF 5% IN BOTH 2024 AND 2025 WITH MANY RECEIVING ADDITIONAL TARGETED RAISES BETWEEN FIVE AND 15% SO WE ARE PROPOSING TO MATCH THAT CPI OF 3.8% AS YOU CAN SEE FROM THE TIMELINE, WE GAVE A COLA ACROSS THE BOARD IN 2022 AND IN 2025 WE DID NOT GIVE A COLA IN 2324 OR LAST YEAR, AND AS YOU CAN SEE FROM OUR PEER ENTITIES, TRAVIS COUNTY AND CITY OF AUSTIN HAVE BEEN GIVING THREE TO 4% ANNUALLY EVERY YEAR SINCE 2022 SO I NICOLE CONLEY: WILL SAY COMMON HERE, NOT ONLY JUST OVERSIGHT AGENCIES AND CITIES AND IN THE COUNTY, BUT ALSO SCHOOL DISTRICTS, RIGHT? THEY'VE BEEN, YOU KNOW, INCREASING SALARIES. I HATE TO SAY IT, YOU KNOW, IT'S LIKE PAYING LESS PEOPLE BETTER BECAUSE THEY DON'T NECESSARILY HAVE ANY RELIEF IN THOSE INFLATIONARY AND THAT SORT OF BASIC ALLOTMENTS, BUT YOU KNOW, SCHOOL DISTRICT FUNDING FORMULAS ARE MUCH DIFFERENT, RIGHT? THEIR EXPECTATIONS ARE THAT THEY RIGHT SIZE AS THEY LOSE ENROLLMENT, AND IF YOU LOSE SIGNIFICANT ENROLLMENT OVER TIME, YOU'RE EXPECTED SORT OF TO RIGHT SIZE. WELL, TCAD, SO OBVIOUSLY THE DEMANDS HAVEN'T CHANGED, IN FACT THEY'VE PROBABLY GOTTEN FAR GREATER, HENCE WE JUST HAD A HUGE EXPENDITURE FOR JUST THE SORT OF CHANGE IN GOVERNANCE STRUCTURE. SO YOU KIND OF HAVE TO LOOK AT THESE THINGS AS SORT OF DIFFERENT APPROACHES BASED UPON THE ENTITIES, BUT ALSO THE FUNDING MECHANISMS THAT SUPPORT THE DIFFERENT ENTITIES ARE A LOT, THE DRIVERS ARE A LOT DIFFERENT, AND SO WE DON'T NECESSARILY HAVE A CLEAR REVENUE DRIVER THAT YOU KNOW, IN FACT, WE PROBABLY HAVE MORE CAT, YOU KNOW, MORE PARCELS AND EXTRA EVENT OVER TIME, AS OPPOSED TO SORT OF THE GRADUAL LOSS IN STUDENT ENROLLMENT. SO I'M VERY COMPASSIONATE TO WHAT'S HAPPENING ACROSS OUR TAXING ENTITIES, AND IT'S NOT TO SAY THAT WE WON'T SORT OF FACE OUR OWN SPENDING CAPS, RIGHT? THE SPENDING CAPS LAST LEGISLATION DIDN'T NECESSARILY CARRY FORWARD, BUT WE MAY BE EXPERIENCING THAT IN THE NEXT SESSION, ALONG WITH OTHER CITIES AND COUNTIES, AND SO JUST WANT TO ADD SOME CONTEXT TO HOW WE SORT OF LOOK AT SORT OF THESE COLAS IN THE ENVIRONMENT OF THE VARIOUS ACTIONS THAT ARE BEING TAKEN BY THE ENTITIES WITHIN OUR GEOGRAPHIC AREA, LEANA MANN: AND THAT'S AN EXCELLENT POINT, NICOLE. SO, WHEN WE DID OUR BUDGET LAST YEAR, WE INITIALLY ASKED FOR 15 NEW STAFF MEMBERS. THE BOARD SAID SEVEN, SO WE WENT SEVEN AND 26 AND WE WERE GOING TO DO ANOTHER SEVEN IN 2027 WE CHOSE TO PAY THE CURRENT STAFF BETTER AND NOT HIRE THOSE SEVEN POSITIONS. SO, THAT'S THE APPROACH WE TOOK, SO AND KAT HARVEY: MOVING INTO BENEFITS, SO HEALTH CARE COSTS AGAIN CONTINUE TO BE A SIGNIFICANT BUDGET PRESSURE FOR US. AS YOU CAN SEE FROM THE CHART, THE CARRIERS LIKE US TO BE BETWEEN 75 AND 85% WHICH ARE THE YELLOW DOTTED LINES. WE ARE EQUAL TO. OUR EXCEEDING PREMIUM LEVELS, SO WE BAKED IN A 10%
[00:50:03]
INCREASE IN BENEFITS THIS YEAR, BUT THAT NUMBER HASN'T BEEN CONFIRMED YET. WE'RE STILL IN PRE-RENEWAL. WE USUALLY GET OUR RENEWAL BACK IN AUGUST, SO THAT IS BEFORE WE ADOPT OUR FINAL BUDGET, AND WE'LL MAKE ADJUSTMENTS TO THE HEALTH COSTS AT THAT TIME.NICOLE CONLEY: CAN YOU REMIND US WHAT THE RENEWAL IS? THIS, YOU SAID IT IS USUALLY BETWEEN 10 TO 12% NORMALLY, IT'S FAR MORE REACHING, YOU KNOW, SOMEWHAT 15 TO 20. ARE THERE INTERVENTIONS PUT INTO PLACE TO SORT OF MINIMIZE THESE BENEFIT IMPACTS THAT YOU ALL ARE DOING THAT SORT OF AVOID SOME OF THE HIGHER SORT OF INCREASES THAT A LOT OF ENTITIES EXPERIENCE IN THE HEALTH BENEFIT SIDE, SO WE LEANA MANN: ALSO GOT A 15 TO 20% ESTIMATED RENEWAL, AND WE HAVE GOTTEN THAT OVER THE LAST FIVE YEARS. EVERY YEAR, TYPICALLY, WHAT WE DO IS WE DO AN ANALYSIS, AND WE'LL GO TO MARKET ON ANY PRODUCTS THAT THEY CAN'T GET WITHIN OUR, OUR EXPECTED BUDGET INCREASE, AND WE'LL PLAN TO DO THAT AGAIN THIS YEAR, NICOLE CONLEY: BUT IT DOESN'T RESULT IN SORT OF A LOSS IN BENEFITS OR JUST BEING MUCH MORE COST EFFECTIVE. THAT'S CORRECT.
