Bee Cave EDC, City Council review strategic plan and fund balance; staff outline timeline

On March 25, 2025, a joint session of the Bee Cave Development Corporation (BCDC) and the Bee Cave City Council heard a budget and strategic-plan briefing from city staff outlining the EDC fund balance, known commitments and a timeline for completing a draft strategic plan.

Julie (staff member, finance) told the bodies that “at the end of fiscal year 24, there was $9,100,000 in fund balance,” and described the EDC’s near-term revenue assumptions and commitments. She said the annual sales-tax revenue budget for the EDC this year is $2,600,000 and that interest income recorded last year totaled $527,000; staff budgeted roughly $425,000 of interest for the current year. Julie said the combination of sales tax and interest leads to an anticipated annual revenue total of just over $3,000,000 but stressed those are preliminary estimates.

The briefing identified recurring operating costs and existing commitments. Julie said personnel costs were budgeted at about $519,000 and total operating expenses at roughly $708,000 for the fiscal year. She noted the budget includes a $500,000 placeholder for business development and relocation incentives and flagged the Kent Sports agreement as a major capital commitment: this year’s budgeted amount was $850,000 and about $2,200,000 remains on that agreement to be paid in coming years.

Julie summarized scenario planning for the fund balance: if current assumptions hold, the EDC could close the year with about $10,000,000 in fund balance and staff recommended keeping $900,000–$1,000,000 in reserves. She also said the city could issue $14–$15 million in bonds if the bodies chose to pursue borrowing for larger projects, which would carry an estimated annual debt service of about $1.2 million.

City staff and councilors discussed the forecast and the EDC’s role. Travis (staff member) confirmed sales tax was up about 6% year to date. President Haidt (EDC) and Council member Hite stressed the need to align the strategic-plan priorities with the available funds and recommended vetting project costs further before commitment. Kevin (director) framed the exercise as a refresh of previously identified projects and priorities rather than a first-ever review: “we're not…doing this in a very linear fashion,” he said, noting the EDC and council have previously identified projects that now need re-prioritization in light of available funds.

The bodies set a drafting timetable: staff will compile input into a draft strategic plan for the April EDC meeting, seek an EDC adoption in May, and present for city council adoption in June so final priorities can feed into the summer budget process.

Actions taken at the meeting were procedural: the board approved minutes from the regular session of Feb. 25, 2025, and later adjourned the joint session. (Motions and votes were recorded without named movers/seconders; the minutes-approval and adjourn votes passed by unanimous “ayes.”)

Why this matters: the EDC’s fund balance and existing contractual commitments will constrain what the EDC and council can immediately fund; staff proposed a conservative reserve level and scheduled a careful, multi-step review so the bodies can prioritize projects for inclusion in both the EDC and city capital budgets.

What’s next: staff will circulate a draft plan and a project-ranking survey; the EDC and council will review public input and return to formal consideration in April–June.