Megan Navarro
DRIPPING SPRINGS— In its sixth budget workshop of the season, Dripping Springs City Council reviewed its debt service during the Tuesday, Aug. 4 meeting.
Series 2013
Series 2013 is more of a private placement debt that the city of Dripping Springs took out, utilizing Hotel Occupancy Tax (HOT) funds for the payoff of the Dripping Springs Ranch Park addition, explained deputy city administrator Shawn Cox.
The city is projecting Series 2013 to end fiscal year (FY) 2026 with $202,353 in revenue and $90,375 in expenditures and then, the proposed numbers for FY 2027 are $203,506 in revenue and $92,055 in expenditures.
The initial debt was for approximately $1 million and is anticipated to be paid off in September of FY 2028, Cox said.
Series 2015
The initial debt for Series 2015 — wastewater impact fees — was $7,410,000 and was paid off in June 2026: “I was very happy to pay that one off, as we were getting a third one coming up,” Cox said.
Series 2019
Series 2019 was a Texas Water Development Board (TWDB) grant for $23,500,000 — with a rate of 0.3516% — that the city is paying through impact fees.
The series is projected to end FY 2026 with $2,222,999 in revenues and $1,073,553 in expenditures. Proposed numbers for FY 2027 include $2,193,799 in revenues and $1,103,553, according to Cox’s presentation.
“It is callable in 2040, so we'll be going back through the arbitrage with that in the next few years to see if there's any savings we can have on that, but it is the first big one that we had from the water development board,” the deputy city administrator said.
Series 2022
The second large grant from TWDB was issued in 2022 for $19,895,000 and is expected to close out in September 2042. The grant’s rate is 1.8137426%.
According to the presentation, similar to 2019, the city is projected to end FY 2026 with $2,222,999 in revenues and $1,073,553 in expenditures. Proposed numbers for FY 2027 include $2,193,799 in revenues and $1,103,553.
Series 2024 and 2025
Debt service for series 2024 and 2025 are tax-funded, Cox explained.
So, for series 2024, that is for the purchase of the Pedernales Electric Cooperative building and the property located behind it. The issuance amount for the property acquisition was $2,500,000 at a 4.44% rate; the expected close out is September 2030.
“We debt-funded the back portion [and] we cash-funded the front so that we could utilize our ad valorem to pay that off,” Cox said.
Series 2025 is for the Tax Increment Reinvestment Zone projects, such as the Stephenson Building and parking, Old Fitzhugh Road, maintenance facility, street improvements, etc. That is issued at $13,345,000 with a 1.8137426% rate and close out date of September 2043 and is callable in 2034.
Council will meet next at 5:30 p.m. Tuesday, Aug. 18.
