Katy property owners face a half-cent tax rate cut that still raises the city's overall tax levy. The City Council holds a public hearing on the proposed rate at 6:30 p.m. Monday, Sept. 28, at City Hall, 901 Avenue C.

The proposed rate of $0.420 per $100 of assessed valuation is down from the current $0.425. But because home values climbed, the city's official notice says the rate will effectively raise taxes by 0.66%, adding about $2.42 in maintenance and operations taxes on a $100,000 home.

The total property tax levy would grow from $25,161,670 to $25,729,208, an increase of $567,538, or 2.26%, according to the notice.

For the average Katy homestead, the city estimates an annual tax bill of $1,643.75 in 2026, up $13.87 from $1,629.88 this year. Average homestead taxable values rose 2.05%, from $383,500 to $391,368.

The proposed rate exceeds the no-new-revenue rate of $0.407051 but falls well below the voter-approval rate of $0.443092. No election is required.

All five council members backed the $0.420 rate at the Aug. 24 meeting: Mayor Pro Tem Gina Hicks, Johnston Dietz, Paul Follis, Michael Meihls and Paula Taylor. Mayor Dusty Thiele was present but did not vote. The city's taxpayer impact statement estimates the median-valued homestead would see a $6.70 decrease in its city tax bill under the proposed rate.

More on the agenda

Beyond the tax rate, the council is set to consider more than $2 million in infrastructure contracts. Those include $383,385 to Bull-G Construction for sanitary sewer rehabilitation, $1,164,627 to Castillo Aranda of New Caney for Snow Goose Trail Phase 1 civil improvements and $496,018 to AAA Asphalt Paving of Pinehurst for paving and drainage work.

A second public hearing covers a proposed amendment to the Katy Court Planned Development District that would add roughly 3.43 acres. The city's Planning and Zoning Commission recommended approval Sept. 8.

The council will also vote on whether to authorize Katy West Municipal Utility District to issue up to $16,675,000 in unlimited tax bonds.

Three Katy Development Authority items round out the agenda. They include an easement acquisition on Morton Road for up to $83,534, a traffic signal at Katy Hockley Cutoff and Heritage Drive for up to $366,597 and a road improvement agreement for the Texas Heritage Marketplace for up to $175,000.

Residents can attend in person or watch the livestream at cityofkaty.com/live.