Proposed 2022 valuation estimates for the city of Coppell shows a continued trend of declining residential growth.
Jennifer Miller, Coppell’s finance director, said estimated valuations for 2022 shows the residential sector makes up 55.21%, compared to 44.79% on the commercial side.
“Over the last four years we’ve seen a shift … from residential to commercial,” Miller said during a budget work session Thursday.
Miller said that in 2018 the residential valuation made up 58.55% compared to 41.45% commercial. She added that residential growth continues to show a downward trend over the past four years.
In 2018, residential growth came in at 8.44%, which fell to 5.99% in 2019, 4.27% in 2020 and Miller adds that 2021’s growth to be even lower.
“I was actually expecting to see the appraised values go up more, just due to the current real estate conditions,” said Coppell Mayor Wes Mays.
Miller added that the Dallas Central Appraisal District told the city to be “very conservative” in its estimates and to prepare for more appeals due to COVID-19 and the winter freeze.
Coppell City Manager Mike Land said the city will see the benefits of the recent hot real estate market in the 2022 report.
In total, the certified valuation for 2021 came in at $8.38 billion, which is down from the proposed 2022 valuation of $8.79 billion.
The certified 2021 valuation for residential properties was $4.74 billion, which is about 2% lower than the proposed $4.85 billion for 2022.
The tax rate for the coming year is proposed to remain at 0.580 cents per $100 of valuation. The maintenance and operations tax rate is proposed to be 0.466 cents and the debt service rate would be 0.113 cents per $100 of valuation.
Miller added there was a shift of 1.4422 pennies from the general fund to debt service in fiscal year 2021-22, due to a debt issuance. This resulted in $1.2 million less tax revenue in the general fund for the current fiscal year.
Debt service receives funds through property taxes, which is expected to take in $9.53 million.
Overall, the proposed 2022 general fund’s revenue came in at $61.62 million, while expenditures were $63.08 million. These are both declines from 2020’s adopted $73.07 million in revenue and $71.89 million in expenses.
Property taxes make up 63% of the city’s revenue, or about $39 million, while sales tax brought in $10.64 million. Public safety is the highest expenditure at $25.8 million.