To: Mayor and Council
From: Aaron Rector, City Manager
Subject:
Title
Consider a resolution ratifying the tax revenue for the Tax Year 2025 (Fiscal Year 2025-26) 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) 2025-26 Budget anticipates additional property tax revenue of $174,509 (0.72 percent) over FY 2024-25 budgeted property tax revenues, so a resolution ratifying the tax revenue reflected in the adopted budget is required.
New construction is accounting for approximately $158,015 (90.5 percent) of that increase, with the remainder $16,494 or 9.5 percent attributed to increased values among existing properties.
The tax rate proposed in the FY 2025-26 Budget is $0.28700 is a decrease of $0.00412/100 from the FY 2024-25 rate. With the proposed tax rate, the average homeowner will pay $1,373.58 or $0.30 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 2025-26 budget:
General Fund (maintenance & operations) = $20,562,374
Debt Service Fund = $3,549,634
TIRZ #2 Fund = $231,292
Total Property Tax Revenue= $24,343,300
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