Chapter 1
Overview of County Appraisal District1.1
County History and DemographicsAccording to The Handbook of Texas, Travis County was founded in 1840 and named for William Barret Travis, hero of the Alamo, a few days after the first town site of Waterloo was renamed in honor of Stephen F. Austin on January 19, 1840.
Travis County is located in central Texas and bordered by Bastrop County on the east, Williamson County on the north, Blanco and Burnet counties on the west and Hays and Caldwell counties to the south. Austin, the county's largest town and its county seat, is located on Interstate Highway 35 and US Highways 183 and 290, one hundred miles southwest of Waco and seventy-five miles northeast of San Antonio on the Colorado River.
The eastern portion of Travis is blackland prairie and the western portion is Hill Country with rolling hills and rocky terrain. Town Lake, Lake Austin, and a portion of Lake Travis (all formed from the Colorado River) are located in Travis County.
The 2003 county population, according to the County Information Project, was 857,204, with the city of Austin having 658,755 residents; the city of Lago Vista, 5,167 residents; the city of Lakeway, 8,190 residents, the city of Manor having 1,204 residents and the city of Pflugerville having 24,653 residents. The county's remaining population resides in a variety of small towns and unincorporated areas.
The county includes the Austin, Pflugerville, Manor, Eanes, Del Valle, Lago Vista, Lake Travis and Coupland school districts, as well as a portion of the Dripping Springs Independent School District.
1.2
Appraisal District Organization and StaffingTravis CAD was formed in 1981 and became active in 1982. It has a total of 106 full-time staff positions, with 15 supervisory positions and no part-time positions. Forty-three positions are full-time appraisers. The district contracts with Capital Appraisal Group for professional appraisal services on utility and industrial appraisals.
Exhibit 1 presents the current board of directors and organization chart.
Scope of Office
The Travis CAD board of directors has no authority to set values or appraisal methods. The chief appraiser carries out the appraisal district's legal duties, hires its staff, makes appraisals and operates the appraisal office.
The district is responsible for appraising 333,446 parcels of real, and personal properties located within the boundaries of the district. This includes 32,714 parcels of business personal property.
Travis CAD provides appraisal services for forty-nine taxing units: Travis County, Austin Independent School District, Dripping Springs Independent School District, Pflugerville Independent School District, Manor Independent School District, Eanes Independent School District, Del Valle Independent School District, Lago Vista Independent School District, Lake Travis Independent School District, and a portion of the Dripping Springs Independent School District, and the Coupland Independent School District. City of Manor, city of Pflugerville, city of Mustang Ridge, city of Rollingwood, city of Austin, city of Lakeway, city of Westlake Hills, city of Creedmoor, city of Jonestown, city of Lago Vista, village of San Leanna, village of Briarcliff, village of Bee Cave, village of Point Venture, village of The Hills, village of Volente, Lost Creek Municipal Utility District, Lakeway Municipal Utility District #1, Hurst Creek Municipal Utility District, Shady Hollow Municipal Utility District, River Place Municipal Utility District, Ranch Cypress Creek Municipal Utility District #1, Bella Vista Municipal Utility District, Northtown Municipal Utility District, Moore's Crossing Municipal Utility District, Wells Branch Municipal Utility District, Northwest Austin Municipal Utility Districts #1 - #10 and #14 and #15, Senna Hills Municipal Utility District, West Travis County Municipal Utility District #5, West Travis County Municipal Utility District #3, Cottonwood Creek Municipal Utility District, Wilbarger Creek Municipal Utility District #6, Wilbarger Creek Municipal Utility District #2, West Travis County Municipal Utility Districts #6 - #8, Northeast Travis County Utility District, Northwest Travis County Road District #1, Travis County Hospital District, Austin Community College District, Williamson-Travis County Water Control and Improvement District 1D, Williamson-Travis County Water Control and Improvement District #1G, Travis County Water Control and Improvement Districts #17 - #20, Travis County Water Control and Improvement District Defined Area - Comanche Trails, Travis County Water Control and Improvement District #17 Defined Area- Steiner Ranch, Lakeside Water Control and Improvement District #1, Lakeside Water Control and Improvement District #2 B, Travis County Water Control and Improvement District #17 Defined Area - Flintrock Ranch, Cypress Ranch Water Control and Improvement District #1, Tangle Wood Forest Limited District, and Travis County Emergency Services District #1 - #12 and #14
Exhibit 2 presents the types of properties appraised by Travis CAD in tax year 2003. Again, the in-house staff handles all property categories except Category J (utilities) and part of Category F2/L2 (industrial - real/personal), which are appraised by Capital Appraisal Group.
