Title
Consider an ordinance authorizing the issuance of City of Killeen, Texas, Limited Tax Note Series 2025 for Fire Department Self Contained Breathing Apparatus (SCBAs).
Body
DATE: November 18, 2025
TO: Kent Cagle, City Manager
FROM: Judith Tangalin, Executive Director of Finance
SUBJECT: Self Contained Breathing Apparatus Limited Tax Note
BACKGROUND AND FINDINGS:
This ordinance authorizes the issuance of a Limited Tax Note to purchase 150 Self-Contained Breathing Apparatus (SCBA) units for the Fire Department. During the FY 2026 budget process, the Fire Department submitted a decision package requesting 150 SCBA pack assemblies with thread savers, 29 Rapid Intervention Team (RIT) packs, an SCBA decontamination machine, and one new SCBA compressor. On July 3rd, the City Manager presented the Proposed Budget, which included the issuance of a tax note to fund the SCBA equipment. The FY 2026 Budget was adopted by City Council on September 2nd.
The Fire Department currently has 150 SCBAs in inventory which consist of a mounting pack, air bottle, regulator, air house and mask, that need to be brought up into compliance with the National Fire Protection Association (NFPA) Standard 1981 (Open-Circuit Self-Contained Breathing Apparatus for Emergency Services) and NFPA Standard 1852 (Selection, Care, and Maintenance of Open-Circuit Self-Contained Breathing Apparatus). The tax note will replace the entire inventory of SCBAs so each firefighter can have the same reliable frontline equipment.
The purchase would include 150 SCBA Pack Assemblies with Thread Savers to improve longevity, 29 Rapid Intervention Team packs, SCBA decontamination machine, and 1 new SCBA compressor for station 1.
The cost for the 150 SCBA Pack Assemblies with Thread Savers, 29 Rapid Intervention Team packs, SCBA decontamination machine, and 1 new SCBA compressors is estimated $3,500,000.
The Texas Government Code, Chapter 1431, and the City’s Financial Governance Policy authorize the issuance of tax notes.
The tax note will be repaid over a seven-year term with an estimated annual debt service payment of $604,870. The fund balance in the Debt Service Fund is currently estimated to be $5,060,621 at fiscal yearend 2025 and must be used towards the retirement of debt. Fund balance accrues when more revenue is received than budgeted and/or when expenditures are less than budget. The tax note will be repaid with Debt Service Fund. Partial increase on the tax rate in FY26 included the tax note.
The City’s Financial Advisor, Dan Wegmiller of Specialized Public Finance, Inc. (SPFI), prepared and distributed an offering document describing the amount and use of the funds to bidders. Bidders will submit bids for the tax note to SPFI on November 18, 2025. The results of the bid will be provided to City Council.
THE ALTERNATIVES CONSIDERED:
N/A
Which alternative is recommended? Why?
N/A
CONFORMITY TO CITY POLICY:
Texas Government Code, Chapter 1431 - authorizes the issuance of tax notes.
City Charter, Article VI and Article VII, Section 80 - authorizes the issuance of tax notes.
Financial Governance Policy, XIV. Debt (B-D) - authorizes the issuance of tax notes.
FINANCIAL IMPACT:
What is the amount of the revenue/expenditure in the current fiscal year? For future years?
The total estimated cost inclusive of issuance costs is $3,500,000. The annual debt service payments including interest are estimated to be:
FY 2026 - $604,870
FY 2027 - $604,870
FY 2028 - $604,870
FY 2029 - $604,870
FY 2030 - $604,870
FY 2031 - $604,870
FY 2032 - $604,870
Is this a one-time or recurring revenue/expenditure?
The debt service payments are recurring from FY 2026 through FY 2032.
Is this revenue/expenditure budgeted?
Yes, funds are included in the Debt Service Fund.
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 approve the ordinance authorizing the issuance of Limited Tax Note, Series 2025.
DEPARTMENTAL CLEARANCES:
Finance
Fire
Legall
ATTACHED SUPPORTING DOCUMENTS:
Ordinance
Presentation