Lance Winter
WIMBERLEY — Preserving Wimberley’s small-town character, while preparing for growth, was at the center of Mayor Jim Chiles’ State of the City address during a Wimberley Valley Chamber of Commerce luncheon Wednesday, Aug. 19.
Chiles emphasized a balance of increasing tourism and infrastructure needs, with a desire to protect the qualities that make Wimberley distinctive. He discussed roads, water, parks, tourism, public safety and long-range planning, while emphasizing that the city continues to operate without a municipal property tax.
“We want to keep our quality of life,” Chiles said. “We want to keep the small-town feel as best that we can.”
That goal comes as Hays County continues to grow and planners project more people will call the Wimberley area home in the coming decades.
Chiles said the city’s comprehensive planning process includes population projections, housing and future land needs, transportation, public facilities, infrastructure and water. The planning effort is being supported by a $300,000 grant from the Texas General Land Office.
According to figures presented by Chiles, Hays County’s population is projected to increase from its current approximation of 335,000 to 575,000 by 2045, an increase of around 72%.
However, Wimberley’s growth has historically been much slower. Chiles said the city had approximately 2,600 residents when it incorporated in 2000 and has 2,900 today. Planning projections put the population at approximately 3,800 in 2045.
Chiles questioned whether Wimberley will actually grow that quickly, noting the city has no large housing subdivisions and issues only about 10 residential building permits annually.
“I’m not sure that I agree with that number,” Chiles said of the projection. “It seems kind of aggressive.”
Sales tax drives city finances
The mayor also discussed how Wimberley pays for improvements.
The city is one of only a handful of Texas municipalities without a city property tax, Chiles said. Its property tax rate is zero and he told those attending the luncheon that city leaders intend to keep it there, meaning that Wimberley depends heavily on sales tax revenue.
Chiles said the city is on pace for another record year and expects to collect about $1.7 million in sales tax revenue. The city also receives franchise and other revenues, along with income generated by parks and tourism.
The lack of property tax revenue, however, creates challenges when the city needs to repair streets or undertake other infrastructure projects, he said.
“So, when you go over some of those roads and the roads are kind of rough, just remember, you’re not paying the city property tax,” Chiles said, jokingly.
The city has increased spending on roads in recent years, budgeting roughly $500,000 to $600,000 for road repairs and improvements.
Chiles said Wimberley has also applied for a $750,000 grant that could significantly increase the funding available for road work. If awarded, the city could spend an estimated $1.4 million on streets next year.
Four roads are scheduled for improvements in the coming weeks: Climate Way, Valley Drive, Blanco Drive and Riverbed Drive.
Chiles said some Wimberley streets were not originally constructed to modern standards, leaving the city with the costly job of rebuilding them.
Old Kyle Road, parks and trails
Another major infrastructure project is the planned reconstruction of Old Kyle Road.
The project would eventually make part of the road one way and include continuous sidewalks and space for bicycles and pedestrians. Chiles said the project is being redesigned and is expected to move forward in 2027.
The city received approximately $3.3 million through the Capital Area Metropolitan Planning Organization for the improvements.
Chiles said the project should improve downtown accessibility, while eventually connecting with a broader Hays County trail network.
The city is also moving forward with plans for the Blue Hole Nature Center.
Wimberley received a $750,000 Texas Parks and Wildlife grant for the project, as well as $3 million from Hays County through its Parks and Open Space bond program. The city has applied for an additional $1.5 million grant. Plans call for a nature center with educational space and features, such as rainwater collection.
Chiles also discussed the city’s aquatic feasibility study, which was prompted in part by community interest identified through Wimberley’s parks planning process.
A community survey received 396 responses, with 75% coming from city residents. Chiles said 84% of respondents supported a future swimming pool, while 67% said they travel elsewhere for swimming opportunities.
Any future aquatic facility would likely require cooperation among Wimberley, Woodcreek, the school district and Hays County, he said.
Funding remains a major question. Only 13% of survey respondents supported using a property tax to help pay for such a facility, while 66% supported a bond, according to the presentation.
