Killeen holds FY2026 budget public hearing; council sets adoption date and directs staff to model tax-rate options

The Killeen City Council opened a public hearing on the proposed fiscal year 2026 budget, heard staff presentations and public comment, set the date to consider adoption for Sept. 2, 2025 at 3 p.m., and approved motions of direction on several budget issues.

Budget presenter Ms. Tanglein summarized the budget calendar and preliminary figures, noting estimates remain subject to change when the appraisal roll is certified. She told council the city’s adjusted taxable value and proposed levy figures were included in the packet and said staff estimated a 2026 revenue loss of $15,800,000 with an expected state reimbursement of about $900,000. "The revenue loss estimated to be in 2026 is 15,800,000.0 and we estimated to get 900,000 reimbursement from the state," she said during the presentation.

Council and staff discussed the preliminary tax-rate picture. Staff noted the exact no-new-revenue and voter-approval rates will be determined when the certified appraisal roll is received. Staff also advised council of an illustrative rule of thumb used in the presentation: each additional penny (0.01 in the tax rate) would generate about $1,000,000 in revenue for the city.

On council spending, several members said they were concerned about a proposed increase to the council’s training and travel budget. One councilmember proposed reverting council training and travel allocations to 2023 levels (approximately $6,000 per council member and $9,000 for the mayor); the council approved that direction 7-0.

On compensation and public safety funding, Council member Solomon moved — and Councilwoman Gonzales seconded — a motion of direction asking staff to return with options showing what could be accomplished if the city set a tax rate at 0.72 and prioritized the additional revenue first for employee compensation and then for unfunded public-safety supplements. The council approved that direction 7-0. City Manager Cagle and staff said the figures provided during the hearing were estimates and that final rates depend on the certified tax roll.

During the public hearing, multiple citizens commented. Alyssa Brown criticized a lack of public discussion about the capital improvement program and questioned where newly freed-up funds would be directed after the council voted to reduce its travel budget. She also raised concerns about proposed additional funding for the Killeen Economic Development Corporation (KEDC) and asked whether community partners had received follow-up funding. Ronnie Russell of the Innovation Black Chamber of Commerce urged the council to move forward on a grocery-store recruitment effort and asked staff to bring a professional-services agreement back to council for consideration.

The council took one formal procedural vote at the meeting: a motion to set Sept. 2, 2025, at 3 p.m. as the date to consider budget adoption passed 7-0. Several motions of direction (nonbinding requests that staff return with information or revised proposals) also passed unanimously. Staff said they will return with more precise revenue-rate calculations once the appraisal roll is certified and will present the scenarios requested by council before the Aug. 5 deadline for any proposed changes to the tax rate.