The Katy City Council Monday night held its second of two state law-mandated public hearings on the tax rate to fund the 2017-2018 city budget.
The city will have a larger tax base to work with this year, thanks to growth in housing. Estimated tax revenues are $9.7 million, a 12% increase from the current figure of $8.6 million.
City officials said that, in legal language, the tax rate is increasing because the effective tax rate of $0.469618 per $100 assessed property value is increasing under the proposed tax rate of $0.486720 per $100 assessment.
However, last year’s tax rate, $0.506720 per $100 assessment, is being lowered to that proposed $0.486720 tax rate—a two-cent tax cut.
The effective tax rate is the total tax rate needed to raise the same amount of property tax revenue for the city from the same properties in both the 2016 and 2017 tax years. The proposed rollback tax rate, $0.515101 per $100 assessment, is the highest tax rate that the city may adopt before voters can petition for an election to limit the rate that may be approved to the rollback rate.
This is the fifth consecutive that the city has given a property tax cut.
Nobody testified at either Monday’s, or last Thursday’s public hearing, on the tax rate.
The council is expected to adopt the tax rate at a special city council meeting set for 3 p.m. Friday at Katy City Hall.
Monday’s meeting also featured a public hearing about the proposed city budget. Nobody testified about it.
The city’s fiscal year begins in October. The proposed budget is for $26.1 million, a six percent increase from the current budget of $24.6 million. The proposed city budget can be accessed on the Katy city web site.
In other action Monday, the council:
- Approved the July 10 and July 24 council meeting minutes.
- Approved a street closure request for First United Methodist Church Katy, 5601 E. 5th St. Under the request, Fourth Street between Avenue A and Avenue B will be closed from 5-9 p.m. on October 28 for a family event.
- Approved the Third Annual Graeme’s Run to be held February 10, 2018.
- Approved the Katy Christian Ministries and Katy Police Department’s Heroes Race Against Domestic Violence to be held October 21.
- Approved a $24,800 tax grant for the Katy Triathlon at Firethorne, to be held October 2.
- Approved a $16,000 tax grant for Texan Live, for online video streaming, from September 2017-2018.
- Approved a $12,000 tax grant for radio and television and Internet ads from August 7, 2017, to July 31, 2018 for the Texas Sports Radio Network.
- Approved a $22,180 tax grant for television advertising for the fiscal year 2017-2018 for KUBE, Channel 57.
- Adopted a resolution moving uncollectible water, sewer, and garbage accounts from October 1, 2014 through September 30, 2015 to a bad debt historical account.