Page 17 - Keller Budget FY21

With the increased exemption and reduced tax rate, the average Keller homeowner this year whose
property is assessed at $351,817 will pay $1,390 in city taxes. Had the tax rate not been lowered and the
homestead exemption not increased this year, the average homeowner would be paying $1,432 — $42
more.

The Adopted Budget FY 2020‐21 General Fund budget is $39,330,897, which is a decrease of $1,332,087
or 3.3% from FY 2019‐20. This total includes personnel increases, the reconstruction of Shady Grove Road
from Keller‐Smithfield to Smithfield road, replacement wayfinding signs, the replacement of a crack
sealing machine for street repairs, additional funding for miscellaneous concrete repairs, various vehicle
replacements and many more investments into our community.

Included in the General Fund are adopted one‐time expenditures totaling $2,177,865. When those one‐
time projects are removed from the current and adopted budgets, ongoing General Fund expenditures
would increase by $628,354 or 1.72% year over year. By cash funding one‐time projects in the General
Fund, the city is able to meet current service demands, including capital maintenance needs, without
issuing debt.

The adopted Water and Wastewater Fund budget shows an increase of $261,218, or 0.96%, compared to
FY 2019‐20. Included in that total are contracts for water purchases from the City of Fort Worth, and
wastewater treatment and collection services from the Trinity River Authority. Combined, these two
contracts amount to $12,268,344 — 44.5% of the Water and Wastewater budget. Both contracts will be
slightly increasing for FY 2020‐21, which will be reflected in the pass‐thru portion of customers’ rates.

The adopted budget and pass‐thru rates reflect increases of 1.25% from Fort Worth and 1.3% from the
Trinity River Authority. The city water rates will have a moderate increase, and the wastewater rates will
have a decrease. The average resident’s monthly water bill will increase by $1.25 per month (1.60%) in
the year ahead. The average monthly sewer bill will decrease by $0.88 (2.1%) in the year ahead. The
average utility customer’s monthly bill, then, will see a total increase of $0.37 or 0.31%.

Significant Changes to the Budget

City Council continues to recognize the need to be proactive when it comes to planning for repairs and
replacements of capital investments and critical equipment. Aimed at cash funding future projects rather
than issuing debt, in FY 2019‐20 the council approved a Fire/EMS replacement program that will set aside
money annually to pay for expected equipment replacements. The Fire/EMS replacement program is the
latest addition to the city’s replacement allocations, which include accounts for fire apparatus, vehicles,
heavy equipment, technology and city facilities. The FY 2020‐21 General Fund budget will continue these
annual transfers, ensuring that equipment will be promptly repaired or replaced when its useful life has
ended.
The FY 2020‐21 Adopted Budget also continues council’s commitment to cash funding capital projects
whenever possible. Of the nearly $5.3 million in water system improvements, $3.9 million in street
improvements, $1.5 million in park improvements and $800,000 in wastewater system improvements
proposed this year for a total capital project investment of more than $11.3 million, only $4 million — less
than half — will require issuing debt.

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