Financial Governance Policies
Killeen City Council adopted the comprehensive Financial Governance Policies (PDF) on February 26, 2019. Financial policies provide the basic framework for fiscal management of the City. Formalizing practices as policies provides consistency, accountability and transparency.
The document is divided into 18 sections, most containing multiple subsections. Sections include:
- Capital expenditures
- Internal controls among others
The new policies include recommendations from the management audit as well as established provisions in Texas Local Government Code and Property Tax Code, the City Charter, the Government Finance Officers Association and the Governmental Accounting Standards Board.
The policies are now in place and will be reviewed and adopted annually to ensure compliance and applicability.
Review past and present financial reports and executive summaries.
Unclaimed Property (PDF) is presumed abandoned by the City of Killeen. Any person possessing a legal or beneficial interest in the property may obtain information concerning the amount of the property from the City of Killeen Finance Department at 254-501-7730.
Ad Valorem Tax
The City levies ad valorem (property) taxes on land, buildings, and some business personal property within the City limits. This tax is used for two primary purposes:
- First, a portion of ad valorem taxes is dedicated to the debt service on general obligation debt. This type of debt is issued to build large capital and infrastructure projects, such as fire stations, streets, and parks.
- Second, the remainder of ad valorem taxes is used to fund general municipal operations, such as police, fire, streets, parks, library, and administration.
Ad valorem taxes are levied based on taxable values as of January of each year. Taxes are billed in October of that same year, and become delinquent February 1st of the next year.
The current tax rate is $0.7498, consisting of $0.2565 for debt service and $0.4933 for operations.
The City levies a 1.50% sales and use tax on taxable transactions within the City limits. The total combined sales tax rate for Killeen is 8.25%, consisting of:
- 6.25% State of Texas
- 0.50% Bell County
- 1% City of Killeen - general government purposes
- 0.50% City of Killeen - property tax relief
More details on sales tax and Killeen's historical sales tax collections can be found on the State Comptroller's website.
Franchise fees are paid by utility companies providing service within the City of Killeen, and are assessed as a percent of utility billings. This fee is sometimes called a tax, but it is actually a fee for the utility's use of public streets, alleys, rights-of-way and easements owned by the City of Killeen. Franchise fees are used to maintain and build City streets, roads, bridges, and alleyways. More information on franchise fees and rates can be found in the General Fund Section of the budget document.
Hotel Occupancy Tax
The City levies a 7% tax on rooms or space in hotels within the City of Killeen. In addition, the State of Texas levies a 6% hotel tax, making the combined rate 13%. By State law, revenues from the City's hotel tax must be used to promote tourism and the convention and hotel industry in Killeen.