Title
Hold a public hearing and consider an ordinance amending the Fiscal Year 2026 Annual Budget of the City of Killeen to increase revenue and expense accounts in multiple funds.
Body
DATE: April 21, 2026
TO: Kent Cagle, City Manager
FROM: Judith Tangalin, Executive Director of Finance
SUBJECT: Fiscal Year 2026 Budget Amendment
BACKGROUND AND FINDINGS:
Per the City’s Financial Governance Policies, Section V. Budget Administration (B)(1), City Council may amend or change the budget by ordinance. Additionally, Article V, Section 56 of the City Charter requires a public hearing before finalizing any budget amendments that add or increase appropriations.
This budget amendment revises the FY 2026 Annual Budget to increase revenue and expenditure accounts across multiple funds, as reflected in the attached ordinance. The amendment includes appropriating one-time uses of excess General Fund balance in accordance with City Council direction on March 24, 2026, including the transfer of excess fund balance above the 22% target from the General Fund and Aviation Fund to their respective Capital Improvement Program (CIP) funds in accordance with the Financial Governance Policy.
The amendment also includes a limited number of routine adjustments, including transfers between departments to accommodate approved position reclassifications, as well as grant-related and accounting-related items.
The required Notice of Public Hearing was published in the local newspaper on April 16, 2026.
THE ALTERNATIVES CONSIDERED:
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Which alternative is recommended? Why?
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CONFORMITY TO CITY POLICY:
This action conforms to the City Charter and the City’s Financial Governance Policies, which authorize City Council to amend the Annual Budget by ordinance following a public hearing. The proposed amendment ensures that appropriations reflected in the attached ordinance are properly aligned with approved expenditures, funding sources, and accounting requirements for FY 2026.
FINANCIAL IMPACT:
What is the amount of the revenue/expenditure in the current fiscal year? For future years?
The proposed amendment increases FY 2026 revenues and expenditures across multiple funds. The financial impact is summarized below by fund and distinguishes between non-grant-related and grant-related appropriations.
|
Non-Grant Related Appropriations |
Revenues |
Expenditures |
|
General Fund |
$0 |
$3,297,571 |
|
Certificates of Obligation 2025-Golf |
2,975,099 |
2,975,099 |
|
Governmental CIP |
2,603,899 |
2,603,899 |
|
Aviation Enterprise |
0 |
1,328,029 |
|
Opioid Settlement |
41,376 |
41,376 |
|
Aviation CFC |
0 |
18,000 |
|
Golf Course Enterprise |
0 |
6,970 |
|
Aviation CIP |
1,328,029 |
0 |
|
Subtotal |
$6,948,403 |
$10,270,944 |
|
Grant Related Appropriations |
Revenues |
Expenditures |
|
Aviation AIP Grants |
$178,750 |
$178,750 |
|
Community Development |
61,563 |
61,563 |
|
Subtotal |
$240,313 |
$240,313 |
|
Total |
$7,188,716 |
$10,511,257 |
For non-grant-related funds, the amendment reflects an increase of $6,948,403 in revenues and $10,270,944 in expenditures, primarily related to one-time uses of excess fund balance, capital project funding, and routine operational adjustments. The difference of $3,322,541 between revenues and expenditures is supported by available fund balance and interfund transfers. These increases are further supported by restricted revenues and approved financing. Grant-related appropriations increase both revenues and expenditures by $240,313, reflecting the timing and recognition of grant-funded activities within Aviation and Community Development programs. In total, the amendment increases revenues by $7,188,716 and expenditures by $10,511,257.
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 2026 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 2026 Annual Budget
RECOMMENDATION:
City Council approve the ordinance amending the FY 2026 Annual Budget.
DEPARTMENTAL CLEARANCES:
Legal
ATTACHED SUPPORTING DOCUMENTS:
Ordinance
Presentation