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.~ rl ~ I ~ .~. ~e { { 4< 1 ~J `r i { 4.~ it if 4.1 I ~J 4', ~ ~~ 4:~ ili I~~ 4'.' ~ ~ J. _~? ~ ~ y {..i'..i 4~ Y~~ E{i 4.! l• .i. 4a T ~ ~~! CM1 t~ t'. IrJ };~
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1- F~ -~ - - 9 ~ . .
COMMISSIONERS' COURT AGENDA REQUEST
PLEASE FURNISH ONE ORIGINAL AND NINE COPIES OF THIS REQUEST AND DOCUMENTS TO BE
REVIEWED BY THE COURT.
MADE BY: Fred Henneke OFFICE: County Jude
MEETING DATE: September 13, 1999 TIME PREFERRED:
SUBJECT: (PLEASE BE SPECIFIC)
Consider and discuss approval of the Kerr Central Appraisal District 2000 Budget.
EXECUTIVE SESSION REQUESTED: (PLEASE STATE REASON)
NAME OF PERSON ADDRESSING THE COURT:
ESTIMATED LENGTH OF PRESENTATION:
IF PERSONNEL MATTER -NAME OF EMPLOYEE:
County Judge
Time for submitting this request for Court to assure that the matter is posted in accordance with Title 5, Chapter
551 and 552, Government Code, is as follows:
Meeting scheduled for Mondays:
THIS REQUEST RECEIVED BY:
THIS REQUEST RECEIVED ON:

All Agenda Requests will be screened by the County Judge's Office to determine if adequate information has been
prepared for the Court's formal consideration and action at time of Court Meetings. Your cooperation will be
appreciated and contribute towards you request being addressed at the earliest opportunity. See Agenda Request Rules
Adopted by Commissioners' Court.
5:00 P.M. previous Tuesday.
Kerr Central Appraisal District
1836 Junction Highway
P.O. Box 1885
Kerrville, Texas 78029-1885
Phone (830) 895-5223
Fax (830) 895-5227
August 18, 1999
Judge Fred Henneke
Kerr County Judge
Kerr County Commisioner's Court
700 Main St
Kerrville, TX 78028
RE: Kerr Central Appraisal District 2000 Budget
The Kerr Central Appraisal District Board of Directors adopted the proposed Kerr
CAD Budget at a meeting on August 11, 1999 without change.
Attached is a copy of the above referenced budget and the preliminary
proportionate allocation of the budget. The total budget amount is $501,849.
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, 2000.
Also included for your information is a copy of the District's 1998 Financial Audit
that was prepared by Pressler, Thompson, and Company.
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
2000 Adopted Budget
Kerr Central Appraisal District
1836 Junction Highway
P.O. Box 1885
Kerrville, TX 78029-1885
(830) 895-5223
David D. Oehler, RPA
Chief Appraiser
Page 2
Expenditures Per Line Item
Line Item
5006 Salaries ........................................................
5010 Employer Portion of Retirement ...................
5012 Employer Portion of Medicare Tax ...............
5015 Employee Medical Insurance .......................
5016 Texas Employment Commission ..................
5030 Appraisal Review Board ...............................
5035 Travel and Mileage ......................................
5040 Annual Audit ................................................
5045 Mapping Expense ........................................
5055 Debt Service -Building ................................
5060 Deed Copies ................................................
5070 Leased Equipment .......................................
5075 Telephone ....................................................
5080 Utilities ........................................................
5085 Grounds and Building Maintenance .............
5090 Consultant -Appraisal .................................,
5100 Consultant -Legal ........................................
5105 Liability/Worker ~ s Compensation ...............
5110 Publishing/Publications ...............................
5136 Professional Dues .......................................
5120 SchoolslEmployee Education .....................
5130 Postage .......................................................
5135 Printing .......................................................
5140 Office Supplies ............................................
5145 Furniture and Fixtures .................................
5150 Board of Directors .......................................
5155 Equipment Maintenance .............................
5170 Building Reserve .........................................
5180 Computer Lease -The Software Group......
5180 Imaging and Video ......................................
TOTAL ...............................................
