ORDER N0. 24139 APF~ROVAL OF KERB CENTRAL AF~F'RAISAL DISTRICT 1998 F~ROGOSED BUDGET On this tf~e 11th day of Rugust 1997, upon motion made by Commissioner, Let z, seconded by Commissioner Paldwin, the Court unanisously approved 6y a vote of 4-@-0, the Kerr Central Appr-aisal District 1998 F°r~oposed Budget. r x,9I~ a w y V Y m~ a d'r` ~y0 .~. KERR CENTRAL APPRAISAL DISTRICT P.O. Rox 1RR5 1836 Jur+rnoH Hu:uwev Keaaw~~e, Tezex 7R029-IRKS Voi,'F. 12101 R95-5223 Fex (210) 895-5227 August 5, 1997 Honorable Bob Denson and Commissioner's Court Kerr County Courthouse Kerrville, Texas 78028 RE: Kerr Central Appraisal District 1998 Budget Dear Judge Denson; The Kerr Central Appraisal District Board of Directors adopted the proposed KCAD Budget at a meeting on July 30, 1997 without change. Attached is a copy of the above referenced budget and the preliminary proportionate allocation of the budget for your review. The total budget amount is 5453,435. Within 30 days your entity can by resolution, vote to approve or disapprove this budget, or take no action on the budget. Unless a majority of the entities disapprove the budget by the deadline, it will go into effect January 1, 1998. If you should have any questions or wish that land/or a member of the Board of Directors, appear at your entity meeting, please do not hesitate to contact me. Sincerely; ,'~~'. David D. Oehler, RPA Chief Appraiser C "rye I ~~c~~~ 1998 Budget Kerr Central Appraisal District P.0. Box 1885 1836 Junction Highway Kerrville, TX 78029-1885 (8301 895-5223 David D. Oehler, RPA Chief Appraiser Expenditures Per Line Item Line S~rR 1998 Budget 4005 Salaries ......................... ...... 5 225,000.00 4010 Employer Portion of Retirement ......... ...... 5 16,100.00 4015 Employer Portion of Hospital Tax ........ ...... 5 3,265.00 4020 Employee Medical Insurance ........... ...... S 18,500.00 4025 Texas Employment Commission ......... ...... S 1,750.00 4030 Appraisal Review Board .............. ...... S 7,500.00 4035 Travel and Mileage .................. ...... S 18,600.00 4040 Annual Audit ...................... ...... S 3,600.00 4045 Mapping Expense ................... ...... S 3,500.00 4055 Debt Service -Building ................ ..... S 23,370.00 4060 Deed Copies ....................... ..... 5 2,000.00 4070 Leased Equipment ................... ..... S 3,065.00 4075 Telephone ......................... ..... S 5,075.00 4080 Utilities ........................... ..... 5 4,500.00 4085 Grounds and Building Maintenance ........ ..... S 4,060.00 4090 Consultant -Appraisal ................ ..... S 12,000.00 4100 Consultant -Legal ................... ..... 5 8,500.00 4105 Liability/Worker's Compensation ......... ..... S 5,000.00 4110 Publishing/Publications ................ ..... 5 1,550.00 4115 Professional Dues ................... ..... S 1,700.00 4120 Schools/Employee Education ............ ..... S 4,700.00 4130 Postage .......................... ..... S 13,700.00 4135 Printing .......................... ..... S 3,500.00 4140 Office Supplies ..................... ..... 5 5,250.00 4145 Furniture and Fixtures ................. ..... S 750.00 4150 Board of Directors ................... ..... S 200.00 4155 Equipment Maintenance and Reserve ...... ..... $ 4,235.00 4170 Building Reserve .................... ..... 5 3,500.00 4180 Computer Lease -The Software Group ..... ..... 5 32,041 .00 4180 Imaging and Video ................... ..... $ 16.924.00 TOTAL ................................ $453,435.00 1998 Budget 7!30/97 Expenditures Per Line Item Comparison ~jne Item 1997 Budget 1998 Budget S Cha 4005 Salaries S 218,400 S 225,000 +56,600 4010 Employer Portion of Retirement S 15,638 S 16,100 +5462 401 5 Employer Portion of Hospital Tax S 3,167 S 3,265 + 598 4020 Employee Medical Insurance S 18,500 S 18,500 -0- 4025 Texas Employment Commission S 2,700 S 1,750 -5950 4030 Appraisal Review Board S 8,500 S 7,500 -51,000 4035 Travel and Mileage S 18,600 S 18,600 -0- 4040 Annual Audit S 3,600 S 3,600 -0- 4045 Mapping Expense S 3,500 S 3,500 -0- 4055 Debt Service -Building S 23,370 S 23,370 -0- 4060 Deed Copies S 2,000 S 2,000 -0- 4070 Leased Equipment S 3,065 S 3,065 -0- 4075 Telephone S 5,075 S 5,075 -0- 4080 Utilities S 4,500 S 4,500 -0- 4085 Grounds and Building Maintenance S 3,470 S 4,060 +5590 4090 Consultant -Appraisal S 12,500 S 12,000 -5500 4100 Consultant -Legal S 10,000 S 8,500 -51,500 4105 Liability/Worker's Compensation 5 5,000 5 5,000 -0- 4110 Publishing/Publications S 1,550 S 1,550 -0- 4115 Professional Dues S 1,700 5 1,700 -0- 4120 Schools/Employee Education $ 6,000 S 4,700 -51,300 4130 Postage S 13,700 S 13,700 -0- 4135 Printing S 3,500 S 3,500 -0- 4140 Office Supplies S 5,500 S 5,250 -5250 4145 Furniture and Fixtures 5 1,000 S 750 -5250 4150 Board of Directors S 200 S 200 -0- 4155 Equipment Maint. and Reserve S 4,500 S 4,235 -5265 4170 Building Reserve S 3,500 S 3,500 -0- 4180 Computer System S 32,041 S 32,041 -0- 4180 Document Imaging and Video S 16.924 S 16.924 _0_ TOTAL S 451,700 5 453,435 +1,735 1998 Budget 7/30!97 4005 - Sa/cries and Positions: Chief Appraiser ..... .... ...... S 41 ,000.00 Senior Appraiser ............... ...... S 29,000.00 Deputy Admin./Office Manager ..... ...... S 27,000.00 Field Appraiser IV .............. ..... S 23,000.00 Field Appraiser II ............... ...... S 19,500.00 Field Appraiser II ................ ..... S 19,500.00 Abstractor ............. ... S 19,000.00 GIS Mapper .................... ..... S 19,000.00 Clerical ....................... ..... S 14,000.00 Clerical ............... ... S 14.000.00 TOTAL ....................... ..... 5225,000.00 The proposed 1998 line item for salaries is an increase of 56,600 or (+3.0%) over the 1997 line item. Kerr CAD lost several employees in 1996 and 1997 due to better salaries elsewhere. Kerr CAD is in danger of losing more employees due to the strengthening of the Texas economy. It is foreseeable that salaries will need to increase to remain competitive with similar positions. For a full comparison of previous salary history, please refer to the Previous Budget section, located in the addendum of this report. 4010 - Emn/oygr's Retirement: KCAD has an independent employee retirement plan through Plan Data. All employees are required to participate in this plan. The employees currently invest 7 percent of their salary into this plan. KCAD in turn matches 7 percent of the employee's salary. The projected 1998, account administration fee for this plan is approximately 5350 per annum. Details of this line item are as follows: Total 1998 Proposed Salaries 5225,000.00 KCAD Matching Percentage x 0.07 KCAD Contribution S 15,750.00 Administration Fee S 350.00 TOTAL S 15,988.00 1998 Budget 7/30/97 4J 15 - Emn/over Hosea!/Soda/ Security: KCAD is responsible for the Medicare tax on each of the employee's wages. This rate is equal to 1 .45 percent of the first 5125,000 paid to each employee per year. The amount requested for this line item is 53,265. Details of this item are as follows: Total 1998 Proposed Salaries 5226,000.00 Medicare Rate x -4-Q1~ TOTAL S 3,262.50 4020 - Em~ovee Medical /assurance: In 1996 the district began providing health insurance the its employees through the Texas Association of Counties. These premiums are expected to remain the same for 1998, at 51 50 per month per employee. Details of this expenditure follow: KCAD Contribution Per Month Number of Employees S 150.00 x 10 Total Monthly Contribution Number of Months Annual allowance Administrative Fee TOTAL 4025 -Texas E~yment Gommiss/on' S 1, 500.00 x 12 518, 000.00 S 500.00 518,500.00 KCAD is responsible for the payment of each employee's unemployment tax through the Texas Employment Commission. This tax is a percentage of the first 59,000 of the employee's quarterly salary. These rates change annually and are based on the number of employee's hired and fired during the previous year. KCAD received a favorable rate in 1997 therefore, the 1998 estimate of 51,750 is 5950 less than the 1997 amount. 