Title
Consider a memorandum/resolution entering into an Interlocal Agreement with the Hill Country Transit District to provide for a public transportation system.
Body
DATE: December 2, 2025
TO: City Council
FROM: Kent Cagle, City Manager
SUBJECT: Interlocal Agreement with Hill Country Transit District
BACKGROUND AND FINDINGS:
Texas Government Code, Chapter 791, authorizes local governments to contract for government functions and services to increase efficiency and effectiveness. Hill Country Transit District (HCTD) is a political subdivision of the State of Texas that operates the public transit system known as the HOP. The City of Killeen does not operate its own public transportation system. The cities of Copperas Cove, Harker Heights and Killeen formed into an integral geographic part of the federally established Killeen Urbanized-Zone-Area (UZA) for federal formula funding purposes.
The purpose of the interlocal agreement (ILA) is to provide for a public transportation system to be operated and managed by the Hill Country Transit District within the Killeen UZA for the local government.
The current agreement, approved at the November 5, 2024, City Council Meeting, expires December 31, 2025.
City Council approved funding for the Hill Country Transit District in the FY 2026 Adopted Budget.
THE ALTERNATIVES CONSIDERED:
1. Authorize entering into an Interlocal Agreement with Hill Country Transit District with revisions to the current agreement.
2. Authorize entering into the Interlocal Agreement with Hill Country Transit District as written.
Which alternative is recommended? Why?
City Staff recommends entering into the Interlocal Agreement with Hill Country Transit District as written to provide public transportation services to the Killeen UZA.
CONFORMITY TO CITY POLICY:
The City of Killeen’s Financial Management Policy recognizes City Council’s ability to approve interlocal agreements authorized by Texas Government Code, Chapter 791, Interlocal Cooperation Contracts.
FINANCIAL IMPACT:
What is the amount of the revenue/expenditure in the current fiscal year? For future years?
$650,000.00.
Is this a one-time or recurring revenue/expenditure?
Recurring
Is this revenue/expenditure budgeted?
Yes, funds are available in the General Fund Non-Departmental account 100-55118-700-705-000000
If not, where will the money come from?
N/A
Is there a sufficient amount in the budgeted line-item for this revenue/expenditure?
Yes
RECOMMENDATION:
City Council authorize the City Manager or his designee to execute an Interlocal Agreement with Hill Country Transit District as written to provide public transportation within the Killeen Urbanized-Zone-Area.
DEPARTMENTAL CLEARANCES:
Finance
Legal
ATTACHED SUPPORTING DOCUMENTS:
Agreement
Presentation