City Council Workshop - July 24, 2026

The City Council Workshop for the City of Kerrville held on July 24, 2026, focused extensively on the city's budget process amid ongoing disaster recovery efforts from recent floods. Key procurement-related discussions included the financial impact of flood damage estimated at $30 million and the need for budget adjustments to address infrastructure repairs, debris removal, and sustainability of city services. The council reviewed proposed water fund rate increases to cover a growing deficit, with tiered water usage charges adjusted to balance the fund. The workshop also covered personnel costs, including public safety staffing and group health insurance increases, and discussed potential new revenue mechanisms such as crime and fire control districts, which would reallocate existing sales tax revenue rather than create new taxes. Capital improvement projects and asset replacement plans were reviewed, highlighting the use of short-term financing for police vehicles and IT infrastructure upgrades. The council acknowledged the challenges of forecasting revenues due to disaster-related property tax exemptions and sales tax volatility. Legal services budgeting was also discussed, with consideration of hiring additional staff versus continued use of outside counsel. The meeting concluded with plans for further budget workshops and public hearings in August and September, emphasizing the need for fiscal prudence and potential service reductions if new revenues are not secured.