ORDER NO. 29432 NOMINATE FIVE CANDIDATES FOR SUBMISSION TO KERB CENTRAL APPRAISAL DISTRICT FOR BOARD MEMBER OF KERB CENTRAL APPRAISAL DISTRICT Came to be heard this the 11th day of October, 2005, with a motion made by Commissioner Letz, seconded by Commissioner Williams. The Court unanimously approved by vote of 4-0-0 to: Nominate Mr. Charles Lewis and cast our 888 votes for Kerr County for the election of Mr. Lewis to the Board of Directors of the Kerr Central Appraisal District. a9y3~ ~,aa COMMISSIONERS' COURT AGENDA REOUEST PLEASE FURNISH ONE ORIGINAL AND TEN COPIES OF THIS MADE BY: Pat Tinley MEETING DATE: October 11, 2005 OFFICE: County TIME PREFERRED: SUBJECT: Consider, discuss and take appropriate action to nominate up to five candidates for submission to Kers Central Appraisal District for Board Member of Kerr Central Appraisal District. EXECUTIVE SESSION REQUESTED: (PLEASE STATE REASON) NAME OF PERSON ADDRESSING THE COURT: County Judge ESTIMATED LENGTH OF PRESENTATION: 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: THIS REQUEST RECEIVED BY: THIS REQUEST RECEIVED ON: 5:00 P.M. previous Tuesday. 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 towazds you request being addressed at the earliest opportunity. See Agenda Request Rules Adopted by Commissioners' Court. KERR CENTRAL APPRAISAL DISTRICT P. O BOX 294387 / 1836 JUNCTION HIGHWAY KERRVILLE, TEXAS 78029-4387 Kerr County Judge Pat Tinley 700 Main Street Kemille, TX 78028 Dear Judge Tinley: The time to nominate and elect Appraisal District Board of Directors members for the 2006 and 2007 term is at hand. 1. Before October 1, 2005 the chief appraiser must notify each voting taxing unit of the number of votes it may cast. Each voting unit may nominate one candidate for each position to be filled. There are five positions to be filled for the upcoming term. Your entity may nominate from one to five candidates. 2. The presiding officer of your taxing unit submits the names of the nominees by written resolution to Y7e chief appraiser before October 15, 2005. The presiding officer should include the addresses of the nominees so that the chief appraiser can notify the winners. The chief appraiser has neither the authority nor the duty of investigating or judging the qualifications of the nominees. 3. Before October 30, 2005 the chief appraiser must prepare a ballot listing the nominees alphabetically by last name. The chief Appraiser must deliver a copy of this ballot to the presiding officer of the governing body of each voting unit. 4. Each voting unit must cast its vote by written resolution and submit it to the chief appraiser before November 15, 2005. The unit may cast all its votes for one candidate or may distribute the votes among any number of candidates. Votes must be cast for nominees on the ballot. There is no provision forwrite-in candidates. 5. The chief appraiser must count the votes and declare the candidates who receive the largest vote totals before December 1, 2005. Each voting entity's number of votes is included with this letter. Please refer to the number of votes your entity is allotted when cesting votes for your candidate or candidates. For clarity I have also included copies of Elistibility Requirements and the Selection of Directors from the Appraisal District Director's Manual published by the Texas Comptroller of Public Accounts. Please fell free to centact me 'rf you have any questions about the selection process for appraisal district board of directors. P. H. "Fourth° Coates, IV Chief Appraiser 830-89$-¢223 FAX 830-895-5227 Web Mite wvvw.kerrcad.org Kerr Central Appraisal District 2006 - 2007 Entity Vote For Board of Directors Entity City of Ingram City of Kerrville Kerr County Center Point I.S.D Divide I.S.D. Hunt I.S.D. Ingram I.S.D. Kerrville I.S.D. TOTALS 2004 Levy % of Total Levy # Votes $ 160,427.15 0.003259519 16 $ 6,808,475.81 0.138332926 692 $ 8,740,577.31 0.177588885 888 $ 1,842,003.00 0.037425361 187 $ 386, 554.88 0.007853926 39 $ 2,674,776.35 0.054345444 272 $ 4,137,089.00 0.08405635 420 $ 24,468,139.00 0.497137589 2,486 $ 49,218,042.50 1 5,000 Eligibility Requirements I. Eligibility Requirements o be eligible to serve on the board, a person must T have resided in the appraisal district for at least two years immediately preceding the date of taking office. Persons who meet the basic residence test could still be disqualified from serving.These reasons for disqualifica- tion ensure directors are not exposed to conflicts of inter est. An employee of a taxing unit that participates in the appraisal district may not serve. However, an elected offi- cial or member of the governing body of a participating taxing unit may serve. Selection Process Voting taxing units select the appraisal district direc- tors. Voting taxing units are the county, school districts, cities and certain conservation and reclamation districts. Appendix A explains the selection of directors. The Tax Code provides that the county tax assessor- collector (TAC) serves on the appraisal district board of directors. The countyTAC automatically will serve as a non voting district director, if the county TAC is not appointed to the board of directors under the