0 r C ro ~A (D J J N rt N N k~ W ~"ro~ ~~~ FN{ M fD ~ fi N t1 (p~ JCL rt O N ~. 0 r (D H N O N N O~ DRDER N0. 25516 RRPROVRL OF KERR CENTRRL RpF'RRISRL DISTRICT @UDGET AS RRESENTED TO CONMISSIONERS' COURT On this day the 24th day of August, 1998 ~.ipon motion made by Commissioner^ Let z, seconded by Commissioner- Oehler, the Court unanimously approved by a vote of 4-0-0, the Ker^r Central Rppr•aisal District @udget effective January 1, 1999 as presented to Commissianer•s' Court. w Kerr Central Appraisal District P.O. Box 1885 • 1836 Junction Highway • Kerrville, Texas 78029-1885 Phone (830) 895-5223 • Faa (830) 895-5227 ~, ~..,~ August 19, 1998 Judge Robert Denson Commissioner's court Kerr County Courthouse Kerrville, TX 78028 RE: Kerr Central Appraisal District 1999 Budget Dear Judge Denson; The Kerr Central Appraisal District Board of Directors adopted the proposed KCAD Budget at a meeting on August 18, 1998 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 5499,653. 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, 1999. 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; ~~ /l ~:~t David D.~Oehler, RPA Chief Appraiser 1999 Adopted Budget Kerr Central Appraisal District P.O. Box 1885 1836 Junction Highway Kerrville, TX 78029-1885 (830)895-5223 David D. Oehler, RPA Chief Appraiser 1999 Adopted Budget 8/18/98 Expenditures Per Line Item Line Item 4005 Salaries...... 4010 4015 4020 4025 4030 4035 4040 4045 4055 4060 4070 4075 4080 4085 4090 4100 4105 4110 4115 4120 4130 4135 4140 4145 4150 4155 4170 4180 4180 Employer Portion of Retirement ........................ Employer Portion of Hospital Tax ...................... Employee Medical Insurance ............................ Texas Employment Commission ....................... Appraisal Review Board .................................... Travel and Mileage ............................................. Annual Audit ....................................................... Mapping Expense .............................................. Debt Service -Building ...................................... Deed Copies ....................................................... Leased Equipment ............................................. Telephone ........................................................... Utifities ............................................................... Grounds and Building Maintenance .................. Consultant -Appraisal ........................................ Consultant -Legal .............................................. Liability/Worker's Compensation ....................... PublishinglPublications ...................................... Professional Dues .............................................. Schools/Employee Education ............... Postage .................................................. Printing .................................................. Office Supplies ...................................... Furniture and Fixtures ........................... Board of Directors Equipment Maintenance and Reserve .............. Building Reserve ................................................ Computer Lease -The Software Group............ Imaging and Vdeo ............................................. ........................................ a e TOTAL ....................................................................................................... S 1999 Budget 233,500.00 16,700.00 3,400.00 21,500.00 1,500.00 10,500.00 21,000.00 3,000.00 6,500.00 23,370.00 4,000.00 3,000.00 6,870.00 4,500.00 4,800.00 12,000.00 9,000.00 5,000.00 1,550.00 1,700.00 6,450.00 21,000.00 4,000.00 5,250.00 750.00 200.00 4,500.00 3,500.00 42,889.00 17,724.00 499,653.00 1999 Adopted Budget 8/18/98 Expenditures Per Line Item Comparison Line. ltem 1998 1999 ~-~ °~ Diff 4005 Salaries $225,000 $233,500 $8,500 3.78% 4010 Employer Portion of Retirement $16,100 $16,700 $600 3.73°k 4015 Employer Portion of Hospital Tax r $3,265 $3,400 $135 4.13% 4020 Employee Medical Insurance $18,500 $21,500 $3,000 16.22% 4025 Texas Employment Commission $1,750 $1,500 -$250 -14.29% 4030 Appraisal Review Board $7,500 $10,500 $3,000 40.00°k 4035 Travel and Mileage $18,600 $21,000 $2,400 12.90% 4040 Annual Audtt $3,600 53,000 -$600 -16.67% 4045 Mapping Expense $3,500 $6,500 $3,000 85.71% 4055 Debt Service -Building $23,370 523,370 $0 0.00% 4060 Deed Copies $2,000 $4,000 $2,000 100.00% 4070 Leased Equipment 53,065 $3,000 -$65 -2.12% 4075 Telephone 55,075 $6,870 $1,795 35.37% 4080 Utilities 54,500 $4,500 $0 0.00% 4085 Grounds and Building Maintenance $4,060 $4,800 $740 18.23% 4090 Consultant -Appraisal $12,000 $12,000 $0 0.00% 4100 Consultant -Legal $8,500 $9,000 $500 5.88% 4105 Liability/Worker-s Compensation $5,000 $5,000 $0 0.00% 4110 PublishinglPublications $1,550 $1,550 $0 0.00% 4115 