LEANA MANN: YEAH, WE DON'T DECREASE BENEFIT STRUCTURE, BUT WE SHOP OTHER CARRIERS, SO THAT WE CAN GET A LOWER COST.
NICOLE CONLEY: DOES THIS ANTICIPATE EMPLOYEES PAYING MORE FOR BENEFITS, LIKE SPLITTING THE SHARE, BECAUSE A LOT OF IT COMES DOWN TO HOW MUCH DO YOU WANT TO SPLIT VERSUS THE EMPLOYEE? LEANA MANN: SO OUR SPLIT PERCENTAGE WILL NOT CHANGE, BUT THE COST OF THE OVERALL INSURANCE WILL GO UP, SO THEY'LL HAVE A HIGHER COST, BUT THE PERCENTAGE WILL BE THE SAME.
KAT HARVEY: NOW, MOVING INTO LITIGATION, SO AN INCREASE IN COMPLEX CASES AND HIGHER EXTERNAL LEGAL COSTS HAS REQUIRED ADDITIONAL LEGAL SUPPORT AND RESOURCES. THIS INCREASED BUDGET IS TO ENSURE ADEQUATE FUNDING FOR APPEALS AND ARBITRATION PROCESSES. SO, AS YOU CAN SEE FROM THE CHART, WE HAVE THE THIRD HIGHEST LAWSUITS FILED, SECOND HIGHEST EXPENDITURES, BUT ONLY THE FIFTH HIGHEST PARCEL COUNT. SO, EVEN THOUGH TCAD HAS THE FIFTH HIGHEST PARCEL COUNT, IT IS THE HIGHEST LAWSUIT RATE RELATIVE TO THAT PARCEL COUNT. SO, THAT MEANS, COMPARED TO THE SIZE OF THE TAX ROLL, TRAVIS CAT IS BEING SUED MORE AGGRESSIVELY THAN ANY OTHER MAJOR METRO CAD IN THE COMPARISON.
CELIA ISRAEL: MADAM CHAIR, ON THAT ON THAT ISSUE, CAN I EXTRAPOLATE THE PERCENTAGE INCREASE? KAT HARVEY: HOW MUCH HAS IT GONE UP? SIGNIFICANT, LEANA MANN: THE PERCENTAGE INCREASE OF LITIGATION, LITIGATION KAT HARVEY: COSTS.
LEANA MANN: YEAH, WE CAN GET THAT FOR YOU. JUST CELIA ISRAEL: CURIOUS, HOW MUCH HAS GONE UP? I SEE THAT THE SEE THE PERCENTAGE PERCENT OF PARCEL COUNT, BUT I'M, I GUESS I'M LOOKING FOR, SHENGHAO WANG: YEAH, THIS HURT US CELIA ISRAEL: TO HAVE THIS BILL KAT HARVEY: FROM LAST YEAR, WE INCREASED IT 17% TO THE 2027 BUDGET, SO FOR AN OVERALL INCREASE OF $630,000 WE'RE ADDING, NICOLE CONLEY: AND WHEN YOU INCREASE THE LITIGATION BUDGET, THAT'S UNANTICIPATED BASED UPON A READ OF THE LITIGIOUS ENVIRONMENT, PLUS LEGISLATIVE CHANGES, AND WHAT YOU THINK YOU MIGHT NEED TO SAFELY RESOLVE BASED UPON HISTORY, LEANA MANN: CORRECT? AND A LOT OF THIS INCREASE THAT WE'VE PUT INTO THE PROPOSED BUDGET IS DUE TO THE DOCKETING CHANGES THAT HAVE BEEN IMPLEMENTED ACROSS THE STATE, SO THEY ARE SCHEDULING CASES MUCH FASTER, WHICH MEANS WE'RE GOING TO HAVE A LOT MORE LAWSUITS IN A FISCAL YEAR TO HANDLE, KAT HARVEY: SO WE'LL GO INTO CAPITAL EXPENDITURES. SO OUR PRIMARY DRIVERS ARE TECHNOLOGY, CYBERSECURITY FACILITY, BUILDING MAINTENANCE, AND THIS YEAR WE ARE ACTUALLY PULLING 175,000 FROM OUR EXISTING RESERVES TO KIND OF OFFSET THOSE TECHNOLOGY COSTS, BUT WE'RE PUSHING IN 372 TO OUR BUILDING REPAIR AND REPLACEMENT RESERVE FOR A LONG TERM FACILITY PLANNING, SO I KIND OF WANT TO TOUCH ON THOSE MAJOR DECREASES THAT MISS MONTOYA BROUGHT UP IN HER COMMITTEE MEETING. SO, AS PART OF OUR EVALUATION, WE DID LOOK AT CONTRACTED SERVICES, ANY SUBSCRIPTIONS, AND WE WERE ABLE TO REDUCE PROFESSIONAL SERVICES AND AERIAL PHOTOGRAPHY. WE DID REEVALUATE THEIR SERVICES, WE LOOKED AT COMPETITIVE PRICING, AND WE WERE ABLE TO GET THOSE COSTS DOWN, OUR INSURANCE, SO LIABILITY, PERSONAL PERSONAL PROPERTY WORKERS' COMPENSATION. WE UPDATED PREMIUM PROJECTIONS BASED ON THOSE CURRENT COVERAGE THAT WE NEED, AND THE FAVORABLE CLAIMS EXPERIENCE THAT WE HAD. SOFTWARE MAINTENANCE, AGAIN, WE RESTRUCTURED THOSE CONTRACTS. WE LOOKED AT ALL OF OUR SUBSCRIPTIONS, IT KIND OF RATIONALIZED WHAT WE NEEDED, WHAT KIND OF SERVICE LEVEL WE HAD WITH THEM, AND WE'RE ABLE TO REDUCE OUR MAINTENANCE SPEND THERE, AND THEN OUR DEBT ADMINISTRATION, WHICH HOLDS THE MONEY FOR THE BUILDING, AND OUR BUILDING IS ANTICIPATED TO BE PAID OFF IN 2027 SO OVERALL JUST THIS ONE CHART WE WERE ABLE TO SAY. SAVE OVER $900,000 IN COST