2000 Discussion
.......... $	247,000.00
.......... $	17,640.00
..........$	3,582.00
.......... $	24,600.00
.......... $	1,500.00
.......... $	10,500.00
.......... $	21,000.00
.......... $	3,000.00
.......... $	4,000.00
.......... $	23,370.00
........... $	4,000.00
........... $	3,000.00
........... $	6,870.00
...........$	4,500.00
........... $	4,900.00
........... $	12,500.00
........... $	9,000.00
........... $	5,000.00
...........$	3,000.00
,..........$	1,700.00
........... $	6,050.00
........... $	19,500.00
......,....$	7,000.00
........... $	5,250.00
..,........$	750.00
........... $	200.00
........... $	4,500.00
...........$	3,500.00
........... $	26,713.00
............~	17.724.00
............................................$ 501,849.00
2000 Adopted Budget $~~ 199
Page 3
Expenditures Per Line Item Comparison
Line Item	2000	1999	Diff
5006 Salaries	$247,000	$233,500	$13,500
5010 Employer Portion of Retirement	$17,640	$16,700	$940
5012 Employer Portion of Medicare Tax	$3,582	$3,400	$182
5015 Employee Medical Insurance	$24,600	$21,500	$3,100
5016 Texas Employment Commission	$1,500	$1,500	$0
5030 Appraisal Review Board	$10,500	$10,500	$0
5035 Travel and Mileage	$21,000	$21,000	$0
5040 Annual Audit	$3,000	$3,000	$0
5045 Mapping Expense	$4,000	$6,500	-$2,500
5055 Debt Service -Building	$23,370	$23,370	$0
5060 Deed Copies	$4,000	$4,000	$0
5070 Leased Equipment	$3,000	$3,000	$0
5075 Telephone	$6,870	$6,870	$0
5080 Utilities	$4,500	$4,500	$0
5085 Grounds and Building Maintenance	$4,900	$4,800	$100
5090 Consultant -Appraisal	$12,500	$12,000	$500
5100 Consultant -Legal	$9,000	$9,000	$0
5105 Liability/Worker's Compensation	$5,000	$5,000	$0
5110 Publishing/Publications	$3,000	$1,550	$1,450
5136 Professional Dues	$1,700	$1,700	$0
5120 Schools/Employee Education	$6,050	$6,450	-$400
5130 Postage	$19,500	$21,000	-$1,500
5135 Printing	$7,000	$4,000	$3,000
5140 Office Supplies	$5,250	$5,250	$0
5145 Furniture and Fixtures	$750	$750	$0
5150 Board of Directors	$200	$200	$0
5155 Equipment Maint. and Reserve	$0	$4,500	-$4,500
5170 Building Reserve	$3,500	$3,500	$0
5180 Computer System	$26,713	$42,889	-$16,176
5180 Document Imaging and Video	$17,724	$17,724	$0
TOTAL	$501,849	$499,653	$2,196
2000 Adopted Budget 8/1199
Page 4
5006-Salaries and Positions:
	1999 Budgeted	2000 Proposed
Chief Appraiser	$41,000	$ 43,250
Senior Appraiser	$29,000	$ 29,500
Office Manager	$27,500	$ 29,000
Field Appraiser IV	$23,500	$ 25,000
Field Appraiser II	$20,000	$ 22,500
Field Appraiser II	$20,000	$ 21,500
Abstractor	$19,500	$ 19,500
GIS Technician	$22,500	$ 25,000
Clerical	$15,250	$16,500
Clerical	15 250	15 250
TOTAL	$233,500	$247,000
The proposed 2000 line item for salaries is an increase of $13,500 or (+5.78) over the 1999 line item. Kerr
CAD has maintained the same number of employees for the preceding 10 years and it is expected that at
least one position will have to be added next year. Kerr CAD lost several employees last year due to not
being competitive in the salary marketplace. Therefore in an effort to keep a trained, knowledgeable staff,
several salary increases are included.
5010 - Employer s Retirement:
Kerr CAD has an independent employee retirement through Plan Data. All employees are required to
participate in this plan. Kerr CAD and the employee each place 7% of the employee's salary into this plan.
Details of this line item are as follows:
Total 2000 Proposed Salaries	$	247,000.00
KCAD Matching Percentage	x	0.07
KCAD Contribution	$	17,290.00
Administration Fee	~	350.00
TOTAL	$	17,640.00
The $17,640 amount is an increase of $940 over the 1999 amount.
5012 - Employer Medicare/Social Security:
Kerr CAD 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.
2000 Adopted Budget 81199
Page 5
Details of this item are as follows:
Total 2000 Proposed Salaries $ 247,000.00
Medicare Rate x 0.0145
TOTAL $ 3,582
This item is a $182 increase over the 1999 amount of $3,400.
5015 -Employee Medical Insurance:
Kerr CAD provides health insurance to its employees through the Texas Association of Counties. These
premiums increased to approximately $205 per month per employee. This is the amount budgeted for
2000.
Details of this expenditure follow:
KCAD Contribution Per Month $205.00
Number of Employees x 10
Total Monthly Contribution $2,050.00
Number of Months x 12
TOTAL $24,600.00
This line item is a $3,100 increase over the 1999 budgeted amount.
5016 -Texas Employment Commission:
Kerr CAD is responsible for the payment of each employee's unemployment tax through the Texas
Workforce 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 employees hired and fired during the
previous year.
Kerr CAD has received a rating and the estimate remains the same as 1999, at $1,500.
5030 -Appraisal Review Board:
Kerr CAD is responsible for the Appraisal Review Board members stipend. This reimbursement covers the
members time, travel, and other related costs to serving on the board. The amount requested remains the
same as the 1999 amount.
2000 Adopted Budget $~> > X99
Reimbursement per Member $2,000.00
Number of Members x 5
TOTAL $10,000.00
Education + 500.00
TOTAL $10,500.00
5035 -Travel and Mileage:
Page 6
Kerr CAD is responsible for and required bylaw to physically inspect all properties located within Kerr
County. In 1999, the district leased vehicles fora 24 month period. This line item covers the vehicle lease
payments, fuel, maintenance and other travel expense. This item remains the same at $21,000.
5040 -Annual Audit:
Section 6.063 of the Property Tax Code requires that the district have an annual audit by a Certified Public
Accountant. This amount remains the same at $3,000.
5045 -Mapping Expense:
The district has made parcel mapping a priority, having mapped the district's roads, abstracts,
subdivisions, school district boundaries, and approximately 65% of the ownership parcels in the county.
