To: Mayor and Council
From: Aaron Rector, City Manager
Subject:
Title
PUBLIC HEARING: Consider an ordinance adopting the annual budget for the City of Keller, Texas, for the Fiscal Year beginning October 1, 2025 and ending September 30, 2026, including the 2025-26 Capital Improvements Program, and adopting the Fiscal Year 2025-26 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) 2025-26 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 2025-26 Proposed Operating Budget expenditures are $111,304,105, a decrease of $3,491,701 or 3.04 percent from the FY 2024-25 Adopted Budget. Included in the Proposed Budget is one-time funding of $1,620,616 for Sports Park Revitalization project, $1,172,707 for additional street maintenance, $550,000 for sidewalk improvements, and $506,710 for a replacement ambulance. The published Proposed Operating Budget expenditures were $110,636,001 or $668,104 lower than the current proposed budget. The increase is related to communication signs, Public Works software implementation, outdoor warning sirens, and vehicles purchased in FY 2024-25 but being delivered in FY 2025-26.
The Proposed Capital Budget is $10,024,455 and all is cash-funded by the City. The Proposed Capital Budget increased by $500,000 from the published proposed budget for the pump replacement at the Pearson Pump Station.
The FY 2025-26 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 18, 2025. The City Council conducted the required public hearing for the Crime Control budget on July 15, 2025.
-The Keller Development Corporation Board reviewed and approved the Keller Development Corporation budget on June 10, 2025. The City Council conducted the required public hearing for the KDC budget on July 15, 2025.
-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 27, 2025.
Legal Review:
Not applicable.
Alternatives:
City Council has the following alternatives:
- Approve as submitted
- Approve with changes
- Denial