Government
BY AMANDA CUTSHALL & BROOKE SJOBERG
San Marcos eyes tax hike amid budget gap In its final workshop before an official budget proposal for the 2026 fiscal year is brought forward in August, San Marcos city officials are considering a property tax rate increase for the 2026 fiscal year to address a projected $3.1 million budget shortfall. The shortfall is attributed to anticipated declines in both property values and sales tax revenues, which are expected to be lower than in 2023. The big picture In a June 26 budget workshop, Finance Director Jonathan Locke presented options to balance the budget without making significant reductions. One proposed solution is to raise the city’s property tax rate to $0.6403 per $100 of valuation, slightly below the no-new-reve- nue rate of $0.6496. The city’s property tax rate is $0.6030 per $100 of valuation. With a $40,000 proposed increase to the homestead exemption heading to voters in November, Locke emphasized that the impact of $3.1 million in cuts to the city’s budget would likely be personnel reductions. “That is a very large budget cut for the general fund,” he said. “Seventy-two percent of the general fund is personnel...It takes people to provide the types of services that the general fund provides.” What’s next? The city will seek public input ahead of a vote on its approval in September.
Kyle invests $1.14M in long-term water storage A two-phase water project in Kyle aims to confirm the city’s potential for underground aquifer storage—a method of storing and retrieving water from natural underground formations—as a long- term solution to support the community’s growing population and future water needs. The big picture Kyle City Council approved a $1.14 million contract with STV Infrastructure Inc. for an Aquifer Storage and Recovery, or ASR, project in June. “The Aquifer Storage and Recovery system is an essential part of our long-term water management strategy,” said Kyle Water Utilities Director Mike Murphy. “It will help us meet future water needs efficiently while ensuring we stay within the limits of our existing water agreements. Officials said the Water Master Plan, adopted on April 15, determined ASR to be a viable strategy in the vicinity of Kyle; however, test wells need to be completed to confirm production capacity and water quality. How it works ASR is a forward-looking water management sys- tem that functions like an underground water bank, storing surplus water in aquifers during periods of low demand and retrieving it during high-demand months, such as during peak summer usage. Officials emphasized this approach will allow Kyle to make better use of its existing water resources without increasing annual water allocations. Stay tuned Phase one of the project, estimated to be
Feb. 20, 2024 Council initiates Water Master Plan Kyle’s path to Aquifer Storage and Recovery
Kyle City Council awards STV Engineering a task order to begin developing the city’s long- term Water Master Plan. Sept. 17, 2024 Drought and conservation planning added Council issues a follow-up task order to STV to update the city’s Drought Contingency Plan and Water Conservation Plan.
March 29, 2025 Master Plan draft delivered
STV presents the final draft of the Water Master Plan to City Council, outlining water supply strategies including ASR. April 15, 2025 Water Master Plan adopted City Council formally approves the Water Master Plan, identifying ASR as a key strategy to meet future water demand.
June 3, 2025 ASR project funding approved
Council approves a $1.14 million contract with STV to begin the first two phases of the Aquifer Storage and Recovery project.
SOURCE: CITY OF KYLE/COMMUNITY IMPACT
completed by January, involves detailed site evalua- tions, a feasibility study and permitting. Phase 2, estimated to be completed within 11 months following completion of the draft ASR evaluation and feasibility study, will include core drilling, installation of monitoring wells and concept development.
Buda delays decision on disc golf course location Buda City Council postponed selecting a loca- tion for a proposed disc golf course after residents raised concerns about the recommended Garlic Creek Greenbelt site. The overview The course, included in the city’s 2021 Parks
Proposed golf course location
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What else? Some council members suggested referring the issue back to the Parks and Recreation Commission for more public input, including from nearby homeowners. Other possible sites under consideration include Stagecoach Park, Garrison Park, and the future Eastside Park. City staff said they will explore alternatives and present updated recommendations at a future meeting.
GARLIC CREEK PARK
Master Plan, is slated for development in fiscal year 2025-26. A city survey showed 50% support for Gar- lic Creek, but council members questioned timing, maintenance, and neighborhood impact.
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SAN MARCOS - BUDA - KYLE EDITION
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