Kyle City Council approves $365M budget

KYLE — Kyle City Council approved the fiscal year 2024-25 budget and tax rate at its Sept. 3 meeting. According to finance director Perwez Moheet, the summary of the budget was as follows: • Total budget: $365.3 million • General fund: $83.1 million • Capital Improvements Plan: $248.5 million • 5-year CIP spending plan (fiscal years 2025-29): $848.4 million The city’s budget is based on the proposed property tax rate of $0.4693 per $100 assessed valuation, with $0.2889 for maintenance and operation and $0.1804 for interest and sinking. The discussion began with council member Bear Heiser requesting the additional $15,000 to the Hays-Caldwell Women’s Center, which was also approved at this council meeting, to be budgeted from the general fund. The $15,000 is with an agreement that the HCWC will provide services to adult, adolescent and child victims of family or dating violence and to child witnesses of family violence. Because it is an amendment that will reallocate funds, council was required to vote, where it passed unanimously. Heiser also said that he would like to “get the wheels in motion” and ask for council support in the creation of a satellite library on the east side. He has no number for the cost of the project, so there will be no amendments made to the budget. Instead, he motioned for staff to put together a proposal. In response, council member Michael Tobias mentioned the previous discussions council had in June regarding a community center with a library and asked why staff should look into this now when there is a plan for the future. Heiser then explained that this would be an extension of the main library on the east side to allow further accessibility for those residents, not the full-sized library discussed with the community center. Mayor Travis Mitchell stated that a large main library would require a bond, but the idea of a satellite library is something that could be discussed at a later date. This discussion in June also included the sportsplex, which would have included a $65 million bond on the November ballot, but council previously denied this bond at the Aug. 6 meeting. “When you look at the CIP spending category [in the new budget], line item number two, the sportsplex has been added on at $7 million. You go to year two, it goes to $21 million, year three it goes to $20 million and then, year four $15 and then, there we are with the magic number of $65 million,” revealed Tobias. “What we did — what we stated very clearly — with the $65 [million] is that we’re going to put that on hold. So, yes, it stays in the long-term CIP for now, but we’ve given that direction that we’re going to focus on the initial smaller outdoor voter bond approved portion of the sportsplex, while cultivating other options and making those determinations at a later date,” explained Mitchell. “The $65 million, we do not have any funding source identified for that. It’s not an actual expenditure that is lined up in the budget.” City manager Bryan Langley also provided clarification, stating that the money is included in the budget because it had to be presented in July and council did not deny the bond until August, but that Mitchell is right and there is no actual funding source associated with it. Council members continued to discuss the $65 million labeled in the CIP spending funds and, after council member Daniela Parsley asked if it was possible, ultimately decided to remove it from the budget, as it is simply a placeholder for possible funding in the future. This motion to remove it was made by the mayor and passed 7-0. In regards to previously mentioned projects, council member Miguel Zuniga questioned the future of Lake Kensington and the plans surrounding it. Moheet noted that there is $25 million set aside for park improvements and, although Lake Kensington isn’t specifically listed as a project, it could be funded through this money. Langley stated that it should be labeled as its own project, to which Mitchell made a motion to amend the CIP plan for the next two years to allocate $17 million for Lake Kensington, with “funds to be identified as certificate of obligation bonds.” The motion for the funds passed 7-0. Parks and Recreation Director David Lopez is planning to bring forward a master plan in the future with more details. Next, council member Robert Rizo requested $15,000 from the general fund to be allocated for the Hays County Food Bank: “The reason why I’m asking for these dollars is because this is a service. I don’t see it as charity. We just had a presentation about the numbers and what the high usage is in Kyle for the food bank. I would love to see us start doing our part with it …. I know, currently, San Marcos funds about $100,000 a year toward the food bank, so I’d love to see us start somewhere.” The budget, with amendments, passed unanimously at the meeting after a roll call vote. For  the tax rate, which was an increase of 2.87%, both Zuniga and Tobias had reservations. Zuniga commented that residents on fixed incomes, such as social security, are especially heavily affected. “Whether it’s $20 or $48, that’s prescription meds for somebody,” concluded Tobias. The tax rate of $0.4693 was approved 5-2, with Zuniga and Tobias dissenting. To listen to the discussion of both items, visit bit.ly/3MABbbF . Kyle City Council will next meet on Sept. 17.