Professional Dues $1,700 $1,700 $0 0.00% 4120 Schools/Employee Education $4,700 $6,450 $1,750 37.23% 4130 Postage $13,700 $21,000 $7,300 53.28% 4135 Printing $3,500 $4,000 $500 14.29% 4140 Office Supplies $5,250 $5,250 $0 0.00% 4145 Fumtture and Fixtures $750 5750 $0 0.00% 4150 Board of Directors $200 $200 $0 0.00% 4155 Equipment Maint. and Reserve $4,235 $4,500 $265 6.26% 4170 Building Reserve $3,500 $3,500 $0 0.00% 4180 Computer System $32,041 $42,889 $10,848 33.86% 4180 Document Imaging and Video $16,924 $17,724 $800 4.73% TOTAL $453,435 $499,653 $46,218 1999 Adopted Budget 8/16/98 4005 -Salaries and Positions: 1998 Budgeted 1999 Proposed Chief Appraiser $41,000 $ 41,000 Senior Appraiser $29,000 $ 29,000 Office Manager $27,000 $ 27,500 Field Appraiser IV $23,000 $ 23,500 Field Appraiser II $19,500 $ 20,000 Field Appraiser II $18,500 $ 20,000 Abstractor $19,000 $19,500 GIS Technician $19,000 $ 22,500 Clerical $14,500 $15,250 Clerical 1$ 4,500 15 250 TOTAL $225,000 $233,500 The proposed 1999 line item for salaries is an increase of $8,500 or (+3.78%) over the 1998 line item. Ken CAD has had the same number of employees for the preceding 10 years and it is expected that at least one position will need to be added next year. Due to the strengthening economy, it is also foreseeable that salaries will need to increase to keep well-trained and competent employees. 4010 - Emolover5 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 1999, account administration fee for this plan is approximately $350 per annum. The amount of $16,700 is requested for this item. Details of this line item are as follows: Total 1999 Proposed Salaries $ 233,500.00 KCAD Matching Percentage x 0.07 KCAD Contribution $ 16,345.00 Administration Fee ~ 350.00 TOTAL $ 16,695.00 1999 Adopted Budget 8/18198 4015 - Emalover Hosaital/Social 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 $125,000 paid to each employee per year. The amount requested for this line item is $3,400. Details of this item are as follows: Total 1999 Proposed Salaries $ 233,500.00 Medicare Rate x 0.0145 TOTAL $ 3,386 4020 - Emalovee Medical Insurance: In 1996 the district began providing health insurance the its employees through the Texas Association of Counties. These premiums increased for 1998 to approximately $175 per month per employee. This is the amount budgeted for 1999. Details of this expenditure follow: KCAD Contribution Per Month $175.00 Number of Employees x 10 Total Monthly Contribution $1,750.00 Number of Months x 12 Annual allowance $21,000.00 Administrative Fee 500.00 TOTAL $21,500.00 4025 -Texas Employment Commission: 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 $9,000 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 1998, therefore, the 1999 estimate of $1,500 is $250 less than the 1998 amount. 4030 - Aaaraisal Review Board: 1999 Adopted Budget 8/18/98 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. The Kerr CAD has been having a very d'dficult time finding qualified citizens willing to serve on this independent panel. This is due to numerous legislative changes that affect the qualifications and education of its members. This panel typically meets 30-45 days per year. The reimbursement of $1,500 per year has remained the same for several years. In an effort to slightly encourage involvement, we request that we increase this stipend to $2,000 per year, and include $500 for supplies and education. There are five members on the Appraisal Review Board. Reimbursement per Member $2,000.00 Number of Members x 5 TOTAL $10,000.00 Education + 500.00 TOTAL $10,500.00 The amount requested of $10,500 is $3,000 more than the 1998 line item expense of $7,500. 4035 -Travel and Mileage: The Kerr CAD is responsible far and required bylaw to physically inspect all property located within Kerr County. Kerr CAD has in the past, paid mileage reimbursement to its employees for using their own vehicles. For 1999, the district will continue to have four full time field appraisers, with the Chief Appraiser, Office Manager, and GIS Technician also utilizing vehicles in connection with their duties. The large scale county mapping project will continue in 1999, as will another reappraisal year. For 1999, we request that the district purchase or lease four high clearance vehicles for its duties. The district is required to inspect all parcels of Kerr County which encompasses 1,100 square miles. All other entities (County, City, UGRA, Schools) furnish their employees with vehicles in connection with their duties. Therefore, the purchase of four vehicles, financed over a five year period, or a lease of four vehicles is requested for 1999. The amount requested is $21,000, this amount is $2,400 more than the 1998 amount of $18,600. This amount includes debt payment, fuel, maintenance, and insurance. 