Agenda Item Report
Legislative Board: City Council
Date: September 1, 2026
Contact: Alicia Ramirez, City Clerk
Agenda Item ID / Number: 2026-673- / K.5
 
ITEM TITLE:

Deliberation and possible action to consider an Ordinance on first and final reading and to adopt said Ordinance amending the City of Buda Code of Ordinances, Chapter 8 Business Regulations; Article 8.04 sale of Alcoholic Beverages, Section 8.04.001 Permit and Permit Fee Required, to verify zoning associated with certificate of occupancy permits for establishments with alcohol permits (City Clerk Alicia Ramirez) [PUBLIC TESTIMONY]

 
 
1. EXECUTIVE SUMMARY

The City charges a local permitting fee for the sale of alcohol as allowed under State law.  As part of the certification, the City must certify and identify any legal nonconforming uses as the Unified Development Code (“UDC”) and zoning districts continue to be updated for the health and safety of the City’s residents.  The draft ordinance provides for the recent legislative changes and also allows the City to implement a Zoning Verification Permit to identify nonconforming uses. 

 
2. BACKGROUND/HISTORY

In 2012, the City held a local option election to sell alcoholic beverages in the city limits. The measure passed, and the City began charging one-half the state fee for a local permitting fee for the sale of alcohol, as previously allowed under State law. Due to the S.B. 1008 in the 89th Legislative Regular Session, new regulations prohibits a municipality from charging its own alcohol permitting fee for what is defined by the Department of Health and Human Services as a “food service establishment.”  

 
3. ANALYSIS

The draft ordinance provides for the legislative changes and adds a Zoning Verification Permit to identify nonconforming uses related to an Alcoholic Beverage Permit.

 
4. FINANCIAL IMPACT

The Zoning Verification Permit will be $100.00 for a new application and $50.00 for a renewal fee.  Related fees are for a two-year permit. 

 
5. STRATEGIC PLAN/GOALS
EXCEPTIONAL CITY SERVICES
 
6. STRATEGIC PLAN OBJECTIVES
NA
 
7. PROS AND CONS

Pros: 

 

Ensures the City best guarantees the health and safety standards of businesses holding a Certificate of Occupancy (“CO”), as found in Sec. 2.10.06 of the City’s Code of ordinances.

 

Cons: 

 

The City Council may deny the fee but still allow the City to charge one half the state fee.  

 
8. ALTERNATIVES

None.

 
9. REQUESTED ACTION / SUGGESTED MOTION / RECOMMENDATION
Staff seeks Council's directive to adopt or reject the Ordinance providing for the Zoning Verification Permit related to Alcoholic Beverage Permits.

 
Attachments:
 
Ordinance - Zoning Permit Buda Alcohol.pdf