Title
Hold a public hearing and consider an ordinance amending the Fiscal Year 2025 Annual Budget of the City of Killeen to increase revenue and expense accounts in multiple funds.
Body
DATE: April 15, 2025
TO: Kent Cagle, City Manager
FROM: Judith Tangalin, Executive Director of Finance
SUBJECT: Fiscal Year 2025 Budget Amendment
BACKGROUND AND FINDINGS:
Per the City’s Financial Governance Policies, Section V. Budget Administration (B)(1), City Council may amend or change the budget by ordinance. Additionally, Article V, Section 56 of the City Charter requires a public hearing before finalizing any budget amendments that add or increase appropriations.
This mid-year budget amendment ensures compliance with these requirements and addresses necessary adjustments based on changes that have occurred since the beginning of the fiscal year, including operational funding needs, capital projects, grants, and policy-driven transfers.
This budget amendment addresses the following 15 items:
Excess Fund Balance Transfers
Transfer excess General Fund balance above 22% to Capital Improvement Funds per Financial Governance Policy.
Fire Station 4 Personnel Funding
Adjust transfer allocation by reducing the amount to the Governmental CIP Fund to fund new personnel in the General Fund.
Axon Software Transfer
Transfer funds from the General Fund and Governmental CIP Fund to the IT Internal Service Fund for the Police Department’s Axon software payment pursuant to the subscription agreement.
Elderly Transportation Program Reallocation
Move budget within General Fund from Non-Departmental to Community Development for better program oversight.
Homeland Security Community Preparedness Grant
Appropriate Fire Department grant revenue and corresponding expenditures.
Catalytic Converter Grant (RS-25-002 / RS-25-032)
Appropriate Police Department grant revenue and corresponding expenditures.
2024 JAG Grant Adjustment
Appropriate the remaining grant budget to reflect the final award, which exceeded the estimate.
Families in Crisis Assistance (RS-25-016)
Appropriate excess General Fund balance for community assistance.
IGSA - Airfield Lighting Control System (RS-24-217)
Appropriate IGSA revenue and expenditure in the Aviation CIP Fund for system upgrades at Ft. Cavazos.
RAMP Grant - Skylark Roof Rehab (RS-25-034)
Appropriate an additional $100,000 in grant revenue and expenditure for roof rehabilitation at 2601 Stonetree Drive.
Risk Management Claims Centralization
Transfer insurance proceeds and claims/damages budgets to the Risk Management Fund.
Equipment Transfer - Unit 572 (Backhoe)
Appropriate market value to record transfer from Water & Sewer to Solid Waste.
Stagecoach Project - Additional Funding
Appropriating additional funding for the Stagecoach project to support Phase 1 construction and construction management, as well as Phase 2-3 design, including contingency, using Other Income to the Governmental CIP Fund and Street Maintenance Fee Fund.
2025 Certificates of Obligation (COs)
Appropriate bond proceeds and expenses for designated capital improvement projects.
Engineering Department Establishment
Transfer engineering-related budgets from Public Works-Transportation within the General Fund and Street Maintenance Fund to support the new Engineering Services Department.
THE ALTERNATIVES CONSIDERED:
Option 1 - Do not approve the ordinance amending the FY 2025 Annual Budget.
Option 2 - Approve the ordinance amending the FY 2025 Annual Budget.
Which alternative is recommended? Why?
Option 2 is recommended to approve the ordinance amending the FY 2025 Annual Budget.
CONFORMITY TO CITY POLICY:
The City’s Financial Governance Policies, Section V. Budget Administration (B)(1) states that City Council may amend or change the budget by ordinance.
FINANCIAL IMPACT:
What is the amount of the revenue/expenditure in the current fiscal year? For future years?
This FY 2025 budget amendment includes the following:
|
Grant Related Appropriations |
Revenues |
Expenditures |
|
Law Enforcement Grant Fund |
$410,235 |
$410,235 |
|
Aviation Enterprise-Grants |
100,000 |
100,000 |
|
General Fund-Grant Related |
3,690 |
3,690 |
|
Subtotal |
$513,925 |
$513,925 |
|
Non-Grant Appropriations |
Revenues |
Expenditures |
|
Certificates of Obligation 2025 |
$39,393,931 |
$39,393,931 |
|
Street Maintenance Fund |
- |
4,783,619 |
|
General Fund |
(150,000) |
4,768,794 |
|
Water and Sewer Enterprise |
(50,000) |
3,099,314 |
|
Solid Waste Enterprise |
(50,000) |
1,657,928 |
|
Information Tech. Internal Service Fund |
1,395,462 |
1,556,223 |
|
Governmental CIP Fund |
3,654,669 |
1,250,000 |
|
Aviation CIP Fund |
947,871 |
800,000 |
|
Drainage Utility Enterprise |
(25,000) |
516,343 |
|
Risk Management Internal Service Fund |
300,000 |
397,072 |
|
Aviation Enterprise |
(25,000) |
122,871 |
|
Water And Sewer CIP Fund |
3,204,314 |
- |
|
Solid Waste CIP Fund |
1,707,928 |
- |
|
Drainage Utility CIP Fund |
541,343 |
- |
|
Subtotal |
$50,845,518 |
$58,346,095 |
|
Total |
$51,359,443 |
$58,860,020 |
Is this a one-time or recurring revenue/expenditure?
One-time
Is this revenue/expenditure budgeted?
Upon approval of this ordinance, the revenue and expenditure adjustments will be reflected in the FY 2025 Annual Budget.
If not, where will the money come from?
N/A
Is there a sufficient amount in the budgeted line-item for this revenue/expenditure?
Upon approval of this ordinance, the revenue and expenditure adjustments will be reflected in the FY 2025 Annual Budget.
RECOMMENDATION:
Staff recommends City Council approve the ordinance amending the FY 2025 Annual Budget.
DEPARTMENTAL CLEARANCES:
Legal
ATTACHED SUPPORTING DOCUMENTS:
Ordinance
Presentation