The city of Keller is looking at a property tax rate for fiscal year 2022-23 that would not only provide tax relief but also mitigate the increase in home values that many residents are seeing.

Keller City Council voted 7-0 at its Aug. 16 meeting to set the maximum property tax rate at $0.3545 per $100 valuation. That is a decrease from the current rate of $0.395 per $100 valuation.

A final vote on the city’s budget and tax rate is scheduled for Sept. 20.

Keller officials said this is the largest tax rate reduction since at least fiscal year 1994-95 and the lowest average tax bill since fiscal year 2016-17.

Under the fiscal year 2021-22 tax rate, an average taxable home value of $347,898, the average residential tax bill to the city was $1,374, according to the city. With an average taxable home value for the upcoming fiscal year at $387,603 and the new proposed tax rate, the average residential tax bill would stay about the same at $1,374, figures showed. The difference is $0.14.

The proposed rate would generate nearly $23.9 million in revenue for the city, according to officials.

Mayor Armin Mizani said that lower tax rate combines with the city’s 20% homestead exemption to help its residents.

“What really is impressive is not only the homestead [exemption] and the no-new-revenue [tax rate] but the fact that we’re still improving services and still doing the infrastructure that’s so important for our residents,” he said.