This dramatic progress has taken place over the previous 2'/Z years utilizing very conservative
expenditures. The line item is a decrease of $2,500 over the 1999 amount.
The amount requested is $4,000.
5055 -Debt Service - Buildin_g:
KCAD has monthly building payments totaling $23,370 per year. This amount has remained the same for
2000.
5060 -Deed Copies:
To maintain current and correct property ownership records, Kerr CAD is required to purchase copies of
real property deeds from the Kerr County Clerk.
This item remains the same at $4,000.
2000 Adopted Budget 8/11/99
Page 7
5070 -Leased Equipment:
In 1998, the district leased a copy machine from the General Services Commission state contract for $165
per month. This lease totals $1,980 per year.
The district teases 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 is $3,000
5075 -Telephone:
This item includes basic telephone equipment lease and service, long distance service, cellular telephone
service, and Internet subscription.
This item remains the same at $6,870
5080 -Utilities:
The District's utility expense covers city water and electricity. The amount requested for 2000 remains the
same at $4,500.
5085 -Building and Grounds Maintenance:
Building and grounds maintenance includes trash pickup, building cleaning, lawn care, and pest control.
The details of this maintenance follows:
Expense	/Month	/Year
Trash Pickup	$41.67	$500.00
Building Cleaning	$150.00	$1,800.00
Outside Maintenance	$183.00	$2,200.00
Pest Control	$25.00	$300.00
Termite Inspection		100.00
TOTAL		$4,900
This item includes a slight increase of $100 over the 1999 amount.
2000 Adopted Budget 8~1 ~~99
Page 8
5090 -Consultant -Appraisal
Kerr CAD contracts for the appraisals on utilities, minerals, pipelines, and industrial properties to the
industrial appraisal firm, Capitol Appraisal.
The 2000 requested amount remains the same at $12,500
5100 -Consultant -Legal
KCAD maintains a contract with the law office of Peter Low. As of June 28, 1999, the district has two
pending lawsuits over 1996 values.
This line item remains the same at $9,000.
5105 -Liability and Workers Compensation:
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 2000 proposed amount of $5,000 remains the same as the 1999
budgeted amount.
5110 -Publishing and Publications:
This line item includes required newspaper advertisements, property asset listings, and appraisal guides
This line item is a $1,450 increase over the 1999 amount for a total requested of $3,000.
5136 -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. 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
$ 480.00
$ 600.00
$ 520.00
$ 65.00
35.00
$1,700.00
2000 Adopted Budget 8/11199
The 2000 amount requested for Dues remains the same as 1999 at $1,700.
5120 -Schools and Employee Education:
Page 9
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.
This item is a $400 decrease over the 1999 amount, for a total of $6,050.
5130 -Postage:
In 1999, Kerr CAD began using an outside mailing firm to print and mail the required appraisal notices.
This saves the district some postage. This is reflected in the decrease in this item of $1,500 over 1999.
The amount requested is $19,500
5135 - Printin_g:
This line item includes expenses such as printing of Notices of Appraised Value, Appraisal Cards,
Appraisal Rolls and envelopes. This item has an increase of $3,000 over 1999, for a total of $7,000.
5140 -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 2000 of $5,250 is the
same as 1999.
5145 -Furniture and Fixtures:
New furniture purchases have been kept to a minimum. The amount requested for this line item of $750, is
the same as 1999.
5150 - Board of Directors:
This line item is utilized to purchase director manuals 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 and
name plaques.
The line item remains at $200.
2000 Adopted Budget $~~ ~ ~g9
Page 10
5155 - Equipment Mainfenance:
This item includes the maintenance of PC computers, networks, postage and copy machines. For 1999,
Kerr CAD is designating $4,500 of its self-generated income from property record card sales, computer
generated lists, map sales, and bank interest towards this line item. Therefore, $4,500 will be deducted
from the Cash Allocated Budget allocated to the entities. This line item amount remains the same at
$4,500.
5170 -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.
5180(a) -Computer Lease -The Software Group:
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. Along term debt on the computer
equipment will be paid in full 12-31-99, therefore allowing this line item to be reduced by $16,176 over the
1999 amount.
A detailed summary of this line item is as follows:
Hardware Maintenance $ 1,765
System Software Support $ 600
Application Software Support 24 348
TOTAL $26,713
5180(b) - Document lmaginq and Video Capture:
This line item includes document scanning and retrieval hardware, software and support. This item
remains the same at $17,724.
