Title
HOLD a public hearing and consider an ordinance amending the FY 2024 Annual Budget of the City of Killeen to increase revenue and expense accounts in multiple funds.
Body
DATE: January 30, 2024
TO: Kent Cagle, City Manager
FROM: Miranda Drake, Assistant Director of Finance
SUBJECT: Budget Amendment
BACKGROUND AND FINDINGS:
This budget amendment addresses the following twelve (12) items:
1. Carry Forward of Encumbered Funds: In accordance with the City Charter (Article VII, Section 71), appropriations lapse at the fiscal year's end unless expended or lawfully encumbered. Contracts and commitments initiated in the current fiscal year extending into the next require fund carry-forward. Due to outstanding projects and services from FY 2023, not concluded by September 30, 2023, it's necessary to carry forward FY 2023 appropriations to the FY 2024 Budget for identified purchase orders (POs) to complete these projects and services.
2. Revenue Allocation Correction: Allocate offsetting revenue linked to previously budgeted American Rescue Plan Act (ARPA) expenses from the budget amendment presented to City Council on November 28, 2023. The inclusion of these revenues was inadvertently omitted in the previous budget amendment.
3. Capital Improvement Program ARPA Allocation: Allocate available ARPA revenue and expense budgets in accordance with City Council's directive on October 3, 2023. These entries, associated with Capital Improvement Program (CIP) projects, were intentionally withheld, anticipating the CIP rollover, and were not incorporated into the budget amendment presented to City Council on November 28, 2023.
4. Carry Forward of Funds for Main Library Bathroom Installation: Allocate additional funds for the in-house bathroom installation at the Main Library due to project delays. Although funds were initially appropriated in FY 2023, the project could not be completed by year-end.
5. Carry Forward of Funds for Animal Services Crematorium: Allocate funds for the purchase of a crematorium at Animal Services. Despite the initial appropriation in FY 2023, the project faced delays and is still ongoing.
6. Community Development Block Grant (CDBG) Purchase Orders Offset: Specifically cover the offsetting revenue for the CDBG purchase orders included in the carry-forward budget amendment mentioned above.
7. Carry Forward of Unspent HOME-ARP Funding: Carry forward unspent HOME Investment Partnerships American Rescue Plan Program (HOME-ARP) funding from FY 2023.
8. Façade Grants Reallocation: Tax Increment Reinvestment Zone (TIRZ) board approved $100,000 for FY 2023 façade grants. Allocate the remaining balance to FY 2024 for processing, as applications couldn't be finalized by the FY 2023 purchase order deadline.
9. Skylark Field Automated Weather Observation Station (AWOS) Relocation: Allocate TIRZ funds for the Skylark Field AWOS Relocation CIP project, which was approved during FY 2023 but not included in the adopted FY 2024 CIP which prevented its inclusion in the CIP Rollover.
10. Interlocal Agreement for Cemetery Management: Allocate funds per CCMR 23-206R, approved by City Council on December 19, 2023, to enter into an interlocal agreement for cemetery management and operation services for the Central Texas State Veterans Cemetery.
11. Solid Waste Hardware Conversion: Allocate Solid Waste CIP funds for the Solid Waste Hardware Conversion CIP project, approved during FY 2023 but not included in the adopted FY 2024 CIP which prevented its inclusion in the CIP Rollover.
12. GRK Pavement Management Program: Allocate Aviation CIP funds for the GRK Pavement Management Program CIP project, approved during FY 2023 but not included in the adopted FY 2024 CIP which prevented its inclusion in the CIP Rollover.
THE ALTERNATIVES CONSIDERED:
Option 1 - Do not approve the ordinance amending the FY 2024 Annual Budget.
Option 2 - Approve the ordinance amending the FY 2024 Annual Budget.
Which alternative is recommended? Why?
Option 2 is recommended to approve the ordinance amending the FY 2024 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 expenditure in the current fiscal year? For future years?
This FY 2024 budget amendment includes the following:
|
Grant Related Appropriations |
Revenues |
Expenditures |
|
Community Development Block Grant Fund |
$787,359 |
$787,359 |
|
Home ARP Fund |
21,812 |
21,812 |
|
Aviation AIP Grants Fund |
53,595 |
53,595 |
|
Law Enforcement Grant |
- |
59,805 |
|
Total |
$862,766 |
$922,571 |
|
Non-Grant Related Appropriations |
Revenues |
Expenditures |
|
General Fund |
$1,582,028 |
$889,042 |
|
Central Texas State VA Cemetery |
1,296,420 |
1,296,420 |
|
Governmental CIP Fund |
895,874 |
895,874 |
|
Hotel Occupancy Tax Fund |
159,762 |
132,317 |
|
Street Maintenance |
- |
1,482,000 |
|
Tax Increment Fund |
- |
310,355 |
|
Solid Waste CIP Fund |
- |
185,000 |
|
Police Federal Seizure |
- |
138,149 |
|
Water & Sewer Fund |
- |
92,458 |
|
Aviation Fund |
- |
82,863 |
|
Child Safety Fund |
- |
50,602 |
|
Water & Sewer CIP Fund |
- |
36,011 |
|
Cable System PEG |
- |
35,802 |
|
Information Technology ISF |
- |
21,000 |
|
Aviation CFC Fund |
- |
12,170 |
|
Risk Mgmt. ISF |
- |
8,500 |
|
Aviation CIP Fund |
- |
5,955 |
|
Court Technology Fund |
- |
3,594 |
|
Total |
$3,934,084 |
$5,678,112 |
Is this a one-time or recurring expenditure?
One-time
Is this expenditure budgeted?
Upon approval of the attached ordinance amending the FY 2024 Annual Budget
If not, where will the money come from?
N/A
Is there a sufficient amount in the budgeted line-item for this expenditure?
Upon approval of the attached ordinance amending the FY 2024 Annual Budget
RECOMMENDATION:
City Council approve the ordinance amending the FY 2024 Annual Budget.
DEPARTMENTAL CLEARANCES:
Legal
ATTACHED SUPPORTING DOCUMENTS:
Ordinance
Presentation