regular process. If a tax- ingunit, such as the county commissioner's court, appoints the county TAC to the appraisal district board, then the county TAC serves as a voting member. The county TAC does not have to meet the residency requirements for serving as a nonvoting director. The county TAC, however, is ineligible to serve as a nonvoting or voting director if the county TAC also serves as the CAD's chief appraiser. The county TAC is ineligible to serve as a nonvoting director if the county has contracted for the assessment and collection of county taxes with another taxing unit or with the CAD. A school district may have annexed property from another school district in another county. The school dis- trict receiving the annexed property participates in select- ing directors in each appraisal district in which the school has territory. The eligibility requirement in such situations is different:the individual must reside in the school district, and the school district must nominate the individual as a candidate for the appraisal district board. days, after the date the person knew or should have known of the delinquency. This disqualification does not apply if the person is paying the delinquent taxes under an installment payment agreement or has deferred or abated a suit to collect the delinquent taxes. Family Relationships A person may not be appointed or continue to serve on the board, if related within the second degree of con- sanguinity (blood) or affinity (marriage) io the following persons: • an appraiser who appraises property for use in the appraisal district's appraisal review board proceed- ing, or; a tax representative who represents taxpayers for compensation before the appraisal district's appraisal review board. A director who continues to serve knowing he or she is related in this manner to an appraiser or tax representative commits a Class B misdemeanor. A director who is related to an appraisal district employee within the second degree by affinity or within the third degree by consanguinity may not serve as long as the relative remains employed by the appraisal district. Appendix B shows the family relationships that may make a person ineligible to serve as a director. Tax Code Section 6.035(a) does not address whether these prohibi- tions from serving as a director for family relationships apply to the county TAC who serves as a nonvoting direc- tor. No attorney general opinions or court decisions deal with the question of whether a statute that generally makes individuals ineligible to serve on a board applies to an ex officio member of that board. If a county TAC has a relative as described above, the county TAC should seek the advice of legal counsel. There also are no attorney general opinions or court decisions about whether a nepotism statute applies to the relative of a nonvoting director of a board. If Section 6.05 applies to a relative of the nonvoting county TAC, then the county assessor-collector should consult legal counsel. Delinquent Taxes Owing delinquent property taxes disqualifies a person from serving on the CAD board of directors or as chief appraiser. The person must own property on which delin- quent property taxes have been owed for more than 60 Term of Office and Vacancy Appraisal district directors serve two-year terms. Each term begins on January 1 of an even-numbered year. All directors serve the same two-year terms unless the taxing units have adopted staggered terms. The two-year term of Appraisal District Director's Manual Page 3 Eligibility Requirements office does not apply to the county TAC who serves as a nonvoting director. And the following paragraph on vacancy does not apply to the nonvoting county TAC. If a vacancy occurs on the board the board notifies the voting units of the vacancy. The voting taxing units nomi- nate by resolution candidates to fill the vacancy. All nomi- nationsare submitted to the chief appraiser within 10 days after receiving notice from the board of directors [hat a vacancy exists. The chief appraiser delivers a list of the nominees to the directors within the next five days. The board of directors selects by majority vote one of the nom- inees to fill the vacancy. If the method of selecting directors is changed the res- olution establishing a new selection method may provide a method for filling vacancies. If the resolution does not specify a procedure, vacancies are filled in the manner described above. Recalling a Director A taxing unit may ask for the recall of any director the unit voted for in the appointment process. A unit may not ask for the recall of a director if the unit didn't cast any votes for that director in the last election. Recall starts when the unit files a resolution with the chief appraiser stating that the unit is calling for the recall of a named member. Within 10 days after a unit files a recall resolution, the chief appraiser must give written notice of the resolu [ion to the presiding officer of each voting taxing unit. Next, a recall election takes place.Only the taxing units that voted for the member may vote for the recall. The recall-voting taxing unit has the same number of votes that it cast in electing the member to