Residents press Kyle City Council for forensic audit as water bills and past spending draw scrutiny

Several dozen residents pressed the Kyle City Council on Tuesday for a forensic audit and clearer financial oversight, citing a string of concerns about prior city leadership, development agreements and recent water bill spikes. Speakers said they want an independent review of transactions, contract compliance and credit‑card spending dating back to the previous administration.

The push for a broad audit came during the council’s regular meeting, when residents, including Leslie O’Prey and Larry Golick, described what they called questionable spending under former leadership and asked the council to restore transparency. O’Prey told the council she had seen city funds used for signage and other purchases and that a Hays County District Attorney preservation notice is related to prior agreements and financial dealings.

Why it matters: Speakers said the issues go to the heart of public trust and city finances. Jack Parrott and others argued a development agreement for the 6 Creeks area requires in‑city rates for utility customers there, and that changes to the city code or budget that increase outside‑city rates may be invalid without proper ordinance votes. Affected outside‑city customers said bills rose sharply; one resident said her bill jumped from $80 in August to $3,302 in December and cited a contract provision she called Section 701 as evidence the neighborhood should be charged city rates.

What the council did: In response to public concern the council voted unanimously to direct staff to return with options for reinstating a finance and audit committee and to present a clearer report on independent external audits and risk‑assessment processes. Councilmember Claudia Zapata’s item asking staff to bring the audit and risk‑assessment process back to the council passed 7–0. The motion instructs the city manager to have the finance director and, if possible, the independent auditors and risk‑assessment firms, present their processes and findings so council and the public can better understand ongoing controls and potential gaps.

Details and next steps: Staff told the council they plan to schedule the independent audit presentation in early March when the city’s auditors are available. The council also approved a separate item directing the finance director to present the history and options for reinstating a finance and audit committee, which would be made up of residents. No policy changes or committee appointments were made Tuesday; council members said they want the presentations first so the public and council can evaluate options.

Voices: Leslie O’Prey said, “I believe we need a forensic audit,” echoing many callers who tied the request to alleged misuse of credit cards and benefits, travel expenses and disputed contract compliance. Jack Parrott asked that the city consider outside legal counsel to review developer agreements. Staff emphasized that the independent auditors report directly to council and that the upcoming presentations are intended to clarify audit scope and procedures.

What to watch: Staff will return with a timeline and options for reinstating a citizen finance and audit committee and with the independent auditor’s presentation. Council members urged careful, public outreach and clear scope-setting to ensure any review addresses residents’ questions without duplicative work.