Kerrville City Council Meeting - May 26, 2026

Introductory Paragraph

The Kerrville City Council met on May 26, 2026 at 6:00 PM at City Hall, 701 Main Street, Kerrville, Texas, under Mayor Joe Herring, Jr. The meeting lasted approximately 52 minutes and included community announcements, a Kerrville Kindness Award presentation, a financial report from Finance Director Julie Behrens, public comments, a consent agenda with five routine items, a second reading of a zoning ordinance, three action items involving Tax Increment Financing (TIF) funds and a construction contract, and board appointments to the Economic Improvement Corporation (EIC).

Announcements of Community Interest

• Mayor Herring announced the Library Summer Reading Program, community day schedule, Shakespeare in the Park (June 5-6), a cornhole tournament (June 13), and the Junior Citizens Police Academy (free for grades 6-8). Councilmember added that the Smithsonian exhibition "A Spark, a Place of Innovation" is on display at the Kerr Arts and Cultural Center through June 28.

Presentations

Kerrville Kindness Award

Mayor Herring and citizen Clifton Fifer presented the Kerrville Kindness Award to Raymond Hardee, a Kerrville native who retired from a 20-year insurance career and then served special-needs youth at Kerrville ISD, drove a school bus, and remains active in First United Methodist Church, the Salvation Army board, and the Hill Country District of Ordained Ministry. The award recognizes his commitment to service.

Finance Report

Finance Director Julie Behrens provided a financial update through April 2026 and preliminary budget information for FY27.

• General Fund: Property tax collections at 95%, on track with historical averages. $600,000 was moved from the emergency tax rate to capital improvement projects for flood repairs. Sales tax is trending 5% ahead of last year, estimated to end $250,000–$275,000 above budget (though with a two-month lag). Service revenue (EMS) is behind budget but difficult to predict. Expenses are about $1 million better than budget, primarily in personnel.
• Water and Sewer Funds: Water fund tracking close to budget; sewer fund performing better than budget. Personnel costs are on target. Kerbela Shiner Park is behind budget but making progress (cabin remodels, beach areas). Golf course revenues are behind but expected to improve in late spring/summer. Hotel occupancy tax is being closely monitored for budget conservatism.
• FEMA Update: Operations with FEMA have resumed; a new delivery manager began. The donated resources project (approximately $200,000) appears likely to be approved. All public works projects except the water treatment plant are complete; parks (Louise Hays and KSP) are the major ongoing projects. Insurance allocation is still being negotiated.
• Preliminary Budget Information: General fund specifics are too early. Water fund is balanced with a placeholder for 15% increases in group health/liability insurance. No new FTE requests in the water fund. Proposed moderate increase to the reuse irrigation base rate (no tiered rate increases). Emphasis on CIP and facility fund set-asides continues.
• Property Tax Preliminary Roll (as of May 12, 2026): Preliminary assessed value is $4.35 billion (2.6% higher than last year). Net taxable value (after $406 million exemptions) is $3.86 billion (1% higher than FY26). New taxable value is $49.6 million (down from $71.9 million last year due to fewer subdivisions). Business personal property exemption increased from $2,500 to $125,000, reducing taxable business personal property by $56 million to about $100 million.
• Sales Tax: Rolling average analysis shows healthy trends; staff is monitoring for flood-related anomalies. Budget will be conservative due to volatility.

Public Comments & Testimony

Citizens Forum

• Katie Cappel (913 Red Bud Lane) and Parker Lewis (age 9, entering 4th grade, from Overhill) spoke about the upcoming Bluebell Hills Parade, which was canceled in 2025 due to the flood. They highlighted that 2026 is the 250th anniversary of the United States and encouraged attendance. The parade starts at 9:00 AM at Trinity Baptist Church with frozen treats and door prizes. Participants can walk, ride bikes, or bring dogs (no motors). Parker Lewis has participated six times.

During Consent Agenda (Item 5B)

• George Brudy (1616 Glenn Road) urged the council to table Ordinance 2026-08 (second reading) to consider retaining the local alcohol fee. He argued that removing the fee, which can be $400–$600/year for TABC license holders, would lose revenue (e.g., Specs would no longer pay ~$1,000/year). He suggested modifying the fee schedule to comply with state law without eliminating the fee. The council did not pull the item and approved the consent agenda.

