Summary

Council Raises Property Tax Rate 8.12%

KilleenSep 2, 20252 min read

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Killeen City Council unanimously adopted a $0.7014 property tax rate per $100 valuation, described in the motion as an effective 8.12% increase, and approved the fiscal year 2026 budget.

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Planned Unit Development

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City Council

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TransportationBudget & TaxPublic SafetyHousingUtilities

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What this means

The new tax rate applies to the 2025 tax year and supports city operations and debt service for the fiscal year beginning October 1, 2025. Council also approved changes to residential and commercial water rates and residential sewer rates, though the minutes do not provide the new amounts. Other actions included adopting a five-year capital improvement program, rezoning 19.56 acres for planned townhouse development, and approving airport terminal improvement contracts.

Key decisions

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Approved the fiscal year 2026 municipal budget unanimously, 7-0.
Ratified the property tax revenue increase reflected in the budget, 7-0.
Set the fiscal year 2026 property tax rate at $0.7014 per $100 valuation, including $0.5277 for maintenance and operations and $0.1737 for debt service; the motion characterized this as an effective 8.12% increase. The vote was 7-0.
Approved amendments to residential and commercial water rates and residential sewer rates. The new rates were not stated in the minutes.
Adopted the fiscal year 2026-2030 Five-Year Capital Improvement Program, 7-0.
Approved rezoning approximately 19.56 acres at 7610 Clear Creek Road from agricultural zoning to a planned unit development allowing residential townhouse uses, 7-0.
Awarded a $4,989,775 contract for terminal mechanical and security improvements at Killeen Regional Airport and approved related professional services agreements totaling $1,674,300.
Approved agreements supporting a diversion center, a mental health co-responder program, and substance use disorder counseling and treatment services.
Directed staff to develop proposed changes to the Parade and Assembly Ordinance with input from the Downtown Merchants Association, Downtown Advisory Committee, and Youth Advisory Commission, with a recommendation expected in October 2025. The motion passed 6-1.

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