By Andy Sevilla
As Kyle’s population continues to expand, with no end in near sight, city leaders are struggling to keep up with expected services and much needed infrastructure improvements demanded by a growing citizenry. And now, as the new fiscal year begins to peek its head, Kyle is poised to have the highest property tax rate in Hays County and a principal debt of more than $70 million.
Kyle’s principal debt equals $70.55 million, plus $28.78 million in interest for a total of $99.33 million owed.
The newly approved $45.36 million budget for fiscal year 2013-2014 (FY2014), which council members OK’d last week, will raise property taxes to cover the cost of the first series of six bonds that will be issued for a $36 million road bond project voters approved in May.
Faced with crumbling roads, mobility issues and safety concerns, Kyle took to the streets and asked voters to weigh in on a proposed $36 million road bond set to reconstruct Bunton Creek, Burleson, Goforth and Lehman roads, as well as extend Marketplace Avenue. All of these streets were identified as priority projects in a city visioning process in 2012.
Voters green lighted the project, and now, as FY2014 creeps in, residents will begin to feel the first pinch in their pockets.
The FY2014 budget raises the property tax rate to $0.5483 per $100 of property valuation, up from $0.5244 cents. That increase is expected to raise the annual tax bill for the average Kyle homeowner by $30.15, or $2.51per month.
And, as planned, the new budget will also raise water and wastewater rates, along with an increase to miscellaneous city fees.
The new property tax rate will raise approximately $349,000 to help cover debt obligations for FY2014. Included in those debt obligations is the first series of the bonds for road projects.
Water rates will increase by 20 percent and wastewater rates will also climb by 10 percent - these increases will culminate a three-year plan aimed at balancing the utility’s expenses and revenues. Other rates Kyle charges for service will also increase by about five percent “in order to keep up with rising costs for those services,” according to a city news release.
Once FY2014 takes hold on Oct. 1, the city will begin its new year with an estimated $70.55 million in outstanding principal debt, which represents a 9.6 percent or $498,523 net increase from the current fiscal year.
With interest factored in, Kyle’s total debt will be $99.33 million.
Kyle will have to dole out an estimated $5.69 million in total debt service payment for FY2014.
The new budget does not add police officers nor personnel to the city staff, despite most departments’ expressed need for more employees. City staff, however, will receive a 1.8 percent cost of living adjustment (COLA) to their salary. A 1.7 percent merit pay increase will be available for distribution. The new budget also sets aside $100,000 to implement a new street maintenance program.
“I am very pleased with the work of the council and city staff in the development of this budget,” said Kyle Mayor Lucy Johnson. “We’ve come a long way in terms of getting our fiscal house in order over the past couple of years and I think this budget provides a great value of services for our citizens.”
But not all council members saw the value in the approved budget. Council member Becky Selbera voted in opposition, including the increased property tax rate and water and wastewater rates.
Selbera – who did not raise red flags during the council’s five budget workshops nor present budget cuts aimed at offsetting increases in property taxes and water rates - advocated reinstating the city staff Christmas party, which costs around $20,000. She did not offer an explanation to her dissenting vote during discussion. Selbera also submitted a request the city to purchase an iPad for her to deal with the public’s business, according to city officials.
Council Member Samantha LeMense has fought to move toward a paperless agenda, reducing printing costs. She and Council Member Chad Benninghoff have city-issued iPads.
Selbera did not return a call seeking comment on her opposition to the city’s approved FY2014 budget.
“Approving a city budget that is responsive to the needs and expectations of our citizens in probably the most important job of the city council,” Johnson said. “By making this budget process as open and transparent as possible, I think we were able to achieve that goal.”
