At the Aug. 6 Keller City Council meeting, city officials proposed a FY 2019-20 operating budget of about $90.94 million. Most of its proposed expenses for the year—around $30.77 million—will be for personnel services.
Revenue to pay the expenses will be funded primarily by charges for services and property taxes. Charges for services, which include city services such as water, wastewater and garbage, are expected to contribute around $37.67 million in revenue. Property taxes are expected to generate more than $24.36 million for the FY 2019-20 budget.
In total, the city’s FY 2019-20 revenue are expected to total about $88.8 million. The roughly $2.14 million difference between the budgeted expenditures and revenue is due to one-time transportation, infrastructure, parks and recreation, and equipment replacement expenses.
The city will pay for these expenses through its fund balance and reserve funds.
City officials and council also discussed a proposed tax rate of $0.3999 per $100 valuation. That is a decrease from the FY 2018-19 tax rate of $0.41325 per $100 valuation.
“We’ve had quality growth, and while we do intend to issue debt, over the next couple of years, we’ll see our debt dropping off,” Director of Administrative Services Aaron Rector said. “And there’s just good, conservative budgeting on behalf of the council.”
City Council approved another form of tax relief for Keller residents at its June 19 meeting, increasing the city’s homestead exemption rate by 2% to 12%. With the measure, the taxable value of homes in Keller decreases by 12% or $5,000, whichever is greater.
Keller City Council is scheduled to adopt its FY 2019-20 budget and tax rate at its Sept. 17 meeting. The fiscal year begins Oct. 1.