The Dripping Springs City Council has approved an operating budget of $30,414,062.84 in expenses for the fiscal year 2023, based on a new ad valorem tax rate of $0.1778 (per $100 valuation).
In August, the council proposed the new tax rate to match the voterapproved tax rate given by the county. Although the rate itself was lower than the previous $0.19 per $100 valuation, it will still generate more revenue than in 2021–2022. This means, effectively, the City of Dripping Springs is still increasing property taxes. The increase in revenue is, in large part, due to increased property values, new property construction and annexations throughout the previous year, according to the city.
In 2021, the median home price in Dripping Springs was $760,000, according to data from the Texas Realtors Association and the Texas A&M University Texas Real Estate Research Center. In May of 2022, according to the same data, the median home price sat at $950,000.
For a $950,000 home, Dripping Springs property owners can expect to pay about $1,689 in property taxes to the city under the new tax rate.
Meanwhile, the city’s new budget includes funding for numerous projects and programs designed to support the city now and in the future. Some of the highlighted projects include: Transportation: This budget provides almost $900,000 in roadway maintenance, repair and construction, funding the first year of the city’s Five-Year Road Maintenance Plan. The city has committed an additional $1,096,000 towards major transportation improvements, bringing a total of $1.996 million in road improvements.
Parks: Over $548,000 in Park Improvements is slated to be completed in FY 2023. This includes parking improvements and additional skate park funding at Founders Memorial Park, funding for future lighting improvements at Sports and Recreation Park and construction of park wayfinding signage at Founders Memorial Park and Veterans Memorial Park.
Utilities: The budget, for the first time, establishes a comprehensive Utility Fund which incorporates both wastewater and water operations.
Capital Projects: The adopted budget includes funding for numerous capital projects, including the remodeling of City Hall, rehabilitation of the Stephenson Building, downtown public restrooms and drainage improvements at the Dripping Springs Ranch Park.
“Due to the city’s traditionally conservative approach to budgeting, the city continues to be in a position of strength moving into the next Fiscal Year,” the city said in a statement. “The city has maintained reserves to handle economic uncertainties now and for future years.”
For questions, email communications@cityofdrippingsprings. com or contact the City of Dripping Springs at (512) 858-4725. To view the approved budget in its entirety, visit the city’s website at cityofdrippingsprings. com.
