by WES FERGUSON
The Kyle City Council on Tuesday gave preliminary approval of a budget that slashes spending and sharply increases taxes and fees.
Property owners can expect a tax rate hike of about 17 percent, to 48.45 cents per $100 of property value, while average monthly water bills will increase by about 30 percent, and wastewater bills will grow by 25 percent.
The budget also cuts spending on street maintenance, parks and recreation and City Hall administration. Money for the Kyle Fair and Music Festival, Halloween and Easter events and the Kyle Market Days is eliminated entirely.
City Council members voted 5-1 to approve the budget, then voted 5-1 again to approve the tax increase. Becky Selbera was the lone council member who voted against the two measures, although she said the budget was “awesome” considering the city’s difficult financial circumstances.
“My citizens are not able to pay higher water bills or wastewater bills, so that’s the reason I’m going to vote against this item tonight,” Selbera said, later adding: “For the sake of the citizens, I cannot vote for the increase on taxes. I’m just going to have to vote against it.”
Before they take effect, the new budget and tax rate will require a second round of voting scheduled for the next council meeting.
Property tax rates are set to increase nearly 7 cents per $100 of value in the next fiscal year. For the average home in Kyle, valued at $127,330, the city’s tax bill will be $617.
The budget of $37.1 million is about 12.5 percent smaller than the current year’s.
The austerity comes as the city of Kyle grapples with growing payments on $76.5 million in debt, as well as steep shortfalls in water and wastewater utilities. City leaders have also questioned the financial practices of their predecessors, saying they appear to have used borrowed money to pay day-to-day expenses.
Last month, the council even asked Hays County District Attorney Sherri Tibbe to probe the city’s finances. Tibbe declined to open an investigation, however, saying she had seen no evidence of illegal activity.
