Killeen City Council Meeting – April 1, 2025

The Killeen City Council met on Tuesday, April 1, 2025, at 3:00 PM in the Council Chambers. The work session covered agenda items 1–12, followed by a regular session that included consent agenda items, public hearings, discussion items, and councilmember requests. The meeting concluded with an executive session and adjournment around 8:25 PM.

Consent Calendar

• RS-25-039 – Accepted the annual audit report for fiscal year ending September 30, 2024. The auditor, Patel Brown & Heel, issued an unmodified (clean) opinion on financial statements and single audit. No material weaknesses or noncompliance were identified.
• RS-25-040 – Approved a 17‑year lease agreement (May 1, 2025 – March 6, 2042) with the General Services Administration for TSA office space at Killeen Regional Airport at $10,848.42/month, generating $130,181 annual revenue.
• RS-25-043 – Accepted a Homeland Security Grant Program FY2025 award of $14,223 (with $6,288 local match) to purchase a one‑year subscription to the VOC virtual EOC software.
• RS-25-044 – Awarded Bid No. 25‑22 for Stagecoach Reconstruction Phase 1 (East Tremere to WS Young) to JHL Construction in the amount of $7,716,902.72. The road will be rebuilt with thicker pavement (18 inches vs. 8‑10 inches) and lime‑stabilized subgrade; construction expected to start mid‑May 2025 and last 8–10 months.
• RS-25-045 – Authorized adoption of the 2024 Water and Wastewater Master Plan, projecting $79 million in water CIP projects and $49 million in wastewater CIP over 25 years. Discussion highlighted the need to update impact fees and prioritize projects based on growth.
• RS-25-046 – Approved a petition for release from the city’s extraterritorial jurisdiction for a 20‑acre property at 8524 Brewer Lane in Salado, Texas, per Senate Bill 2038.

Items Removed from Consent and Voted Separately

• RS-25-041 – Motion to increase the Killeen Economic Development Corporation (KEDC) board from 9 to 10 directors by adding one from the Innovation Black Chamber of Commerce failed 5‑1 (Councilmember Boyd in opposition). The council declined to expand the board.
• RS-25-042 – The council approved 6‑0 the appointment of Scott Cosper as the Killeen Chamber of Commerce representative to KEDC, filling an existing vacancy (Meredith Viggers resigned).

Public Hearings

PH-25-011 – FLUM Amendment at 3019 Florence Road

• The applicant sought to change the Future Land Use Map designation from ‘Floodplain’ to ‘Neighborhood Commercial’ on a 0.59‑acre parcel, intending to rezone to B‑3 for a convenience store. The property lies almost entirely outside the 100‑year floodplain, but the broader parcel contains floodplain.
• Staff recommended approval; the Planning and Zoning Commission recommended disapproval (5‑1) citing concerns about adjacent floodplain and a stream feeding Turtle Creek.
• 28 surrounding property owners were notified; no written responses were received.
• Councilmember Boyd made a motion to approve; it failed 4‑2 (motion failed because the vote was 4‑2, not a simple majority? The transcript shows "Four to two" and the mayor later noted it failed). The item was not approved.

PH-25-012 – PUD Rezoning at 5011 Cunningham Road

• Request to rezone 22.91 acres from A (Agricultural) and R‑1 to Planned Unit Development (PUD) with SF‑2 and RT‑1 uses to build an 80‑unit build‑to‑rent community (55 single‑family homes and 25 townhomes). The proposed PUD features rear‑loaded units, open space, and private streets.
• Staff recommended approval, citing consistency with the Comprehensive Plan’s missing middle housing goal and providing a new housing type. The Planning and Zoning Commission unanimously disapproved (6‑0), largely due to strong citizen opposition.
• 102 property owners were notified; 21 written responses opposed the rezoning. Citizens cited concerns about drainage, flooding, utilities, traffic, and compatibility with the rural character.
• After discussion, Councilwoman Cobb moved to table the item to allow further study and developer‑resident engagement. The motion to table passed 5‑1 (Councilmember Adams opposed). The item will be reconsidered on May 20, 2025.

PH-25-013 – Rezoning at 321 North Gray Street

• Request to rezone 0.063 acres from B‑5 (Business District) with HOD (Historic Overlay District) to B‑C‑1 (General Business and Alcohol Sales) with HOD to operate a restaurant and bar. The applicant plans a weekday full‑service restaurant with a weekend nightlife component (limited food menu, music, drinks until 2 AM).
• Staff and Planning and Zoning Commission both recommended approval. No written public responses were received.
• The council unanimously approved the rezoning.

