Discussions over the City of Bandera's proposed fiscal year 2026-27 budget revealed ongoing disagreements between council members and city staff during an Aug. 4 budget workshop, as officials debated accounting practices, permit requirements, declining revenues and the city's financial priorities.
Throughout the workshop, City Administrator Toni Kunz fielded questions from council members regarding proposed budget adjustments, accounting changes and revenue projections. While many discussions focused on technical budget matters, several exchanges highlighted differing philosophies between city staff and members of the council regarding transparency, regulation and the city's role in residents' daily lives.
One recurring topic involved efforts to reorganize budget line items and make financial records easier to understand.
Council member Lynn Palmer questioned whether changes to budget descriptions and account classifications could complicate future audits.
"So all of these changes that we're making right now, have we discussed them with our auditor so that when we do our audit, it doesn't get unclear?" Palmer asked.
Kunz responded that the changes were designed to improve transparency rather than alter the city's financial practices.
"I think it's more along the lines of the questions that came from the council about what this line item is being used for and being more transparent," Kunz said. "Saying things like equipment lease — we don't have any equipment lease; we're buying equipment. So you want your description to reflect what it truly is."
Questions about audit expenses and credit card processing fees also exposed frustration over the city's accounting structure. Kunz said splitting certain costs among multiple departments made it difficult to determine exactly how funds were being spent.
"I like the combined effect, so you know exactly what you're paying," Kunz said. "If you're looking at this, it makes it look like you paid three separate $9,000 bills, and to me, I don't like that. This is my first rodeo on this side.”
Council Member Debbie Breen repeatedly emphasized the need to examine revenues alongside expenditures, warning that declining sales tax collections could create financial challenges.
"We are also looking at expenses, which is great, but we need to look at revenue," Breen said. "Our sales tax is horribly low. We're three quarters of the way as of June, and we're not even halfway there."
Breen said conversations with local business owners suggested economic conditions may remain difficult for the foreseeable future.
"I haven't heard one business that's saying, 'Yippee. Things are wonderful now,'" Breen said. "They're all hurting."
Kunz echoed concerns about the city's financial outlook, citing reduced business personal property tax revenues and sluggish sales tax collections. She urged the council to focus future spending on core city services.
"Our city has gotten off track many times over the last year for people that it's their personal pet to have something specific in our town," Kunz said. "It didn't involve streets, water or wastewater."
Kunz added that city leaders must make difficult decisions to ensure long-term sustainability.
"We really need to tighten it up and really focus our efforts and make our decisions where it is for the sustainment of our little town," she said.
The workshop also highlighted philosophical differences over government oversight and permit requirements.
A lengthy discussion centered on fence permits, portable buildings and permits required for homeowners performing work on their own property.
Breen argued that excessive regulation can create unnecessary liability for the city.
"The more that we insert ourselves — the city inserts itself into people's personal business — the more liability the city is going to take on," Breen said.
Griffin questioned whether homeowners should be required to obtain permits for certain projects completed on their own residences.
"If you live in your house, and you want to do work in your house, you shouldn't have to have one," Griffin said. "And if your house burns down because it's your fault, it's your fault."
Kunz defended the purpose behind many permitting requirements, arguing they exist because of past safety concerns and potential impacts on neighboring properties.
"Every ordinance is that there was either an extreme loss of money or an extreme loss of life that caused somebody else [harm]," Kunz said. "That's ultimately why any of this even happened."
The discussion grew particularly as officials debated whether permits should remain in place for perimeter fencing.
Breen argued that public education could be more effective than requiring permits, while Kunz countered that voluntary compliance often falls short.
"You can lead a horse to water, but you cannot make them drink," Kunz said. "People do not read it and they don't pay attention and they don't do it anyway."
Another source of disagreement involved employee uniforms and equipment purchases. Breen questioned whether the city was receiving sufficient value from uniform expenditures after observing employees out of uniform while on duty.
"A lot of the times the guys that I see around, they're not wearing them," Breen said.
Palmer agreed that employees should be identifiable while working in public.
"If we require them to wear them, then they should show up to work with them on," Palmer said.
Kunz said she had already discussed the issue with the Public Works Department and supports stronger enforcement of uniform standards.
"If we're going to pay for them, we need to require them to wear the shirts," Kunz said.
Despite disagreements, council members and staff generally agreed on the need for greater financial clarity and additional budget review before adoption.
The workshop concluded with council members scheduling an additional budget workshop for Aug. 17 to continue reviewing expenses, revenues and proposed changes before the city begins the formal budget adoption process later this year.
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