Kerrville City Council voted 5-0 on first reading Tuesday to adopt both the Fiscal Year 2027 budget and a property tax rate of $0. 5995 per $100 of assessed value - the maximum "disaster" rate allowed under state law.

The disaster rate lets Kerrville calculate its voter-approval ceiling using an 8 percent growth allowance instead of the standard 3. 5 percent, a provision tied to this year's flood-disaster declaration.

City officials said the roughly $490,000 in extra revenue generated over the standard voter-approval rate will be transferred directly into the Capital Improvement Project fund for flood repairs, rather than absorbed into general operations.