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REDUCTIONS, AND I'LL KIND OF GO OVER THE BUILDING IN A FUTURE SLIDE. SO, HERE'S JUST A RECAP OF EACH DEPARTMENT: HOW MANY EMPLOYEES, THE PERCENTAGE OF THE BUDGET, AND HOW MUCH GOES TO EACH DEPARTMENT, WITH A TOTAL OF 171 EMPLOYEES, AND THE ARB BUDGET, WE DID NOT RECEIVE ANY REQUESTS FOR CHANGE, SO IT IS EXACTLY THE SAME AS IT WAS FROM THE PREVIOUS YEAR, NO CHANGES THERE. AND THEN THIS IS WHERE I WANTED TO TALK ABOUT THE DEBT ADMINISTRATION, SO 850 EAST ANDERSON HOLDING. SO THE 2027 BUDGET REFLECTS THE ANTICIPATED PAYOFF OF THE BUILDING AND THE INVESTMENT INTO LONG TERM FACILITY PLANNING. SO THE ORIGINAL NOTE FOR THE BUILDING WAS SET FOR 20 YEARS, HOWEVER, THANKS TO PROACTIVE EARLY PAYMENTS WHEN WE SOLD THE CROSS PARK LOCATION, WE ARE SATISFYING THAT OBLIGATION IN EIGHT AND A HALF YEARS. THAT'S 11 AND A HALF YEARS OF SAVINGS, RESULTING IN OVER $3 MILLION IN INTEREST THAT WE'RE SAVING OVER THE LIFE OF THIS LOAN. I JUST THINK THAT'S AN INCREDIBLE FEAT. YEAH, THAT SLIDE'S NOT WORKING, IT'S JUST SHOWING YOU HOW MUCH GOES TO EACH. IT'S GREAT. AND THEN OVERALL, HERE IS OUR BUDGET RECAP, SHOWING 7.23% FOR THE OVERALL PROPOSED BUDGET. ANY QUESTIONS, COMMENTS, NICOLE CONLEY: I SO THE CON, I MEAN, SO WE'D LOVE TO HEAR BOARD FEEDBACK AND GIVING THE CHIEF APPRAISER SOME DIRECTION REGARDING THE COLA THAT'S ASSUMED IN THE BUDGET OF PRESENTATION, AND HOW THAT DRIVES SORT OF THE 7.2 INCREASE VERSUS NO COLO, AND I THINK WE WERE AT WHAT, FIVE POINT 5.42 KAT HARVEY: 5.42% NICOLE CONLEY: AND ANY AND OF THAT IN BETWEEN, IN TERMS OF LEVEL OF A COLA AND ADJUSTMENT, AND SO AT THIS POINT IN TIME, MS. MONTOYA TALKED ABOUT THE COMMITTEE REPORT, THEY'RE RECOMMENDING THE SORT OF THE BASELINE, JUST WANT TO MAKE SURE THAT THE BOARD HAS GIVEN SUFFICIENT DIRECTION IN SORT OF CONSIDERING THAT AS PART OF THE BASELINE APPROACH, THE BASELINE BUDGET, WHICH IS SAME SERVICES BUDGET WITH THE COLA, AS PRESENTED, THAT WOULD BE INCORPORATED INTO THE SUBSEQUENT ENTITIES BUDGET. SO, ANY COMMENTS OR FEEDBACK? DIRECTOR, ARE WE ALL COMFORTABLE WITH THIS LEVEL OF INVESTMENT? CELIA ISRAEL: MANAGER, I THINK IT'S A GREAT PRESENTATION, VERY THOROUGH. IT'S INTERESTING TO ME THAT IT MIRRORS A LOT OF WHAT WE'RE DOING AT THE TAX OFFICE, WE'RE MORE OR LESS IN THE SAME BALLPARK AS FAR AS A BUDGET INCREASE FOR THE VERY SAME REASONS, AND, AND BY BUDGET INCREASE, I'M SPEAKING, IT'S THE PARCEL RATE THAT WE'RE CHARGING OUR CUSTOMERS TO DO THE THE COLLECTIONS END OF THE THING, BUT IT SEEMS VERY SOUND AND THOUGHTFUL, AND AND I'M EXCITED TO SEE WHAT YOU'RE GOING TO DO WHEN YOU PAY OFF THE BUILDING, LEANA MANN: AS I'M SURE YOU ALL NOTICE TODAY, WE HAVE A PARKING SITUATION DURING THE SUMMER PROTEST MONTHS, SO THAT WOULD BE THE LONG-TERM GOAL.NICOLE CONLEY: YEP, MR. HANNA, JETT HANNA: YEAH, JUST WONDERING IF Y'ALL DID ANY MARKET ANALYSIS THIS YEAR ON POSITIONS AND WHAT THAT SHOWED. IN OTHER WORDS, IF SOME POSITIONS NEEDED TO GO UP, LIKE, LIKE YOU DID FOR LAST YEAR, WHEN WE DIDN'T DO A COLA, KAT HARVEY: WE DID A REALLY THOROUGH ANALYSIS LAST YEAR, AND WE'RE PRETTY MUCH IN LINE AND WITHIN A RANGE OF WHERE EVERYBODY SHOULD SIT, BUT CONSIDERING THAT THE COST OF LIVING IN OUR PEER ENTITIES, IT CLEARLY SHOWS WE'RE A LITTLE BIT BEHIND.
LEANA MANN: SO, THE IN-DEPTH MARKET ANALYSIS IS PRETTY EXPENSIVE, AND SO WE DON'T DO IT EVERY YEAR. WE USUALLY HAVE A FEELING GOING INTO IT BASED ON EMPLOYEE FEEDBACK, IF THEY FEEL THEIR SALARIES ARE LOW, AND THAT KIND OF TRIGGERS US TO DO THAT MARKET ANALYSIS.
NICOLE CONLEY: MR. WANG, SHENGHAO WANG: YES. SO, FIRST OF ALL, GREAT JOB. I AGREE WITH THE GENERAL PHILOSOPHY OF PAYING FEWER PEOPLE MORE AND REDUCING, YOU KNOW, HEADCOUNT TURNOVER, AND YOU KNOW, MAKING SURE THAT WE HAVE MORE EXPERIENCED STAFF. I DID HAVE TWO QUESTIONS. ONE, SO THE COLA, YOU SAID THAT THE 3.8% IS OVER THE LAST, THE LAST 12 CALENDAR MONTHS, YES, AND SO THAT ONLY ACCOUNTS FOR THE INFLATION COULD, BECAUSE WE SKIPPED A YEAR OF COLA, RIGHT? RIGHT, SO THAT'S ONLY ADJUSTING FOR THE LAST 12 MONTHS, DOESN'T CATCH UP TO WHAT WE MISSED IN THE 26 BUDGET YEAR. AND THEN CAN YOU GO BACK TO THE LITIGATION EXPENSE SLIDE? I SAW THAT DALLAS COUNTY. COUNTY HAS A SURPRISINGLY LOW LITIGATION
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EXPENDITURE, AND I WAS WONDERING IF YOU MIGHT BE ABLE TO COMMENT ON, ARE THEY JUST NOT DEFENDING US AGGRESSIVELY? DOES THAT, DO YOU KNOW IF THERE'S ANY RESULTING IMPACT TO THEIR, YOU KNOW, AVERAGE REDUCTION RATE IN PROPERTY VALUE? OR I JUST, YOU KNOW, SAW THAT AND IT KIND OF PIQUED MY INTEREST.LEANA MANN: I CAN'T SPEAK TO ANY APPRAISAL DISTRICT'S SPECIFIC LITIGATION STRATEGY. I WILL SAY THAT TRAVIS, AT LEAST FOR THE LAST DECADE, HAS BEEN A LEADER IN APPRAISAL DISTRICT LITIGATION, AND WE FIGHT FOR THE FAIRNESS OF THE ENTIRE SYSTEM.
YOU KNOW, EVERY ACCOUNT THAT GETS REDUCED THROUGH LITIGATION, SOME EVERYONE ELSE IS PICKING UP THAT THAT BURDEN, AND SO WE THINK THAT IT'S OUR, WE'RE BEING PRUDENT BY FIGHTING LITIGATION, AND I'M NOT SURE THAT ALL APPRAISAL DISTRICTS TAKE THAT SAME NICOLE CONLEY: STANCE. MISS MAN, DO YOU KNOW, IN TERMS OF LIKE WHAT I'VE FOUND, AND SORT OF JUST WORKING AT AN ENTITY, IS THAT YOU KNOW TRAVIS COUNTY TENDS TO BE A LITTLE BIT MORE ECONOMICALLY ROBUST, AND A LOT OF, LIKE, THERE'S A LOT OF OFFSETS, RIGHT? IF YOU LOOK AT THE SCHOOL DISTRICTS, YOU KNOW, AUSTIN VERSUS DALLAS VERSUS HOUSTON, THERE'S STILL A LOT OF HIGH-POVERTY AREAS THAT SORT OF MAKE SORT OF THE DIVERSITY, ECONOMIC DIVERSITY ACROSS THOSE AREAS LESS PRONE TO SUCH SORT OF SCRUTINY. I WONDER IF, BECAUSE TRAVIS COUNTY IS SUCH A SORT OF NOT WEALTHY ENCLAVE, BUT YOU KNOW, MUCH IT HAS A STARKLY DIFFERENT SORT OF PROTOTYPE IN TERMS OF ECONOMICS, THAT MAYBE IT MAKES US MORE PRONE TO THOSE KINDS OF, OR IF THERE'S JUST MORE TAX AGENTS PER CAPITA HERE. I DON'T KNOW IF ANY OF THAT, WE CAN LOOK AT THAT BEFORE LEANA MANN: OUR ADOPTION OF THE BUDGET AND PROVIDE THAT DATA TO THE BOARD. WE HAVE NOT PULLED THAT, BUT IT'S A VALID POINT, AND I THINK IT'S WORTH LOOKING AT. MR. NICOLE CONLEY: LEVINE, DICK LAVINE: I GUESS I'M THINKING IN THE SAME LINES YOU ARE, WHETHER WE HAVE A HIGHER.. I'M ASSUMING THAT A LOT OF LITIGATIONS COMING FROM NON-RESIDENTIAL, WE HAVE A HIGHER PROPORTION OF THAT KIND OF PROPERTY THAN SOME OF THESE OTHER DISTRICTS.
LEANA MANN: WE PROBABLY HAVE A HIGHER PROPORTION THAN MOST.
WE'RE PROBABLY VERY SIMILAR WITH TARRANT IN DALLAS, COMMERCIAL PROPERTY WISE. WE PROBABLY HAVE LESS THAN DALLAS, BUT CLOSE DUSTIN BANKS: OUR COMMERCIAL VALUES PREDOMINANTLY HIGHER THAN THE OTHER METROS WITH RESPECT TO MISS CONNELLY. NOT TO THERE ARE SEVERAL FACTORS, I MEAN, YOU HAVE FACTORS SUCH AS WHAT MISS MANN PREVIOUSLY MENTIONED WITH THE DOCKET SITUATION IN TRAVIS COUNTY, YOU KNOW, THREE YEARS AGO WE WENT FROM SOMEWHERE BETWEEN 12 AND 24 CASES SET FOR TRIAL IN A YEAR. OUR BIG INCREASE COUPLE YEARS AGO WAS 55 WHICH WAS A PANIC SITUATION. NOW WE'RE LOOKING ON ABOUT 130 SET FOR TRIAL IN A CALENDAR YEAR. SO GOING FROM RESOLVING A CASE INFORMALLY THAT IS MINIMAL COST TO TRIAL, WHICH BALLOONS YOUR COST UP EXTRAORDINARILY A LARGE AMOUNT, THAT THAT WEIGHS HEAVILY INTO THE EXPENDITURE, AND SO EVERY COUNTY, GIVEN THEIR COURT SITUATION, HAS THAT, THAT PLAYS A HUGE PART IN THE EXPENDITURE, AND THEN ADDITIONALLY, YOU HIT A GOOD FACTOR AS WELL, AGENCY AND AGENCIES WILLINGNESS TO INFORMALLY RESOLVE THE LAWSUITS. I DON'T, I DON'T KNOW WHAT ALL THE FACTORS ARE WITH DALLAS, BUT IF THEIR AGENCIES ARE MORE CONDUCIVE TO SETTLING IT INFORMALLY RATHER THAN TRYING A CASE WITH THEM, THAT PLAYS A HUGE FACTOR IN THE EXPENDITURE, NICOLE CONLEY: MISS CARTWRIGHT.
