Keller City Council voted in favor of a proposed max tax rate that, when paired with the council’s June decision to raise the homestead exemption to the state maximum, should amount to savings for homeowners in town.

City Council approved a proposed tax rate of $0.395 per $100 in taxable value for fiscal year 2021-22, matching the rate for FY2020-21. The rate was proposed Aug. 17 during a presentation by Aaron Rector, the city’s director of administrative services and finance.

Rector explained that the rate, when paired with the city’s increased homestead exemption to 20% from 14%, will amount to an average tax bill of $1,374.20 for the average taxable home in Keller—valued at $347,898. The average tax bill with the 14% homestead exemption in FY2020-21 was $1,389.68, making for an average savings of $15.48 per homeowner for the fiscal year.

“We’re doing official tax relief this year,” Rector said.

The rate also falls below the no-new-revenue rate and therefore will not require a public hearing, but will have to be posted.

The proposed max tax rate can officially be ratified when City Council approves the FY2021-22 budget, which is planned for Sept. 21. Rector explained that because at least $1 will be added to the levy, which he said will come from new value, a tax revenue increase will have to be ratified in the budget.

"I can't stress enough—even though we're under the no-new-revenue rate and providing tax relief to the citizens, we have to ratify that [levy increase]," Rector said.