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: January 20, 2026
TO: Kent Cagle, City Manager
FROM: Judith Tangalin, Executive Director of Finance
SUBJECT: FY 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 amends the FY 2026 Annual Budget to increase revenue and expenditure accounts in multiple funds, as reflected in the attached ordinance. The amendment consists of the carry forward of FY 2025 encumbered but unexpended appropriations into FY 2026 to allow completion of previously approved projects and services that extended beyond the prior fiscal year.
The amendment also includes limited additional adjustments authorized by City Council, including the allocation of previously approved funding and the recognition of loan proceeds and related debt service.
The required Notice of Public Hearing was published in the local newspaper on January 15, 2026.
THE ALTERNATIVES CONSIDERED:
Option 1 - Do not approve the ordinance amending the FY 2026 Annual Budget.
Option 2 - Approve the ordinance amending the FY 2026 Annual Budget.
Which alternative is recommended? Why?
Option 2 is recommended to approve the ordinance amending the FY 2026 Annual Budget.
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, primarily related to the carry forward of prior-year encumbered appropriations and previously approved actions. The financial impact is summarized below by fund and distinguishes between non-grant-related and grant-related appropriations.
|
Non-Grant Related Appropriations |
Revenues |
Expenditures |
|
Governmental CIP |
$1,908,875 |
$1,908,875 |
|
General Fund |
58,278 |
706,213 |
|
Water and Sewer Enterprise |
0 |
221,192 |
|
Opioid Settlement |
0 |
144,618 |
|
Water Impact Fee |
0 |
132,551 |
|
Hotel Occupancy Tax |
0 |
68,924 |
|
Police State Seizure |
0 |
23,426 |
|
Aviation Enterprise |
0 |
13,736 |
|
Golf Course Enterprise |
0 |
10,418 |
|
Solid Waste Enterprise |
0 |
1,431 |
|
Subtotal |
$1,967,153 |
$3,231,384 |
|
Grant Related AppropriationsRevenuesExpenditures |
|
|
|
HOME Program |
$471,627 |
$471,627 |
|
Law Enforcement Grants |
61,045 |
61,045 |
|
Subtotal |
$532,672 |
$532,672 |
|
Total |
$2,499,825 |
$3,764,056 |
For non-grant-related funds, the amendment reflects an increase of $1,967,153 in revenues and $3,231,384 in expenditures, related to the carry forward of prior-year encumbered appropriations and other previously approved actions. These increases are supported by available fund balance, restricted revenues, and approved financing. Grant-related appropriations increase both revenues and expenditures by $532,672, reflecting the timing of grant-funded activities within the HOME Program and Law Enforcement Grants. In total, the amendment increases revenues by $2,499,825 and expenditures by $3,764,056.
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