CITY OF AUSTIN, TEXAS MINUTES OF THE CITY COUNCIL CITY OF AUSTIN, TEXAS Special Meeting December 03, 1976 2:30 Ρ.Μ. Council Chambers 301 West Second Street 12 The meeting was called to order with Mayor Pro Tem Snell presiding. Roll Call: Present: Mayor Pro Tem Snell, Councilmembers Himmelblau, Absent: Hofmann, Linn, Trevino Mayor Friedman, Councilmember Lebermann Mayor Pro Tem Snell stated that this was a called Special Meeting of the City Council for the purpose of hearing tax appeals from the Board of Equalization. Mayor Pro Tem Snell stated that the following tax appeal had been WITHDRAWN: 1975 Appraised Value Property 100% 1976 Appraised Value 100% 1976 Rendered Value 75% 1976 Assessed Value 75% Land $ 499,860 $ 499,860 Did Not $374,900 Imps. 511,163 826,080 Render 619.560 1976 Value by Board of Equalization 75% $374,900 512,170 Total $994,460 $887,070 $1,011,023 $1,325,940 Ownership and Description: ALLANDALE ASSOCIATES By: John Scanlan Parcel No. 2-3004-0601 Resub. of Lots 1 thru 10 and 38 thru 56, Allandale Section 1 Address of Property: Burnet Road CITY OF AUSTIN, TEXAS 2399 December 3, 1976 Mayor Pro Tem Snell stated that the following tax appeals would be rescheduled at a later date: 1975 Appraised Value Property 100% 1976 Appraised Value 100% 1976 Rendered Value 75% 1976 Assessed Value 75% Land Imps. $ 3,209 21,328 $ 4,011 27,962 $ 2,410 16.000 $ 3,010 20.970 1976 Value by Board of Equalization 75% $ 3,010 20,970 Total $24,537 $31,973 $18,410 $23,980 $23,980 DON EPPERSON Parcel No. 2-2122-0313 Lot 14, Cherrylawn Section 2 Address of Property: 3007 Cedarlawn Circle 1975 1976 1976 1976 1976 Appraised Appraised Rendered Assessed Value Value Value Value Value by Board of Equalization Property 100% 100% 75% 75% 75% Land $98,125 $117,750 $73,590 $88,310 $88,310 Imps. 0 0 0 0 0 Total $98,125 $117,750 $73,590 $88,310 $88,310 Ownership and Description: WILLIAM R. BRIGHT Parcel No. 4-2300-0101 39.25 Acres Santiago Del Valle Grant Address of Property: Nuchols Crossing Road 2400 December 3, 1976 CITY OF AUSTIN, TEXAS The Council then publicly heard the following tax appeals: 1975 Appraised 1976 Appraised 1976 Rendered Value Value Property 100% 100% Value 75% 1976 Assessed Value 75% 1976 Value by Board of Equalization 75% Land Imps. $ 4,743 22.518 $ 4,744 30.347 Did Not Ränder $ 3,560 $ 3,560 15,760 15,760 Total $27,261 $35,091 *$19,320 *$19,320 * Assessed value less $7,000 homestead exemption Ownership and Description: MICHAEL HARRISON By: Mrs. Florence Harrison Parcel No. 2-4514-0502 Lot 1, Block A, Quail Creek, Phase III, Section IV Address of Property: 1322 Neans Drive In response to Mrs. Harrison's question regarding the separate assessment of the fireplace, Mr. Klitgaard stated that the reason for the separation was that all houses did not have the same characteristics, such as fireplace, air conditioning, etc. In response to Mrs. Harrison's concern over paying taxes on a drainage creek running through her property, Mr. Klitgaard stated that an allowance for the creek had been made in valuing the land. The valuation had been decreased from $5,271 to $4,744, which was a 10% reduction. In response to Mrs. Harrison's question, City Manager Davidson stated that the City did not have a program whereby the City would clean creek areas adjacent to private property and bill the owner for the charges. It was the owner's responsibility to maintain the creek area. City Manager Davidson stated that under State law and City ordinances, the City of Austin had the obligation of providing adequate drainage. Before subdividing the area under question, the owner had to provide a drainage easement to the City. Mr. Davidson invited the Harrisons to his office so that he might explain the entire procedure to them. Mrs. Harrison stated that there were sewer pipes on the property