Ordinances

• OR-25-006 – Authorized the issuance and sale of Combination Tax and Revenue Certificates of Obligation, Series 2025, for capital projects. The city received eight bids; the winning bid (Hilltop Securities) had an average interest rate of 4.5%, with a net interest cost of 4.15% and true interest cost of 4.05%, after a $1.9 million premium. The city’s double‑A (AA) rating was confirmed. The total authorized amount is $38.8 million, but the actual borrowed amount is $37.465 million due to the premium. The ordinance passed 6‑0.

Public Comments & Testimony (Citizen Comments on Agenda Items)

• Multiple citizens addressed the council during the citizen comment period (non‑public‑hearing items).
• Michael Fanino questioned the need for separate chambers of commerce by race, asked for a firm completion date for Stagecoach Road, and opposed the CO bond issue as increasing taxes.
• Beth Wilson of the “donut hole” area expressed frustration over the lack of sewer infrastructure and drainage improvements despite a 15‑year pre‑annexation agreement. She noted flooding on May 16, 2024, and opposed new roads before fixing existing ones.
• Sue Hallmark (92‑year‑old resident of Love Spur) opposed the Cunningham Road PUD, citing her family’s history of rural development and concerns about water runoff and potable water availability.
• Albert Magnally criticized the city’s use of outdated FEMA flood zone maps (from 2008) and alleged the master plan was based on incomplete data, referencing ongoing drainage problems in Gilbert Estates and the donut hole.
• Nelson Santiago urged the council to include Hispanic and other community groups in economic development boards.
• James Seals questioned why the city reported to TCEQ that all septic systems in the city limits were eliminated, when he believes many remain. He also noted that since 2008 only five drainage work orders were logged in certain roads.
• Heather McNeely (speaking on PH‑25‑012) opposed the PUD, highlighting the lack of updated flood maps and urging the city to invest in modern maps before approving new developments.
• Anthony Kendrick read a statement from Richard Davis opposing the Cunningham Road PUD due to flooding and property devaluation concerns.
• Several other citizens spoke in opposition to the Cunningham Road PUD, with James Rogers providing engineering analysis and citing the planning and zoning commission’s unanimous disapproval.

Discussion Items

• DS-25-008 – ARPA Funding Update for Downtown Projects – City staff presented the status of seven downtown business grants. Most grantees successfully completed their projects (e.g., Braids & Brows by Chris, Let’s Eat Texas, Aroma Cigar Lounge). However, the Twice as Funny Comedy Lounge ($306,000 grant) had compliance issues: the city issued a demand for recoupment on March 5, 2025, due to improper kitchen operations and code violations. The grant contract requires repayment within 30 days. Council members expressed concern about the narrative and emphasized recouping funds to reinvest in other downtown businesses. The city has a second‑position lien on the building.
• DS-25-009 – Revenue Bonds – Staff presented a plan to issue $37 million in water and sewer improvement revenue bonds and a $3.5 million bond for a GRK office building (pending). The projects include $27.1 million for water and $9.5 million for sewer. The bond timeline requires council approval before May 12, 2025, for the rating call, with closing scheduled for July 10, 2025. The item was for discussion; no vote was taken.

Key Outcomes

• Appointments: Scott Cosper appointed to KEDC (6‑0).
• Consent Agenda: Approved with exceptions noted.
• Bond Ordinance: OR-25-006 approved (6‑0) authorizing $37.465 million in CO bonds.
• Public Hearings:
  • PH-25-011 (Florence Road FLUM) – motion to approve failed 4‑2.
  • PH-25-012 (Cunningham Road PUD) – tabled to May 20, 2025 (5‑1).
  • PH-25-013 (321 N Gray Street) – approved (6‑0).
• Future Agenda Items Approved:
  • RQ-25-002 (Future Parks Funding) – placed on April 15 agenda (6‑0).
  • RQ-25-003 (Code Enforcement Methodologies) – placed on April 15 agenda (6‑0).
  • RQ-25-004 (Renaming Bunny Trail to honor CSM Alfonso L. Davis) – placed on April 15 agenda (6‑0).
• Executive Session: Discussed RS-25-047 (agreed judgment with Oncor Electric Delivery) and DS-25-010 (economic development incentives for an aviation business prospect). After returning to open session, RS-25-047 was approved (6‑0).
• Meeting Adjourned at approximately 8:25 PM.