On September 28, the Katy City Council voted unanimously to adopt the city’s fiscal year 2026‑27 budget. The plan balances $90.5 million in projected expenditures with $90.4 million in anticipated revenues, reflecting a disciplined approach to fiscal stewardship while still investing in the community’s most pressing needs.
Key Priorities and Funding Levels
The budget emphasizes three core areas: public safety, infrastructure and quality‑of‑life capital projects. The general fund receives $68.7 million, of which $16.4 million is allocated for police department operating and personnel costs and $11.7 million for fire department operations and staffing. An additional $14.6 million is set aside for capital improvement projects, moving money from the general fund into the capital reserve fund to support long‑term investments.
Infrastructure Projects
Major capital projects include a $2.2 million initiative funded through the city’s enterprise fund, which draws on water utility revenue. The projects break down as follows:
- $1.1 million for water meter replacements
- $300,000 for mainline and tap replacements
- $250,000 for additional mainline replacements
These upgrades are designed to improve water delivery reliability and reduce long‑term maintenance costs for residents.
Employee Compensation
To retain and attract qualified staff, the council approved a uniform 1.5 percent raise for all eligible full‑time employees. Because each step in the city’s salary schedule is set at 2.5 percent, the cumulative effect translates to a roughly 4 percent increase for most workers. Employees already at the top of their salary range will still receive the 1.5 percent adjustment.
Property Tax Rate Reduction
In a move that directly benefits homeowners, the council lowered the property tax rate to $0.42 per $100 valuation. The rate is broken down into $0.369939 for maintenance and operations and $0.050061 for interest and sinking‑fund obligations. Despite the lower rate, total property‑tax revenue is projected to rise by $1.51 million—about 5.8 percent—thanks to growth in the tax base. New property added to the roll is expected to generate $241,066 in additional revenue.
Impact on Residents
Under the adopted rate, the average property‑tax bill is estimated at $1,552. The modest increase in overall revenue, combined with the tax‑rate reduction, reflects Katy’s expanding population and the city’s ability to fund essential services without overburdening taxpayers.
Implementation Timeline
The FY 2026‑27 budget becomes effective on October 1, 2026, and will run through September 30, 2027, according to the city’s official website. The council’s unanimous vote signals broad community support for a balanced budget that safeguards public safety, upgrades critical infrastructure and keeps taxes affordable.
Original reporting: Community Impact — Houston — read the source article.
