Marble Falls: How a 7,900-person city built an $87M growth strategy
Fiscal discipline, healthcare anchors, and a $121K regional market position Marble Falls as the Highland Lakes hub.
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B.L.U.F.: Marble Falls is executing a controlled growth strategy with $87M in active capital projects while maintaining fiscal discipline. The city leverages tourism, healthcare, and light manufacturing anchors to serve a 121,000-person regional market, positioning itself as the Highland Lakes economic hub with immediate opportunities in professional services, healthcare support, and niche manufacturing.
Marble Falls operates at the intersection of strategic location and demographic momentum.
Positioned 50 minutes from Austin and 90 minutes from San Antonio, this ~7,903-person city commands a regional trade area of 121,000 people, generating $3.6 million in daily sales activity. The convergence of major infrastructure investments, controlled property tax rates, and a robust development pipeline creates a compelling case study in small-city economic development execution.
City Financial Profile
FY 2025–26 proposed budget: $123.5M in total expenditures, split 53.2% governmental funds and 46.8% proprietary funds, reflecting a strong utility-driven revenue base.
Revenue model: Property tax rate steady at $0.535 per $100 valuation; robust growth in assessed values is driving new revenue without raising the rate.
Debt management: $45.3M in financing and grant support is committed to flood-control and wastewater infrastructure, with additional bonded capacity available; city continues to access favorable municipal credit markets.
Capital investment: $87M in active projects, including the $42M Ophelia Hotel, $45.3M wastewater treatment relocation (doubling capacity from 1.5 MGD to 3.0 MGD), $3.9M San Jacinto Office Park, and $3M Thunder Rock Sports Complex.
Reserves: General Fund unassigned balance of $8.2M (approx. 34% of annual expenditures), well above the city’s 25% reserve policy target.
Takeaway: Marble Falls is leveraging steady tax rates and a growing property base to fund transformative infrastructure while maintaining disciplined reserves. The city’s ability to secure grant-backed debt for flood infrastructure, paired with record permit activity, shows both fiscal sophistication and strong private sector confidence.
Economic Drivers
The city's economy centers on education, healthcare, and tourism anchors while building toward professional services and light manufacturing diversification.
Employment base: Marble Falls ISD (694 employees), Baylor Scott & White Healthcare (588), and Horseshoe Bay Resort (670) form the employment trinity, supported by national retailers HEB (450) and Walmart (255).
Healthcare cluster: Baylor Scott & White expansion plus Granite Mesa (105 employees) creates healthcare employment concentration serving the broader Highland Lakes region.
Tourism infrastructure: $42M Ophelia Hotel & Conference Center (127 rooms, 10,000 sq ft meeting space) under development, representing major hospitality sector investment targeting the regional conference market.
Manufacturing presence: Texas Materials (100 employees) and JM Huber (58) provide industrial employment base; city targeting light manufacturing expansion in Business & Technology Park.
Regional trade hub: City generates $3.6M daily sales serving a 121,000-person regional market, indicating strong retail penetration beyond city limits.
Economic diversification: Unemployment consistently around 3%, median household income $55,511, demonstrating economic resilience across multiple sectors.
Takeaway: Marble Falls has successfully built a diversified economic base anchored by "eds and meds" while capturing regional retail trade. The Ophelia Hotel project signals serious intent to compete in business tourism, while manufacturing presence provides a foundation for expansion.
Business Climate and Growth Indicators
Zoning framework: Comprehensive 2018 development code update created modern zoning districts including Business/Industrial Park (BP), Downtown (DN), and General Commercial (GC) classifications supporting mixed-use development.
Development pipeline: Active projects include San Jacinto Office Park (26,997 sq ft), African American Museum (2,494 sq ft), and Bella Sera restaurant expansion (3,245 sq ft addition), demonstrating diverse development interest.
Business parks: 300-acre Business & Technology Park fully served with utilities and streets, direct US 281 access; Gateway Business Park, Industrial Boulevard Park, and Commerce Business Park provide varied development options.
Permitting efficiency: Development Services Department provides integrated planning, building inspection, code enforcement, and GIS services under a single departmental structure.
Infrastructure capacity: Recent $25M downtown parks improvement plan, ongoing waterfront development, and strategic utility investments support development readiness.
Land availability: Active EDC land sales in Business & Technology Park with 3.75-acre tract sale to Chris Ruoff pending, indicating continued developer interest.
Takeaway: Marble Falls has created a business-friendly development environment with modern zoning, available land, and infrastructure capacity. The city’s integrated development services approach and active EDC land sales demonstrate commitment to efficient project delivery.
Opportunity Gaps
Based on demographic trends, infrastructure investments, and market positioning, three immediate business opportunities emerge for entrepreneurs:
Professional Services Hub: Growing retiree population (median age 35.6 but significant 65+ demographic) combined with a $42M conference center creates demand for legal, accounting, consulting, and financial services. The 121,000-person regional market is underserved in specialized professional services, creating opportunity for firms targeting both local residents and business visitors.
Healthcare Support Services: Baylor Scott & White’s 588 employees plus Granite Mesa’s 105 create a healthcare cluster requiring ancillary services. Opportunities exist for medical equipment suppliers, specialized transportation, home healthcare, and outpatient therapy. The regional market size and aging demographics support expansion beyond current provider capacity.
Light Manufacturing/Assembly: The 300-acre Business & Technology Park with full utilities and US 281 access provides an ideal location for companies serving the Austin-San Antonio corridor. Target sectors include food processing, building materials, and automotive parts. The city’s controlled growth approach and available workforce support cost-competitive operations with metro proximity.
Takeaway: Marble Falls offers immediate opportunities for entrepreneurs who can serve the intersection of growth demographics, regional market needs, and infrastructure advantages. The key is matching business models to the city’s role as a regional service center with growing tourism and business travel components.
Closing Statement
Marble Falls exemplifies strategic small-city economic development, leveraging location, demographics, and infrastructure investments to create sustainable competitive advantages.
The city’s fiscal discipline, combined with major tourism and infrastructure projects, positions it to capture regional growth while maintaining the quality of life that attracts both residents and businesses.
For those of you who are in comparable Texas cities, Marble Falls demonstrates how controlled growth, strategic public investment, and regional market positioning can create outsized economic impact relative to population size.
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