Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Municipal Budget topic
No spam. Unsubscribe anytime.
Bee Cave staff outline preliminary FY27 budget; sales tax supplies 78% of general fund
Summary
Finance staff presented a preliminary FY27 revenue forecast showing Bee Cave relies on sales tax for about 78% of general‑fund revenue, noted a shift toward residential taxable values, and said House Bill 9 removed roughly $38.2 million from the commercial tax roll.
Oakley, presenting the preliminary fiscal‑year 2027 budget on June 22, told the Bee Cave City Council that sales tax accounts for the bulk of the city’s general‑fund revenue and that staff were taking a conservative approach to forecasting while they refine estimates for volatile sources.
"78% of our budget is funded through sales tax," Oakley said while walking council through revenue line items, adding that sales tax is more volatile than property tax and that the city maintains strong reserves to manage swings. Oakley gave a preliminary sales tax range (presentation slide figures) and said staff planned to sharpen revenue estimates as they approach the formal budget cycle.
Oakley also described structural changes to the tax base. She said House Bill 9 expanded a business personal property exemption and removed about $38.2 million from Bee Cave’s commercial taxable value, affecting 726 accounts — a change Oakley cited as a substantial contributor to the recent decline in commercial taxable values. Oakley contrasted that with rising residential taxable values, noting the average taxable home value increased from about $766,000 to roughly $802,000 year over year.
The presentation broke down how the city’s 2% local sales tax is allocated (general operations, property‑tax relief, the economic development corporation and road maintenance) and displayed geographic concentration: Oakley said the Hill Country Galleria and the Shops together account for a substantial share of annual sales tax receipts, making revenue particularly sensitive to a small set of large taxpayers in those zones.
Next steps and timing: staff said appraisal district taxable values are due July 25 and that council will receive expenditure requests and the fund‑balance picture at a future budget meeting; council set a follow‑up budget discussion for July 14 and staff offered an optional one‑hour premeeting session to focus on budget issues before the regular council meeting.
The council did not vote on budget numbers during the workshop; staff described the revenue figures as preliminary and subject to revision as new appraisal and development information arrives.
