Kyle City Council approves FY2026–27 budget amendments and sets property tax rate at 0.5600

Kyle City Council on Saturday approved on first reading the city’s operating and capital budget for fiscal year 2026–27 as amended and set a proposed property tax rate of 0.5600 per $100 of taxable assessed valuation.

Interim City Manager and Finance Director Pervez Mohit presented the proposed budget, telling the council the recommended expenditures for operations, maintenance, debt service and capital improvements total about $417 million; the presented document noted a total appropriation request in the ordinance of $434,696,680 subject to final amendments. Mohit said the proposed tax rate of 0.5600 is 0.0357 lower than the current adopted rate of 0.5957 and represents about a 6% reduction. "For an average valued home in Kyle in 2026 ... the net tax bill on that average valued home will be $1,464.57," he said, comparing that to the previous year's average and emphasizing the combined effect of both lower rate and changes in assessed values.

Council members debated a set of amendments before the first‑reading vote. Council approved a $400,000 allocation to the police department to prevent deeper cuts to the department’s vehicle fleet and added a $60,000 appropriation to restore part‑time library positions. After plugging those amendments into staff’s fund‑balance projections, City financial staff reported the estimated ending general‑fund balance would remain above the city’s reserve requirement.

On the tax motion, Mohit walked the council through three tax‑rate options and the statutory disclosures required for first reading. He said the proposed rate would yield slightly more property‑tax revenue than the prior fiscal year because of new property coming onto the tax roll, even though the rate itself is lower. The council approved the tax‑rate ordinance on first reading by a 6–1 roll call.

The council scheduled the second required public hearings and second readings for Sept. 15 at 7 p.m. A complete copy of the proposed budget and associated calculations are posted on the city’s website and available for in‑person inspection at Kyle City Hall and the Kyle Public Library.