BOARD OF DIRECTORS MEETING MARCH 1, :30 A.M. MCLENNAN COUNTY APPRAISAL DISTRICT 315 S. 26 TH STREET WACO, TEXAS AGENDA

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1 BOARD OF DIRECTORS MEETING MARCH 1, :30 A.M. MCLENNAN COUNTY APPRAISAL DISTRICT 315 S. 26 TH STREET WACO, TEXAS MEETING CALLED TO ORDER AGENDA BUSINESS SESSION ITEMS REQUIRING BOARD ACTION 1. MINUTES OF DECEMBER 14, 2016 MEETING. 2. BOARD TO CONSIDER LINE ITEM CHANGES. 3. BOARD TO CONSIDER CHIEF APPRAISER EVALUATION AND CONTRACT. 4. BOARD TO CONSIDER RESOLUTION RESOLUTION TO EXPEND GENERAL RESERVE FUNDS FOR HOMESTEAD AUDIT EXEMPTION SERVICES. PUBLIC COMMENT DISCUSSION ITEMS 1. REVIEW AND DISCUSS INTERIM FINANCIAL REPORTS. 2. REVIEW AND DISCUSS 2018 PRELIMINARY BUDGET. 3. DISCUSS 2016 AUDIT. 4. REVIEW AND DISCUSS THE COMPTROLLER OF PUBLIC ACCOUNTS' PRELIMINARY FINDINGS OF THE 2016 PROPERTY VALUE STUDY FOR THE MCLENNAN COUNTY APPRAISAL DISTRICT. 5. REVIEW AND DISCUSS THE COMPTROLLER OF PUBLIC ACCOUNTS' 2015 METHODS AND ASSISTANCE PROGRAM REPORT FOR THE MCLENNAN COUNTY APPRAISAL DISTRICT. 6. DISCUSS UPCOMING LEGISLATION. MANAGEMENT AND COMMITTEE REPORTS 1. TAXPAYER LIAISON REPORT. TAXPAYER COMPLAINTS ARB UPDATES. 1 OF 2

2 BOARD OF DIRECTORS MEETING MARCH 1, :30 A.M. MCLENNAN COUNTY APPRAISAL DISTRICT 315 S. 26 TH STREET WACO, TEXAS CHIEF APPRAISER REPORT TO INCLUDE UPDATES REGARDING: APPRAISALS, ARB, ARBITRATIONS, LAWSUITS, TRAINING & EDUCATION, OPEN RECORDS REQUESTS, MCAD BUILDING AND MISCELANEOUS ISSUES. EXECUTIVE SESSION (NOTE FOR THIS ITEM: THE BOARD OF DIRECTORS WILL BE IN CLOSED SESSION FOR THIS ITEM) a. THE APPOINTMENT, EMPLOYMENT, EVALUATION, REASSIGNMENT, DUTIES, DISCIPLINE, OR DISMISSAL OF AN OFFICER OR EMPLOYEE, SUPERVISOR, CHIEF APPRAISER (TEX. GOVT. CODE SEC )(A) B. A PRIVATE CONSULTATION WITH THE BOARD'S ATTORNEY ON MATTERS IN WHICH THE DUTY OF THE ATTORNEY TO THE GOVERNMENTAL BODY UNDER THE TEXAS DISCIPLINARY RULES OF PROFESSIONAL CONDUCT OF THE STATE BAR OF TEXAS CLEARLY CONFLICTS WITH THE OPEN MEETINGS ACT OR PENDING OR CONTEMPLATED LITIGATION, AS AUTHORIZED BY LAW (TEX. GOVT. CODE SECTION , PREM SAI INC, C & N JOINT VENTURE, CLEMENTS JASON & JILL, PREM SAI INC, KRISHNA RAM, WALGREEN COMPANY, BRAZOS CONDOS, HOLLYWOOD THEATRES, C &N JOINT VENTURE, BRAUDAWAY ENTERPRISE, LLC., SMV WACO GREENVIEW, GRAYHAWKSDENE LP, TARGET CORPORATION, LP, LAKESHOREPARTNERSLP, PROJECT COUNTRY PLACE. LTD, DELMAR MATERIALS, CATERPILLAR WORK TOOLS INC, BAT RIVERBEND LLC, BUENGER O C, DUKE REALTY WACO DEVELOPMENT, DWIGHTS DISCOUNT VACUUM, BIG DIAMOND LLC, LAKESHORE PARTNERS LP, HUNTER-MANKINS LLP, ASPEN HEIGHTS WACO PROJECT LTD, CHICK-FIL-A INC, MFT LUXE. LLC, MFT RESIDENCE LLC, BETTY DENTON, WI-ERI WACO CY PROPERTY, LP, WI-ERI WACO H PROPERTY LP, LG VALLEY MILLS 35 LLC & GANDER MOUNTAIN CO, AUTOZONE, INC, SUPREME BRIGHT WACO II LLC, DHRUVKISH PARTNERS LTD, BDR WACO INVESTMENTS INC, SPRING WACO LP, DUKE REALTY (SEAVEST), BRAZOS CONDOS I LP, BRAZOS RIVER PARTNERSHIP, WESTDALE PROPERTIES, BRIAN E. HOWELL AND LEANNE L. HOWELL, MCDONALDS REAL ESTATE CO, CBL RM-WACO, LLC RICHLAND MALL, CHICK FIL A, INC, AUTOZONE TEXAS L.P AUTOZONE WEST INC, INDIAN RIDGE LLC & PECAN CREEK PARTNERSHIP LTD, IN-N-OUT BURGERS, KEY HOTEL DBA INDIGO HOTEL, JUSTIN & LESLIE SANDERSON, TRUE ORCHIDS OF TEXAS LLC, AMBASSADOR RESIDENCE LLC, FRENCH QUARTER LLC, TENNYSON ARMS LLC, MFT LUXE LLC, MFT RESIDENCE LLC, ASPEN HEIGHTS WACO PROJECT LTD, TARGET CORPORATION, LAKESHORE PARTNERS LP, PROGRESSIVE INNS INC, S2S DOMAIN WACO ASSOCIATES LLC, HEB GROCERY COMPANY LP, BIG DIAMOND, PROJECT COUNTRY PLACE LTD, MARS CHOCOLATE NORTH AMERICA LLC, JPMCC 2007 CIBC19 WACO RETAIL LLC, TEXAS FIRM HOLDINGS LLC A DOMESTIC LIMITED LIABILITY COMPANY, WRIGLEY MANUFACTURING, BRAZOS PARK APARTMENTS LTD, TEXAS E CREST LTD, TX SHERMAN MANOR APTS.LTD, CYNTHIA P CONNELL 1998 FAMILY TRUST, ROLLING DOUGH LTD,. BUSINESS SESSION (CONTINUED) OTHER ITEMS 1. ACTION ON ITEMS DISCUSSED IN CLOSED SESSION. 2. SET NEXT MEETING DATE AND AGENDA ITEMS. 3. ADJOURNMENT. 2 OF 2

3 McLENNAN COUNTY APPRAISAL DISTRICT BOARD OF DIRECTORS MEETING JANUARY 25, :00 A.M. McLennan County Appraisal District 315 S. 26 th St. Waco, TX The Board of Directors of the McLennan County Appraisal District met at 9:00 a.m. on Wednesday, January 25, 2017, at the McLennan County Appraisal District, 315 S. 26 Th St., Waco, TX The notice of such meeting was duly posted by 5:00 p.m., January 20, The members present for the meeting were: Mr. John Kinnaird, Mr. Allen Sykes, Mr. Tom Pagel, Mr. Randy Riggs, Mr. Ben Perry and Ms. Mildred Watkins. Also present at the meeting were Mr. Robert Meyers, Mr. Andrew Hahn, Mr. Joe Bobbitt, Ms. Erin O Brate, Mrs. Lisa Gonzalez and Mrs. Betty Sanchez. John Kinnaird called the meeting to order at 9:01 a.m. John Kinnaird introduced new member, Tom Pagel. Items for Board Action: Item #1 Board to elect Board Chairman and Secretary: Mildred Watkins motioned for John Kinnaird as Chairman. Ben Perry seconded. All Approved, no opposition. Mildred Watkins motioned for Allen Sykes as Secretary. Ben Perry seconded. All approved. No opposition. Item #2 Minutes of the December 14, 2016 meeting were reviewed. The minutes were approved as submitted. No opposition. Item #3 Board to consider Resolution to appoint ARB Chairman and Secretary for ARB: Board discussed. Allen Sykes motioned for Charles Scott as Chairman. Ben Perry seconded. After much discussion, Allen Sykes withdrew/amended his motion for Charles Scott as ARB Chairman and motioned for Marvin Steakley as ARB Chairman. Tom Pagel seconded. All approved, no opposition. Ben Perry motioned for Robert Chambers as Secretary. Allen Sykes seconded. No opposition. Item #4 Board to consider line item changes: Joe Don Bobbitt presented line item changes and explanations. Tom Pagel motioned to approve line item changes. Mildred Watkins seconded. All approved. No opposition. Item #5 Board to consider Chief Appraiser evaluation and contract: Board to discuss in executive session. Public Comment: Rita Jones.