1998 Budget 7/30/97 4030 - Aoniaisa/ Review Boaid:_ KCAD is responsible for the Appraisal Review Board stipend. This reimbursement covers the members time, travel, and other related costs to serving on this board. This reimbursement is 51,500 annually. There are five member on the Appraisal Review Board. Reimbursement per Member 51,500.00 Number of Members x 5 TOTAL $7,500.00 The amount requested of 57,500 is 51,000 less than the 1997 line item expense of 58,500. 4035 - Tiave/ and Mi/eaoe: For 1998, the district will continue to have four full time field appraisers, with the Chief Appraiser, Office Manager, and GIS Mapper also collecting reimbursement for mileage. The following estimate for mileage remains the same for 1998. Position Miles/Month Miles/Annual Chief Appraiser 600 7,200 Senior Appraiser 1 ,000 12,000 Deputy Administrator 300 3,600 Field Appraiser 1,000 12,000 Field Appraiser 1,000 12,000 Field Appraiser 1,000 12,000 GIS Mapper 100 1,200 Estimated Miles per Year 60,000 Reimbursement Rate per Mile x S 0.31 TOTAL S 18,600 1998 Budget 7/30/97 Section 6.063 of the Property Tax Code requires that the district have an annual audit by a Certified Public Accountant. The amount requested for 1998 is the same amount as allotted for 1997 and 1996, this amount is 53,600. 4045 _ M~~yino Expense: In 1997 the district has been able to make great strides in mapping. Appraisal Districts are required by state law to produce and maintain property ownership maps. The district is also sharing time and equipment with the Kerr County Rural Addressing and E9-1-1 District. Due to property ownership constantly changing, the complete parcel mapping of the entire district will remain a slow and tedious task. It is foreseeable that an additional position will be required in the future. Having quality maps will not only make it easier for taxpayers, customers, surveyors and real estate professionals to find tract ownership, but will allow the district appraisers to search for a type of particular properties and become more uniform in property classifications. The district is proposing 53,500 in supplies and materials for 1998. Supplies and materials include paper and plotter supplies, miscellaneous computer supplies and equipment. This amount remains the same for 1998. x-755 -Debt Service - Bui/dino: KCAD has monthly building payments totaling 523,370 per year. This amount has remained the same for 1998. 4060 -Deed Cosies: In order to maintain correct property ownership, KCAD is required to purchase copies of real property deeds from the Kerr County Clerk. The 1997 amount budgeted was 52,000. Por 1998, the same amount is requested. 1998 Budget 7/30/97 4070 -Leased Ep~jnment: In December, 1994, the district leased a copy machine. This lease is 5187.70 per month or 52,252.40 per year. The district leases a Pitney Bowes Postage Meter. This lease is 5636 per year. KCAD also leases an off-site storage unit. This unit is used for record archival purposes. The lease is 51 56 per year. The amount requested remains the same at 53,065. 4075 - Te% ho one: The 1997 budgeted amount for this category was 55,070. The requested amount for 1998 remains the same at 55,075. 4080 - Uti/ides: The District's utility expense covers city water and electricity. The amount requested for 1998 remains the same at 54,500. Building and grounds maintenance includes trash pickup, building cleaning, lawn care, and pest control. The details of this maintenance is as follows: dense Trash Pickup Building Cleaning Outside Maintenance Pest Control Termite Inspection M n Y r S 36.00 5432.00 S 60.00 S840.00 S 200.00 52,400.00 5 24.00 5288.00 S 100.00 TOTAL 54,060.00 The 1997 amount requested for Building and Grounds Maintenance of 54,060 is an increase of S590 due to an increase in outside maintenance. In years past the district has been paying below market rates to have the lawn maintained. The new rate allows for proper care. 1998 Budget 7/30/97 KCAD contracts out the appraisals on utilities, minerals, pipelines, and industrial properties. The 1 997 actual expense for this service was 51 2,000. The requested amount for 1998 is a slight decrease from the budgeted 512,500 to S 12, 000. 