Council directs staff to draft ordinance for 20% homestead exemption and to adjust senior exemption level

The Fate City Council on May 5 directed staff to draft an ordinance establishing a 20% general homestead exemption and to modify the city’s 65‑and‑older exemption, with the motion passing 5–2. Council instructed staff to bring the draft ordinance to the next regular council meeting for formal consideration.

Tyler Allen, a councilmember, said the 20% exemption would "provide tax relief to all the homeowners in the city" while acknowledging the change would shift some tax burden to businesses and multifamily property owners. Other councilmembers voiced concern that removing or reducing the senior exemption could disadvantage a growing senior population. Mark Hatley urged caution and said changes should not be rushed.

Jennifer, the city attorney, clarified statutory limits. She told council that state law restricts complete elimination of the senior exemption and that the city could reduce the senior exemption only to the minimum allowed; the transcript records council members discussing a $3,000 minimum as a legal floor. After that clarification, the motion as framed directed staff to prepare a 20% homestead exemption ordinance and to reduce the 65‑plus exemption to $3,000; the motion passed 5–2 with Councilwoman Chen and Councilmember Mark Hatley voting no.

Council emphasized the action was direction to staff only; staff confirmed the ordinance would return to council for formal adoption and public notice. Staff also acknowledged that the change would affect future senior residents differently from current seniors because the current limited tax status for existing seniors would remain in place for those already qualifying under the prior regime.