DEBORAH CARTWRIGHT: IF YOU DON'T MIND DOING AN ANALYSIS, JUST OF COMMERCIAL PROPERTY FOR THE JUST THE FIVE APPRAISAL, JUST THE LARGEST FIVE APPRAISED APPRAISAL DISTRICTS, AND THE COST ASSOCIATED WITH THAT, FOR AND THE REASON I BRING IT UP, TERRENCE PARCEL COUNT IS A REAL ANOMALY, BECAUSE THEY HAVE BROKEN OUT ALL OF THEIR MINERAL ACCOUNTS INTO SEPARATE, SO WHEN YOU SEE TERRENCE PARCEL, THAT ISN'T REALLY REFLECTIVE OF WHAT THEY'VE GOT, AND SO IF YOU COULD NARROW THIS ANALYSIS TO JUST COMMERCIAL FOR THOSE FIVE COUNTIES, I THINK IT WOULD GIVE US A BETTER FEEL FOR WHAT'S HAPPENING. HARRIS WILL ALWAYS BE THE BIGGEST, NO MATTER WHAT, BECAUSE THEY'VE GOT ALL THE REFINERIES AND ALL THAT SORT OF THING THAT'S DUMPED INTO THE COMMERCIAL CATEGORY. WELL, NO, THAT'S ACTUALLY AN INDUSTRIAL, BUT I THINK COMMERCIAL IS MORE REFLECTIVE OF ALL FIVE OF THE COUNTIES, LEANA MANN: YES, WE CAN DO THAT ANALYSIS. THANK YOU.
DEBORAH CARTWRIGHT: THANK YOU. AND I'M NICOLE CONLEY: WEIGHING, AND THEN MR. HANNAH, SHENGHAO WANG: I DON'T MEAN TO SUGGEST THAT IT'S NOT WORTH IT, RIGHT? I THINK THAT OUR POSITION OF, WE'RE GOING TO PROTECT THE INTEGRITY OF OUR PROPERTY ROLES IS ABSOLUTELY THE RIGHT ONE TO TAKE, UM. UM, I KNOW THAT WE CAN CALCULATE FOR OURSELVES, RIGHT,
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WHAT THE AVERAGE REDUCTION IN VALUE IS FOR THESE LITIGATED CASES. DOES TCAD HAVE THE ABILITY TO ACCESS THAT SAME TYPE OF INFORMATION FOR THE OTHER APPRAISAL DISTRICTS, OR IS THAT MUCH SIGNIFICANTLY HARDER, OR NOT OBTAINABLE? WE DUSTIN BANKS: CAN GET IT FROM THEM, BUT I'M GENERALLY AWARE OF THEIR REDUCTION PERCENTAGE FROM LITIGATION, AND IT'S SOMEWHERE - IT'S A CONSTANT, SOMEWHERE BETWEEN SIX AND 7% PER THE METRO, SHENGHAO WANG: AND IS THAT THAT'S COMPARABLE TO OURS? DUSTIN BANKS: YES, YES, AND THAT SO FLUCTUATES IN THAT RANGE, AND I COULD NOT TELL YOU ANY RHYME OR REASON OF HOW THAT'S CHANGED, OR YOU KNOW, LEANA MANN: WELL, I THINK THERE ARE MANY FIRMS THAT OPERATE THROUGHOUT THE STATE, AND SO YOU'LL HAVE THE SAME LAW FIRM THAT'S SUING FIVE IN FIVE DIFFERENT COUNTIES, AND SO THEIR APPROACH OR LITIGATION STRATEGY IS GOING TO BE THE SAME IN ALL COUNTIES, WHAT THEY'RE WILLING TO ACCEPT THROUGH A SETTLEMENT.DUSTIN BANKS: YEAH, THE SPECULATIVE CORRELATION WOULD BE WHAT DO WE'VE NOTICED THEM FOR, AND THEN WHAT DID THEY RECEIVE AT THE ARB LEVEL, ULTIMATELY DICTATES PROBABLY WHAT THE REDUCTION PERCENTAGE IS, WHAT THEY ARE WILLING TO RESOLVE WITH US AT IN LITIGATION. THAT'S A SPECULATION, NICOLE CONLEY: MR. HANNAH.
