Title
Consider an ordinance adopting the Annual Budget for the City of Killeen for the fiscal year beginning October 1, 2026 and ending September 30, 2027.
Body
DATE: September 1, 2026
TO: Kent Cagle, Interim City Manager
FROM: Judith Tangalin, Executive Director of Finance
SUBJECT: FY 2027 Budget Adoption
BACKGROUND AND FINDINGS:
Article V. of Killeen's City Charter requires the City Manager to submit a proposed budget to City Council that provides a complete financial plan for the upcoming fiscal year. The proposed FY 2027 Budget was submitted to City Council on July 7, 2026.
State law and the City Charter require a public hearing to receive citizen comments on the proposed budget. The required public hearing was held on July 28, 2026.
City Charter ?56 provides that, before City Council inserts an additional item or increases an item of appropriation, the City must publish notice of the proposed change and hold an additional public hearing. No additional items or increases in appropriations were made to the proposed FY 2027 Budget.
On August 18, 2026, City Council provided direction to reduce revenues and expenditures in response to the lower taxable values reported on the certified tax roll. Because the resulting changes consisted only of reductions and did not add an item or increase an appropriation, an additional public hearing was not required. The changes to the proposed budget are summarized below.
General Fund
Revenues
Expenses
FY 2027 Proposed Budget
$137,606,527
$137,606,527
Reduce: Property Tax
(362,235)
-
Reduce: 2 FTE (Traffic Engineer & Custodian)
-
(217,236)
Reduce: Lobby Services Contract
-
(99,999)
Reduce: Operating Reductions-Engineering
-
(45,000)
New Total
$137,244,292
$137,244,292
Debt Service Fund
Revenues
Expenses
FY 2027 Proposed Budget
$20,179,855
$20,765,593
Reduce: Property Tax
(748,699)
-
New Total
$19,431,156
$20,765,593
Health Insurance Internal Service Fund
Revenues
Expenses
FY 2027 Proposed Budget
$10,311...
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