Small Town News

Kyle foresees 3 cent tax hike

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The City of Kyle revealed a modest tax hike in its proposed fiscal year 2010-2011 city budget Tuesday night.

Interim City Manager James Earp said that Kyle residents could see a three-cent increase in their property tax rates, pushing the tax rate from 42 cents to 45 cents per $100 property evaluated.

The proposed budget totalled more than $56 million, with $10.6 million coming from general fund expenditures and $33.7 million from capital project fund expenditures, among other expenses.

Almost $2 million was cut from the requested general fund expenditures, Earp said.

He also said that the budget has an emphasis on the understaffed Kyle Police Department as well as city economic development and training. The budget includes at least 14 new city job positions, with one-third of those jobs expanding the police force.

"This is just the first brush at it," Earp said of the budget. "It will become more formalized."

Last year, the city unveiled a budget with a 12-cent property tax increase, catapulting the tax rate to 49 cents per $100 property evaluated.

For the past year, coun-cilmembers were able to shave this year's budget to drop the tax rate to its current standing of 42 cents, a five-cent jump from the previous year.

On Tuesday, Earp said that Kyle is projected to see an increase of about $1.3 million in next year's revenue compared to this year's expected gains. City revenue is compiled from taxes and other sources of income.

If next year's sales tax revenue exceeds projections, Earp suggested the council give city employees a one-percent pay raise, which was cut from this year's budget. The total pay raise is estimated at $45,000.

In the coming months, councilmembers will scrutinize the budget to find cost-cutting measures before final adoption by October 1. The public will get their chance for input at a public hearing slated for August 17 at 6:30 p.m. at Kyle City Hall.

Budget documents will be available online on the city's Web site at www.cityofkyle.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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