4 McLENNAN COUNTY APPRAISAL DISTRICT BOARD OF DIRECTORS MEETING JANUARY 25, :00 A.M. McLennan County Appraisal District 315 S. 26 th St. Waco, TX Discussion Items: Item #1 Review and discuss Interim Financial Reports: Joe Don Bobbitt presented. Board discussed. Management and Committee Reports: Item #1 Taxpayer Liaison Report: Betty Sanchez presented report. No taxpayer complaints. Item #2 Chief Appraiser Update: Mr. Hahn presented report. Executive Session: Board went into Executive Session at 9:45 a.m. Executive Session Adjourned at 11:19 a.m. No Action on items discussed in Executive Session. No Action on Item #5 Board to consider Chief Appraiser contract and evaluation. The next meeting date will be tentatively set for last week of February. No Audit Committee Meeting to be held. John Manning to attend next scheduled board meeting to discuss upcoming financial audit. There is no other business to come before the board; the meeting adjourned 11:21 a.m. Allen Sykes, Secretary

5 February 24, 2017 MCLENNAN COUNTY APPRAISAL DISTRICT LINE ITEM CHANGES TO THE 2017 BUDGET CURRENT ADJUSTED ADJUSTMENT BUDGET BUDGET AMOUNT AMOUNT AMOUNT REASON 5235 PERSONAL PROPERTY LISTS $ 2, $ $ 2, Cost of service increased SUBSCRIPTIONS & BOOKS $ 9, $ 10, $ 19, Axiometrics not accounted for in budget due to one year contract. TRANSFER $ 12, $ 10, $ 22, CONTINGENCY FUND $ 150, $ 10, $ 139, CONTINGENCY AFTER ADJ ***Original 2017 Contingency amt. $150,000***

6 MCLENNAN COUNTY APPRAISAL DISTRICT CHIEF APPRAISER PERFORMANCE EVALUATION REPORT Chief Appraiser: Andrew J. Hahn, Jr. Initial Date of Employment: January 1, 2008 Date of Employment as Chief Appraiser: January 1, 2008 PURPOSE The Board of Directors of the McLennan County Appraisal District has established this annual evaluation and development program for the Chief Appraiser. The goal of the report is to communicate the expectations of the Board and ensure that the Chief Appraiser continues to maintain and enhance knowledge of mass appraisal, management, leadership, and the skills required to be an effective administrator. The Chief Appraiser coordinates and implements the goals and objectives established by Board policy, provisions of the Texas Property Tax Code and other applicable laws and rules. The Chief Appraiser's responsibilities include numerous statutory responsibilities related to the development of accurate appraisal rolls and the administration of the District. RATING SCALE 5 - OUTSTANDING ACHIEVEMENT OF JOB DUTY: Performs at an exceptional level. Work is of the highest quality; "self-starter"; striving for new knowledge and ideas; makes superior judgments with regard to work, staff and public. 4 - EXCEEDS JOB STANDARDS: Minimum of supervision is required; employee is innovative; demonstrates ability to handle the more complex aspects of the position in the best interests of the district. 3 - MEETS JOB STANDARDS: Assignments are completed in a timely manner, meets expectations and performance is at a satisfactory level. 2 - BELOW JOB STANDARDS: Performs the routine elements of the position; requires continual supervision to assure the timeliness, quantity, and quality of the position; individual needs to improve job performance. 1 - DOES NOT MEET MINIMUM STANDARDS: Performance falls far short of position expectations; immediate improvement is needed. JOB RESPONSIBILITY SURVEY Please mark the survey below with an appropriate number which you think is represented in the work performed. 1) Delegates, at his discretion, to appraisal district personnel duties and authority with the knowledge that such does not relieve the chief appraiser of the final responsibility for the action taken under such delegation. 2) Accepts responsibility for the general efficiency of the appraisal district, for the development and overall welfare of the appraisal district staff. 3) Conducts annual performance evaluation of appraisal district staff and grants salary adjustments deemed appropriate within budget constraints. 4) Conducts periodic reviews and analysis of personnel work efforts and products to determine achievement of established objectives, standards and deadlines. 5) Assumes responsibility for the use and care of appraisal district facility.

7 6) Makes sound decisions and exhibits good judgment. 7) Keeps abreast of the latest trends in the appraisal field and changes in the law by attending educational seminars and conferences, and by providing training opportunities for appraisal district staff responsible for carrying out those duties. 8) Maintains a positive and productive working relationship with the board of directors and/or taxing entities. 9) Attends and effectively participates in all meetings of the Board of Directors. 10) Reports to the Board and/or entities such matters as deemed necessary to the understanding and proper management of the appraisal district, or as the Board or entities may request. 11) Carries out the personnel guidelines established by the Board and advises them of needed changes or revisions. 12) Develops and effectively implements a bi-annual comprehensive Reappraisal. 13) Assumes responsibility for the overall financial planning of the annual budget recommendations and submits to the Board and entities for review and approval.. 14) Establishes and maintains efficient procedures and effective controls for expenditures of appraisal district funds in accordance with the adopted budget. 15) Provides adequate information to the Board on all financial matters. 16) Displays effective personal leadership attributes. 17) Maintains an effective and professional relationship with the public and news media. PERSONAL CHARACTERISTICS 18) Seeks and accepts constructive criticism of his work. 19) Defends principles and convictions in face of pressure and partisan influence in a professional manner. 20) Expresses himself well when working with the Board and/or taxing entities. 21) Thinks well on his feet when difficult situations occur. 22) Understands people and is quick to respond to their desires. 23) Promotes high professional standards for all appraisal district employees by his actions. 24) Supports board policies that run contrary to his personal recommendations. 25) Conducts all official business with the Board as a whole and not with portions of the Board or individual members.

8 OVERALL APPRAISAL AND RECOMMENDATIONS Overall appraisal of the Chief Appraiser is: Shows excellence Exceeds what is expected in meeting job requirements Meets job requirements Below what is expected in meeting job requirements Inability in meeting job requirements Comments or recommendations: John Kinnaird, Chairman Andrew J. Hahn, Jr., Chief Appraiser Allen Sykes, Secretary Date

9 THE STATE OF TEXAS COUNTY OF McLENNAN KNOW ALL MEN BY THESE PRESENTS: CONTRACT EXTENSON WITH CHIEF APPRAISER THIS CONTRACT EXTENSION is made this day of March 1, 2017, by and between the McLENNAN COUNTY APPRAISAL DISTRICT of McLennan County, Texas, duly organized in accordance with the laws of Texas, acting herein by and through its governing body, hereinafter referred to as DISTRICT, and ANDREW J. HAHN, hereinafter referred to as APPRAISER. W I T N E S S E T H: The DISTRICT has previously entered into a Contract for the employment of the APPRAISER, dated 22 nd day of October 2007, which Contract was amended on the 23 rd day of January The Board of Directors has performed an annual evaluation of the APPRAISER and finds that the APPRIAISER has satisfactorily performed his duties as stated in the Contract, as amended. In order to continue to retain the services of the APPRAISER, the DISTRICT is entering into to this Contract Extension to extend the term of employment of the APPRAISER for an additional year and to provide for the compensation due the APPRAISER. I. The DISTRICT and the APPRAISER do hereby agree to extend the term of the Contract, as amended. The Contract, as amended, was extended and currently provides that it shall terminate on December 31, The Contract shall hereby be extended for an additional year(s) so that it will terminate on the 31 st day of December 20. II. During the term of the Contract, as amended, the consideration for the services of the Appraiser shall be determined by mutual agreement between the Board of Directors and the Appraiser for each budget year; provided, however, that the consideration paid Appraiser for his services shall not be less than the amount paid the Appraiser in the immediate past year. Any increase in pay shall become effective as of the first pay period in January of the following calendar year. The amount of such consideration shall be listed as a line item in the annual budget of the McLennan County Appraisal District. Additionally, the APPRAISER will be entitled to all other benefits provided in the 1

10 Contract, as amended, including, but not limited to, holidays, sick leave, vacations, medical and life insurance, worker s compensation, retirement, and reimbursement for business and educational expenses, auto allowance and other benefits provided to employees of the DISTRICT. Those provisions in the Contract, as amended, providing for the compensation and benefits due the APPRAISER are incorporated herein as if fully set out. III. The APPRAISER shall perform all of the duties, obligations and responsibilities of the Chief Appraiser as stated in the Contract, as amended during the extended term, and those provisions in the Contract, as amended, providing for the duties, obligations and responsibilities of the APPRAISER are incorporated herein as if fully set out. IN TESTIMONY WHEREOF, the DISTRICT and APPRAISER have hereunto set their hands in duplicate originals the day and year as written above. McLENNAN COUNTY APPRAISAL DISTRICT CHIEF APPRAISER JOHN KINNAIRD CHAIRMAN ANDREW J. HAHN CHIEF APPRAISER APPROVED AS TO FORM AND LEGALITY ATTEST: ROBERT L. MEYERS ATTORNEY ALLEN SYKES SECRETARY 2

11 Resolution RESOLUTION TO EXPEND GENERAL RESERVE FUNDS FOR HOMESTEAD EXEMPTION AUDIT SERVICES WHEREAS, on May 24, 2016 the Board of Directors determined that it would be in the public interest to designate a portion of the excess funds resulting from the 2015 budget for General Reserve Fund; and, WHEREAS, the McLennan County Appraisal District entered into a contract for Homestead Exemption Audit Services which necessitates the expenditure of part of the General Reserve Fund for payment of these services, NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE McLENNAN COUNTY APPRAISAL DISTRICT THAT: The amount of $125, held in the General Reserve Fund shall be transferred to the District s 2017 Budget for expenses incurred for the Homestead Exemption Audit Services. RESOLVED THIS DAY OF MARCH, John Kinnaird, Chairman, Board of Directors ATTEST: Allen Sykes, Secretary, Board of Directors