be recalled.The unit votes by tiling a resolution casting its votes in favor of recall.The resolution must be filed with the chief appraiser on or before the 30th day after the original recall resolution is filed. The chief appraiser must count the recall votes within 10 days after the last day to vote. The member is recalled and is no longer a board member if the number of votes cast in favor of recall equals or exceeds a majority of the votes cast for the member.The chief appraiser must imme- diately notify the board chair and the presiding officer of the governing body of each recall voting taxing unit of the results.lf the chair is the subject of the recall, the board sec- retarymust also be notified. After a recall, the member's vacancy is filled by the tax- ingunits that voted in the recall election. Each recall-voting taxing unit may nominate by resolution one candidate and is entitled [o the same number of votes it used to appoint the recalled member. The recall-voting taxing units must submit the name of each nominee to the chief appraiser on or before the 30th day after the date the chief apprais- ernotified the unit of the recall election results. Within 1 S days after the last day for nominations, the chief appraiser must prepare and deliver to each recall-vot- ing taxing unit a ballot listing the candidates alphabetical- ly according to their last names. After 15 days, the chief appraiser counts the votes, declares the winner and noti- fies the chair, each taxing unit and the candidates. If the method of selecting directors has been changed, the taxing units that voted for the member-to-be-recalled may recall him or her and appoint a new member by any method adopted by resolution of a majority of recall-vot- ing taxing units. The adopted method must provide that each unit voting on the recall and appointment voted for the member being recalled and has the same number of votes it cast for the member being recalled. Staggered Terms The taxing units participating in the district may adopt staggered one- and two-year terms. To adopt staggered terms, two events must occur. First, three-fourths of the voting taxing units must adopt resolutions for staggered terms. Second, the voting taxing units must have changed the method for appointing board members to end cumu- lative voting.These two events may occur simultaneously. The resolutions proposing staggered terms must be filed with the chief appraiser after June 30 and before October 1 of an odd-numbered year. If the chief appraiser determines that enough taxing units filed resolutions for the change, he or she must notify all taxing units of the change. Staggered terms take effect on the following January 1.To start staggering terms, all members are appointed at one time as if staggered terms had not been adopted. As soon as possible after January 1, all members draw lots to determine who will serve one- and two-year terms. The number of one-year and two-year members depends on whether the board has an even or odd num- ber of members. Boards with an even number of members divide the one- and two-year terms in half. Boards with an odd number of members must have one more member with two-year terms than members with one-year terms. For example, asix-member board would choose three members to serve one-year terms. Afive-member board would choose two. Once the one-year terms expire, the voting units appoint members to fill those seats for two-year terms. Thus under staggered terms, the voting units will hold elections for part of the board every year. The staggered term provision does not apply to the county TAC who serves as a nonvoting director. Staggered terms may be rescinded if a majority of vot- ing taxing units adopt resolutions rescinding the terms. The procedure for filing a rescission resolution is essential- Page 4 Appraisal District Director's Manual Eligibility Requirements ly the same as that for adopting the change, but the rescis- sion resolution must be filed between January 1 and October 7 of odd-numbered years rather than even-num- tiers expire on the next January 1, even if not completed. Voting units appoint new members. tiered years. After a valid rescission, the terms of all current mem- Staggered terms are automatically rescinded if the dis- trict makes a change in the method of selecting directors that returns the selection method to one using cumulative voting. Appraisal District Director's Manual Page S Appendix A Appendix A. Selection of Directors The quality of the property tax system depends on the appraisal district board of directors.lndividuals serving on the board cf directors bring to the board knowledge,judg- mentand expertise in establishing policies and procedures for the district's organization and operation. Directors are nominated and selected by the govern- ing bodies of voting taxing units in the appraisal district. Voting taxing units for all appraisal districts are the county, cities and towns and school districts participating in the district. Conservation and reclamation districts as a group may be voting [axing units under certain circumstances. Other special districts, such as hospital districts, rural fire prevention districts