Growth and development are two factors that have helped Dripping Springs city officials improve the net position by $743,000 for the year ending Sept. 30, 2016.
According to an independent audit conducted by Donald Allman, the city’s assets also exceeded its liabilities at the close of the fiscal year by $20.4 million.
Michelle Fischer, Dripping Springs city administrator, said the city’s expanding city limits, while also generating sales tax, has led to financial success. In addition, new building and platting fees have increased the city’s tax base.
According to a Census Bureau report, the city doubled the number of building permits from 2015 to 2016. The increase went from roughly 100 permits to 200 last year, Fischer said.
“A person from the Census called the other day after filing the report and said, ‘this is unbelievable, the growth you’re experiencing.'”
Michelle Fischer, Dripping Springs city administrator
New developments, such as the Headwaters, Arrowhead and Founders Ridge subdivisions, have helped the city.
While some developments are not in the city limits, Fischer said they are required to go through the city for building permits.
“That brings in platting fees,” Fischer said. “That’s been one of the biggest increases.”
But Fischer said the city hasn’t raised fee amounts, but instead has issued more building permits.
“We currently audit twenty-eight governmental entities, and the city of Dripping Springs remains the most financially successful of all the cities we audit,” Allman said in a statement.
Dripping Springs also had governmental funds increase by a combined $370,000. The city’s three governmental funds are the general fund, wastewater fund and debt services fund.
Helping drive the increase is the city’s ability to limit spending, Fischer said. She cited Gina Gillis, Dripping Springs city treasurer, who is “tough” on ensuring the city stays within budget.
“Every expense, we have to make sure it was authorized in the budget and comply with our purchasing policy we have in place,” Fischer said. “We’re careful and cautious to make sure people aren’t spending money that wasn’t authorized.”
Gillis said excess revenue found in the city’s general fund “goes back to support the citizens.” The money is projected to go into the city’s infrastructure plan, as well as the city’s reserve fund.
Fischer said funds could go toward the city’s plan for an expansion of Roger Hanks Parkway, along with other projects.
Currently, the city keeps a six month reserve balance for all funds.
But that wasn’t always the case, as the city, like many across the country, had to deal with the 2008 recession.
Fischer said the city slowly began to increase the amount in reserves until it got to a six month level.
Because of growth and development, Fischer said the city was able to stay in the black during the recession.
“We don’t see growth slowing down anytime soon,” Gillis said. “People love the Hill Country and the school system. It’s enticing for people to move to this area.”
Dripping Springs FY2016 by the numbers
- $20.4 million: Total amount of city assets that exceeded liabilities
- $13 million: Amount Dripping Springs has invested in capital assets
- $1.5 million: Amount Dripping Springs has in restricted capital assets
- $5.8 million: Amount Dripping Springs has in unrestricted capital assets
- +$743,000: Dripping Springs’ total net position increase from previous fiscal year
- +$370,000: Change in Dripping Springs’ governmental funds from previous year
