City Council Regular Meeting – September 2, 2025

The Killeen City Council convened at 3:00 PM on September 2, 2025, in Council Chambers. The meeting included a work session to discuss agenda items 1–17, followed by a regular session with public hearings and votes. Key actions included approval of a consent calendar, adoption of the FY 2026 budget, setting a new tax rate, water and sewer rate increases, and authorization of several interlocal agreements and airport improvement projects.

Consent Calendar

• RS-25-133: Approved entity membership application and representative nomination to the Central Texas Water Alliance. (Council appointed Kenny Wells as representative.)
• RS-25-134: Approved a negotiated settlement with Atmos Cities Steering Committee regarding the 2025 Atmos Rate Review Mechanism Filing, resulting in an average residential increase of $7.83/month (9.27%).
• RS-25-135: Authorized an interlocal agreement with Bell County and Central County Services for use of the Bell County Diversion Center (no cost to city).
• RS-25-136: Approved an amendment to the interlocal agreement with Central County Services for a Mental Health Co-Responder Program, providing $30,000 in city funding.
• RS-25-137: Approved a third amendment to the professional services agreement with Central Texas Alcohol Rehabilitation Center for substance use disorder counseling and treatment services, increasing total contract amount to $232,639.
• RS-25-138: Awarded Bid No. 25-30 for Terminal Mechanical and Security Improvements at Killeen Regional Airport to The Trevino Group, Inc., in the amount of $4,989,775 (95% federally funded).
• RS-25-139: Approved a professional services agreement with Garver, LLC for construction phase of the Terminal Mechanical and Security Improvements Project at $679,300 (95% federally funded).
• RS-25-140: Approved a professional services agreement with Garver, LLC for design of the Terminal Rehabilitation Project at Killeen Regional Airport at $995,000 (95% federally funded).
• RS-25-141: Authorized an agreement with TxDOT for construction, maintenance, and operation of a continuous highway lighting system on I-14 from Jasper Road to Rosewood Drive (state-funded at $5.8 million; city responsible for future operations and maintenance).
• RS-25-142: Authorized an agreement with Service Line Warranties of America for maintenance of sewer service lines within public right-of-way, increasing the monthly fee from $0.50 to $1.33 per residential customer.

The consent calendar was approved 7–0.

Public Comments & Testimony

• Sean Price opposed the tax increase and budget, citing $285 million city debt and insufficient infrastructure spending.
• Melissa Brown commented on multiple items: (1) Water Alliance representation – urged more than one seat for Killeen as largest water user; (2) Atmos gas rates – questioned why government rates were not included in the increase; (3) Sewer line warranty – criticized the new contract allowing annual premium increases without a mechanism for decreases, noting the fee would rise 166% next year; (4) Water rate increase – argued costs are due to growth, not WCID rate hikes, and that increases will hurt renters and affordability; (5) Rezoning – asked about proximity to a recently repaired sewer line and stated new development burdens existing customers; (6) Tax rate – said the increase was not requested by the city manager and will increase homelessness.
• Mr. Timothy demanded line-item transparency, criticized street and drainage conditions, and called for budget cuts instead of tax increases.
• Ms. Cooper (Vice Chair, Downtown Advisory Committee) urged stakeholder involvement before amending the parade/assembly ordinance, noting the committee was not consulted.
• Ms. McKinney (downtown property owner) supported maintaining current parade regulations, citing safety and trash concerns from non-city-organized events.

