Legislation Details

File #: OR-26-016    Version: 1 Name: Budget Adoption
Type: Ordinance Status: Ordinances
File created: 4/23/2026 In control: City Council
On agenda: 9/1/2026 Final action:
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.
Sponsors: Finance Department
Indexes: Budget
Attachments: 1. Ordinance, 2. Taxpayer Impact Statement, 3. FY 2027 Proposed Budget Hyperlink, 4. Presentation
Date Ver.Action ByActionResultAction DetailsMeeting DetailsVideo
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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.

 

General Fund

 

Revenues

Expenses

FY 2027 Proposed Budget

$137,606,527

$137,606,527

Reduce: Property Tax

(362,235)

-

Reduce: 2 FTE (Traffic Engineer & Custodian)

-

(217,236)

Reduce: Lobby Services Contract

-

(99,999)

Reduce: Operating Reductions-Engineering

-

(45,000)

New Total

$137,244,292

$137,244,292

 

Debt Service Fund

 

Revenues

Expenses

FY 2027 Proposed Budget

$20,179,855

$20,765,593

Reduce: Property Tax

(748,699)

-

New Total

$19,431,156

$20,765,593

 

Health Insurance Internal Service Fund

 

Revenues

Expenses

FY 2027 Proposed Budget

$10,311,194

$11,578,833

Reduce: Health Insurance Transfer for 2 Cut FTE

(14,272)

-

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:

Fund Group

FY 2027 Revenues

FY 2027 Expenses

General Fund

 $137,244,292

 $137,244,292

Water & Sewer Fund

 52,924,127

 52,924,127

Capital Project Funds

 22,845,702

 41,835,235

Solid Waste Fund

 29,775,183

 29,775,183

Internal Service Funds

 24,912,703

 26,982,289

Debt Service Fund

 19,431,155

 20,765,593

Other Special Revenues

 13,994,167

 15,541,653

Street Maintenance Fund

 10,491,214

 18,770,055

Aviation Fund

 7,044,457

 7,044,457

Drainage Utility Fund

 5,383,858

 5,383,858

Hotel Occupancy Tax

 3,049,821

 3,049,821

Golf Course Fund

 2,117,331

 2,073,025

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