12 MCLENNAN COUNTY APPRAISAL DISTRICT 2018 PROPOSED BUDGET DETAIL We currently serve 43 taxing entities that include 20 school districts, 18 cities, the county and 5 other entities. We are responsible for appraising more than 120,000 parcels with a market value in excess of twenty billion dollars. Our overall budget for 2018 will increase by 9.3% from our 2017 budget. The major items responsible for the change include a Homestead Exemption Audit which is expected to cost $348,000 over 3 years but return $1.2 million to the entities, a street level photograph project which will help capture improvement value, a replacement phone system, and the addition of a CPA to our staff. The proposed budget excluding these items is 0.1% increase over the 2017 budget. ORDINARY INCOME Income is comprised of allocated payments from the taxing entities served by the appraisal district. Allocations are based on the percentage obtained by dividing the levy for each entity by the total levy of all entities. Additional income is generated from interest earned on the Money Market account at Extraco, miscellaneous income (copies, open records requests, and the sale of retired assets) and personal property rendition penalties. Interest on investments are still down because of a low interest rate environment. EXPENSES Salaries: The 2018 individual salaries are up 4% which is comparable to the increases the City of Waco and the county employees received in A cost of living adjustment of 2.5% for all employees and a 1.5% increase based on merit only to reward those employees that are the most productive and will be determined at the end of The total salary is up 7.3% with the addition of a CPA to our administrative department. Our staff is currently comprised of 41 employees of which 21 are appraisers including a vacant commercial opening. All but one, out of the 21 appraisers, are registered professional appraisers with the State of Texas. The one trainee must complete the five-year training period to achieve this designation. We have three highly skilled mapping professionals. The appraisers are required to have professional designations that require extensive training and testing along with continuing education courses to continue their employment. All support staff are also required to take training courses that review new legislative mandates which affect all appraisal districts. Since training costs are high, it is a common practice for other districts to look for individuals who are already certified or close to certification. That is why it is very important that we try to retain our staff by paying competitive wages, otherwise we will constantly be paying more for training costs. The district has also started hosting International Association of Assessing Officers (IAAO) courses to offer additional professional designations to our staff to help with retention and saves on travel costs for the district. A review of other appraisal districts show that current salaries for McCAD s clerical and appraisal positions are well below the average, in comparison. Currently, there are 42 positions provided for in the 2018 budget. We are using temp services to supplement the work of full-time employees as needed. This also allows us to control benefit costs. Benefits: Health insurance costs are expected to increase approximately 12% from current costs or 10% over the 2017 approved budget, resulting from changes to the federal healthcare guidelines. The district is paying $ per month per person for employee coverage in We have managed to reduce this cost by using our HRA plan and providing coverage with higher deductibles. Longevity pay is granted to full time McCAD employees who have been with the district for at least five years as of January 1, Longevity is paid at a rate of $4.00 per month, per full year of service, up to a maximum of twenty-five years beginning October 1, Because training is so costly, longevity is used to retain experienced and well trained employees. Pension: The TCDRS budgeted rate is 13% for 2018, which remains unchanged from We have also included $30,000 in the budget to be applied to the district s TCDRS Unfunded Actuarial Accrued Liability (UAAL). This amount is the same as it has been for the last several years.

13 Professional Services: Appraisal Review Board (ARB) members will be paid at $ per full day and $75.00 for half days. The chairman is paid $ per full day and $87.50 for half days. The amount is the same as the 2016 budget which increased as numbers of protests have grown in the past several years due to market increases and the legislative spotlight on appraisal districts in general. The number of ARB members was reduced this year from 16 to 13 which allows for 4 panels and a spare member as opposed to 5 panels which we no longer believe will be necessary due to increased efficiency in handling hearings. The appraisal services expense line item covers contractual services with Capitol Appraisal Group. Capitol appraisal works utility properties, mineral properties, and specialty properties. These specialty properties include: Riesel Power Plant, telephone towers and cable companies. Legal fees are budgeted for the services of Mr. Robert Meyers and fees associated with miscellaneous litigation. Growing litigation expenses are responsible for the decreased refunds to the entities in past years. We are increasing our budget by less than 1% to meet the expected defense costs, and an amount to be determined after the 2016 Financial Audit, to be designated to a litigation funding order to cover potential costs of defending the power plant and other commercial valuations. Temp services have also increased to assist with personal property renditions and new mandates requiring the exchange of evidence before each hearing. Since most taxpayers bring their evidence the day of their hearing, we must have temps scanning the evidence as it comes in the door. Computer services will remain the same as 2017 to allow for additional consulting work to offset the retirement of our IT Director. Office Operating Expenses: Office supplies have increased in cost over the last few years and the district has increased its use of state purchasing contracts. Printing expenses including costs for processing Notices of Appraised Value, personal property renditions, and personal property penalty letters have also increased. Additional postage costs are due to increased requirements to notify taxpayers of changes and increases in the amount of certified mail. Insurance expenses cover general liability, property (real and contents), electronic data processing, accounts receivable/valuable papers, commercial crime, umbrella liability, and employee/public officials liability. Maintenance Expenses: The software maintenance budget includes maintenance expenses for the computer assisted mass appraisal software used for valuing properties, as well as, software for GIS mapping, and deed information. These items increase approximately 2%-3% each year. Since replacing our old elevator, we have been able to reduce our overall maintenance costs. CAPITAL OUTLAY We will be replacing our phone system this year. It has proven difficult to find parts for the main system due to its age. We may be able to retain the handsets and only have to replace the system s back end. We will be flying each school district according to our future reappraisal plans. Continuing with Change Finder options to our aerial flights, we will be able to work more efficiently and also meet legislation mandates for inspecting properties once every three years. It also allows us to pick up new improvements that did not have building permits issued on them. The cost for aerials will be minimal when compared to the value added by picking up these new improvements. In addition to aerial imagery the district will begin to utilize a street view photography vendor that can provide high resolution images of improved properties. This will allow the district to prioritize staff for inspections instead of routine photos. We replaced our servers in 2015 and expect them to remain in service until Desktop computers were replaced in 2012 and 2013, and we plan to replace half in 2019 and half in The sewer lift station has been adjusted and we do not expect to need to replace it at this time. DEBT SERVICE EXPENSE These budgeted expenses cover twelve months of mortgage payments in We refinanced the building with Capital One in 2016, lowering our interest rate from % to 4.5%. This will save the entities over $100,000 in additional interest over the life of the loan.

14 CONTINGENCY FUND The contingency fund has been reduced to $100,000, as we have designated excess funds for contingency items. There is no pending litigation against the District other than valuation related cases. Additionally, the board will consider policies to ensure that sufficient capital reserves are in place to maintain a positive fund balance, now and in the future, as well as having developed a long term budget.

15 MCLENNAN COUNTY APPRAISAL DISTRICT 2018 PRELIMINARY ANNUAL BUDGET 2017 BUDGET ACCOUNT TOTAL 5000 SALARIES ` 5001 ADMINISTRATION 277, ,291 83, APPRAISAL 921, ,069 39, MAPPING 155, ,760 7, CLERICAL 443, ,760 5, PART TIME MERIT PAY AUTO & PHONE ALLOWANCE 132, ,020 4,980 TOTAL SALARIES 1,928,040 2,068, % 5100 BENEFITS 5105 FICA TAX EXPENSE 148, ,813 10, HEALTH INSURANCE 204, ,950 20, PB&H DEDUCTIBLE (HRA) 30,000 30, DISABILITY 6,000 6, LIFE INSURANCE 8,750 8, LONGEVITY 14,100 14, PENSION 253, ,267 17, PENSION UAAL 30,000 30, UNEMPLOYMENT COMPENSATION 9,200 9, WORKMANS COMPENSATION 9,100 16,800 7,700 TOTAL BENEFITS 712, , % 5200 PROFESSIONAL SERVICES 5201 APPRAISAL REVIEW BOARD 80,000 80, APPRAISAL SERVICES 27,500 30,000 2, AUDIT 6,500 6, BOARD OF DIRECTORS 1,200 1, COBRA COMPUTER SERVICES 10,000 10, CONSULTING SERVICES ACCOUNTING 15,000 0 (15,000) MISC CONSULTING TXMASS HOMESTEAD AUDIT 0 112, LAWN SERVICE 3,000 3, JANITORIAL SERVICES 22,000 22, ARBITRATION 3,000 3, LEGAL SERVICES RETAINER 22,800 24,000 1,200 COURT COST 200, ,000 0 MISC LEGAL SERVICES 20,000 20, ARB Legal Counsel 6,000 5,000 (1,000) 5233 MOVING SERVICE PAYROLL SERVICE FEE 4,869 4, PERSONAL PROPERTY LISTS 2,500 2, SHREDDING SERVICE TEMP SERVICES 80,000 75,000 (5,000) TOTAL PROFESSIONAL SERVICES 504, , % 5300 OFFICE OPERATING EXPENSES 5301 DUES AND MEMBERSHIPS 6,000 6, FORMS AND PRINTING NOTICES 22,000 24,200 2, RENDITIONS 7,500 8, MISC 4,000 4, INSURANCE 7,100 7, LEGAL PUBLICATIONS 9,500 6,000 (3,500) 5317 MILEAGE REIMBURSEMENT 4,200 1,000 (3,200) 5320 OFFICE EQUIPMENT RENTAL POSTAGE MACHINE 7,008 6,700 (308) COPIERS 12,000 12, POSTAGE AND FREIGHT POSTAGE 90,000 94,500 4, FREIGHT SMALL EQUIPMENT AND FURNITURE 2,500 2,000 (500) 5336 SMALL SOFTWARE 4,800 3,000 (1,800) 5340 SUBSCRIPTIONS AND BOOKS 9,700 20,000 10, SUPPLIES OFFICE SUPPLIES 31,500 24,000 (7,500) 5350 TRAINING AND EDUCATION 20,000 17,000 (3,000) 5355 TRAVEL 15,000 15, UTILITIES PHONE AND INTERNET 20,000 20,000 0 ELECTRIC 27,000 27,000 0 WATER AND SEWER 4,800 4, MISC EXPENSE 1,350 1,351 1 TOTAL OFFICE OPERATING EXPENSES 306, , % 2018 ACCOUNT TOTAL $ CHANGE PERCENT CHANGE

