6c~
T WORKSHOP AGEND ~~
COMMISSIONERS' COUR
MONDAY, JUNE 25, 2001 AT 2:00 P.M.
COUNTY COMMISSIONERS COURTROOM
KERB COUNTY COURTHOUSE
KERRVILLE, TEXAS 78028
THIS NOTICE IS POSTED PURSUANT TO THE TEXAS OPEN MEETINGS
ACT. (TITLE 5, CHAPTER 551, GOVERNMENT CODE AND TITLE 5,
CHAPTER 552, GOVERNMENT CODE.)
This Commissioners' Court will hold a workshop meeting at 2:00
P.M., Monday, June 25, 2001, at the Kerr County Courthouse in the
Commissioners' Courtroom.
• Call to Order
Workshop to discuss incentives for water conservation programs including establishing
a Kerr County Rainwater Collection Incentive Program that would provide a property
tax exception for cost of purchase and installation of rainwater harvesting equipment;
in conjunction, establish a Ken County Linked Deposit Ptogram, as added incentive.
(Commissioner Pct. #2/Sandy and Raul Pena, Representatives from Headwaters
Underground Water Conservation District/CTpper Guadalupe River Authority/Kerr
Fentral Appraisal District)
~"~~ ~~-33f1h-
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COMMISSIONERS' COURT AGENDA REQUEST
PLEASE FURNISH ONE ORIGINAL AND NINE COPIES OF THIS REQUEST
AND DOCUMENTS TO BE REVIEWED BY THE COURT.
MADE BY: William H. Williams OFFICE: Commissioner. Pct. 2
MEETING DATE: June 25, 2001 TIME PREFERRED: 2 p.m.
SUBJECT: (Please be specific) (Workshop). Consider and discuss establishing a Kerr County
Rainwater Collection Incentive Program that would provide a property tax exception for cost of
purchase and installation of rainwater harvesting equipment; in conjunction, establish a Kerr
County Linked Deposit Program, as added incentive.
EXECUTIVE SESSION REQUESTED: (PLEASE STATE REASON)
NAME OF PERSON(S) ADDRESSING THE COURT: Bill Williams, Commissioner, Precinct
2, Sandy and Raul Pena, representatives from Headwaters Undergound Water Conservation
District, Upper Guadalupe River Authority, and Kerr Central Appraisal District.
ESTIMATED LENGTH OF PRESENTATION: 1 hour.
IF PERSONNEL MATTER-NAME OF EMPLOYEE:
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: 5:00 P.M. previous Tuesday
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 is appreciated and contributes toward your request being addressed
at the earliest opportunity. See Agenda Request Rule adopted by Commissioners Court.
'~ KERR COUNTY
RAINWATER HARVESTING PROGRAM BENEFITS
AND QUALIFICATION CRITERIA
PROGRAM HIGHLIGHTS
• Up to One Hundred Dollar ($100) fee reimbursement for new
development permitted in Kerr County through UGRA and/or
HUWCD.
• Property tax reduction: Taxable value reduced by the rainwater
collection system and construction costs. (To be established by Kerr
Central Appraisal District).
BENEFITS
• Free high-quality water for your use,
• Reduces groundwater demands,
• Saves costs for water, electricity, water softener expenses
• Reduces salt discharges into soil
,.., • Limits runoff while reducing storm water pollution
• Fire protection
• Peace of mind
QUALIFICATION CRITERIA
• Kerr County Application approval (through either UGRA or
HUWCD
• Minimum storage capacity: 2,500 gallons
• Annual application and approval for tax exemption (which is
required by state law) to be submitted to KCAD
• Sunlight restrictive design to help prevent algae growth
• Insect-proofing required
PROPOSED PROGRAM ENHANCEMENTS
• Seek amendment of Senate Bill One to expand water
conservation initiatives by exempting from sales tax purchase
of rainwater collection systems and/or installed products, if not
accomplished in current session of state le’islature).
• Work to establish a Water Pollution Control Loan Fund (Linked
'-' Deposit Program). This could allow a lower interest rate
(usually 2% below market) for loans financing rainwater
collection systems.
Rainwater Collection Incentive Program "Typical Savings"
For a new system valued at $10,000.
1. Pernut fee rebates (up to) 100.
2. $10,000 x $ /evaluation ????
3. Savings from "Linked Deposit Program"
a. 2% interest reduction on $10,000
five year note 565.
Note: An unsuccessful attempt was made during the recently-
concluded Texas legislative session to exempt from state and local
sales tax the cost of a Rainwater Harvesting System. Counties that
adopt Rainwater Harvesting Programs should consider seeking a
sales tax exemption for this equipment from the next legislature.
