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Dripping Springs council adopts FY 2025–26 budget and sets property tax at $2.2671 per $100
Summary
The Dripping Springs City Council on Sept. 16 adopted the fiscal year 2025–26 municipal budget and approved a property tax rate of $2.2671 per $100 of assessed value (M&O 0.185; I&S 0.0418), described by staff as a 2.24% increase. Council also approved a final FY 24–25 amendment and a resolution ratifying the budget.
Dripping Springs — The City Council adopted the fiscal year 2025–26 municipal budget and set the 2025 ad valorem tax rate at $2.2671 per $100 of assessed valuation during a special meeting Sept. 16.
Sean, a city staff member who presented the budget, told the council the packet before members reflected the final workshop version and that "still a strong balance forward going into FY 26." He said much of the budget’s revenues are ongoing operations, while specified transfers from parkland dedication and development landscaping will fund parks projects, including trail extensions and other DSRP (Dripping Springs Ranch Park) improvements.
Council moved the ordinance to adopt the FY 2025–26 budget and, after a roll-call vote, five council members recorded 'Yes' (Mayor Pro Temenosian; Council members King, Tawawa, Crow and Parks). The council also voted to approve a final FY 24–25 budget amendment that staff said captures end-of-year projections and to adopt a resolution ratifying the FY 2025–26 budget.
On the tax rate, Council member Manassian moved to "set a maintenance and operations tax rate of 0.185 per $100 and 0.0418 per $100 for the interest and sinking rate," which the motion described as effectively a 2.24% increase. The council recorded the same five 'Yes' votes and the motion carried.
Staff highlighted that some DSRP projects will be funded from non-tax sources such as hotel occupancy tax (HOT) revenues and parkland dedication funds; Sean noted an unanticipated additional sales‑tax payment added roughly $63,000 to FY 2025 receipts but said the city was avoiding over‑projection of revenues.
What happens next: The council’s adoption and ratification put the FY 2025–26 budget and tax rate into effect per the ordinance language. Staff told the council it would return to amend the budget if any significant additional "hot" revenues arrive before the close of the fiscal year.
Vote at a glance: The budget adoption, the FY 24–25 amendment and the resolution ratifying the budget were all approved by majority vote with recorded 'Yes' votes by Mayor Pro Temenosian and Council members King, Tawawa, Crow and Parks.
