Dripping Springs council reviews FY2025 budget, hears Ranch Park plans and asks for debt-service breakdown

City staff opened the Aug. 6 meeting’s budget discussion by noting a puzzling result from the tax assessor-collector: the no-new-revenue tax rate exceeded the voter-approval rate, and staff will use the higher of the two rates for planning until reconciled.

Sean (staff) outlined revenue and balance-forward adjustments, including a $38,000 ad valorem adjustment tied to the assessor’s figures and carryovers from FY2023. Staff flagged an $11 million list of proposed projects that they expected to refine; council asked for a clearer breakout of that total and a five-year plan to assess long-range impacts on tax rates.

Emily Nelson, manager of Dripping Springs Ranch Park, presented programming results and capital needs. She described a phased approach to add a covered pole-barn arena, which she estimated could cost between $350,000 and $400,000, and noted the park is seeking grants for the arena, reflective roof coating (half-roof repairs estimated about $62,000; full reflective coating $100,000–$150,000) and HVAC/lighting controls that would allow remote management and reduce energy waste.

Council members pressed for a financial analysis showing projected revenue to justify capital spending and for more detail on weather-related site-prep costs. One council member said that if the math does not show a path toward break-even in a reasonable period, they would question the investment.

Staff also discussed use of the hotel-occupancy-tax (HOT) transfer to support improvement projects and noted the DSRP (Ranch Park) projections; the council and staff agreed to provide more detailed spreadsheets and comparables at the next meeting to enable informed decisions on debt service and capital priorities.

No final budget adoption occurred at the meeting; council scheduled follow-up work and a public hearing for the proposed tax rate at a later date.