By George Slaughter
Katy City Hall
The Katy City Council Monday set a Sept. 27 public hearing to consider and adopt a proposed tax rate for its forthcoming 2021-22 city budget.
The proposed tax rate is $0.447168 per $100 property evaluation, which reflects no change from last year’s rate. If adopted by the council, it would mark the second time in the past five years that the city has kept property taxes the same and not reduced the rate.
The city last kept the property tax rate the same in 2018. That year, city officials wanted to restore the city’s financial reserves after spending some of that money on emergency, Hurricane Harvey-related projects.
The city’s commercial and residential growth gives the city a growing tax base, which enables the city to increase its revenues without raising property tax rates.
Property taxes are one key revenue source for the city. Sales taxes are the other source. City Administrator Byron Hebert said the most recent sales tax allocations are trending to pre-pandemic levels, but recently passed state legislation could change that.
“The results could result in loss of sales tax revenue due to sales of commercial businesses made to customers outside of city limits,” Hebert said in a letter to the council, adding that the expected change of allocation is unknown right now.
City officials have prepared a $34.4 million budget, on the city website. The budget is a $1.5 million increase from the current $33 million budget. Officials will hold a Sept. 2 workshop to review the budget with council members and city staff.
“As you review the budget, please keep in mind that since March 2020, the city experienced interruptions in various city revenues, primarily sales tax revenue which is a major funding source for the city’s operating budget,” Hebert said. “This interruption lasted through August 2020. The previous year budget was based on the unknown continuance of that interruption. The previous FY 21 budget projected conservative revenues that covered continued services to the public. Projects were referred an employee cost-of living increases were deferred as well until midyear when the revenue showed signs of consistency at a normal level.”
Hebert said the city projects a surplus of revenue and plans to add projects and pay down some capital purchases.
Following public hearings, the council is expected to give final adoption on both the tax rate and budget at its Sept. 27 meeting.
Stop Signs Added at Selected Intersections
The council Monday voted to install stop signs at the following intersections:
- Lakeview Way and Kingsland Boulevard.
- Lakeview Way and Boardwalk Drive.
- Prairie Parkway and Kingsland Boulevard.
- Prairie Parkway and Boardwalk Drive.
- Boardwalk Drive and Prairie Parkway.
- Boardwalk Drive and Lakeview Way (Katy Boardwalk).
Other Actions Taken
In other action Monday, the council:
- Observed a Keep Katy Beautiful presentation of the Katy Proud Business Award to The Hub, 5614 1st
- Received an update on the Katy Rice Festival, the parade for which is set for Oct. 2 and the festival is set for October 8-10. The council voted to close selected streets on those dates so the parade and festival can be staged. Proceeds benefit local scholarships. Hebert said the festival needs volunteers, and they are asked to visit the katyricefestival.com website for more information.
- Approved the Katy Triathlon at Cane Island, set for Sept. 5, to reflect last-minute route changes.
- Approved the No Label Brewery COVID-19 Charity Run, set for Dec. 11.
- Approved a 26.39-acre final plat in Cane Island, section 13.
- Accepted water, wastewater, drainage, and roadway facilities improvements for sections 33-34 of Cane Island.
- Awarded a $585,408 contract to Main Line Industries of Houston to replace deteriorated concrete sanitary sewer pipe on South Street and Danover Road.
- Awarded a $207,135 contract to PRV Services of Katy for Igloo Road emergency pavement repairs, and a $32,170 change order for additional repairs northbound of the project.
- Authorized a $85,600 change order with Weisinger for additional column assembly and changes to the proposed pump and motor on Water Well No. 10, located at 29900 Kingston Blvd. in Brookshire.
- Issued $5 million in unlimited series 2021A tax road refunding bonds by Fort Bend-Waller Counties Municipal Utility District No. 2.
- Issued $4.5 million in unlimited series 2021B tax road refunding bonds by Fort Bend-Waller Counties Municipal Utility District No. 2.