1

Demand for City-type Services

2

Demand for City-Type Services

Development in the unincorporated area may result in the expectation that the County should provide different, city-type services

SB 89 passed in 1999 made the annexation process more difficult therefore, the City of San Antonio has curtailed annexation

3

Demand for City-Type Services

“City”-type Services:

Utilized City’s FY 2010-11 Budget to establish a cost per citizen

Used Unincorporated Area population to establish a budget for these services

Calculated the tax rate needed to pay for these services

4

Demand for City-Type Services

Services not provided by the County that may be expected in a more urban unincorporated area setting:

Code Enforcement - $2.4 M. Cultural Affairs - $1.5 M. Customer Service/311 - $805 K. Development Services - $4.3 M. Fire/EMT - $48.5 M. Police - $63.4 M. Solid Waste Management - $20 M.

5

Cost for City-Type Services

Bexar County budget would increase by $155 million if implemented in 2012

This does not include costs associated with start-up such as the construction of buildings, vehicles, etc.

Assumes all costs are paid through property tax revenue, no special fees included.

6

Legal Challenges/Barriers

Counties in Texas do not have “home rule” authority, they only have powers specifically granted to them by the constitution and state laws

Significant constitutional and/or legislative change would be required in order for the County to perform some of these services

7

Fiscal Challenges/Barriers

Tax all property in Bexar County

Tax rate increase of $0.1849 per $100 valuation

Current tax rate is $0.32686 per $100 valuation

Would bring total tax rate up to $0.5118 per $100 valuation

City’s current tax rate is $0.56569 per $100 valuation

8

Fiscal Challenges/Barriers

Tax property in the unincorporated area of Bexar County

Tax rate increase of $1.2251 per $100 valuation

Would bring total County tax rate up to $1.552 per $100 valuation

Constitutional Limit of $0.80 per $100 valuation

9

Bottom Line

County can’t legally perform many City-type services

No “home rule” or ordinance-making authority

County won’t be legally able to raise taxes to fund this level of services

Roll-back rate limitation of no more than 8% annually

10

Other Options Available to Unincorporated Areas

Pursue self-incorporation as new cities

Creation of Special Districts

Self-Assessments, Public Improvement Districts, etc

Annexation by the City of San Antonio (or other incorporated cities)

11

Demand for City-type Services