16 5400 MAINTENANCE EXPENSES 5401 BUILDING 15,000 10,000 (5,000) 5402 ELEVATOR 5,000 5, COMPUTER EQUIPMENT-HARDWARE 6,000 6, SMALL EQUIPMENT AND FUNITURE 3,000 3, SOFTWARE MAINTENANCE TRUE AUTOMATION 116, ,967 2,400 SOFTWARE SERVICE 6,000 6,000 0 ESRI 10,000 10, LICENSE TELEPHONE MAINTENANCE 1,800 1,800 0 TOTAL MAINTENANCE EXPENSES 163, , % 5500 CAPITAL OUTLAY 5501 BUILDING IMPROVEMENTS 5,000 5, SMALL EQUIPMENT 10,000 5,000 (5,000) 5505 LARGE EQUIPMENT 20,000 60,000 40, LARGE FURNITURE 1,000 1, SOFTWARE AERIAL PHOTOGRAPHY 70, , ,000 TOTAL CAPITAL OUTLAY 106, , % 5600 DEBT SERVICE EXPENSE 5601 DEBT SERVICE INTEREST--BUILDING 71,332 77,356 6, DEBT SERVICE INTEREST--EQUIPMENT DEBT SERVICE INTEREST--MAPPING DEBT SERVICE PRINCIPLE--BUILDING 69,500 50,256 (19,244) 5606 DEBT SERVICE PRINCIPLE--EQUIPMENT DEBT SERVICE PRINCIPLE--MAPPING 0 TOTAL DEBT SERVICE EXPENSE 140, , % 6000 CONTINGENCY FUND 6001 BUILDING FUND EQUIPMENT FUND GENERAL CONTINGENCY FUND 150, ,000 (50,000) TOTAL CONTINGENCY FUND 150, , % TOTAL OPERATING BUDGET $ 4,012,115 $ 4,382, % LESS BUDGETED GENERAL INCOME 4033 INTEREST ON INVESTMENTS 2, MISCELLANEOUS REVENUE 1,500 4, BPP RENDITION PENALTY REVENUE 10,000 10,000 TOTAL GENERAL INCOME 13,500 14,150 LESS FUND BALANCE CREDIT TO ENTITIES 0 TOTAL ENTITY SUPPORT $ 3,998,615 $ 4,368, %

17 MCLENNAN COUNTY APPRAISAL DISTRICT YEARLY BUDGET COMPARISON YEAR TOTAL BUDGET AMOUNT % BUDGET INCREASE ENTITY CONTRIBUTION 4,104,432 3,925,152 3,726,481 3,846,659 3,792,019 4,514,164 3,929,700 4,012,115 4,382, % -4.37% -5.06% 3.22% -1.42% 19.04% % 2.10% 9.24% 3,306,950 3,195,695 3,194,169 3,377,201 3,616,635 4,498,134 3,913,850 3,998,615 4,368,811 TOTAL EXPENSE AUDITED 3,513,082 3,300,473 3,505,320 3,512,657 3,872,914 3,713,941 ***WHAT SHOULD HAVE BEEN CREDITED -206, , , , , ,193 ENTITY ACTUAL CREDITED AMOUNT 698, , , ,384 36,929 0 FUND BALANCE 513, , ,384 36, ,282 CONTINGENCY FUNDS NUMBER OF EMPLOYEES 550, , , , , , , , , *** This is the difference between the Entity Contribution & what the District actually spent.

18 4:01 PM 02/23/16 Accrual Basis Final Budget MCLENNAN COUNTY APPRAISAL DISTRICT Profit & Loss Budget Yearly Comparison January 2011 through December 2016 Approved Forecast Ordinary Income/Expense Income 4020 Revenue from Taxing Entities 3,616, ,498, ,913, ,998, ,368, % 4,544, % 4,536, % 4,541, % 4,532, % 4025 Surplus from Prior Year 155, Interest on Investments 3, , % % % % % 4032 Interest from CD's 3, Interest from MM*Met Life Miscellaneous Revenue 2, , , , , % 4, % 4, % 4, % 4, % 4045 BPP RENDITION PENALTY REVENUE 14, , , , , % 10, % 10, % 10, % 10, % Total Income 3,792, ,514, ,931, ,012, ,382, % 4,558, % 4,550, % 4,555, % 4,546, % Gross Profit 3,792, ,514, ,931, ,012, ,382, % 4,558, % 4,550, % 4,555, % 4,546, % Expense 5000 Salaries 5001 Administration 274, , , , , % 367, % 374, % 382, % 389, % 5002 Appraisal 874, , , , , % 979, % 998, % 1,018, % 1,039, % 5003 Mapping 141, , , , , % 166, % 169, % 172, % 176, % 5004 Clerical 383, , , , , % 457, % 466, % 476, % 485, % 5006 Part Time 4, Auto and Phone Allowance 130, , , , , % 132, % 132, % 132, % 132, % Total 5000 Salaries 1,808, ,867, ,882, ,928, ,068, % 2,102, % 2,141, % 2,182, % 2,223, % 5100 Benefits 5105 FICA Tax Expense 140, , , , , % 168, % 171, % 174, % 177, % 5110 Health Insurance PB&H-Deductible 35, , , , , % 30, % 30, % 30, % 30, % 5110 Health Insurance - Other 157, , , , , % 236, % 248, % 260, % 273, % Total 5110 Health Insurance 192, , , , , % 266, % 278, % 290, % 303, % 5113 Disability Long Term Insurance 4, , , , , % 6, % 6, % 6, % 6, % 5115 Life Insurance 7, , , , , % 8, % 8, % 8, % 8, % 5120 Longevity 10, , , , , % 16, % 19, % 22, % 24, % 5125 Pension 240, , , , , % 273, % 278, % 283, % 289, % 5126 Pension UAAL-TCDRS 30, , , , , % 30, % 30, % 30, % 30, % 5130 Unemployment Compensation 9, , , , , % 9, % 9, % 9, % 9, % 5135 Workers Compensation-TML 8, , , , , % 11, % 11, % 11, % 11, % Total 5100 Benefits 643, , , , , % 789, % 812, % 835, % 859, % 5200 Professional Services 5201 Appraisal Review Board 90, , , , , % 80, % 80, % 80, % 80, % 5205 Appraisal Services 25, , , , , % 30, % 30, % 30, % 30, % 5210 Audit-PB&H 5, , , , , % 6, % 6, % 6, % 6, % 5215 Board of Directors 1, , , , , % 1, % 1, % 1, % 1, % 5217 Cobra Computer Services 4, , , , , % 10, % 10, % 10, % 10, % 5220 Consulting Services Accounting 2, , , , % 15,000 15, % 15, % 15, % Misc Consulting 40, , % 0.0% Txmass 5220 Homestead Audit Service 112, ,000 Total 5220 Consulting Services 43, , , , , % 127, % 15, % 15, % 15, % 5222 Lawn Service 3, , , , , % 3, % 3, % 3, % 3, % 5225 Janitorial Services-PBMS 21, , , , , % 22, % 22, % 22, % 22, % 5229 Arbitration , , , , % 3, % 3, % 3, % 3, % Page 1 of 3

19 4:01 PM 02/23/16 Accrual Basis Final Budget MCLENNAN COUNTY APPRAISAL DISTRICT Profit & Loss Budget Yearly Comparison January 2011 through December 2016 Approved Forecast Legal Services Retainer-MVBA 22, , , , , % 24, % 24, % 24, % 24, % Court Cost-MVBA 152, , , , , % 200, % 200, % 200, % 200, % Misc Legal Services 38, , , , , % 20, % 20, % 20, % 20, % ARB Legal Counsel-RAY ARMSTRONG 6, , , , , % 6, % 6, % 6, % 6, % Total 5230 Legal Services 220, , , , , % 250, % 250, % 250, % 250, % 5233 Moving Service 5234 Payroll Service Fee 1, , , , , % 4, % 4, % 4, % 4, % 5235 Personal Property Lists 2, , , , , % 2, % 2, % 2, % 2, % 5239 Shredding Service % % % % % 5240 Temp Service 69, , , , , % 75, % 75, % 75, % 75, % Total 5200 Professional Services 491, , , , , % 615, % 503, % 503, % 503, % 5300 Office Operation Expenses 5301 Dues and Memberships 6, , , , , % 6, % 6, % 6, % 6, % 5305 Forms and Printing Notices 19, , , , , % 24, % 24, % 24, % 24, % Renditions 7, , , , , % 8, % 8, % 8, % 8, % Misc 3, , , , , % 4, % 4, % 4, % 4, % Total 5305 Forms and Printing 30, , , , , % 36, % 36, % 36, % 36, % 5310 Insurance on Bldg-TML 6, , , , , % 7, % 7, % 7, % 7, % 5315 Legal Publications-Waco Tribune 8, , , , , % 6, % 6, % 6, % 6, % 5317 Mileage Reimbursement 4, , , , % 1, % 1, % 1, % 1, % 5320 Office Equipment Rental Postage Machine-Neopost 5, , , , , % 7, % 7, % 7, % 7, % Copiers-CTWP 11, , , , , % 12, % 12, % 12, % 12, % Total 5320 Office Equipment Rental 16, , , , , % 19, % 19, % 19, % 19, % 5330 Postage and Freight Postage 80, , , , , % 99, % 104, % 109, % 114, % Freight % % % % % Total 5330 Postage and Freight 80, , , , , % 100, % 105, % 110, % 115, % 5335 Small Equipment and Furniture 2, , , , , % 2, % 2, % 2, % 2, % 5336 Small Software 4, , , , , % 4, % 4, % 4, % 4, % 5340 Subscriptions and Books 9, , , , , % 20, % 20, % 20, % 20, % 5345 Supplies Office Supplies 31, , , , , % 31, % 31, % 31, % 31, % Total 5345 Supplies 31, , , , , % 31, % 31, % 31, % 31, % 5350 Training and Education 17, , , , , % 20, % 20, % 20, % 20, % 5355 Travel 18, , , , , % 15, % 15, % 15, % 15, % 5360 Utilities Phone and Internet 19, , , , , % 27, % 27, % 27, % 27, % Electric-Hudson 25, , , , , % 27, % 27, % 27, % 27, % Water and Sewer-City of Waco 4, , , , , % 4, % 4, % 4, % 4, % Total 5360 Utilities 48, , , , , % 58, % 58, % 58, % 58, % 5365 Misc Expenses 1, , , , , % 1, % 1, % 1, % 1, % 5366 Bank Service Fee 2, Total 5300 Office Operation Expenses 286, , , , , % 330, % 335, % 340, % 346, % 5400 Maintenance Expenses 5401 Building 8, , , , , % 15, % 15, % 15, % 15, % 5402 Elevator 17, , , , , % 5, % 5, % 5, % 5, % 5405 Computer Equipment-Hardware 6, , , , , % 6, % 6, % 6, % 6, % Page 2 of 3