During Resolution 7A

• George Brudy commented that state law and the TIF ordinance for Reinvestment Zone Number One do not require council approval for such expenditures, though he acknowledged the council's review promotes transparency. He suggested that future TIF creation ordinances might explicitly require council approval if desired.

Discussion Items

Consent Agenda (Items 5A–5E)

Items were considered routine: Ordinance 2026-06 (second reading, utilities code amendments including definitions, fee calculations, meter tampering, water conservation stages), Ordinance 2026-08 (second reading, deleting local alcoholic beverage fee and adjusting penalties), Resolution 23-2026 (authorizing grant application to Texas Commission on the Arts for Cultural District Project), and minutes from May 12, 2026. After public comment on 5B, the council voted to approve all consent items unanimously.

Ordinance 2026-07: Zoning Code Amendments (Second Reading)

Planning Director Dalton Paxton presented amendments to Chapter 60 (Zoning Code) including new definitions, revised setbacks and off-street parking schedule, new supplemental development requirements for battery energy storage systems, data centers, and farmers markets, and revisions to the land use table. The changes between first and second reading were on pages 15–18 (added provisions for farmers markets on vacant lots with traffic/parking/setback/restroom considerations). Councilmember noted that after discussions, the setback for battery storage facilities from churches, schools, daycares, hospitals, playgrounds, public parks, and residential districts was set at 500 feet (originally proposed 1 mile) to keep local control and prevent state preemption. The ordinance passed unanimously.

Resolution 24-2026: TIF Funding for Downtown Restrooms

Finance Director Behrens explained that the TIF Board (Reinvestment Zone Number One) recommended $5,000 to refurbish the public restroom downtown (repainting, fixtures). Councilmember asked about cleaning schedules (currently twice per week, likely Mondays and Thursdays/Fridays) and evening locking. The resolution passed unanimously.

Resolution 25-2026: TIF Funding for Parking Lot Grants

Assistant City Manager Michael Hornes presented a resolution to approve up to $50,000 from TIF funds for parking lot improvements within the zone, following a successful facade improvement grant program. The TIF Board had previously approved a $100,000 increase to that program. Councilmember noted the poor condition of the parking lot near the cash-and-loan place. The resolution passed unanimously.

Construction Contract: Travis Street Booster Pump Station Expansion

Engineering Director Ken Burow presented a contract with Texas Water and Soil Company, Inc. for $1,335,963. The project will upgrade pumping capacity at the Travis pump station to serve growing demand on Loop 534 (including new high school, middle school, and denied apartment developments). TCQ required adding a 16,000-gallon storage tank at the old well site (3rd and Travis), increasing costs from an original estimate of ~$500,000. The contractor committed to the price if work begins before June 1, 2026. The contract passed unanimously.

Board Appointments to Economic Improvement Corporation (EIC)

City Secretary Shelley McElhannon announced three open seats: two incumbents (Gilberto and Beck Gibson) eligible for second terms, and one new vacancy. Councilmember recommended reappointing Gibson and Gilberto, and appointing Justin Foster for the vacant seat. The motion passed unanimously. (Item was eligible for executive session but handled in open session.)

Key Outcomes

• Consent Agenda (5A–5E) approved unanimously (5A, 5B, 5C, 5D, 5E).
• Ordinance 2026-07 (zoning code amendments) passed unanimously on second reading.
• Resolution 24-2026 (TIF bathroom refurbishment, not to exceed $5,000) passed unanimously.
• Resolution 25-2026 (TIF parking lot grants, not to exceed $50,000) passed unanimously.
• Construction contract with Texas Water and Soil Company for Travis Street Booster Pump Station ($1,335,963) approved unanimously.
• EIC board appointments: Gilberto and Beck Gibson reappointed, Justin Foster appointed to fill vacant seat – approved unanimously.
• Next steps: City Secretary will distribute the current list of council liaison committee assignments; reappointments will follow seniority rules.
• Financial: Council will receive detailed budget workshops in June and July; proposed budget to be filed by July 31, 2026.