Killeen’s New Budget and Tax Policy: What Local Residents Need to Know

Killeen’s City Council has approved a new budget and property tax policy set to take effect for the 2026-27 financial year, beginning July 1. The policy, adopted at the council’s June 25 meeting, reworks how much residents pay in property taxes and where public funds will be directed for city services, maintenance, and investment. All Killeen property owners will see changes in their fall tax bills, while renters may feel the impact through adjustments to rent or service costs.

Why Budget Changes Matter Now

This budget cycle arrives as Killeen faces rising costs in infrastructure and public safety, along with a population that has grown by nearly 7% over the past five years, according to the U.S. Census Bureau. City officials say the revised budget is intended to balance essential service expansion-such as new fire and EMS hires on Trimmier Road-and the need to avoid excessive tax hikes. The city’s Finance Department reported at the June hearing that more than 65% of general fund expenditures this fiscal year are for police, fire, and public infrastructure, up from 60% three years prior.

Impacts on Daily Life in Killeen

The new policy lowers the city’s property tax rate by 2.5 cents per $100 of assessed value, the first decrease since 2021. For a resident with a home valued at the city’s median-$185,200, as estimated by Bell County Appraisal District-the change translates into saving roughly $46 in annual city taxes. However, the policy also reduces some exemptions and increases service fees for waste management and stormwater by a combined $24 per household per year, according to the 2026-27 Adopted Budget. Policy analysts say homeowners will see modest overall gains, but renters’ costs may inch upward if landlords adjust rents to reflect higher utility fees.

Local advocates note that funding for library programs and street repairs will climb slightly under the new budget. The city has dedicated $3.1 million, an increase of $400,000 over last year, for residential street resurfacing-focusing on North Gray and Old FM 440. Youth recreation and after-school programs will receive a $200,000 boost. The legislation states that the city’s new revenue-neutral rate (the amount that would raise the same total property tax revenue as last year, excluding new construction) is projected to keep Killeen’s overall tax burden close to flat, but rising home values could alter the final impact on households.

By the Numbers

The 2026-27 City of Killeen General Fund budget totals $118.4 million, compared with $114 million the previous year. About 52% of that comes directly from local property and sales tax collections, while the rest is from service fees and state or federal grants. The new tax rate is $0.698 per $100 of assessed valuation, as detailed in Ordinance No. 23-21. City data show that the increase in spending for road maintenance represents a 15% jump over the prior fiscal year. City staff project capital improvement bond-funded projects, such as sewer upgrades downtown, will follow in early 2027.

City officials have published an online calculator allowing residents to estimate their new tax bill and compare it to last year’s costs. The council’s final vote was unanimous, with all seven members present on June 25, according to the official minutes.

What Comes Next for Residents

Residents will receive updated property tax assessments in August, with payments due beginning in October. The city government says the fee changes will appear in monthly utility bills mailed after July 15. The Killeen City Council has scheduled a public review session on October 12 to hear feedback on the policy’s real-world impacts, and a mid-year budget amendment is expected by March 2027 based on revenue performance and community needs. Local analysts recommend residents review their property valuations for accuracy and attend fall budget workshops if concerned about future increases.