which were not connected. Heavy rains caused her yard to flood because the pipes were not connected. City Manager Davidson stated that he would look into the problem. Mr. Klitgaard stated that he believed that the market had been examined as thoroughly as possible. The land had been treated no differently from other land on that block. Building values were predicted on the same square foot unit values applied to comparable property throughout the district. He felt that the $35,091 valuation placed on the property was a reasonable estimate of its present market value. CITY OF AUSTIN, TEXAS December 3, 1976 2401 1975 Appraised Value 1976 1976 1976 Property 100% Appraised Value 100% Rendered Value Assessed Value 75% 75% 1976 Value by Board of Equalization 75% Land Imps. $ 8,939 44.968 $10,429 $ 6,700 $ 7,820 $ 7,820 60.194 33.730 45.150 45,150 Total $53,907 $70,623 $40,430 $52,970 $52,970 Ownership and Description: CARL J. RIZZO Parcel No. 1-4901-0414 Lot 7, Block D, Northwest Estates, Section 1 Address of Property: 4104 Villacliff Circle Mr. Rizzo stated that the house and land originally cost him $58,000. Under the latest valuation, Mr. Rizzo's property was assessed for taxes at $52,970, an increase of $13,540. He felt that his house was overvalued since the house behind him had sold for $62,000 and the one next door for $63,000. He asked that the Council reduce the valuation on his house by $5,000. In response to Councilmember Linn's question, Mr. Klitgaard stated that Mr. Rizzo's house was valued similarly to the ones around it, but it was valued higher primarily because it was larger. Mr. Klitgaard stated that in the comparisons made by the Board of Equalization, Mr. Rizzo's property contained 2,625 square feet on the first floor and 444 square feet on the second floor. Three comparable nearby houses consisted of one story and contained 2,129 square feet, 1,839 square feet and 2,057 square feet, respectively. The significant difference between Mr. Rizzo's property and the other properties which had been the subject of a market transaction primarily was size. CITY OF AUSTIN. TEXAS December 3, 1976 2402 1975 Appraised Value Property 100% 1976 Appraised Value 100% 1976 Rendered Value 75% 1976 Assessed Value 75% 1976 Value by Board of Equalization 75% Land Imps. $ 4,073 37.552 $ 4,888 $ 3,050 $ 3,670 $ 3,670 50,786 28.160 38,090 38,090 Total $41,625 $55,674 $31,210 $41,760 $41,760 Ownership and Description: WAYNE L. YOUNG By Mrs. Young Parcel No. 9-2-6305-0610 Lot 3, Block B, Angus Valley No. 9 Address of property: 12103 Shetland Chase Mrs. Wayne Young stated that the property was bought new in March, 1972, for approximately $50,000. It was sold 1-1/2 years later, and due to a default on a second mortgage, was repurchased in October, 1975. The area was annexed by the City last summer, but there were no sewers. Proposed busing of children would carry some of the children over 15 miles away. Property on one side had decreased greatly in building size and lot size. The house next door had been vacant for several months. In response to Mrs. Young's question, Mr. Klitgaard stated that his department tried to make all appraisals based on the best evidence of market value. The $55,674 was the Department's opinion of what the market value of the property would be as of January 1, 1976. In response to Mrs. Young's question regarding a newspaper article on property valuations, Mr. Klitgaard stated that no tax department could get a 100% value on everything. The best that could be done was to estimate market value based on what property had been buying and selling for and let those factors be reflected in the appraisal. Unit cost schedules were adjusted as they applied uniformly to property throughout the community. Lack of public utilities in Mrs. Young's area did effect