Adopted Budget FY 2012-2013 - Kerr County

The Kerr County Incentive plan was adopted in 2008 as part of the local Kerrville/Kerr County
Economic Development Strategic Plan. The plan was designed by local government entities and
businesses developing a model for evaluating and scoring criteria for businesses applying for
economic incentives. In 2012, Kerr County began to implement economic incentives to
encourage new commercial ad valorem tax revenue and to assist in the creation of jobs in Kerr
County. Kerr County will continue to use the Economic Development Strategic Plan in
implementing economic incentives for new and expanding commercial growth.
In 2012, Fox Tank Company began operations in a location near the airport and will receive a
total of $97,500 over two years, including the use of Chapter 381, a Texas economic incentive
which authorizes reimbursement of sales tax (50 percent) over the next two years. Additional
incentives included a land and building tax abatement scaled over five years. The county has
also provided economic incentive for the expansion of two existing businesses in the area.
Culligan Water Company and Le Meilleur R.V. Truck & Automotive Repair will each receive a
tax abatement totaling $7,000, scaled over a five year period.
We will continue to provide support to the EIC to promote marketing the county to worldwide
businesses. In the future, we expect this support to continue the growth pattern of the county, and
to add significantly to the commercial growth in the area.
GOAL 4
Operate the County government in the most fiscally responsible manner.
Programs to Achieve the Goal - All departments are encouraged to operate in a fiscally
responsible manner. Recognizing that providing the mandated services has an inherent cost, we
strive to make each dollar produce the most service.
Objective 1: Maintain a Fund Balance of 25 percent
The General Fund Balance is projected to be 20.56% at the end of FY 2013. Overall Fund
Balance is projected to be 19.08%. The General Fund Balance fell in FY 2011. The
Commissioners Court felt the economic strains of the national recession justified this dip. The
Court made every effort to bring the fund balance back up in 2012 and did increase the balance
from the previous year and will continue to work toward increasing our fund balance in future
budgets.
Objective 2: Assure that the Investment Policy is instituted to maximize the funds invested,
while insuring safety of principal.
The County’s investment earnings have decreased as interest rates have decreased by virtue of
the Federal Reserve Bank’s decreasing the federal funds interest rates. The period of increasing
rates is over for now, as the Open Market Committee has maintained the 0 to ¼ percent target
range for the federal funds rates. This is due to the worsening economy, and by the collapse of
the sub-prime Mortgage market. The nationwide housing foreclosure rate continues to be high
but, in general, the Kerrville housing market is in better shape than anywhere else in the nation.
FY 2012 - 2013 Budget
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