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Kerr County commissioners were scheduled to meet on July 28 to resume discussions on a possible property tax hike to pay for flood recovery, which has generated some local protests.
Kerr County Judge Rob Kelly posted statements to the county's website to explain the county's predicament in getting back on its feet.
"FEMA will reimburse a lot of our emergency response costs," he explained. "FEMA is here, and I’m thankful they’re here. But they’re slow. The last time we had a big FEMA project, it took at least two, if not three years, before we got reimbursed.”
“We have to be able to at least pay the contractors now and then get reimbursed later,” Kelly added.
The judge also said the Kerr Central Appraisal District reported the lost value on local property appraisals may exceed $240 million, which means a loss in property tax revenue for Kerr County.
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On July 28, commissioners expect to hear from Kerr County Tax Assessor-Collector Bob Reeves. They directed him to return to their court with calculations on hiking the property tax rate.
In a typical year, commissioners would be looking at a budget plan that is restricted to a property tax rate increase of no more than 3.5% above the No-New-Revenue rate, which is calculated annually, without seeking voter approval.
But Texas Tax Code 26.042 allows for county governments to calculate an emergency voter approval rate of 8% above the No-New-Revenue rate in the wake of disasters.
Reeves told commissioners during their meeting this week that doesn’t mean the tax rate will go up that much.
The difference in the normally allowed 3.5% calculation and the 8% calculation “is not to pad a budget or anything like that,” Reeves said. “It is for the unforeseen costs that have arisen out of the disaster."
The county judge reminded residents that property taxes pay for services they will need during the recovery ahead.
“I support the victims of this devastating flood getting their property appraisals reduced to help with their tax bills,” Kelly said, "but lower property appraisal values mean lost funds for the county and its operations that support local citizens. Early estimates put county road damages at $8.5 million, and assessments are still being made daily. It is a true disaster,” he said.
Commissioners are entering budget discussions as they deal with the flood disaster at the same time. Kerr County's budget for the coming fiscal year takes effect Oct. 1.
