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KERR COUNTY COMMISSIONERS COURT
Special Session
Monday, October 3, 2005
2:00 p.m.
Commissioners' Courtroom
Kerr County Courthouse
Kerrville, Texas
FY 2005-2006 Tax Rate
PRESENT: PAT TINLEY, Kerr County Judge
H.A."BUSTER" BALDWIN, Commissioner Pct. 1
WILLIAM "BILL" WILLIAMS, Commissioner Pct. 2
JONATHAN LETZ, Commissioner Pct. 3
DAVE NICHOLSON, Commissioner Pct. 4
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On Monday, October 3, 2005, at 2:00 p.m., a special
meeting of the Kerr County Commissioners Court was held in the
Commissioners' Courtroom, Kerr Comity Courthouse, Kerrville,
Texas, and the following proceedings were had in open court:
P R O C E E D I N G S
JUDGE TINLEY: Okay. Let me call to order
the special Commissioners Court meeting scheduled for this
date and time, Monday, October the 3rd, 2005, at 2 p.m. It
is past that time now. The only agenda item we have before
us this afternoon is to consider, discuss, and adopt a
proposed Fiscal Year 2005-2006 tax rate for Kerr County. We
made an effort at this last Friday, only to fall short
because the debt service portion was not broken out. And I
assume every member of the Court has before it a --
actually, it's a two-stage breakout of that debt service,
and the Auditor and the Tax Assessor, I think, collaborated
on doing this, and I'm going to leave it to whichever one of
them desires to give us an explanation. I see the Tax
Assessor looking to the Auditor, so I think that's... Walk
us through this thing, would you please?
MR. TOMLINSON: We'll try. In trying to
determine this rate, I -- I came to the conclusion that you
had to -- that you had to make some assumptions, because
there's not a clear-cut formula or any guideline that you
could use to arrive at this. As a matter of fact, I -- one

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of these scenarios I got from Bill Orr, who is the financial
they -- the school district's been doing this for a long
time, and I said -- well, I asked him the question, I said,
"Does the Comptroller have any guidelines for this issue?"
And he said that -- that they didn't, because in most taxing
authorities,	the -	- the	ratio	of non --	of exempt	properties
to the total	levy	is so	small	that it's	immaterial	in most
taxing -- taxing districts. So, the Comptroller's office
does not have a guideline for this issue.
Saying that, I did two -- two scenarios. The
the total proposed tax collection. For -- for our budget,
we budgeted to collect 9,598,501. Of that, we need
1,189,099 for debt service, so I calculated the percentage
of each one of those to the total. So, the calculated -- as
it turns out, the debt service requires 12.38 percent of
the -- of the total collection. So, I applied those
percent -- those ratios to the total proposed tax rate of
.3587, and doing that it way, I came up with the debt
service rate of .094937. Now, the -- the other way is, I
made the -- what I -- I made the assumption that -- that
the --	that the frozen levy, or	the	funds	we get from	the
frozen	properties, those funding	to	each	-- to the M &	0
tax fund and the I & S tax fund on a percentage basis.
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2;
In other words, what I did, I got the total
tax levy of the unfrozen properties, which is 7,372,004.
Now, the levy that we receive from the frozen properties is
2,226,497. So, then I -- that equals the 9,598,501, which
is the same number as the one above. The percentage of --
of the unfrozen properties to the total levy was .768. The
percentage of the frozen properties was .2319. So, then
what I did, I -- I applied those percentages to the debt
service of 1,189,099, so in that calculation I'm assuming
that 275,826 of the un -- of the frozen levy goes to debt
service. The remaining part, the 913,273, is -- comes from
the unfrozen levy. So, then I calculated a rate on the 2 --
on the 275,000 -- I mean, I'm sorry, on the 913,000, and I
did that by -- by dividing that number by the assessed value
of the unfrozen properties. Well, the unfrozen properties
are $2,150,000,000, so you divide that number into the debt
retired by the unfrozen properties of 913,273, and divide
that by a hundred, you get .0425.
Now, last year the debt retirement levy was
.0417, so, I mean, it -- it did increase from the .0417 to
.0425. And that's -- to me, that's reasonable, because
we're working with a smaller number. We're working with a
levy that -- or the assessed value of only the -- the
nonexempt properties. Now, that's the assumption I made.
You can make any assumption you want to. I mean, you can
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assume that -- that the exempt properties pay none of the --
of the debt retirement. I mean, there's a range from --
from zero to 100. I mean, if you assume that -- that all
the -- that the debt service is paid by exempt properties,
then your tax rate will be zero, so I think it's more
logical to assume that the ratio of -- of the assessed
values of each type property get applied to -- to the debt
retirement.