Exhibit 2
Travis CAD Property by Category Summary with Assigned Responsibility
Property Category Account Type Description Responsible for Appraisal Category A Residential In-house staff Category B Multi-Family In-house staff Category C Vacant Lots In-house staff Category D/E Farm/Ranch Land w/Impr. In-house staff Category F1 Commercial Real In-house staff Category L1 Commercial Personal In-house staff Category G Minerals None in county Category J Utilities Contracted Appraisal Firm Category F2 Industrial Real In-house & Contracted Appraisal Firm Category L2 Industrial Personal Contracted Appraisal Firm Source: Travis CAD, March 2005. Most appraisal districts contract out some of their work to private firms. PTD does not track parcel counts appraised by external appraisers for appraisal districts, and contracts with external appraisers generally do not include a parcel count for the number of appraisals to be performed. In assessing the staff-to-parcel count ratio in each appraisal district, PTD uses parcel counts reported in the district's 2003 and the county's independent school district self-reports to calculate parcels per appraisal district staff. PTD does include commercial real and personal property parcels in the calculation, since it cannot determine how many parcels are assigned to in-house staff versus private firms. The total parcels appraised in-house are calculated by summing the total number of parcels reported in Categories A, single family residential; B, multifamily residential; C, vacant lots; D, rural land; E, rural improvements; F1, commercial property; L1, personal property; M1, mobile homes; O, residential inventory; and S, special inventory, as shown in Exhibit 3.
Exhibit 3
Reported Data on Parcels, Categories Staffing, Training and Operations Comparison to State and Group Averages
General Information Travis State Avg. Group Avg. Parcel Size Group (by number of locally appraised parcels) > 300,000** Estimated # Locally Appraised Parcels 331,192 55,463 484,672 # Taxing Units 85 15 39 Locally Appraised Parcels to Staff 3,011 3,404 5,090 2003 Composition by Percentage
of Value (Self Report):Travis State Avg. Group Avg. Residential Value 65.7% 52.6% 60.8% Non-Residential, Non Mineral 34.3% 43.6% 39.0% Non-Residential, Mineral 0.0% 3.7% 0.3% 2003 Composition by Account Category Type (Operations Survey): Real Property 300,722 45,804 306,863 Mineral Property 0 13,536 4,743 Business Personal Property 32,714 4,689 28,859 Individual Personal Property 0 1,342 2,544 Total Accounts 333,436 65,372 343,009 2003 Composition by Locally Appraised Parcel Category (Estimated from Self Report): Travis State Avg. Group Avg. Parcel Type # Parcels % of Parcels A 209,907 63.4% 44.1% 45.0% B 14,840 4.5% 1.0% 1.7% C 43,890 13.3% 13.1% 6.3% D 8,573 2.6% 24.7% 36.1% E 4,108 1.2% 4.5% 0.6% F1 11,430 3.5% 3.1% 2.4% L1 30,114 9.1% 5.7% 5.4% M1 7,676 2.3% 2.2% 1.3% O 163 0.0% 1.4% 1.2% S 491 0.1% 0.1% 0.1% Total 331,192 100.0% 100.0% 100.0% PTD estimates that the Travis CAD staff is responsible for appraising 331,192 parcels annually. The International Association of Assessing Officer (IAAO) Standards state that small taxing units assign from 1,500 to 1,700 parcels per staff member and large taxing units assign from 3,000 to 3,500 parcels per staff member, with an average of 2,500.
Districts comparable in size to Travis CAD include the Collin, Hidalgo, El Paso and Bexar county appraisal districts. The number of parcels per staff member for Travis CAD was 3,011 Collin CAD's number was 5,961; Hidalgo CAD's was 3,485; El Paso CAD's was 2,470; and Bexar CAD's was 3,097.
Of course, workloads in appraisal districts may vary, sometimes drastically, due to any number of considerations other than parcel count. The geographic size of an appraisal district, for instance, may have a significant impact on the time required to work all parcels. The types of properties involved also may have an impact. More complex commercial and residential properties may require more staff to appraise. The data given here are meant to give the reader at least some basis for comparison with other appraisal districts with similar parcel counts.
Exhibit 3 includes reported data concerning CAD and state and group averages.
