Page 16 - Keller Budget FY21

September 15, 2020

To the Honorable Mayor McGrail and Members of the City Council

Re: The Annual Budget for Fiscal Year 2020‐21

It is my privilege to present to you the FY 2020‐21 Adopted Budget. This budget represents months of
hard work from your budget team and department directors, and continues our tradition of conservative
fiscal management paired with a commitment to our core values of excellence, integrity, service, creativity
and communication. As always, we remain focused on exploring new opportunities to provide high levels
of service to our citizens in a manner that is both innovative and resourceful.

The City of Keller experienced challenges in FY 2019‐20 as a result of the ongoing coronavirus pandemic.
Despite this, the city has done an excellent job of weathering this period of uncertainty and has been able
to remain steady in our revenues and decreased expenditures where possible. This budget represents the
collective vision of the City Council to maintain municipal services at a level that delivers excellent quality
of life and safety to our citizens while mitigating their property value increases through lowering the tax
rate and raising the homestead exemption.

For a seventh year in a row, this year’s adopted budget reduces the city’s property tax rate — by 0.49
cents. At $0.395 per $100 of taxable value, the adopted rate sits below both the voter‐approval tax rate
of $0.416278/$100 and the no new revenue rate of $0.417588/$100.

Taxable Value vs. Tax Rate

6,500,000,000 $0.450
6,000,000,000 $0.440
$0.430
5,500,000,000
$0.420
5,000,000,000
$0.410
4,500,000,000
$0.400
4,000,000,000 $0.390
3,500,000,000 $0.380
3,000,000,000 $0.370

TAXABLE AD VALOREM Tax Rate

FY 2020‐21 will also see another increase to the homestead exemption after City Council this June
approved increasing the local option from 12% to 14%.

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