After falling sales tax revenues sucked the City of Bee Cave into an economic whirlpool, city leaders are hoping for improved fiscal fortunes in 2010.

Bee Cave plugged the financial shortfalls in 2009 by cutting several staff positions delaying road projects and lowering sales tax estimates and charted a conservative course for this fiscal year.
“Right now, we are holding on and trying to ride out the storm,” City Manager Frank Salvato said.
City Council and staff members projected a 5 percent drop in sales tax figures this year, which is still lower than what they forecast in last year’s budget.
The city’s budget for this fiscal year anticipates $5.17 million in sales tax revenues, which is 86.5 percent of the total projected revenues. Its property tax revenues comprise 2.72 percent of its estimates on an operating budget of $3.71 million that includes road maintenance, 4B Corporation and Chapter 380 development obligations.
“We are just [hoping] that 5 percent is enough and … there is an uptick in the economy,” Salvato said.
Work continues on two road improvement projects at the Hamilton Pool Road-Texas 71 intersection, including the 400-foot Bee Cave Parkway Phase IIIa extension, but other plans are on hold, such as the Bee Cave Parkway Phase III project.
A sense of urgency surrounds the Phase IIIa extension that travels north from Texas 71 at Hamilton Pool and will eventually tie into the CCNG retail development that will include a CVS/pharmacy location.
If the city doesn’t start building the road section in the coming months, the road easements and right-of-ways along that stretch could revert to previous property owners rather than remain city property.
Drivers have experienced traffic backups in this area, but Salvato said the upgrades are a necessary evil.
“Unfortunately, improvements to highways cause delays, but in the long run they are worth it,” he said.
Several city departments are working with smaller staffs, frozen salaries and benefits and fewer expenses.
The city’s police department is getting the most out of its patrol cars, and the library is holding off on new book purchases.
“There are needs that the staff has agreed that we need to cut back on because of the downturn in the economy,” Salvato said. “Our hope is that things pick up and maybe we can open the door a little bit.”
Some projects offer reason for optimism.
The city’s 2-cent property tax rate continues to catalyze residential development growth. Several homebuilders in Falconhead West are reporting their home sales have picked up despite the bleak market.
In December, City Council members also approved the Cottages at Spillman Ridge, a 51-unit condo development, and a steady stream of applicants is still coming in to pick up site plats.
“I have talked to a few homebuyers that have purchased here, and they have looked at Bee Cave because of that [2-cent rate]. There is a substantial savings annually,” Salvato noted.
The Backyard amphitheater’s re-opening, which is scheduled for this spring, and addition of Maudi’s Tex-Mex restaurant and Newflower Farmer’s Market reflect the city’s attractive demographics and natural setting.
Hill Country Galleria’s ongoing bankruptcy case is set for resolution this month, and Salvato said that a buyer may be found soon.
“I think that would help the Galleria, and we are looking forward to getting that settled for the next fiscal year,” he said.
If other development plans in the works, such as a hotel-resort in the Falconhead area, come to fruition they could help kickstart the city’s cash flow.
“There’s a lot of projects out there that we hope the economy will spur on to develop when it turns around,” Salvato said.
In the meantime, the city is staying afloat.
“We’re just keeping the doors open and waiting for the [economic] turnaround,” he said.