20 4:01 PM 02/23/16 Accrual Basis Final Budget MCLENNAN COUNTY APPRAISAL DISTRICT Profit & Loss Budget Yearly Comparison January 2011 through December 2016 Approved Forecast Small Equipment and Furniture 1, , , , , % 3, % 3, % 3, % 3, % 5415 Software Maintenance True Automation-Harris 93, , , , , % 100, % 121, % 102, % 123, % Software Service 7, , , , , % 6, % 6, % 6, % 6, % ESRI 10, , , , , % 10, % 10, % 10, % 10, % License 4, Total 5415 Software Maintenance 110, , , , , % 116, % 137, % 118, % 139, % 5420 Telephone Maintenance-PHD 2, , , , , % 1, % 1, % 1, % 1, % Total 5400 Maintenance Expenses 145, , , , , % 147, % 168, % 149, % 170, % Total Expense 3,375, ,656, ,971, ,613, ,904, % 3,984, % 3,961, % 4,011, % 4,103, % Net Ordinary Income 416, , , , , % 573, % 588, % 543, % 443, % Other Income/Expense Other Expense 5500 Capital Outlay 5501 Building Improvements 3, , , , , % 5, % 5, % 5, % 5, % 5502 Small Equipment 11, , , , , % 10, % 15, % 10, % 10, % 5505 Large Equipment 27, , , , , % 50, % 50, % 120, % 20, % 5510 Large Furniture , , , % 1, % 1, % 1, % 1, % 5515 Software 5525 Aerial Photography-Pictometry 65, , , , , % 180, % 190, % 80, % 80, % Total 5500 Capital Outlay 107, , , , , % 246, % 261, % 216, % 116, % 5600 Debt Service Expense 5601 Debt Srvc Interest-Bldg-Cap 1 82, , , , , % 46, % 43, % 39, % 35, % 5605 Debt Srvc Principal-Bldg-Cap 1 58, , , , , % 80, % 84, % 88, % 92, % Total 5600 Debt Service Expense 140, , , , , % 127, % 127, % 127, % 127, % 6000 Contingency Fund 6005 Equiptment Fund 6010 General Contingency Fund 518, , , , , % 200, % 200, % 200, % 200, % Total 6000 Contingency Fund 518, , , , , % 200, % 200, % 200, % 200, % Total Other Expense 766, , , , , % 573, % 588, % 543, % 443, % Net Other Income -766, , , , , % -573, % -588, % -543, % -443, % Net Income -350, , , Annual Budget increase 3.00% 9.3% 0.1% Major Planned Expenses Appraisal HS Audit $ 112, HS Audit Desktop PC Servers Insurance Telephone system $ 50, Desktop PC MD1200 Computer Services Photo project $ 110, Photo project Photo project Court Costs Accountant $92, True Automation-Harris $ 364, Fire wall Page 3 of 3

21 MCLENNAN COUNTY APPRAISAL DISTRICT Payroll Employee Employee RPA Current Hourly Mileage Salary Hourly w/o Mileage Totals Per Est. Salary Est. Salary + car GTL Pension Longevity Longevity Longevity Longevity Longevity Longevity Type Position Name Salary/mileage Allowance Group HIRE DATE 5001 Chief Appraiser Andrew Hahn X 129, , , , , , /1/ Asst. Chief Appraiser Joe Bobbitt X 91, , , , , /6/ Admin Assistant Erin O'Brate 35, , , , /1/ Admin Assistant Lisa Gonzalez 34, , , , /30/ Accountant Accountant , , /1/ , , , , Appraiser - Staff Jeff Alexander X 44, , , , , /11/ Appraiser - Staff Pat Atkins X 62, , , , , /3/ Appraiser - Staff Justin Dean X 47, , , , , /1/ Appraiser - Staff Julie Mills 39, , , , , /6/ Appraiser - Staff Clyde Buro X 64, , , , , /27/ Appraiser - Staff David Davidson X 44, , , , , /22/ Appraiser - Staff Matt Davis X 59, , , , , /25/ Appraiser - Senior Jim Halbert X 61, , , , , /6/ Appraiser Leslie Leaman 40, , , , , /1/ Appraiser - Staff Scott Bennett X 44, , , , , /16/ Appraiser - Staff Nikki Coe X 41, , , , , /2/ Appraiser - Staff Brian Lewis X 43, , , , , /5/ Appraiser Adam Mahar 42, , , , , /5/ Appraiser - Staff Kelly Pustejovsky X 40, , , , , /16/ Appraiser - Senior Gary Schibler X 67, , , , , /13/ Appraiser - Staff Angela Toussaint X 48, , , , , /12/ Appraiser Emily Vargas 39, , , , , /5/ Appraiser - Staff Kevin White X 46, , , , , /21/ Appraiser - Senior Don Whitney X 90, , , , , , /26/ Appraiser - Staff Open Commercial X 72, , , , , /1/ , , ,081, , GIS Mapping Tech - Sr. Gerald Gandesberry 71, , , , , /18/ GIS Mapping Tech Kevin Fikes 45, , , , , /20/ GIS Mapping Tech Betsy Pace 42, , , , /7/ , , , Data Analyst Stacy Acosta 33, , , , /1/ Data Clerk Debbie Dickey 30, , , , /18/ Data Clerk Karin Duke 29, , , , /1/ Cust Serv Supervisor Sabrina Gaylor 42, , , , /24/ Data Analyst Jo Rogerson 28, , , , /1/ Data Clerk open 27, , , , /1/ Data Clerk Kim Mckee 25, , , , /1/ Data Clerk Victoria Trevino 28, , , , /11/ Data Analyst Katrina Gilley 33, , , , /5/ Data Analyst Betty Sanchez 38, , , , /31/ Data Clerk Joanne Gallegos 26, , , , /15/ Data Clerk Ann Ramos 33, , , , /1/ Data Analyst D'Juana Echols 26, , , , /9/ Data Clerk Deborah Miller 33, , , , /1/ , , , TOTALS 1,925, , ,788, Salary 1,929, Salary + Car 2,066, ,066,688.72

22 B D E F G H I J K L M N O P Q PROJECTED HEALTH AUTO CHIEF'S COL *12% = PENSION PAYROLL HOURLY Salary PART OF 2.5% COLA 1.5% Merit TOTAL SALARIES TOTALS HOURLY SALARY Projected Taxable Salary +Auto + GTL FICA 12% INCREASE Life Total 13.00% TYPE NAME 2017 SALARY FOR 2018 FOR BUDGET BY CATEGORY AUTO Group Term Life HRA Projected 5% LONGEVITY 2018 Increase D*2080 E+G H8/2080 O * X12%= (K+P)* CHIEF APPR , , , $134, $1, $136, , , , ASST CHIEF APPR , , , $94, $ $95, , , , ADMIN ASST , , , $36, $41.04 $36, , , , ADMIN ASST , , , $35, $37.30 $35, , , , ACCOUNTANT , $70, $ $70, , , , , $371, $2, $373, COMMERCIAL SENIOR APPRAISE , , , , $93, $2, $95, , , , COMMERCIAL STAFF APPRAISER , , , , $67, $ $67, , , , , COMMERCIAL STAFF APPRAISER , , , , $49, $59.14 $49, , , , COMMERCIAL STAFF APPRAISER , , , , $65, $ $65, , , , COMMERCIAL STAFF APPRAISER , , , , $75, $0.00 $75, , , , , $351, $3, $354, RES SUPERVISOR , , , , $63, $92.83 $63, , , , RES STAFF APPRAISER , , , , $61, $ $62, , , , RES JR APPRAISER , , , , $44, $3.05 $44, , , , RES STAFF APPRAISER , , , , $50, $ $50, , , , RES STAFF APPRAISER , , , , $48, $50.98 $48, , , , RES STAFF APPRAISER , , , , $45, $74.35 $45, , , , RES STAFF APPRAISER , , , , $45, $44.61 $45, , , , RES JR APPRAISER , , , , $41, $39.17 $41, , , , RES JR APPRAISER , , , , $41, $35.62 $41, , , , RES JR APPRAISER , , , , $41, $31.33 $41, , , , , $483, $1, $484, BPP SENIOR APPRAISER , , , , $70, $ $70, , , , BPP APPRAISER , , , , $46, $ $46, , , , BPP APPRAISER , , , , $44, $47.95 $45, , , , BPP STAFF APPRAISER , , , , $43, $35.37 $43, , , , BPP STAFF APPRAISER , , , , $42, $37.54 $42, , , , , $246, $ $247,622.53

23 B D E F G H I J K L M N O P Q PROJECTED HEALTH AUTO CHIEF'S COL *12% = PENSION PAYROLL HOURLY Salary PART OF 2.5% COLA 1.5% Merit TOTAL SALARIES TOTALS HOURLY SALARY Projected Taxable Salary +Auto + GTL FICA 12% INCREASE Life Total 13.00% TYPE NAME 2017 SALARY FOR 2018 FOR BUDGET BY CATEGORY AUTO Group Term Life HRA Projected 5% LONGEVITY 2018 Increase D*2080 E+G H8/2080 O * X12%= (K+P)* GIS SUPERVISOR , , , $73, $ $74, , , , , GIS MAPPER , , , $47, $32.08 $47, , , , GIS MAPPER , , , $44, $46.08 $44, , , , , $165, $ $165, CUST SERV SUPERVISOR , , , $43, $67.25 $43, , , , CS DATA CLERK , , , $30, $ $30, , , , CS DATA CLERK , , , $26, $0.00 $26, , , , CS DATA CLERK , , , $27, $11.26 $27, , , , CS DATA CLERK , , , $27, $3.75 $27, , , , , $153, $ $154, DATA ANALYST , , , $39, $ $39, , , , DATA ANALYST , , , $31, $22.32 $31, , , , DATA ANALYST , , , $34, $5.96 $34, , , , DATA ANALYST , , , $28, $8.64 $28, , , , DATA ANALYST , , , $34, $33.55 $34, , , , DATA ANALYST , , , $29, $5.93 $29, , , , DATA ANALYST BPP , , , $29, $42.52 $29, , , , DATA ANALYST , , , $34, $33.55 $34, , , , DATA ANALYST , , , $34, $13.42 $34, , , , , $294, $ $295, ,788, , ,929, ,929, , , , $8, $12, $270, , , , , AUTO = 137, $2,066, FICA HEALTH HRA LIFE LONGEVITY PENSION

