Killeen City Council Work Session and Regular Meeting - June 3, 2025

On June 3, 2025, the Killeen City Council convened at 3:00 PM in City Hall Council Chambers. The meeting included a work session, presentations from community partners, discussion of consent agenda items, citizen comments, and a budget preview. Key outcomes included approval of a consent agenda, appointments to boards and commissions, and direction to staff on several items.

Presentations

• Parks Facility Sponsorship Process (PR-25-012): Ryan Patrick of Sportsman Solutions presented on the sponsorship process for city parks facilities. He explained how valuations are determined, using similar projects from other cities as benchmarks. Council members expressed interest in prioritizing local small businesses and ensuring sponsorship revenue helps offset youth program fees.
• Community Partner Budget Presentations (PR-25-013): Ten organizations presented their FY 2025-2026 budget requests:
  • Tax Appraisal District of Bell County (TADBC): Billy White reported that total market value for Killeen decreased slightly from $15.56B to $15.52B, but new improvements and exemptions kept taxable value stable. The average home value dropped from $228,000 to $224,000. The district requested continued funding.
  • Bell County Communications Center (911): Executive Director Aubrey Huckabee noted 223,000 911 calls in 2024, with 95% answered within 15 seconds. The city's share for FY26 would decrease by about $100,000.
  • Hill Country Transit District (The HOP): Daryl Burtner reported that microtransit ridership reached 119,286 trips in Killeen (first 8 months), with 93% rider satisfaction. The city's $650,000 request is unchanged for the third year. Councilmember Kendrick questioned the cost per rider disparity; staff will provide formulas.
  • National Mounted Warfare Foundation (NMWF): Total visitors to date: 786,000. About 30% come from outside the MSA. The museum uses HOT funds for marketing. Council discussed expanding outreach to schools and ROTC programs.
  • Killeen Economic Development Corporation (KEDC): Tyler Roberts requested $1.1M (up $215,000), citing progress on projects like USAM and Southern Roots Brewery. Funds are earmarked for Wolf Technology Park development.
  • Families in Crisis: Requested gap funding of $492,218 to increase shelter capacity to 100 beds in a future community resource center. Council noted this is separate from the existing RFP for reunification services.
  • Children's Advocacy Center of Central Texas: Deborah Longley requested $41,500 (25 cents per Killeen resident) to supplement services. She noted Bell County ranks 7th in Texas for confirmed child abuse cases, and the center saved the city an estimated $414,000 in case costs.
  • Innovation Black Chamber of Commerce (IBCC): Requested $187,000 to support small business services, including AI consulting, government contracting, and digital literacy. Council expressed support for the program.
  • Bell County Public Health: Amy Yeager reported the first confirmed measles case in Bell County (unvaccinated adult). She requested $341,607.88 under the current cooperative agreement, but noted the agreement is outdated. The health district lost $1.4M in federal and $1.7M in state funding, leading to closure of women's health programs. Killeen ISD has a 98.8% vaccination rate.

Consent Calendar

• Minutes of regular (May 6, 2025) and special meetings (May 13, 2025 at 4:00 PM and 5:00 PM) were approved.
• RS-25-087: Approved lease agreement with BTS Towers, LLC for a cell tower at Lions Club Park (initial 5-year term, $2,000/month with 1.5% annual escalation).
• RS-25-088: Renewed independent auditing services with Pattillo, Brown & Hill, LLP for FY25 at an estimated cost of $171,000.
• RS-25-089: Approved investment reports for quarters ending December 31, 2024 and March 31, 2025. Scott Gruber noted year-to-date interest earned of $5.1 million.
• RS-25-090: Authorized a letter of agreement with Pump Solutions, Inc. for replacement of two submersible pumps at Lift Station No. 20 at a cost of $123,000 using a TIPS contract.
• RS-25-091: Renewed group medical and pharmaceutical benefits with Blue Cross Blue Shield of Texas and dental with MetLife effective October 1, 2025. Premium increases for Plan Two (copay plan) by $10 per month per tier.

Public Comments & Testimony

• Mr. Gukeson: Questioned the return on investment from the National Mounted Warfare Museum and KEDC, suggesting funds could be better used elsewhere, such as for a grocery store in North Killeen via IBCC.
• Michael Fernino: Criticized the museum's marketing and KEDC's performance, urged use of online gaming platforms for outreach, and expressed frustration with tax exemptions for disabled veterans and lack of large employers.
• Melissa Brown: Noted that Temple pays half the cost of The HOP per rider, questioned KEDC's ROI (169 jobs for $1.1M), and raised concerns about a proposed sewer warranty fee increase being a hidden cost. She also mentioned travel expenses for city officials to Oklahoma.

Discussion Items

• Litter Crew Update (DS-25-027): Public Works Director reported since December 10, 2024, the three-person crew collected 13.9 tons of litter. Focus areas include downtown, underpasses, and Eastgate. Council praised the crew's work.
• Homeserve Sewer Warranty Program Renewal (DS-25-028): Staff presented a proposed increase from $0.50/month to $1.33/month for residential sewer line warranty in the right-of-way. Over the past five years, the program paid $4.2 million in claims on 1,032 claims (average $4,148 per claim) while collecting about $1.6 million. Council deferred decision to allow further discussion with the budget.
• 1st and 2nd Quarterly Financial Report (DS-25-029): Finance Director presented a new transparency portal on the city website. General fund revenues are up 6.99% year-over-year; expenses are down 2.95%. Water and sewer fund showed a 4.24% revenue decrease and 17.82% expense increase. Council lauded the new portal for citizen access.
• FY 2026 Fee Schedule (DS-25-030): Staff reviewed proposed changes, including corrections to acreage categories and clarification of fees. No public comments were received on specific fees. A public hearing is scheduled for the next meeting.
• FY 2026 Budget Preview (DS-25-031): City Manager Kent Cagle presented a preliminary budget with a general fund deficit of about $816,000. Proposed fee increases would nearly close the gap. Key revenue drivers: EMS fees (+$1.5M), sales tax (+$881k), and investment income (+$1M). Offsetting declines: disabled veterans exemption reimbursement drop ($1.2M) and property tax shift to debt service ($1M). The state reimbursement for DV exemptions has fallen from 49% to about 6% of the $15.6M loss. Unfunded requests total $11M. Water and sewer fund would need an estimated 3.29% rate increase (average residential bill). Solid waste fund is balanced; no rate increase needed. Hotel motel fund has a $352,000 deficit due to lower short-term rental revenue and required advertising expenditures. Golf course fund is increasing fees to cover capital improvements. Street maintenance fund has a $9M gap for residential streets. Council expressed interest in modest, predictable rate increases to avoid large jumps.

Key Outcomes

• Consent Agenda approved unanimously (5-0).
• Resolutions and Appointments (RS-25-092): Council approved appointments to boards and commissions as follows: Audit Committee – Nash-King, Alvarez, Adams; KEDC – Nash-King, Kendrick, Cobb; Hill Country Transit District – Solomon, Kendrick; TURS #2 – Nash-King, Kendrick, Gonzalez; Board of Adjustment – various assignments. All appointments passed unanimously.
• Direction on Homeserve Warranty: Council deferred a vote to allow further budget discussions; no motion taken.
• Street Maintenance Fee: Council member Segarra suggested considering gradual increases to avoid large future jumps; no formal action.
• Budget Deficit: City Manager noted that if the proposed fee schedule is adopted, the general fund deficit narrows to about $50,000-$60,000, but many unfunded requests remain. Council will continue budget discussions in July.