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Karnes County's community newspaper

News

(last updated on August 22, 2007)

County considers tax hike to pay for $3.1 million construction project

By Cathy Passmore

County officials consulted with Robert Henderson, financial advisor, at their August 14 meeting concerning the big picture of the county’s budget.

The county seeks approval through the publication of Notice of Intentions to issue one or more series of certificates of obligation to go out and finance $3.1 million for a new office building and repairs for the capitol improvements, according to Henderson.

He reviewed the requirements and regulations needed to be in compliance with the Securities and Exchange Commission rule 1502-12.

"There is a time frame within which the issuance must occur to meet the requirements for the upcoming 2007-2008 tax year," Henderson said.

"The state Attorney General’s office approval is part of the process and that any tax rate increase must not exceed the 80 cent maximum allowed by state law," he said.

Henderson and County Judge Alger Kendall, Jr. agreed that tax rates can be adjusted yet remain within the amount allowed.

"After working with Judge Kendall, debt finance reduction and grant fund balances for courthouse repairs are the two main reasons for the needed increase," Henderson said.

He shared that there are possible new tax revenues that could become available such as the reopening of uranium mining in the county and the possibilities for additional tax bases.

After discussion on the need to pursue the matter for the 2007-2008 year, and to get the process started in order to save interest on any debt payments, Commissioner Isidro "Stormy" Rossett sought clarification on the reason for getting this accomplished by October 1 of this year.

"The state Attorney General’s office is involved in the timetable of events, including the ‘needs assessment’ process," Henderson said.

After discussion related to the process needed to proceed, the resolution was approved and the first Notice of Issuance which is to be published August 22 in The Countywide.

Anne Franke, tax assessor-collector, provided an update on taxes collected and those needing to be collected. Commissioner Darrel Blaschke questioned the collection procedure for outstanding debts from 2006.

Franke said that those with delinquent taxes will be informed of a timeline to get payments in followed by suits to be filed for collection purposes.

The court then approved a three-percent increase in salaries with benefits recommended by the auditors. Those receiving raises are the county auditor, the assistant auditor and the two court reporters.

They also agreed and approved a request by the San Antonio River Authority to hold, if needed, their elections on the upcoming general election date of November 6.

Kendall then noted that the current Waste Management Company has declined to extend their contract past the current contract date. The commissioners will be asked to look into alternative possibilities to take over this service.

Following the main agenda items, former County Judge Alfred Pawelek asked to speak about his concerns for future water resources and issues concerning the matter.

He related that several surrounding counties are already looking into this, and he would like to make others aware and suggest that Karnes County take a look at the same issues.

"Water will become more valuable than oil," Pawelek said. "We need to protect our natural resource."

Kendall said that he had read some of the other counties’ concerns.

cpassmore@thecountywide.com