24 B R S T U V W X Y Z AA WORKERS UNEMPLOYMENT COMP DISABILITY TOTAL ANNUAL PAYROLL TYPE NAME 5001 CHIEF APPR 5001 ASST CHIEF APPR 5001 ADMIN ASST 5001 ADMIN ASST 5001 ACCOUNTANT 5002 COMMERCIAL SENIOR APPRAISE 5002 COMMERCIAL STAFF APPRAISER 5002 COMMERCIAL STAFF APPRAISER 5002 COMMERCIAL STAFF APPRAISER 5002 COMMERCIAL STAFF APPRAISER 5002 RES SUPERVISOR 5002 RES STAFF APPRAISER 5002 RES JR APPRAISER 5002 RES STAFF APPRAISER 5002 RES STAFF APPRAISER 5002 RES STAFF APPRAISER 5002 RES STAFF APPRAISER 5002 RES JR APPRAISER 5002 RES JR APPRAISER 5002 RES JR APPRAISER 5002 BPP SENIOR APPRAISER 5002 BPP APPRAISER 5002 BPP APPRAISER 5002 BPP STAFF APPRAISER 5002 BPP STAFF APPRAISER UAAL COMPENSATION WORKSHEET SALARY & BY CATEGORY TOTAL BENEFITS $30,000 / 41 Projected 5% BENEFITS SALARIES AND 2018 SALARIES ONLY.019 X 1ST $ BENEFITS K+L+M+N+O+P+Q+R+S+T+U AR L+M+N+O+P+Q+R+S+T+U H , $173, $45, , $123, $35, , $51, $15, , $50, $14, , $92, $22, , $491, $133, , $124, $29, , $91, $23, , $67, $18, , $87, $22, , $98, $23, , $471, $116, $318, $85, $21, , $83, $21, , $61, $17, , $69, $18, , $67, $18, , $63, $17, , $63, $17, , $57, $16, , $58, $16, , $57, $16, , $666, $182, $418, $94, $23, , $63, $17, , $62, $17, , $60, $17, , $59, $16, , $340, $92, $222,

25 B PAYROLL TYPE NAME 5003 GIS SUPERVISOR 5003 GIS MAPPER 5003 GIS MAPPER 5004 CUST SERV SUPERVISOR 5004 CS DATA CLERK 5004 CS DATA CLERK 5004 CS DATA CLERK 5004 CS DATA CLERK 5004 DATA ANALYST 5004 DATA ANALYST 5004 DATA ANALYST 5004 DATA ANALYST 5004 DATA ANALYST 5004 DATA ANALYST 5004 DATA ANALYST BPP 5004 DATA ANALYST 5004 DATA ANALYST R S T U V W X Y Z AA WORKERS UNEMPLOYMENT COMP DISABILITY TOTAL ANNUAL UAAL COMPENSATION WORKSHEET SALARY & BY CATEGORY TOTAL BENEFITS $30,000 / 41 Projected 5% BENEFITS SALARIES AND 2018 SALARIES ONLY.019 X 1ST $ BENEFITS K+L+M+N+O+P+Q+R+S+T+U AR L+M+N+O+P+Q+R+S+T+U H $98, $24, , $65, $17, , $61, $17, , $225, $59, $162, $61, $17, , $44, $14, , $38, $12, , $40, $12, , $40, $13, , $224, $70, $153, $55, $16, , $45, $14, , $48, $14, , $41, $13, , $48, $14, , $42, $13, , $42, $13, , $48, $14, , $48, $14, , $424, $129, $294, $30, $9, , $5, $2,843, ,843, $783, $783, $1,929, $1,929, , PENSION UAAUNEMPLOYMENTWORK COMP DISABILITY

26 2/21/ Property Value Study Taxes Property Tax Assistance Glenn Hegar Texas Comptroller of Public Accounts 2016 Property Value Study CAD Summary Worksheet 161 McLennan Category Number of Rati os ** 2016 CAD Rept Appraised Valu e Median Level o f Appr Coefficient of D ispersion % Ratios w/in (+/-) 10% of Me dian % Ratios w/in (+/-) 25% of Me dian Price-Related D ifferential A. Single-Family Residences B. Multi-Family Residences 1,773 7,975,984, ,043,120,213 * * * * * C1. Vacant Lots 0 326,574,884 * * * * * C2. Colonia lots 0 0 * * * * * D2. Farm/Ranch Imp E. Rural non-qu alified F1. Commercial Real F2. Industrial R eal 0 55,331,747 * * * * * ,364, ,805,672, ,369,309,187 * * * * * tax/pvs/2016p/ a.php 1/2

27 2/21/ Property Value Study G. Oil, Gas, Min erals 0 90,566 * * * * * J. Utilities ,332, L1. Commercial Personal L2. Industrial P ersonal M. Other Perso nal O. Residential I nventory S. Special Inven tory 179 1,682,592, ,751,310 * * * * * 0 40,824,210 * * * * * 0 38,412,460 * * * * * 0 63,902,020 * * * * * Overall 2,526 17,683,263, * Not Calculated Need a minimum of 5 ratios from either (A) categories representing at least 25% of total CAD category value or (B) 5 ISDs or half the ISDs in the CAD, whichever is less ** Statistical measures may not be reliable when the sample is small tax/pvs/2016p/ a.php 2/2

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43 Property Value Study February 21 st, 2017 TAAD Conference

44 PRIMARY REASON FOR PVS

45 Ensure equitable distribution of state funding for public education.

46 Indirect Equalization Texas PTAD No authority over CAD s PVS affects School Districts

47 Direct Equalization Kansas Property Valuation Div. Authority over Appraisal Districts Statewide CAMA system Mandatory sales disclosure

48 Secondary Reason for PVS

49 To measure CAD performance (Report Card)

50 2016 PVS Results a) Invalid School districts b) Appraisal Districts 69 c) 1 st Year Grace Period 56 ISD s d) 2 nd Year Grace Period 11 ISD s e) State Value 56 ISD s f) State Lower than Local - 8 ISD s

51 2015 PVS Results a) Invalid School Districts 111 b) Appraisal Districts 52 c) 1 st Year Grace Period 56 ISD s d) 2 nd Year Grace Period 14 ISD s e) State Value 26 ISD s f) State Lower than Local 15 ISD s

52 2016 PVS Sample Size 120,000 Total Samples

53 2016 Breakdown of Samples 1) 81,500 Sales 2) 38,500 Appraisals

54 Breakdown by Category i. CAT A 85,000 Samples ii. CAT B 2,150 Samples iii. CAT C 3,750 Samples iv. CAT D2 250 Samples v. CAT E 7,650 Samples vi. CAT F 9,000 Samples vii. CAT G 6,250 Samples viii. CAT J 1,300 Samples ix. CAT L 4,700 Samples

55 PTAD Appraisal Staff I. Residential Appraisers = 26 II. Commercial Appraisers = 8 III.Personal Property Appraisers = 4 IV.Utility Appraisers = 2 V. Ag Appraisers = 2 VI.Mineral Appraiser = 1

56 2014 Residential Inventory Levels i. Austin = 1.8 months ii. Houston = 2.5 months iii. Dallas = 3.0 months iv. Midland = 3.1 months v. San Antonio = 4 months vi. Amarillo = 4 months vii. Waco = 5.3 months viii.el Paso = 7.7 months ix. Texarkana = 12 months x. Brownsville/Harlingen = 13.8 months

57 2017 Residential Inventory Levels i. Dallas = 1.8 months ii. Austin = 2.1 months iii. Waco = 2.6 months iv. San Antonio = 3 months v. Amarillo = 3.2 months vi. Midland = 3.4 months vii. Houston = 3.5 months viii. El Paso = 5.5 months ix. Brownsville / Harlingen = 9.9 months x. Texarkana = 14 months

58 Understanding Methods and Assistance Program (MAP) Reviews 1

59 Tax Code Section At least once every two years, the Comptroller shall review the governance of each appraisal district, taxpayer assistance provided, and the operating and appraisal standards, procedures, and methodology used by each appraisal district To determine compliance with generally accepted standards, procedures, and methodology. 2

60 Comptroller Rule Generally Accepted Standards, Procedures, and Methodology Definition Standards and procedures adopted or recommended by the International Association of Assessing Officers concerning appraisal contracting personnel, and administration of ad valorem taxation The Appraisal Foundation s Uniform Standards of Professional Appraisal Practice. 3

61 Tiers 4 Pass/Fail Questions All Tiers Yes/No Questions with Recommendations Tier 1 Tier 2 Tier 3 91 questions 80 questions 67 questions 4

62 Comptroller Rule Pass/Fail Scoring The score includes pass/fail determinations for compliance with four questions. Appraisal districts must have pass ratings on all four questions for school districts to be in compliance with Government Code Section (2)(D), to be eligible for grace period determinations and local value assignments to the Texas Education Agency. 5

63 Pass/Fail Questions Does the appraisal district have up to date appraisal maps? Is the implementation of the appraisal district s most recent reappraisal plan current? Are the appraisal district s appraisal records up to date and is the appraisal district following established procedures and practices in the valuation of property? Are values reproducible using the appraisal district s written procedures and appraisal records? 6

