Title
Hold a public hearing and consider an ordinance authorizing Substantial Amendment to the Annual Action Plan for Program Year 2025-2026 to reprogram CDBG funds from the Reunification Center Project to the Rosa Hereford Community Center and Senior Wing and Killeen Community Center Ballpark Water Reuse Irrigation System Project, in the amount of $1,349,445.69.
Summary
DATE: January 6, 2026
TO: Kent Cagle, City Manager
FROM: Tiffanie McNair, Executive Director of Community Development
SUBJECT: Substantial Amendment to the Annual Action Plan for Program Year 2025-2026 to reprogram CDBG funds from the Reunification Center Project to the Rosa Hereford Community Center and Senior Wing and Killeen Community Center Ballpark Water Reuse Irrigation System Project
BACKGROUND AND FINDINGS:
On July 15, 2025, staff presented an update to Council on the Reunification Center Project, a proposed city-owned emergency shelter facility. Council provided a Motion of Direction to suspend the project until further notice. Additional direction was given on how to proceed with preservation or reallocation of project funding: Capital Improvement Projects (CIP) funds are to be preserved until a final decision is made to reactivate or terminate the project; and Community Development Block Grant (CDBG) funds are to be reallocated to a CDBG eligible project.
CDBG grant funds allocated to the Reunification Center Project totaled $1,399,103.09. A balance of $1,349,445.69 remains.
The reallocation of CDBG funds requires a Substantial Amendment to the Annual Action Plan (AAP). A substantial amendment occurs when there is a change in the purpose, scope, location, or beneficiaries of an activity/project and must be in accordance with the Citizen Participation Plan.
On September 16th, a public hearing was held to publicize the opening of a comment period for the proposed 2nd Substantial Amendment to AAP for Program Year (PY) 2024-2025 to reprogram the CDBG from the Reunification Center Project to the Hereford Community Center and Senior Wing Project. After the public hearing, staff became aware of a potential compliance issue if the CDBG funds were to be reprogrammed to the Hereford project, compelling the withdrawal of the proposed 2nd Substantial Amendment. Public notification of the withdrawal was published on September 21, 2025.
The Community Development Advisory Committee (CDAC) was convened on November 12, 2025. CDAC received a presentation from staff which included an update on the proposed 2nd Substantial Amendment to PY 2024-2025 AAP.
Staff requested that CDAC consider reprogramming the available CDBG funds from the Reunification Center Project to the Rosa Hereford Community Center Project for unfunded expenses for kitchen appliances, furniture, and technology systems, and the Killeen Community Center Ballpark Water Reuse Irrigation System. Staff also provided CDAC with the option of not making a funding recommendation for either project during the current program year, thereby making the funds available for reprogramming in PY 2026-2027 (Fiscal Year 2027) during the regular application and funding cycle.
CDAC members present voted unanimously to recommend the CDBG funding be reprogrammed for PY 2025 with $349,455.69 to the purchase of kitchen appliances, furniture, and IT installation of systems throughout the Rosa Hereford Community Center and, $1,000,000.00 to the funding of design and construction of a new reuse water supply for an irrigation system at the Killeen Community Center Ballpark.
A public hearing was held on December 2, 2025, to receive community input on the proposed comment period for the proposed Substantial Amendment.
The citizen comment period was opened December 8, 2025, then closed on January 6, 2026. Comments were allowed to be submitted in-person, in writing, or via email.
Staff recommends that Killeen City Council approve an ordinance for the Substantial Amendment to the 2025-2026 Annual Action Plan reprogramming CDBG funds from the Reunification Center Project to the Rosa Hereford Community Center and Senior Wing Project and Killeen Community Center Ballpark Water Reuse Irrigation System Project in the amount of $1,349,445.69.
THE ALTERNATIVES CONSIDERED:
N/A
Which alternative is recommended? Why?
N/A
CONFORMITY TO CITY POLICY:
This action conforms to the Fiscal Policy and City of Killeen Citizen Participation Plan.
FINANCIAL IMPACT:
What is the amount of the expenditure in the current fiscal year? For future years?
$1,349,445.69 in current fiscal year.
Is this a one-time or recurring expenditure?
One-time.
Is this expenditure budgeted?
Yes.
If not, where will the money come from?
210-55124-500-520-412338 $ 20,121.73
210-55124-500-520-412538 $621,611.21
210-55124-500-520-412438 $707,712.75
Is there a sufficient amount in the budgeted line-item for this expenditure?
Yes.
RECOMMENDATION:
Staff recommends that City Council approve an ordinance for the Substantial Amendment to the 2025-2026 Annual Action Plan reprogramming CDBG funds from the Reunification Center Project to the Rosa Hereford Community Center and Senior Wing Project in the amount of $349,445.69, and to the Killeen Community Center Ballpark Water Reuse Irrigation System Project in the amount of $1,000,000.00.
DEPARTMENTAL CLEARANCES:
Legal
Finance
ATTACHED SUPPORTING DOCUMENTS:
CDAC Minutes November 12, 2025
Substantial Amendment Draft
Ordinance
Presentation