On May 16, city of Kyle staff outlined the multiyear causes that resulted in a projected $14.2 million budget shortfall by the end of fiscal year 2025-26. The proposed almost $417 million budget for the upcoming year aims to address the deficit through a variety of tactics, including a hiring freeze and decreased departmental budgets.
The gist: The city’s budget is made up of four major operating funds, including the general fund. A reserve fund must be maintained in the general fund, equal to at least 25% of operating expenses.
Interim City Manager Perwez Moheet, who previously served as the city’s finance director for 16 years, presented a structurally balanced FY 2026-27 budget to the City Council on Aug. 1. The budget funds all essential city services, operations and maintenance to adequately serve residents and businesses, according to agenda documents.
Additionally, council determined the scope of an approved forensic audit to investigate potential financial misconduct during a July 22 meeting.