Exhibit 3
Reported Data on Parcels, Categories Staffing, Training and Operations Comparison to State and Group Averages (continued)
Financial and Staffing
Information (Operations Survey)Travis State Avg. Group Avg. 2003 Budget $8,441,948 $1,079,695 $7,130,664 2003 Surplus $900,000 $71,620 $980,781 2003 Surplus as % of Budget 10.7% 6.6% 13.8% 2004 Budget $8,164,660 $1,104,961 $7,183,331 % Change in Budget -3.4% $0 0.7% 2004 Budget per Total Parcel $24.65 $17.41 $14.82** Staffing*** Full Time 110 18 95 Part Time 2 2 6 Supervisory 17 3 13 Programmers 4 2 5 Supervisory to Staff Ratio 1:7 1:5 1:7 Chief Appraiser Performs Appraisals? Yes 2004 Total Compensation $115,000 $53,564 $99,455 Appraisers Full - Time 43 8 42 Part - Time * 0 6 Salary Range: Low $24,500 $24,504 $28,835 High $75,000 $37,521 $66,547 Training Budget $33,100 $8,832 $40,730 # Registered with BTPE (1) 43 9 42 Types of BTPE Certification: RPA (2) RTA (3) RTC (4) All 24 1 0 0 Operations Information
(Operations Survey)Travis State Avg. Group Avg. Reappraisal Last Year of Reappraisal 2003 Next Year of Reappraisal * Type of Appraisal: Complete Method of Appraisal: Combination Protests 42,514 3,131 36,433 Protests per Parcel 12.8% 4.7% 9.5% Consolidated Collection No Collection Budget $0 Geographic Information System (GIS)? Yes Percent GIS Complete 100% 80% 88% Board of Directors Members 10 6 7 Tax Assessor Votes? Yes Elected Members 2 3 3 Note: An asterisk (*) is shown where data was not reported.
Sources: Travis CAD's ISDs 2003 Self Reports and Comptroller 2003-2004 Appraisal District Operations Report and Comptroller comparative data for state and group averages from district self-reports and the Appraisal District Operations Report.
Notes: (1) BTPE - Board of Tax Professional Examiners. (2) RPA - Registered Professional Appraiser. (3) RTA - Registered Tax Assessor-Collector. (4) RTC - Registered Texas Collector.
**A majority of the CADs in the >300,000 parcel count group have high concentrations of mineral parcels and contract out for most appraisals. The group's composition and dominant parcel type mix has caused the group average cost per parcel to be low when compared with an appraisal district with no or few mineral parcels and mostly in-house appraisals, like Travis CAD.
***Updated staffing and certification information, as of June 2005, is provided in Exhibit 9.1.3
Self Evaluation QuestionnaireIn preparation for the Appraisal Standards Review, Travis CAD was asked to complete the International Association of Assessing Officers' Self Evaluation Questionnaire. This instrument asks the district to assess its compliance with acceptable procedures, standards and organization. Each district receives an electronic version of the questionnaire and an IAAO manual explaining each question, and providing information on how to answer them. The Comptroller asks each district undergoing an ASR to perform the self-assessment.
Travis County answered all 110 questions, providing simple yes or no answers and concise responses where necessary. The majority of the responses were in the affirmative, with only one negative response. The district's answers are included in Appendix 15.
In Chapter 1, on legal issues and assessment cycles, the district indicated its understanding and current compliance with legal issues and stated that it has the size, resources and fiscal capacity to effectively perform the assessment function.
In Chapter 2, on resource management, the district indicated it has sufficient resources and manages them efficiently.
In Chapter 3, on computerization, and Chapter 4, mapping, the district indicated it offers sufficient computer and mapping capabilities to meet required activities.
In Chapter 5, data collection, the district indicated that it has ample data collection resources and recently acquired handheld computers for data collection beginning in 2005.
In Chapter 6, land evaluation, the district indicated sufficiency in most areas but stated that it does not evaluate land sales by value per unit or maintain maps showing unit land values. In Chapters 7, 8, and 9, on residential property valuation, commercial property valuation, and sales data respectively, the district indicated that it has sufficient resources and performs sufficiently in all areas.
In Chapter 10, on personal property assessment, the district indicated it has ample resources and performs accepted personal property assessment functions.
In Chapter 11, on assessment administration, the district indicated it draws on ample and complete resources in performing accepted assessment administrative functions. The district noted in Chapter 12, defense of values, that it complies with law and accepted practice.
In public relations, Chapter 13, the district noted it uses accepted public relations tools and complies with accepted public relations practices.
1.4
Findings of the Property Value Study and Summary WorksheetsThe Property Value Study determines the total property value in each school district in the Travis CAD. With a few notable exceptions, all CADs and the Comptroller's Property Tax Division are legally required to appraise property at market value. Agricultural land and timberland are appraised according to productivity value. Market value, in short, is the price that a property would transfer from a willing seller to a willing buyer. For a market transaction to take place, neither party may be under duress to buy or sell. The sale must be on the market for a reasonable time.
