Council approves budget, appoint Jehle to vacated sea

The Bandera City Council approved its fiscal year 2026-27 budget and adopted a lower property tax rate Sept. 22 following lengthy discussions over staffing costs, budget transparency and the city's financial priorities.

The council also accepted the resignation of Council Member Lynn Palmer and removed her from the city's bank accounts. Members then unanimously appointed Allen Jehle to fill the vacant council seat through the Nov. 3 election. Jehle is also running unopposed for a two-year council term in the upcoming election.

After taking the oath of office, Jehle immediately joined the council dais for the remainder of the meeting.

The approved budget will raise less revenue from property taxes than last year's budget by $24,168, a 2.4% decrease, according to city officials.

Mayor Denise Griffin said the general fund budget presented to council was $44,574 less than the version originally filed Aug. 21, while the utility fund budget was reduced by $1,021.08 following revisions made during budget workshops and special meetings.

Much of the discussion centered on salary allocations and whether council directives to reduce staffing levels had been adequately reflected in the proposed budget.

City Administrator Toni Kunz explained that a previously proposed 3% cost-of-living adjustment for employees had been removed from the budget, though approved salary increases remained.

'We had a 3% COLA in there, and for all of the salaries, that was removed,' Kunz said during the public hearing.

Council members questioned how employee salaries were distributed between the city's general fund and utility fund budgets. Kunz said certain positions support both operations and must be allocated accordingly to maintain compliance and transparency.

'You really have to keep your general fund money and your utility fund money separate,' Kunz said. 'Your revenues for your utilities have to be spent on your utilities, and your general fund revenues have to be spent on your general fund.'

Several council members argued the allocation method made year-to-year comparisons difficult and could create the appearance that salaries had been reduced when they had merely been reassigned among departments.

A larger disagreement emerged over a previous council discussion regarding reducing staffing levels at City Hall. Council members expressed frustration that no specific salary reduction appeared in the proposed budget despite earlier discussions about eliminating a position.

Kunz said council never directed staff to remove a specific dollar amount from the budget.

'There was no dollar amount associated with that,' Kunz said. 'There was nothing to remove in the budget because it wasn't a dollar amount that was done.'

As council debated whether additional reductions should be made before adoption, Kunz warned that altering the budget at the final stage could create complications with the city's tax calculations.

'I'm just going to say the elephant in the room,' Kunz said. 'The bottom line is, you cannot levy against property taxes without a solid budget, and you have to have a dollar amount of what you're planning on doing in fiscal year 2027.'

An initial motion to approve the budget failed on a 3-1 vote. After further discussion, council approved Ordinance 462 adopting the budget on a second motion by a 3-1 vote, with Council Member Deanna McCabe opposed.

Council then approved placing future budget amendments on an upcoming agenda for additional review.

Following the budget vote, council opened a public hearing on the proposed tax rate.

Griffin noted a clerical error had incorrectly listed the tax rate in meeting materials. The corrected rate was set at $0.567163 per $100 valuation, down from the current rate of $0.569939 per $100 valuation.

'It is lower,' Griffin said. 'I'm very pleased.'

Council unanimously approved Ordinance 463 adopting the tax rate for fiscal year 2026-27.

Earlier in the evening, Griffin issued a proclamation recognizing Constitution Week, Sept. 17-23, on behalf of the Major James Kerr Chapter of the Daughters of the American Revolution. The proclamation commemorated the anniversaries of the Declaration of Independence, the U.S. Constitution and the Bill of Rights and encouraged residents to study the nation's founding documents and participate actively in government.