COMMISSIONER LETZ: I agree with your
assumption, but I'm not sure I -- is it -- is it Part A or
Part B that does -- that does that assumption? I mean, they
both seem --
MR. TOMLINSON: It's Part B.
COMMISSIONER LETZ: Part B.
MR. TOMLINSON: The second port.
COMMISSIONER LETZ: It seems like they're
both in proportion.
MR. TOMLINSON: Well, they don't -- the first
one doesn't take into account that assumption. Truly
doesn't.
DODGE TINLEY: For example, the 2005
certificates of obligation is part of the debt structure.
MR. TOMLINSON: Right.
DODGE TINLEY: However, none of that is
allocable to the 55 or disabled.
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MR. TOMLINSON: That's right.
JUDGE TINLEY: Because that came into being
subsequent to the taxes on those properties being frozen.
MR. TOMLINSON: That's correct.
JUDGE TINLEY: So, on an ongoing basis, that
portion will be inapplicable to the over-65 and disabled.
MR. TOMLINSON: That's right. If -- if
you -- I mean, it's possible with -- with this ratio, for --
for -- I guess it's possible, or probable that if there's --
if there's a bond election, like for a new jail or
something, there -- it's possible that the exempt property
owners could pass a bond issue that they would never have to
make a payment on it.
COMMISSIONER LETZ: In fact, really, I
guess --
MR. TOMLINSON: Because --
COMMISSIONER LETZ: -- they can't make a
payment on it.
MR. TOMLINSON: Because the theory on the
freeze is that you can't raise their taxes. I mean, you
can't get any new money from those properties. So -- so, in
the future, any new money -- any bond money will have to be
paid for by the -- by the nonexempt properties.
COMMISSIONER LETZ: So, tell Rusty he's not
getting a new jail.
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COMMISSIONER WILLIAMS: Tommy, we show the
assessed value of the unfrozen property. Why do we not show
the assessed value of the frozen property?
MR. TOMLINSON: I just think that it's
immaterial, because -- because this -- this rate of .7587 --
COMMISSIONER WILLIAMS: Mm-hmm.
MR. TOMLINSON: -- only applies to the
nonexempt property. You know, rate and value has nothing to
do with -- with the property -- with the exempt property. I
mean, if John Doe pays $1,500 in property taxes in '09, I
mean, the rate could go to a dollar and his values could
triple, and he still pays $1,500. So, the -- the way to get
to how much money we qet from exempt properties has nothing
to do with the rate.
JUDGE TINLEY: Do you have the Road and
Bridge portion there with you? We're going to need that.
MR. TOMLINSON: It's the same. It's the
0309.
JUDGE TINLEY: Do you have it with you?
That's what I need.
COMMISSIONER LETZ: We don't have it with us.
MR. TOMLINSON: No, I didn't -- I didn't
bring that. I didn't bring that part with me.
JUDGE TINLEY: Okay. Well, let me go find
what I need, then. That's going to need to be part of the
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motion.
(Judge Tinley left the courtroom.)
MR. TOMLINSON: This is really a convoluted
issue in trying to determine this rate, and you just have --
I mean, you have to make some assumptions. And, I mean, I
can't stand here and say if it's right or wrong, the rate.
COMMISSIONER LETZ: On the -- on the tax
statements for the frozen properties, how is that -- and
I'm --
MR. TOMLINSON: I can't answer that.
COMMISSIONER LETZ: Paula?
MS. RECTOR: I'm sorry?
COMMISSIONER LETZ: I want you to listen to
my question. You might not know or you might know. The tax
statements, when they get ready to go out, on the frozen
property, what's the rate listed going to be?
MS. RECTOR: There's not going to be a rate
listed on the frozen property. It's just going to be a
combined rate, the county rate and the lateral road rate.
It doesn't have a breakout.
(Judge Tinley returned to the courtroom.)
COMMISSIONER LETZ: So, it will just say
here's the assessed value, and here's how much you pay?
MS. RECTOR: Here's the rate, times the total
rate to give you the tar. amount. It doesn't differentiate
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between M & 0 and I & S.
COMMISSIONER LETZ: Right. But just -- does
it have a rate on it at all?
MS. RECTOR: A total rate.
COMMISSIONER LETZ: How can it -- and the
rate's going to --
MS. RECTOR: It will be the .3587, which will
be the total county rate.
COMMISSIONER LETZ: Yeah, but it can't be
that, because if their values have been adjusted this year,
they went up or down or something has happened to the frozen
-- their values, the values weren't frozen; it's the tax
that was frozen. So, we know what the tax is going to be.
MS. RECTOR: Right.
COMMISSIONER LETZ: But we don't know what
the rate is.
MS. RECTOR: Well, no, no, no, no, no. The
rate's going to remain the same. The tax amount is going to
be their frozen amount.
COMMISSIONER LETZ: So the values aren't
changing?
