Title
Consider an ordinance adopting the Annual Budget for the City of Killeen for the fiscal year beginning October 1, 2022 and ending September 30, 2023.
Summary
DATE: September 6, 2022
TO: Kent Cagle, City Manager
FROM: Miranda Drake, Director of Budget
SUBJECT: FY 2023 Budget Adoption
BACKGROUND AND FINDINGS:
Article V. of Killeen's City Charter requires the City Manager to submit a proposed budget to City Council that provides a complete financial plan for the upcoming fiscal year. The proposed FY 2023 Budget was submitted to City Council on July 5, 2022. A budget workshop was held on July 5, 2022 to provide City Council and citizens a thorough overview of the proposed budget. City Council has discussed the budget nearly every week since the budget was submitted by the City Manager. In addition, a special City Council workshop was held on July 18, 2022 and a budget public forum was held on July 19, 2022.
State law and the City Charter require a public hearing be held to elicit citizen comment on the proposed budget. A public hearing was held on July 26, 2022. The City Charter also states that City Council may insert additional items and make increases to the City Manager's proposed budget as long as there is a public hearing held on the changes.
Changes made to the proposed FY 2023 Budget required an additional public hearing to be held on September 6, 2022. Below is a list of those changes:
¨ General Fund revenue and expenditure budget increased from $112,540,353 to $112,895,420. The net increase includes 1Star Foundation Grant ($73,500), cost for additional election in November which will be offset by interest income ($15,000), and adding the American Rescue Plan Act (ARPA) funded programs for Youth Employment Program ($216,567) and Downtown Events ($50,000).
¨ Community Development Block Grant (CDBG) Fund expenditure budget decreased from $3,413,717 to $3,401,667 which is a net decrease of $12,050. This moves the reserve appropriation to the programs as approved by City Council.
¨ HOME Fund expenditure budget increased from $2,626,396 to $2,626,515 which is a net increase of $119. This moves the reserve appropriation to the programs as approved by City Council.
¨ Tax Increment Fund revenue budget decreased from $691,085 to $644,771 which is a net decrease of $46,314. This is due to the slight decrease in the estimated preliminary to certified value and reduction in proposed tax rates of all the participating taxing entities (City of Killeen, Bell County and Central Texas College).
¨ Governmental CIP Fund revenue budget increased from $10,537,582 to $11,019,869 and the expenditure budget increased from $18,824,952 to $19,307,239. The net increase is due to the appropriation of the ARPA funding for City Council approved projects, including Traffic Monitoring Center Upgrade ($132,287), Speed Mitigation Measures Throughout City ($250,000), and Trail Upgrades for 4 trails ($100,000).
¨ Certificate of Obligation Series 2023 Bond Fund net increase of $0. Transfer $2,200,000 from reserve appropriation to Skylark New Fixed Base Operator (FBO) Building project.
THE ALTERNATIVES CONSIDERED:
Adopt the Budget
Which alternative is recommended? Why?
Adopt the budget ordinance as presented. The City Charter requires the budget to be adopted by majority vote of the City Council on or before the 20th day of the last month of the fiscal year (September 20th), or the budget as submitted by the City Manager is deemed to have been adopted.
CONFORMITY TO CITY POLICY:
The attached ordinance conforms with the City Charter and the City's Financial Governance Policy.
FINANCIAL IMPACT:
What is the amount of the expenditure in the current fiscal year? For future years?
N/A
Is this a one-time or recurring expenditure?
N/A
Is this expenditure budgeted?
N/A
If not, where will the money come from?
N/A
Is there a sufficient amount in the budgeted line-item for this expenditure?
N/A
RECOMMENDATION:
Approve the ordinance adopting the Annual Budget for the City of Killeen for the fiscal year beginning October 1, 2022 and ending September 30, 2023.
DEPARTMENTAL CLEARANCES:
Finance
Legal
ATTACHED SUPPORTING DOCUMENTS:
Ordinance