Annual Payment
- 48 months
IBM Disk Maintenance
Application Software Support
$14,284
$ 840
2 600
TOTAL For Imaging
$17,724
2000 Adopted Budget 8111/99
Page 11
Estimated Entity Allocation
2000 Adopted Budget 8/11/99
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KERR CENTRAL APPRAISAL DISTRICT
AUDIT REPORT
DECEMBER 31, 1998
PRESSLER~ THOMPSON AND COMPANY
A PROFESSIONAL CORPORATION
CERTIFIED PUBLIC ACCOUNTANTS
KERRVILLE, TEXAS 78028
KERR CE(YTRAL APPRAISAL DISTRICT
AUDIT REPORT
DECEMBER 3l, 1998
KERB CENTRAL APPRAISAL DISTRICT
TABLE OF CONTENTS
DECEMBER 31, 1998
Independent Auditor's Report
General Purpose financial Statements:
Balance Sheet
Statement of Revenues, Expenditures and Changes in
Fund Balance -General Fund
Statement of Revenues, Expenditures -
Budget and Actual -General Fund
Notes to the Financial Statements
Overall Compliance and Internal Control Section
Independent Auditor's Report on Internal Control Structure
Independent Auditor's Report on Compliance
Schedule of Findings and Questioned Costs
2
4
7
16
18
19
PRESSLER~ rI~iOMPSON AND COMPANY
A PROFESSIONAL CORPORATION
CERTIFIED PUBLIC ACCOUNTANTS
William F. Thompson, C.P.A. 320 SIDNEY BAKER STREET
Ernst H. Druebert, Jr., C.P.A. KERRVILLE, TEXAS 78028 Telephone (830) 257-7241
Jerry N. Oliver, C.P.A. Fax (830) 896-4041
Charles A. Forbes, Jr_, C.P.A.
Douglas H. Sundberg, C.P.A.
INDEPENDENT AUDITOR'S REPORT
Board of Directors
Kerr Central Appraisal District
Kerrville, Texas
We have audited the accompanying general purpose financial statements of the Kerr Central Appraisal
District as of and for the year ended December 31, 1998. These financial statements are the responsibility
of the board's management. Our responsibility is to express an opinion on these financial statements based
on our audit.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally
accepted auditing standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement presentation. We believe that our
audit provides a reasonable basis for our opinion.
Governmental Accounting Standards Board Technical Bulletin 98-I, Disclosures about Year 2000 Issues,
requires disclosure of certain matters regarding the year 2000 issue. Kerr Central Appraisal District has
included such disclosures in Note K. Because of the unprecedented nature of the year 2000 issue, its
effects and the success of related remediation efforts will not be fully determinable until the year 2000 and
thereafter. Accordingly, insufficient audit evidence exists to support Kerr Central Appraisal District
disclosures with respect to the year 2000 issue made in Note K. Further, we do not provide assurance that
Kerr Central Appraisal District is or will be year 2000 ready, that Kerr Central Appraisal District's year
2000 remediation efforts will be successful in whole or in part, or that parties with which Kerr Central
Appraisal District does business will be year 2000 ready.
In our opinion, except for the effect of such adjustments, if any, as might have been determined to be
necessary had we been able to examine evidence regarding year 2000 disclosures, the general purpose
financial statements referred to above present fairly, in all material respects, the financial position of the
Kerr Central Appraisal District as of December 31, 1998 and the results of its operations for the year then
ended in conformity with generally accepted accounting principles.
In accordance with Government Auditing Standards, we have also issued a report dated May l9, 1999, on
our consideration of Kerr Central Appraisal District internal control structure and a report dated May 19,
1999, on its compliance with laws and regulations.
PRESSLER, THOMPSON AND COMPA Y
A PROFESSIONAL CORPORATION
May 19, 1999
KERR CENTRAL APPRAISAL DISTRICT
BALANCE SHEET
December 31, 1998
ALL FUNDS AND ACCOUNTS GROUPS
ASSETS
Cash
Accounts Receivable
Land, Buildings and Improvements
Furniture and Equipment
Amount To Be Provided
Total Assets
LIABILITIES AND FUND EQUITY
Liabilities:
Accounts Payable
Due to Tax Entities
Long Term Debt -Current Portion
Lease Payable -Current Portion
Long Term Debt -
Non-Current
Non-Current Lease
Total Liabilities
Fund Equity:
Investment in General
Fixed Assets
Fund Balances
Undesignated
Designated
Total Fund Equity
Total Liabilities and Fund Equity
GENERAL GENERAL GENERAL
FUND FIXED ASSETS LONG TERM DEBT
$ 128,129
234,145
228,491
214,726
$ 128,129 $ 462,636 $ 214, 726
$ 4,648
21,731
7,874
24, 363
165,274
17,215
26,379 214,726
462,636
88,438
13,312
101,750 462,636
$ 128,129 $ 462.636 $ 214, 726
The notes to the financial statements are an integral part of this statement.
2
TOTALS
MEMORANDUM ONLY)
$ 128,129	$ 107,033
-	1,927
234,145	234,145
228,491	223,181
214,726	246,885
$ 805,491 $ 813,171
$ 4,648	$ 2,268
21,731	15,958
7,874	7,745
24,363	24,219
165,274	172,626
17,215	42,295
241,105	265,111
462,636 457,326
88,438 79,452
564,386 548,060
$ 805,491 $ 813,171
3
KERR CENTRAL APPRAISAL DISTRICT
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
GENERAL FUND
FOR THE YEAR ENDED DECEMBER 31, 1998
	1998	1997
Revenues:		
Appraisal Service	$ 451,035 $	449,260
Interest	4,533	3,780
Tower Lease	2,400	2,400
Other	4,453	4,517
Total Revenues	462,421	459,957
Expenditures:		
Salaries	223,454	199,207
Insurance, Retirement and Taxes	43,268	33,847
Appraisal Review Board	7,650	8,044
Travel and Auto Allowance	12,865	14,041
Audit and Accounting	3,100	3,100
Mapping System	1,259	8,665
Deeds	1,230	1,647
Building Reserve Expense	1,470	1,364
Equipment Lease	1,978	3,694
Telephone and Utilities	10,616	14,336
Consulting and Legal	19,900	16,845
Liability Insurance	3,038	3,779
Publishing	2,697	2,058
Dues	725	748
Schools and Seminars	5,451	5,800
Postage	10,162	4,891
Printing	5,734	3,816
Supplies	8,961	5,799
Capital Expenditures	4,138	19,088
Board Expenses	-	318
Building and Grounds Maintenance	4,437	5,181
Equipment Maintenance	1,888	1,921
TSG Computer Lease and Expense	20,863	20,901
Debt Service Payments	50,748	50,748
Total Expenditures	445,632	429,838
Total Revenues Over (Under) Expenditures	16,789	30,119
Fund Balance -January 1,	90,734	76,573
Refunds Due Entities	(5,773)	(15,958)
Fund Balance -December 31,	$ 101,750 $	90,734
The notes to the financial statements are an integral part of this statement.	
