CITY OF KATY, Texas (Covering Katy News)—The Katy City Council on Monday adopted a $74.7 million budget for 2025-26 and ratified a tax rate of $0.425 per $100 property valuation to fund it.
Budget Decreases 5.3% Despite Rising Property Values
The budget represents a $4.2 million, or 5.3%, decrease from last year's amended budget, city officials said.
While the tax rate remains unchanged from last year, the budget is expected to generate about $1.96 million more in property taxes than last year's budget due to rising property values. Of this amount, $315,737 will come from new property added to the tax rolls, city officials said. Steady corporate property tax revenues have enabled the city to maintain the same tax rate as last year, according to Council Member-at-Large and Mayor Pro Tem Chris Harris.
City Administrator Highlights Infrastructure and Public Safety Priorities
In a letter accompanying the budget, City Administrator Byron Hebert said the budget maintains a continued focus on public safety, aging roadway improvements, water and wastewater infrastructure, strategic quality of life capital projects, growth management, and adequate staffing.
"I feel strongly that the initiatives included in this budget will continue to make Katy a desirable place to live, work, and play," Hebert said.
Hebert noted that infrastructure replacements and construction, combined with the increased need for public safety services as Katy grows, make it more challenging for the city to achieve a balanced budget for the general fund, which represents the largest budget item.
General Fund Receives $55 Million for Public Safety and Services
The budget adopted Monday allocates approximately $55 million, or 74%, to general fund expenditures. General fund expenditures include public safety—fire, emergency services and police protection—and public works. Other departments under the general fund include city administration, the city secretary, human resources, parks and recreation, and community development.
Water and Wastewater Operations Get $14.3 Million in Enterprise Funding
The budget allocates approximately $14.3 million, or 19%, toward the enterprise fund, which covers water and wastewater operations. Other expenditure categories include debt service ($3,371,177, or 5%) and the hotel occupancy tax fund ($1,860,149, or 2%), which supports city tourism promotion.
Revenue Sources Support City Operations and Growth
The city expects to raise approximately $55 million, or 74%, to support its general obligations, and about $14 million, or 19%, for enterprise fund activities.
The city anticipates collecting $3,090,199, or 4%, for debt service and $1.9 million, or 2%, in hotel occupancy taxes.