The Bandera City Council moved forward with a lower property tax rate and approved the elimination of one City Hall position during a special budget workshop Aug. 27, while ultimately declining to move ahead with proposed cuts to department head salaries.
Council members agreed to publish a proposed no-new-revenue tax rate of $0.567163 per $100 valuation, a decrease from the current rate of $0.569939 per $100 valuation. The proposed rate includes $0.109398 for interest and sinking (I&S) and $0.457765 for maintenance and operations (M&O).
Although the rate is decreasing, city officials said property tax revenue is still expected to increase because of rising property values.
“The no-new-revenue rate is 0.567163, and we are recommending to stay at the no-new-revenue rate to keep you pretty much in line,” temporary city Treasurer Christine Green told the council. “The reason that the tax rate can stay the same and still receive the same amount was because of the values of the properties.”
The council is expected to hold public hearings and consider final adoption of both the budget and tax rate Sept. 22.
The most debated portion of the meeting centered on city staffing and employee compensation.
After extensive discussion, council members approved an amended motion directing city administration to eliminate one position at City Hall. The motion passed 3-1, with Council Member Jeff Flowers voting against it. Rather than identify a specific position, the motion gives City Administrator Toni Kunz flexibility to determine how the reduction will be implemented.
The discussion originated with a proposal by Council Member Debbie Breen to eliminate the administrative assistant position, arguing the role had never received formal council approval.
“I think we need to cut one head or a head, a position somewhere, and try to maneuver around,” Breen said.
Council Member Deanna McCabe supported reducing staffing and said future positions should come before the council for approval.
“I would like to see the position actually be approved by council,” McCabe said.
Kunz urged the council to allow her time to evaluate applicants for several open positions before making permanent staffing decisions.
“I understand where you're coming from, and I just don't want to budget ourselves into a corner we can't move,” Kunz said.
Kunz told council members she is exploring ways to cross-train employees and potentially combine responsibilities in areas such as code compliance, permitting and administrative support.
The council also discussed department head compensation after Breen introduced a motion to reduce department head salaries by 9%.
“The reason I feel strongly about this is when we campaigned last year, we hit a lot of doors. Everybody was upset about the salaries here,” Breen said. “Our salaries pay higher than the county, and the county has no problem getting people to apply.”
Council Member Tammy Morrow expressed similar concerns during the discussion.
“I look at our positions. Our city secretary is more than the county judge,” Morrow said.
Kunz strongly opposed the proposal, arguing that city department heads manage responsibilities that differ significantly from county government positions.
“I find it interesting that we keep comparing back to the county,” Kunz said. “They're not in charge of supplying a clean water supply, a sewer system, 24/7, to a small, highly dense area. That's a huge responsibility.”
Kunz also warned that reducing salaries could negatively affect employee retention and recruitment.
“The people that have the experience that you're about to take their salaries down have had a career in successfully doing that in the last 10 years for our city,” she said.
Flowers also opposed salary reductions, arguing earlier in the meeting that maintaining competitive pay was important for retaining qualified employees.
Unopposed city council candidate Allen Jehle also spoke against salary cuts during the public comment portion.
“We don't want the city to have a reputation that could potentially be years that we have to undo,” Jehle said. “We don't want to have them leave and have only people who are desperate say, ‘Well, if I go to Bandera, I can get hired real quick, get trained up, and then go to a different place.’”
The city currently budgets department head salaries at $100,000 for Kunz, $88,931 for City Secretary Jill Dickerson, $82,408 for City Marshal Earl Heidelberg and $77,251 for Public Works Director Tommy Ogle. The city treasurer position remains vacant and budgeted at $45,000 annually.
Following discussion, council members did not move forward with the proposed 9% salary reduction.
In other budget-related action, the council approved a revised conservation water rate structure designed to encourage lower water usage. The measure restores a 20% discount for customers using 1,500 gallons of water or less per month and applies to water and sewer customers both inside and outside city limits.
Council members also removed cost-of-living adjustments from the proposed fiscal year 2026-27 budget and discussed future quarterly departmental reporting, employee evaluations and additional cross-training opportunities among city staff.
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