Page 45 - Keller Budget FY21

Ad Valorem Taxes:

Ad valorem tax is the largest revenue source for the City of Keller and is split between the General Fund
(Operations and Maintenance tax rate) and Debt Service (Interest and Sinking tax rate). The proposed
FY 2020-21 rate is $0.395 per $100 of taxable value (/100), which is a decrease of $0.0049/100 from the
FY 2019-20 rate and is under both the voter-approval tax rate and no new revenue tax rates. The total
levy will decrease by $587,953 or 2.4%. Had it not been for the new levy, which added $288,495, the
existing levy would have decreased by $876,448. For the average household, the taxable value has
decreased from $355,394 to $351,817 which reflects a homestead exemption increase from 12% to 14%.
With the lowered ad valorem rate and the increased homestead exemption, the average home ad valorem
levy decrease is $31.54 or $2.63 per month. Without the increased exemption and rate reduction, the
average household levy would have increased by $42.36 or $3.53 per month. The estimated property tax
revenue for FY 2020-21 is $23,718,635 for all funds.

25,000,000 0.450000

0.440000
20,000,000
0.430000

15,000,000
0.420000

0.410000
10,000,000
0.400000
5,000,000
0.390000

‐ 0.380000
FY 2016‐17 Actual FY 2017‐18 Actual FY 2018‐19 Actual FY 2019‐20 FY 2020‐21
YE Proj. Adopted Budget

O&M I&S TIRZ Total Rate

The Operations and Maintenance (O&M) rate is $0.324190/$100, which is an increase from the FY 2019-
20 rate of $0.318276/$100. O&M revenue is anticipated to be $19,920,585 or 84.5% of property tax
collected. The General Fund property tax growth will increase by $45,286 or 0.2%. The interest and
sinking rate (I&S) is $0.0708100/$100 and is a decrease from the FY 2019-20 rate of $0.0816239/$100.
I&S revenue is anticipated to be $3,661,877, which is a decrease of $633,238 or 14.7%.

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