During a Sept. 15 meeting, the Kyle City Council accepted changes to the water and wastewater utility rates for residents in the 6 Creeks development, located in the city’s extra-territorial jurisdiction, or ETJ.
The settlement was negotiated in response to a petition filed by two residents with the Texas Public Utility Commission to challenge the outside-city rates.
Looking back
Kyle water utility customers saw significant rate increases after the city council passed the fiscal year 2025-26 budget in September 2025, according to previous Community Impact reporting. Customers inside city limits saw an average rate increase of 15%, with a 20% water rate increase and a 6% wastewater rate increase.
Customers in the city’s ETJ, including 6 Creeks residents, saw much higher increases. The average rate increase for customers outside of city limits was 56%, with a 77% water rate increase and 30% wastewater rate increase.
The overview
The council approved a list of negotiated terms for addressing the petition filed by residents Larry Gawlik and Victor Aellen. The city held multiple meetings with the petitioners and engaged in email conversations to resolve the matter.
The approved terms include the city reclassifying all 6 Creeks water and wastewater utility customers as inside-city customers beginning Oct. 1, reducing their rates significantly, according to agenda documents.
Residents in the development will be charged the same rates and fees as inside-city customers for as long as the city’s development agreement with 6 Creeks remains in effect. The city will also amend its billing records for these residents to reflect the classification change.
The rate classification change for 6 Creeks residents will not affect rates for inside-city customers, Interim City Manager Perwez Moheet said.
The rate change will be applied prospectively and residents will not receive any form of reimbursement for payments under the previous rate classification, according to agenda documents.
As a condition of the council’s new rate classification acceptance, Gawlik and Aellen will withdraw their petition with the Texas Public Utility Commission.
“It's taken real negotiation on both sides, and I'm glad to see it reach the dais for your vote,” Gawlik said. “These items fix 6 Creeks, but they do not fix the rest of the ETJ. There are others outside the city limits that will continue paying discriminatory higher rates. I am asking the council to keep working toward a resolution for those customers too.”
The city council on Aug. 18 directed Moheet to negotiate terms with Gawlik and Aellen to resolve the Texas Public Utility Commission petition. The two parties reached a settlement that was approved by the council.
Next steps
Kyle City Attorney Aimee Alcorn-Reed will present the council with a legal settlement agreement for consideration and approval on Sept. 24. The agreement will contain the same terms approved during the Sept. 15 meeting.
On Sept. 29 or 30, Gawlik and Aellen will file a motion to withdraw their rate appeal petition from the Texas Public Utility Commission.
Also of note
The council directed Moheet to bring forward a resolution or ordinance amending the city’s outside water rates for all residents in the ETJ, not including 6 Creeks customers, at a future date.
Moheet will present multiple options for reducing the rates outside city limits, including no more than 20% or 30% above the inside-city rates.
“For months now, we have heard our neighbors coming to us saying what stress the high differential for in-city versus out-of-city rates has caused them,” Council member Courtney Goza said. “We have families who are struggling to pay their bills. They can't get water from anywhere else, and so that's the reason we're bringing this forward.”
