Katy property owners would pay a combined $1.5 million more in city property taxes under the proposed fiscal year 2026-27 budget, according to a public hearing notice certified as posted by the city on Aug. 19.

The $1,508,112 increase represents a 5.8% jump in total property tax revenue compared with the current year's budget. Of that amount, $241,066 would come from new properties added to the tax roll. The remaining roughly $1.27 million would come from existing properties, meaning most homeowners and business owners in the city would see higher tax bills even without a rate increase.

Mayor Dusty Thiele and the City Council will hold a public hearing on the budget Monday, Sept. 14, at 6:30 p.m. at Katy City Hall, 901 Avenue C.

Smaller increase than last year

The proposed increase is notably smaller than what the council approved for the current fiscal year. The FY2025-26 budget raised property tax revenue by approximately $1.96 million, or about 8.16%, according to the city's prior-year budget notice. That's a drop of more than two percentage points.

Under Texas law, when a proposed budget raises more total property taxes than the prior year, the governing body must publish a notice and hold a public hearing before adoption.

Budget workshop set for Aug. 26

A Budget Committee workshop is scheduled for Wednesday, Aug. 26, at 4:30 p.m. at City Hall to discuss the proposed spending plan. No official action will be taken.

City Secretary Becky L. McGrew certified the public hearing notice as posted at 5 p.m. on Aug. 19. The proposed budget is available for public inspection online at cityofkaty.com or in person at City Hall, Monday through Friday, 8 a.m. to 5 p.m.

The city's new fiscal year begins Oct. 1. The specific proposed tax rate per $100 of assessed valuation has not yet been published in a separate notice.

Residents can attend the Sept. 14 public hearing to comment on the budget, review the proposed document at City Hall or online, or contact City Hall at 281-391-4800.