Killeen City Manager Glenn Morrison proposed no property tax increase in his budget draft for the fiscal year 2013-2014, presented Tuesday to the Killeen City Council.
The $235.8 million budget proposed $8 million less in overall expenditures compared to fiscal year 2012-2013, which began in October.
Morrison said the decrease in overall expenditures is due mostly to refinancing of debt and paying off debt for major capital improvement projects.
Over the next two months, the council will study Morrison’s 370-page document with budget adoption planned for Sept. 10.
In previous months, the council discussed at least four major expenditures, none of which are included in Morrison’s draft.
The unbudgeted expenditures include an $8.2 million Trimmier Road-widening project, a $4.6 million citywide recycling program, the construction of Fire Station No. 9 and purchasing additional treated water.
General fund expenditures — which affect the ad valorem tax rate — would increase 2 percent under Morrison’s proposal, from $69 million adopted in fiscal year 2012-2013 to $74 million proposed for fiscal year 2013-2014.
The proposed budget predicts a 3 percent increase in sales tax revenues. It also proposes a hike in fees at the Killeen Civic and Conference Center, Stonetree Golf Course and franchise fees.
Morrison proposed hiring 23 new full- and part-time employees across the city for new programs and additional services, at a cost of $1.6 million.
The new positions include a new executive director of Community Services, a criminal investigator and two additional code enforcement officers.
“Staff diligently evaluated current programs and services in all major operating funds and thoughtfully considered new programs designed to meet the increasing demands for city services,” Morrison said.
Morrison’s draft proposes withdrawing $1.3 million from the fund balance to pay for these services.
After the withdrawal, at $19.4 million, the proposed fund balance would remain 19 percent higher than the $16.3 million fund balance adopted at the beginning of fiscal year 2013-2012.
“That is really a testament to how healthy our fund balance is right now,” Morrison said.