Behrens clarifies 'misinformation' regarding city debt

City of Kerrville Director of Finance Julie Behrens began her presentation to the Kerrville City Council last week by saying she wanted to clear up “misinformation” regarding the state of the city’s current debt and clarifying how much debt is being repaid by property tax revenue and where that debt originated.

Specifically, she explained the only amount of debt being repaid by property tax is $12.8 million, $10.4 million of which was incurred in 2019 for city street replacement and drainage.

“Before we jump into financial update, I wanted to provide a little clarification, just regarding some questions I have fielded over the past few weeks and some things that are being shared in the community that are either questions or misinformation relating to our debt,” Behrens said.

Behrens said as of August 2021, the City of Kerrville overall debt obligations are $67 million, with water fund debt being $43.6 million, Economic Improvement Corporation debt being $10.6 million, neither of which is repaid with property tax revenue. General Service Debt, however, she said is paid with property tax, and that amount is $12.8 million.

Fast forward to April 2022, Behrens said the overall debt is now $65.5 million, with water fund debt at $42.6 million, EIC debt at $10.4 million and general debt service at $12.4 million.

“Some information about general fund debt, paid for with property tax, in 2019 we issued a $10 million debt piece for streets and drainage,” Behrens said. “Prior to that, the last debt piece that was issued in the general fund was in 2006, which was a $2.8 million piece for construction of Holdsworth Drive, so anything that’s happened in the general fund has been refunding or refinancing, which has allowed us take advantage of better rates.”