Between a new public library, public safety building, Central Park improvements and dozens of road projects, a lot is on the horizon for the city of Bee Cave.

However, in the past three years, estimated costs have climbed from a total of $104 million to $158 million, giving city leaders pause as they head into budget season.

What happened

The Capital Improvements Plan, approved in 2021, identifies financial sources and timelines for 42 projects related to roads, pedestrian infrastructure, building and facilities projects through FY 25-26.

At a July 17 workshop, the council reviewed updates to the CIP with the intention of identifying new priorities going into FY 24-25, according to a staff report.

The breakdownAssistant City Manager Lindsey Oskoui said changes to project costs are often inevitable as each stage of design reveals more specific needs for the project.

Additionally, Oskoui explained that post-pandemic supply chain issues and inflation have been a large contributing factor to the soaring costs of construction.

A summary of notable cost increases within the presentation includes:

• $18.6 million increase in pedestrian bridges
• $14.9 million increase to Central Park improvements
• $13.9 million increase to new library
• $6 million increase to new police department
• $2.2 million increase to Brown Property project
• $2.2 million to Skaggs Parkway and Todera Blvd. extensions
• $2 million to Willie Way extension

While the original CIP envisioned the creation of a new city hall, the scrapping of those plans decreased estimated project costs by $10.6 million.

What they're saying

At a May 14 City Council meeting, Bee Cave Financial Advisor Chris Lane said a property tax increase wouldn't be necessary to fund the higher cost of the library project because of the city's high sales tax revenues.

However, at the July 17 meeting, council members expressed concerns that, compounded with other heightening project costs, a higher tax rate could be imminent.

The council also explored the idea of taking the public library and other "quality of life" projects in the CIP to a bond election.

"For me personally, I would be in favor of putting [the library] on the ballot in November to let the voters decide," Mayor Kara King said. "The cost is only going to go up if we wait a couple years."

King also mentioned that a transportation bond was likely in the next 18 months.

Ultimately, no action was taken at the meeting, but a further review of each project will take place in the coming months, City Manager Julie Oakley said.

What's next

The council is required to propose a new tax rate and budget for FY 24-25 by September.

If a general obligation bond is selected to fund the project, council would hear the ballot language sometime in August.