4		
KERR CENTRAL APPRAISAL DISTRICT
STATEMENT OF REVENUES ANO EXPENDITURES
BUDGET AND ACTUAL -GENERAL FUND
FOR THE YEAR ENDED DECEMBER 31, 1998
Revenues:
Appraisal Services $
Interest
Tower Lease
Other
BUDGET
451,035
2,400
VARIANCE-
FAVORABLE
1998 (UNFAVORABLE)
Total Revenues
$ 451,035
4, 533
2,400
4,453
$ -
4, 533
4,453
8,986
453,435 462,421
Expenditures:			
Salaries	225,000	223,454	1,546
Insurance, Retirement and Taxes	39,615	43,268	(3,653)
Appraisal Review Board	7,500	7,650	(150)
Travel and Auto Allowance	18,600	12,865	5,735
Audit and Accounting	3,600	3,100	500
Mapping	3,500	1,259	2,241
Deed Copies	2,000	1,230	770
Building Repairs and Improvements	3,500	1,470	2,030
Equipment Lease	3,065	1,978	1 087
Telephone and Utilities	9,575	10,616	(1,041)
Consulting and Legal	20,500	19,900	600
Liability Insurance	5,000	3,038	1,962
Publishing	1, 550	2,697	(1,147)
Dues	1,700	725	975
Schools and Seminars	4,700	5,451	(751)
Postage	13, 700	10,162	3,538
Printing	3,500	5,734	(2,234)
Supplies	5,250	8,961	(3,711)
Capital Expenditures	750	4,138	(3,388)
Board Expenses	200	-	200
Building and Grounds Maintenance	4,060	4,437	(377)
Equipment Maintenance	4,235	1,888	2,347
TSG Computer Lease and Expense	21,587	20,863	724
Debt Service Payments	50,748	50,748	-
Total Expenditures	453,435	445,632	7,803
Total Revenues Over (Under)			
Expenditures	$ -	16 789 $	16 789
Fund Balance, Beginning of Year 90,734
Refunds Due to Entities (5,773)
Fund Balance, End of Year - $ 101,750
The notes to the financial statements are an integral part of this statement.
5
This page intentionally left blank.
KERR CENTRAL APPRAISAL DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER31, 1998
Note A - Summary of Significant Accounting Policies
The accounting policies of the Kerr Central Appraisal District conform to generally accepted
accounting principles as applicable to governments. The following is a summary of the more
significant policies:
I. Fund Accounting
The accounts of the Kerr Central Appraisal District are organized on the basis of funds or
account groups, each of which is considered to be a separate accounting entity. The operations
of each fund are accounted for by providing a separate set of self-balancing accounts, which are
comprised of each fund's assets, liabilities, fund equity, revenues and expenditures or expenses,
as appropriate. Government resources are allocated to and for individual funds based upon the
purposes for which they are to be spent and the means by which spending activities are
controlled.
All governmental fund types are accounted for on a spending "financial flow" measurement
focus. This means that only current assets and current liabilities are generally included on their
balance sheets. Their reported fund balance (net current assets) is considered a measure of
"available spendable resources". Governmental fund operating statements present increases
(revenues and other financing sources) and decreases (expenditures and other financing uses) in
net current assets. Accordingly, they are said to present a summary of sources and uses of
"available spendable resources" during a period. There was only one governmental fund used
during the current fiscal year as follows:
Govemmental Fund Type -General Fund
The General Fund is the general operating fund of the Kerr Central Appraisal District. [t is used
to account for all financial resources except those required to be accounted for in another fund.
2. General Fixed Asset Group of Accounts
Property, plant and equipment used in governmental fund type operations are accounted for in
the General Fixed Assets Account Group, rather than in governmental funds. No depreciation
has been provided on such property, plant and equipment.
All property, plant and equipment are valued at historical cost or estimated historical cost if
actual historical cost is not available. Donated property, plant and equipment are valued at their
estimated fair value on the date donated.
The account groups are not "funds". They are concerned only with the measurement of
financial position. They are not involved with measurement results of operations.
The Kerr Central Appraisal District has adopted a policy not capitalizing capital expenditures
below $ 100.
3. General Loner Term Debt Group of Accounts
Long term liabilities financed from governmental fund types are accounted for in the General
Long Term Debt Account Group, not in the governmental fund.
7
KERR CENTRAL APPRAISAL DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 1998
(Continued)
4. Basis of Accounting
Basis of accounting refers to when revenues and expenditures or expenses are recognized in the
accounts and reported in the financial statements. Basis of accounting relates to the timing of
the measurements made, regardless of the measurement focus applied.
