Findingthe

balance:Ranching and Rapid

Growth in BanderaCounty, Texas

______

A Cost ofCommunity

Services Study

Photo courtesy of TxDOT

Traditionally Texans have viewed new growthas new wealth for struggling counties. AndBandera County is growing. Its location in

the scenic Hill Country west of San Antonio, rankedthe tenth largest city in the nation, makes BanderaCounty an ideal refuge for com-muters and tourists alike.

But new growth hasn’t broughtnew wealth to Bandera County’scoffers. Although residential landcontributes the largest amount ofrevenue to the county, its net fiscalimpact is actually negative.Residential lands demand evenmore in service costs, includingschools, road maintenance, waterand wastewater, courts and publicsafety, than they provide in rev-enue. Conversely, ranch and openland in Bandera County generatealmost four times more dollars forthe county than what the countyspends on them. If residentialdevelopment is not balanced bybusiness growth and conservation of rural and openlands, either property taxes must rise or services must

decline. Despite its rapid growth, Bandera is still a rural

county. Bandera, Texas is “Cowboy Capital of theWorld,” with roots in the cattle drives of yesteryearand continuing today in rodeos. The county’s prima-

ry industries are tourism and ranch-ing - all intrinsically linked to itsheritage. Maintaining Bandera’svibrant rural and ranching tradi-tions is the key to the county’sfuture prosperity.

Today dude ranches drawtourists who support local restau-rants, shops and outdoor recreation-al businesses. Commercial andindustrial development is limited,although “cottage” manufacturingbusinesses such as custom furniturebuilders, saddlers, jewelers andwoodworkers are located through-out the county. Apples, apple prod-ucts and apple festivals contributeto the area’s economy. Top sellingcommodities are cattle and calves,

while goats are firmly established in the local agri-cultural industry.

Ranch and open land in Bandera County gener-ate almost four times more dollars for the countythan what the county spends on them.

“”

Old Meets New in the Cowboy CapitalPhoto courtesy of TxDOT

Phot

o by

Deb

bie

McW

illiam

s

Photo courtesy of TxDOT

Agriculture is an economic engine that ben-efits the local economy through jobs, sales andproducts. Total agricultural products sales inBandera County in 1997 were valued at nearly$5 million. Farmers and ranchers purchasematerials, provide employment, spend moneylocally and have a positive impact on other sec-tors of the economy.

In addition to helping maintain fiscal bal-ance, ranches and open lands help shape theoverall quality of life in the region. Through thetradition of good stewardship within the ranch-ing community, wildlife habitat protected onworking ranches sustains a wide array of species.Open lands also minimize flooding andenhance water quality and quantity throughrecharge of aquifers and local creeks used fortourism and recreational activities.

While traditional ranches remain through-out Bandera County, many have given way tosmaller “ranchettes” or single-family homes inplatted residential subdivisions. Many of therural lots are yet to be developed, leaving the potential for thousands ofnew homes. Some new residents, who commute to and shop in SanAntonio, expect customary services from the county. Yet much of theirsales tax revenues continue to be contributed to San Antonio.

The Cost of Services toBandera County

To gain a better understanding of the fiscal impact of existing landuses on Bandera County’s budget, American Farmland Trust(AFT) conducted this Cost of Community Services (COCS)

study. Revenues and expenditures from three different types of land uses- agricultural/open space, commercial/industrial and residential - wereconsidered for Fiscal Year 2001. Revenues generated by each land usewere compared to dollars spent to provide public services such as roadmaintenance, schools, water and wastewater and law enforcement.

Table 1 shows how much was spent by the county, the independentschool districts and the water district to provide services to residents,

Table 1. Cost of Community ServicesCombined budgets of Bandera County, Independent School Districts and Spring HillsWater District

Commercial/ Agricultural/Residential Industrial Open Space

Total Revenues $24,381,281 $ 2,278,343 $ 3,282,840 Total Expenditures 26,813,102 595,069 855,525Revenues/Expenditures Ratios 1:1.10 1:0.26 1:0.26

For every dollar received in taxes from ranch and open lands, Bandera Countyspends only $0.26 to provide services to these lands. Yet for every dollarreceived in tax revenue from residential development, the county spends $1.10 toservice residential properties.

Bandera County’s Cost of CommunityServicesCombined budgets ofBandera County,Independent SchoolDistricts and SpringHills Water District

Commercial/Industrial$0.26

Agriculture/OpenSpace$0.26

Residential$1.10

Photo courtesy of Bandera County Visitors Center

Phot

o co

urte

sy o

f Ban

dera

Cou

nty

Visi

tors

Cen

ter

compared to the tax dollars generated by landsin the three categories.

The revenues/expenditures ratios show thatagricultural land and open space more than payfor themselves. For every dollar these lands pro-vide in revenue from property taxes, sales taxesand other revenues, they demand back only$0.26 in services. Similarly, industrial and com-mercial properties provide a net fiscal benefit,demanding only $0.26 in service costs for everydollar they generate. However, residential devel-opment requires $1.10 in services for every taxdollar it generates.