1999 Adopted Budget 8118/98 4040 -Annual Audit: Section 8.063 of the Property Tax Code requires that the district have an annual audit by a Certfied Public Accountant The amount requested for 1998 is $600 less than the amount allotted for 1998, this amount is $3,000. 4045 - Maaainu Exaense: 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 accurate and uniform in properly valuations. The district is proposing $3,500 in supplies and materials, and $3,000 for hardware and software upgrades for 1998. Supplies and materials include paper and plotter supplies. This amount of $8,500 is $3,000 more than 1998. 4055 -Debt Service -Building: KCAD has monthly building payments totaling $23,370 per year. This amount has remained the same for 1999. 4060 -Deed Conies: In order to maintain correct property ownership, KCAD is required to purchase copies of real property deeds and plats from the Kerr County Clerk. Kerr CAD has been maintaining paper copies of these deeds since 1985. For 1999, the district would like to start archiving its deed records to imagery and replacing worn plats, therefore an additional $2,000 is budgeted. The 1999 amount budgeted is $4,000, which is an increase of $2,000 over 1998. 4070 -Leased Eauiament: 1999 Adopted Budget 8/18/98 In 1998, the district leased a copy machine off of the General Services Comndssion state contract for $165 per month. This lease totals $1,980 per year. The district leases a Pitney Bowes Postage Meter. ThiS,lease is $636 per year. KCAD also leases an off-site storage unit This unit is used for record archival purposes. The lease is $156 per year. The amount requested of $3,000 is a slight decrease of $65 over 1998. 4075 - Teleuhone: The 1997 and 1998 budgeted amount for this category was $5,070. In 1997, the district purchased cellular phones for its field personnel. These phones are on a fleet plan of approximately $1,800 per year. The requested amount for 1998 of $6,870 is an $1,800 increase over 1998. 4080 -Utilities: The Districts utility expense covers city water and electricity. The amount requested for 1999 remains the same at $4,500. 4085 -Building and Grounds Maintenance: Building and grounds maintenance includes trash pickup, building cleaning, lawn care, and pest control. The details of this maintenance is as follows: Expense (Month /Year Trash Pickup $41.67 $500.00 Building Cleaning $75.00 $900.00 Outside Maintenance $250.00 $3,000.00 Pest Control $25.00 $300.00 Termite Inspection 100.00 TOTAL $4,800 The 1999 amount requested for Building and Grounds Maintenance of $4,800 is an increase of $740 due to increases in actual costs. 4090 -Consultant - Aapraisal 1999 Adopted Budget 8/18/98 KCAD contracts out the appraisals on utilities, minerals, pipelines, and industrial properties. The 1999 requested amount remains the same of $12,000. 4100 -Consultant -Leval KCAD maintains a contractwith the law office of Peter Low. As of June 1,1998, the district has two pending lawsuits over 1996 values. It is requested that this line item increase $500 to $9,000. 4105 -Liability and Workers Comoensation: 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 1999 proposed amount of $5,000 remains the same as the 1998 budgeted amount. 4110 - Publishiny and Publications: 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 $200.00 Motor Vehicle Listings $460.00 NADA Automobile Guide $ 45.00 Newspaper Notices $450.00 Newspaper Subscription $ 85.00 Journals $ 72.00 Property Tax Code 8 Law Books 2$ 00.00 TOTAL $1,512.00 The 1999 amount requested for this line item Publishing and Publications remains the same as 1998 at $1,550. 4115 -Dues: This line item is devoted to the registration of the district and employees with different state agencies and 1999 Adopted Budget 8/18/98 trade organizations. The registration with the Board of Tax Professional Examiners is required bylaw. 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 gontinuing education credits through this organization. A detailed description of this line item follows: Board of Tax Professional Examiners $ 480.00 Texas Association of Appraisal Districts $ 600.00 Society of Farm Managers and Rural Appraisers $ 520.00 Texas Association of Assessing Officers $ 65.00 Vsa Charge Membership 35.00 TOTAL $1,700.00 The 1999 amount requested for Dues remains the same as 1998 at $1,700. 