Page 21 - CityofKellerFY25Budget

opportunities in pedestrian-oriented districts in both Old Town and north along Hwy. 377, where the
Center Stage project anticipates future residential and commercial development phases.

Enhancements along the South Main Street corridor, utilizing the Texas Department of Transportation
Green Ribbon Program, will further the city's revitalization efforts in creating a cohesive Old Town district.
The project, which includes native Texas plantings and decorative hardscapes, is aimed at beautifying the
area and renewing commercial interest along Main Street. The city hopes to continue utilizing the Green
Ribbon program to improve other commercial corridors in the city, including Keller Parkway and North
Main Street.

Strategy 2.5: Review and Update the Incentive Policy to Promote Economic Development

City Council approved an update to the Façade Improvement Grant Policy in June 2021 and the
Comprehensive Incentive Policy in January 2022, demonstrating the city's commitment to attracting
desirable businesses and development. These policy updates have equipped the city to prioritize the
attraction of businesses that fulfill Strategy 2.3, such as the 65,000-square-foot multi-sport recreational
facility by ME Development LLC and the expansion of an existing business, Houghton Horns, to include a
performance hall that will bring world-renowned brass instrument artists to perform and teach master
classes in Keller. The policy also prioritizes development within TIRZ No. 2. City Council has approved five
incentive agreements under the new policy, four of which are located in this high-priority geographic area.
Prioritizing new development in TIRZ No. 2 also supports Strategy 2.1, as this area's new ad valorem
revenue will fund improvements in Old Town Keller.

In FY 2023-24, the Façade Improvement Grant program set another record in grants awarded by the City
Council, which total $50,000 year-to-date, contributing to over $180,000 of private investment to improve
commercial building facades. City staff will continue to review this policy and recommend any updates to
maintain the momentum gained in encouraging private investment to revitalize older commercial
buildings within the city.

Goal 3: Demonstrate Fiscal Discipline

Strategy 3.1: Maintain Conservative Budgets that Prioritize Spending Where it Matters Most

The total FY 2024-25 Adopted Operating Revenue Budget is $107,152,938, an increase of $3,786,005 or
3.7% from the current budget, and the expenditure budget is $114,795,525— an increase of $3,921,780,
or 3.5%. The increase of only 3.5% in expenditures for FY 2024-25 compared to FY 2023-24 speaks to the
conservative spending approach embraced by staff and City Council.

The budget changes to the two major operating funds are briefly discussed below, and a more detailed
discussion of all fund changes can be found in the Statistical Analysis section of the budget.

General Fund
The adopted General Fund budget is $50,294,734, an increase of $5,944,009 compared to the current
year. However, excluding one-time expenditures in both years, this year's General Fund budget represents
an increase of $1,716,106 or 4.1%, from FY 2023-24. Included in the General Fund are proposed one-time
expenditures totaling $6,894,874. Significant one-time expenditures include $2,860,000 for the Keller

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