Procurement

Texas City Eliminates New Fleet Replacement Fund

December 06, 2016

File photo
File photo

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.

However, 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.

With the FFP termination, Fleet Operations will remain in the internal service fund and will be supported by the operational funds that receive services from the department, according to the memo.

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%.

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