Title
Hold a public hearing and inform the public of a comment period from December 8, 2025 through January 6, 2026, to receive citizen participation and comments regarding Substantial Amendment to the 2025-2026 Annual Action Plan for the reprogramming of CDBG funds, in the amount of $1,349,445.69.
Summary
DATE: December 2, 2025
TO: Kent Cagle, City Manager
FROM: Tiffanie McNair, Executive Director of Community Development
SUBJECT: Substantial Amendment to the 2025-2026 Annual Action Plan for the reprogramming of CDBG funds
BACKGROUND AND FINDINGS:
On July 15, 2025, staff presented an update to Council on the Reunification Center Project, a city-owned emergency shelter facility. Council provided a Motion of Direction to suspend the project until further notice. Additional direction was given on how to proceed with preservation or reallocation of project funding: Capital Improvement Projects (CIP) funds are to be preserved until a final decision is made to reactivate or terminate the project; and Community Development Block Grant (CDBG) funds are to be reallocated to a CDBG eligible project.
As noted in the July 15th presentation, reallocation of CDBG funds requires a Substantial Amendment to the Annual Action Plan (AAP). A substantial amendment occurs when there is a change in the purpose, scope, location, or beneficiaries of an activity/project. The 1st Substantial Amendment to AAP 2024-2025 was authorized via Ord. 25-037, which allowed for the reprogramming of previous years HOME funds to Tenant Based Rental Assistance (TBRA) activities and removed a counseling requirement for beneficiaries of TBRA.
CDBG grant funds allocated to the Reunification Center Project totaled $1,399,103.09. A balance of $1,349,445.69 remains.
On September 16th, a public hearing was held to publicize a comment period for the proposed 2nd Substantial Amendment. After the public hearing, staff became aware of a potential compliance issue if the CDBG funds were to be reprogrammed to the Hereford project, compelling the withdrawal of the proposed 2nd Substantial Amendment. Public notification of the withdrawal was published on September 21, 2025.
The Community Development Advisory Committee (CDAC) was convened on November 12, 2025. CDAC received a presentation from staff which included an update on the proposed 2nd Substantial Amendment to AAP 2024. Staff requested that CDAC consider reprogramming the available CDBG funds from the Reunification Center Project to the Rosa Hereford Community Center Project and the Killeen Community Center Ballpark Water Reuse Irrigation System.
CDAC members present voted unanimously to recommend the CDBG funding be reprogrammed for PY2025 with $349,455.69 to the purchase of kitchen appliances, furniture, and IT installation of systems throughout the Rosa Hereford Community Center and, $1,000,000.00 to the funding of design and construction of a new reuse water supply for an irrigation system at the Killeen Community Center Ballpark.
In accordance with the Citizen Participation Plan, City Council shall open a citizen comment period of no less than 30 days to receive community input.
Staff recommends that the citizen comment period for the proposed Substantial Amendment to the 2025-2026 Annual Action Plan be open from December 8, 2025 to January 6, 2026, then hold a final public hearing on January 6, 2026, for Council action on the proposed reprogramming of CDBG funds in the amount of $1,349,445.69.
THE ALTERNATIVES CONSIDERED:
N/A
Which alternative is recommended? Why?
Staff recommends that the citizen comment period for the proposed Substantial Amendment to the 2025-2026 Annual Action Plan be open from December 8, 2025 to January 6, 2026, then hold a final public hearing on January 6, 2026, for Council action on the proposed reprogramming of CDBG funds in the amount of $1,349,445.69.
CONFORMITY TO CITY POLICY:
This action conforms to the Fiscal Policy and City of Killeen Citizen Participation Plan.
FINANCIAL IMPACT:
What is the amount of the expenditure in the current fiscal year? For future years?
$1,349,445.69 in CDBG funds.
Is this a one-time or recurring expenditure?
One-time.
Is this expenditure budgeted?
Yes.
210-55124-500-520-412338 $20,121.73
210-55124-500-520-412538 $621,611.21
210-55124-500-520-412438 $707,712.75
If not, where will the money come from?
N/A
Is there a sufficient amount in the budgeted line-item for this expenditure?
Yes.
RECOMMENDATION:
Staff recommends that the citizen comment period for the proposed Substantial Amendment to the 2025-2026 Annual Action Plan be open from December 8, 2025 to January 6, 2026, then hold a final public hearing on January 6, 2026, for Council action on the proposed reprogramming of CDBG funds in the amount of $1,349,445.69.
DEPARTMENTAL CLEARANCES:
Legal
Finance
ATTACHED SUPPORTING DOCUMENTS:
CDAC Minutes November 12, 2025
Substantial Amendment Draft
Presentation