Killeen City Council Budget Workshop – February 24, 2025
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Killeen City Council Budget Workshop – February 24, 2025
The Killeen City Council held a budget workshop on February 24, 2025, to receive public input and establish priorities for the Fiscal Year 2026 budget. Council members, city staff, and citizens discussed the city's financial forecast, spending priorities, and infrastructure needs.
Public Comments & Testimony
- First speaker (unidentified): Expressed strong opposition to prioritizing parks over public safety, urging the council to allocate funds to new fire stations, police personnel, and police station expansion. Also called for larger raises for employees earning under $100,000, a grant program for private water line replacements, and fulfillment of prior promises for sidewalks, streetlights, and crosswalks on Elms Road.
- Second speaker (unidentified): Questioned the city's growing debt service, criticized the planned city hall project, and raised concerns about a battery storage facility (hazmat) near a high school and jail. Called for a priority assessment of spending.
- Third speaker (Kristen Wright): Recommended investing in a staff position to seek a Texas Art Commission Cultural Arts District designation, which could unlock state and federal grants. Also urged funding for peer support professionals to address homelessness and mental health more cost-effectively.
- Fourth speaker (Ms. Cole): Advocated for downtown investment, noting that downtown revitalization increases property values and tax revenue. Supported creating a cultural arts district to access additional grants and attract development, including a potential grocery store in the north area.
Discussion Items
- Staff responses to public concerns:
- Solid waste drivers: Staff stated that driver levels are adequate and monitored; approximately 3,200 new homes justify one additional driver.
- Elms Road improvements: A capital project for sidewalks is proposed again in the CIP; streetlights have been added; a Safe Routes to School grant may be pursued.
- Water line rehab: Ongoing projects (waterline rehab, sanitary sewer rehab, water meter replacement) are active on the north side. Water quality is consistently safe (TCCT confirmed recently).
- Battery storage facility (Featherline): Staff recalled that safety was addressed during the council's approval process; no new concerns.
- Downtown cultural district: Development is in early stages; a consultant may be hired to create a plan, but a dedicated city staff position has not yet been funded.
- Homeless services: Staff noted ongoing partnerships with CTEX ARC and Friends in Crisis; $700,000 in HOME-ARP funds are available for supportive services.
- Public safety staffing: Police Chief Lopez reported that the department is authorized for 265 officers, with 19 in the academy and a new class starting; resources are sufficient for now. Fire Chief Kavinsky confirmed that 33 new personnel have been added in four years, including staff for Station 4 and additional ambulances.
- Debt and financial status: City Manager Cagle stated total debt service is $17.9 million (page 348 of the budget). He presented a five-year forecast showing a preliminary general fund deficit of $2.4 million based on assumptions of 4% COLA and 3% operational growth, but emphasized the forecast is early and the city maintains a strong fund balance (27% reserve, above the 18-22% policy).
- Disabled veterans exemption: Cagle highlighted that the city loses $13.77 million annually to the exemption, with state reimbursement at only $2 million projected next year. A proposed state budget increase could bring $5-8 million additional revenue if passed.
- Council priority discussion:
- Council members unanimously agreed that employee compensation (4% COLA, health insurance, civil service step compression) remains the top priority.
- Councilmember Board proposed a city rebranding campaign ($35,000–$150,000) and a library master plan.
- Councilmember Cole emphasized completing existing projects before starting new ones.
- Councilmember Solomon called for a balanced budget before adding wish-list items, and supported the salary survey (nearly complete).
- Councilmember Sagara requested updates on Stagecoach Road (bids under budget, phase 1 award expected April) and Zephyr Road (next in line for reconstruction). He also suggested promoting the Neighborhood Watch program through churches and community organizations.
- Councilmember Cobb supported the cultural arts district and grant writing capacity, and stressed the need for a 10-year affordable housing plan.
- Councilmember Allen advocated for continued conservative budgeting, debt repayment to maintain AAA rating, leveraging technology, and supporting low-income and unhoused residents via grants.
- Councilmember Gonzalez made the north side grocery store her top priority, urging the council to use incentives and work with KEDC to attract a small-format grocery store. She acknowledged the city cannot run a grocery store but can create conditions for private investment.
- Mayor provided closing remarks, noting that the negative forecast was a reality check and that the council must prioritize employee compensation and public safety. She reiterated that the grocery store is a personal priority but would support whatever the council decides.
Key Outcomes
- No formal votes were taken; the workshop was for gathering input and setting direction.
- Staff will use council priorities (employee compensation, public safety, infrastructure completion, downtown cultural district, rebranding, library master plan, water line rehab, and potential grocery store incentives) to prepare the FY 2026 budget.
- The city manager stated that a balanced budget will be presented in July; the council may need to make trade-offs if revenues fall short.
- The salary survey is nearly complete and will be presented to council soon.
- Stagecoach Road phase 1 bids are under budget; award expected in April. Zephyr Road is next on the street rebuild list.
- Staff will explore additional communication about Click Fix Killeen and Neighborhood Watch programs.
- The next public hearing on the budget is scheduled for July 22, 2025, with adoption anticipated by September 2, 2025.
Meeting Transcript
Please turn off all your electronic devices. If you would like to talk, please take it in the hallway because it's extremely it's a small room and we don't want to interfere with the recording to make sure we get the notes corrected. If I'm not mistaken, the chamber is open. If you would like to go over to the chamber and look at the meeting, uh this budget meeting on the screen in the chamber. Let the record show that all council members are here except council member board. I have not so I'm assuming there's a presentation first. I don't have any questions. I think we do uh we have citizen comment first. Please bring the agenda. So anyway, citizen comments, if you would like to speak, do we have sheets to sign up? Okay, please sign up for citizen comments. Ms. Wilson is the timekeeper. Ms. Wilson let me know. Do we have anybody signed up for citizen comments? If not, we're moving forward. So do we have anybody? Yeah, we've got one here. Okay, who is the job of this? Once again, I'm gonna ask you to keep your voice low because this is a small room. You do have the option to go in the chamber if you would like to have a sidebar conversation. You do have that option to go in and form it for it's open. Thank you. Okay, I'm good. I'm good. I'm good. All right, the meeting is in order. I'm gonna say it one more time. If you would like to have any sidebar conversations, the chamber is open. This room is small. This is a meeting that we're having. So please be respectful. So the citizen comments on the agenda item. This section allows members of the public to address the council regarding an item other than a public hearing item on the agenda for council consideration. Each person shall sign up in advance, may speak only one time, and such address shall be limited to four minutes. A majority of the city council is required because we do have a quorum, but any time extension. That means you have to vote to give them an extra minute. The mayor and council members should have one minute to respond to citizen comments with a statement or explanation without engaging in dialogue. The item for discussion at the workshop is DS 25-005. Receive input and priorities fiscal year 2026 budget. With that being said, uh our assistant city managers. Once you start when they start speaking, they five o'clock. First person will less around, you have four minutes. Thank you. Everyone's going to have your own priorities. But I feel like if we pass, we've put priorities in the wrong place. When we're spending tens of millions of dollars on parks, instead of building new fire stations, hiring new police personnel, uh taking out funds so that we can expand the police station. I think we have our priorities in the wrong place because parks are nice, but they're not in SESC, if we're not safe, then who's going to go to the parks anyway? So I think that this year it would be a great idea if we could put more emphasis on safety, not just in the buildings and the structures themselves, but in making sure that we're giving not raises that are going to make sure that we're able to retain our employees, not just in the first responders, but citywide.
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