What Does GrowthReally Cost?

Texas law limits the authority that coun-ties have over development. But rapidgrowth is a reality in Bandera County.

With a population of 17,645 in 2000, Bandera County grew by 67 per-cent from 1990. How future growth will be accommodated will deter-mine the quality of life for Bandera County’s residents for generations tocome.

The results of this study provide reliable information demonstratingthe importance of ranch and open land to the fiscal stability of BanderaCounty. A COCS study is only a “snapshot in time” of revenues andcosts based on land use. It cannot predict growth nor is it meant to beanti-growth. The Bandera County COCS study confirms that:

• Taxes and other revenues from residential development do notcover all the public services residents expect. A balance of land uses,including ranch and open land, is needed to reduce overall infrastruc-ture costs and provide the revenue to pay for these services. The alter-native, as more residential development occurs in existing subdivisions,is that services will be stretched thinner or property taxes will have to beraised.

• Ranch and open land pay more in local tax revenues than theselands receive back in services. Texas’ agricultural and open space valua-tion property tax program is justified as a way to provide an incentive to

If residential development is not balanced bybusiness growth and conservation of rural andopen lands, either property taxes must rise or ser-vices must decline.

“”Ph

oto

cour

tesy

of T

xDO

T

Photo courtesy of Bandera County Visitors Center

Phot

o co

urte

sy o

f Ban

dera

Cou

nty

Visi

tors

Cen

ter

keep land open and in active agriculturaluse. Even with a reduced assessed value,agricultural properties contribute a surplusof revenue to pay for public services for res-idents of Bandera County.

• Ranch and open land should not be consid-ered interim uses awaiting conversion totheir “highest and best” use. Instead thecounty should plan for a future with theselands. The results of the COCS study sug-gest that these land uses are of great fiscalvalue to local communities.

• The ratio of $1/$1.10 for residential landuse would have been much higher if not forthe contribution of almost $12 million ofstate money for education. In FY2001, thecombined budgets for independent schooldistricts represent 74 percent of expendi-tures considered in this study. BanderaCounty taxpayers may find it difficult to payfor services if state revenues decrease or if education demandsincrease.

• There is a substantial inequity between revenue received by thecounty and for school services. In making decisions about futuregrowth in Bandera County, local officials must recognize the com-bined tax burden on the individual property owner as county andschool taxes rise to meet the increased demand for services.

Phot

o co

urte

sy o

f TxD

OT

Photo courtesy of Richard and Mary Lou Parmer, Par 5 Ranch, Lometa, Texas.

Photo courtesy of Bandera County Visitors Center Phot

o by

Deb

bie

McW

illiam

s

Assuring a BrightFuture for theCowboy Capital

Citizens and officials need a plan for thefuture of ranchland and ranching activ-ities in Bandera County that:

➧ Outlines when, where and how desiredgrowth and development will occur;➧ Identifies priority areas for agriculture,water recharge, wildlife habitat or other conser-vation purposes; and➧ Inventories existing residential lots anddetermines the adequacy of public services,including water availability, to accommodatefuture build out of these lots.

Once Bandera County has a vision for itsfuture, the plan can be used in numerous ways: to rally support for localor statewide voluntary conservation initiatives that fund the protectionof land identified as important to the community; to seek private, stateor federal funds to begin initiating components of the plan; to evaluateadditional potential revenue streams to the county; and to encouragethe state legislature to provide urbanizing counties with additionalauthority to manage growth.

As Bandera County continues to grow, the land use policies anddecisions that leaders make will have important consequences for thefuture quality of life for residents. This Bandera County COCS studycan aid community leaders and citizens as they discuss how to accom-modate new residents, while preserving the unique heritage and natur-al beauty that attracted all of Bandera’s residents. The numbers showclearly that maintaining a land base for future agricultural-related activ-ities would be a sound long-term investment for Bandera County.

For details of this COCS study methodology and findings, or formore information on American Farmland Trust’s activities in Texas andaround the nation, please visit our website at www.farmland.org or con-tact us at 101 Uhland Road, Ste. 205, San Marcos, Texas 78666;512/396-5517; fax 512/396-5529.

Who is AFT? American Farmland Trust is the largest private, nonprofit con-servation organization dedicated to protecting our nation’s agricultural resources.Founded in 1980, AFT works to stop the loss of productive farmlands and to pro-mote farming practices that lead to a healthy environment.

Our Texas Field Office staff in San Marcos works at state and local levels toinform the public about farm and ranch land conservation and to aid communi-ties in initiating local farm and ranch conservation programs.

Printing made possible by the Rivers, Trails and Conservation Assistance Program, National Park Service.

Photo courtesy of Bandera County Visitors Center

Phot

o co

urte

sy o

f TxD

OT

Phot

o co

urte

sy o

f TxD

OT