JETT HANNA: YEAH, JUST THIS IS MORE OF AN OBSERVATION THAN A QUESTION, I GUESS, AND IT'S JUST ALMOST IMPOSSIBLE TO REALLY KNOW HOW WELL, HOW EFFICIENT YOUR LITIGATION STRATEGY IS UNTIL YEARS IN THE FUTURE, AND I FEEL FOR YOU ON THAT. IT'S BECAUSE THE AMOUNT OF TIME IT TAKES, THE NUMBER OF CASES INVOLVED, IT'S ALMOST SOMETHING WE'VE GOT TO DO BY FEEL AND I KNOW THAT'S NOT A POPULAR WAY TO LOOK AT IT, PROBABLY, BUT JUST KIND OF WANTED TO GET THAT OUT THERE, BECAUSE WE'RE TALKING ABOUT DOING A BUDGET FOR NEXT YEAR ON SOMETHING THAT IT'S GOING TO TAKE YEARS AND YEARS AND YEARS TO FOR IT TO FIGURE OUT HOW IT'S DOING, AND I GUESS WHAT WE COULD DO IS LOOK AT THE PAST, BUT THEN WE'VE GOT TO TAKE INTO ACCOUNT THAT THOSE WERE DIFFERENT MARKET SITUATIONS, THOSE WERE DIFFERENT MANAGEMENT SITUATIONS, AND THAT THE POSITION OF OUR ENTITIES HAS CHANGED IN THE, IN THE MEANTIME, SO I JUST WANTED TO GET THAT OUT THERE, AND MAYBE THAT HELPS SOMEWHAT WITH TALKING ABOUT WHY OUR, OUR LITIGATION COSTS ARE, OR WHY MORE PEOPLE, MORE OF OUR PARCELS GET INTO LAWSUITS THAN ANYBODY ELSE, BUT THEN AGAIN, THE AMOUNT THAT HARRIS IS SPENDING ON THEIR LITIGATION, MY GOSH, THEY'RE THEY'RE PAYING A LOT MORE FOR A LOT LESS PARCELS, SO DUSTIN BANKS: YEAH, OTHER THAN OUTLIER DALLAS STRATEGY FOR LITIGATION ISN'T REALLY FLEXIBLE. MOST OF THE STRATEGIES ARE THE SAME AMONGST THE CADS. IT'S JUST THE WAY THE STATUTES WRITTEN, THE BALL IS IN THAT PROPERTY OWNER AND AGENT'S COURT, SO THEY REALLY, IT'S REALLY ON THEM WHETHER OR NOT A LAWSUIT GETS RESOLVED WITH US, AND HOW FAR THEY WANT TO GO DOWN THE ROAD TO RESOLVING THAT LAWSUIT. AND THEN THE OTHER FACTOR IS THERE'S A LOT OF CATCH UP. HARRIS HAS HAD A VERY LARGE BUDGET FOR A WHILE, AND A LOT OF THE CATS ARE PLAYING CATCH UP, AND WE'RE IN THE PLAYING CATCH UP BECAUSE OF THE VOLUME INCREASE THAT'S OCCURRED OVER THE LAST THREE YEARS, GOING FROM WHEN I FIRST STARTED HERE, 700 LAWSUITS TO NOW 2500 FOR THE LAST THREE YEARS IN A ROW, AND THOSE NUMBERS, THOSE NUMBERS CATCH UP, THOSE CATCH UP WITH YOU, ESPECIALLY WHEN THERE'S MORE CASES GETTING DOCKETED FOR ACTUAL TRIAL, AND YOU HAVING TO PREPARE AND ACTUALLY TRY A CASE, LEANA MANN: AND THESE INCREASES ARE ACROSS THE BOARD. WE DID A PANEL AT THE TAD CONFERENCE IN FEBRUARY WITH A COUPLE OTHER METROS, AND AFTERWARDS WE HAD CHIEF FRASER'S COMING UP SAYING WE'RE SEEING THE SAME THING, SO IT'S ACROSS THE STATE THAT WE'RE SEEING INCREASED LITIGATION.
JETT HANNA: WELL, I THINK IT BEARS SAYING Y'ALL DON'T HAVE TO SAY THIS, BUT TO ME, AS SOMEBODY INVOLVED IN THE POLITICAL ASPECT OF THIS, IT, THE SYSTEM IS GEARED TO ENCOURAGE LITIGATION, JUST EVERY STEP. THE WAY THAT I SEE ENCOURAGES PROTEST AND
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LITIGATION. LET'S PUT THAT OUT THERE.DUSTIN BANKS: YES, AND ONE LAST POINT ON THAT. THE OTHER THING IS THE AGENT SIDE, IT'S A BUSINESS COMPETITION, SO THAT IF THEY ARE INCENTIVIZED BECAUSE THEIR COMPETITORS ARE FILING, IF THEY DON'T FILE, THEN THEY'RE NOT DOING WHAT THEIR COMPETITORS DO, SO THEN THEY LOSE THAT BUSINESS, SO THERE'S THEY'RE STUCK IN THE SYSTEM AS WELL WITH RESPECT TO INCREASED LITIGATION, BECAUSE I WOULD, I KNOW FOR A FACT THAT SOME OF THESE ACCOUNTS IN PRIOR YEARS, IN FOUR YEARS AGO, THEY WOULD HAVE NEVER FILED SUIT, BUT OTHER THAN THEIR COMPETITORS ARE FILING SUIT ON THE COMPARABLE PROPERTIES, LEANA MANN: AND THE BOARD WAS, WE'RE VERY GRATEFUL FOR THE BOARD AND OUR TAXING AND EASE APPROVING THE BUDGET AMENDMENT AT THE END OF LAST YEAR THAT MOVED FUNDS INTO THAT RESERVE FOR LITIGATION, WHICH ACTUALLY MADE THIS INCREASE LESS THAN WHAT WE WOULD HAVE HAD TO INCREASE THE BUDGET THIS YEAR.
SO, THANK YOU ALL, THAT HELPED QUITE A BIT.
CELIA ISRAEL: YES, SHENGHAO WANG: AND ON THIS STUFF, YOU KNOW, THE THREAT IS STRONGER THAN THE EXECUTION, RIGHT? IF, IF, IF OUR, YOU KNOW, IF THE PEOPLE SUING THE DISTRICT SEE THAT THERE'S NOT AN ADEQUATE LITIGATION BUDGET, THAT'S EVEN MORE INCENTIVE TO SUE, AND BECAUSE THEN YOU KNOW YOU, THAT THAT YOU'RE MORE LIKELY TO GET, AND YOU KNOW, DESIRABLE RESULT FROM THEIR PERSPECTIVE, AND SO HAVING THIS KIND OF SHOWS THAT WE WERE SERIOUS, THAT IF YOU WANT TO PICK A FIGHT, WE'LL GIVE YOU A FIGHT, AND THAT AFFECTS THEIR DECISION MAKING ON WHETHER IT'S NOT WHETHER OR NOT IT'S WORTH PURSUING IT, AND HOW VIGOROUSLY TO PURSUE IT. SO, YOU KNOW, I THINK THIS IS ABSOLUTELY AN EXAMPLE OF, YOU KNOW, BEING WISE UP FRONT, ACTUALLY DOES, I THINK BELOW REDUCE COSTS ON THE LONGER TERM.
