Kerrville staff seek EIC support for city economic development manager; board requests more details and timing

City of Kerrville staff asked the Economic Improvement Corporation on Feb. 1 to consider funding a new economic development manager position that would be housed in the city organization and focus on retail and small-business engagement.

City Manager Dalton Rice told the EIC board the role is intended to fill a gap between community development activities the city already does and the larger, primary-job focus of the Kerrville Economic Development Corporation (KEDC). “This is trying to offset and do something different that we’re trying to focus on with city council,” Rice said, describing the role as “relationships and collaboration” with small businesses and Main Street merchants.

Rice requested approximately $120,000 a year to cover salary and benefits and asked that the EIC fund that amount on top of existing KEDC funding rather than reduce KEDC’s current allocation. Rice said the city would reallocate some EDC-related operational tasks in-kind and pursue internal resources to lessen the cash burden.

Several board members raised concerns about timing, annual ongoing commitments and oversight. Greg (stated as a banker on the record) and other board members said EIC already has multiple long-term commitments tied to the 2023 quality-of-life bonds and that committing a new ongoing payroll expense during several tight fiscal years would constrain grantmaking and other activities.

Board members asked for a clearer, next-year KEDC budget and what KEDC’s future staffing model will look like before agreeing to new funding. Several members suggested the board should see metrics that define success for the proposed position, for example measurable business retention/expansion activity, recruitment outcomes, incremental sales-tax growth or downtown occupancy measures.

Todd Bach, interim executive director for the KEDC, said the KEDC board is in transition, that recent staff turnover left open questions about the organization’s size and mission, and that the EDC has active projects in process despite the transition. Bach said the KEDC hoped to return a formal strategic recommendation to stakeholders in March.

Board members discussed options including funding half the request, funding the full amount only after KEDC stakeholders confirm their budgets, reassigning the current KEDC manager’s responsibilities, or waiting until the EDC and KEDC present a joint staffing and budget plan. No formal funding vote was taken; a board member recommended tabling the request and asking staff to return with a) a revised KEDC budget that shows proposed staffing and costs and b) concrete measurable benchmarks for the city position.

Next steps recorded during the meeting included city staff outreach to stakeholder boards (county commissioners and KPUB were specifically mentioned) and a request from EIC members for the KEDC board’s near-term budget and a clear set of performance metrics before the EIC considers committing new ongoing funds.