Council voted to approve a rate of $0.29112 per $100 valuation, which is a reduction of a little more than 2 cents from the fiscal year 2023-24 rate, during the Aug. 20 council meeting.
Mayor Armin Mizani said it was the lowest tax rate in the city in 31 years.
The tax rate, along with the budget for fiscal year 2024-25, will be voted on during the Sept. 17 meeting. According to city officials, the tax could be lower but will not be more than $0.29112.
“If you live in the city of Keller, your city of Keller tax bill, on average, is actually the same or lower than what you [paid] the year prior, despite inflation and what we're seeing with the economy,” Mizani said. “I think I can safely say there's really no city that's doing what we've done.”
The adopted rate was referred to as the Keller no-new-revenue tax rate by council members and Mizani.
Interim City Manager Aaron Rector presented three different rates and discussed the impacts of each. The middle tax rate, which was on the proposed ordinance, was $0.293175 per $100 in valuation, which was still below the $0.312 that council authorized for fiscal year 2023-24.
The tax rate will help fund the projected budget for FY 24-25, which is $50.08 million, according to Rector. The budget is 13% higher than last year, but Rector said that includes $18.3 million in projects such as South Elm Street reconstruction, Keller Sports Park, pavement markings and sidewalk improvements.
Zooming out
The average home in Keller has a taxable value of $471,929, and the average home tax levy bill is $1,373.88, according to the presentation. If the max tax rate is approved, the average home will save 1 cent next fiscal year, according to Rector.
The city will offer a 20% homestead exemption for the fourth year in a row.
Rector said the average taxpayer would spend $115.30 a month funding city services with their tax bills such as police, fire, public works, library, parks and recreation, and public infrastructure.
Mizani said that the mitigated tax savings compared to fiscal year 2013-14 is about $1,200. According to city documents, the average home taxable value has increased by 43% since fiscal year 2017-18.
