Small Town News

Is Kyles boom slowing?

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OF CABBAGES AND KINGS

Kyle city voters will choose three new city council members in a little more than two weeks in a special election. Regardless of the results, this election will bring major changes in the council's composition as it faces some monumental economic decisions before the next budget season.

I have participated in or observed the operation and selection of Kyle city government for much of the last 57 years, casting my first local vote in 1954. This observation period has given me insight and knowledge about local government ways through the years.

Kyle had big expectations from the beginning. In 1880 its promoters boasted that it was "The Prairie City," even though it was a village of modest proportions. But playing second fiddle to the county seat in San Marcos, Kyle never had a population of more than 1,000 in its first 100 years.

Even more grandiose was the late 20th century promotional piece which proclaimed Kyle to be the "center of the universe" because it was on the same latitude as the Egyptian pyramids.

That was followed in the early 1980s by a boom that turned into a bummer. California promoters of various hues and stripes hit Central Texas and started a frenzy of low down payment, long payout farm and ranch purchases along IH-35.

More than a handful of local landowners got burned when the predicted boom collapsed. Kyle's tax rate zoomed to become the highest among Hays County cities and plans for countless housing subdivisions crashed and property values tumbled. It was a sobering time.

Our location, though, almost smack dab in the middle of the Austin-San Antonio growth corridor, is a geographic fact that is irrefutable and undeniable. Over the past decade, we finally registered the spectacular growth that scores of Texas cities and towns lust for and few will ever attain.

In fact, the 2010 U.S. Census strongly indicates that at least 75 Texas counties will decrease in population between the 2000 and 2010 census, which will be finalized later this year. That means several hundred cities, particularly in the Panhandle, High Plains and parts of South Texas will register only tiny populattion increases or, even worse, real sstagnation.

We need to be thankful that we straddle IH-315 or we could be sharing at least a partial fate with many of thoDse communities. Blessed be our geeographic location.

The past decade brought us a pretty good bag of "good news." But recent facts presented by City Manager Tom Martis and Director of Finance Charles Cunningham are sobering.

For instance, an eye-opening item: Our current tax rate is slightly more than 42 cents per $100 valuation of our homes, lots and business properties. The amount of money that we must pay on the $73 million worth of infrastructure baink loans and certificates of obligation issued by our city council over the past 10 years, (primarily through certificates of obligation that were enacted by the various city councils), is a startling 57 percent. That means 57 cents of every do>llar we currently raise is going to payments on indebtedness. Ycou don't have to be a banker or a Phiiladelphia lawyer to know that's nojt a sustainable amount to pay ower any extended period of time.

For comparison!: Our debt portion is eight percent hiigher than in Cedar Park, the rapidly growing Williamson County town;, and more than 20 percent higher thaan in our Guadalupe County neighbors at Schertz and New Braunfe3ls. Even worse, it is 25 percent higherr than Pflugerville, the fast growing TIravis County city on the edge of Auistin.

Private sector 1 businesses with that kind of debt t load are headed for serious economic disaster. So are cities and Kylie is no exception.

Most of Kyle's capital expenditures over the passt decade were made out of necessity for infrastructure needs to handle the growth and population increases that skyrocketed during the past decade.

In 2004 we committed to invest slightly more than $14 million in the Kyle Parkway (the extension of FM1626 to IH-35 at the old Bunion Overpass) with additional financial help shared by Hays County and the State of Texas. The Seton Hospital-Kyle Parkway project in 2008 totaled nearly $10 million, bringing north Hays County a hospital operation that creates long-range advantages relating to commercial enterprises and east-side road necessities.

In addition we built a very attractive downtown city hall with an upscale two-block streetscape, a top-notch city swimming pool and began work on restoring the historic 1912 city hall as a senior citizen-meeting hall combination.

It is obvious, though, that Kyle must shift into a different gear when it comes to capital expenditures over the next few years. The downturn in the economy is being feltinTexas.no matter what state political leaders say in their press releases. Debt ratios don't he and Kyle needs to address the problem immediately.

The city manager has warned that a 60 cent tax rate for several years looms unless some long talked about capital programs are curtailed or postponed. The council recently filled out a priorities worksheet showing it clearly rates the construction of a new library for whichland is already owned, and a newpolice station, as its overall priorities.

But some council members continue to talk about the projected city recreation center, and road reconstruction on Bunton Creek and Lehman Road. Perhaps some federal stimulus money will become available for that sort of big project, but we can't count on that type of rescue.

Other items on the wish list of some folks need to be dealt with realistically. The perfect solution is for voters to make their voices heard at the mid-Febnlary special election, in whitVilhi«fc\»uiiK\i spots will be determined.

Voice your opinion with a letter to the editor and let everyone know how you feel about the priorities.

bob@haysfreepress.com



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© 2010 The Free Press Buda, Texas. All Rights Reserved. This content, including derivations, may not be stored or distributed in any manner, disseminated, published, broadcast, rewritten or reproduced without express, written consent from DAS.

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