Kerrville City Council approves FY2026 budget

The Kerrville City Council approved its fiscal year 2026 budget during its regularly scheduled Tuesday meeting.  However, the property tax rate is still to be decided.

State law allows taxing entities that have declared a disaster to use a special method with a higher percentage to calculate property tax rates.  This method does not require voter approval.  In a normal year, most Texas taxing districts calculate their voter-approval rate using a 3.5% revenue growth rate.  However, in the year following a disaster, districts can calculate the voter-approval rate with an 8% growth rate.

On Tuesday night, in a workshop meeting, Kerrville City Manager Dalton Rice said choosing the disaster rate instead of the 3.5% voter-approval rate could bring the city an additional $336,817.  The proposal drew dozens of people to Tuesday’s public hearing.

With the budget approved and the ordinance with the disaster property tax rate having had its public hearing, a decision is expected at the Kerrville City Council’s next meeting on Sept. 23.

The City has said property owners impacted by the flood will have until Oct. 20, 2025, to file a disaster exemption to these taxes.