Dripping Springs officials discussed new developments, transportation and utility projects at a State of the City presentation on Jan. 28. Learn about what to expect this year in Dripping Springs.
Growth and Development
Several residential developments are in the works in Dripping Springs and the surrounding ETJ. (Courtesy city of Dripping Springs)Several neighborhoods and subdivisions are making progress in the Dripping Springs area, including:In addition to new housing developments, several businesses are putting down roots in the city.
Recently opened and upcoming businesses include:
Wastewater update
The city is in the process of expanding wastewater facilities, following a ruling by the Texas Supreme Court in April. The permit was originally approved by the Texas Commission on Environmental Quality in 2019, but was challenged by an advocacy group. Due to cost increases in the past seven years, the city needs $51.5 million in additional funding to complete the project. Dripping Springs has a pending application with the Texas Water Development Board.
Three water providers currently service Dripping Springs:
West Travis County PUADripping Springs Water Supply Corp.City of Dripping SpringsTransportation
Planning Director Tory Carpenter said that the key issue facing Dripping Springs is the bottleneck at Hwy. 290 and Ranch Road 12. Village Grove Parkway opened in late 2025 to help alleviate this issue.
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Hays County Precinct 4 Commissioner Walt Smith gave a presentation in October about upcoming road projects, which included Fitzhugh Road and the FM 150/Ranch Road 12. The transportation master plan, which sets guidelines for transportation projects and development, was adopted in 2021.
Tax Incentive Reinvestment Zones
The city is investing in several TIRZ projects with the goal of maintaining the vitality and community character of downtown. Renovations to the Stephenson Building are underway and are expected to be completed by November. The Mercer Street Paseo is designed to provide connectivity between Mercer Street, restrooms and adjacent buildings. The city expected to start construction around November as well.
The Mercer Street Paseo is slated to break ground in November. (Courtesy city of Dripping Springs)Additionally, the Old Fitzhugh Road Project is a two-year construction project that will improve road conditions, add raised sidewalks and plant trees along the roadway.
Finances
The total sales tax revenue for FY 25 was $4.96 million, a 6.27% increase from the previous fiscal year. (Courtesy city of Dripping Springs)Deputy City Administrator Shawn Cox presented key financial figures from last year, including total revenue, expenditures and property taxes. Some changes from FY 2024 include a 6.27% increase in sales tax revenue and a 8.55% decrease in hotel occupancy tax revenue.
Tourism
Tourism Manager Pam King outlined projects the city is funding and supporting to encourage visitors. One such initiative is the Stars of Dripping Springs public art project. In partnership with the Dripping Springs Art League and local artists, two phases of the installation have been completed, yielding 16 stars. The city is currently seeking sponsors for Phase 3.
Learn more
The State of the City presentation will be available online at www.cityofdrippingsprings.com.