TITLE
HOLD a public hearing and consider an ordinance amending the FY 2019 Annual Budget and Plan of Municipal Services of the City of Killeen by increasing revenue and expenditure accounts for the design of taxiway improvements at the Killeen-Fort Hood Regional Airport.
SUMMARY
DATE: December 11, 2018
TO: Ronald L. Olson, City Manager
FROM: Jonathan Locke, Executive Director of Finance
VIA: Miranda Drake, Director of Budget
SUBJECT: Budget Amendment
BACKGROUND AND FINDINGS:
Staff at the Killeen-Ft. Hood Regional Airport (KFHRA) was notified by the Federal Aviation Administration (FAA) of a potential grant opportunity. The grant will cover approximately 90% of the cost of improvements needed on Taxiway B and the associated connecting pavements at KFHRA. In order to apply for the grant opportunity, funding has to be secured for the design of the project.
The cost to design the rehabilitation project is estimated to be $701,400. The design costs will be paid by a combination of an Airport Improvement Program grant (90%) and the Passenger Facility Charge Fund (10%). The City has accumulated $1.87 million in Airport Improvement Program entitlement funding. The entitlement funds are used on a reimbursement basis, so upfront funding is required. The General Fund will provide an inter-fund loan to initially cover the design costs, and bridge the gap until the Airport Improvement Program funding is received.
The City’s Financial Governance Policies require inter-fund loans to be approved by the City Council. Since the General Fund will lose interest revenue on the $701,400 loaned to initially cover the design costs, Aviation will pay interest on the outstanding amount. It is anticipated that the Airport Improvement Program funds will be received no later than September 2019, which will make the loan from the General Fund outstanding for approximately nine months.
The interest earned on the City’s investments for last qua...
Click here for full text