City Council Workshop: Stormwater Fee, Olympic Pool Update, EDA Grant - March 10, 2026

The City Council of Kerrville held a workshop on March 10, 2026, at 4:30 PM to discuss three major items: a proposed stormwater drainage fee structure, an update on the Olympic Pool construction delays, and the status of an Economic Development Administration (EDA) grant application for the Quinlan Creek Sewer Line project. No formal votes were taken; discussions focused on information sharing and preliminary direction.

Public Comments

No public comments were recorded during the workshop. One individual signed up to speak but the meeting proceeded directly to agenda items.

Stormwater Drainage Fee

Staff presented an analysis of the current flat-rate stormwater fee (residential $1, multi-unit $2, commercial $3) which generates approximately $156,600 annually but falls short of the $267,262 in operations and maintenance expenses, creating an annual deficit of about $110,000. The presentation reviewed the 2020 Stormwater Master Plan, which identified approximately $15 million in unfunded capital projects (e.g., Hill Country Drive Phase 2, Crock Center). Two fee structure options were offered: a tiered rate based on impervious surface area (using an Equivalent Residential Unit of 4,876 sq ft) and a flat rate. Under the tiered scenario (starting at $2 per ERU in FY27 and increasing to $4.85 by FY31), most residential customers would see a monthly fee ranging from $1.50 to $2.50, while commercial fees would be calculated by square footage. The flat rate would raise residential fees to $2.72 per month initially. Both options generate similar total revenue (~$260,000 in FY27), but the tiered approach is considered more equitable. Staff and several council members expressed a preference for the tiered rate, citing fairness to both small homeowners and businesses. However, council members requested more time to review the master plan and the presentation before reaching a consensus. It was agreed to revisit the item at a future workshop with a decision expected during a regular meeting that same evening. No action was taken.

Olympic Pool Update

Assistant City Manager M. Hornes, along with representatives from JK Bernhard (contractor) and Marmon Mock (architect), provided an update on the Olympic Pool renovation. The project, awarded August 25, 2025, with a 335-day construction window, has encountered significant underground issues: large void areas under the pool, failing main drain pipes, and a retaining wall needed for the mechanical room. These problems were discovered in February 2026 and have added 10–25 days each but have not increased costs due to contingency funds. As a result, the pool will not open for the summer of 2026. Staff emphasized the necessity of these repairs to ensure the structure lasts another 50 years. The project scope has been reduced (bleachers, scoreboards postponed) but competition swimming capabilities remain. Council members expressed appreciation for the transparency and prioritized quality over speed. Staff is exploring alternative summer recreation options, such as bounce houses and water slides, and considering seeking assistance from the community foundation. No formal action was taken.

EDA Grant Application

Hornes updated the council on the Quinlan Creek Sewer Line project's EDA grant application. The original timeline for submitting participation agreements by late March was not feasible; comments from two of three developers have been received, and the third is expected soon. The item will be brought back at the second meeting in March (likely March 24) for council action, with EDA review anticipated in late April. No questions or additional discussion occurred.

Key Outcomes

• No formal motions or votes were taken during the workshop.
• The stormwater drainage fee discussion will continue; a future workshop and subsequent regular meeting vote are anticipated.
• The Olympic Pool is confirmed closed for summer 2026; alternative summer programming is under development.
• The EDA grant application timeline is delayed, with council consideration rescheduled to later in March 2026.