Keller City Council examined the proposed tax rate and fiscal year 2023-24 budget at the regular meeting Aug. 1, learning the tax rate would be lower than that of FY 2022-23.

Council will consider adopting the budget and tax rate Sept. 19. The proposed budget will be published online Aug. 10.

The details

During a work session, Aaron Rector, director of administrative services/finance, discussed the proposed operating budget, which will be nearly $109 million. Personnel costs make up $35 million of the expenditures, which is part of the near $109 million. Expenditures will rise by $5.8 million in the proposed budget compared to the FY 2022-23 budget.

“This budget does see three big debt issuances: $15 million for Elm Street, $27 million for the [Keller Sports Park], and $4 million for the third and final round of SWIFT,” Rector said, with SWIFT referring to the State Water Implementation Fund for Texas, which offers low-interest loans to cities for water infrastructure projects.

In Keller’s case, the organization’s loans will be used for water line replacements as part of standard maintenance, said Rachel Reynolds, communication and public engagement manager for the city.

“Our first round of SWIFT funding and projects was in 2016, a second in 2020, and this is the third and final as part of our current application with the state,” she said in an email.

The Elm Street project centers on a full road reconstruction along with updated utilities, improved drainage and new pedestrian amenities, Reynolds said.

“It’s in the design phase right now, and we’d like to see it break ground next summer,” she said. “Elm Street is a piece of Old Town Phase II, a broader project impacting the section of Old Town east of Main Street and south of Keller Parkway. Elm is also receiving some funding from Tarrant County since it was one of the projects included in their most recent road bond package.”

The Keller Sports Park involves renovations and additions.

On the revenue side, property taxes, sales taxes, and other taxes and charges for services comprise $93 million of the $102.7 million total. Revenues will increase by $4.5 million in this upcoming fiscal year.

Also of note

Reynolds explained staff has proposed an “operationally balanced proposed budget, meaning ongoing revenues meet or exceed ongoing expenditures. The proposed budget includes several one-time expenditures, which would be funded with fund balance.”

Notable one-time expenditures in the proposed budget include the police station renovation at $4.5 million, a fire engine at $1.1 million, a bathroom renovation at Town Hall for $370,000, the community development software implementation of $275,000, and Bancroft and Spring Branch reconstruction projects for $250,000.

“With the one-time costs removed, the proposed expenditure budget is $102.1 million, which is lower than revenue by about $600,000,” she said in the email.

The proposed tax rate is $0.31200 per $100 valuation, a few pennies lower than FY 2022-23’s $0.35450 per $100 valuation. The average home tax would be $1,374, the same as FY 2022-23, with the average home value being $440,350, up from FY 2022-23’s $387,603.

The cost for city services for the average residential taxpayer is $114.49, with police services making up the top portion of the cost at $28.68 per month. Fire services is second at $25.10, and public works is third with a monthly amount at $15.90.

Quote of note

“Like all budgets we bring before you, it’s sustainable,” City Manager Mark Hafner told council, noting the budget “takes care of our valued employees and a lot of capital improvement projects with this sports park and Elm Street. So, it’s a really good budget.”