64 Tax Code Section Yes/No Questions Governance Operating Procedures No answers result in recommendations Taxpayer Assistance Appraisal Standards, Procedures and Methodology 7

65 Appraisal District Duties Governance Chief appraiser eligibility Evaluations Required training Board duties and meetings Budget Ag advisory board Taxpayer liaison duties 8

66 Appraisal District Duties Taxpayer Assistance Public relations Website Annual reports Public feedback Complaints Open records requests Required notices Electronic protests 9

67 Appraisal District Duties Operating Procedures Operations survey Arbitration process Exemption processes and files Deferrals Certification and corrections of appraisal roll Records retention Disaster recovery planning Appraisal review board processes Reappraisal planning Submission of data to Comptroller 10

68 Appraisal District Duties Appraisal Standards, Procedures and Methodology Property inspections Omitted property Mass appraisal reports Contracts Ratio studies Cost schedules Property discovery Appraisal manuals Quality control Income approach Collecting, verifying and adjusting sales Agricultural appraisal 11

69 MAP METHODS AND ASSISTANCE PROGRAM 2015 REPORT McLennan County Appraisal District Glenn Hegar Texas Comptroller of Public Accounts

70 McLennan County Appraisal District Mandatory Requirements PASS/FAIL 1. Does the appraisal district have up-to-date appraisal maps? PASS 2. Is the implementation of the appraisal district s most recent reappraisal plan current? PASS 3. Does the appraisal district comply with its written procedures for appraisal? PASS 4. Are values reproducible using the appraisal district s written procedures and appraisal records? PASS Appraisal District Activities Governance Taxpayer Assistance Operating Procedures Appraisal Standards, Procedures and Methodology RATING MEETS ALL MEETS ALL MEETS ALL MEETS ALL Appraisal District Ratings: Meets All The total point score is 100. Meets The total point score ranges from 90 to less than 100. Needs Some Improvement The total point score ranges from 85 to less than 90. Needs Significant Improvement The total point score ranges from 75 to less than 85. Unsatisfactory The total point score is less than 75. Review Areas Total Questions in Review Area (excluding Not Applicable questions and Not Evaluated questions) Total Yes Points Total Score (Total Yes Questions/Total Questions) x 100 Governance Taxpayer Assistance Operating Procedures Appraisal Standards, Procedures and Methodology Texas Comptroller of Public Accounts 1

71 McLennan CAD Review Questions and Answers This review is conducted in accordance with Tax Code Section 5.102(a) and related Comptroller Rule The Comptroller is required to review appraisal district: governance; taxpayer assistance; operating procedures; and appraisal standards, procedures and methodology. Each CAD is reviewed every other year. This report details the results of the review for the appraisal district named above. Because of the diversity of property within Texas, some parts of the review may not be applicable to a county. If questions or a section of questions do not apply, such as when a county has no timber, the question or questions will be marked as Not Applicable and the final score will not be negatively impacted by these questions. Some questions will be marked as "Not Evaluated" when an appraisal district meets the criteria set forth in the Methods and Assistance Program review guidelines. GOVERNANCE 1. Did the board of directors meet at least quarterly in the prior year, as required by Tax Code Section 6.04(b)? 2. If the board of directors held an executive or closed session in the prior year, was it shown on the meeting agenda for one of the purposes authorized by law? 3. Did the board of directors evaluate the performance of the chief appraiser and discuss the evaluation with him or her at any time from Jan. 1, 2012 to the time of the issuance of the preliminary MAP report in 2014 or 2015? 4. Did the board of directors take official action to select an auditor to prepare the annual financial audit as required by Tax Code Section in the prior year? 5. Did the board of directors solicit bids for a bank depository in any year since 2009 as required by Tax Code Section 6.09(c)? 6. Did the board of directors designate a bank depository by official action in any year since 2009 as required by Tax Code Section 6.09(b)? NOT EVALUATED NOT EVALUATED NOT EVALUATED Texas Comptroller of Public Accounts 3

72 Methods and Assistance Program Report of the McLennan CAD Tier 1 Questions and Answers TAXPAYER ASSISTANCE 7. Has the appraisal district implemented its public relations plan described in the IAAO Standard on Public Relations? 8. Does the appraisal district have written documents explaining how property is appraised for use by property owners? 9. Does the appraisal district s website offer the ability to file protests to the appraisal review board online as required by Tax Code Section ? 10. Did the chief appraiser publicize in a manner reasonably designed to notify all property owners of the requirements of law relating to the filing of rendition statements and reports and the availability of forms, as required by Tax Code Section in the current or prior year? 11. Did the chief appraiser publicize in a manner reasonably designed to notify all residents in the appraisal district of the legal requirements for filing exemption applications and the availability of application forms, as required by Tax Code Section 11.44(b), in the current or prior year? 12. Did the chief appraiser publicize in a manner reasonably designed to notify all residents of the appraisal district of the requirements for special appraisal of land used for agricultural, timber, and open-space purposes and the availability of application forms, as required by Tax Code Sections 23.43(f), 23.54(g), and 23.75(g), in the current or prior year? 13. Did the chief appraiser deliver notices to the property owners who were required to receive them stating that exemption applications were required and provide appropriate application forms in the current year, as required by Tax Code Section 11.43(c)? 14. Did the chief appraiser deliver notices to property owners whose exemptions were cancelled in the prior or current year, as required by Tax Code Section 11.43(h)? 15. Did the chief appraiser deliver appropriate exemption application forms in the current year to persons who in the preceding year were allowed exemptions requiring annual applications, as required by Tax Code Section 11.44(a)? 16. Did the chief appraiser deliver notices of modifications or denials of exemption applications that included brief explanations of the procedures for protesting the actions in the current or prior year, as required by Tax Code Section 11.45(d)? 17. If the chief appraiser received a report of decreased value from a property owner, was a notice of value determination delivered to the property owner, as required by Tax Code Section 22.03(c)? 18. Did the chief appraiser deliver notices and application forms to property owners whose open-space land use changed or eligibility ended for special appraisal in any year since Jan. 1, 2010, as required by Tax Code Section 23.54(e)? NOT APPLICABLE 4 Texas Comptroller of Public Accounts

73 Methods and Assistance Program Report of the McLennan CAD Tier 1 Questions and Answers 19. If the chief appraiser imposed a penalty for failure of a property owner to notify the appraisal district that land no longer qualifies for open-space special appraisal in any year since Jan. 1, 2010, was a notice of imposition of the penalty and an explanation of the procedures for protesting the imposition of the penalty delivered to the owner, as required by Tax Code Section 23.54(i)? 20. Did the chief appraiser deliver notices of denials of applications for open-space land designation that include brief explanations of the procedures for protesting the denials and full explanations of the reasons for the denials in the current or prior year, as required by Tax Code Section 23.57(d)? 21. In the current or prior year, did the chief appraiser deliver notices of determinations that a change in use of open-space land has occurred and include in the notices an explanation of the owner s right to protest the determinations, as required by Tax Code Section 23.55(e)? 22. In the current or prior year, did the chief appraiser include with the notice of appraised value an application form for a residence homestead exemption if the property did not qualify for a residence homestead exemption in the current tax year, as required by Tax Code Section 25.19(b-2)? 23. Has the appraisal district s board of directors implemented its procedures explaining how taxpayer complaints are handled, as required by Tax Code Sections 6.04(f) and (g)? NOT APPLICABLE OPERATING PROCEDURES 24. Are the appraisal district s written procedures for hiring new staff specifying the job responsibilities, advertising the job, screening applicants, interviewing candidates, and selecting qualified candidates implemented and operational? 25. Is the appraisal district s records retention plan as required by Local Government Code Section operational? 26. Is the appraisal district s public funds investment plan as required by Government Code Sections operational? 27. Have the disclosure requirements for appraisal district staff under Local Government Code Chapter 176 been implemented? 28. Are the appraisal district s personnel policies/manuals/procedures operational in the current year? 29. Did the appraisal district implement purchasing policies that comply with Local Government Code Chapter 252 in the prior year? 30. Did the appraisal district maintain a partial exemption list as required by Tax Code Section and Comptroller Rule in the current or prior year? 31. Do the exemption forms used by the appraisal district comply with Comptroller Rule 9.415? 32. Has the appraisal district implemented written procedures for applying capped homestead property values as required by Tax Code Section 23.23? Texas Comptroller of Public Accounts 5

74 Methods and Assistance Program Report of the McLennan CAD Tier 1 Questions and Answers 33. Does the appraisal district have written procedures concerning disaster recovery and mitigation? APPRAISAL STANDARDS, PROCEDURES AND METHODOLOGY 34. Has the appraisal district begun implementation of the 2013 Texas Property Tax Assistance Property Classification Guide? 35. Did the appraisal district comply with its written procedures for identifying and inspecting new property in the current year? 36. Did the appraisal district comply with its written procedures for identifying upgrades and new improvements to existing properties in the current year? 37. Did the appraisal district supplement its appraisal records with omitted property in the prior or current year, according to the requirements of Tax Code Section 25.21? 38. Do the appraisal district s appraisal practices conform to its appraisal manual and procedures for residential property? 39. Do the appraisal district s appraisal practices conform to its appraisal manual and procedures for land valuation? 40. Do the appraisal district s appraisal practices conform to its appraisal manual and procedures for commercial property? 41. Do the appraisal district s appraisal practices conform to its appraisal manual and procedures for business personal property? 42. Do the appraisal district s appraisal manual and procedures for business personal property include up-to-date depreciation tables? 43. Do the appraisal district s appraisal practices conform to its appraisal manual and procedures for open-space or agricultural land? 44. Do the appraisal district s procedures comply with the Manual for the Appraisal of Timberland with regard to classifying qualified timberland by forest and soil type? NOT APPLICABLE 45. Does the appraisal district properly value qualified timberland based on forest and soil type? NOT APPLICABLE 46. Do the appraisal district s appraisal practices conform to its appraisal manual and procedures for the qualification and appraisal of land used for wildlife management? 47. Did the appraisal district use its data collection manual in the current year? 48. Did the appraisal district use its standards for accuracy for data collection in the current year? 49. Does the appraisal district perform multiple quality-control steps to ensure the accuracy and uniformity of property valuations? 50. Did the appraisal district use internally prepared ratio studies in the preparation or implementation of its reappraisal plan? 51. Are net-to-land calculations for the open-space land designated as native pasture reproducible from the appraisal records? 6 Texas Comptroller of Public Accounts

