Kyle City Council adopts budget, tax rate for 2023-24

KYLE — Kyle City Council unanimously approved the budget for the 2023-24 fiscal year at its Sept. 19 meeting.

The city’s budget, as presented by Kyle Director of Finance Perwez Moheet, consists of an estimated $198,177,592 in total revenue and an estimated $272,515,303 in expenditures. The focus areas of the budget included increasing community engagement, economic development and small business retention, enhanced public safety, increased street maintenance and rehabilitation, strategic planning, organizational excellence and a market-based employee compensation and benefits program.

According to a memorandum, there are 10 highlights of the budget, including:

1. The addition of 33 new positions, for a total proposed workforce of 390.

2. For budget development purposes, the property tax rate is assumed at $0.5082 [per $100 of taxable assessed valuation in the interim]. This assumption is subject to change after the 80-step complex tax rate calculations are completed and certified by the Hays County Tax Assessor-Collector based on certified assessed valuations prepared by the chief appraiser of the Hays County Central Appraisal District. New property tax rates will be forwarded after receiving the information.

3. There will be no reduction in city services.

4. There will be no change in water service rates.

5. There will be no change in wastewater service rates.

6. There will be no change in storm drainage fees.

7. There will be a 2.52% increase in solid waste charges per contract terms with Texas Disposal System.

8. $2.4 million in funding for new and replacement fleet and other equipment.

9. $176.5 million in funding for Capital Improvement Program for fiscal year 2023-24, including $70.4 million from cash funding.

10. The addition of eight new fees, limited other changes in other fees and charges for miscellaneous city services.

“I just want to say that [Kyle City Manager Bryan] Langley came after we had already started the process [for the budget] and had to learn the city, had to learn the staff, had to learn the budget and had to figure out council’s will and priorities and put all of it together. I think Mr. Langley did a fantastic job,” said Mayor Travis Mitchell. “Also, kudos to staff for being such a great group, preparing and working through all the various interests.”

Council also voted to approve a Reclaimed Water Master Plan from Cobb, Fendley & Associates Inc. after creating a task order in 2021, followed by an update to it in 2022.

Through reclaimed water, the city can replace the use of potable water for irrigation, decrease the discharge of the Wastewater Treatment Plant and provide a more cost-effective water source for any non-potable water-related needs, according to Stanley Fees, project manager at Cobb, Fendley & Associates Inc.

The proposed plan includes identification of irrigation customers and water demands, evaluation of the existing reclaimed water system, a layout of proposed reclaimed water distribution, review of requirements and necessary system upgrades, construction phasing and estimated costs and a proposed fee based on other Central Texas rates.

In the plan, there are four phases of construction across the city, which would total an estimated $110,172,192.30. Initially, a 30-year proposal was presented, but Langley suggested looking at rate plans to advance the construction on a faster timeline for next year’s budget.

Kyle City Council will meet for its regularly scheduled meeting at 5:30 p.m. on Oct. 2.