During a Sept. 15 meeting, the Kyle City Council voted to reclassify all water and wastewater customers in the 6 Creeks development as inside‑city users, effective Oct. 1. The change dramatically lowers the rates those residents pay, bringing them in line with the rates charged to households within Kyle’s municipal limits.
Background on the rate disparity
When the city adopted its FY 2025‑26 budget in September 2025, utility rates rose sharply across the board. Customers inside the city limits saw an average increase of 15%, with water rates up 20% and wastewater rates up 6%.
Residents living in Kyle’s extra‑territorial jurisdiction (ETJ), including those in the 6 Creeks subdivision, faced far higher hikes. Their water rates jumped 77% and wastewater rates rose 30%, resulting in an overall 56% increase compared with the pre‑budget levels.
Petition and negotiation
Two 6 Creeks homeowners, Larry Gawlik and Victor Aellen, filed a petition with the Texas Public Utility Commission challenging the outside‑city rates. The council responded by directing Interim City Manager Perwez Moheet to negotiate a settlement. After several meetings and email exchanges, the council approved a list of terms that reclassify the 6 Creeks customers as inside‑city users.
Under the agreement, the city will amend billing records to reflect the new classification and will charge the same rates and fees as it does for residents within Kyle proper, for as long as the city’s development agreement with 6 Creeks remains in effect. The rate change is prospective; the city will not reimburse payments made under the previous, higher classification.
Council’s rationale and next steps
Interim City Manager Moheet emphasized that the reclassification does not affect rates for existing inside‑city customers. The council also directed Moheet to develop a broader plan to lower water rates for other ETJ residents, proposing future options that would keep outside‑city rates no more than 20% to 30% above inside‑city rates.
City Attorney Aimee Alcorn‑Reed will present the legal settlement to the council on Sept. 24 for final approval. Following council approval, Gawlik and Aellen will file a motion to withdraw their petition from the Texas Public Utility Commission by the end of September.
Community response
Council member Courtney Goza noted the strain the differential rates have placed on families, saying, “We have families who are struggling to pay their bills. They can’t get water from anywhere else, and that’s why we’re moving forward with this solution.” While the settlement benefits 6 Creeks residents, Gawlik cautioned that many ETJ customers still face “discriminatory higher rates” and urged the council to continue negotiations for a broader resolution.
The council’s action reflects a commitment to fairness and fiscal relief for residents living just outside Kyle’s city limits, aligning utility costs with the city’s broader goal of supporting families and preserving individual liberty through transparent, responsible governance.
Original reporting: Community Impact — Austin — read the source article.