All governmental funds are accounted for using the modified accrual basis of accounting. Their
revenues are recognized when they become measurable and available as net current assets.
Expenditures are generally recognized under the modified accrual basis of accounting when the
related fund liability is incurred. Exceptions to this general rule include: (I) accumulated
unpaid vacation, sick pay, and (2) principal and interest on general long-term debt which is
recognized when due.
5. Cash_and Investments
Cash and investments are recorded at cost. Currently, the available cash is invested in short
term money market accounts with a local bank issued under FD[C coverage for $100,000.
Excess balances are collateralized with securities by the pledging financial institution in the
Appraisal District's name.
6. Budgets and Budgetary Accounting
The Kerr Central Appraisal District follows these procedures in establishing the budgetary data
reflected in the financial statements:
a. Formal budgetary integration is employed as a management control device
during the year for the general fund.
b. The Kerr Central Appraisal District Board of Directors approves total budget
appropriations only. Any revisions that alter the total appropriations of any fund
must be approved by the Board of Directors. Therefore, the level of budgetary
responsibility is by total appropriations.
c. Unused appropriations for all the above annually budgeted funds lapse at the end
of year and excess budgeted funds must be returned to the taxing entities unless
approved by the taxing authorities supporting the Kerr Central Appraisal District
budget.
d. The budget amounts shown in the financial statements are the final authorized
amounts as revised during the year.
7. Total Columns on Balance Sheet
Total columns on the Balance Sheet are captioned "memorandum only" to indicate that they are
presented only to facilitate financial analysis. Data in these columns does not present financial
position, results of operations, or changes in financial position in conformity with generally
accepted accounting principles. Neither is such data comparable to a consolidation.
KERR CENTRAL APPRAISAL DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 1998
(Continued)
Note B - Capital Exoenditures
Current year additions were for computer equipment.
SUMMARY OF CAPITAL TRANSACTIONS
Beginning Ending
Balance Additions Deletions Balance
Equipment $ 223,181 $ 5,310 $ 0 $ 228,491
Buildings 234,145 234,145
$ 442,288 $ 5,310 $ 0 $ 462,635
Note C - Accounts Payable and Due to Tax Entities
This represents unpaid invoices on services rendered or items purchased which applied to the
fiscal year under audit. Additionally, excess revenue over budgeted expenditures must be
refunded to the taxing entities after considering board designated reserves for building repairs
and improvements. This refund is allocated in the same ratio as the budget for the respective
year. Total payable at year end 1997, $15,958, remained as a payable in 1998 as this amount
was used to reduce the allocations receivable from the taxing entities in 1999. The payable to
tax entities for 1998 is $5,773, resulting in a total payable at the end of 1998 of $21,731.
Due to Tax Entities - 12/31/97 $ 15,958
Excess Revenue Over Expenditures 16,789
Net Unexpended Building Reserve (2,030)
Non Budget Receipts, Interest and Miscellaneous 8,986)
1998 Amount Payable to Entities 5,773
Total Due to Tax Entities - 12/31/98 $ 21,731
Note D - Long Term Debt
Beginning
Balance
Office Building
15 Year Term; 9.0%
$1,947 monthly payment $ (80,371
Principal
New Retirement Ending
Financing Payment Balance
$ $ 7,223 $ 173,148
9
KERB CENTRAL APPRAISAL DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 1998
(Continued)
Note D - Loner Term Debt (Continued)
The estimated annual principal and interest requirements for ~ years to retire general long term
debt recorded as of December 31, 1998 are as follows:
Year Ended			
December 31,	Principal	Interest	Total
1999	$ 7,874	$ 15,492	$ 23,366
2000	8,624	14,742	23,366
200 l	9,446	13,920	23,366
2002	10,346	13,020	23,366
2003	l I ,33 I	12,03	23,366
Balance to			
Maturity	125,527		
	$ 173,148	$ 69,209	$ t 16,830
Note E - Long Term Leases
Lease I
As of December 12, 1995, Kerr Central Appraisal District entered into a deferred payment
obligation with Capital City Leasing, [nc. Austin, Texas, to effectively finance the purchase of a
new appraisal computer system. IBM provides the hardware with software provided by The
Software Group for appraisal services applications.
A down payment of $8,000 was made in December, 199 to be followed by forty-seven (47)
equal payments of $1,181 per month. Total amount of payments to be made equals $6,749
plus $6,758 interest totaling $63,07 if payments continue over the four (4) year term. The
effective interest rate included is 5.30% as of December 3l, 1998. An early purchase option
exists based on a predetermined schedule, with sixty (60) days notice to the Lessor. This
lease/purchase will be fully paid during 1999.
Legally, per the Appraisal District's attorney, the lease is a governmental purpose obligation and
constitutes a legal, valid and binding deferred payment obligation of the Lessee, enforceable in
accordance with its terms and does not constitute a debt of lessee under the laws of the State of
Texas.
Lease II
As of May 23, 1997, Kerr Central Appraisal District entered into a deferred payment obligation
with Capital City Leasing, Inc. Austin, Texas, to effectively finance the purchase of computer
imaging hardware and software.
l0
KERR CENTRAL APPRAISAL DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 1998
(Continued)
Note E - Long Term Leases (Continued)
A down payment of $8,500 was made in May, 1997, to be followed by forty-seven (47) equal
payments of $1,100.49 per month. Total amount of payments to be made equals $60,223, if
payments continue over the four (4) year term. The effective interest rate included is 6.44%.
