To: Mayor and Council
From: Aaron Rector, City Manager
Subject:
Title
PUBLIC HEARING: Consider an ordinance approving certain amendments to the Fiscal Year 2024-25 Annual Operating Budget for the City of Keller, Texas, in accordance with Article VIII, Section 8.13, of the Keller City Charter.
Action Requested:
Conduct a public hearing and consider an ordinance amending the Fiscal Year 2024-25 Annual Operating Budget for the City of Keller, Texas.
Background:
The City Council adopted the Fiscal Year 2024-25 budget on September 17, 2024. Typically, staff brings forth budget amendments during the year as part of the expenditure monitoring process. The amendments usually represent additional expenditures that were not included in the budget and are proposed for consideration by the Mayor and City Council.
The proposed amendments will impact the General Fund, Facilities Capital Improvement Fund, Hotel Occupancy Tax Fund, Streets Capital Improvement Fund, Roadway Impact Fee Fund, Street Maintenance Fund, Fleet Replacement Fund, Parks Capital Improvement Fund, Facility Replacement Fund, Water-Wastewater Fund, Water-Wastewater Capital Improvement Fund and the Drainage Capital Improvement Fund. The amendments are discussed in detail in the Financial Impact section.
Article VIII, Section 8.13 of the Keller City Charter requires a notice and public hearing, along with subsequent Council action, in order to amend (increase) the budget. The required public notice was published in the Fort Worth Star-Telegram on August 27, 2025.
Financial Impact:
The proposed amendments include:
General Fund (100) amendments (Total Increase $ 1,320,000):
$1,320,000 – Increase in expenditures to be transferred to the Street CIP Fund for the Elm Street Project.
Up to $235,493 transferred to the Streets Capital Improvement Fund based upon available line-item savings.
Up to $42,450 transferred to the Fleet Replacement based upon available line-item savings
Up to $40,025 transferred to the Facility Replacement based upon available line-item savings
Facilities Capital Improvement Fund (105) amendments (Total Increase $440,000):
$440,000 – Increase in expenditures to be transferred to the Street CIP Fund for the Elm Street Project related to Facilities CIP interest income.
$280,000 - To be transferred to the Street CIP fund for the Elm Street Project from the Economic Development Project.
Hotel Occupancy Tax Fund (121) amendments (Total Increase $220,000):
$220,000 – Increase in revenues related to hotel occupancy tax collections.
$220,000 – Increase in expenditures related to an economic development incentive and related activities.
Streets Capital Improvement Fund (170) amendments (Total Increase $8,592,993):
Up to $1,555,493 - Increase in revenue transfer-ins from the General fund for the Elm St Project and street maintenance line-items savings.
$720,000 - Increase in revenue transfer-ins from the Facility CIP fund.
$1,860,000 - Increase in revenue transfer-ins from the Roadway Impact Fee fund for the Mt. Gilead Project.
$1,283,270 – Increase in revenue related to Street CIP interest income
$930,000 - Increase in revenue transfer-ins from the Street Maintenance fund.
$1,291,730 - Increase in revenue transfer-ins from the Parks Capital Improvement fund for Elm St Water-Wastewater line improvements.
$952,500 - Increase in revenue transfer-ins from the Drainage CIP fund.
$6,498,500 - Increase in expenditures related to the Elm Street Project.
$1,860,000 - Increase in expenditures related to the Mt. Gilead Project.
$234,493 - Increase in expenditures related to the Street Maintenance.
Roadway Impact Fee Fund (172) amendments (Total Increase $1,860,000):
$1,860,000 - Increase in expenditures related to a transfer to Streets CIP for the Mt. Gilead Project.
Street Maintenance Fund (174) amendments (Total Increase $930,000):
$930,000 - Increase in expenditures related to a transfer to Streets CIP for the Elm Street Project.
Fleet Replacement Fund (175) amendments (Total Increase Up to $ -):
Up to $67,621 – Increase in revenues related to transfers-in from the General and Water-Wastewater Funds for future vehicle repairs and replacements.
Parks Capital Improvement Fund (178) amendments (Total Increase $1,121,172):
$2,412,902 – Increase in revenues related to a transfer-in from the Grant Funds for ARPA funds to be used for the Sports Park Project.
$1,291,730 – Decrease in Revenues related to a transfer-out to the Street Improvement Capital Project Fund for the Elm St. Project.
$1,121,172 – Increase in revenues related to Sports Park Project water and wastewater line improvements.
Facility Replacement Fund (179) amendments (Total Increase $146,175):
Up to $77,277 - Increase in revenues related to transfers-in from the General and Water-Wastewater Funds for future facility repairs and replacements.
$146,175 – Increase in expenditures related to Fire Station #2 wastewater line repairs and Library air conditioning repairs.
Water-Wastewater Fund (200) amendments (Total Increase $ -):
Up to $25,171 transferred to the Fleet Replacement based upon available line-item savings
Up to $37,252 transferred to the Facility Replacement based upon available line-item savings
Water-Wastewater Capital Improvement Fund (206) amendments (Total Decrease $1,375,000):
$1,375,000 – Decrease in revenues related to the Elm Street Water Line Replacement Project and use of ARPA Funds.
$1,375,000 – Decrease in expenditures related to the Elm Street Water Line Replacement Project.
Drainage Capital Improvement Fund (406) amendments (Total Increase $100,000):
$100,000 – Increase in expenditures to be transferred to the Street CIP Fund for the Elm Street Project related to Drainage CIP interest income
$852,500 – To be transferred to the Street CIP fund for the Elm Street Project from the Barbara Lane and Nightingale Culvert Project.
Alternatives:
City Council has the following alternatives:
- Approve as submitted
- Approve with changes
- Denial