MS. RECTOR: Well, the value can change.
COMMISSIONER LETZ: But, I mean, I'm just
saying if you have a value and you have a rate, you should
be able to multiply the two together and get a tax. That
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isn't going to work for the frozen properties any more?
MS. RECTOR: No. No, because it's going to
show the freeze amount on the statement.
COMMISSIONER LETZ: So it will just --
COMMISSIONER WILLIAMS: Dollars and cents.
COMMISSIONER LETZ: -- be a percent --
COMMISSIONER WILLIAMS: No, sir, not percent.
MS. RECTOR: Yes, dollars and cents.
COMMISSIONER LETZ: Seems to me it's going to
be confusing if the rate is shown on the statements.
MS. RECTOR: Well, no, because Divide and
Hunt that I collect for, there's frozen properties out there
too.
COMMISSIONER LETZ: So they can't -- okay.
You can put on it there, and it just doesn't mean anything.
MR. TOMLINSON: That's the reason it's not on
here.
COMMISSIONER LETZ: Okay.
COMMISSIONER WILLIAMS: Okay.
MR. TOMLINSON: Anybody want to shoot holes
in this? I mean, just get with us.
COMMISSIONER WILLIAMS: I don't have a better
theory.
COMMISSIONER NICHOLSON: Tommy, this bottom
line number, debt tax .0425, what was that for last year?
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MR. TOMLINSON: It was .0417.
COMMISSIONER LETZ: Okay. I make a motion to
set the Kerr County tax rates for 2005-2005 year as follow:
M & O rate will be .3162, the debt rate .0425, and the Road
and Bridge .0309.
COMMISSIONER WILLIAMS: Wait a minute.
What's the M & 0?
COMMISSIONER LETZ: M & 0 is .3162.
JUDGE TINLEY: Non-debt.
COMMISSIONER WILLIAMS: Where are you getting
that?
COMMISSIONER LETZ: Off the Judge's sheet.
JUDGE TINLEY: You got to back out the .0925
out of this .3587.
COMMISSIONER WILLIAMS: Okay.
COMMISSIONER LETZ: If somebody has a
calculator, they can add these up.
JUDGE TINLEY: I just did.
COMMISSIONER LETZ: Okay. M & 0 is .3162,
the debt rate is .0425, and the Road and Bridge is .0309.
And that's a total -- what's the total rate? Yeah, for a
total tax rate of .3896.
MR. TOMLINSON: Right.
MS. RECTOR: Right.
JUDGE TINLEY: And your motion is you move to
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adopt those	rates?	
	COMMISSIONER	LETZ: Yes, sir.
	JUDGE TINLEY:	Okay.
	COMMISSIONER	BALDWIN: Second.
	JUDGE TINLEY:	We have a motion and a second
to adopt the	Y.err County tax	rates for Fiscal 'O5-'06. Any
question or	discussion? All	in favor of the motion, signify
by raising y	our right hand.	
	(Commissioner	s Baldwin, Williams, and Letz
	voted in fav	or of the motion.)
	JUDGE TINLEY:	All opposed, same sign.
	(Commissioner	Nicholson voted against the
	motion.)	
	JUDGE TINLEY:	The motion does carry.
	COMMISSIONER	BALDWIN: Judge, is there any
good reason	that we need to	rescind the court order from
last week?		
JUDGE TINLEY: Excellent point, Commissioner.
I'm glad you brought that up.
COMMISSIONER BALDWIN: At some point in our
lives.
COMMISSIONER LETZ: I think we should do it,
but I'm not sure we can do it under today's agenda item. I
think we can have it on our nest agenda to be -- to rescind
it. I agree with that.
JUDGE TINLEY: Okay. Any further business,
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gentlemen? We'll stand adjourned.
(Commissioners Court adjourned at 2:20 p.m.)
STATE OF TEXAS
COONTY OF KERR
The above and foregoing is a true and complete
transcription of my stenotype notes taken in my capacity as
County Clerk of the Commissioners Court of Kerr County,
Texas, at the time and place heretofore set forth.
DATED at Kerrville, Texas, this 5th day of October,
2005.
JANNETT PIEP~E~R~,~/K~err County Clerk
Kathy B ik, Deputy County Clerk
Certified Shorthand Reporter
in-_-us
ORDER NO. 29415
ADOPT KERB COUNTY TAX RATES FOR FY 2005-2006
Came to be heard this the 3rd day of October, 2005, with a motion made by
Commissioner Letz, seconded by Commissioner Baldwin. The Court
approved by vote of 3-1-0 to:
Adopt the Kerr County Tax Rates for FY 2005-2006 as follows:
Maintenance and Operations $.3162
Debt Service Rate $.0425
Road and Bridge $.0309
for a total tax rate of $.3896.