Kerr County has received funding through the EDAP program which contains prohibitions on the transfer of certain revenues for non-utility purposes. Kerr County is compliant with applicable statutory requirements of the EDAP Program.
In 2018, the Texas Water Development Board (TWDB) awarded the County financial assistance in the amount of $27,801,400 from the Clean Water State Revolving Fund (CWSRF) and the Economically Distressed Areas Program (EDAP); all identified as TWDB Project 10366. There are two agreements within this project, as follows: Commitment No. LF1000748 in the amount of $10,096,400 and corresponding Commitment No. L1000681 in the amount of $4,330,000 Commitment No. G1000904 in the amount of $11,270,000 and corresponding Commitment No. L1000884 in the amount of $2,105,000 In 2018, Kerr County was awarded Commitment No. LF1000748 and Commitment No. L1000681, TWDB Project 10366 (Intended Use Plan (IUP) Fiscal Year 2018), by the Texas Water Development Board (TWDB) in the form of a loan from the Clean Water State Revolving Fund (CWSRF) for the planning, design, and/or construction of a new wastewater collection system. TWDB determined the County qualified for principal forgiveness as a Disadvantaged Community and agreed to provide financial assistance in the amount of $14,426,400, consisting of $4,330,000 Kerr County, Texas Combination Tax and Surplus Revenue Certificates, 2018 (L1000681), and a subsidy in the form of loan forgiveness funds of $10,096,400 (LF1000748) without expectation of repayment of the $10,096,400. The loan and loan forgiveness funds were placed in a trust account under the name of Kerr County, but the TWDB holds the rights to those funds and the funds are only disbursed to the County as funds are expensed. In accordance with Exhibit G – Escrow Agreement of Principal Forgiveness Agreement, the proceeds received by the Escrow Agent under this Agreement shall not be considered a banking deposit of the County, and the Escrow Agent shall have no right to title with respect thereto except as Escrow Agent under the terms of this Agreement. The County spent $0 of the loan proceeds in the current year and $160,991 in prior years and $0 of the loan forgiveness funds in the current year and $9,521,655 in prior years leaving a loan proceeds balance of $4,169,009 and loan forgiveness balance of $574,745 plus all income earned on the funds. In 2018, Kerr County was awarded Commitment No. G1000904 and Commitment No. L1000884, TWDB Project 10366, by the Texas Water Development Board (TWDB) from the Economically Distressed Areas Program (EDAP) to finance the certain wastewater system improvements. TWDB determined the County qualified for financial assistance not to exceed $13,375,000, consisting of the TWDB’s purchase of $2,105,000 Kerr County, Texas Combination Tax and Revenue Certificates, 2019 (L1000884) and grants of $11,270,000 without expectation of repayment of the $11,270,000. The loan proceeds and grant funds were placed in a trust account under the name of Kerr County, but the TWDB holds the rights to those funds and the funds are only disbursed to the County as funds are expensed. In accordance with Exhibit E – Escrow Agreement of the Grant Agreement, the proceeds received by the Escrow Agent under this Agreement shall not be considered a banking deposit of the County, and the Escrow Agent shall have no right to title with respect thereto except as Escrow Agent under the terms of this Agreement. The County spent $314,156 of the grant funds in the current year and $7,471,739 in prior years and $0 of the loan proceeds in the current year and $80,756 in prior years leaving a grant balance of $3,484,105 and loan proceeds balance of $2,024,244 plus all income earned on the funds. In 2016, Kerr County was awarded Commitment No. L1000484, TWDB Project 10366, by the Texas Water Development Board (TWDB) from the Texas Water Development Board (TWDB) in the form of a grant from the Clean Water State Revolving Fund (CWSRF) for the planning, design, and/or construction of a new wastewater collection system. TWDB determined the County qualified for financial assistance not to exceed $5,110,000. The grant funds were placed in a trust account under the name of Kerr County, but the TWDB holds the rights to those funds and the funds are only disbursed to the County as funds are expensed. In accordance with Exhibit E – Escrow Agreement of the Grant Agreement, the proceeds received by the Escrow Agent under this Agreement shall not be considered a banking deposit of the County, and the Escrow Agent shall have no right to title with respect thereto except as Escrow Agent under the terms of this Agreement. The County spent $0 of the loan funds in the current year and $4,537,553 in prior years leaving a grant balance of $572,447. In 2012, Kerr County was awarded Commitment No. G1000036, TWDB Project 10366, by the Texas Water Development Board (TWDB) from the Texas Water Development Board (TWDB) in the form of a grant from the Clean Water State Revolving Fund (CWSRF) for the planning, design, and/or construction of a new wastewater collection system. TWDB determined the County qualified for financial assistance not to exceed $64,000, consisting of the TWDB’s grant funds of $64,000 (G1000036) without expectation of repayment of the $64,000. The grant funds were placed in a trust account under the name of Kerr County, but the TWDB holds the rights to those funds and the funds are only disbursed to the County as funds are expensed. In accordance with Exhibit E – Escrow Agreement of the Grant Agreement, the proceeds received by the Escrow Agent under this Agreement shall not be considered a banking deposit of the County, and the Escrow Agent shall have no right to title with respect thereto except as Escrow Agent under the terms of this Agreement. The County spent $1,500 of the grant funds in the current year and $61,786 in prior years leaving a grant balance of $715.In 2016, Kerr County was awarded Commitment No. G1000435, TWDB Project 10366, by the Texas Water Development Board (TWDB) from the Texas Water Development Board (TWDB) in the form of a grant from the Clean Water State Revolving Fund (CWSRF) for the planning, design, and/or construction of a new wastewater collection system. TWDB determined the County qualified for financial assistance not to exceed $14,050,618, consisting of the TWDB’s grant funds of $14,050,618 (G1000435), without expectation of repayment of the $14,050,618. The grant funds were placed in a trust account under the name of Kerr County, but the TWDB holds the rights to those funds and the funds are only disbursed to the County as funds are expensed. In accordance with Exhibit E – Escrow Agreement of the Grant Agreement, the proceeds received by the Escrow Agent under this Agreement shall not be considered a banking deposit of the County, and the Escrow Agent shall have no right to title with respect thereto except as Escrow Agent under the terms of this Agreement. The County spent $0 of the grant funds in the current year and $13,096,685 in prior years leaving a grant balance of $953,933
In July 2025, Kerr County experienced significant flooding resulting from severe weather conditions that impacted portions of the region. This event caused disruptions to county operations, including but not limited to damage to infrastructure, temporary suspension of certain public services, and potential impacts to financial and administrative processes. As part of our audit procedures, we considered the effects of this contingency on the County’s financial position and operations. Management has indicated that emergency response efforts were implemented in accordance with established disaster protocols, including coordination with state and federal agencies. Preliminary assessments suggest that the County may incur additional expenditures related to infrastructure repairs, emergency services, and other recovery activities. At the time of this report, the full financial impact of the July 2025 flood event has not been fully determined. Potential reimbursements from federal and state assistance programs, including those administered by the Federal Emergency Management Agency (FEMA), may offset a portion of these costs; however, the extent and timing of such reimbursements remain uncertain. We have reviewed available documentation and disclosures related to this event and evaluated management’s estimates where applicable. Due to the inherent uncertainty associated with disaster-related contingencies, actual results may differ materially from current estimates. This matter has been disclosed in accordance with applicable accounting and reporting standards for contingencies and subsequent events. Our audit opinion is not modified with respect to this matter.