"-" Proposal for Asset Evaluation of Rain Water Collection Systems
Based on the following premises:
1. The value of the system is not the sum of its parts, but the value of the
product, which is water.
2. Any piece of property with an available water supply is worth more because
of that water supply.
3. A filtrated water supply for potable water is worth more than an unfiltered
irrigation supply.
4. A minimum base should be set on qualifying system based on capacity due to
the base cost of administering the tax credit, and the type of installations you
wish to encourage.
5. The basic valuation system should be simple to calculate and similar to ($??)
per foot for construction, or $XX.XX dollars per foot of running fence.
Based on the above premises the following is suggested:
1. Unfiltered water catchment system over 2,500 gallon capacity to be valued at
$1.50 per gallon of storage. INote: check with aooraisal district to
determine suggested amounts for irri’ation-only systems, and notable
water svstemsl. Some have used $3000 to $5000 for irrigation-only
,r- systems, aad $20.000-25,000 for notable water systems, deaending on the
comolexttvl.
2. Figures for asset evaluation of filtered water catchment system over 2,500
gallon capacity, qualifying as potable water supply by inspection must also be
established.
To continue complete development of information, the following is suggested:
• Review materials that may be available from Kerr Central
Appraisal District.
• Review preliminary Sgures with homeowners who have
installed systems in Kerr County (or neighboring counties) and
receive feedback on value figures.
• Assess Kerr Central AppraisalDistrict's method of assigning
asset values to producing wells in our area.
• Calculate "Payback" on investment in system based oa current
and projected water rates. Example: Aquasouree water rates
for 15,000 ga~ons of water are $ . or
cents per gallon.
~' 'Figures also based on estimates of installed price, i.e., 3,000 gallon system for irrigation
purposes might be assessed at $4,500 of added value to a property.
KERB COUNTY
Application for Rainwater Collection System
Incentive Program
Site Address:
Legal Property Description: Subdivision
Lot Block
Daytime telephone
Construction start date
Estimated completion date:
Square footage of collection area:
Total system storage capacity: gallons
Planned use: Potable_Nnn-potable
Distribution method: Gravity flow- Pumped
Disinfection: Yes No Method
Do you authorize release of your address and system capacity for Fire
Department mapping and emergency use? Yes No
Additional Application Requirements:
• Project summary
• Site plan with detailed system design
• Detailed cost estimate $_ , (list capital outlays), or
• Firm project bid: $
Completion Information
Date of completion:
Completion Verification: Requires signature of County or Central Appraisal
District Official.
"'' KERR COUNTY
Linked deposit program
For Rainwater Collection S sY terns
What is a Linked Deposit?
The Linked Deposit program is a mechanism to provide financial incentives for any
particular goal or purpose, in this case the financing ofrainwater collection systems.
Instead of borrowing duectly from a county fund, a loan is made to the applicant by a
local lending institution. The below-mazket rate of the loan is supported by a certificate
of deposit, provided in this case by the county. The certificate of deposit does not
guarantee or secure the loan; it does however reduce the interest rate of the loan.
Linked Deposits have been used by a number of agencies to promote everything from job
creation, small business, agriculture diversification, forestry and land management best
practices and student loans.
FLOW CHART FOR AWARDING DEPOSTI'S
-- 1. A homeowner applies for a loan from one of the local azea lenders participating in
the Kerr County Linked Deposit Program.
2. The local lending agency evaluates the credit-worthiness of the homeowner using
its own criteria. If these criteria aze met, the local lender then enters into a loan
agreement with the homeowner.
3. The local lender sends aone-page application form, which identifies the
homeowner and terms of the loan to the county. Upon approval, the county
deposits a certificate of deposit with the local tender, funds equal to the face value
of the loan to the homeowner. The term of the deposit is equal to the term of the
lender's loan with the homeowner.
4. The interest rate on the certificate of deposit is discounted below the lender's
normal cost of funds, as determined by a comparison to the interest rate of U. S.
Treasury notes and bonds.
5. The interest rate of the lender's loan to the homeowner is reduced by the same
amount as the discount the lender received from the Kerr County LDP.
ADVANTAGES OF THE PROGRAM
1. The Linked Deposit Program provides an economic incentive for homeowners to
conserve water resources by installing rainwater collection systems
2. Iomeowners would work with local lenders and not a county department.
3. The Linked Deposit is not a security for the homeowner's loan; therefore if there
~.. is defauh, the county will not incur a loss.
''~ 4. Participating lenders have the existing structure and experience to make and
administer the loans. If this were not present, there would be an administrative
expense on the part of the county to administer the loans.
5. Participating lenders earn the same amount of profit as they normally would on
their other loans. In addition, the lenders that participate can offer this as an
additional service to their established preferred customers.
6. The Ken County LDP Certificate of Deposit would be insured by the FDIC, and
therefore secure.
7. The wire transfer of funds from the Ken County LDP to the pazticipating lender
would normally occur 1 to 2 days after the request is received. There is very
little delay in the awazd of funds from the lender to the homeowner.
SUMMARY
In this program, homeowners obtain loans from locai lenders for below market rate to
install rainwater collection systems, saving water resources for the community. Local
lenders earn the same amount of profit as they normally would from any of their other
loans. The county uses grant funds instead oftax revenues and does not make or
administer the loans. Total grant funds increase slowly over time because they earn a
minimal interest rate, while they aze linked to the homeowners loans.
^ This program has proven successful in many states for a vaziety of purposes. The State
of Texas has had a Linked Deposit program in the Texas Department of Agriculture since
the 1980's. A Linked Deposit program can be used to provide financial incentive for any
particular goal or purpose which the county deems beneficial to the larger community.
LINKED DEPOSIT
PROGRAM
Resident
Resident wants to install
rainwater collection
system on their property
Resident obtains project
approval from local
lender, up to $20,000.
Then files 1 page
application with Kerr
County for participation
in Linked Deposit
Program
Resident receives low
interest loan from local
lender (3 to 4 percent
below current market
care).
Local Lender
Any local lender insured
by FDIC that desires to
participate in Rainwater
Harvesting Equipment
loans.
Local lender makes loan
to property owner for cost
of system up to $20,000.
Local lender reduces
interest rate by 3 to 4
percent below market rate
to property owner for
Rainwater Harvesting
System
Local lender offsets
reduced rate to customer
through County's CD of
an amount up to $20,000.
Kerr County
Kerr County establishes
Linked Deposit Program
for Rainwater Harvesting
Program participants at
local lending
insitution(s).
Kerr County receives I
page application from
property owner who
desires to participate in
program.
Upon notification from
bank of approval, Ken
County places CD in
lending institution (up to
$20,000) and accepts a
lower interest rate as an
offset to interest break
given property owner.
Kea County's fund
balance continues to grow
through receipt of
minimum interest on
CD's.
Kea County does not lose
money, and CD is NOT
considered security for
Rainwater Harvesting
equipment loan
June 4, 2001
Mr. Jerry Aherns, President
Upper Guadalupe River Authority
125 Lehman Drive, Suite 100
Kerrville, Texas 78028
Deaz Jerry:
The "Rainwater Harvesting" proposal I introduced at the May 29 Commissioners
Court will be discussed at a workshop meeting to be conducted June 25, 2001, at 2:00
p.m
The proposed initiative would provide for fee reimbursement of up to $100, and
rewazd property owners with an ad valorem tax exclusion for the value of the purchase
and installation costs associated with installation of a rainwater collection system of
2,500 gallons or greater. A copy of the program highlights aze attached hereto for your
information and study. This proposal is modeled after the one established by Hays
County, and reviewed by staff and a board member prior to presentation to
Commissioners Court.
It would be beneficial to the court's discussion if you could provide input on this
proposal from the perspective of UGRA.
By copy of this letter, I am also extending an invitation to General Manager Jim
Brown to attend and participate.
I look forwazd toseeing you or other members of your board on June 25 at 2 p.m
in Commissioners Courtroom.
Sincerely,
Bill Williams,
Commissioner, Precinct 2
June 4, 2001
Mr. P. H. Coates IV, Chief Appraiser
Kerr Central Appraisal District
P. O. Box 294387
Kerrville, Texas 78029
Deaz Mr Coates:
The "Rainwater Harvesting" proposal I introduced at the May 29 Commissioners
Court will be discussed at a workshop meeting to be conducted June 25, 2001, at 2:00
p.m.
The proposed initiative would provide for fee reimbursement of up to $100, and
rewazd property owners with an ad valorem tax exclusion for the value of the purchase
and installation costs associated with installation of a rainwater collection system of
2,500 gallons or greater. A copy of the program highlights aze attached hereto for your
information and study. This proposal is modeled after the one established by Hays
County, and was reviewed by you prior to presentation to Commissioners Court.
It would be beneficial to the court's discussion if you could provide input on this
proposal from the perspective of KCAD, inasmuch as a question azose on May 29 as to
the procedure(s) used by KCAD in determining value of additions to property.
I look forward to seeing you on June 25 at 2 p.m. in Commissioners Courtroom.
Sincerely,
Bill Willian~s,
Commissioner, Precinct 2