City of Killeen - File #: PH-25-043

• File #: PH-25-043
• Version: 1
• Name: Budget Public Hearing
• Type: Public Hearing
• Status: Public Hearings
• File created: 6/13/2025
• In control: City Council
• On agenda: 8/19/2025
• Title: Hold a public hearing on the proposed Fiscal Year 2026 Annual Budget.
• Sponsors: Finance Department
• Indexes: Budget

Title

Hold a public hearing on the proposed Fiscal Year 2026 Annual Budget.

Body

DATE:                     August 19, 2025                     

TO:                     Kent Cagle, City Manager                     

FROM:                     Judith Tangalin, Executive Director of Finance                     

SUBJECT:                     Hold a Public Hearing on the FY 2026 Proposed Annual Budget                     

BACKGROUND AND FINDINGS:

On July 1, 2025, the FY 2026 Proposed Budget was delivered to City Council. On July 22, 2025, a public hearing on the proposed budget was held. On July 29, 2025, the no-new-revenue rate (0.6487) and voter-approval rate (0.7015) were received.  On August 5, 2025, City Council approved a resolution to set the preliminary ad valorem tax rate at 0.7014.  Also on August 5, 2025, a motion of direction was given to make the change listed below: 

General Fund	Revenues	Expenses
FY 2026 Proposed Budget	$130,848,166	$130,848,166
Add: Property Tax	2,499,289	-
Add: 1% COLA/Comp Plan Implementation	-	628,106
Add: Traffic Signal Inventory & 5 Year Maint Plan	-	663,000
Add: PD 4 Officers & 1 Sergeant	-	522,577
Add: Assistant City Manager	-	281,584
Add: FD Deputy Chief	-	169,306
Add: Transfer to IT Fund for New FTE	-	113,253
Add: Municipal Court Bailiff	-	63,724
Add: Children's Advocacy Center	-	41,500
Add: PD Body Armor	-	39,202
Add: PD Field Training Officer Incentive Pay Inc	-	37,087
Add: FD Reclass Captain to Battalion Chief	-	12,772
Add: FD Arson Investigator Assignment Pay Inc	-	7,428
Reduce: City Council Travel & Training	-	(80,250)
New Total	$133,347,455	$133,347,455

Debt Service Fund	Revenues	Expenses
FY 2026 Proposed Budget	$20,207,374	$21,087,558
Add: Property Tax	189,367	-
New Total	$20,396,741	21,087,558

Hotel Occupancy Tax Fund	Revenues	Expenses
FY 2026 Proposed Budget	$3,110,515	$3,110,515
Add: Interest Income	8,906	-
Add: 1% COLA/Comp Plan Implementation		8,906
New Total	$3,119,421	$3,119,421

Court Building Security Fund	Revenues	Expenses
FY 2026 Proposed Budget	$80,490	$81,988
Add: 1% COLA/Comp Plan Implementation		713
New Total	$80,490	$82,701

Local Youth Diversion Fund	Revenues	Expenses
FY 2026 Proposed Budget	$86,975	$63,390
Add: 1% COLA/Comp Plan Implementation		581
New Total	$86,975	$63,971

Tx State Veteran Cemetery Fund	Revenues	Expenses
FY 2026 Proposed Budget	$1,969,152	$1,969,152
Add: 1% COLA/Comp Plan Implementation		13,728
New Total	$1,969,152	$1,982,880

Law Enforcement Grant Fund	Revenues	Expenses
FY 2026 Proposed Budget	$351,915	$351,127
Add: 1% COLA/Comp Plan Implementation		435
New Total	$351,915	$351,562

Aviation Enterprise Fund	Revenues	Expenses
FY 2026 Proposed Budget	$7,011,248	$6,403,363
Add: 1% COLA/Comp Plan Implementation	-	58,241
New Total	$7,011,248	$6,461,604

Solid Waste Enterprise Fund	Revenues	Expenses
FY 2026 Proposed Budget	$28,393,641	$28,393,641
Add: Interest Income	58,020	-
Add: 1% COLA/Comp Plan Implementation	-	58,020
New Total	$28,451,661	$28,451,661

Water & Sewer Enterprise Fund	Revenues	Expenses
FY 2026 Proposed Budget	$52,309,845	$52,309,845
Add: Interest Income	96,892	-
Add: 1% COLA/Comp Plan Implementation	-	96,892
New Total	$52,406,737	$52,406,737

Drainage Utility Enterprise Fund	Revenues	Expenses
FY 2026 Proposed Budget	$5,532,601	$5,532,601
Add: Interest Income	49,629	-
Add: 1% COLA/Comp Plan Implementation	-	49,629
New Total	$5,582,230	$5,582,230

Fleet Internal Service Fund	Revenues	Expenses
FY 2026 Proposed Budget	$2,040,503	$2,040,503
Add: 1% COLA/Comp Plan Implementation	-	15,779
New Total	$2,040,503	$2,056,282

Risk Management Internal Service Fund	Revenues	Expenses
FY 2026 Proposed Budget	$2,399,975	$2,399,975
Add: 1% COLA/Comp Plan Implementation	-	2,223
New Total	$2,399,975	$2,402,198

Information Technology Internal Service Fund	Revenues	Expenses
FY 2026 Proposed Budget	$8,255,575	$9,220,033
Add: Transfer from General Fund	113,253	-
Add: Information Technology Security Manager	-	113,253
Add: 1% COLA/Comp Plan Implementation	-	17,645
New Total	$8,368,828	$9,350,931

The City Charter, Article V, Section 56, requires a public hearing to be held if City Council makes changes to the proposed budget that involve inserting additional items or increasing appropriations. The public hearing provides an opportunity for the public to provide input on the changes to the proposed budget. Citizens are encouraged to be present and participate in the public hearing.

THE ALTERNATIVES CONSIDERED:

N/A

Which alternative is recommended? Why?

N/A

CONFORMITY TO CITY POLICY:

This conforms to requirements set forth in City Charter, Article V, Section 56 and the Financial Governance Policy III(F).

FINANCIAL IMPACT:

What is the amount of the revenue/expenditure in the current fiscal year? For future years?

Proposed revenue and expenditures for FY 2026 are as follows:

Fund Group	FY 2026 Revenues	FY 2026 Expenses
General Fund	$133,347,455	$133,347,455
Water & Sewer Fund	52,406,737	52,406,737
Capital Project Funds	24,509,303	39,357,498
Solid Waste Fund	28,451,661	28,451,661
Internal Service Funds	22,340,464	23,340,569
Debt Service Fund	20,396,741	21,087,558
Other Special Revenues	12,549,024	14,570,258
Street Maintenance Fund	10,245,240	9,686,850
Aviation Fund	7,011,248	6,461,604
Drainage Utility Fund	5,582,230	5,582,230
Hotel Occupancy Tax	3,119,421	3,119,421
Golf Course Fund	1,548,836	1,696,977
Total	$321,508,360	$339,108,818

Is this a one-time or recurring revenue/expenditure?

N/A

Is this revenue/expenditure budgeted?

Upon approval of the FY 2026 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 the FY 2026 Budget

RECOMMENDATION:

City Council hold a public hearing on the proposed Fiscal Year 2026 Annual Budget.

DEPARTMENTAL CLEARANCES:

Finance

Legal

ATTACHED SUPPORTING DOCUMENTS:

Presentation