the value of the property, and a lower front foot valuation had been placed on the property. In response to Mr. Klitgaard's question, Mrs. Young stated that they had sold the property in August, 1973, for between $57,000 and $58,000. When the property was replurchased it did not contain many interior extras which it formerly had. In response to Councilmember Linn's question, Mrs. Young stated that the yard had deteriorated and that the inside of the house had deteriorated. Surrounding houses of comparable value had been assessed for thousands of dollarsless. In response to Councilmember Hofmann's question regarding the lower valuation of comparables, Mr. Klitgaard stated that he did not have comparables on the Young property, but that under the unit cost schedule system, there would have to be a physical reason for the lower valuation of surrounding property. Mr. Klitgaard stated to Mrs. Young that records of his department were public records and that if she wished to make comparisons, the records were available. CITY OF AUSTIN, TEXAS 2403 December 3, 1976 1975 Appraised Value Property 100% 1976 Appraised Value 100% 1976 Rendered Value 75% 1976 Assessed Value 75% 1976 Value by Board of Equalization 75% Land Imps. $ 3,191 33.774 $ 3,191 43.862 Did Not Render $ 2,390 $ 2,390 32.900 29,430 Total $36,965 $47,053 $35,290 $31,820 Ownership and Description: ROBERT F. HUGHES Parcel 9-2-4122-0401 Lot 1, Block F North Acres Section 3 Address of Property: 801 Floradale Mr. Robert F. Hughes stated that the 1976 appraisal on his property had increased $7,570 higher than the 1975 appraisal. He had bought the property for $33,000. After an appearance before the Board of Equalization, the Board reduced the valuation by $3,470. Mr. Hughes felt that there should have been no increase in valuation since he was in an area of economic obsolescence. Mr. Hughes distributed some photographs to the Council to demonstrate the condition of the area. He asked that the tax be reduced to the 1975 figure. Mr. Klitgaard stated that the minutes of the Board of Equalization did not show a selling price of $33,000. The Board did request the Tax Department to recheck the property based on Mr. Hughes' testimony concerning the immediate neighborhood and the fact that the house was substantially larger than others in the area. The Tax Department had recommended to the Board of Equalization that some economic obsolescence be accorded to the improvement value of the Hughes property. It was extremely difficult to find comparable property in the market place burdened with a similar type of neighborhood that had been the subject of a sale so that the influence could be measured. Mr. Klitgaard believed that the Board of Equalization and the Tax Department had done the best they could under the circumstances. Mr. Klitgaard stated that he had information indicating that the peoperty had sold for $40,000 in August, 1973. Mr. Klitgaard asked Mr. Hughes to elaborate on the $33,000 price which he had paid for the property. Mr. Hughes stated he paid $33,000 for the owner's equity in the property. Drapes in the house were purchased for about $2,000. Mr. Hughes felt that the house should be valued at what it would sell for now. Mr. Klitgaard stated that he did not disagree with Mr. Hughes. Since the house had not been exposed to the market recently, it had been appraised the same way as all comparable property. 2404 CITY OF AUSTIN, TEXAS 1975 Appraised Value Property 100% 1976 Appraised Value 100% 1976 Rendered Value 75% 1976 Assessed Value 75% December 3. 