Killeen city manager proposes cut in tax rate
Published: Thu, 07/13/23
Killeen city manager proposes cut in tax rate
(file photo)
FOX 44 KWKT
by: Roland Richter
Posted:
Updated:
Killeen, Tx (FOX 44) – Killeen City Manager Kent Cagle has proposed another tax rate cut as he presented his budget plan to City Council.
The proposed budget includes a tax rate of 62.08 cents, and the current fiscal year 2023 tax rate is 62.33. The current FY23 tax rate is the largest reduction in the tax rate since 1990. Over the past three years, the City’s tax rate has been reduced 12.65 cents. Prior to these three instances, the last reduction in the tax rate occurred in 2005.
In his presentation, he proposed spending $120.3 million – which is a six percent increase over the current spending level.
Major General Fund expense requests from departments include a new Public Safety position, a pay increase for paramedics, overtime for fire operations, the civil service compensation plan and a 6-7 percent cost of living increase for employees. There were about $10 million in requested items from departments that were not funded.
Other major General Fund operating expenses in the proposed budget total more than $2 million and include the Hill Country Transit District (HOP) of $750,000, Information Technology ($484,927) and Mowing Transition from Solid Waste ($367,508), among others.
There is a proposed residential water rate increase of $1.50 and a proposed sewer increase of $1.50 a month, due to the Water Control and Improvement District’s (WCID) increase of more than $800,000. The proposed rate increase is only to the minimum rate, and there is no proposed change in the volumetric rate.
The cut in the tax rate despite the increase in spending has been made possible due to an increase in property values and new construction.
The first public hearing on the proposed budget is set for August 1. Council will decide if a second public hearing is necessary and, if so, this will be held on September 5. The new budget is scheduled to be adopted on September 12.
If you would like to see all the details in the city manager’s 461-page proposed budget, you can go here.