Ashley Kontnier
DRIPPING SPRINGS — At the Dripping Springs Chamber of Commerce luncheon, held Wednesday, Jan. 28, Dripping Springs Mayor Bill Foulds and various city staff discussed the current happenings in a State of the City presentation.
After a brief introduction from Foulds, Planning director Tory Carpenter began by giving an overview of city boundaries and explained to attendees the different levels of regulation the city has.
In the extraterritorial jurisdiction (ETJ) — the area outside of city limits that the city has limited control over — it can regulate things, such as subdividing, site development — impervious cover, water quality, tree preservation and sidewalk requirements — signage and hotel occupancy tax.
In addition to this authority, inside the city limits, the city has control over zoning and land use — parking, building setbacks, residential density and accessory dwelling units — building permits and inspections and outdoor lighting.
Carpenter then outlined housing development. According to his presentation, over the last six years, the number of new homes built per year has ranged from a low of 444 in 2024 to a high of 928 in 2021. In 2025, it is estimated that 469 new homes were built in the city.
Upcoming and ongoing developments include:
• Double L, with 2,231 lots and 250 senior multi-family units;
• Wild Ridge, with 863 lots;
• Cannon Ranch, with 375 lots;
• New Growth, with 245 lots;
• Ranch at Caliterra, with 234 lots;
• Village Grove, with 511 units; and
• Ariza Springs — in the ETJ — with 293 units
Carpenter discussed new and upcoming businesses, such as Oakwood Public Market, Smoothie King, Taco Bell, Dripping Springs Sports Club and Golden Chick.
“You may be saying, ‘But we already have a Taco Bell,’ but we don't just have a gas station Taco Bell. We have an actual standalone Taco Bell,” Carpenter said with a laugh. “If you're worried about not being able to go to the gas station and grab a bite to eat right after that, Golden Chick is taking the spot in the gas station.”
Short Mama’s, Roxie’s, Terra Cotta Botanical Boutique, The Sated Sheep and Face Alchemy will all be opening in or moving to downtown, as well.
Carpenter also quickly discussed Headwaters Station development and recent updates to the Landscape and Tree Preservation Ordinance, Building and Fire Code and Sign Ordinance.
Next up, the planning director provided an update on wastewater.
Carpenter reviewed the history of the city’s wastewater expansion plans, including the issuance of a Texas Commission on Environmental Quality permit in May of 2019. This permit was subsequently challenged, but in 2025, the Texas Supreme Court ruled in the city’s favor.
The city then identified that an additional $51.5 million is needed to complete the project, due to inflation and rising costs, so staff applied for a grant from the Texas Water Development Board, which is currently pending.
Despite this, construction of the wastewater line extensions has begun.
Rounding out his presentation, Carpenter discussed transportation.
“So, just to touch on our Transportation Master Plan, which was adopted in 2021. This generally shows when developments come to develop in Dripping Springs — if you have a subdivision or sizable development — these are the roads that are going to be built. So, we're starting to see that plan come to fruition, which is really exciting,” he said.
The Old Fitzhugh Road improvements are expected to begin in the next year, as well, but Carpenter clarified that this is not meant to move more cars through, as it is a revitalization project, meant to improve irrigation and create curbs and sidewalks.
Other projects include the FM 150 and Ranch Road 12 roundabout, which Hays County is working on, and the Texas Department of Transportation's US 290 widening project.
Finally for the city projects will be a revitalization effort on Mercer Street, which is not currently funded, but is in the early phases of discussion.
City administrator Michelle Fischer spoke about the Mercer Street Paseo — or walkway — which is in the works to connect the Mercer Street restrooms to the Stephenson Building and the warehouses in that area.
Additionally, she discussed the sunsetting of nonconforming outdoor lighting for businesses.
“In 2016, we did a massive rewrite of the lighting ordinance and, at that time, the city council decided that in 10 years, we would like to see all the commercial outdoor lighting comply. So, whatever was not compliant in 2016 when the new ordinance was adopted, will need to be brought into compliance,” Fischer explained.
Nonconforming lighting includes:
• Light trespassing onto a neighboring property.
• Sky glow lighting.
• Over lighting or more light than needed for an area.
• Glare.
• Luminaries rated at more than 3,000 Kelvin.
• Being on after curfew.
• Mercury vapor fixtures.
She explained that the city is working to educate property owners and willing to assist them in making a plan to become compliant.
“A lot of these lights can be very easily brought into compliance,” Fischer said. “You might go around your property and find [that you don’t know] what a light's purpose is, so you're just going to take it down- or you might want to replace it and, if you need to replace it, then we'll be able to help you all and give you resources and where you can get lights that comply with our ordinance.”
Andy Binz, parks and community services director, outlined recent park improvements in the city, which include:
• New outdoor arena at Dripping Springs Ranch Park — Ribbon cutting is scheduled for Feb. 11.
• Improvements to the pavement, new dumpster enclosure and speed bumps at Founders Memorial Park.
• New fencing around the soccer fields at Sports & Recreation Park.
• New plantings at the entrance and southeast corner of Sports & Recreation Park.
• New Free Little Library at Sports & Recreation Park, courtesy of Girl Scout Troop 44949.
Deputy City Administrator Shawn Cox provided a recap of fiscal year (FY) 2025.
According to his presentation, there was a 6.27% increase from FY 2024 in sales tax received, which totaled $4.9 million.
The hotel occupancy tax revenues were $1.1 million, an 8.55% decrease from FY 2024. This decrease is due to the city locating numerous short term rentals in the area that had to make up for lost payments in 2025, which resulted in a jump in revenues that is now expected to level back out, said Foulds.
Cox also touched on the new tax rate. For the first time, the city adopted not only a maintenance and operations (M&O) rate, but also and interest and sinking (I&S) rate. This change, which is a total increase of $0.04/$100 valuation, will help fund the bigger projects discussed, he said.
The final speaker was Visitor Bureau manager Pam King. In addition to upcoming events — Wedding Winter Showcase, which was rescheduled to March 8, and Songwriters Festival, which is tentatively scheduled for Oct. 16-18 — King shared an update about the Stars Of Dripping Springs Project.
In 2024, the city unveiled six decorated stars. There were 10 stars installed in 2025, including Ally Medical ER, Deep Eddy Vodka, Flying Fish, H-E-B, city hall and all five city parks.
King’s goal for Phase 3 in 2026 is to bring eight-10 new stars to the city.
“What that will do for us, I believe, is create a tour of stars for our city that will be a draw for people to come when they're staying and visiting, to tour our city and ETJ and visit a lot of different areas,” she said.
To see the full presentation, visit https://bit.ly/4te4Hbp.
