Slight decreases in the ad valorem tax rate are what Buda and Kyle city leaders approved when adopting the Fiscal Year 2018 budgets earlier this month.
In Buda, the property tax rate will go down by 31 thousandths of a cent. With the average home value increasing by roughly $13,000 in 2017, the proposed new rate is expected to bring in an additional $5.7 million revenue.
While the property tax rate will decrease, the city has plans to increase the water rate by six percent and increase the wastewater rate by three percent.
Afterward, Buda officials will consider increasing the water and wastewater rates by an additional five percent in fiscal years 2019 and 2020.
The city could increase water rates by five percent in FY 2021 and 2022, while wastewater rates could increase by 10 percent and 2 percent, respectively, in those two years.
With rapid growth happening in the city, Buda aims to create 13 full-time and one part-time position using the general, wastewater and economic development funds. Buda’s FY 18 budget is expected to be roughly $92 million.
A total of $29,000 will be allocated to several area non-profit organizations, including CASA of Central Texas, the Hays Caldwell Women’s Center and the Onion Creek Senior Citizens.
Buda has set aside $400,000 to add a splash pad with restrooms and a pavilion at Summer Pointe Park.
Meanwhile in Kyle, roughly $36.8 million of the city’s $75.5 million budget will go toward capital improvement project (CIP) spending in FY 2018.
City leaders also brought down the city’s property tax rate to .5416, which is a decrease of three hundreths of a cent. The city had, however, a 12.8 percent increase in property tax valuations in 2017.
Kyle has $15 million earmarked for expansion of the city’s wastewater treatment plant. The funds, which will come as a 2019 contractual obligation (CO) bond with a 30-year note, could call for a 15 to 20 percent wastewater rate increase.
According to estimates, Kyle residents could see a $5.50 to $7.00 monthly increase in wastewater rates in 2019.
Kyle and Buda budget 411
- Total budget: $92,286,396
- Tax rate: 0.3673 per $100 property valuation (0.3704 in 2016)
- Total budget: $75,542,631
- Tax rate: 0.5416 per $100 valuation (0.5748 in 2016)
Samantha Smith and Timothy Stuckey both contributed to this report.