Council voted for a maximum 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.
It is the seventh year in a row the city tax levy has decreased and the sixth year in a row the average tax bill has decreased, Interim City Manager Aaron Rector said.
Rector added the levy is the lowest for the city since 2017.
The tax rate will help fund the projected budget for FY 2024-25, which is $114.7 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. Rector said if you take away the one-time expenditures, the budget shows a $1.7 million, or 4%, increase from fiscal year 2023-24.
The general fund budget is $50.2 million, while the water and wastewater fund is $31.6 million, making up more than half of the total operating budget.
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. The average home will save one cent next fiscal year on the city tax bill, according to Rector.
The city has a 20% homestead exemption for the fourth year in a row. Rector said the average taxpayer would spend $114.49 a month funding city services with their tax bills such as police, fire, public works, library, parks and recreation, and public infrastructure.
Mayor Armin Mizani said in the Aug. 20 meeting 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.
What else?
The city will have adjustments made to the billing for water and wastewater, which is built into the budget.
According to the budget presentation, the water rates will go up by 1% and the wastewater will see a 2.5% increase.
Rector said a water bill customer who uses 14,247 gallons a month will see the bill go up by $0.78 to $90.43 on an annual average bill. For wastewater, the average customer that uses 7,138 gallons will see the bill increase to $55.55, a hike of $1.34.
Rector did note that water bills are often higher in the summer months. For a customer who uses 25,838 gallons of water in the summer, the average bill will be $155.31, an increase of $1.25.
