KERR COUNTY, Texas – A newly-proposed Kerr County budget suggests leaders may not raise property tax rates on residents in the upcoming fiscal year, beginning Oct. 1.
Kerr County released its first proposed budget Friday, following concerns over potential property tax increases.
The proposed budget estimates an additional $2.7 million in revenue from property taxes during the fiscal year, but the increase would not come from a rate hike.
The court was supposed to meet Friday to discuss tax rates and salary increases, but that meeting was canceled.
At a Commissioners Court meeting Monday, Kerr County Judge Rob Kelly emphasized that he used the no-new-revenue tax rate, one that would generate the same revenue as the year prior.
The proposed budget utilizes an identical property tax rate to the current property tax rate of 42.33 cents per $100 of property value.
The commissioners’ court previously approved Reeves to calculate the maximum tax rate allowed under a disaster provision in the tax code, spurring a protest.
Kelly assured residents that although it authorized the calculation, it would not be using the figure calculated by the formula.
“Everybody is scared to death when I’m going to make a proposed budget that I’m going to do something hog wild and go out there and raise tax rates,” Kelly said. “We never do. This is a very cost-conscious court.”
KSAT previously reported that Kerr County adopted the no-new-revenue tax rate last year as well.
Kelly described the budget as a point in time, and not a realistic look at what it will be.
The budget, notably, was missing items approved at its last budget workshop. Kelly said there was not enough time to implement the many changes before the deadline to file the proposed budget.
“I have to file some kind of proposed budget,” Kelly said. “We can keep working on the budget, but I gotta put something on file.”
It does, however, account for $2 million in property value that the county will be unable to collect, according to Kelly.
A KSAT analysis of the budget states this will represent a loss of roughly $100,000 in property tax revenue.
This will be offset by new taxable properties, which are estimated to bring in more than $750,000 in additional revenue for the county.
It also includes a provision for $2 million in infrastructure repairs.
Kelly said the Federal Emergency Management Agency will cover 75% of the cost of repairs, but the county will be on the hook for the rest.
The budget also revealed that the county expects to receive $4.1 million in grants from FEMA.
Kelly included a $500,000 contingency fund which he said may need to be used for autopsies on flood victims.
He said the county wrote $400,000 worth of checks last week for autopsies.
As for a large chunk of the damages, Kelly said the county will likely finance millions of dollars in repairs.
Kelly’s proposed budget brings the county’s percentage of expenditures in fund balance to 23.5%.
The percentage is lower than the state’s recommended 25%, but some commissioners said they were willing to go lower.
“That’s what this is for, at a time like this,” Commissioner Rich Paces said. “If we need to go significantly lower, I’m OK with that.”
The Kerr County Commissioners’ Court will meet again Wednesday to hold a budget workshop, and Kelly said it will be the final one before a public hearing on Aug. 25.
The full proposed budget can be reviewed on the county’s website.
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