The City of Kerrville has received welcome financial news that should help staff and council address needed improvements to the city’s water and wastewater systems.
In November, the council authorized refinancing up to $20 million in outstanding debts.
Anne Becker Entrekin, managing director of Hilltop Securities, reported to the city council Tuesday that the refinancing had accomplished a gross savings of almost $1.7 million in debt service costs over the next 13 years.
Entrekin noted that in reaffirming Kerrville’s credit rating of “AA/stable outlook,” Standard & Poor’s commented that the city had “very strong management, with strong financial policies and practices.”
City Manager Mark McDaniel said the results of that refinancing, and a pending restructuring of payments on a $7.5 million loan from the Kerrville Public Utility District, will allow the city to proceed with two much-needed projects.
Those are removing total trihalomethanes (TTHMs) from the water supply system and adding a lift station at Legion on the wastewater system.
“We’re working on some scenarios for you all on what that might look like going forward,” said McDaniel.
The city is under a Texas Commission on Environmental Quality enforcement action regarding TTHMs, a byproduct of the chlorination process. The council has directed staff to pursue using granulated activated carbon filtration to fix the problem, and it has estimated the cost at just over $4 million.
Building a new lift station at Legion has an estimated $7.8 million price tag.
In another item of business Tuesday, the council unanimously gave City Manager McDaniel “a strong vote of confidence” following his annual performance review.
McDaniel, who was an assistant city manager in Dallas before coming here, started work on May 1.
The council also took the following actions:
- Lowered the annual fees for brewpubs from $1,500 to $150.
- Changed the composition of the Library Advisory Board to give Kerr County one representative.
- Approved annexation of just under eight acres at 5263 Highway 27 East, as part of an economic improvement agreement with Fox Tank Co.
- Approved an annual administrative services contract with the Kerrville’s Economic Improvement Corporation.
- Reappointed Municipal Court judges M. Patrick Maguire and Mark Prislovsky.
- Appointed Gary Aamodt Jr., Ruben Molina, and Martina Ortega