During a work session on Aug. 6, council got the first look at the proposal from Interim City Manager Aaron Rector that would go into effect on Oct. 1.
The proposed budget totals $107.2 million—$4.4 million more than FY 2023-24, according to city documents. Rector said the budget is proposing a tax rate under the no-new-revenue rate of $0.298552 per $100 valuation.
By the numbers
The budget features a 3.8% increase in personnel services, which was $1.3 million more than FY 2023-24. Rector said the city providing pay increases would keep up with neighboring cities to stay competitive.
The funding for personnel is in the general fund, which accounts for $50 million of the $107.2 million total. According to city documents, the water and wastewater fund is the second largest with with $31 million.
Rector said the cost of city services for an average residential taxpayer is $114.49 a month.
The cost
The upcoming budget includes $18.3 million in street and sidewalk infrastructure. Rector said part of that includes alleyway rehabilitation for the first time in about 20 years.
The budget also includes replacement vehicles, ordering software for public works, and rate increases for water of 1% and wastewater of 2.5%.
A closer look
Council members discussed options on the tax rate, and what it would mean for the city and residents.
The FY 2023-24 tax rate is $0.312 per $100 valuation. Rector asked for direction on the proposed rate for the FY 2024-25 budget, and the consensus was to plan for a mid-option tax rate of $0.293175. With the proposed mid-option FY 2024-25 tax rate, the average home tax bill would be $1,384—$10 higher than FY 2023-24 rate, according to documents.
The low end of the FY 2024-25 proposed tax rate was $0.29112 per $100. If that rate is adopted, it would keep the average home tax bill at $1,374, which would be the same as FY 2023-24.
“It is not prudent if we don’t look at what could happen,” council member Tag Green said, referencing interest rates and the real estate market.
Stay tuned
The proposed budget will be published on the Keller website on Aug. 13. Council will vote on the maximum tax rate on Aug. 20, according to the work session presentation.
During the Sept. 17 council meeting, the budget and tax rate will be voted on by council.
