The Killeen City Council convened on July 1, 2025, to address pressing financial concerns affecting the city, particularly in light of recent tax increases and budgetary challenges. The meeting highlighted the impact of state funding decisions on local revenue, especially regarding veterans' exemptions and property taxes.

Councilman Cagle opened the discussion by expressing gratitude for the acknowledgment of Killeen's veteran population but raised concerns about the city's financial future. He emphasized the necessity for a balanced budget while addressing the needs of city employees and the community. Cagle urged residents to communicate their concerns to state representatives regarding the distribution of funds, noting that Killeen received only a fraction of what was needed from the state.

Councilwoman Gonzales echoed Cagle's sentiments, stressing the importance of fully funding state mandates, particularly those affecting disabled veterans. She warned that the current funding structure could have detrimental effects on Killeen, leading to reduced services and increased financial burdens on lower-income residents. Gonzales pointed out that the city’s primary revenue sources—property and sales taxes—are at risk due to these changes, which could lead to significant budget shortfalls.

The council discussed the potential long-term impacts of losing a major revenue source, including service reductions and increased debt burdens. Gonzales highlighted the risk of out-migration, where residents may leave Killeen due to declining services, further eroding the tax base.

In response to these challenges, Cagle mentioned the need for diversifying the city's tax base, although he acknowledged the difficulty of moving away from reliance on Fort Hood as the largest employer. Efforts are underway to develop the industrial park and attract new businesses, which could help mitigate some of the financial risks.

The meeting concluded with a consensus on the need for proactive measures to address the financial challenges facing Killeen. Council members emphasized the importance of community engagement and collaboration with state officials to secure a more stable financial future for the city.