LEANA MANN: THINK IT'S REALLY IMPORTANT ALSO TO DISCUSS THE FUNDING FOR APPRAISAL DISTRICTS. SO, WHEN OUR BUDGET IS ADOPTED, IT GETS SPLIT BASED ON EACH ENTITY'S LEVY, THEY GET A PROPORTIONATE SHARE, AND THAT'S HOW OUR BUDGET IS FUNDED. IN THE EVENT THAT WE HAD INCREASED LITIGATION COSTS THAT WEREN'T PLANNED FOR DURING THE BUDGET PROCESS, WE WOULD HAVE TO GO BACK TO THE ENTITIES AND ASK THEM FOR MONEY THAT THEY ALSO DIDN'T BUDGET FOR. SO WE ARE CONSERVATIVE IN OUR APPROACH, WITH THE MINDSET THAT WE ARE NOT GOING TO GO BACK TO THE ENTITIES AT THE END OF THE YEAR IF OUR LITIGATION WAS LESS THAN WE ANTICIPATED, AND WE HAVE SAVINGS. WE CAN REFUND THAT TO THE TAXING ENTITIES, OR PUT IT IN RESERVE, WHATEVER THE BOARD WOULD LIKE TO DO WITH THAT. BUT WE HAVE THE OPTION TO GIVE IT BACK, NICOLE CONLEY: AND ENTITIES APPRECIATE THAT WHEN THAT TIME COMES, LEANA MANN: AND WE HAVE IN THE PAST.
NICOLE CONLEY: OKAY? ANY OTHER DISCUSSION? OKAY. AWESOME. I WOULD LOVE TO HAVE A FRIENDLY AMENDMENT TO AMEND OUR CURRENT AGENDA, SO THAT WE CAN MOVE FIGHT ON ITEM 5F TOWARDS THE END, SO WE CAN TAKE UP ITEM 5G AND 5H AND I THINK I RIGHT, BECAUSE WE'RE GOING TO GO ON EXECUTIVE FOR ALL OF THOSE, THAT'S CORRECT. YES, AND SO I LOVE FOR US TO, IF I COULD HAVE
[G. Discussion On Report From The Purchasing And Contract Review Committee]
A MOTION TO AMEND THE AGENDA TO MOVE BY ITEM 5F TOWARDS THE END OF THOSE ACTIONS, SO WE CAN TAKE THEM UP. BUT EARLIER DISCUSSION, WE HAVE SOME SCHEDULING CONSIDERATIONS. CAN I GET A MOTION? SO MOVED, PLEASE. CAN I GET A SECOND TO MOVE THAT ITEM? ALL IN APPROVAL OF MOVING THAT ITEM, AYE. ALL RIGHT, UNANIMOUSLY APPROVED. AND SO NOW WE'RE GOING TO SORT OF MOVE INTO NOW. I GOT TO THROW MY OWN STUFF OFF DISCUSSION ON THE PURCHASING AND CONTRACT REVIEW COMMITTEE, ITEM 5H G AND 5H DISCUSSION AND POSSIBLE ACTION FOR CHIEF APPRAISAL EMPLOYMENT SERVICES.SO, FOR BOTH ITEMS, WE'RE GOING TO ENTER INTO EXECUTIVE SESSION.
THE BOARD MAY MEET IN EXECUTIVE SESSION TO DELIBERATE ON ANY MATTER AUTHORIZED BY THE TEXAS GOVERNMENT CODE, CHAPTER 551 THE TEXAS OPEN MEETINGS ACT, INCLUDING SEC DOT 551 DOT 074 PERSONNEL MATTERS TO DELIBERATE THE APPOINTMENT, EMPLOYMENT, EVALUATION, REASSIGNMENT, DUTIES, DISCIPLINE, OR DISMISSAL OF THE CHIEF APPRAISER OR OTHER PUBLIC OFFICER EMPLOYEE, OR TO HEAR A COMPLAINT OR CHARGE. IS THERE A MOTION TO ENTER INTO EXECUTIVE SESSION? MOVED BY MR. MR. WANG, AND SECONDED BY MR. HANNAH. OKAY. AWESOME. THANK YOU. SEEING NO MORE DISCUSSION.
ALL IN FAVOR, NO OPPOSES. SO WE'RE GOING TO EXECUTIVE SESSION AT 12:44PM BYE. IT IS 125 AND THE TRAVIS CENTRAL APPRAISAL
[01:54:55]
DISTRICT BOARD OF DIRECTORS HAS RETURNED FROM EXECUTIVE SESSION.[01:54:58]
DURING THE EXECUTIVE SESSION, WE DISCUSSED. ITEM 5G DISCUSSION ON[01:55:01]
THE REPORT FROM THE PURCHASING AND CONTRACTS REVIEW COMMITTEE,[01:55:04]
AND ITEM 5H DISCUSSION AND POSSIBLE ACTION ON THE CONTRACT[01:55:07]
FOR THE CHIEF APPRAISER EMPLOYMENT SERVICES. NO ACTION[01:55:10]
IS NEEDED ON G, HOWEVER, WE DO NEED ACTION ON 5H CAN I GET A[H. Discussion And Possible Action On The Contract For Chief Appraiser Employment Services]
[01:55:15]
MOTION TO APPROVE ITEM 5H WHICH IS ACTION ON THE CONTRACT FOR[01:55:24]
THE CHIEF APPRAISER'S EMPLOYMENT SERVICES. MR. WANG, WE HAVE A[01:55:29]
MOTION BY MR. WANG, SECOND BY MR. LEVINE. ALL IN FAVOR OF ITEM 5H AYE. LET THE RECORD SHOW THAT IT WAS A UNANIMOUS VOTE. THERE ARE NO NAYS, I PRESUME. THANK YOU. NOW, ITEM FIVE I DISCUSSION[I. Discussion And Possible Action On Litigation And Appeals Related To Pending And Anticipated Lawsuits]