75 Methods and Assistance Program Report of the McLennan CAD Tier 1 Questions and Answers 52. Are net-to-land calculations for the open-space land designated as dry and irrigated cropland reproducible from the appraisal records? 53. Since Jan. 1, 2012, did the appraisal district recognize that beekeeping is an agricultural use for 5-20 acres devoted to such a purpose for purposes of open-space land designations through the creation of guidelines and/or the approval of applications, pursuant to Tax Code Section 23.51(2)? 54. Are the appraisal district s cost schedules and appraisal models used in such a way that adjustments are made for neighborhood factors and property specific factors? 55. Are ratio studies used in the appraisal process for residential and vacant land properties? 56. Has the appraisal district adjusted its residential property cost schedules based on sales data, ratio studies, local conditions, and market factors within the past two years? 57. Has the appraisal district adjusted its commercial property cost schedules based on sales data, ratio studies, local conditions, and market factors within the past two years? 58. Does the appraisal district collect land sales and maintain a verified sales file? 59. Does the appraisal district collect residential sales and maintain a verified sales file? 60. Does the appraisal district collect commercial property sales and maintain a verified sales file? 61. Does the appraisal district collect multi-family property sales and maintain a verified sales file? 62. Does the appraisal district adjust land sales? 63. Does the appraisal district adjust residential sales? 64. Does the appraisal district adjust commercial sales? YSE 65. Does the appraisal district adjust multi-family sales? 66. Does the appraisal district follow its procedures when valuing properties using the market sales comparison approach? 67. Does the appraisal district gather income and expense data and calculate values using the income approach for multi-family properties? 68. Does the appraisal district gather income and expense data and calculate values using the income approach for retail properties? 69. Does the appraisal district gather income and expense data and calculate values using the income approach for office properties? 70. Did the appraisal district provide all the data in the format requested relating to Tax Code Sections 23.01(e) and 41.43(a-3)? Texas Comptroller of Public Accounts 7

76 2017 LEGISLATIVE OUTLOOK Brent South, Hunt CAD

77 TAAD LEGISLATIVE PRIORITIES Equal & Uniform Dark Store Appraisal Heavy Equipment/Compressors MAP Reform Appeals process Penalty for non-compliance Credit for CEAA designation Removal of Estimate from 25.19

78 DARK STORE BILL SECTION 2. Section 23.01, Tax Code, is amended by adding subsections (h), (i), and (j) to read as follows: (h) Except as provided by Subsection (d), a property must have the same highest and best use as the subject property to be considered comparable. (i) Any use restriction on the subject property that legally prohibits the continuation of the current use of, or legally prohibits a competitive use of, the subject property shall not be considered in the determination of the subject property s highest and best use. (j) The determination of market value shall include consideration of whether the highest and best use of the subject property is the continuation of the current use.

79 EQUAL & UNIFORM SECTION 1. Section 42.26, Tax Code, is amended by adding Subsection (e) to read as follows: (e) In Appeals pursuant to Section 42.26; in no circumstance can the finally determined Equal and Uniform value result in a value less than 90 percent of the finally determined market value.

80 SENATE BILL 2 Creation of Property Tax Administrative Advisory Board to make recommendations regarding: An appraisal district shall appraise property in accordance with any appraisal manuals prepared and issued by the comptroller MAP review will determine compliance with standards, procedures, and methodology prescribed by appraisal manuals prepared and issued by the comptroller 23.01(b) amended to add; including appraisal methods and techniques prescribed by appraisal manuals prepared and issued by the comptroller.

81 SENATE BILL 2 Must be an elected county officer or an elected official of a political subdivision to serve on the CAD board of directors Creation of special appraisal review board panels to hear protests regarding Commercial real and personal property Real and personal property of utilities Industrial & manufacturing real and personal property Multifamily residential real property

82 SENATE BILL 2 Eligibility to serve on special appraisal review board panel Attorney MBA CPA Accredited by American Society of Appraisers as senior appraiser MAI designation from Appraisal Institute CEA designation from IAAO 20 years experience in property tax appraisal or consulting

83 SENATE BILL 2 Adjust tax year calendar BPP rendition deadline March 15 Notices mailed by April 15 Submit appraisal records to ARB May 1 Preliminary estimate of value due May 15 ARB to approve records by July 5 Chief appraiser to certify roll by July 10

84 SENATE BILL 2 Increase exemption for BPP from $500 to $2500 in value Do away with taxing units ability to challenge an entire category of property Raise limit for binding arbitration to $5 million Reduce rollback rate from 8% to 4% Automatic rollback elections for all taxing units

85 CAP BILLS HB44-5% cap on all real prop. HB167-5% cap on all real prop HB301 value can not increase from prior year if ARB or informal agreement HB376 HS cap reduced to 5% HB586 HS cap reduced to 5% SB172 HS cap reduced to 5% commissioners may call for an election to increase to 10% SB376 HS cap lowered to 3% if value less than $1 million, 5% if value over $1 million

86 ELECTED POSITIONS HB85 elected chief appraiser, two year term. Resident of county for 4 years HB495 Elected BOD. 2 year terms. HB566 Elected ARB members SB447 Elected chief appraiser. The elected chief appraiser will be responsible for appointing members of the ARB

87 EXEMPTION BILLS HB102 taxing unit may exempt all BPP and real prop of a new business in a county less than 250,000 HB217 Adds DV to deferral list HB382 Exempt. Real prop. Leased to open-enrollment charter school HB425 exempts inventory at retail from ISD. Does not include special inventory HB570/SB15 100% HS exemption for S.S. of first responder HB734 Phases out ISD tax on inventory over 10 year period, 10% per year

88 EXEMPTION BILLS HB1101 C/A may not require someone receiving DVHS to reapply to show they still qualify HB1330/SB730 Changes BPP threshold from $500 to $2500 HB302 Changes mineral threshold from $500 to $2000 HB % HS exemption for recipient of Purple Heart and surviving spouse SB448 Must send two separate notifications before removing a deferral, similar to over 65 removal

89 APPRAISAL BILLS HB119/SB676 Listing of separate interest in minerals HB182 Creates a study by Comptroller on effects of sales disclosure HB379 Mandatory sales price disclosure HB513/SB717 Automatic reappraisal in disaster area HB1050 Abolishes property tax. Does not provide alternative. SB403 CAD may not increase value for 2 years if value was reduced by ARB or post ARB appeal by more than 15%. Prop. Can not be used as comparable in E&U

90 ARB BILLS HB139 ARB send hearing notice via cert. mail on request HB455 Participation in ARB hearing via telephone HB804 Lessor must provide lessee appraisal notice within 10 days. Lessee then has 30 days to protest HB1582 Raises threshold for ARB appointment by judge to 350,000 HB1660 Adds an appeal under to allow HS with a sales price of 10% less than appraised value. ARB can change records for current and two proceeding years

91 ARB BILLS SB669 Increases ARB training, ARB survey, strict ARB term limits, ARB to select their own chair and sec., ARB orders given to owner/agent at conclusion of hearing, ARB hearing notice must contain subject matter of hearing, ARB may not increase value, ARB must deliver determination order within 15 days of hearing, hearings of multiple properties must be held consecutively and in a certain order. SB804 Can not serve on ARB if related within first degree to another member of ARB SB870 May not conduct hearings on Sunday

92 AG BILLS HB231 C/A to distinguish between degree of intensity for uncommon methods of ag-use including organic, sustainable, pastured poultry, rotational grazing HB643 Removes requirement for open space or timber to convert to wildlife management HB777/SB175 Continued ag qualification for service member outside the state HB950/SB330 Changes qualification for veterans or an individual under age of 35 with less than 10 years farm & ranch experience

93 AG BILLS HB1211 Change rollback from 5 to 3 years and int. rate from 7% to 5% HB1299/SB594 Changes who can develop and approve Ag Manual HB1471 Adds predation management to a qualified activity for aguse HB1662 if owner waives right for ag-use appraisal, is not considered change of use for rollback HB1772 abolishes the ag manual approval committee SB629 removes interest from rollback payment SB700 adds producing fruits and vegetables to list of qualifying uses

94 LITIGATION BILLS HB540 No cap on attorney fees for HS property HB1248 Calls for simplified pretrial discovery procedures. All discovery to be abated until parties have complied with No third party discovery without court permission. HB1783 changes binding arbitration fee structure for HS property. $250 if less than $250,000. $350 if between $250,000 and $500,000. $500 if over $500,000 SB521 CAD employee may not testify in court unless a fee appraiser SB731 increases arbitration threshold from $3 mill to $5 mill

95 McLENNAN COUNTY APPRAISAL DISTRICT March 01, 2017 To: Mclennan County Appraisal District Board of Directors Subject: Taxpayer Liaison Officer Complaints Report I have no complaints to report at this time. Appraisers are finalizing changes for 2017 and appraisal support is working to get all changes entered in preparation for mailing 2017 appraisal notices. We are working with Appraisal Review Board (ARB) Chair Marvin Steakley preparing 2017 ARB Calendar and drafting 2017 ARB procedures. We will start scheduling informal meetings with appraisers the first week of April and first day of formal hearings is May 22. This will be a very different ARB experience since Bonnie Lancaster retired December 31, 2016 and Ben Masters will retire March 31. Appraisal support team members have been training in preparation for their retirement and are well prepared. Thank you and have a blessed day. P.O. Box 2297 Waco, TX S h St. Waco, TX (254) Phone+ (254) Fax