Local appraisal roll value, or local value, is determined by the county appraisal district and submitted to PTD on its annual self-report. The PTD staff estimates the total taxable value in a school district, called the state value, by determining market value or by accepting the local appraised value in each property category in the district (see Exhibit 2) and then adding these category values for an overall school district value. PTD then deducts state-mandated homestead exemptions, disabled veterans' exemptions, value limitations, reinvestment zones, freeport exemptions, the loss between market value and the productivity value appraisal of qualified agricultural lands, the school tax ceiling for homeowners over age 65 or disabled and other state-mandated exemptions.
PTD issues a preliminary and final PVS each year. School districts and county appraisal districts may protest the findings of the preliminary PVS through an administrative hearings process with the Comptroller; school districts may protest the findings of the final PVS in district court. The administrative hearings process requires the protester to file a written protest with supporting documentation within 40 days of the issuance of the preliminary PVS. The PTD may amend the findings of the preliminary PVS based on the submission of a written protest, an informal hearing or a formal hearing. A hearings examiner appointed by the Comptroller's general counsel and reporting directly to the Comptroller conducts all formal hearings. The hearings examiner is not an employee of the PTD.
When conducting the property value study, PTD assigns properties to various categories, such as residential, commercial and rural property, so that like properties are assessed together.
Travis CAD or individual school districts informally or formally appealed some study findings by category.
All of the school district appeals except Lago Vista ISD's were settled informally. Lago Vista ISD formally protested selected study findings but was unable to get into the confidence interval and was certified an eligible district in July 2004. Single-family residences (category A) and rural residences (subcategory D2) are the primary reasons that the school's values are not within the acceptable range determined by the study. In general, a ratio of between 0.95 and 1.05-the confidence interval-in any property category makes it more likely that the district is appraising property at or near market value, according to the PVS.
Eligible School District
PTD tested three property categories in Lago Vista ISD: category A, Single-Family Residences, making up 67.1 percent of the district's value with a weighted mean ratio of 0.9491; category C, Vacant Lots, making up 17 percent of the district's value with a weighted mean ratio of 1.0084; and category D, Rural Real, making up 7.8 percent of the district's value with a weighted mean ratio of 0.8185.
Category A has 73 percent of the tested value and received a weighted mean ratio of 0.9491. According to the PVS, all tested value ranges for single-family residences were below market value. Category C, Vacant Lots received a weighted mean ratio of 1.0084. Category D, Rural Real received a weighted mean ratio of 0.8185.
Category D represents rural properties and contains two subcategories: D1 and D2. Subcategory D1, Productivity Value of Qualifying Acres, is primarily farm and ranch land that qualifies for the special productivity appraisal. Subcategory D2, Non-Qualifying Acres and Farm and Ranch Improvements, is primarily rural homes and land that do not qualify for farming or ranching or timberlands. The differences in value between qualified and non-qualified rural land are often wide, since D1 land is appraised using a special statutory method to determine its productivity value and D2 is based on what the land would sell for in an open-market transaction. Subcategory D1 has 0.6 percent of category D's value, 0.06 percent of the total tested value and received a weighted mean ratio of 0.8048. Subcategory D2 has 99.4 percent of category D's value, 9 percent of the school district's total tested value and received a weighted mean ratio of 0.8186.
Other School Districts
Dripping Springs ISD is split between Travis and Hays counties. The Travis County portion of the district is within the confidence interval limit. Subcategory D1 is the only tested category and received a weighted mean ratio of 1.0000.
Austin ISD is just within the confidence interval limit. Category A, Single-Family Residences, account for 52 percent of the school district's value and 55 percent of the tested value. Single-family residences received a weighted mean ratio of 0.9429. Category B, Multi-Family Residences, represents 11.7 percent of the district's value and received a weighted mean ratio of 0.9390. Category C, Vacant Lots represents 1.4 percent of the district's value and received a weighted mean ratio of 0.9337.
Category D is 0.8 percent of the school district's value. Category D, Rural Real, received a weighted mean ratio of 0.9348. Subcategory D1 has 2.2 percent of category D's value and 0.02 percent of the tested value. Category D1 Productivity Value properties received a weighted mean ratio of 0.9405. Category D2 has 97.8 percent of category D's value, 0.89 percent of the school district's total tested value and received a weighted mean ratio of 0.9347. Category F1, Commercial Real, has 22.4 percent of the district's value and received a weighted mean ratio of 0.9844.
Category L1, Commercial Personal, has 6.9 percent of the district's value with a weighted mean ratio of 0.9820.