AND POSSIBLE ACTION ON LITIGATION AND APPEALS AND ANTICIPATED LAWSUITS. WE DON'T HAVE ANYTHING TO REVIEW UNDER THIS ITEM, AND SO NOW ALL I NEED IS A MOTION TO ADJOURN ITEM 5J OH, I'M SORRY. OH, MY, I FORGOT ITEM 5G SORRY, OUR AMENDED AGENDA ITEM G A REPORT FROM THE CHIEF APPRAISER. I GOT AHEAD OF[F. Discussion And Possible Action On Chief Appraiser's Report To Include: 2026 Protest Season, Community Outreach, And Taxpayer Experience Snapshot]
MYSELF BY BETH. I GOT AHEAD OF MYSELF LEANA MANN: QUICK. WE ARE FULLY IMMERSED IN PROTEST SEASON, SO AS OF, I THINK THIS REPORT WAS AS OF MONDAY, WE WERE AT 223,000 PROTESTS, SO AN INCREASE FROM LAST YEAR, WE'RE PROJECTED, AS OF RIGHT NOW, BASED ON WHAT'S SCHEDULED, TO BE AT 86% AT CERTIFICATION. THAT WILL INCREASE AS WE SETTLE MORE ACCOUNTS, SO WE WILL BE AT OUR 90% THRESHOLD. WE ALSO SLOW DOWN QUITE A BIT ON COMMUNITY OUTREACH DURING THE PROTEST SEASON, SO WE DID ONE EVENT IN JUNE. IT WAS TCAD 102 WITH STANSBERRY STANBURY REALTORS, AND THEN WE'LL PICK BACK UP IN AUGUST AS WE START TALKING BUDGETS AND TAX RATES WITH THE TAX OFFICE. OUR TAXPAYER EXPERIENCE SNAPSHOT: OUR STAFF CONTINUES TO DO A PHENOMENAL JOB. CUSTOMER SERVICE WAS RANKED 4.65 OUT OF FIVE, AND OUR APPRAISERS ARE AT A 4.43 OUT OF FIVE, AND THERE'S SOME COMMENTS THAT I'VE PROVIDED, BUT OUR STAFF ARE CONSISTENTLY GETTING FEEDBACK THAT THEY'RE RESPECTFUL, THEY'RE PROFESSIONAL, THEY'RE PROVIDING AN EDUCATIONAL OPPORTUNITY, SO THEY'RE DOING WONDERFUL WORK WITH THE PROTEST SEASON. IT'S BY FAR THE MOST STRESSFUL SEASON FOR THEM, AND SO IF THEY CAN CONTINUE THAT PROFESSIONAL AND KIND AND EDUCATIONAL CONVERSATION WITH PROPERTY OWNERS, EVEN DURING THAT HIGH STRESS TIME, IT'S AMAZING. AND THAT IS ALL I HAVE FOR THE CHIEF APPRAISER'S REPORT.NICOLE CONLEY: THANK YOU, MISS MANN. ANY QUESTIONS OR COMMENTS REGARDING THE CHIEF APPRAISAL'S REPORT? SHENGHAO WANG: YES, I WILL BE BRIEF. I WANT TO ECHO MISS MANN'S COMMENDATIONS OF THE STAFF, AND I'M VERY IMPRESSED ON THE PREVIOUS SLIDE THAT THE AVERAGE PHONE TIME DURING PROTEST SEASON IS NINE MINUTES WAIT TIME. I THINK THAT'S PRETTY FANTASTIC.
LEANA MANN: WE HAVE SOME ON HOLD MESSAGES THAT, AND WE ACTUALLY HAVE A LOT OF PEOPLE THAT HANG UP DURING THAT TIME, BECAUSE I GUESS THEY GET WHAT THEY NEED. SO MANY OF THEM CALL US FOR THE TAX OFFICE, SO WE ACTUALLY THEY GET THAT MESSAGE FIRST, AND THEN THEY HANG UP AND CALL THEM DICK LAVINE: JUST A LITTLE CONFUSED ON, BUT THE THIS PAGE HERE SHOWING INFORMAL REQUESTED AND INFORMALS HELD LEANA MANN: SO ON THE PROTEST FORM NOW PROPERLY DICK LAVINE: THE NEXT PAGE LEANA MANN: I DIDN'T INCLUDE THAT ONE IN THE SLIDE, SO THE INFORMALS REQUESTED EACH PROPERTY OWNER WHEN THEY FILE THEIR PROTEST CAN REQUEST AN INFORMAL MEETING, DICK LAVINE: AND I THINK MAYBE THE LABELS ARE WRONG, BECAUSE IT LOOKS LIKE ONLY 16,000 INFORMALS WERE REQUESTED, BUT 205,000 WERE HELD. NO, LEANA MANN: NO, TYPICALLY AGENTS DON'T MARK THAT THEY FORMALLY REQUEST AN INFORMAL, BUT THEN THEY'LL GO THROUGH THE PROCESS, THEY'LL BRING IN A DOCKET OF PROPERTIES TO HEAR INFORMALLY, SO IT'S USUALLY 50 OR SO, SO THEY WEREN'T REQUESTED, BUT THEY STILL HOLD THE INFORMAL. IT GIVES THEM SOME LEEWAY TO WHERE THEY'RE NOT BEING AUTOMATICALLY SCHEDULED FOR THE INFORMAL MEETING BY MARKING THAT CHECKBOX ON THE FORM.
DICK LAVINE: I SEE THAT, EXCUSE ME, IT'S 87 AND A HALF PERCENT ARE AGENTS, SO THAT'S REALLY WHAT WE'RE ALL TALKING ABOUT.
LEANA MANN: THAT'S CORRECT, WHICH IS RIGHT ABOUT WHERE WE WERE AT LAST YEAR, 87% NICOLE CONLEY: ANY ADDITIONAL COMMENTS OR QUESTIONS FOR MS. MANN? OKAY. NOW CAN I GET A MOTION TO ADJOURN THE MEETING,
[6. Adjournment]
SINCE THAT CONCLUDES OUR FORMAL AGENDA.ALL RIGHT, MOVED BY MR. ALFONSO, SECOND BY MS. MONTOYA. ANY
[02:00:03]
OBJECTIONS? OH, ALL IN FAVOR OF ADJOURNING THE MEETING, I KNOW IT'S UNANIMOUS. THANK YOU ALL.* This transcript was compiled from uncorrected Closed Captioning.