To: Mayor and Council
From: Bryan Rebel, Chief Financial Officer and Marcia Reyna, Director of Administrative Services
Subject:
Title
Consider an ordinance levying taxes to be assessed on all taxable properties within the city limits of the City of Keller, Texas for the Tax Year 2026 (Fiscal Year 2026-27).
Action Requested:
Approve the ordinance levying taxes to be assessed on all taxable properties within the city limits of the City of Keller for Fiscal Year 2026-27.
Background:
The tax rate proposed in the Fiscal Year 2026-27 budget is $0.300417/$100 of taxable valuation which is the same total rate as the current year.
The proposed tax rate distribution is summarized (allocated) as follows:
Purpose Rate Percent
Maintenance and operations (M&O) $0.257403 85.7%
Debt service (I&S) 0.043014 14.3%
Total $0.300417 100.0%
The proposed 2026-27 budget tax rate is lower than the no new revenue rate of $0.300418 so there is no state required motion language or record vote required.
At the August 18, 2026, Regular City Council meeting, City Council approved Resolution No. 5089 which set a maximum tax rate under both the no new revenue and voter-approval rate. Therefore, the City is not required to hold a public hearing on a proposal to consider the adoption of a tax rate.
Financial Impact:
The adoption of the tax rate determines the tax levy that is necessary to support the annual budget for the City of Keller. The total proposed levy is $23,688,458 which is a decrease of $363,671 or 1.5% from the current year levy. The average residential taxable value is $459,688 a decrease of $18,932 from last year’s average residential taxable value of $478,600. The average household levy would be $1,381 at the proposed rate of $0.300417/$100. This is an increase of $7.34 from the current household levy.
Alternatives:
City Council has the following alternatives:
- Approve as submitted
- Approve with changes
- Denial