City budget approved; no property tax rate increase

The Dripping Springs City Council approved the fiscal year 2020- 2021 operating budget of $20,448,550, a number which reflects a balanced budget of revenues and expenditures. The council, knowing the economic challenges many could face due to COVID-19, balanced the budget with no increase in the property tax rate, keeping it at a 19 cents per hundred dollars of assessed valuation. Some of the additional budget dollars derived from Ad Valorem have come from new properties either built or annexed into the city which require additional services and expenditures by the City.

“The way that state law requires the way the city talks about its tax rate provides for looking at our budget and tax rate from both how much money a tax rate will raise and the actual tax rate amount that will be applied to residents,” City Attorney Laura Mueller explained. “For Dripping Springs, the overall amount of funds we will raise from our 19 cent tax rate will go up this year because of increased property values and from new properties being built, but the tax rate itself is staying the same at 19 cents.”

A public hearing for the proposed tax rate was held at City Council’s September 8th meeting. No one spoke against it and one person, Charlie Busbey, spoke in favor. “The city has kept their rate of taxation the same and I think that’s very fair,” Busbey said.

The budget includes several transportation and park improvements. Some of the highlighted projects include:

Transportation

This budget provides for $425,000.00 in roadway maintenance, repair, and construction. This is the first year that solid waste revenues will be used to increase the roadway budget.

The City remains committed to traffic relief and has provided for additional funds toward major transportation improvements

Parks

$172,000.00 in Park Improvements is slated to be completed in 2021. This is entirely funded by Parkland Dedication fees paid by developers to be used in developing park facilities.

Miscellaneous

The budget provides for the construction of downtown bathrooms to serve its citizens and patrons of the downtown area.

According to the city, with a traditionally conservative approach to budgeting, the city is in a position of strength moving into the next fiscal year. The city has maintained reserves to handle economic uncertainties now and for future years.

For questions, please email communications@cityofdrippingsprings. com or contact the City of Dripping Springs at 512-858-4725. To view the approved budget in its entirety, please visit the city’s website at cityofdrippingsprings. com. Select the budget and tax rate tab located at the bottom of the page.