Title
Hold a public hearing and inform the public of a comment period from September 22 - November 4, 2025, to receive citizen participation and comments regarding the 2nd Substantial Amendment to the 2024-2025 Annual Action Plan for the reprogramming of CDBG funds, in the amount of $1,349,445.69.
Body
DATE: September 16, 2025
TO: Kent Cagle, City Manager
FROM: Tiffanie McNair, Executive Director of Community Development
SUBJECT: Hold a public hearing and inform the public of a comment period from September 22 - November 4, 2025, to receive citizen participation and comments regarding the 2nd Substantial Amendment to the 2024-2025 Annual Action Plan
BACKGROUND AND FINDINGS:
On July 15, 2025, staff presented an update to Council on the Reunification Center Project, a city-owned emergency shelter facility. Council provided a Motion of Direction to suspend the project until further notice. Additional direction was given on how to proceed with preservation or reallocation of project funding: Capital Improvement Projects (CIP) funds are to be preserved until a final decision is made to reactivate or terminate the project; and Community Development Block Grant (CDBG) funds are to be reallocated to a CDBG eligible project.
As noted in the July 15th presentation, reallocation of CDBG funds requires a Substantial Amendment to the Annual Action Plan (AAP). A substantial amendment occurs when there is a change in the purpose, scope, location, or beneficiaries of an activity/project. The 1st Substantial Amendment to AAP 2024-2025 was authorized via Ord. 25-037, which allowed for the reprogramming of previous years HOME funds to Tenant Based Rental Assistance (TBRA) activities and removed a counseling requirement for beneficiaries of TBRA.
CDBG grant funds allocated to the Reunification Center Project totaled $1,399,103.09. A balance of $1,349,445.69 remains.
The Community Development Advisory Committee (CDAC) was convened on August 20, 2025, but a quorum was not satisfied to allow a vote on a recommendation to Council. The meeting was rescheduled for August 27, 2025, and a quorum was met. CDAC received a presentation from staff, then voted to recommend substantial amendment to the 2024-2025 AAP reprogramming $1,349,445.69 in CDBG funds from the Reunification Center Project to the Rosa Hereford Community Center and Senior Wing Improvements Project.
In accordance with the Citizen Participation Plan, City Council shall open a citizen comment period of no less than 30 days to receive community input.
Staff recommends that the citizen comment period for the proposed 2nd Substantial Amendment to the 2024-2025 Annual Action Plan be open from September 22 to November 4, 2025, then hold a final public hearing on November 4, 2025, for Council action on the proposed reprogramming of CDBG funds in the amount of $1,349,445.69.
THE ALTERNATIVES CONSIDERED:
N/A
Which alternative is recommended? Why?
Staff recommends that the citizen comment period for the proposed 2nd Substantial Amendment to the 2024-2025 Annual Action Plan be open from September 22 to November 4, 2025, then hold a final public hearing on November 4, 2025, for Council action on the proposed the reprogramming of CDBG funds in the amount of $1,349,445.69.
CONFORMITY TO CITY POLICY:
This action conforms to the Fiscal Policy and City of Killeen Citizen Participation Plan.
FINANCIAL IMPACT:
What is the amount of the revenue/expenditure in the current fiscal year? For future years?
$1,349,445.69 in CDBG funds.
Is this a one-time or recurring revenue/expenditure?
One-time.
Is this revenue/expenditure budgeted?
Yes.
210-55124-500-520-412338 $20,121.73
210-55124-500-520-412538 $621,611.21
210-55124-500-520-412438 $707,712.75
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:
Staff recommends that the citizen comment period for the proposed 2nd Substantial Amendment to the 2024-2025 Annual Action Plan be open from September 22 to November 4, 2025, then hold a final public hearing on November 4, 2025, for Council action on the proposed the reprogramming of CDBG funds in the amount of $1,349,445.69.
DEPARTMENTAL CLEARANCES:
Legal
Finance
ATTACHED SUPPORTING DOCUMENTS:
Minutes
Substantial Amendment
Presentation