Fredericksburg City Council Regular Meeting Summary – September 15, 2026

The City of Fredericksburg City Council met in regular session on Tuesday, September 15, 2026, at 9:00 AM at City Hall. The council addressed a broad agenda that included approving unbudgeted expenses, adopting the Fiscal Year 2026-2027 budget and property tax rate, adjusting utility fees, and deciding several zoning and conditional use permit applications.

Consent Calendar

• Council Minutes (September 1, 2026): Approved unanimously.

Public Comments & Testimony

• Tom Musselman (Item 7A – Friendship Traffic): Advocated against a traffic signal at Eagle, arguing instead for a continuous turn lane on Friendship Lane, citing safety concerns from trucks and speeding traffic. He noted a new development entrance (Lucille) poses a future hazard.
• Kevin Speide (Item 7D – Budget): A county resident, urged the council to remove funding from the budget for Flock security cameras and automatic license plate readers (ALPRs). He cited privacy concerns, a statewide bipartisan rollback, and examples of data access overreach in other Texas communities (Pflugerville, Kendall County).
• Kyle Segner (Item 7H – Owl Lane Rezoning): Strongly opposed the zoning change, arguing the city is failing to address cumulative downstream drainage impacts on county neighbors, traffic on Friendship Lane, and requiring developers to pay for infrastructure like traffic signals. He urged a pause on development.
• Charles Schmidt (Item 7H – Owl Lane Rezoning): A neighboring property owner with an easement, expressed concerns about drainage impacts from the development and prior developments (Woodlands, Sonoma), noting the engineering firm did not contact him despite being instructed to.
• Wellesley Ray (Item 7J – STR CUP): Attorney for the applicants (Steven & Ellen Scott), requested council ratify the Planning & Zoning Commission's approval for expanding the non-conforming STR structure without increasing the occupancy (3-bedroom, 2-bath).

Discussion Items & Key Outcomes

• Item 7A: Unbudgeted Expenses (General Fund Reserves): Council approved $1.45 million in reserve spending: $500,000 for a traffic signal on Friendship Lane; $250,000 for replacing rusting metal light poles at the Ladybird tennis courts; and $700,000 for the Police and Fire renovation of the Old City Hall (to include a bunk room and safe room).
• Item 7B: CVB Funding Agreement (2027): Approved a funding agreement for the Convention and Visitor Bureau. City Attorney Barbara Quirk confirmed edits including the city paying for visitor center maintenance up to the prior amount, removing PII from payroll records, and a standard non-appropriations clause.
• Item 7C: Utility Fee Amendments: Council approved Ordinance 2026-35 (Electric Rates) and Ordinance 2026-36 (Drainage Utility Fees), both implementing a 5% rate increase. The electric increase was a phased approach recommended by a rate study to cover capital projects (e.g., a $1.5M reconductor project). The drainage fee increase aimed to address a budget deficit.
• Items 7D, 7E, 7F: Budget & Tax Rate:
  • Budget Adoption (Ordinance 2026-33): The FY2026-2027 annual budget was adopted unanimously via roll call vote. Finance Director Krista Wareham highlighted the General Fund is balanced ($27.4M in expenditures), but enterprise funds have a $5M deficit largely due to a water well and CVB funding. Personnel costs rose 7%. Projections show potential reserve deficits starting in 2028 without intervention.
  • Property Tax Revenue Increase (Ratification): Council ratified the increase as the adopted rate exceeds the no-new-revenue rate.
  • Ad Valorem Property Tax Rate (Ordinance 2026-34): The total tax rate was set at $0.244342 per $100 of valuation ($0.223138 M&O, $0.021204 I&S). The discussion included Councilmember Watson arguing for the higher voter-approval rate to plan for future staffing, equipment, and capital needs. The motion carried on a 3-2 roll call vote (Mayor Briley, Councilmembers Klein and Neffendorf in favor; Councilmembers Watson and Eidson opposed).
• Item 7G: Ambulance Charity Care Policy (Resolution 2026-04): Council approved the policy allowing the Fire Department to stop billing uninsured patients and enroll in the Ambulance Supplemental Payment Program (ASPP) to recoup costs from the state and federal government. Fire Chief Bizzell noted this could generate an estimated $150,000 to $200,000 annually.
• Item 7H: Rezoning Request (DEV-2026-83-ZC / 111 Owl Lane): Council approved a zoning reconfiguration on a 1.5-acre and 0.9-acre parcel on Owl Lane, changing the commercial zoning from C2 to C1 (neighborhood commercial) as recommended by the Planning & Zoning Commission (8-0 vote). The motion passed 4-1 (Councilmember Klein opposed), despite significant public opposition regarding downstream drainage and traffic impacts.
• Item 7I: Conditional Use Permit (DEV-2026-97-CUP / 1403 E Main): Approved a CUP for The Nature Shoppe to establish a Limited Retail Sales use. P&Z had unanimously recommended approval.
• Item 7J: Conditional Use Permit (DEV-2026-110-CUP / 301 E Burbank): Approved a CUP allowing the owners to expand their legal non-conforming short-term rental structure (unoccupied). The permit was conditioned on no increase in the occupancy level (3 bedrooms) from the original structure. P&Z had recommended approval with a 5-3 vote.
• Item 7K: Mediation Agreement: Deferred and not discussed.

Future Agenda

City Manager Clinton Bailey reviewed the upcoming operational items for the October 6 council meeting, including a street closure for New Year's Eve, an interlocal agreement with Gillespie County for flood debris disposition from the July 16th event, and a contract for landfill transfer station design. Coffee with the City Manager is scheduled for October 14th.