The proposed 2013–14 budget for the city of Kyle totals $45.1 million and includes increases in rates for water and wastewater, property taxes and various city fees, as well as implementation of a street maintenance program.
The 2013–14 fiscal year will be the first year the city's sales tax revenue outpaces property tax revenue, and City Manager Lanny Lambert said this was an encouraging sign of a strong economy, but the city should also be wary.
"This is a good thing because it shows the economy is strong, but sales tax is also more vulnerable than property tax," Lambert said.
The city is expecting to collect $3.98 million in property taxes and $4.32 million in sales tax.
Lambert said Kyle has come a long way from three years ago, when many of the major funds were approaching depletion and the city was nearly forced to begin laying employees off.
For years the city reduced property taxes while taking on additional debt, and this led to a deficit, Lambert said. He applauded City Council for "making some tough decisions to balance this budget."
Those tough decisions include the final step in a three-year water and wastewater rate increase plan to balance the city's utility fund. The final step calls for a 20 percent rate increase in water service rates and a 10 percent increase in wastewater service rates, both of which will take effect Oct. 1. The three-year plan will have doubled the city's rates by the time the final step is implemented.
Expenditures from the general fund, the city's largest fund, include $4.78 million to public safety, $1.9 million to parks, and $1.8 million to solid waste services.
Lambert also proposed the creation of a $100,000 street maintenance fund that will provide resealing for the city's dilapidated roads.
"It's not big enough to meet our needs, but we have to start somewhere," Lambert said. "There are 110 miles of paved road in this city, and we're doing basically nothing to maintain those asphalt streets."
Lambert also proposed $10,000 be set aside for a tuition-reimbursement program. Under the program, city employees could be reimbursed for making a grade of C or better in a class related to their job.
"Our employees cannot be over-educated," Lambert said.
Lambert estimated as many as 30 city employees could take advantage of the program in its first year.
Before adjourning, council unanimously approved consideration of a proposal to increase property taxes from 52.44 cents per $100 of assessed valuation to 54.83 cents per $100 of assessed valuation.
The budget approval process will last throughout August, and city officials hope to have an approved budget by Sept. 4. All budget meetings will take place at Kyle City Hall, 100 W. Center Street, Kyle.
Budget meeting dates
- Public hearing, 7 p.m. Wednesday, Aug. 7
- Public hearing, 7 p.m. Wednesday, Aug. 14
- Public hearing, 7 p.m. Wednesday, Aug. 21
- Public hearing 7 p.m. Tuesday, Aug. 27
- First vote to adopt budget and tax rate, 7 p.m. Tuesday, Sept. 3
- Second vote to adopt budget and tax rate, 7 p.m. Wednesday, Sept. 4
