The City of Katy’s city council took the first steps toward a new budget and potential approval of the 2026 tax rate during its August 24 meeting at City Hall. A roll call vote on the proposed tax rate of $0.420 paved the way for the next steps, which will be public hearings.

Mayor Dusty Thiele said that a public hearing on the proposed 2026-2027 budget would be held at 6:30 p.m. on September 14, followed by a public hearing on the proposed tax rate on September 28 at 6:30 p.m. Both hearings will be held at City Hall, 901 Avenue C in Katy.

In agenda documents, city officials said that the proposed budget will create more total property taxes than the previous year by $1,508,112 or 5.8 percent. Of that amount, $241,066 is expected to come from new property added to the tax roll this year.

Issuance of waterworks and sanitary sewer bonds not to exceed $20,600,000 were also approved to finance new water treatment facilities. Councilmember Johnston Dietz praised city staff for the accuracy of their capacity forecast.

Council also authorized an agreement between the city and PropertyRoom.com Inc. for the sale and disposal of unclaimed property held by the Katy Police Department. It is the first such sale by KPD, said Police Chief Bryon Woytek. Woytek said that some items in the department’s property room had been there for 20 to 30 years and that conducting the sale would free up space for the department. Officials said that some items would be moved to Tennessee for disposition while jewelry items would be sent to Meyerland for appraisal. There is no cost to the program, KPD officials said. PropertyRoom.com splits the first $1000 in proceeds 50-50 with KPD, and additional proceeds are shared with KPD receiving a 75 percent share. No date for the sale was announced.

More emergency asphalt repairs to Igloo Road were approved, using $79,000 in METRO funds. Agenda documents said that the roadway has deteriorated significantly due to heavy truck traffic, resulting in damage to vehicles. Mayor Pro Tem Gina Hicks questioned the repeated repairs to the roadway and City Engineer David Kaspar said that the roadway would eventually be redone, but that project was seven to eight years off. The current resurfacing project is expected to prove a three to five-year life extension of the roadway until a new plan can be developed with Waller County, Waller County Road Improvement District 1 and possibly the City of Fulshear, according to agenda documents. The projected future road development project is proposed to be a permanent concrete roadway designed to carry a large amount of warehouse-related traffic, the documents said.

In other action, council:

*Approved annexation of four acres of land in Fort Bend County. City officials said that the land would be developed for commercial purposes.

*At the request of TxDOT, approved a change to speed limits along a portion of Highway 90 that is within the city limits. The parts of Highway 90 between the west city limits near Woods Road to just west of Schlipf Road and just east of Choctaw Lane to Tubular Road have been changed to 50 mph. From west of Tubular Road to near Caroline Street, the new speed limit is 45 mph. From west of Carolina to the centerline of Buffalo Bayou, the new limit is 35 mph.

*Conveyed a 60-foot right-of-way easement at Tiger’s Way to Katy ISD and to Tractor Supply.

The next meeting of city council is September 14 at 6:30 p.m. at City Hall, 901 Avenue C in Katy.