Brittany Kelley
KYLE — Kyle City Council voted unanimously to approve its fiscal year 2025-26 budget and tax rate increase in the first of two readings at its Sept. 2 meeting.
According to the presentation by finance director Perwez Moheet, highlights of the budget consist of:
• $603.5 million total proposed budget
• $460.4 million in planned Capital Improvement Projects (CIP) spending
• $1.3 billion 5-year CIP spending plan
• 24 new positions
• Proposed property tax rate of $0.5957 per $100
• Rate increase for water and wastewater service
• 2.5% increase in solid waste service rates per contract terms with Texas Disposal Systems
There was also set to be an increase in storm drainage fees, but the council opted to remove it.
Following the presentation was the first of two public hearings for residents to voice their concerns or support of the items.
“This proposed budget and city’s debt picture paints a concerning portrait of obligations stacking up. You’re asking me to shoulder an additional $650 this year, considering all the possible tax and utility increases we will inherit by adopting this proposed budget … This isn’t about halting growth; it’s about growing wisely,” said Hometown Kyle resident Kenneth Rocha.
Another resident, Derek Van, took to the podium to state that the 77% increase in water fees for residents outside of the city limits is “over the top” and places a burden on them.
Additionally, earlier in the meeting, Van emphasized that “We love Kyle. We love the neighborhood, but it’s Texas, not taxes.”
During discussion, council member Miguel Zuniga, who initially suggested raising the grants given to the Hays-Caldwell Women’s Shelter and the Hays County Food Bank from $15,000 to $30,000, stated that, due to resident concerns, he is now suggesting to increase the grants by $5,000, instead of doubling them.
Despite this, council member Bear Heiser motioned to bring the amount to the original $30,000 for each organization, as previously discussed. It was seconded by council member Marc McKinney and passed unanimously.
Mayor Travis Mitchell made several comments on the budget, addressing the question of whether the city council is failing by increasing the tax rate and budget. He shared that at the time, residents stated that the most important thing to them was road infrastructure and improvement and the vote for the bond reflected that: “That was the easy vote. This is the hard vote. This is the vote that consummates that. It is to be noted that the tax rate could have been lower, except for the fact that the city council chose to defease $4 million extra in debt in order to build up the capacity needed to provide all $294 million in road bonds, without increasing the tax rate above the voter approved rate.”
“While I’ve been an advocate for fiscal restraint for a very long time, I took a vote to send [the road bond] to the voters and entered into a contract with them and they said, overwhelmingly, ‘Fix our roads’ … I would be very happy to not see reports of buses falling into potholes anywhere near the city of Kyle,” he continued. “This is my eighth budget to vote for. I voted for all of them. I’ve put my vote on every single one; I stand behind them. The first vote, the first budget was $78 million. So, we’ve come a long way between that vote and this one, but the city’s needs have also come a long way.”
Veering the conversation back to the drones requested by the Kyle Police Department was Heiser, who expressed his discomfort of supporting the funds for it without a data policy in place.
According to Moheet, there is $150,000 in the budget for a drone, as the second one is grant-funded: “If we are going to remove the drone program or put it on suspense, then I would recommend a motion to set aside $150,000 in general fund, and the grant fund, for whatever duration you want the chief to come back or the city manager to come back with a policy.”
Council member Robert Rizo stated that he is uncomfortable with delaying purchasing the drones and instead, they should simply not be operational until the policy is in place, since he is worried about funding going away or possible cost increases.
“I just have to agree with council member Rizo. I think that having drone technology is an innovation for our department and I wouldn’t want to compromise public safety,” said Zuniga. “I wouldn't want to purchase something that I’m not going to use. So, if they’re purchased, then they need to be utilized.”
“I don’t have the support to table this. So, I’ve read the room for multiple meetings now and I’m not just going to make you guys vote [on the drone program] to be performative,” Heiser concluded.
Both the budget and the tax rate was approved 7-0. A second reading will be held Sept. 16, along with a public hearing.
