Dripping Springs staff outline FY2027 budget schedule and potential savings from under‑budget bids

City staff presented a detailed FY2027 budget workshop on June 16, saying a mix of project timing and lower‑than‑expected bids could reduce pressure on the city’s operating and utility funds.

Sean Cox, who led the presentation, told the council that several major projects—DSRP site work, the Stephenson building and parking lot, and Old Fitzhugh Road—are nearing completion or will move into FY2027. He said the February contract for a DSRP roof is essentially complete and that parks staff are conducting warranty walkthroughs, and that other capital work is tracking near budget.

Cox flagged the Old Fitzhugh Road project as budgeted at about $8.8 million and said the apparent low bidder came in “significantly under that” budgeted amount. He said staff and HDR are reviewing the low bid to confirm the numbers but that, if validated, the savings could be used to offset other projected transfers, including amounts the presentation described as contributing to the utility fund.

Council members asked for clarification about a referenced $2.5 million contribution for FY26 and how much of it is already assumed. A council member said much of the expectation rests on increased sales tax receipts; Cox said about $1 million of the assumed contribution is tied to projected sales tax receipts and that higher receipts would reduce the city’s additional burden.

Cox said the council will see a proposed budget filing on June 26 and that staff will present a deeper review of the general fund at a workshop later in the month. No formal action was taken at the workshop; staff said they will return with more detailed line‑item projections and explanations of how bid savings may be applied.

What’s next: staff will finalize projections, present the proposed budget to the mayor and council on the planned schedule, and bring specific appropriation recommendations before the council at upcoming meetings.