Bee Cave City Council members approved a $3.7 million budget for fiscal year 2009-10 at Tuesday night’s regular meeting largely based on maintaining its 2 cent property tax rate and a projection of $5.19 in sales tax revenue over that time.

The city hit a budget crunch earlier this year when sales tax projections fell below its estimates that forced it to eliminate several staff positions and freeze hiring on unfilled positions.

The $5.19 million in projected sales tax revenue constitutes the bulk of the city’s general fund revenues. Property taxes would generate an estimated $163,000, building and development fees would amass $220,000, court revenue would net $205,000 and franchise fees would amount to $100,000. Total revenues would be almost $6 million.
However, the city will transfer $648,297 to road maintenance, $648,297 to the city’s 4B economic development budget, $902,000 to Chapter 380 payments and $92,250 to State Comptroller Payments for a net revenue of $3.7, which matches its budgeted expenses exactly.
Among its budgeted expenses, the biggest outlays will go to the police department at $1.22 million, administration at $427,004, support services at $421,053, $395,428 to bond payments, and $286,926 to community services.
No new capital projects are budgeted, and the city has set aside $119,838 in its budget to pay for any unexpected contingencies.
“I want to thank the staff for their hard work on this budget,” Mayor Caroline Murphy said.
Council members also approved a $195,135 Economic Development Board 2009-10 fiscal year budget.
To balance out a tumultuous 2008-09 fiscal year, the council amended that budget to authorize a draw of $575,000 from the city’s reserves to fund payroll expenses and accounting reconciliations.
Bee Cave officials had hoped reductions in the city’s workforce and a reversal in dropping sales tax allocation revenues would reduce the draw-down necessary, but the sales tax numbers did not recover sufficiently.
After several meetings and discussions, the council hammered out an agreement with developer CCNG Realty for the city to construct 520 feet of Bee Cave Parkway from Highway 71 that would be long enough to connect to the parking lot of the proposed CVS Pharmacy at the southwest corner of that intersection. Under the terms of the agreement, the city would cap its bid to let at $512,000 and CCNG would pay for 7 percent of the contract value and a detention pond. The firm also would assume responsibility for reversions on right-of-way agreements. If the bid exceeds the city’s maximum, CCNG would pay for the remaining costs. The deal is contingent upon the city receiving a $247,788 refund from the Texas Department of Transportation for 2007 bond funds the city paid for Phase II of the Bee Cave Parkway project.
The City Council set the target date for the opening of Bee Central Park for Oct. 15 after receiving a report indicating contractors are finishing off final work orders for the 58-acre park on Bee Cave Parkway. The council will set an official opening date at its Oct. 13 meeting.
In other action, council members:
• Approved a site plan amendment for Stadler Village Park, Lot 1, at Tennison Hill Drive and RM 224 to allow 1,878 square feet of interior floor space instead of the original 1,200 square feet that was planned for Building 2 of the three-building project.
• Approved a site plan amendment to allow Little Woodrow’s at the Shops at the Galleria to install a patio awning.
• Recognized Sept. 21-25 as Fall Prevention Awareness Week, which encourages people to learn about the factors that contribute to falls and strategies that can lessen the chances of a fall.