City of Killeen, TX
09/04/2024 | Press release | Distributed by Public on 09/04/2024 11:37
Killeen City Council adopts fiscal year 2025 budget
KILLEEN, Texas (Sept. 4, 2024) - Killeen City Council members have approved and adopted the fiscal year (FY) 2025 budget of $315.0 million, with general fund expenditures at $125.7 million. This is $5.1 million or 4.2% higher than the current FY budget. Council passed the budget at Tuesday night's meeting, which includes new staffing positions, competitive pay and technology and public safety upgrades.
The proposed fiscal year (FY) 2025 budget includes a tax rate of 65.73 cents per $100 valuation, and the current FY 2024 tax rate is 62.08. The 3.65 cent increase is the first increase since FY 2015. Since FY 2021, the tax rate has significantly decreased from 74.98 cents. The FY 2025 tax rate increase is aimed at being proactive and ensuring adequate funding for essential services.
The budget adoption comes exactly two months after City Manager, Kent Cagle, presented the proposed budget to City Council members and the community during a council meeting. The City's fiscal year runs from Oct. 1 - Sept. 30.
Council priorities are ensuring there is competitive pay, increasing staffing to meet service demands, implementing a four percent cost of living increase in employee salaries and ensuring there is affordable healthcare for employees. The budget includes additional positions for Public Works, the renovated community center, Development Services and Aviation for an intergovernmental service agreement with Fort Cavazos.
This budget will raise more total property taxes than last year's budget by $5.3 million (10.45%), however, this is offset by decreases, including $527,402 less in Sales Tax, a $627,820 reduction from the State of Texas for the Disabled Veteran's Exemption reimbursement, and a $200,000 decline in fine revenue. Charges for services are expected to increase by $604,968, with $394,813 of this increase coming from Fire Recovery and Ambulance Fees. With an overall net increase of 4.2%, this does not keep up with inflation.
Major General Fund expense changes include Information Technology additions and upgrades (Killeen Police Department's Real Time Crime Center, etc.), Code Enforcement costs (abatement and disposal), additional staffing, pay plan changes, reopening the Rosa Herford community center, Parks and Recreation renovations, Department of Labor changes, etc. Department requests totaling about $9 million (54 positions) were not funded.
Proposed Water and Sewer Fund expenses increased 3.6% over the FY 2024 adopted budget. There was an increase in debt payments to the Water Control Improvement District (WCID) No. 1 for the approved Water System Improvements Projects. In September 2023, the City of Harker Heights bought into the sewer treatment plant and assumed the Bell County WCID debt service payments from the City of Killeen. This reduction of $3 million in debt service payments is now being moved to the Water and Sewer Capital Improvement Fund for pay-as-you-go capital projects.
The FY 2025 Capital Improvement Program includes funding for 23 individual projects and 49 vehicles / equipment, totaling $37.6 million.
The budget includes a new fee schedule that will take effect on Oct. 1. All changes will be posted at www.KilleenTexas.gov/Budget.
The Disabled Veteran's Exemption on property taxes offered by the state has increased for the past six years and has affected the budget. The City Manager has requested the State of Texas increase the reimbursement to the City of Killeen to make up for the loss in revenue. The three main sources of general fund revenue for the City are property, sales and franchise taxes.
The City held two public hearings on the budget and one public hearing on the tax rate increase prior to the September 3rd adoption.
The full budget document is available on the City's website at www.KilleenTexas.gov/Budget.
Residents may also view each City Council meeting in their entirety on our website, www.KilleenTexas.gov/CouncilMeetings, the government channel, Spectrum Cable Channel 10 and the City's YouTube channel.