To: Mayor and Council
From: Aaron Rector, Interim City Manager
Subject:
Title
Consider a resolution ratifying the tax revenue for the Tax Year 2024 (Fiscal Year 2024-25) for the City of Keller, Texas.
Background:
If an adopted budget will require raising more revenue from property taxes than was raised the previous year, Section 102 of the Local Government Code requires a vote of the governing body (i.e., City Council) to ratify that property tax revenue increase.
The Proposed Fiscal Year (FY) 2024-25 Budget anticipates additional property tax revenue of $106,346 (0.44 percent) over FY 2023-24 budgeted property tax revenues, so a resolution ratifying the tax revenue reflected in the adopted budget is required.
New construction is accounting for approximately $243,653 (229.1 percent) of that increase, with the remainder (-$137,308) or -129.6 percent attributed to increased values among existing properties.
The tax rate proposed in the FY 2024-25 Budget is $0.291120 is a decrease of $0.02088/100 from the FY 2023-24 rate. With the proposed tax rate, the average homeowner will pay $1,373.88 or $0.01 less than the current year.
Financial Impact:
The property tax levy is necessary to support the annual budget for the City of Keller.
The following current property tax revenue is included in the 2024-25 budget:
General Fund (maintenance & operations) = $20,367,977
Debt Service Fund = $3,605,130
TIRZ #2 Fund = $195,683
Total Property Tax Revenue= $24,168,790
Citizen Input/Board Review:
The proposed rate is under the effective rate so no public hearings were required.
Legal Review:
Not applicable.
Alternatives:
City Council has the following alternatives:
- Approve as submitted
- Approve with changes
- Denial