CITY OF KATY, Texas (Covering Katy News) — Katy City Council unanimously adopted a $90.5 million budget Monday and set the city’s property tax rate at 42 cents per $100 of assessed valuation.
The budget is approximately $3.8 million larger than last year’s, while the tax rate is half a cent lower. A lower rate can still generate more property-tax revenue as the city’s taxable property base grows.
The budget takes effect Oct. 1.
Police, fire receive major allocations
The general fund, which covers the city’s basic operations, is the largest of four funds in the budget. It totals approximately $68.8 million, an increase of about $8.7 million from last year.
The largest allocations include $16.4 million for the Katy Police Department, $15.6 million for contingency and $11.7 million for the Katy Fire Department.
Police Chief Bryon Woytek said the new police and fire facility, which will be located at Texas Heritage Marketplace, was not yet designed, but a design firm has been hired.
The enterprise fund, which covers city water and wastewater operations, totals approximately $16.6 million, a decrease of about $5 million from last year.
The debt service fund totals approximately $3.3 million, a decrease of about $45,000. The hotel tax fund totals approximately $2 million, an increase of about $50,000.
Property-tax revenue expected to rise
The adopted budget projects $1,508,112 more in property-tax revenue than last year’s budget, a 5.8% increase, according to figures announced during the meeting.
Of that increase, $241,066 will come from new property added to the tax roll.
The adopted rate consists of approximately 37 cents per $100 of assessed valuation for maintenance and operations and 5 cents for debt service.
During the public hearing, resident and former candidate for Mayor, Michael Payne welcomed the rate reduction but urged council to consider a deeper cut and look for ways to reduce spending.
Council subsequently approved the tax-rate ordinance unanimously.
A lower city tax rate does not necessarily mean every homeowner will receive a smaller tax bill. Individual bills also depend on taxable property values and exemptions, as well as rates set by other taxing entities.
City Administrator Byron Hebert said the city will continue to offer a 20% homestead exemption, the highest percentage allowed under state law.