1976 1976 Value by Board of Equalization 75% Land $ 6,347 $ 7,501 $ 4,760 $ 5,630 $ 5,630 Imps. 33.629 45.337 20.220 27.030 27,030 $39,976 $52,878 $24,980 *$32,660 *$32,660 Total *Assessed value less $7,000 homestead exemption. Ownership and Description: SHIRMER A. MUELLER Parcel No. 2-4701-0218 Lot 18, Block P Westover Hills Section 2 Address of Property: 4006 Hyridge Drive Mr. Mueller read a statement to the Council which indicated that the subject property was his homestead. He had built the house upon retirement and lived on a fixed income. Since he had built the house, it had increased in tax valuation by almost double its cost. Mr. Mueller felt that his property should be assessed at what it cost until it was sold. If at a future date the house was sold, then at that time the evaluation should be adjusted. Mr. Klitgaard stated that under the law, property could not be valued at cost. He quoted sales prices of several properties in the area which were comparable to the value placed on Mr. Mueller's property. Councilmember Hofmann pointed out that a homestead exemption increase for senior citizens had been included in the current budget. 2405 1975 Appraised Value 1976 Property 100% Appraised Value 100% ☑ CITY OF AUSTIN, TEXAS 1976 Rendered Value 75% 1976 Assessed Value 75% December 3, 1976 1976 Value by Board of Equalization 75% Land Imps. $ 4,689 36,105 $ 5,211 $ 3,520 $ 3,910 $ 3,130 49.118 27,080 36,840 36,840 Total $40,794 $54,329 $30,600 $40,750 $39,970 Ownership and Description AUBREY RONALD CARTLIDGE Parcel No. 3-0506-0105 Lot 2, Block B Colorado Hills Estates Section 2 Address of Property: 1802 Woodland Drive Mr. Cartlidge did not appear to be heard. The City Clerk stated that she had talked to Mr. Cartlidge on the telephone and a letter was being sent requesting to be rescheduled. (Letter received December 6, 1976) -- 1975 Appraised Value Property 100% 1976 Appraised Value 100% 1976 Rendered Value 75% 1976 Assessed Value 75% 1976 Value by Board of Equalization 75% Land $ 3,264 $ 3,570 $ 2,450 $ 2,680 $ 2,680 Imps. 17.740 23.681 13.310 17.760 17.760 Total $21,004 $27,251 $15,760 $20,440 $20,440 Ownership and Description: A. E. HOLLINGSHEAD Parcel No. 9-2-4724-1102 Lot 2 North Oaks, Section 2 Address of Property: 11608 North Oaks Drive Mr. Hollingshead stated that a house shouldbbe worth what it sold for, not what someone thought it was worth. He had bought the subject property last April for $22,500, and he felt that that was what the property was worth, not the $27,251 assessed valuation. He had spent $1,876.93 on repairs since buying the house and he still needed to spend $1,958 more to put it in top conditions. 2406 CITY OF AUSTIN, TEXAS December 3, 1976 The 1975 assessed value of the property was $21,004. The house was not in the City limits. Mr. Klitgaard stated that the property had been appraised using the same criterion which applied to all property in the district. The Tax Department had considered all known area sales and tested them against existing schedules to try to determine the proper schedule to reflect what property was selling for currently. After that determination and having tested it in the market, unit schedules were then applied uniformly to all similar properties throughout the district. Mr. Klitgaard stated that the purchase price of $22,500 for the subject property left some question as to whether or not a market consideration was involved. The property had been purchased from the family estate or an agreement between other members of the family as to how much the property should be exchanged for. Mr. Klitgaard had serious doubts that the transaction met the qualifications for market value. Sales of comparables in the area ranged from $32,000 to $27,000. A fee appraiser had appraised the house in 1975 at $27,500. ACTION BY COUNCIL After a brief discussion, the Council decided to vote on the appeals which had just been heard. Councilmember Linn moved that the Council uphold the recommendation of the Board of Equalization as follows: 1976 Ownership Value by and Board of Equalization