Kyle council hears timeline and price tag for wastewater expansion and feasibility plan for potable reuse

Deputy City Manager Amber Smmites told the City Council on June 13 that the city must move forward with wastewater plant capacity increases to satisfy TCEQ planning and construction triggers. "Phase 1 is scheduled to be completed in November of 2026," Amber Smmites said during the CIP presentation, adding that phase 1 will raise the plant from 4.5 million gallons per day (MGD) to 6.0 MGD; phase 2 would expand capacity to 9.0 MGD and is projected for 2029.

Tim Sanford, assistant director for utilities, said the plant's running annual average flow is about 4.2 MGD and that TCEQ requires planning to begin at roughly 75% of capacity and construction at 90% of capacity. Staff warned that hitting those thresholds requires timely spending and creates near-term rate pressures.

Utility staff also outlined an ambitious indirect/direct potable reuse program. Amber Smmites described a proposed feasibility study to be contracted in August, followed by pilot testing and the permitting process with TCEQ in subsequent years. Staff estimated the full-scale potable reuse system at roughly $142.5 million over an extended timeline and stressed that the work will include pilot studies and careful regulatory steps before construction.

Council members repeatedly pressed for careful pacing and for measures to protect existing taxpayers and ratepayers. "We do not authorize open-ended debt expansion to 9.0 MGD before the 2026 wastewater master plan is adopted and post-phase 1 demand data validates the need," resident Kenneth Roachcha told the council during public comment, urging the council to link capacity decisions to demonstrated demand.

Staff noted several funding options for utility projects and said water/wastewater projects are typically financed with certificates of obligation and repaid through utility rates, not property tax. Council asked staff to refine timing, seek grant funds where feasible and include rate impact scenarios in the FY27 budget development.

What's next: staff will bring refined wastewater master plan recommendations and cost phasing, run grant searches and publish rate-impact projections tied to any required borrowing for the project.