Title
Consider a memorandum/resolution authorizing the City Manager to accept agreements with the Federal Aviation Administration for an Airport Improvement Program (AIP) Grant and an Airport Infrastructure Grant (AIG) to support the Terminal Rehabilitation Improvements project at Killeen Regional Airport.
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DATE: June 16, 2026
TO: Kent Cagle, Interim City Manager
FROM: Mike Wilson, Executive Director of Aviation
SUBJECT: Authorization for the City Manager to accept agreements with the Federal Aviation Administration for an Airport Improvement Program (AIP) Grant and an Airport Infrastructure Grant (AIG) for the Terminal Rehabilitation Improvements Project
BACKGROUND AND FINDINGS:
The Killeen Regional Airport (KRA) has identified critical terminal infrastructure that has reached the end of its useful life. This is a three-phase project that will improve passenger safety and comfort by upgrading key systems, including elevators and escalators, the public address and fire control systems, restrooms, and curbside sidewalks, while also reducing maintenance costs.
On August 26, 2025, the City received $950,000 from the Federal Aviation Administration (FAA) Airport Infrastructure Grant (AIG) to fund the project’s design phase, including administration, design, bidding, and engineering services.
The FAA has since notified the City of upcoming Airport Improvement Program (AIP) and AIG grant funding for Phase I of the project. This phase includes replacing the Pre-Conditioned Air (PCA) units at Gates 1 and 6 (with new hose reels and carts), replacing two elevators, and refurbishing two escalators within the airport terminal. However, final grant amounts will be issued only after bids are received and evaluated, with funding based on the accepted bid.
To comply with the FAA's timeline requirements for returning signed grant offers, staff is requesting that the City Council approve a resolution authorizing the City Manager, or designee, to accept the FAA Grants for the Terminal Rehabilitation Improvement Project once grants are received.
These grants will fund 95% of project costs, with the remaining 5% match provided through the FAA-approved Passenger Facility Charge (PFC) Program Application dated March 14, 2025, with no impact to the Aviation Operating Fund or fund balance.
THE ALTERNATIVES CONSIDERED:
N/A
Which alternative is recommended? Why?
N/A
CONFORMITY TO CITY POLICY:
This item conforms to local and state policies.
FINANCIAL IMPACT:
What is the amount of the revenue/expenditure in the current fiscal year? For future years?
The financial impact of this resolution will be determined after the bids are received and reviewed.
Is this a one-time or recurring revenue/expenditure?
One Time
Is this revenue/expenditure budgeted?
Yes
If not, where will the money come from?
N/A
Is there a sufficient amount in the budgeted line-item for this revenue/expenditure?
Funding is budgeted in the Aviation AIP Grants fund 341-56201-900-605-925008 and the Aviation PFC fund 343-56206-900-603-925008.
RECOMMENDATION:
City Council authorize the City Manager, or designee, to accept an Airport Improvement Program grant and an Airport Infrastructure Grant, with the Federal Aviation Administration, for the Terminal Rehabilitation Improvements project at Killeen Regional Airport.
DEPARTMENTAL CLEARANCES:
Finance
Legal
Purchasing
ATTACHED SUPPORTING DOCUMENTS:
Pre-Grant Applications
Presentation