By Rafael Marquez

A $63,000 surplus within the 2016-2017 budget is estimated by Kyle city officials as the city is anticipating a one-cent reduction in the city’s ad valorem tax. 

The estimate was discovered as City Manager Scott Sellers presented to the Kyle City Council amendments to the proposed budget for the upcoming year during its second budget workshop Aug. 24.

At the first presentation Aug. 17, Kyle’s budget was proposed at $79.2 million, with the proposed ad valorem tax rate at $0.5748 per $100 of property valuation. The tax rate represented a one-cent reduction from the current tax rate of $0.5848 per $100 of property valuation. 

Due to an overall increase in the valuation of the properties in the city, the revised budget was set at $80.4 million. The city expects to have a surplus of about $63,000 for the upcoming fiscal year despite the reduced tax rate.

City Manager Scott Sellers said the budget included a $3 stormwater utility and storm drainage and flood risk mitigation fee for the new Stormwater and Flood Risk Mitigation Utility. 

“[The council] increased the fee to $5 per month for residential owners,” Sellers said. “The commercial property fee will depend on the impervious cover on the property,” 

The budget, as amended, with the creation of the new department and the addition of new employees raises the total full-time employee count for the city to 222.5 FTE. 

The new budget includes a provision to purchase a new swift water rescue boat for ESD 5 at a cost of $15,000. The original price for the boat was $25,000.

Also in the budget is a provision to spend $10,000 to help pay for a veteran’s memorial for the city. The city budget also makes provisions for pay parity both in the civil service ranks and for the regular city employees.

The budget does not include provisions for money to pay Hays Caldwell Public Utility Agency (HCPUA) debt which is looming on the horizon.  

Approximately 58 percent of every tax dollar collected goes towards the city’s debt obligations.