Page 21 - Keller FY20 Approved Budget

Water and Wastewater

During FY 2016‐17, the city issued debt related to construction of the new 30‐inch, 12,200‐linear‐foot Alta
Vista water transmission main and the replacement of the Alta Vista pump station, which was over 40
years old. The two projects are the most significant the city has undertaken in several years and will be
completed during FY 2019‐20. Additional debt for the projects was issued in FY 2018‐19. Budgeted
projects for FY 2019‐20 include the update of the Water Master Plan/Condition Assessment, the
development of the AWIA Emergency Risk and Response Plan, and the Highway 377 and Johnson Road
12‐inch water line replacements.

Wastewater projects for FY 2019‐20 include the Big Bear West Interceptor Line Replacement, the 2020
Sanitary Sewer Evaluation study on infiltration and inflow, and the 2020 Sanitary Sewer Evaluation and
Condition study.

Drainage

FY 2019‐20 includes one‐time capital project fund transfers for a drainage master plan project for
$200,000, drainage improvements on Shady Lane South for $70,000, and phase one of the Nightingale
Circle culvert project for $325,000. The Drainage Fund will also cover the other half of the replacement
Gradall excavator for $185,000.

Economic and Business Development

Keller continued to see growth in its commercial sector in Fiscal Year 2018‐19 with more than $53.4 million
in construction activity. About $33.3 million of that construction began in Fiscal Year 2018‐19, and $17.7
million is expected to finish up by the end of the year. As Keller nears buildout, we anticipate a decline in
new commercial growth in the years ahead. Still, about $28.5 million in economic growth is expected
during Fiscal Year 2019‐20 with the addition of more than 198,000 square feet of commercial space.

This growth has occurred primarily along major arterials such as Keller Parkway (FM 1709) and Main Street
(Hwy. 377). Old Town Keller, which stretches along both sides of Main Street, has also experienced a
resurgence in office, retail and restaurant activity in the past few years. This is largely due to the $4.55
million investment the city made in Fiscal Year 2016‐17 as a first phase of redevelopment and
beautification in the area. That project is already credited for attracting sit‐down restaurants Seven Mile
Café, Roscoe’s Smokehouse, and The Station Grill & Ice House as well as a new boutique – The Lucky Acorn
— and a specialty bakery, Life is Sweet. The property owners of three additional sites are working on
proposals for mixed‐use projects.

Keller Town Center, too, has seen an increase in activity, and the commercial properties continue to be
approximately 97 percent occupied. Recent additions Summer Moon Coffee, Boca 31, Play Street
Museum, What’s On Tap and Lavender Hill Spa are all going strong, and new arrivals in Town Center
include Nestle Toll House Café by Chip, Sunny Street Café, Frios Gourmet Pops, Rush Bowls, Saigon Fusion
and Braum’s. Construction of the highly anticipated Hampton Inn & Suites at the northwest corner of Bear
Creek Parkway and Town Center Lane is also fully underway and hopes to open in the first quarter of 2020.

Another significant commercial project under construction now is Everest Rehabilitation Hospital on
South Main Street, a $20 million physical rehab facility offering in‐patient and out‐patient care. And Keller

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