This Is Why Kyle Water Rates Will Go Up 10% Every Year

Kyle citizens currently pay one of the highest water rates compared to nearby cities and actions taken by the city council will only make this rate climb higher.

For at least the next 3 years, a 10% increase to the water rates is planned by our elected officials.

Here is everything you need to know about Kyle’s water rates.

Kyle’s Average Water Bill Is Almost the Highest In Comparison.

In 2019, Kyle’s had the highest water rates compared to other cities in Hays County and the second-highest for similar-sized cities in the region.

Kyle’s average water bill is nearly double that of Buda’s. Ironically, according to the video below, Kyle sells water to Buda.

Your Water Rates Will Increase 10%, Every Year, For At Least 3 Years.

The approved 2020 City of Kyle budget forecasts that city water rates will need to increase 10%, every year, for the next 3 years.

Keep in mind that the Water Utility Fund is an enterprise fund. In short, all the costs of providing water (personal, infrastructure, water costs) are paid directly from water rates, not from other funding sources like property taxes.

What Is Driving The Rate Increase?

The water rates have to be increased to support a total of $63.6 million dollars of new debt.

Where did this new debt come from?

The City of Kyle has made a commitment to a partnership, the Alliance Regional Water Authority (ARWA), to issue a total of $63.6 Million of debt by the end of 2020.

In October 2017, Kyle along with Buda and San Marcos, the cities voted to authorized ARWA to issue millions of dollars of debt on their behalf.

Here is how Kyle is schedule for issuing the $63.6 Million of debt:

  • 2015 – $3.5 Million (issued)
  • 2017 – $9.0 Million (issued)
  • 2019 – $24.2 Million (planned)
  • 2020 – $26.9 Million (planned)

More About ARWA.

ARWA is a partnership of local cities and authorities, and its project will bring in millions of gallons of water per day to the region from the Carrizo Wilcox Aquifer located East of Hays County.

The project will cost a total of $213.4 million when completed in 2023.

Kyle’s Future Water Surplus

On the positive side, Kyle residents will probably never have to worry about running out of water.

Over the last 10 years, Kyle has developed a very strong water portfolio of multiple sources of water.

Let’s look at the numbers.

MGD = Millions Gallons Daily
Acre Feet = volume of water necessary to cover one acre of surface area to a depth of one foot.


  • Kyle has available 9 MGD, 6 MGD in draught stage
  • Kyle currently uses 4 MGD

With ARWA:

  • Kyle’s 28.17% of ARWA gives it access to 9,355 Acre Feet/year
  • 9,355 Acre Feet is about 3,048 million gallons/year
  • This would give Kyle an additional 8.3 MGD capacity

Summing it all up:

  • Current Capacity: 9 MGD
  • ARWA 28%: 8.3 MGD
  • Total Future Capacity: 17.3 MGD
  • Kyle’s Current Use: 4 MGD
  • Kyle’s Future Use: ???

Watch ARWA’s Executive Director Provide A Project Overview