10-24-05 Regular Meeting of Fiscal Affairs Committee Minutes

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• Green, Shannon From: Alexander, Cynthia Sent: Wednesday, November 09, 2005 9:12 AM To: Green, Shannon Subject: FW: Richardson: council considering increase in tax exemption for seniors from $30,000 to $50,000 For audit committee Original Message Sent: Thursday, November 03, 2005 7:33 AM Subject: Richardson: council considering increase in tax exemption for seniors from $30, 000 to $50, 000 Council considering increase in tax exemption for seniors Richardson: Members to decide Nou. 14 on boosting it to $50,000 12:00 AM CST on Thursday, November 3, 2005 By WENDY HUNDLEY/The Dallas Morning News Richardson senior citizens may soon receive a $20,000 increase in their property tax exemption. But some fear the generosity will be costly for the city. The City Council, which has been studying senior tax relief for months, is scheduled to vote Nov. 14 on increasing the exemption from $30,000 to $50,000. If approved, homeowners who are disabled or 65 and older would save an additional $105 a year in taxes. But the increase would also cost Richardson $600,000 in tax revenue at a time when demographic and economic forces are hurting the city's bottom line. Council member James Shepherd expressed concern about the impact of a cut in property taxes at Monday's work session. "If everything stays the same, and we cut $600,000, something's got to give,"he said. He warned that increasing the senior tax exemption could result in a "cut in services or raising taxes on everyone else in town." But city officials are optimistic about the economy. "We hope the expanding economy will help offset this loss,"Deputy City Manager Dan Johnson said. As a mature city, Richardson has one of the highest percentages of senior citizens in the Dallas-Fort Worth area. One in 10 residents is 65 or older, according to 2000 census data, and more than 19 percent of the city's homeowners take the senior