Title
Hold a public hearing and consider an ordinance amending the Fiscal Year 2025 Annual Budget of the City of Killeen to increase revenue and expense accounts in multiple funds.
Body
DATE: September 16, 2025
TO: Kent Cagle, City Manager
FROM: Judith Tangalin, Executive Director of Finance
SUBJECT: Fiscal Year 2025 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 addresses the following 25 items:
1. Excess Fund Balance Transfer
Transfer of projected excess General Fund balance to Governmental CIP Fund, per City Council direction on August 5, 2025, for one-time projects-FD Training Tower, PD Impound Lot, and four fleet additions (for FTEs approved in FY 2026 budget)
2. City Auditor
Additional part-time salary budget allocated to cover actual hours worked by Auditor Intern exceeding budgeted amount
3. Opioid Abatement Settlement
Opioid Abatement Settlement revenue and corresponding program expenditures allocated in the Opioid Settlement Fund, per CCMR 25-062R
4. Special Event Center Roof Replacement
Planned use of fund balance in the HOT Fund for Special Event Center roof replacement, per CCMR 25-062R
5. Tractor Asset Transfer
Transfer of asset value (tractor) from Drainage Utility Enterprise Fund to HOT Fund
6. Watercrest Road Reconstruction
Street Maintenance Fund balance allocated to the Watercrest Road Reconstruction project, per CCMR 25-082R, Change Order #2
7. Court Technology Kiosk
Court Technology Fund balance allocated for completion of queue management kiosk installation
8. Parks & Recreation Naming Rights
Parks & Recreation Special Revenue Fund - Naming Rights revenue and corresponding expenditures, including commission to third-party sponsorship broker and required signage, per CCMR 25-071R and CCMR 25-077R, with remaining sponsorship proceeds used for installation of four scoreboards
9. Pickleball Court Project
Texas Parks & Wildlife Grant revenue and related expenditures allocated in the Parks & Recreation Special Revenue Fund for the Pickleball Court project
10. Animal Services Incinerator Building
Governmental CIP Fund balance allocated per CCMR 25-051R for crematorium building at Animal Services
11. Fire Station 9 HVAC
Governmental CIP Fund balance allocated per CCMR 25-064R for Fire Station 9 HVAC
12. TDEM Generators
TDEM grant revenue and corresponding expenditures, with required grant match funded from fund balance, allocated in the Governmental CIP Fund for generators, per TDEM Grant Acceptance Letters
13. GRK Office Building
Governmental CIP Fund and Water & Sewer CIP Fund balances allocated per CCMR 25-069R for GRK Office Building
14. 2025 Bond Proceeds
Proceeds from Aviation Lease Revenue Bonds, Taxable Series 2025, and Waterworks & Sewer System Revenue Bonds, Series 2025, allocated for designated capital projects, per CCMO 25-032
15. Skylark AWOS Project
FAA-AIG grant revenue and corresponding expenditures appropriated in the Aviation AIP Grants Fund for the Skylark AWOS project, per CCMR 25-110R
16. Terminal Improvements - Construction
Aviation AIP and PFC Funds - grant revenue and related construction expenditures appropriated for the Terminal Mechanical & Security Improvements project, per CCMR 25-137R
17. Terminal Improvements - Design-Engineering
Aviation AIP and PFC Funds - grant revenue and related Design-Engineering expenditures appropriated for the Terminal Mechanical & Security Improvements project, per CCMR 25-138R; plus, IFE costs
18. Terminal Rehabilitation
Aviation AIP Fund - grant revenue and related Design-Engineering expenditures appropriated for the Terminal Rehabilitation project, per CCMR 25-139R; plus, IFE costs
19. PFC Application #14
Aviation PFC Fund balance allocated for PFC Application #14, per PFC Application 25-14-C-00-GRK Acknowledgement Letter
20. Impact Fee Update
Water Impact Fee Fund balance allocated to support professional agreement for updating the City's Water & Wastewater Impact Fees, per CCMR 25-119R
21. Paying Agent Fees
Debt Service Fund balance allocated to cover increased Paying Agent Fees
22. Golf Course Operations and Maintenance
Golf Course Fund - additional revenue and offsetting management expense, with fund balance allocated for one-time maintenance and equipment costs
23. Solid Waste Disposal Costs
Solid Waste Fund - additional funds allocated to cover increased refuse disposal costs from higher tonnage, offset by additional revenues
24. Utility Collection Costs
Water & Sewer Fund - additional funds allocated to cover increased collection expense, offset by additional revenues
25. Risk Management Allocations
Increased Risk Management interfund allocations across multiple funds to meet increased TML insurance premiums
THE ALTERNATIVES CONSIDERED:
Option 1 - Do not approve the ordinance amending the FY 2025 Annual Budget.