Remembering Martha Knies
Chiles also discussed planned improvements at Martha Knies Park and remembered Knies, an original member of the Wimberley City Council who played a significant role in obtaining the riverfront property that became the park.
The existing playground equipment, which Chiles said has been in place for decades and has developed safety concerns, will be replaced with a nature-inspired, ADA-accessible playground. The new playground will include a red-shouldered hawk design and other nature-themed features.
The city is conducting a fundraising effort that includes the sale of personalized bricks to help pay for the project.
“Martha would be proud of what we planned on putting in there,” Chiles said.
Tourism continues to grow
Tourism remains an important part of Wimberley’s economy.
Figures presented during the luncheon showed nearly 519,000 visitors through May 2026, about 22% more than the previous year. Hotel occupancy tax collections totaled approximately $537,000, which is an estimated 13% higher than the previous year.
Hotel occupancy tax revenue has helped fund tourism-related projects, including downtown lighting, murals and visitor services. State law limits how municipalities can spend those funds, preventing Wimberley from simply directing the money toward street repairs and other general infrastructure.
Wimberley had also collected more than $1 million in sales tax revenue for the year at the time of Chiles’ presentation.
Chiles said the city is preparing to use new technology that will provide a more detailed look at visitor patterns.
The software uses anonymized mobile-device location information to estimate how many people enter a geographic area, where visitors originate and how long they remain.
Preliminary figures presented by Chiles showed nearly 52,000-day trips and about 171,000 overnight trips to the Wimberley area during the previous 12 months. Overnight visitors stayed an average of 3.2 days.
Houston, Dallas and San Antonio were among the primary markets sending visitors to Wimberley.
“It’s a little bit amazing and scary, the data that they can get off these systems,” Chiles said.
The technology can also measure attendance at individual events.
Chiles said an analysis of Wimberley’s tree-lighting ceremony estimated roughly 3,900 people were in the town square at approximately 6 p.m. Visitors generally remained in the area for about an hour and a half.
City officials hope faster access to the data will help them understand tourism, special events and economic activity.
Managing short-term rentals
With tourism growth has also come discussion about short-term rentals.
Chiles said Wimberley currently has seven hotels, with 114 rooms and about 100 short-term rentals.
The city is considering changes to its short-term rental regulations, including eliminating new Type 2 short-term rentals — properties where the owner does not live on-site — in certain residential zoning districts.
Chiles said one concern is avoiding an oversupply, while also addressing problems that can arise when owners are not present.
The Planning and Zoning Commission unanimously recommended removing new Type 2 short-term rentals from the R-2 and R-3 districts, according to Chiles.
Water remains a priority
Looking ahead, Chiles identified infrastructure, health and safety, walkability, community connectivity and strong relationships with local and regional partners as priorities.
Water remains among the most significant long-term issues.
The city has joined Woodcreek, Hays County and others in seeking funding for water supply and infrastructure improvements. Chiles said the partners recently applied for a $10 million grant, although Wimberley would receive only a portion, if the application is successful.
Chiles expressed hope that changing weather patterns could improve rainfall conditions, but emphasized the importance of water conservation as demand on groundwater continues.
“There’s just too many straws in the ground,” he said.
A message to Wimberley’s future
Chiles closed with a look at a city time capsule buried earlier this year and scheduled to be opened in approximately 25 years.
Its contents include material commemorating the city’s 25th anniversary, annual financial and sales tax information, a previous State of the City presentation, the parks master plan, local newspapers and historical maps.
It also contains images documenting defining moments in Wimberley’s recent history, including the 2015 floods, the 2023 ice storm and the 2024 total solar eclipse.
The capsule serves as a record of a community that has changed considerably since incorporation, but whose leaders say they want to preserve what made it special in the first place, said the mayor.
Chiles shared with those attending that city officials understand that responsibility.
“We want to take care of the city and do the best we can and make sure Wimberley stays as unique and a wonderful place as it is,” he concluded.