Description Property 75% Council Action MICHAEL HARRISON Land $ 3,560 $ 3,560 By Mrs. Florence Imps. 15.760 15,760 Harrison Total *$19,320 $19,320 Parcel No. 2-4514-0502 Lot 1, Block A, Quail Creek Ph. III, Sec. IV Address of Property: 1322 Neans Drive *Assessed value less $7,000 homestead exemption. The motion, seconded by Councilmember Himmelblau, carried by the following vote: Ayes: Mayor Pro Tem Snell, Councilmembers Himmelblau, Hofmann, Linn, Trevino Noes: None Absent: Mayor Friedman, Councilmember Lebermann 2407 CITY OF AUSTIN. TEXAS December 3, 1976 Councilmember Trevino moved that the Council uphold the recommendation of the Board of Equalization as follows: Ownership 1976 Value by and Board of Equalization Description Property 75% CARL J. RIZZO Land $ 7,820- Imps. 45.150 Parcel No. 1-4901-0414 Lot 7, Block D, Total $52,970 Northwest Estates Section 1 Address of Property: 4104 Villacliff Circle Council Action $ 7,820 45,150 $52,970 The motion, seconded by Councilmember Linn, carried by the following vote: Ayes: Councilmembers Himmelblau, Hofmann, Linn, Trevino, Noes: Mayor Pro Tem Snell None Absent: Mayor Friedman, Councilmember Lebermann Councilmember Linn moved that the Council uphold the recommendation of the Board of Equalization as follows: 1976 Ownership Value by and Board of Equalization Council Description Property 75% Action WAYNE L. YOUNG Land $ 3,670 $ 3,670 By: Mrs. Young Imps. 38,090 38,090 Parcel No. 9-2-6305-0610 Total $41,760 $41,760 Lot 3, Block B, Angus Valley No. 9 Address of Property: 12103 Shetland Chase The motion, seconded by Councilmember Trevino, carried by the following vote: Ayes: Councilmembers Hofmann, Linn, Trevino, Mayor Pro Tem Snell, Councilmember Himmelblau Noes: None Absent: Mayor Friedman, Councilmember Lebermann 2408 December 3, 1976 CITY OF AUSTIN, TEXAS Councilmember Linn moved that the Council uphold the recommendation of the Board of Equalization as follows: 1976 Ownership Value by and Board of Equalization Council Description Property 75% Action ROBERT F. HUGHES Land $ 2,390 $ 2,390 Imps. 29,430 29,430 Parcel 9-2-4122-0401 Lot 1, Block F Total $31,820 $31,820 North Acres Section 3 Address of Property: 801 Floradale The motion, seconded by Councilmember Trevino, carried by the following vote: Ayes: Councilmembers Linn, Trevino, Mayor Pro Tem Snell, Councilmembers Himmelblau, Hofmann Noes: None Absent: Mayor Friedman, Councilmember Lebermann Councilmember Trevino moved that the Council uphold the recommendation of the Board of Equalization as follows: 1976 Ownership Value by and Board of Equalization Council Description Property 75% Action SHIRMER A. MUELLER Land $ 5,630 $ 5,630 Imps. 27,030 27,030 Total *$32,660 $32,660 Parcel No. 2-4701-0218 *Assessed value less $7,000 homestead exemption. Lot 18, Block P Westover Hills, Section 2 Address of Property: 4006 Hyridge Drive The motion, seconded by Councilmember Linn, carried by the following vote: Ayes: Councilmembers Linn, Trevino, Mayor Pro Tem Snell, Councilmembers Himmelblau, Hofmann Noes: None Absent: Mayor Friedman, Councilmember Lebermann 2409 December 3, 1976 CITY OF AUSTIN, TEXAS Councilmember Linn moved that the Council uphold the recommendation of the Board of Equalization as follows: 1976 Ownership Value by and Board of Equalization Council Description Property 75% Action A. E. HOLLINGSHEAD Land $ 2,680 $ 2,680 Imps. 17.760 17,760 Total $20,440 $20,440 Parcel No. 9-2-4724-1102 Lot 2 North Oaks, Section 2 Address of Property: 11608 North Oaks Drive The motion, seconded by Councilmember Himmelblau, carried by the following vote: Trevino, Mayor Pro Tem Snell, Councilmembers Ayes: Himmelblau, Hofmann, Linn Noes: None Absent: Mayor Friedman, Councilmember Lebermann ATTEST: ADJOURNMENT The Council adjourned at 4:00 p.m. City Clerk APPROVED) l Mayor Pro Tem