4100 - Consu/rant - L~,ga/ KCAD maintains a retainer with the law firm of Calame, Linebarger, Graham, and Pena. As of June 9, 1997, the district has two pending lawsuits over 1997 values. It is requested that this line item decrease 51,500 to 58,500. 4105 - Liabi/ity and Workers Comvensation: This line item covers workers compensation, general liability, automotive liability, errors and omissions, and real and personal property insurance. This insurance is through the Texas Municipal League Intergovernmental Risk Pool (TML). The 7998 proposed amount of 55,000 remains the same as the 1997 budgeted amount. 4110 -Pub/ishin~and Pub/icatians: Items covered by this line item include newspaper advertisements, property listings, and replacement cost guides. Detailed information of this line item is as follows: Marshall and Swift Cost Guides 5200.00 Motor Vehicle Listings 5460.00 NADA Automobile Guide 5 45.00 Newspaper Notices 5450.00 Newspaper Subscription $ 85.00 Journals S 72.00 Property Tax Code & Law Books 5200.00 TOTAL S 1, 512.00 The 1998 amount requested for this line item Publishing and Publications remains the same as 1997 and 1996 at 51,550. 1998 Budget 7130!97 4115 -Dues: This line item is devoted to the registration of the district and employees with different state agencies and trade organizations. The registration with the Board of Tax Professional Examiners is required by law. Affiliation with the Texas Association of Appraisal Districts allows KCAD to enroll in state classes for reduced tuition and keeps the district informed of changing rules and laws. The Society of Farm Managers and Rural Appraisers is a nationally respected appraisal association. The Chief Appraiser and Senior Appraiser will both be registered as members and gain continuing education credits through this organization. A detailed description of this line item follows: Board of Tax Professional Examiners Texas Association of Appraisal Districts Society of Farm Managers and Rural Appraisers Texas Association of Assessing Officers Visa Charge Membership TOTAL S 480.00 S 600.00 S 520.00 S 65.00 S 35.00 S 1, 700.00 The 1998 amount requested for Dues remains the same as 1997 and 1996 at S 1 .700. According to Section 5.04, of the Property Tax Code, an appraisal district shall reimburse an employee for all actual and necessary expenses, tuition, other fees and costs of materials incurred in attending, with the chief appraiser's approval, a course or training program conducted or approved by the Board of Tax Professional Examiners. Currently, the district has only two RPA's on staff. For appraisers to achieve the RPA designation they must undergo numerous required education classes and level exams. This education is state mandated for any employee that deals with property values. The district is required to furnish education opportunities for the appraisers. The Chief Appraiser considers education to be of the highest priority. An informed and educated employee returns the initial investment manyfold. A detailed summary of this line item follows: 1998 Budget 7/30/97 4120 - Schoo/s and Em~yee Education/Cont. ErruLyee h I Field Appraiser II 250,325 Field Appraiser I 100,120 Field Appraiser III RPA review Office Manager one course GIS Mapper Arcview Senior Appraiser ASFMRA Chief Appraiser ASFMRA Texas Assoc of Appraisal District Conference Rural Appraiser Conference TOTAL Cost 5800 S800 5800 5400 5500 5300 S300 5400 5400 S 4, 700 The 1998 amount requested for Schools and Education is 54,700. This amount is 51,300 less than the 1997 amount. 