TITLE
HOLD a public hearing and consider an ordinance amending the FY 2021 Annual Budget of the City of Killeen to increase revenue and expense accounts in Aviation funds and the Community Development Block Grant (CDBG) fund.
SUMMARY
DATE: June 15, 2021
TO: Kent Cagle, City Manager
FROM: Jonathan Locke, Executive Director of Finance
VIA: Miranda Drake, Director of Budget
SUBJECT: Budget Amendment
BACKGROUND AND FINDINGS:
This budget amendment addresses two initiatives that include appropriating additional funds for the Airport Improvement Program (AIP) grant award to replace the heating, ventilation and air-conditioning (HVAC) system at the Killeen-Fort Hood Regional Airport (KFHRA) and appropriating $304,800 from the Texas Department of Housing and Community Affairs for rental assistance programs.
1) Aviation is presenting an item for City Council’s consideration to accept an AIP grant from the Federal Aviation Administration (FAA) to replace the HVAC system at the KFHRA. The original estimated project cost of $4,500,000 was included in the FY 2021 CIP and FY 2021 Budget. This project was originally planned as a 90% grant funded project ($4,050,000) with the Passenger Facility Charge (PFC) Fund paying the 10% grant match ($450,000).
When the American Rescue Plan Act was signed into law on March 11, 2021, the federal share was increased to 100% for the construction and construction management portions of the project. The design portion of the project totaled $236,400 and was funded by the KFHRA Fund. City Council authorized a transfer from KFHRA to the AIP Grant Fund on February 9, 2021. Due to restrictions in the total amount of AIP entitlement funds allowed to be used each fiscal year, this amount was not eligible for reimbursement in FY 2021. Aviation will submit a reimbursement request to the FAA for design costs in FY 2022.
The design is complete and construction bids have been received. The final project cost is $4,134,671. ...
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