An annexation of about 2,400 acres that had been in the works since late summer came to a halt at the Kyle City Council meeting Oct. 15.

Kyle Mayor Lucy Johnson said a "technical issue" was brought to council's attention on Oct. 14. Formal written notification of the annexation proceedings had not been provided to the emergency services districts that provide fire service to areas in and around Kyle, she said. Under Texas Government Code, such notification is required before public hearings to discuss annexations can begin.

Emergency Services Districts Nos. 5 and 8 provide service to the annexation areas.

"I'd like to apologize to all those who have been with us during these annexation [discussions]. The last thing this council would want to have happen would be to put you through these public hearings and this process again," Johnson said. "Unfortunately, even though this technical error did not automatically void annexation proceedings, we find it best to restart the annexation process."

Council unanimously approved Johnson's motion to cease current annexation proceedings and start over at a special meeting Oct. 22.

Kyle Planning Director Sofia Nelson said the proceedings that began in August were not voided by the discovery that not all entities had been properly notified, but the city was exposing itself to a potential lawsuit if it moved forward with them.

"[ESD No. 5] knew what was going on, both because of the agreements that they've been working on with City Council and their presence at meetings, but state law require written notice," she said.

The city of Kyle began the annexations in part as a reaction to Proposition 1, which would allow ESD No. 5 to collect a half cent from each dollar of sales tax generated in the parts of its service area that are outside the city limits.

City officials said they were concerned that this sales tax collection, which otherwise would have gone to the city, would hamper their future ability to enter into economic development agreements, which are often funded by sales taxes.

ESD No. 5 President Beth Smith and Kyle Fire Chief Kyle Taylor have countered that the intent of the proposition is to allow the district to keep up with Kyle's rapid growth.

Nelson said the city will not be able to complete the annexations before the Nov. 5 election. According to an agreement between the city and ESD No. 5, the city will support the ESD's proposition and allow the district to collect sales tax on all the areas that are not within the city limits by the Nov. 5 election. That agreement, which was approved by City Council at the Oct. 15 meeting, was written before the realization that proper notification had not been given.

Smith said the district's board of directors would discuss the issue at its next meeting.

"It's on our agenda to review it at our Oct. 23 meeting. We want to work with [the city] and pass a resolution that is amicable for everyone," she said.