and junior college districts do not vote to select directors. The Tax Code provides that the county tax assessor- collector (TAC) will serve on the appraisal district board of directors. The county TAC automatically will serve as a non- voting district director, if the county TAC is not appointed to the board of directors under the regular process. If a tax- ingunit, such as the county commissioner's court, appoints the county TAC to the appraisal district board, then the county TAC serves as a voting member. The county TAC does not have to meet the residency requirements for serv- ing as a nonvoting director. The county TAC is ineligible to serve as a nonvoting or voting director if the county TAC also serves as the CAD's chief appraiser. The county TAC is ineligible to serve as a nonvoting director if the county has contracted for county tax assessment and collection with another taxing unit or with the CAD. Appraisal district boards may vary in size from five to thirteen members. Most appraisal district boards have five members. Enlarging the board beyond five members requires action by the previous board of directors or three- fourths ofthe voting units.Tax Code Section 6.031 provides the method for increasing the board's size. Taxing units select directors in the fall of each odd- numbered year. The chief appraiser announces the new directors before December t.The selection method maybe changed in the same manner as changes in the number of directors. Tax Code Section 6.03 establishes the selection process for appraisal district directors. This process is not an "election" governed by the Texas Election Code, but an independent procedure unique to the property tax system. This section describes the following features of the selec- tion process: • qualifications for serving as an appraisal district director; voting process; sample calculation of the number of votes a taxing unit may cast in selecting directors; sample worksheet for calculating the votes; list of each voting taxing unit's responsibilities; and selection of a candidate of conservation and recla- mationdistricts. The Selection Process Step-by-Step A board of five directors governs each county apprais- al district, plus the county TAC as a nonvoting director (if not regularly appointed).The county, cities and towns and school districts participating in the district nominate and select directors. Incorporated villages are considered part of "cities and towns' and also vote. Conservation and recla- mation districts (municipal utility districts, water districts, etc.) are entitled to vote under certain circumstances. Other [axing unitsjunior colleges, hospital districts and otherspecial districts participating in the appraisal dis trict-may not vote for directors. The Property Tax Code permits appraisal districts to change the procedure for appointing directors.This part of the pamphlet discusses the normal process described in the code. A later section discusses how to change the appointment process. Chief Appraiser's Duties The chief appraiser calculates the number of votes for each taxing unit, receives nominations for directors, pre- paresthe ballot counts the votes and announces the winners. Throughout the selection process, the Property Tax Code specifies dates for action by the chief appraiser and the voting units.These dates are directory and not manda- tory -that is, minor delays in the nominations or voting process may be ignored. A nomination made a day or two after the statutory deadline is still a valid nomination unless the chief appraiser has already prepared and dis- tributed the ballot. Similarly, a taxing unit delivering a vote to the chief appraiser after the deadline for submission is not void unless the chief appraiser has announced the win- ners.Under the law, officials must be in substantial compli- ance with the process, according to Texas Attorney Gener- al Opinion No.JM-166 (1984). Appraisal District Director's Manual Page 51 The following steps outline the chief appraiser's duties. Step 1 -Obtain prior year tax levies. The number of votes allocated to a voting unit is based on the ratio of its tax levy in the preceding year to the total tax levy of all voting units. The chief appraiser uses the most recent official tabulation of each voting unit's prior year levy. This is the amount levied, not the amount col- lected, by the voting unit. If amulti-county unit has chosen only one appraisal district, that appraisal district uses all of the tax levy in cal culating the unit's votes.lf a taxing unit participates in sev- eralappraisal districts, the chief appraiser uses only the tax levied in that appraisal district. The chief appraiser also should find out if any voting unit plans to change appraisal districts. The county [ax levy includes taxes for the general fund, farm-to-market roads or flood control and special road and bridge funds. Further,the chief appraiser does not include payments received in lieu of taxes in the tax levy of a voting unit, since by definition such payments do not constitute tax levies. Step 2 -Calculate votes for each voting unit. Before October 1, the chief appraiser must calculate the number of votes for each voting unit.To determine the votes, the chief appraiser must: 1. Divide the amount of the preceding year's proper- ty taxes imposed by each unit by the total amount of preceding year's property taxes imposed by all voting units. 2. Multiply the quotient in No. 1 by 1,000 and round to the nearest whole number. 3. Multiply the whole number in No.2 by the number of seats on the appraisal district board that will be filled. The formula looks like this: U V=Tx 1,000xD V =the number of votes for a given voting unit. U =the amount of preceding year's property taxes imposed by the given voting unit. T =the total amount of preceding year's property taxes imposed by all voting units within the appraisal district. D =the number of directors that will be selected this year (ordinarily five, unless the number of direc [ors has increased). See the sample calculation. Step 3 -Notify each voting unit. Before October 1, the chief appraiser must notify each voting taxing unit of the number of votes it may cast. The chief appraiser will send a notice of the votes to the fol- lowing individuals: for the county, to the county judge and each coun- ty commissioner; for a city or town, to the mayor and to the city man- ager,city secretary or city clerk (as applicable); and for a school district, to the school board president. Step 4 -Receive director nominations. Each voting unit may nominate one candidate for each position to be filled.Thus, the unit may nominate from one to five candidates, provided the board of directors consists of five members.The unit may nominate more candidates if the size of the board has been increased. The presiding officer of the unit submits the names of the nominees by written resolution to the chief appraiser before October 1 S.The presiding officer should include the addresses of the nominees so that the chief appraiser can notify the winners. The chief appraiser has neither the authority nor the duty of investigating or judging the qualifications of the nominees. Step 5 -Prepare the ballot. Before October 30, the chief appraiser must prepare a ballot listing the nominees alphabetically by each candi- date's last name.The chief appraiser must deliver a copy of Sample Calculation of Votes to Select Five Directors Unit Tax Levy Percentage Votes County A 51,500,000 20.0 1,000 City B 500,000 6.7 335 Town C 200,000 2.7 135 ISD AA 4,000,000 53.3 2,665 ISD BB 1,000,000 13.3 665 ISD CC 300,000 4.0 200 Page 52 Appraisal District Director's Manual Appendix A this ballot to the presiding officer of the governing body of each voting unit. Step 6 -Cast the votes. Each voting unit must cast its vote by written resolu- tion and submit it to the chief appraiser before November 15.The unit may cast all its votes for one candidate or may distribute the votes among any number of candidates. Some voting units may have enough votes to select several directors to the board. To share representation on the board, several units may wish to vote for the same can- didate. A voting unit must cast its votes for a person nominat- edand named on the ballot.There is no provision for write- in candidates.The chiefappraiser may not count votes cast for someone not listed on the official ballot. Step 7 -Announce the winners. The chief appraiser must count the votes and declare the candidates who received the largest vote totals before December 1. The chief appraiser notifies all taxing units (voting and non-voting) and all the candidates (winners and losers) of the outcome. If a tie occurs, the chief appraiser must resolve it through any method of chance.Methods of chance include such actions as flipping a coin, drawing straws, drawing a black bean, drawing names from a hat and so forth. Changing the Selection Process Section 6.031, PropertyTax Code, allows appraisal dis- tricts to change the number of directors or the method of selection, or both, subject to veto by any voting unit. A second option is called the "three-quarters rule" because at least three-quarters of the voting units must decide to change the process. First Option -Unanimous Consent The appraisal district board may increase its number of directors to a maximum of 13, change the selection proce dure or both.To do so,the directors must pass a resolution stating the change and send it to all taxing units in the appraisal district before August 15 of a year in which direc- tors are selected. Any voting unit-county, school district, city or town-may veto the change by adopting a resolution of opposition and filing it with the board of directors before September 1. Upon receipt of a veto resolution, the board of direc- tors must notify all taxing units in writing before Septem- ber 15. This deadline allows sufficient time for taxing units to invoke the second option-the three-quarters rule. Second Option -Three-quarters Rule A voting unit that holds a majority of the votes in the normal selection process may not have its voting strength reduced to less than a majority unless its adopts a resolu- tion supporting the change. For example,a school district with 85 percent of all cal culated votes must agree to any proposed change that decreases its voting percentage to less than 50 percent of all votes.lf the school does not agree, the new method is void, even if approved by three-quarters of the remaining units. No unit's voting strength may be reduced to less than one half of the number of votes it holds in the normal selection process without its consent, unless the unit's appraisal district budget allocation is reduced in the same proportion as its voting strength. For example, a city has 40 percent of all calculated votes and does not support the resolution to change the selection process. The new method can reduce that city's voting strength to 20 percent without any budget adjust- ment.However, ifthe new method reduces the strength to less than 20 percent, then the appraisal district reduces the city's budget allocation by the same proportion. The procedure may not be used to expand the types of units that vote. Steps for Changing the Selection Process Before October 1 in a year of selecting directors, at least three-quarters of the voting units must adopt and file their resolutions with the chief appraiser for changing the selection process. Before October 5, the chief appraiser determines whether a sufficient number of voting units have adopted the resolution to change the selection process. If this is the case, the chief appraiser must notify taxing units of the change before October 10.Once adopted any replacement procedure remains in effect for subsequent elections until: 1. the resolution changes in accordance with the requirements and provisions of Section 6.031 (the statute for changing the process); or 2. a majority of the voting units rescind the resolu- tion that approved the change. Appraisal District Director's Manual Page 53 Appendix A Participation by Conservation and Reclamation Districts Conservation and reclamation districts may participate in this process if a proper request for participating in the director's selection process has been filed for the current year.These districts may also participate if [hey were entitled to vote in the last director selection that took place in the appraisal district. Selection of Conservation and Reclamation District Nominee Conservation and reclamation districts may become voting taxing units.The Property Tax Code defines a conser- vation and reclamation district as a district created under Article III, Section 52, or Article XVI, Section 59, of the Texas Constitution, or under a statue enacted one of these provi- sions.The most common of these districts are water districts, municipal utility districts and road districts. Conservation and reclamation districts are not automat- ically entitled to vote for appraisal district directors. To become voting taxing units, at least one conservation and reclamation district in the appraisal district must make a request to nominate and vote on the board of directors. The request must be in writing and delivered to the chief appraiser on or before June 1 of each odd-numbered year. If the chief appraiser receives a request from a conserva- tion and reclamation district, he or she will begin the process of selecting a nominee from these districts. This process is different from the process of selecting nominees of other voting taxing units. Step t - Certify a list of eligible districts. After receiving a request, the chief appraiser must cer- tify alist of all eligibld conservation and reclamation dis- tricts that are imposing taxes and that participate in the appraisal district.The chief appraiser must certify the list by June 15 of the year the request is made. To determine whether a district is authorized under the code's definition, chief appraisers should ask each district involved fora cita- tion to the statute or constitutional provision authorizing the district.lf not convinced of the district's right to partic- ipate inthe process, the chief appraiser should consult the appraisal district's attorney. Step 2 -Calculate the votes and notify the dis- tricts. If the proper request has been made, the chief appraiser must calculate the number of votes to which each eligible conservation and reclamation district is enti- tledand deliver written notice of each district's voting enti- tlement and right to nominate a director to the presiding officer of each district. The chief appraiser must deliver this notice on or before June 30 of each odd-numbered yeacThe number of votes to which each eligible conservation and reclamation district is entitled is calculated in the same manner as oth- ervoting taxing units.This process is discussed above. Step 3 -Receive candidate nominations. The governing body of each conservation and recla- mation district entitled to vote may nominate by resolu- tion acandidate for the board of directors. The district's presiding officer must submit the district's nominee's name to the chief appraiser on or before July 14 of each odd-numbered year. Step 4 - Prepare a ballot. On or before July 31, the chief appraiser prepares a nominating ballot.The ballot must list all the nominees of each conservation and reclamation district alphabetically by surname.The chief appraiser must prepare and deliver a copy of the nominating ballot to the presiding officer of each district. Page 54 Appraisal District Director's Manual