The city of Bee Cave intends to continue its $0.02 per $100 valuation property tax rate in fiscal year 2016-17, Mayor Caroline Murphy said during the Aug. 23 City Council meeting. The tax remains one of the lowest in the area as a result of the city’s extensive sales tax generation, she said.

Discussions on the city’s preliminary FY 2016-17 budget began July 26 for the new fiscal year that starts Oct. 1. Council is slated to approve the final budget plans Sept. 13.

Highlights of the Aug. 23 budget proposal include:

• Updates to the beginning general fund balance include a transfer from the general fund to debt service to account for the city’s purchase of the Skaggs tract on Bee Cave Parkway adjacent to the Hill Country Indoor sports facility under construction. During the meeting, City Council Member Bill Goodwin stated the city purchased property “as a possible place for city administration”
• General fund revenues are expected to total about $8.22 million for FY 2016-17, an increase of about $121,000 over FY 2015-16 and expenses are expected to total about $8.16 million, an increase of about $740,000 over FY 2015-16
• Hotel Occupancy Tax, or HOT, revenue is expected to be about $405,000 for FY 2016-17, an increase of about $205,000 over FY 2015-16. This tax may prompt council to create a committee to review spending requests and procedures
• Some capital improvement projects are anticipated to be carried over from FY 2015-16 to FY 2016-17 including carpet installation in the library and community rooms at City Hall.  A line item to repurpose the former dog park off Bee Cave Parkway was tabled Aug. 23 n lieu of a $30,000 expenditure for library improvement;
• The city’s streets assessment, completed in 2016, showed its infrastructure to be in very good condition overall. With funds accumulated in its road maintenance funds—consisting of a portion of Bee Cave’s sales and use tax collections—the city will continue minor repairs of about $55,000 to its streets in FY 2016-17. Bee Cave spent about $106,000 for these repairs in FY 2015-16; and
• An expenditure for court security and technology—in the amount of about $7,500 for two ticket writers—is expected for FY 2016-17.