Discussion Items

• Central Texas Water Alliance (RS-25-133): City Manager Cagle explained the alliance’s purpose to develop new water sources. Council debated membership fees (potential based on customers or gallons) and withdrawal process. Nominated Kenny Wells (WCID representative) as Killeen’s board representative, with quarterly updates to council.
• Atmos Rate Settlement (RS-25-134): Attorney Clemens presented the negotiated settlement reducing Atmos’s requested $245.2 million increase to $205.6 million. Councilmember Adams noted that rejecting the settlement would leave Killeen alone to bear legal costs.
• Bell County Diversion Center (RS-25-135): Chief Lopez described the voluntary program diverting individuals in mental health crisis from jail to treatment. Councilmember Cobb asked about the degree of care and arrest implications.
• Mental Health Co-Responder Program (RS-25-136): Chief Lopez reported that state grant funding was pulled, and $30,000 in city funds is needed to sustain the embedded mental health professional position.
• Substance Use Disorder Services (RS-25-137): Ms. McNair and Mr. Baker (Syntex ARC) explained that 15 clients have been served at a cost of $169/day per client, including housing, food, and therapy. Councilmember Cobb noted the high per-client cost but acknowledged the value.
• Airport Projects (RS-25-138, 139, 140): Mr. Wilson highlighted that all three projects are 95% federally funded with no cost to the city. Items include baggage system upgrades, security improvements, elevator/escalator replacement, and terminal rehabilitation.
• Highway Lighting (RS-25-141): Mr. Reynolds noted that TxDOT will fund $5.8 million for lighting on I-14 from Jasper Road to Rosewood Drive. The city will assume operations and maintenance in FY 2028.
• Sewer Line Warranty (RS-25-142): Mr. Reynolds presented the program’s success (1,032 claims, $4.2 million in repairs). The monthly fee will increase from $0.50 to $1.33, with annual increases up to 4%.
• Water & Sewer Rate Increase (PH-25-051): Mr. Reynolds explained phase 4 of a five-year plan. Average residential customer (using 5,700 gallons) will see a $3.92 increase (4.1%) to $97.67/month. Base rate customers (using ≤2,000 gallons) will see a $1.33 increase to $72.31/month.
• Rezoning (PH-25-052): Mrs. Mesher presented a request to rezone 19.56 acres at 7610 Clear Creek Road from Agricultural to Planned Unit Development with townhomes (185 units). Planning & Zoning recommended approval 5–0. One written opposition cited loss of privacy.
• Tax Rate & Budget (PH-25-053, OR-25-010, RS-25-143, OR-25-011): Mrs. Tangaland presented the proposed FY 2026 budget ($279 million revenues, $297 million expenses, using $17.6 million fund balance). The tax rate is set at $0.7014 per $100 valuation ($0.5277 M&O, $0.1737 debt service), an increase of 4.41 cents from the prior year ($0.6573). For the average homeowner (median value $233,428), the annual increase is $183.22 ($15.27/month). The voter-approval rate is $0.7015. Council voted 7–0 to adopt the budget, ratify the property tax revenue increase, and set the tax rate.
• Five-Year CIP (RS-25-144): Adopted unanimously (7–0). The $28 million program includes 81 projects across aviation, transportation, water/sewer, drainage, parks, technology, and equipment.
• Future Agenda Request – Parade Ordinance (RQ-25-008): Mayor Pro Tem Adams proposed amending Chapter 25, Article V to replace the one-event-at-a-time restriction with a resource-based approval framework. After public comments urging stakeholder involvement, Councilmember Alvarez moved to approve the item with an amendment to include the Youth Advisory Commission and Downtown stakeholders, to be brought back with a recommendation in October. The motion passed 6–1 (Councilmember Solomon opposed).

Key Outcomes

• Consent agenda approved 7–0 (all items 1–10).
• PH-25-051 (water/sewer rate increase) approved 7–0.
• PH-25-052 (rezoning) approved 7–0.
• OR-25-010 (FY 2026 budget) approved 7–0.
• RS-25-143 (property tax revenue ratification) approved 7–0.
• OR-25-011 (tax rate of $0.7014 per $100) approved 7–0 with a record vote. Councilmember Solomon made the motion to increase the tax rate by 8.12%.
• RS-25-144 (Five-Year CIP) approved 7–0.
• RQ-25-008 (parade ordinance amendment) approved 6–1, with direction to involve Downtown Advisory Committee, Downtown Merchants Association, and Youth Advisory Commission, and return with a recommendation in October.
• The new tax rate and budget take effect October 1, 2025, through September 30, 2026.