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: September 15, 2026
TO: Kent Cagle, Interim 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 addresses the following 18 items:
1. Homelessness Services
Funding appropriated for Homelessness Services in accordance with the motion of direction approved on August 18, 2026.
2. Families in Crisis
Funding appropriated for four months of services at $29,000 per month in accordance with the motion of direction approved on August 25, 2026.
3. Innovation Black Chamber of Commerce (IBCC)
Funding appropriated for IBCC in accordance with the motion of direction approved on August 18, 2026.
4. Library OCLC Subscription
Funding transferred from the Information Technology Fund to the General Fund for the Library’s OCLC subscription, which does not qualify as a subscription-based information technology arrangement.
5. Sweeper Asset Transfer
Transfer of sweeper asset value from the General Fund to the Aviation Fund.
6. Fire Deployments
State reimbursement revenue and corresponding Fire Department overtime expenditures appropriated for Texas Task Force 1 and wildland fire deployments.
7. Assistance to Firefighters Grant
Federal grant revenue and corresponding Fire Department capital equipment expenditures appropriated for equipment funded through the FY 2024 Assistance to Firefighters Grant.
8. Homeland Security Grant
Federal Homeland Security Grant revenue and corresponding Emergency Management capital equipment expenditures appropriated.
9. Justice Assistance Grant
Remaining revenue and expenditure budgets appropriated for the 2025 Justice Assistance Grant to reflect the actual award, which exceeded the estimate included in the adopted budget.
10. Sister Cities Lease Termination
Revenue from the Sister Cities, Osan Organization and corresponding expenditures appropriated for the lease termination payment authorized by CCMR 26-105R.
11. Chaparral Road Traffic Signals
Bell County reimbursement revenue and corresponding Governmental CIP Fund expenditures appropriated for the Chaparral Road Traffic Signals project authorized by CCMR 26-087R and PO 5043.
12. Impact-Fee Audit
Water Impact Fee Fund and Wastewater Impact Fee Fund balances appropriated for the required impact-fee audit.
13. IGSA Airfield Maintenance Equipment
IGSA revenue and corresponding Aviation CIP Fund expenditures appropriated for a tractor and attachments to support airfield maintenance.
14. Jet Fuel Sales
Additional jet fuel revenue and corresponding cost of goods sold appropriated due to higher-than-anticipated sales volume at the airport.
15. Golf Course Operations
Additional Golf Course Fund revenue and corresponding operating expenditures appropriated due to better-than-anticipated revenue during the planned closure for upgrades.
16. Insurance Claims
Insurance proceeds and related claim expenditures appropriated across affected funds and departments, with transfers from major funds to cover claim costs exceeding insurance proceeds.
17. TML Insurance Premiums
Risk Management interfund allocations increased across all funds to cover higher-than-budgeted Texas Municipal League insurance premiums.
18. Risk Management Personnel Costs
Risk Management interfund allocations increased across all funds to cover the higher-than-budgeted salary of a new hire. With only three budgeted FTEs and no vacancy savings, the additional cost cannot be absorbed within the existing budget.
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:
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 2026 budget amendment includes the following:
|
Grant Related Appropriations |
Revenues |
Expenditures |
|
|
|
|
|
General-Grant Related |
$952,601 |
$952,601 |
|
Aviation CIP |
75,000 |
75,000 |
|
Emergency Management |
55,977 |
55,977 |
|
Law Enforcement Grants |
7,209 |
7,209 |
|
Subtotal |
$1,090,787 |
$1,090,787 |
|
Non-Grant Related Appropriations |
Revenues |
Expenditures |
|
Aviation Enterprise |
$3,200,000 |
$2,913,199 |
|
Risk Management Internal Service Fund |
1,324,296 |
1,324,296 |
|
Governmental CIP |
437,400 |
437,400 |
|
Golf Course Enterprise |
326,585 |
291,405 |
|
General Fund |
85,463 |
819,246 |
|
Hotel Occupancy Tax |
20,000 |
20,000 |
|
Water and Sewer Enterprise |
0 |
116,175 |
|
Solid Waste Enterprise |
0 |
61,721 |
|
Water Impact Fee |
0 |
20,000 |
|
Wastewater Impact Fee |
0 |
20,000 |
|
Drainage Utility Enterprise |
0 |
9,341 |
|
Subtotal |
$5,393,744 |
$6,032,783 |
|
Total |
$6,484,531 |
$7,123,570 |
The following tables summarize the FY 2026 Adopted Budget by fund categories, the impact of the two budget amendments approved during FY 2026, 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.
• Negative amounts represent current-year revenues exceeding expenditures, which are added to reserves.
|
Revenue |
Adopted Budget |
Carry Forward |
Mid-Year |
Year-End |
Amended Budget |
|
General Fund |
133,347,455 |
58,278 |
- |
1,038,064 |
134,443,797 |
|
Enterprise Funds |
95,000,712 |
- |
- |
3,526,585 |
98,527,297 |
|
Capital Project Funds |
24,509,303 |
1,908,875 |
7,085,777 |
512,400 |
34,016,355 |
|
Special Revenue Funds |
25,913,685 |
532,672 |
102,939 |
83,186 |
26,632,482 |
|
Internal Service Funds |
22,340,464 |
- |
- |
1,324,296 |
23,664,760 |
|
Debt Service Fund |
20,396,741 |
- |
- |
- |
20,396,741 |
|
Fund Balance Applied/(Added) |
17,600,458 |
1,264,231 |
3,322,541 |
639,039 |
22,826,269 |
|
Total |
$339,108,818 |
$3,764,056 |
$10,511,257 |
$7,123,570 |
$360,507,701 |
|
Expenditure |
Adopted Budget |
Carry Forward |
Mid-Year |
Year-End |
Amended Budget |
|
General Fund |
133,347,455 |
706,213 |
3,297,571 |
1,771,847 |
139,123,086 |
|
Enterprise Funds |
94,599,209 |
246,777 |
1,334,999 |
3,391,841 |
99,572,826 |
|
Capital Project Funds |
39,357,498 |
2,041,426 |
5,775,748 |
552,400 |
47,727,072 |
|
Special Revenue Funds |
27,376,529 |
769,640 |
102,939 |
83,186 |
28,332,294 |
|
Internal Service Funds |
23,340,569 |
- |
- |
1,324,296 |
24,664,865 |
|
Debt Service Fund |
21,087,558 |
- |
- |
- |
21,087,558 |
|
Total |
$339,108,818 |
$3,764,056 |
$10,511,257 |
$7,123,570 |
$360,507,701 |
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 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 this ordinance, the revenue and expenditure adjustments will be reflected in the FY 2026 Annual Budget.
RECOMMENDATION:
Staff recommends City Council approve the ordinance amending the FY 2026 Annual Budget.
DEPARTMENTAL CLEARANCES:
Legal
ATTACHED SUPPORTING DOCUMENTS:
Ordinance
Presentation