KYLE, Texas (KXAN) — Some residents who live just outside of Kyle’s city limits are decrying a city proposal to increase water and wastewater rates by around 77% in 2026.
Kyle City Council will vote on Tuesday night on whether to push forward its 2025-2026 fiscal year budget. Inside the budget proposal is a plan to increase the water and wastewater rates for those living in the city and those who live in Kyle’s Extra-Territorial Jurisdiction zones – or ETJs.
The city told us residents within the city limits would see about a 20% increase, while those living in the ETJs – just outside city boundaries – would face steeper hikes.
The city said updated rates for both in-city and ETJ customers will help support critical infrastructure, improve water quality and ensure the long-term sustainability of the city’s water and wastewater systems.
“My last month’s water bill was $370. They’re proposing a 77% increase for 2026, which would raise my bill at current usage to $655,” said Jack Parrot, who lives in the Six Creeks neighborhood, which is in an ETJ.
Parrot said his property is only 300 yards from the city limits.
“We’re not gonna be able to afford it,” he said.
In a statement, the city explained that the reason for the rate disparity is that in-city residents already experienced a water increase in 2025, while ETJ residents did not.
“For the first time, [out-of-city limits] customers will have rates aligned with the actual cost of delivering water and wastewater services,” the statement read.
Additionally, the city of Kyle cited an analysis that showed customers living in ETJs using 15–17% more water on average, and about 35% more during peak periods, than those who live in Kyle.
“This higher peak usage drives the need for larger infrastructure, such as additional pump stations, expanded pipelines, and increased storage capacity, which contributes to higher costs to serve these areas,” the city’s statement read.
So far, Parrot and other customers in Kyle’s ETJs have not been satisfied with the city’s reasoning for the rate increase. Parrot said he does not think his neighborhood uses any more water than others.
“We’re gearing towards protesting to the [Public Utility Commission] on the grounds that they manipulated the numbers to reach a desired outcome,” Parrot said.
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