To: Mayor and Council
From: Bryan Rebel, Chief Financial Officer and Marcia Reyna, Director of Administrative Services
Subject:
Title
PUBLIC HEARING: Consider an ordinance adopting the annual budget for the City of Keller, Texas, for the Fiscal Year beginning October 1, 2026 and ending September 30, 2027, including the 2026-27 Capital Improvements Program, and adopting the Fiscal Year 2026-27 Fee Schedule for the City of Keller, Texas.
Action Requested:
Conduct a public hearing and consider approval of an Ordinance to adopt the Fiscal Year (FY) 2026-27 Operating Budget, Capital Improvements Program (CIP), and Fee Schedule.
Background:
In accordance with Section 8.04 of the Keller City Charter, the City must conduct a public hearing on the proposed annual budget prior to the vote to adopt the budget.
The total FY 2026-27 Proposed Operating Budget expenditures are $111,886,195, an increase of $582,090 or 0.52 percent from the FY 2025-26 Adopted Budget. Included in the Proposed Budget is one-time funding of $517,336 for Economic Development Incentives, $500,000 for the Town Hall Patio Repair, $330,000 for a Pothole Patch Truck, $139,000 for a Backhoe, $99,348 for the Vehicle Replacement Schedule, $50,253 for lump sum public safety compensation, $35,000 for a Warning Siren Replacement and $15,000 for an Agenda and Meeting Kiosk.
The Proposed Capital Budget is $9,614,464 and all is cash-funded by the City.
The FY 2026-27 Proposed Budget adoption ordinance provides the amount of expenditures for each individual operating and capital project fund.
Financial Impact:
The annual budget is necessary to fund the operations for the City of Keller.
Citizen Input/Board Review:
-The Keller Crime Control and Prevention Board reviewed and approved the Keller Crime Control and Prevention District budget on June 24, 2026. The City Council conducted the required public hearing for the Crime Control budget on August 4, 2026.
-The Keller Development Corporation Board reviewed and approved the Keller Development Corporation budget on June 29, 2026. The City Council conducted the required public hearing for the KDC budget on July 7, 2026.
-Strategic budget discussions were held during the work session portion of Council meetings between March and August for a total of 8 strategic budget discussions.
-A Budget Workshop to review the proposed budget was held on August 26, 2026.
Legal Review:
Not applicable.
Alternatives:
City Council has the following alternatives:
- Approve as submitted
- Approve with changes
- Denial