Page 21 - Keller Budget FY21

Water and Wastewater

During FY 2016‐17 and FY 2018‐19, 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 were completed in FY 2019‐20. Budgeted projects for FY 2020‐21 include water tank maintenance for
$600,000, the installation of the supervisory control and data acquisition system for $540,000, and
Highway 377 and Johnson Road 12‐inch water line replacements for $133,905. The city also plans to issue
debt in FY 2020‐21 related to the 2021 SWIFT project.

Wastewater projects for FY 2020‐21 include the replacements of system mains and service lines for
$500,000, the 2021 Sanitary Sewer Evaluation study on infiltration and inflow for $180,000, and the 2019
Sanitary Sewer Evaluation and Condition study for $120,000 (Year 3 funding).

Drainage

FY 2020‐21 includes one‐time capital project fund transfers for the Nightingale Circle culvert project (Year
2 funding) for $368,000, and the Drainage Master Plan update for $200,000.

Economic and Business Development

Keller continued to see growth in its commercial sector in Fiscal Year 2019‐20 with more than $67 million
in construction activity. About $11 million of that construction began in Fiscal Year 2019‐20, and $46
million is expected to finish up by the end of the year. Economic projections anticipate a decline in new
commercial growth in the years ahead as a result of COVID‐19 impacts. However, we anticipate about $40
million in economic growth during FY 2020‐21 with the addition of more than 258,000 square feet of
commercial space.

Historically, growth has occurred primarily along major arterials such as Keller Parkway and Hwy. 377. In
the next fiscal year, the second phase of improvements proposed in Old Town Keller and the creation of
a Tax Increment Reinvestment Zone, which stretches along both sides of Hwy. 377, is anticipated to spur
resurgence in office, retail and restaurant activity. Construction is also expected to begin on the recently
approval mixed‐use project known as Center Stage, which is estimated to generate $39 million in primary
economic impact annually upon buildout.

Recent additions to Keller Town Center like Jason’s Deli and Braum’s are going strong, but the district has
seen a decrease in activity this year with commercial occupancy rates dropping to approximately 92%.
The newest arrival in Town Center is the highly anticipated Hampton Inn & Suites, which has seen
occupancy rates of 17‐20% during the week and 75‐100% on the weekends since opening its doors.

Another significant commercial project to recently reach completion is Everest Rehabilitation Hospital on
South Main Street, a $20 million physical rehab facility offering in‐patient and out‐patient care. Keller also
added another private event center, Chandon Arbors, in Old Town on land fronting Elm Street sold by the
city four years ago.

The Fiscal Year 2020‐21 Adopted Budget includes $762,800 for economic development incentives, with
$352,800 related to committed incentives and $410,000 available for potential new incentives.

19