Kyle City Council Approves Budget for Fiscal Year 2022-23

     DATE/TIME: Thursday, Aug. 25, 2022  

     WEBSITE: www.CityofKyle.com/2023Budget  

KYLE, TEXAS – Kyle City Council unanimously approved the city’s budget for Fiscal Year 2022-23 at a meeting on Thursday, Aug. 25.       

The $212.6 million budget includes strategic investments in roads, parks and trails, new positions and equipment without raising the current property tax rate of $0.5082 per $100 of taxable valuation.  

The approved budget includes no increase in water service rates, wastewater service rates or storm drainage fees, and only a 2.49% increase in solid waste service rates per the city’s contract with Texas Disposal Systems. Other fees and charges for various city services remain the same.     

The City of Kyle's portion of a homeowner’s property tax bill is only about 20% of the total tax bill based on current tax rates. The other 80% of the tax bill is for property taxes charged by the other taxing jurisdictions including the school district, Hays County, emergency services districts, Austin Community College, conservation and ground water districts.  

The approved budget follows priorities City Council identified in budget work sessions. Those priorities included roadway improvements, park and trail system improvements, beautification and downtown revitalization.  

Council approved $124.8 million in total CIP spending for Fiscal Year 2023, including:  

• $86.9 million in road construction to build connectivity and capacity for the future  
• $9 million for improvements to parks and trails  
• $11.2 million for economic development and revitalization of downtown  
• $7.6 million for water system utility improvements  
• $8.9 million for wastewater utility system improvements  
• $1.2 million for storm drainage improvements  
• $156,600 in funding for the Senior Activity Center  
• $65,000 in funding for Arts in Public Places  

A key component of the budget is the $60.1 million for the General Fund, that provides services like parks and recreation, public safety, planning and the Kyle Public Library.    

The approved budget also includes significant investment in the city’s labor force to recruit and retain quality staff that in turn will provide gold standard service to residents, businesses and visitors. Those investments include:  

• 55 new positions throughout the city,  
• 20% general wage increase for all non-civil service employees.  
• 14.4% average step increase over a 3-year contract period for all civil service employees.   
• New Meet and Confer agreement, which will allow the city to grow the public safety capacities and to recruit and retain quality officers.  
• $1,000 to all employees to offset out-of-pocket medical expenses to start January 2023.  
• $300,000 for pay parity adjustments.  
• Continuation of all other benefits including 2:1 contribution by the city to retirement plans.  

The City Council conducted a total of five budget workshops that included public hearings where residents were able to communicate their concerns about the budget to the council. The council also heard presentations from city staff on each department’s proposed budget.   

“The city council and city staff understand and accept our responsibility to be good stewards of the city’s finances, especially the tax money that we receive from our hard-working residents and businesses,” Acting City Manager Jerry Hendrix said. “We also realize the importance of planning for the future. This budget reflects our commitment to those responsibilities and our promise to make every cent count.”  

Due to economic development, strong sales tax revenues and other fees, the owner of an average homestead valued at $338,506 will pay $143.36 per month in property tax to the City of Kyle.    

More information is available about the Budget for FY 2022-23 at www.CityofKyle.com/2023Budget.