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Llano council prioritizes water projects but flags $800,000 cost as budget risk
Summary
Councilors said water improvements should be the top priority but warned an $800,000 water package would push funds into a large deficit; staff outlined available reserves, EDC and golf revenue options and warned that rate changes or reserve draws would be needed.
At a budget workshop, the Llano City council and staff agreed water projects must be the top near-term capital priority, but members repeatedly warned that financing an $800,000 water package would create a substantial gap in the city’s operating and utility budgets.
"My opinion is obviously the water," one councilmember said during the prioritization discussion. Staff walked the council through fund balances and scenarios, reporting a projected available general-fund balance of roughly $667,000 before proposed changes and noting that the new table prepared by Finley and Kara added about $60,000. Multiple council members said using reserves, pursuing EDC support and seeking grants were options but stressed that sustained capital needs would likely require rate adjustments or other revenue measures.
Staff emphasized the capital program and grant prospects will determine how much rate pressure the city must accept. Council asked staff to return with clearer scenarios showing tradeoffs among using retained earnings, cutting expenses, and incremental rate increases so the council can reconcile priorities with a balanced budget.
