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Legislation Details
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File #:
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OR-26-016
Version:
1
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Name:
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Budget Adoption
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Type:
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Ordinance
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Status:
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Ordinances
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On agenda:
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9/1/2026
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Final action:
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Title:
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Consider an ordinance adopting the Annual Budget for the City of Killeen for the fiscal year beginning October 1, 2026 and ending September 30, 2027.
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Title
Consider an ordinance adopting the Annual Budget for the City of Killeen for the fiscal year beginning October 1, 2026 and ending September 30, 2027.
Body
DATE: September 1, 2026
TO: Kent Cagle, Interim City Manager
FROM: Judith Tangalin, Executive Director of Finance
SUBJECT: FY 2027 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 2027 Budget was submitted to City Council on July 7, 2026.
State law and the City Charter require a public hearing to receive citizen comments on the proposed budget. The required public hearing was held on July 28, 2026.
City Charter §56 provides that, before City Council inserts an additional item or increases an item of appropriation, the City must publish notice of the proposed change and hold an additional public hearing. No additional items or increases in appropriations were made to the proposed FY 2027 Budget.
On August 18, 2026, City Council provided direction to reduce revenues and expenditures in response to the lower taxable values reported on the certified tax roll. Because the resulting changes consisted only of reductions and did not add an item or increase an appropriation, an additional public hearing was not required. The changes to the proposed budget are summarized below.
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General Fund |
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Revenues |
Expenses |
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FY 2027 Proposed Budget |
$137,606,527 |
$137,606,527 |
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Reduce: Property Tax |
(362,235) |
- |
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Reduce: 2 FTE (Traffic Engineer & Custodian) |
- |
(217,236) |
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Reduce: Lobby Services Contract |
- |
(99,999) |
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Reduce: Operating Reductions-Engineering |
- |
(45,000) |
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New Total |
$137,244,292 |
$137,244,292 |
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Debt Service Fund |
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Revenues |
Expenses |
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FY 2027 Proposed Budget |
$20,179,855 |
$20,765,593 |
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Reduce: Property Tax |
(748,699) |
- |
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New Total |
$19,431,156 |
$20,765,593 |
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Health Insurance Internal Service Fund |
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Revenues |
Expenses |
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FY 2027 Proposed Budget |
$10,311,194 |
$11,578,833 |
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Reduce: Health Insurance Transfer for 2 Cut FTE |
(14,272) |
- |
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New Total |
$10,296,922 |
$11,578,833 |
Texas Local Government Code §102.007 requires the vote adopting the budget to be a record vote. Because the FY 2027 Budget will raise more property-tax revenue than the preceding year, City Council must also conduct a separate vote to ratify the property-tax revenue increase reflected in the budget.
THE ALTERNATIVES CONSIDERED:
N/A
Which alternative is recommended? Why?
N/A
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 revenue/expenditure in the current fiscal year? For future years?
Proposed revenue and expenditures for FY 2027 are as follows:
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Fund Group |
FY 2027 Revenues |
FY 2027 Expenses |
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General Fund |
$137,244,292 |
$137,244,292 |
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Water & Sewer Fund |
52,924,127 |
52,924,127 |
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Capital Project Funds |
22,845,702 |
41,835,235 |
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Solid Waste Fund |
29,775,183 |
29,775,183 |
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Internal Service Funds |
24,912,703 |
26,982,289 |
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Debt Service Fund |
19,431,155 |
20,765,593 |
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Other Special Revenues |
13,994,167 |
15,541,653 |
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Street Maintenance Fund |
10,491,214 |
18,770,055 |
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Aviation Fund |
7,044,457 |
7,044,457 |
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Drainage Utility Fund |
5,383,858 |
5,383,858 |
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Hotel Occupancy Tax |
3,049,821 |
3,049,821 |
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Golf Course Fund |
2,117,331 |
2,073,025 |
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Total |
$329,214,010 |
$361,389,588 |
Is this a one-time or recurring revenue/expenditure?
The FY 2027 Annual Budget includes both recurring and one-time revenues and expenditures.
Is this revenue/expenditure budgeted?
Yes. Approval of the ordinance establishes the City’s authorized FY 2027 revenues and appropriations.
If not, where will the money come from?
N/A
Is there a sufficient amount in the budgeted line-item for this revenue/expenditure?
N/A
RECOMMENDATION:
Approve the ordinance adopting the Annual Budget for the City of Killeen for the fiscal year beginning October 1, 2026 and ending September 30, 2027.
DEPARTMENTAL CLEARANCES:
Finance
Legal
ATTACHED SUPPORTING DOCUMENTS:
Ordinance
Taxpayer Impact Statement
FY 2027 Proposed Budget Hyperlink
Presentation
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