Option 2 - Approve the ordinance amending the FY 2025 Annual Budget.
Which alternative is recommended? Why?
Option 2 is recommended to approve the ordinance amending the FY 2025 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?
This FY 2025 budget amendment includes the following:
Grant Related Appropriations
Revenues
Expenditures
Aviation AIP Grants
5,715,622
5,715,622
Governmental CIP-Grant
709,750
845,147
Opioid Settlement
159,589
159,589
Parks And Rec Donations-Grant
12,500
12,500
Subtotal
6,597,461
6,732,858
Non-Grant Related Appropriations
Revenues
Expenditures
2025 W/S Bond Fund
19,939,027
19,939,027
Aviation CIP
3,545,000
3,545,000
Governmental CIP
1,250,000
3,233,701
General Fund
-
1,323,940
Water And Sewer CIP
-
684,834
Solid Waste Enterprise
650,000
663,283
Hotel Occupancy Tax
-
343,202
Street Maintenance
-
336,697
Aviation PFC
-
318,454
Golf Course Enterprise
160,000
199,123
Water Impact Fee
-
136,080
Risk Management Internal Service Fund
114,175
114,175
Parks And Rec Donations
86,097
86,097
Water and Sewer Enterprise
30,000
53,303
Debt Service
-
10,000
Court Technology
-
5,000
Aviation Enterprise
-
2,728
Drainage Utility Enterprise
7,000
2,725
Texas State Veterans Cemetery
-
777
Subtotal
25,781,299
30,998,146
Total
32,378,760
37,731,004
The following tables summarize the FY 2025 Adopted Budget by fund categories, the impact of the FY 2025 Capital Improvement Program rollover, the two budget amendments approved during FY 2025, the proposed Year-End Budget Amendment, and the resulting Amended Budget. Revenues and Expenditures are presented separately for clarity.
The revenue table also includes a row titled Fund Balance Applied/(Added). This line reflects the difference between revenues and expenditures:
* Positive amounts represent prior-year revenues held in reserve and appropriated in the current year to support multi-year projects, including CIP rollovers.
* Negative amounts represent current-year revenues exceeding expenditures, which are added to reserves.
Revenue
Adopted Budget
CIP Roll
Carry Forward
Mid-Year
Year-End
Amended Budget
General Fund
125,683,084
-
270,841
(146,310)
-
125,807,615
Enterprise Funds
90,892,719
-
-
(50,000)
847,000
91,689,719
Capital Project Funds
39,272,209
25,080,805
20,224
49,450,056
31,159,399
144,982,693
Special Revenue Funds
25,394,041
-
118,705
410,235
258,186
26,181,167
Internal Service Funds
18,411,353
-
-
1,695,462
114,175
20,220,990
Debt Service Fund
16,976,055
-
-
-
-
16,976,055
Fund Balance Applied/(Added)
(1,623,649)
126,556,945
1,971,454
7,500,577
5,352,244
139,757,571
Total
315,005,812
151,637,750
2,381,224
58,860,020
37,731,004
565,615,810
Expenditure
Adopted Budget
CIP Roll
Carry Forward
Mid-Year
Year-End
Amended Budget
General Fund
125,683,084
-
1,150,997
4,772,484
1,323,940
132,930,505
Enterprise Funds
90,182,655
-
602,193
5,496,456
921,162
97,202,466
Capital Project Funds
41,502,403
145,117,100
20,224
41,443,931
34,417,865
262,501,523
Special Revenue Funds
20,658,439
6,520,650
448,544
5,193,854
943,862
33,765,349
Internal Service Funds
19,074,203
-
159,266
1,953,295
114,175
21,300,939
Debt Service Fund
17,905,028
-
-
-
10,000
17,915,028
Total
315,005,812
151,637,750
2,381,224
58,860,020
37,731,004
565,615,810
Is this a one-time or recurring revenue/expenditure?
One-time
Is this revenue/expenditure budgeted?
Upon approval of this ordinance, the revenue and expenditure adjustments will be reflected in the FY 2025 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 this ordinance, the revenue and expenditure adjustments will be reflected in the FY 2025 Annual Budget.
RECOMMENDATION:
Staff recommends City Council approve the ordinance amending the FY 2025 Annual Budget.
DEPARTMENTAL CLEARANCES:
Legal
ATTACHED SUPPORTING DOCUMENTS:
Ordinance
Presentation