By
Team Writer
/ December 13, 2016
The Killeen City Council on Tuesday will consider several resolutions and ordinances, including one that will allow the city to spend $11 million for the creation of a fleet funding program. According to a council memorandum, the city needs a sustainable funding method to enable citywide vehicle and heavy equipment purchases, especially when several expensive units must be replaced in the same year. On average, Killeen spends $3.4 million annually on fleet purchases.
Key Takeaways:
- The City of Killeen (Texas) has terminated its newly created fleet funding program due to a budget shortfall. City Council voted to terminate it on Dec. 6.
- In January 2016, City council approved the establishment of an internal service fund and an $11 million fleet funding program (FFP) for replacements and operations. A total of $5.5 million was transferred to the internal service fund to start the program.
- Funds remaining in the FFP — $1.38 million — will be returned to the original sources, with Solid Waste receiving 35.7% and Water & Sewer receiving 64.3%.
“the city’s financial situation has since changed and it now needs to address immediate budget shortfalls. The newly adopted FFP is intensifying the strain on the operating funds,” a memo to the City Council stated.”