KERRVILLE, Texas – The Kerrville City Council approved its fiscal year 2026 budget on Tuesday night, but one big question remains unanswered: Will the property tax rate increase in Kerrville?
KSAT has been following the discussion closely over the past two months.
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.
The Kerrville City Council has been exploring the disaster rate option over the last few weeks.
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 has sparked controversy, drawing dozens of people to Tuesday’s public hearing.
“Raising property taxes of any kind may fill a budget line today, but it risks driving away the very families and businesses that keeps Kerrville alive tomorrow,” Jacob Wellnitz said.
But not every citizen was against the measure.
“I respectfully ask that you do what needs to be done for us to continue the quality of life and maintain the services that we need for the city we love,” Kim Clarkson said.
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.
Flood recovery update
Before the property tax public hearing, the city council heard an update on Kerrville’s flood recovery efforts.
Michael Hornes, the assistant city manager, reported that 955,000 cubic yards of debris have been collected from the deadly Hill Country floods, with 95% coming from private land.
So far, 850 right-of-entry requests have been submitted in Kerrville, allowing state cleanup teams to enter private property to remove debris. Hornes said 150 requests have been completed.
Arborists have marked and saved roughly 2,082 trees along the Guadalupe Riverbed.
More recent Kerrville City Council coverage on KSAT: