The Kyle City Council approved a $45.36 million budget for Fiscal Year 2014 last week at a special called meeting.
City officials said the budget allows for all city programs and services to continue at their current levels and includes a new street maintenance program. However, the budget does not provide for any new employees or facilities.
The budget calls for a small property tax increase of 2.39 cents per $100 of taxable value, all on the debt service side, making the total property tax rate $0.5483 per $100 of taxable value. The Maintenance & Operations (M&O) portion of the tax rate remains $0.2703 per $100 of taxable value.
“I am very pleased with the work of the council and city staff in the development of this budget,” Kyle Mayor Lucy Johnson said. “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.”
The increase in property taxes will raise approximately $349,000 to cover debt obligations for the fiscal year. The obligations include the first series of six bonds contemplated for the $36 million road bond package approved by Kyle voters in the May general election.
“We worked very hard to be able to present a budget with no increase in the operations portion of the property tax rate,” Kyle City Manager Lanny Lambert said. “Our city continues to grow and generate new revenue through that growth, which is a key factor in allowing us to be able to keep our property tax rates steady.”
The increase in property taxes is expected to cost the average homeowner in Kyle $30.15 per year, or $2.51 per month.
The proposed budget also includes a 20 percent increase in water rates and a 10 percent increase in wastewater rates. These rate increases represent the third year of a three-year plan to bring revenues from the City’s water and wastewater utility into balance with the utility’s expenses.
Other rates that the city charges for various services will also increase approximately five percent in order to keep up with rising costs for those services.