Page 16 - Microsoft Word - FY 2021 tax info sheet

September 21, 2021

To the Honorable Mayor Mizani and Members of the City Council

Re: The Annual Budget for Fiscal Year 2021‐22

It is my privilege to present to you the FY 2021‐22 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 total FY 2021‐22 Adopted Operating Revenue Budget is $93,199,128, an increase of $6,851,288 or
7.9% from the current budget, and the expenditure budget is $100,247,944 — an increase of $13,882,022
or 16.1%. The increase to the budget is skewed high by the creation of the Self‐Insurance Fund and the
funding of several large one‐time expenditures. With the self‐insurance fund revenue budget of
$4,581,640 removed from total revenue, the revenue increase is $2,269,648 or 2.6%. On the expenditure
side, when the self‐insurance fund expenditure of $4,541,645, one‐time commitments to street and
sidewalk maintenance of $5,300,057, fire engine replacement of $1,448,000, and purchase order rollovers
of $219,451 are removed, the expenditure increase is only $2,378,790 or 2.7%. Even with the large
expenditure commitments, the FY 2021‐22 Adopted Budget still continues the trend of providing property
tax mitigation. The budget increases the homestead exemption from 14% to 20% and adopts a tax rate
of $0.3950 which is the below the no new revenue rate for the fourth year in a row. More importantly,
the average tax bill will be reduced by $15 versus the potential increase of $81 seen with the June
estimated values. This a total tax mitigation of $96 which is the largest tax mitigation the City has provided
to date. Even with the substantial tax mitigation, the City will continue to provide excellent services and
to make significant investments into street and sidewalk infrastructure.

In pursuit of continually honing and improving the city’s services, City Council held a Strategic Planning
Workshop in March 2021 that resulted in five overall community goals and an updated Strategy Map for
the City of Keller. These five goals are:

1. Elevate Family Life
2. Attract Vibrant Development
3. Demonstrate Fiscal Discipline
4. Improve & Maintain Sound Infrastructure
5. Put People First

These goals — and the strategies established by City Council to achieve them — were integral to crafting
the FY 2021‐22 Adopted Budget, helping ensure that it meets council’s vision for delivering excellent
quality of life and safety to our citizens while mitigating their property value increases through maintaining
a low tax rate and raising the homestead exemption. I believe this budget reflects the vision of the City

14