Pflugerville ISD is just within the confidence interval limit. Category A, Single-Family Residences account for 59 percent of the school district's value and has 76 percent of the tested value. Single-family residences received a weighted mean ratio of 0.9426. Category B, Multi-Family Residences, represents 5.5 percent of the district's value and received a weighted mean ratio of 1.0143. Category D has 3.2 percent of the school district's value. Category D, Rural Real, received a weighted mean ratio of 1.0020. Subcategory D1 has 4.5 percent of category D's value, 0.2 percent of the tested value and received a weighted mean ratio of 1.0454. Category D2 was not tested in this school district. Category F1, Commercial Real, has 13.1 percent of the district's value with a weighted mean ratio of 0.9959.
Manor ISD is within the confidence interval limit. Category A, Single-Family Residences has 18.5 percent of the school district's value and 29 percent of the tested value. Single-family residences received a weighted mean ratio of 0.9553. Category D has 6.2 percent of the school district's value. Category D, Rural Real, received a weighted mean ratio of 0.8770. Subcategory D1 has 7.9 percent of category D's value, 0.81 percent of the tested value and received a weighted mean ratio of 0.9859. Category D2 has 92.1 percent of category D's value, 9.46 percent of the school district's total tested value and received a weighted mean ratio of 0.8688. Category F1, Commercial Real, has 28.5 percent of the district's value with a weighted mean ratio of 1.0093. Category L1, Commercial Personal, has 10.1 percent of the district's value with a weighted mean ratio of 0.9929.
Eanes ISD is within the confidence interval limit. Category A, Single-Family Residences represent 72 percent of the school district's value and 78 percent of the tested value. Single-family residences received a weighted mean ratio of 0.9446. Category D accounts for 1.9 percent of the school district's value and received a weighted mean ratio of 0.9995. Subcategory D1 has 0.6 percent of category D's value, 0.01 percent of the tested value and received a weighted mean ratio of 0.9243. Category D2 was not tested in this school district. Category F1, Commercial Real, has 15.8 percent of the district's value with a weighted mean ratio of 1.0002. Category L1, Commercial Personal, and has 4.3 percent of the district's value with a weighted mean ratio of 0.9779.
Del Valle ISD is just within the confidence interval limit. Category A, Single-Family Residences, accounts for 22.5 percent of the school district's value and 28 percent of the tested value. Single-family residences received a weighted mean ratio of 0.9223. Category B, Multi-Family Residences, represents 14.2 percent of the district's value and received a weighted mean ratio of 1.0095. Category D has 8.1 percent of the school district's value and received a weighted mean ratio of 0.9764. Subcategory D1 has 8.2 percent of category D's value, 0.87 percent of the tested value and received a weighted mean ratio of 0.9817. Category D2 has 91.8 percent of category D's value, 9.77 percent of the school district's total tested value and received a weighted mean ratio of 0.9759. Category F1, Commercial Real, accounts for 19.9 percent of the district's value with a weighted mean ratio of 1.0008. Category L1, Commercial Personal, has 14.1 percent of the district's value with a weighted mean ratio of 0.9893.
Lake Travis ISD is just within the confidence interval limit. Category A, Single-Family Residences, account for 75.8 percent of the school district's value and 79 percent of the tested value. Single-family residences received a weighted mean ratio of 0.9607. Category C, Vacant Lots, represents 6.9 percent of the district's value and received a weighted mean ratio of 0.9304. Category D makes up 6.3 percent of the school district's value and received a weighted mean ratio of 0.9286. Subcategory D1 has 1.4 percent of category D's value, 0.1 percent of the tested value and received a weighted mean ratio of 0.8302. Category D2 makes up 98.6 percent of category D's value, 7 percent of the school district's total tested value and received a weighted mean ratio of 0.9302. Category F1, Commercial Real, accounts for 6.9 percent of the district's value with a weighted mean ratio of 0.9904.
Coupland ISD is split between Travis and Williamson counties. The Travis County portion is within the confidence interval limit. Category A, Single-Family Residences, make up 24.7 percent of the school district's value in Travis County, consists of only six category A properties, and has 27 percent of the tested value. Single family residences received a weighted mean ratio of 1.0515. Category D accounts for 66.3 percent of the school district's value in Travis County and received a weighted mean ratio of 0.9422. Subcategory D1 has 16.7 percent of category D's value, 12 percent of the tested value and received a weighted mean ratio of 1.1027. Category D2 has 83.3 percent of category D's value, 61 percent of the school district's total tested value and received a weighted mean ratio of 0.9155.
In summary, Lago Vista ISD category A received less than a 1.0 weighted mean ratio in all value ranges.
For a statistical explanation of why the district was selected as eligible, see Appendix 18.