4130 -Postage: A detailed list of postage requirements follows: Sale Questionnaires 1,500 S 480 w/Prepaid Returns Notices of Appraised Value 34,000 S 7,240 Ag Reset Letters 300 S 100 Ag Denial -Certified 100 S 300 Ag Grant Letiers 400 S 130 Personal Property Renditions 3,000 S 960 ARB Hearing Letters 750 S 240 ARB Determination -Certified 750 S 2,250 Daily Miscellaneous S 2.000 TOTAL S 13.700 The 1998 amount requested for Postage is 513,700. This remains the same as the 1997 and 1996 amounts. 4135 - Piintinq~ This line item includes expenses such as printing of Notices of Appraised Value, Appraisal Cards, Appraisal Rolls and Letterhead. This item remains the same as 1997 at 53,500. 7998 Budget 7!30/97 4140 -Office Sup/ies: This line item includes all miscellaneous office supplies used In the district. These items include paper, writing utensils, film, toner cartridges, and other supplies. The amount requested for 1998 of 55,250 is 5250 less than the 1995, 1996, and 1997 line item of 55,500. 4145 -Furniture and Fixtures: The district has been able to maintain furniture and fixture expense at the current level since 1 990. New furniture purchases have been kept to a minimum. The amount requested for this line item of 5750 is 5250 less than the 1990-97 level of S 1, 000. 4150 -Board of Directors: This line item is utilized to purchase director manual and reference material for the Board of Directors. A portion of this line item is also utilized to purchase awards of appreciation to outgoing board members. The line item remains at 5200. 4155 - Equioment Maintenance and Reserve: In 1995, after careful analysis of the district's maintenance agreements and past hictory of maintenance requirements, it was the conclusion of the chief appraiser that an equipment reserve would allow the district to set aside monies to repair equipment instead of purchasing numerous, costly maintenance agreements. The requested amount of 54,235 is 5265 less than the 1997 item of 54,500 4170 - Bui/ding Reserve: A building reserve of 53,500 per year was-established when KCAD purchased the current building. This fund is reserved and cannot be utilized for any purpose other than which it is designated. 1998 Budget 7130/97 4780 - Computer Lease -The Software Grouo: This line item is for the district computer system. This system is the "lifeblood" of the district. Every property account is recorded, updated, and appraised through this system. A detailed summary of this line item is as follows: Annual Payment S 16,176 - 48 months Hardware Maintenance S 1,765 System Software Support S 600 Application Software Support 513.500 TOTAL 532,041 The above basic system was lease/purchased through The Software Group in 1995. The amount requested remains the same as budgeted in 1997 at 532,041 . 4185 -Document /magina and Video Ca to ure" In 1997, the district purchased an "add on" video capture and document imaging appraisal package. This additional package allows the district to take digital pictures of properties and scan documents (homestead applications, agriculture applications, protest forms, maps, and correspondence) into the existing computer system. These images are then "tied" to each individual property account. This greatly helps in the uniformity of appraisals, displaying comparable sales to taxpayers, and helps to keep documents from becoming separated from property cards. This package costs as follows; Annual Payment 514,284 - 48 months IBM Disk Maintenance S 840 Application Software Support S 1.800 TOTAL For Imaging 516,924 The 1998 amount requested for this line item is 516,924. 1998 Budget 7/30/97 Addendum 1998 Budget 7/30/97 4780 and 4185 Long Teim Bs'eakdown• Line Items 41 80 is a 48 month lease purchase that began January 1 , 1 996. Line Item 4185 is a 48 month purchase that began January 1, 1997. The following is a breakdown of line item hardware and support costs by year. Year 1997 1998 1999 2000 2001 2002 Computer Lease Hardware 516,176 516,176 516,176 SO 50 SO Hardware Maint. 51,765 51,765 51,765 S1,765 S1,/ti5 51,765 System Support S600 5600 5600 5600 5600 5600 Software Support St3,500 513,500 513,500 513,500 513,500 S13,500 Imaging and Video: Hardware S74,284 514,284 514,284 S14,284 SO SO Hardware Maint. 5840 5840 5840 5840 5840 5840 Software Support 51,800 51,800 S1,800 S1,800 S1,800 S1,800 Annual Cost S4S,965 548,965 548,965 532,789 518.505 St8,505 This breakdown is to illustrate the terms of the lease and purchase of Line Items 4180 and 41 85. Hardware maintenance and Software support will remain the same for the term of the contract. These costs are subject to change after the individual contracts expire, in year 2000 for 4180 and 2001 for item 4185. This breakdown does not take into account any unforeseen circumstances, such as equipment failures or technology advances. 1998 Budget 7/30/97 Budget Comparison 1998 Budget 7~30~97 KCAD BUDGET HISTORY 4005 Salaries 4010 Employer's Retirement 4015 Employer HospltallSS 4020 Employee Medical Insurance 4025 Texas Employment Commission 4030 Appraisal Review BoarO 4035 Travel6 Mileage 4040 Annual Audit 4045 Mapping Expense 4046 Debt Service-Mapping 4C~ Debt Servlce•Bullding' 4080 Deed Copies 4070 Leased Equipment 4075 Telephone 4080 Utilities 4085 Grounds and Bullding Maintenance 4080 ConsultanVAppralsal ConsultanUComputer 4100 ConsultanULegal 4105 Uablliry Workers Comp 4110 PubllshinglPublicatlons 4115 Dues 4120 Schools/Reglstratlon Fees 4130 Postage 4135 Printing 4140 Office Supplies 4145 Furniture d. Fixtures 4150 Board of Directors x155 Equipment Maintenance 4170 Bullding Reserve 4175 Computer Purchase AS400 4180 Computer Lease RS 6000 4185 Document Imaging and Video TOTAL 1988 1999 1990 1991 1992 199) 1994 1995 1996 1997 5209,2700) 5197,124.E 5201,925.00 5201,721.00 5201,257.00 3194,900.00 3215,C60.W 5222,340W 5207 CCOW S2i 8,400.00 b/4,G90W 5,3,799.00 5,4,135.00 514,120.00 313,T/3.00 513,643.00 515,306.00 515,914.OJ St4 B40 OJ St5Q6.OJ 51.200 51,066.W 32,810.00 52,010.00 52,291.00 52,166.00 52,43300 32.515W 53032,00 53,167.OJ b, 0,00000 37,500,W E15,Ot70.00 315,000.00 523,213.00 314,000.E 515,500 OJ 515,`.~CO 518 X0.03 518,SOJ OJ 5950.00 E10~.00 3850.W 5850.00 51,037.00 51305.00 590).00 St.BCO.W 52700.00 52,700 512,000.OJ 312.000.00 311,000.00 311,000.00 58,500.00 5850).00 38,SOJ.CO 38,SOO.CO SB.S~.OJ Sfi,50J C0 516,OJ0.00 5, 4,700-.0p 515,700,00 517,000.00 518,300.00 514500.00 E 16,OOJ.CO 5 t 8 0~.C0 5 t 6.BOJ.OJ S 16,EO~ C0 52,4~.~ 52,4~.Op 32,400.00 32,400.00 52,750.00 53,150.00 53,30J.N 33,60~.LY' S3 ~.~ S3 9JJ N 30.00 50.00 30.00 30.00 5492.00 5492.E 3492.00 33,492.N 535~C0 S3,`~J.CO 50.00 50.00 50.00 50.00 56,506.00 S6,5C8.W 36,506.00 56,5 CO 56 5~ OJ 50.00 E28.12a C0 528,12400 522,752.00 321,629.00 521,629.00 521,829.W E21,829.OJ 521 829.E 521 82903 523,370.03 5900.00 E1,OW.00 51,000.00 51,000.00 31,200.N 51,200.W 51,2O3.OJ 520x.0: S2 CU3 OJ 52,007.00 5400 CO 340).00 3650.E 5CŁi0.00 3500.00 5636.00 SBW.O3 S6~.OJ 530x0 CG 53,C65.~ S3,2C0~ E2,4N.C0 52,400.00 53,350.00 b3,600.00 33 EOO.W 33,Ob.03 53073W 54 t5J.L1: 550'5 Q7 SO.CO 30.W 30.00 53,180.00 35,100.00 35100.00 55,1.03 Sa,5~3.~ Sa,xO.~ Sa ~.~ 30~ 30.00 50.00 31,200.00 51,700.00 32,070.00 32,700.OJ 32,90).00 S2 Si3.~ S3,a70.N 53,x.00 312,300.00 311,700.00 329,300.00 511,000.00 511,000.00 511,000.00 Sti,S"..o.CO Si t,SxJ OJ St2,6N,03 50.00 58,700.00 59,222.00 39,222.00 511,685.00 SO.lX7 SO.W 30~ SO.CO 30.N 524,000.00 56,000.100 54,800.00 56,000.00 56,000.00 56,000.00 58,0.'U.W 39,003.E St0,C~0.OJ 310,003.00 54,N0.00 35,000,00 54,500.00 SS,6N.00 58,500.00 59,800.00 510,1 W.W b10,~.C0 54,728.OJ 55,0.'10.00 s1,om.o~ 3soo.oo asoo.oo s5oo.oo sl,seo.oo s1,s~o.oo 5,,6ro.~ s,,7o3.~ s, s