4120 -Schools and Emalovee Education: 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 appraisers approval, a course or training program conducted or approved by the Board of Tax Professional Examiners. Currently, the district has only three Registered Professional Appraisers (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 five year program 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 on the next page: Emolovee Field Appraiser II Field Appraiser II Office Manager 1999 Adopted Budget Schools Cost III Review, 2 courses $1,200 3 courses $1,200 IV Review, 2 courses $1,200 enaree GIS Mapper Arcview Advanced $750 Senior Appraiser ASFMRA $300 Chief Appraiser ASFMRA $300 Texas Assoc of Appraisal District Conference $1,000 Rural Appraiser Conference 500 TOTAL $6,450 The 1999 amount requested for Schools and Education is $6,450. This amount is $1,750 more than the 1998 amount 4130 -Postage: In years past, the district could notify many of the taxpayers of their valuation by sending a postcard. This postcard was considerably less expensive than a full appraisal notice. Due to legislative changes, the district can no longer notify taxpayers of value changes by postcards, and therefore notice requirements have considerably increased. The amount requested for Postage is $21,000. This amount is a substantial increase of $7,300 due to legislative changes. A detailed list of postage requirements follows: Sale Questionnaires 3,000 $ 960 wlPrepaid Returns Notices of Appraised Value 36,000 $11,520 Ag Reset Letters 300 $ 100 Ag Denial -Certified 100 $ 300 Ag Grant Letters 400 $ 130 Personal Property Renditions 3,000 $ 1,000 ARB Hearing Letters 750 $ 480 ARB Determination -Certified 750 $4,500 Daily Miscellaneous $2.000 TOTAL $21,000 4135 -Printing: This line item includes expenses such as printing of Notices of Appraised Value, Appraisal Cards, Appraisal Rolls and envelopes. This item has a slight increase of $500 from $3,500 to $4,000. 4140 -Office Supplies: 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 1999 of $5,250 is the 1999 Adopted Budget 8/18198 same as 1998. 4145 - Pomiture and Fixtures: New furniture purchases have been kept to a minimum. The amount requested for this line item of $750, is the same as 1998. 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 an name plaques. The line item remains at $200. 4155 - Eauiament Maintenance and Reserve: In 1995, after careful analysis of the districts maintenance agreements and past history 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 $4,500 is $500 more than 1998, and the same as 1997. 4170 -Building Reserve: A building reserve of $3,500 per year was established when KCAD purchased the current building. This fund is reserved and cannot be utilized for any purpose other than replacement or repair to major items regarding our facilities. 1999 Adopted Budget 8/18/98 4180 -Computer Lease -The Software Group: This line item is for the district computer system. This system is the °Irfeblood" of the district Every properly account is recorded, updated, and appraised through this system. A detailed summary of this line item is asfollows: - Annual Payment $16,176 - 48 months Hardwaze Maintenance $ 1,765 System Software Support $ 600 Application Software Support 2S 4.348 TOTAL $42,889 The above basic system was lease/purchased through The Software Group in 1995. The amount requested of $42,889 a substantial increase of $10,848. This increase is due to The Software Group increasing the system software support from $13,500 to $24,348 per year. This increase concerns the district, however the district cannot operate without a computer system or support In 1998, The Software Group sold to Tyler Corporation, a lazge public corporation. The district will begin searching for a more competitive solution, however at this time The Software Group is way beyond its competition in capabilities and dependablities. 4185 - Document Imaaing and Video Capture: 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, protestforms, 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 $14,284 - 48 months IBM Disk Maintenance $ 840 Application Software Support 2 600 TOTAL For Imaging $17,724 The 1998 amount requested for this line item is $17,724. This is an increase of $800, due to The Software Group increasing its software supportfrom $1,800 to $2,600. 1999 Adopted Budget ~~ 8/98 Addendum 1999 Adopted Budget 8/18/98 4180 and 4185 Lona Tenn Breakdown: Line Items 4180 is a 48 month lease purchase that began January 1,1998. 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 Computer Lease tsss tsss 2000 2001 2002 Hardware 516,176 516,176 SO SO 50 Hardware Meint 51,765 51,765 51,765 51,765 51,765 System Support 5600 5600 5600 5600 5600 Software Support 313,500 524,348 524,348 E24,348 524,348 Ynaging and Video: Hardware 514,284 514,284 514,284 SO SO Hardware Maint 5840 5640 5840 5840 5840 Software Support 51,800 52,600 52,600 52,600 52,800 Mnual Cost 548,965 560,613 544,437 530,153 530,153 This breakdown is to illustrate the terms of the lease and purchase of Line Items 4180 and 4185. 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. 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