Killeen council hears public priorities as city manager flags a multi‑million dollar shortfall

KILLEEN, Texas — City Manager Cable told the Killeen City Council on Tuesday that a preliminary forecast for the fiscal 2026 budget shows a shortfall of roughly $2.4 million under current assumptions, prompting council members and residents to press staff on priorities including public safety, water‑line repairs in North Killeen, downtown economic development and a push to secure a grocery store for the north side.

Cable said the forecast assumes a 4% cost‑of‑living adjustment for city employees — a measure he estimated would cost about $3.6 million to the general fund — and other standard increases. He told council that “if you want to add one new police officer, it's $103,000 in salary and benefits and then a new vehicle” and that the first‑year cost with equipment would be about $204,000.

The numbers were the starting point for wide discussion. Resident Melissa Brown told the council during public comment that safety should take precedence over new parks or buildings: “If we're not safe, then who's gonna go to the parks anyway?” She urged higher raises for lower‑paid city employees and a grant program to help private property owners repair failing water service lines.

Why it matters: Cable said the city faces an ongoing fiscal squeeze driven in part by the growing cost of the disabled‑veterans tax exemption. He reported that Killeen lost about $13.77 million to that exemption in the current budget year and that state reimbursement has not kept pace; staff are budgeting an estimated $2.0 million in reimbursement for FY 2026 but said the amount could vary depending on the state budget. Cable said a larger state increase could deliver an additional $5 million to $8 million to the city under some scenarios.

Council members and staff highlighted specific infrastructure needs. Council member Gonzales and others pressed for completion of sidewalk, lighting and crosswalk work on Elms Road and requested updates on Zephyr Road; staff said Zephyr is next in line for engineering and that a capital project request will be included in the CIP submission. Public Works staff said the solid‑waste division is “adequately staffed on the residential side” for now and that a new residential collection route generally requires about 3,200 new homes.

Water and sewer work: Public works staff and Cable reviewed current water‑system projects. Cable said a water‑line rehabilitation contractor is active north of Interstate 14 and that an automated meter reading rollout has installed roughly 5,000 meters on the north side and is near a second 5,000‑meter phase. Staff said routine testing shows the system meets safety standards and that crews are addressing sanitary‑sewer defects identified by smoke testing.

Downtown and cultural district requests: Several speakers asked the council to invest in a cultural arts district and a downtown revitalization position. Amanda Wilkinson, director of the K3C, said staff previously proposed a consultant and a decision package to scope a cultural district and that the city will resubmit that request; she said such designations can unlock state and federal arts grants and local economic benefits.

Human services, workforce and public safety: Citizen and stakeholder comments included calls to expand peer support professional roles — people with lived experience trained to work alongside clinicians — as a cost‑effective way to address homelessness, substance abuse and mental‑health crises. Police and fire chiefs said they appreciate council support: Police Chief Lopez said the department is authorized for 264 officers, has 19 recruits in the academy and has opened a recent hiring cycle; Fire Chief Kavinsky said the department has added personnel and ambulances in recent years and expects new staff to be ready when Station 4 opens.

Grocery store and economic development: Council members returned repeatedly to the long‑running effort to attract a full‑service grocery store to North Killeen. Council member Rounds said a grocery store is the council’s top community priority and urged staff and economic partners to redouble outreach. Staff said prior solicitations produced no immediate tenant and that the city left project requirements broadly open to attract potential operators; council members discussed pursuing smaller “boutique” or 15,000–20,000 square‑foot formats if a large‑format store will not locate in the area.

Grants and staffing to pursue them: Cable and council members discussed the city’s grant activity — historically in the low‑to‑mid millions annually for police, fire and CDBG programs — and whether to invest in grant writing capacity. Cable noted the city has applied successfully for a range of federal and state grants in recent years and said council could consider support or a dedicated grant writer if it wishes to increase that effort.

What happens next: Staff said departments will submit detailed decision packages in spring and that the council will receive a proposed budget on July 1, followed by public hearings in July and August and adoption in September. For now the presentation was advisory: Cable described the numbers as a forecast and said staff will continue work to balance the budget before formal submittal.

Votes at a glance: The workshop included no formal budget votes. The council did adopt a motion to adjourn at the end of the session; the motion passed on a voice vote.