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HomeMy WebLinkAbout(0003) Appraisal District Budgets IRINFORMAL REPORT TO CITY COUNCIL MEMBERS No. To the Mayor and Members of the City Council December 14, 2021 r Page 1 of 3 v SUBJECT: APPRAISAL DISTRICT BUDGETS 2021-2022 rara Each local jurisdiction in the State of Texas is required by Section 6.06(d) of the Texas Property Tax Code to fund their local county appraisal districts. Local jurisdictions, which include school districts, cities, counties, etc., are allocated a percentage of the total appraisal districts costs. The City of Fort Worth currently funds four appraisal districts: Tarrant Appraisal District (TAD), Denton Central Appraisal District (DCAD), Parker County Appraisal District (PCAD), and Wise County Appraisal District (WCAD). The City of Fort Worth's pro-rata share for each district is based on the City's percentage of total property taxes imposed in each district. Appraisal District Budgets and the City's Allocation 2021 2022 Appraisal District District Budget CFW Allocation % of Total District Budget CFW Allocation % of Total TAD 25,592,687 2,692,299 10.52% 26,790,117 2,888,711 10.78% DCAD 14,234,604 126,935 0.89% 15,324,294 180,000 1.17% PCAD 4,427,825 17,319 0.39% 4,630,516* 23,123 0.50% WCAD 1 2,225,647 1 127 1 0.01 % 1 2,498,692 1 142 0.01 % 'Does not include portion of budget for collections, only includes appraisals budget TAD, DCAD, PCAD, and WCAD operate on a January through December fiscal year. For 2022, the City will make quarterly payments to TAD and DCAD in amounts up to $722,178.00 and $45,000.00, respectively. These total annual payments cover the calendar months of January 1, 2022 through December 31, 2022 with nine months falling in the City's current Fiscal Year 2022 and the remaining three months in the City's Fiscal Year 2023. PCAD and WCAD will be paid in full in January 2022. Tarrant Appraisal District 2021 2022 Increase % Increase District Budget 25,592,687 26,790,117 1,197,430 4.7% CFW Allocation 2,692,299 2,888,711 196,412 7.3% % of Total 10.5% 10.8% 0.3% Source: Tarrant Appraisal District 2022 Adopted Budget TAD's 2022 Budget reflects an increase of 4.7% over the previous year. This increase was primarily due to payroll expenses, as salary & benefit costs increased by $1.04M, or 5.4%, in 2022. This included the addition of 1 authorized position, increasing TAD's total to 212 positions. The remainder of the budget increase is attributable mostly to litigation & arbitration expenses, a result of increased protests by property owners. The City has 709,300 accounts in Tarrant County for the 2022 tax year. This equates to $4.07 in appraisal district costs per account. ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. To the Mayor and Members of the City Council December 14, 2021 r Page 2 of 3 v SUBJECT: APPRAISAL DISTRICT BUDGETS 2021-2022 rara Denton Central Appraisal District 2021 2022 Increase % Increase District Budget 14,234,604 15,324,294 1,089,690 7.7% CFW Allocation 126,935 180,000 53,065 41.8% % of Total 0.9% 1.2% 0.3% Source: Denton Central Appraisal District 2022 Adopted Budget DCAD's 2022 Budget reflects an increase of 7.7% over the previous year. Most of the increase is due to additional payroll costs of $859,560, or 8.7%, as 6 positions were added the DCAD's 2022 budget, resulting in a new total of 87. The remainder of the budget increase is attributable to Subscription & Contract costs, as DCAD plans to spend about $493,000 more on outside vendors for ownership, sales, and value information. The City has 10,120 accounts in Denton County for the 2022 tax year. This equates to $17.79 in appraisal district costs per account. Parker County Appraisal District 2021 2022 Increase % Increase District Budget 4,427,825 4,630,516 202,691 4.6% CFW Allocation 17,319 23,123 5,804 33.5% % of Total 0.4% 0.5% 0.1 % Source: Parked County Appraisal District 2022 Adopted Budget PCAD's 2022 Budget reflects an increase of 4.6% over the previous year. This increase was due to a 3.5% merit raise for current employees, as well as a $64,000 increase in mapping expenses. This was partially offset by a decrease of $50,000 in appraisal review board costs. The City has 1,585 accounts in Parker County for the 2022 tax year. This equates to $14.59 in appraisal district costs per account. Wise County Appraisal District 2021 2022 Increase % Increase District Budget 2,225,647 2,498,692 273,045 12.3% CFW Allocation 127 142 15 11.8% % of Total 0.01 % 0.01 % 0% Source: Wise County Appraisal District 2022 Adopted Budget ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. To the Mayor and Members of the City Council o-RTF+x� e-' 0 r3 e �i f �`o s SUBJECT: APPRAISAL DISTRICT BUDGETS 2021-2022 r�rA re�a December 14, 2021 Page 3 of 3 WCAD's 2022 Budget reflects an increase of 12.3% over the previous year. This increase was primarily due to payroll expenses, as salary & benefit costs increased by $134,000, or 9.5%, in 2022. Other budget increases include $39,000 in aerial imagery and $25,000 in legal counsel. The City has 82 accounts in Wise County for the 2022 tax year. This equates to $1.73 in appraisal district costs per account. Note: Although the City limits include land in Johnson County, this land is part of Spinks Airport, and therefore city owned. Thus, the city collects no taxes on the land and is not obligated to compensate the Central Appraisal District of Johnson County for appraisal services. If you have any questions, please contact Mark McAvoy, Director, Planning and Data Analytics Department, at (817) 392-6222. David Cooke City Manager ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS