ORDER NO.29451 REVIEW KERB CENTRAL APPRAISAL DISTRICT'S PROPOSED BUDGET AMENDMENT Came to be heard this the 24th day of October, 2005, with a motion made by Commissioner Williams, seconded by Commissioner Letz. The Court unanimously approved by vote of 4-0-0 to: Approve the Kerr Central Appraisal District's Proposed Budget Amendment to add a reserve account for costs related to any potential building purchase or relocation, building renovation, and any associated moving or move-in costs. The account shall be funded with surplus funds left over from the Appraisal District's 2004 Operating Budget. ~g ~s~ I ~ 1 _ COMMISSIONERS' COURT AGENDA REOUEST MADE B MEETING DATE: October 24, 2005 TIME PREFERRED: SUBJECT: Consider, discuss and take appropriate action on Kerr Central Appraisal District's Proposed Budget Amendment. 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 towards 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 ~ Kemille, Texas 78029 Phone (830) 895-5223 • Fax (830) 895-5227 September 23, 2005 Pat Tinley, Judge Ken County 700 Main street Kemille, TX 78028 R.e: Kerr Central Appraisal District Proposed Budget Amendment Deaz Judge Tinley: S EP '? '~ 20D5 The Kerr Central Appraisal District Board of Directors is considering different options relating to the present Kerr CAD office location. Some of the reasons for this consideration include: 1. The current facility is at or near capacity. 2. 'The age of the building is such that extensive renovations such as a new roof, resurfacing the pazking lot, plumbing repairs, new carpeting and ceiling file replacement is emanate. 3. The present building is aot energy efficient due to excessive glass walls and lack of insulation. The construction of the building with a flat roof and stucco walls coupled with its age makes maintenance more costly each year. 4. Amore cerrtral location neaz to the downtown azea would afford better accessibility for taxpayers and would be neazer to the post office and courthouse. 5. Being located on Junction Highway with a 55 mile per hour speed limit and no traffic lights neazby makes safe entry and exit for taxpayers into the present location very hazardous. 6. In the event of a sale of the preserrt office, Junction Highway is a very desirable commercial area enjoying the highest real estate values in the county. This would enable Ken CAD to optimize their equity in the current office and make the transition to a new location with negligible added budget expenditures. 7. If a move is made, either to a new owned building or a leased property, added taxable revenue would benefit the entities involved. Since the Kerr Cemral Appraisal District Board of Directors is considering these options and its operations aze funded by the constituent taxing entities in the county. Pursuant to section 6.06 of the Texas Property Tax Code, these entities must approve the Appraisal District's annual budget, and any amendments to the budget. Your taxing unit is one of the entities authorized to vote on such matters. At this time the Appraisal District Board of Directors is proposing the following budget amendments that have been submitted to all the applicable taxing entities for approval: The 2004 Kerr County Appraisal District budget shall be amended to add a reserve account for costs related to any potential building purchase or relocation, building renovation, and any associated moving or move-in costs. The account shall be funded by transferring approximately $26,277 in ezisting revenue from existing "surplus" fund balance to the surplus account for the 2004 Budget. The purpose of this letter is to request your governing body to approve the proposed budget amendment. This ~r~osed amendment does not require ~ additional contributions from the taxing entitiec. The "surplus" fund balance was generated in the 2004 tax yeaz, when expenses were less than projected. It is the opinion of the Appraisal District Board of Directors that the most efficient use of the surplus would be to offset expenditures associated with property purchase, renovations of present site, construction of a ~.. Kerr Central Appraisal District P.O. Box 294387 • 1836 Junction Highway ~ Kerrville, Texas 78029 Phone (830) 895-5223 • Fax (830) 895227 new building, build out costs in the event of a lease or lease purchase or any other anticipated expenditures once the Board of Directors determines the most prudent averme to pursue. Regarding existing revenue, the proposed amendment simply allows the Appraisal District to make a bookkeeping change by transferring the existing $26,117 from a "surplus" accoum to a "reserve account" which would be dedicated to satisfying specific, necessary expenditures related to the acquisition of a new building or the renovation of the present building. In summary, the Kerr CAD Board of Directors asks your governing body to approve the proposed amendments for the following reasons: 1. The funds were originally budgeted for other expenses the Appraisal District did not incur. 2. No additional revenue will be necessary from any taxing unit; the funds currently existing in the surplus fimd balance account will simply be transferred to the new reserve accou~. 3. The surplus funds to be transferred to the reserve account would only be spent on relocation expenses or renovation costs to the present building such as have been ide~ified in this letter. 4. By using the surplus fiords to offset building, renovation and/or moving expenses will most likely eliminate the necessity of the taxing units increasing their annual allocation to Kerr CAD for building related expenses. As a matter of convenience, I am also submitting proposed agenda language for this item or if you decide, please feel free to substitute your own version. PROPOSED TAXING UNIT AGENDA LANGUAGE Should you have any questions, please feel free to call. Sincerely, k Griffin Board of Directors, Chairman If your taxing entity opts to disapprove the budget amendment they should follow these steps taken from the "Appraisal District Director's Manual" published by the Texas Comptroller of Public Accounts.