In Killeen’s proposed budget for the 2015 fiscal year, the water and sewer fund shows the biggest difference in its beginning fund balance for the current year and what’s being proposed for the upcoming fiscal year.
It’s estimated the fund will end the current fiscal year with a $25.76 million balance.
The beginning fund balance in the proposed budget is $16.23 million — a $9.53 million decrease in funds.
Hilary Shine, city spokeswoman, said decreases in the fund balance can be attributed to the city’s $5 million capital contribution to the new water treatment plant being constructed on Stillhouse Hollow Lake.
Debt service on a $20 million bond issuance for water and sewer projects the council approved last year also factored into the balance’s difference.
“This was a deliberate drawdown of the fund balance to move forward on these projects,” she said.
Revenues in the fund also show a drop, from an estimated $62.9 million in the current fiscal year to $55.64 million in the proposed budget. Shine said the drop in revenues reflects the $5 million on the water plant and the $20 million bond issuance.
Expenditures show a $4.51 million decrease, from an estimated $46.66 million in the current fiscal year to a proposed $42.15 million.
SOLID WASTE FUND
Although the solid waste fund shows a $500,000 decrease — down to $2.96 million from $3.46 million — Shine said the balance is projected to be higher at the end of the current fiscal year than originally budgeted.
“We expect the end of year fund balance increase due to strong fiscal management of expenses,” she said. “We applied our conservative approach when budgeting for next fiscal year, projecting just a slight increase in revenue over the previous adopted budget.”
The proposed budget shows a slight increase in revenue from a projected $19 million in the current fiscal year to an estimated $19.1 million in the 14-15 fiscal year. Expenditures show a more than $350,000 decrease — from $16 million to $15.73 million.
Drainage Utility Fund
The drainage utility fund shows a slight drop in the beginning fund balance, down from an estimated $7.64 million in the current fiscal year to $6.33 million in the proposed budget — a $1.31 million decrease.
Revenues also show a decrease with $1.26 million less than the current year’s estimate. It’s projected that the city will take in $11.48 million in revenues in the current fiscal year, and $10.22 million in the upcoming budget cycle.
“The city anticipates a repetitive flood claims grant in the amount of $295,622 in the current budget, but not in next year’s budget,” Shine said regarding the decrease. “There are also current and ongoing capital projects that make planned reductions to the fund balance.”
The document shows a $2.33 million increase in expenditures — $5.14 million in the current fiscal year to $7.47 million in the proposed budget.
The city also delegates funds to outside agencies that provide services to the city and community.
Shine said funds allocated are determined differently for each agency.
The city proposed in its budget dolling out $3.68 million to seven outside agencies.
The city proposes allocating $677,397 to the Greater Killeen Chamber of Commerce and $935,003 to the Killeen Economic Development Corporation.
“The Killeen Economic Development Corporation has an agreement with the city that states that the City Council authorizes an allocation of two cents of the net ad valorem tax collections for the fiscal year for promotion of economic development,” Shine said. “The Chamber of Commerce funding is based on their request.”
Bell County Communications is set to receive a little more than $1 million. The funds allocated to them is formula-based on Killeen’s usage.
The Bell County Public Health District is also determined based on a formula of each municipality’s population. They’re being allocated $293,377.
Hill County Transit, which makes a funding request to the city, is expected to receive $165,909 from the city’s coffers.
Killeen Volunteers Inc., which also makes a request based on its plan of action, is set to receive $161,700.
The Tax Appraisal District is set to receive $430,474.
“The Tax Appraisal District allocation is determined by a formula based on taxable property values,” Shine said.
The council has a month left to tweak the city’s $235.2 million budget and make changes before it’s adoption date slated for Sept. 9.