An early purchase option exists based on a predetermined schedule, with sixty (60) days notice
to the Lessor.
Legally, per the Appraisal District's attorney, the lease is a governmental purpose obligation and
constitutes a legal, valid and binding deferred payment obligation of the Lessee, enforceable in
accordance with its terms and does not constitute a debt of lessee under the laws of the State of
Texas.
A summary of the principal lease payments and payoff balances are as follows:
Pay Off
Payments Balance
Lease I Lease I I Total Lease I [
1999 $ 12,653 $ 11,710 $ 24,363 $ 17,047
2000 12,486 12,486 4,;60
200 l 4,729 4.729
Total $ 12,653 $ 28,925 $ 41,578
Note F - Emaloyee Pension Plan
The Appraisal District has restated their pension plan as a volume submitter money purchase
pension plan and trust established under [RS Code Section 40l(a) administered by Plan Data,
Inc. Beginning January 1, 1991, the Board of Directors amended the plan to provide for pretax
contributions as allowed by IRS Code Section 414(h). Additional changes were made to
eligibility, contributions and vesting rules as follows:
Eligibility -Employees not covered by social security must be immediately eligible to
participate in the plan, having no age or service requirement.
Contributions - Employees not covered by social security must have a combined
contribution rate from both employer and employees of at least 7.0% of the employees
gross wages. Prior to 1990, all employee contributions were made on an "after tax" basis.
Forfeitures -Forfeitures are created when a participant terminates employment before
becoming fully "vested" in the benefit plan. Beginning 1992, the employer portions of non-
vested benefits forfeited will be added to the remaining participants' accounts.
KERR CENTRAL APPRAISAL DISTRICT
NOTES TO TH E FINANCIAL STATEMENTS
DECEMBER31, 1998
(Continued)
Note F - Employee Pension Plan (Continued
Vesting -When an employee receives a right to the employer's provided contributions, he
has earned a "vested" interest in the pension account. Currently, full time employees ears at
percentage increases prorata beginning after two (2) year service up to eleven (I t) y
which time the employee is fully vested. However, under new tax law, parttime, seasonal
and temporary employees must be 100% vested if the Distract does not elect to cover them
under the social security and Medicare system.
The Appraisal District's contribution to the plan, including administration costs, was $16,1 l2 in
1998 and $13,83 I in 1997.
Note G - Fringe Benefit Plan
The Appraisal District has a medical insurance plan with Blue Cro e/m ums, a1eldroximatelys$t172
as a PPO type coverage. The District pays for the employees p PP
per employee, with family coverage available at the employee's cost.
The District's Ian s voluntary andsallofullt me employees part c~pated as of year end 1998 were
$22,506. The p
Note H - Litigation
The appraisal District is the defendant in several lawsuits filed against it due to property
valuations. According to the District's legal counsel, the suits seek to reduce the appraisal
values prepared by the District. The plaintiffs are not seeking monetary damages against the
District except for recovery of attorney's fees if they are successful.
Note I - Fund Balance
In addition to normal operations, the annual budget includes an amount designated for
improvements on direct building expenditures to maintain the value of the real estate. Any
unexpended funds related to building improvements are transferred to the board designated fund
balance at year end. The current year building improvements were less than the $3.00
allocation and increased the building reserve by $2,030.
12
KERB CENTRAL APPRAISAL DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 1998
(Continued)
Note 1 - Fund Balance (Continued)
Board Unreserved Combined
Designated- Fund Fund
Building Balance Balances
Balances - January Ol, 1998 $ 11,282 $ 79,42 $ 90,7;4
1997 -Operations 16,789 16,789
Buildings Reserve Funds
Available 1998 Net 2,030 (2,030)
Refunds Due to Entities (j,773)
Balances -December 3 I, 1998 $ 13,312 $ 88.438 $ 101,70
Note J - Commitments
fn early 1999, the Kerr Central Appraisal District solicited bids for the leasing of four vehicles
to be used by the District's employees in their appraisal duties throughout the county. These
leases are for two year terms and will be accounted for as operating expenses.
Note K - Fiscal Year 2000 [sues
The year 2000 issue is the result of shortcomings in many electronic data processing systems
and other electronic equipment that may adversely affect the Appraisal District's operations as
early as fiscal year 1999.
The Appraisal District in taking inventory of computer systems and other electronic equipment
that may be affected by the year 2000 issue and that are necessary to conducting Appraisal
District operations and has identified such systems as being financial reporting, payroll and the
appraisal/mapping system.
Kerr Central Appraisal District utilizes appraisal/mapping software from The Software Group.
The vendor has indicated they have accessed the software and are ready for the year 2000.
Financial reporting and payroll Functions are performed using QuickBooks 6.0. The District has
plans to upgrade to QuickBooks 99 to ensure compliance with year 2000 issues.
Note L - Reclassification
Certain amounts in the prior year column have been reclassified to be more comparable with the
current year-
l3
This page intentionally left blank.
to
OVERALL COMPLIANCE AND INTERNAL CONTROL SECTION
I~
William F.Thompson, C.P.A.
