Katy City Council approved its fiscal year 2026-27 budget and lowered the city’s tax rate.
The overview
At a Sept. 28 meeting, Katy City Council unanimously approved $90.5 million in expenditures and $90.4 million in revenues for the city's FY 2026-27 budget with a focus on public safety, infrastructure, quality-of-life capital projects, managing growth and staffing, according to agenda documents.
Additionally, the council lowered the city’s property tax rate to $0.42 per $100 valuation with maintenance and operation expenditures valued at $0.369939 per $100 valuation and the interest and sinking fund at $0.050061 per $100 valuation.
This year’s budget will raise property tax revenue by $1.51 million or 5.8% more than last year’s due to the city’s growth, per agenda documents. Property tax revenue raised from new property added to the tax roll is $241,066.
The estimated property tax bill under the adopted tax rate is $1,552.
A closer look
The budget includes $68.7 million for the city’s general fund with $16.4 million of the general fund for the operating and personnel expenses for the police department and $11.7 million for the operating and personnel expenses for the fire department.
There is also $14.6 million in capital improvement projects allocated from the general fund to the capital reserve fund.
Major projects include:
An additional $2.2 million for improvement projects will be funded by the city's enterprise fund, which is paid for by the city's water utility revenue. Projects consist of $1.1 million in water meter replacements, $300,000 in mainline and tap replacements and $250,000 in mainline replacements.
The city will increase all salary grades/ranges by 1.5% for all eligible full-time employees, totaling 4% due to each step in the raise program being at 2.5%. Full-time employees above the maximum range will still receive a 1.5% increase, Community Impact previously reported.
Before you go
The FY 2026-27 budget will begin Oct. 1 and run through Sept. 30, 2027, per the city’s website.
