City Council Workshop

09:00 on June 18, 2011

Utilities Collection Conference Room, 210 Ave. C

  1. 2011-12 will be a very lean budget year.
  2. The General Fund will run a $3M+ deficit for 2010-2011.
  3. Health care costs will sky-rocket. Kenny Wells says the city can't afford "cadillac health care" any more.
  4. Fleet replacement and fuel costs are going to be very high.

This is the 2011-2012 budget review. Because I had a conflict for the June 6 budget hearing, this is the first view I will have of the budget. I've looked at the 2010-2011 budget book and it is impressively presented.

First there's a special city council meeting to approve the schedule for repacing Mr Wilkerson.

Rivera and Workman are absent.

Agenda Item Description Discussion My Notes
SP-1. Consider resolution to fill District 4 Council vacancy.

Mayor: we need to fill this position, if for no other reason, in order to make it easier to achieve a quorum. We also need the expertise and contribution of 7 councilmen. Cole: also, it's a district seat and district 4 should be represented.

Acting Manager: Accepting applications thru THursday, June 23 in City Secretary's office. Tuesday 28 will be interviews of the applicants. Proposing to start at 1300 and go, if necessary, to 1600. The selection of the candidate will be on the agenda that night. The schedule was approved on the motion of Mr Cole, seconded by Cosper.

Meeting was adjourned.

Now the special city council workshop: Two items: review the 2010-11 budget and preview the 2011-12 budget.

SP1: Review 2010-2011 budget

Proposed 2011-12 budget will be delivered to the council in July.

For 2010-11 All specific funds are in good shape. In the general fund, expenses exceeded income, as was budgeted.


  • Recommended 2010-11 budget amendments,

    This brings the general fund annual deficit to $3.3M, or about 5% of expenses. Mrs. Gonzales noted that Killeen usually budgets a deficit for the general fund, then finds ways to make it up. It's not clear how or if it can be made up this year. In fact, Morrison said it will not be made up this year.

    Wells brought up a good point about the EMS billing: the FD will have less motivation to be efficient if the costs are not in its budget. Morrison said that they have some ideas to fix that.

    Cost recovery got quite a bit of discussion. The mayor encouraged more effort.

    SP2: Information on 2011-12 budget: process and progress.j

    Budget proposal will be delivered July 27.

    Current city property tax rate is 74 cents pwer hundred dollars assessed property value. A 1 cent change has a $490,000 impact on city revenue.


    Goals and Priorities:

    Considerations and Challenges:

    (These considerations are a mixed bag, and were not very well presented. It's not clear how several of them affect the 2011-12 budget.)

    What do we have to do?

    Facility Moves:

    (I don't see the information needed to make investment decisions wrt facilities.)

    Key dates:

    Cosper: We can't spend money we don't have.

    Cole: no tax increase; balanced budget; if you're going to propose a deficit, show us what you would have to cut to achieve balance; what are we doing on paperless office? How much will the moves save the city?

    Wells: City can no longer afford a Cadillac health plan. "If it's non-essential, let's eliminate it." We have to review our pay plan.

    Clark: Fee is just another word for tax. Outsourcing: be careful not to be locked into something that will actually be more costly in the long term.