Ernst H. Druebert, Jr., C.P.A.
Jerry N. Oliver, C.P.A.
Charles A. Forbes, Jr., C.P.A.
Douglas H. Sundberg, C.P.A.
PRESSLERr Z~IOMPSON AND COMPANY
A PROFESSIONAL CORPORATION
CERTIFIED PUBLIC ACCOUNTANTS
320 SIDNEY BAKER STREET
KERRVILLE, TEXAS 78028
P.O. Box 590
Telephone (830) 257-7241
Fax (830) 896-4041
INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL STRUCTURE
BASED ON AN AUDIT OF GENERAL PURPOSE FINANCIAL STATEMENTS
PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Board of Directors
Kerr Central Appraisal District
Kerrville, Texas
We have audited the general purpose financial statements of Kerr Central Appraisal District, as of and for
the year ended December 31, 1998, and have issued our report thereon dated May 19, 1999.
We conducted our audit in accordance with generally accepted auditing standards and Government
Auditing Standards, issued by the Comptroller General of the United States. Those standards require that
we plan and perform the audit to obtain reasonable assurance whether the general purpose financial
statements are free of material misstatement.
The management of Kerr Central Appraisal District is responsible for establishing and maintaining an
internal control structure. (n fulfilling this responsibility, estimates and judgments by management are
required to assess the expected benefits and related costs of internal control structure policies and
procedures. The objectives of an internal control structure are to provide management with reasonable, but
not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and
that transactions are executed in accordance with management's authorization and recorded properly to
permit the preparation of general purpose financial statements in accordance with generally accepted
accounting principles. Because of inherent limitation in any internal control structure, errors or
irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the
structure to future periods is subject to the risk that procedures may become inadequate because of changes
in conditions or that the effectiveness of the design and operation of policies and procedures may
deteriorate.
In planning and performing our audit of the general purpose financial statements of Kerr Central Appraisal
District for the year ended December 31, 1998, we obtained an understanding of the internal control
structure. With respect to the internal control structure, we obtained an understanding of the design of
relevant policies and procedures and whether they have been place in operation, and we assessed control
risk in order to determine our auditing procedures for the purpose of expressing our opinion on the general
purpose financial statements and not to provide an opinion on the internal control structure. Accordingly,
we do not express such an opinion.
Our consideration of the internal control structure would not necessarily disclose all matters in the internal
control structure that might be material weaknesses under standards established by the American institute
of Certified Public Accountants. A material weakness is a condition in which the design or operation of
one or more of the internal control structure elements does not reduce to a relatively low level the risk that
errors and irregularities in amounts that would be material in relation to the general purpose financial
statements being audited may occur and not be detected within a timely period by employees in the normal
course of performing their assigned functions. We noted no matters involving the internal control structure
and its operation that we consider to be material weaknesses as defined above.
16
However, we noted certain matters involving tl~e internal control structure and its operation that we have
reported to the management of Kerr Central Appraisal District in a separate letter dated May 19, 1999.
This report is intended for the information of management and the Board of Directors. However, this
report is a matter of public record and its distribution is not limited.
%~~ ~
PRESSLER, THOMPSON AND COMPA Y
A PROFESSIONAL CORPORATION
May 19, 1999
17
PRESSLER~ TrIOMPSON AND COMPANY
A PROFESSIONAL CORPORATION
CERTIFIED PUBLIC ACCOUNTANTS
William F. Thompson, C.P.A. 320 SIDNEY HAKER STREET
Ernst H. Druebert, Jr., C.P.A. KERRVILLE, TEXAS 78028 P•o• eox s9o
Jerry N. Oliver, C.P.A. Telephone (830) 257-7241
Charles A. Forbes, Jr., C.P.A. Fax (830) 896-4041
Douglas H. Sundberg, C.P.A.
INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE BASED
ON AN AUDIT OF GENERAL PURPOSE FINANCIAL STATEMENTS
PERFORMED [N ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Board of Directors
Kerr Central Appraisal District
Kerrville, Texas
We have audited the general purpose financial statements of Kerr Central Appraisal District, as of and for
the year ended December ; I, 1998, and have issued our report thereon dated May 19, 1999.
We conducted our audit in accordance with generally accepted auditing standards and Government
Auditing Standards, issued by the Comptroller General of the United States. Those standards require that
we plan and perform the audit to obtain reasonable assurance whether the genera! purpose financial
statements are free of material misstatement.
Compliance with laws, regulations, contracts, and grants applicable to the Appraisal District, is the
responsibility of Kerr Central Appraisal District management. As part of obtaining reasonable assurance
about whether the financial statements are free of material misstatement, we performed tests of Kerr
Central Appraisal District compliance with certain provision of laws, regulations, contracts, and grants.
However, the objective of our audit of the general purpose financial statements was not to provide an
opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion.
The results of our tests disclosed no instances of noncompliance that are required to be reported under
Government Auditing Standards.
This report is intended for the information of management and the Board of Directors. However, this
report is a matter of public record and its distribution is not limited.
PRESSLE , THO/~~A~COM~
NY
A PROFESSIONAL CORPORATION
May 19, 1999
18
KERR CENTRAL APPRAISAL DISTRICT
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
DECEMBER 31, 1998
Program/Grant Findin~/Noncompliance Questioned Costs
None
19