Killeen accepts clean audit, directs $3.3M in one-time allocations
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Summary
City auditors gave Killeen an unmodified (clean) opinion on its FY2025 financial statements and single audit. Council approved staff recommendations to allocate $3,297,571 in excess general-fund balance toward capital projects, street lighting, court security and other one‑time needs.
Killeen city officials on March 24 accepted a clean audit for the fiscal year ending Sept. 30, 2025, and directed staff to use $3,297,571 in excess general‑fund balance for one‑time purposes.
Auditor representative from Patillo, Hill & Brown said the firm issued "an unmodified opinion" on the city's financial statements and an unmodified opinion on the two federal programs tested, and reported no significant deficiencies or instances of noncompliance. "In our opinion, they're free of any material misstatements," the auditor said during the council meeting. The auditor also noted total federal awards expended in the year of just over $25.6 million.
City finance staff told the council the excess above the 22% fund‑balance target totals $3,297,571 and proposed a set of allocations to be included in the midyear budget amendment. Staff recommended transferring $1.4 million to the capital improvement program; allocating $600,000 for downtown solar street lights; $550,000 for municipal court security upgrades; $200,000 for additional abatements; $155,000 for a senior center roof repair; $73,000 for the Lion’s Club Park inclusive playground surface repair; and up to $50,000 to evaluate services provided by a contracted entity.
Council voted to incorporate staff’s recommendations into the midyear amendment. Mayor Adams called the funding list "a starting point" and council members emphasized that final allocations will be reflected in the formal budget amendment. Finance staff also briefed the council on a separate bond‑refunding opportunity that staff said could reduce interest costs on existing debt by approximately $1.2 million in total debt‑service savings (net present value savings estimated at about $1,029,871). Council authorized staff to proceed with a delegation ordinance approach to finalize pricing when market conditions are favorable.
The council approved the consent agenda, which included formal acceptance of the audit and direction on the excess fund balance, by a recorded motion that carried 4–0. The audit report and single‑audit schedule will be posted to the city website as noted by staff.
