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Killeen council adopts FY2026 budget, raises property tax rate to $0.7014 per $100 valuation

5774686 · September 2, 2025
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Summary

The Killeen City Council on Sept. 2 approved a $2.97 billion multi-fund FY2026 budget and set the city property tax rate at $0.7014 per $100 valuation, a move council members said will raise property tax revenue about $6.4 million over last year.

The Killeen City Council voted 7–0 on Sept. 2 to adopt the city’s fiscal year 2026 budget and set the property tax rate at 0.7014 per $100 of valuation, approving a package of budget and tax measures that city staff said will raise approximately $6.4 million in tax revenue over the prior year. The vote followed a series of public hearings held earlier in the meeting. Finance Director Tangolin told the council the proposed tax rate of 0.7014 consists of 0.5277 for maintenance and operations and 0.1737 for debt service. Tangolin summarized the fiscal picture: “Overall, we are projecting about 2,790,000,000 in revenues and $2.97 billion in expenses. Plan use about 17,600,000 in fund balance.”

Why it matters: Council and staff said the additional revenue supports city operations, debt service and capital work in a multiyear capital improvement program; opponents at public comment warned higher rates will further strain renters and residents on fixed incomes. Council members voting for the rate said they balanced competing priorities and legal notice requirements.

City staff presented the budget package as balanced at the fund level. Tangolin described the general fund as balanced with about $133.4 million in both revenues and expenditures and said the city expects to maintain an aggregate fund balance of roughly $97.1 million across funds. The council also adopted a proposed five‑year capital improvement program (CIP) that staff said includes 81 projects totaling about $38 million, funded from a mix of capital fund balances, fees, grants and bond proceeds.

Public comment at the meeting focused on affordability: residents and renters urged the council to find alternatives to property tax increases and to prioritize infrastructure repairs such as drainage and street maintenance. One commenter, Melissa Brown, told the council that increasing utility and tax costs would raise rents and reduce housing affordability for soldiers and other residents.

The council adopted the budget (OR25010), ratified the property tax revenue increase (RS25143) and set the tax rate ordinance (OR25011) in separate recorded votes. The motions were moved and seconded on the record and carried unanimously.