CITY OF KATY, Texas (Covering Katy News) — The Katy City Council on Monday adopted a $73 million budget and set a property tax rate of $0.43 per $100 of property value to fund it. The budget takes effect Oct. 1.
The new budget is about $5 million, or 6%, less than last year’s $77 million budget.
The tax rate is about 1% lower than last year’s $0.43 rate. Despite this decrease, city officials expect to collect roughly $1.2 million more in property tax revenue due to rising property values.
Under the plan adopted Monday, the average taxable value of a home in Katy is about $360,000, a 10% increase from last year’s $327,000. The 2024 tax bill for an average home would be approximately $1,530, up $124, or 9%, from last year’s $1,405.
The city’s expenditures are divided into four main categories: general, debt service, enterprise, and hotel tax.
The general fund, which covers most city services, is about $54 million and makes up 74% of the budget. Public safety, including police, fire, and animal control, receives the largest share, totaling around $25 million. This is a $1.6 million, or 7%, increase from last year and will go toward higher salaries, new technology, and maintenance.
The police department will receive about $13.5 million, the fire department around $11 million, and animal control about $360,000.
The police department’s budget increase of $1.1 million is the largest among all departments.
A key component of the new budget is raising staff salaries. City Administrator Byron Hebert said step pay raises were implemented to stay competitive with other cities. This year, he said, the city proposed above-average increases for positions that were underpaid compared to similar roles in other cities.
Hebert informed the council that the salary changes were significant and that Katy would reassess its pay structure in comparison to other cities every few years.
Ward A Council Member Dan Smith said these changes help Katy stay competitive in the Houston area, particularly in public safety.
“We want Katy to be a place where people come to live and work,” Smith said. “This is a great update.”
Some departments will see budget reductions. The contingency fund will be cut by $3.5 million, and the finance department’s budget will be reduced by about $170,000. City Finance Director Andy Vasquez said the reduction is due to funds being transferred to the new IT department.
Vasquez said IT functions that were previously managed by the finance department will now be handled by the new IT department. The city is looking to hire a director for the department now that the budget has been adopted. He added that the municipal court budget is also being reduced, with its IT costs being managed by the new IT department.