KERR COUNTY, Texas – The Kerr County Commissioners’ Court approved its new budget and lowered the property tax rate, capping off a prolonged debate following deadly flooding in July.
Commissioners officially adopted a tax rate of 40.24 cents per $100 of property value, representing a 4.93% decrease from the current rate, during its Monday meeting.
The fiscal year begins on Oct. 1.
KSAT has covered debates between Kerr County officials on how to set the tax rate for months, as the county balances the need to fund disaster recovery without placing an unnecessary tax burden on flood victims.
Next year’s budget is about $11 million short, but to cover part of the gap, the county is dipping into its reserve funds.
County Judge Rob Kelly has repeatedly said that he fears the county may become unable to pay its debts if it spends too much of its reserve funds to keep the tax rate low.
It was a sentiment Kelly returned to shortly before the Monday vote.
“I really don’t like this budget,” Kelly said. “I think we’re spending way too much money out of the fund balance ... those are revenues we will not have next year.”
Kelly had previously cited disasters the county has faced, saying that the county often has to pay for disaster recovery on the front end, while federal and state reimbursements can take two to three years to process.
Gov. Greg Abbott and other commissioners have pushed back on this notion, stating this recovery has been — and will be — different.
Though the rate itself is expected to decrease, the average homeowner would still pay 5% more in property taxes due to a 10.44% increase in property valuations.
Those who experienced at least 15% damage to their property in the floods have until Oct. 18 to apply for a property tax exemption.
Precinct 2 Commissioner Rich Paces had said he believes taxes should be lower than the current rate to send a message that the county isn’t trying to “screw” flood victims.
Before Monday’s vote, Paces echoed his support of the new budget.
“I was looking for an even lower tax rate ... I’m very comfortable with this,” Paces said.
Commissioners did not make any changes to the budget before voting on it.
The court also passed a tax rate hike for Kerr County and for the Lake Ingram Estates Road District. The latter was also adopted.
On both votes, all four commissioners voted yes, with Kelly abstaining both times.
Read more: