Title
HOLD a public hearing and consider an ordinance amending the FY 2024 Annual Budget of the City of Killeen to increase revenue and expense accounts in multiple funds.
Body
DATE: September 17, 2024
TO: Kent Cagle, City Manager
FROM: Judith Tangalin, Executive Director of Finance
SUBJECT: Budget Amendment
BACKGROUND AND FINDINGS:
This budget amendment addresses the following 23 items:
• Insurance Claims:
o Allocating funds to the claims and damages accounts to cover insurance claims for freeze related repairs to the Family Aquatics Center, Long Branch Swimming Pool, and traffic signals damaged by vehicles.
• Tax Appraisal District Increase:
o The City of Killeen's allocation increase for the Tax Appraisal District is attributed to the increase in the school district homestead exemption in the special legislative session last summer. This changed the levy of the school districts therefore changing the allocation of all the taxing entities.
• Wildland Fire Overtime:
o Allocate revenue generated from Wildland Fire Deployments to offset reimbursable overtime costs incurred during fire deployments.
• Short Term Rental:
o Allocating revenue and expense budgets for Short Term Rental registrations and inspections to the General Fund.
• American Rescue Plan Act (ARPA) Program Change:
o Per the City Council Motion of Direction on June 11, 2024, transfer ARPA funds to the Central Texas Workforce Commission Program from the Youth Hiring Program.
• Mixed Beverage Sales:
o Allocate additional funding related to higher-than-expected mixed beverage sales and the offsetting expense.
• Watercrest Road:
o Allocate fund balance from the Street Maintenance Fund to the Watercrest Road Reconstruction project in accordance with CCMR 24-133R and CCMR 24-134R. The total preliminary project cost is $11,242,338, with $7,391,648 funded from the 2022 CO Bond and $668,537 from the Drainage CIP Fund.
• Golf Course:
o Appropriate a portion of the FY 2023 fund balance from the Golf Course Enterprise Fund and Golf Capital Projects Fund for capital infrastructure expenses related to the controller for the irrigation system.
• Refuse Disposal and Transport Costs:
o Allocate additional funds to cover increased refuse transport and disposal costs, driven by a rise in tonnage and re-negotiated transportation contract terms.
• Personnel Transfer:
o Transfer personnel service budgets from Public Works to Development Services within the Water & Sewer Fund to align with position reclassification.
• Police Software:
o Transfer funds from the Law Enforcement Grant Fund to the Information Technology Internal Service Fund for the initial payment for PD's Fusus software. This is required to meet Governmental Accounting Standards Board (GASB) 96 requirements for managing and reporting costs associated with IT subscriptions.
• Finance Software:
o Transfer funds from the Governmental CIP Fund to the Information Technology Internal Service Fund for the initial payment for Finance's Vertisoft (OpenGov) and UKG software. This is required to meet GASB 96 requirements for managing and reporting costs associated with IT subscriptions.
• EV Charging Station:
o Per City Council motion of direction regarding RS-24-091 at City Council on 5/21/2024, allocate Bell County's contribution towards the EV Charging Station as part of an interlocal agreement between Bell County and the City of Killeen.
• Truck Cost Increase:
o Appropriate additional funds to cover the increased cost for five new trucks in the Transportation Division, originally ordered at 2022 model year pricing from General Motors, which has since been revised to 2025 model year pricing due to production changes. Additional cost is $17,179 per unit for a total additional cost of $85,895 to change five new trucks from 2022 model year to 2025 model year with an anticipated delivery date in October 2024.
• Rosa Hereford Community Center:
o Transfer a portion estimated excess FY 2024 fund balance from the General Fund to the Governmental CIP Fund to cover increased costs for the Rosa Hereford Community Center project.
• Vehicle Transfer:
o Transfer funds from the Governmental CIP fund to the Water & Sewer CIP fund, using contingency funding, to account for the transfer of Unit #5015 from Water & Sewer to the Fire Department.
• Transfer to W&S CIP:
o Transfer proceeds received from the City of Harker Heights for the Wastewater Treatment Buy-In from the Water & Sewer Fund to the Water & Sewer CIP Fund for appropriation to the Lift Station No. 1 Rehabilitation project in the FY 2025 Capital Improvement Program.
• Aviation-Taxiway E Relocation:
o Appropriate revenue and expenses for the Taxiway E Relocation Project (220008) at Killeen Regional Airport, funded by $6,868,243 from two FAA AIP Grants. A grant match of $763,138 will be covered by Passenger Facility Charge (PFC) fund balance. Reference CCMR 24-139R and CCMR 24-140R.
• Aviation-Terminal Security Improvements:
o Appropriate revenue and expenses for the Terminal Security Improvements Project (230019) at Killeen Regional Airport, funded by $1,241,190 from a Federal Aviation Administration AIG Grant. A grant match of $137,910 will be covered by Passenger Facility Charge (PFC) fund balance. The grant item is scheduled to go to City Council on October 1, 2024.
• Aviation-Skylark FBO:
o Appropriate revenue and expenses for the Skylark Fixed Base Operations project (230032), funded by $358,000 from a TxDOT-FAA BIL Airport Infrastructure Grant (CCMR 24-107R) and $600,000 from a TxDOT Terminal Program Grant.
• Aviation-GRK Solar Project:
o Allocate Customer Facility Fund (CFC) balance to cover an agreement for professional oversight during the construction phase of the GRK Solar Project (180007) at Killeen Regional Airport (CCMR 24-086R).
• Aviation-Corporate Hangar Phase 2:
o Allocate Customer Facility Fund (CFC) balance to cover extra professional services and two contract amendments for the Corporate Hangar Phase 2 Project (210048) at Killeen Regional Airport (CCMR 24-095R).
• Aviation-Skylark Field AWOS Relocation:
o Appropriate revenue and expense for the Skylark Field AWOS Relocation project (230035) funded by a TxDOT-FAA BIL Airport Infrastructure Grant (CCMR 24-106R.
THE ALTERNATIVES CONSIDERED:
Option 1 - Do not approve the ordinance amending the FY 2024 Annual Budget.
Option 2 - Approve the ordinance amending the FY 2024 Annual Budget.
Which alternative is recommended? Why?
Option 2 is recommended to approve the ordinance amending the FY 2024 Annual Budget.
CONFORMITY TO CITY POLICY:
The City’s Financial Governance Policies, Section V. Budget Administration (B)(1) states that City Council may amend or change the budget by ordinance.
FINANCIAL IMPACT:
What is the amount of the revenue/expenditure in the current fiscal year? For future years?
The total revenue and expenditure appropriations are $12,691,274 and $18,667,527, respectively. Excluding interfund transfers totaling $2,771,001 adjusts the revenue and expenditure appropriations to $9,920,273 and $15,896,526, respectively.
This FY 2024 budget amendment includes the following:
|
Grant Related Appropriations |
Revenues |
Expenditures |
|
Aviation AIP Grants Fund |
$9,157,433 |
$9,157,433 |
|
Aviation PFC Fund |
- |
901,048 |
|
Aviation CFC Fund |
- |
488,525 |
|
Total |
$9,157,433 |
$10,547,006 |
|
Non-Grant Related Appropriations |
Revenues |
Expenditures |
|
Water & Sewer CIP Fund |
$1,048,778 |
$- |
|
Governmental CIP Fund |
976,481 |
1,062,376 |
|
Information Technology Internal Service Fund |
795,742 |
796,409 |
|
General Fund |
669,840 |
1,672,019 |
|
Hotel Occupancy Tax Fund |
43,000 |
43,000 |
|
Street Maintenance |
- |
3,182,153 |
|
Water & Sewer Fund |
- |
1,039,778 |
|
Solid Waste Fund |
- |
229,605 |
|
Golf Course Fund |
- |
93,895 |
|
Golf Capital Projects |
- |
1,286 |
|
Total |
$3,533,841 |
$8,120,521 |
Is this a one-time or recurring revenue/expenditure?
One-time
Is this revenue/expenditure budgeted?
Upon approval of the attached ordinance amending the FY 2024 Annual Budget
If not, where will the money come from?
N/A
Is there a sufficient amount in the budgeted line-item for this revenue/expenditure?
Upon approval of the attached ordinance amending the FY 2024 Annual Budget
RECOMMENDATION:
City Council approve the ordinance amending the FY 2024 Annual Budget
DEPARTMENTAL CLEARANCES:
Legal
ATTACHED SUPPORTING DOCUMENTS:
Ordinance
Presentation