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Resident warns council against senior property tax freeze, cites revenue, demographics and equity concerns
Summary
Mike Lovelace, a Fair Oaks Ranch resident and municipal development district treasurer, urged council during Citizens to be Heard to oppose proposals for a property tax freeze or expanded senior exemptions, saying the city depends heavily on residential property taxes and that the existing senior exemption is already substantial.
At the Citizens to be Heard portion of the July 17 meeting, resident Mike Lovelace urged the council not to adopt a senior property-tax freeze or a larger age-based exemption. Lovelace identified himself as a Fair Oaks Ranch resident, a municipal development district treasurer and a certified public accountant.
Why it matters: Lovelace argued that Fair Oaks Ranch is a predominantly residential "bedroom community" that relies heavily on property-tax revenue to fund city services; in the city budget materials he cited, roughly 64 percent of the city's non-interest revenue comes from property taxes, he said. He contrasted that with the city of Boerne, which he said draws only about 21 percent of its non-interest revenue from property taxes.
Key points from Lovelace's remarks: - He said the average taxable value for a home in Fair Oaks Ranch is about $683,000. - He noted the city currently grants a $5,000 general exemption plus an additional $50,000 senior exemption for people 65 and older. He argued those over-65 households already receive a much larger exemption than younger homeowners and cautioned that freezes are permanent under Texas law. "Keep in mind, freezes are forever. They cannot be repealed in the state of Texas," he told council. - He said households 65 and older constitute about 37.8 percent of the city's households and that 65-plus households have grown faster (14.7 percent increase) than total households (12 percent increase) in recent years based on his handout.
No council action was taken during Citizens to be Heard; Lovelace presented the information for council consideration. He asked the council to weigh equity and the city's fiscal capacity before extending freezes or enlarging exemptions.
Ending: The remarks were recorded in the meeting minutes as part of the public-comment record. Any ordinance or exemption change would require a future agenda item, public notice and formal council action.
