Kyle City Council adopted a $603.6 million budget for fiscal year 2025-26 at the Sept. 16 meeting, which included increases to the water and wastewater rates.
The details
In 2024, Raftelis—an Austin-based government and utility consultant company—completed a Water and Wastewater Utility Cost of Service Rate Study, which found that “current revenue levels are insufficient to sustainably fund the ongoing provision of safe and reliable water and wastewater service from FY 2025 to FY 2030,” according to city of Kyle documents.
Rates will increase for residents within the city limits and extraterritorial jurisdictions, or ETJs; however, those outside the city limits will see higher rate increases.
Residents inside the city limits will see an average rate increase of $18.07, or 15%. Broken down, that looks like:
- Water rate increase of $15.35, or 20%
- Wastewater rate increase of $2.72, or 6%
- Water rate increase of $71.27 or 77%
- Wastewater rate increase of $22.57 or 30%
Rachel Sonnier, a spokesperson for the city, said that 15.6% of the city’s water customers reside outside of city limits, and the average total rate will vary as some areas within the ETJ and within the city limits are served by the city, as well as other providers.
“For example, the Anthem development is in Mountain City’s ETJ, and the Amberwood subdivision, which is inside city limits, is served by Texas Water Utilities,” Sonnier said.
What else is in the budget?
Other major investments on the FY 2025-26 budget, which begins Oct. 1, include nearly $700 million to support vital water and wastewater initiatives, and $359 million to fund road projects, sidewalks, Americans with Disabilities Act access and pavement maintenance, according to a news release issued by the city.
