Kyle City Council recently approved a resolution authorizing a regional water supply lease agreement with the Green Valley Special Utility District.
Under the terms of the agreement, GVSUD will lease 0.652 million gallons per day (MGDs) of water annually to the City of Kyle from its share of the Alliance Water Phase 1B water supply. Upon the completion of Alliance Water’s Phase 1C and 1D, the lease will increase to a total cumulative volume of 1.42 MGDs per year.
This agreement strengthens the City of Kyle’s water supply and supports future growth by ensuring access to an additional 1.42 MGDs of potable water per year from the Alliance Water Project.
The City of Kyle will be responsible for monthly fixed and variable charges as specified in the lease agreement, including costs for operations, maintenance, and special assessments associated with the water supply. The agreement also outlines a two-year initial term with automatic one-year renewals.
Estimate total costs for the next three fiscal years:
- FY 2025: $425,430
- FY 2026: $591,347.88
- FY 2027: $498,982,48
“This lease is a critical step in ensuring a sustainable water supply for both present and future residents of Kyle, helping us remain resilient during prolonged drought conditions,” Kyle Water Utilities Director Mike Murphy said. “It’s a clear example of how the City Council is committed to effectively managing our resources to meet the evolving needs of our community.”
“The partnership between Green Valley SUD and the City of Kyle is a strong example of collaboration and forward-thinking among our member entities,” Alliance Water Executive Director Graham Moore said. “Alliance Water is proud to support this effort and looks forward to the upcoming water delivery to Kyle as we continue to build upon the city’s water supply.”
