HOP General Manager Raymond Suarez told the Herald on Wednesday he hopes to set up a meeting with the city council and city manager to ask them to reconsider.

“We want them to make the most informed decision possible,” Suarez said.

Services will continue as usual until December 31, the last day of the current contract, but will end on January 1, 2025.

“The city council is trying to figure out what is important to them and made a decision last night, so we are in the process of planning for the impact if this is their final decision,” Suarez said.

According to Suarez, this service could be discontinued if funding for Hill Country Transit services ceases.

“The city will likely lose service on January 1 and lose about $780,000 in federal and local funds. Those funds will be redistributed to other cities that are part of the urbanized zone,” he said.

“There would probably be a discussion about their membership in the HOP and they would lose their membership and their seat on the board,” Suarez said. “That could have a big impact. I think the council needs to reconsider if they decide to do that.”

Suarez said the HOP asked for $65,000 because that is optimal for the level of service. He explained that the federal and state funds the HOP receives do not cover the entire amount and that those funds must be matched by local cities.

“For every dollar you invest, you get 80% more money from the federal and state governments, but you can’t use the federal and state funds without the local funds,” he said. “We have to calculate how much local equity is needed to get federal and state funds for the service we need.”

Regardless of the decision, Suarez said he bears no ill will toward the council.

“I think the council is very challenged to fund so many different things and I have no negative feelings at all. I know their job is incredibly hard.”

The Harker Heights Chamber of Commerce and the Heart of Texas Defense Alliance (HOTDA) are also expected to lose funding following Tuesday’s vote.

The Chamber was to have received $50,000 in fiscal year 2025, while HOTDA was to have received $18,000.

Kelly Brown, board president of the Harker Heights Chamber of Commerce, told the Herald he was surprised by the council’s decision but had no ill feelings toward the council.

“While I was surprised by the outcome of the decision, I understand the challenges our city leaders and City Council face during the budget process,” Brown said. “The Harker Heights Chamber of Commerce looks forward to working with the city to create an environment for trade and commerce through strategic partnerships and advocacy that promotes economic growth for members and the community.”

Brown did not specify whether the money was already included in the chamber’s budget, but said the chamber would “begin the budget process and work to ensure that we maintain our fiscally responsible financial position.”

Keith Sledd, director of the Heart of Texas Defense Alliance, also said there was no anger toward the city council.

“We were surprised, but we understand that challenges lie ahead. We look forward to continuing our partnership with the city in the future,” Sledd said.

During Tuesday’s regular council meeting, the council discussed funding for outside agencies in the city’s FY25 budget.

In a surprise move, council members voted to cut funding to five outside agencies, even though they had been allocated up to $133,000 in the current budget – including three that had received automatic allocations.

The current cap in the proposed 2024-25 budget was $133,000, with some funds automatically allocated. The Hill Country Transit District (HOP) was allocated $65,000, the Heart of Texas Defense Alliance (HOTDA) $18,000, and the Harker Heights Chamber $50,000 before the council made a surprise decision to zero out the funds.

In last year’s budget, Hop was allocated $50,000, HOTDA $18,000, and the Heights Chamber $50,000. The Greater Killeen Community Clinic received $17,000.

During the August 20 workshop, council members discussed whether to include two additional options, the Greater Killeen Community Clinic and the Boys & Girls Club.

This year, among other things, the clinic has requested $25,000 and the Boys & Girls Club has requested $20,000 from the proposed budget.

The council had five options to choose from, but preferred option 4, which would include all five agencies but keep the total at $133,000, and option 5, which would zero out funding for all outside agencies.

Councilwomen Lynda Nash and Jennifer McCann indicated they wanted the council to proceed with Option 4, but Councilmembers Shane Hodyniak and Sam Halabi and Mayor Pro Tem Tony Canterino wanted to proceed with Option 5.

Each Council member expressed his opinion on the possibility and necessity of the funds.

Canterino had originally asked staff at the City Council workshop on August 20 to come back with various options for the allocated funds and had specifically asked that the option of zero funds be included.

During the meeting on Tuesday, he explained his reasons for choosing Option 5.

Canterino said he has looked at each of these facilities and the funding they have received from the city over the past five years.

“If they don’t get funding from us, they can stand on their own two feet. They don’t come to us and say if we don’t give them money, they have to close their doors,” Canterino said. “Everyone here loves the businesses – who doesn’t want to support them. My position is that the city is a small business and we’re in crisis mode, so we have to take the appropriate steps to get the city through difficult times. If we were swimming in money, I would have no problem with that. This is not a permanent solution; it’s a temporary solution to get us into the new year.”

Canterino referred to crisis mode when he asked Heights Finance Director Ayesha Lealiiee when the city would go into “crisis mode.” Lealiiee told the council she is always in crisis mode after the Legislature’s unfunded tax exemption for disabled veterans severely impacted the city starting in 2022.

Councilwoman Nash spoke strongly about HOP and the Boys & Girls Club during the meeting.

“The lower-income residents of Harker Heights are also residents of Harker Heights. They may not pay property taxes, but they pay taxes and they live here,” Nash said.

Nash said she visited several bus stops before the meeting and spoke with residents waiting for the buses.

“I’ve talked to people who wait 30 minutes at the bus stop to get to work, to doctor’s appointments, to Walmart and have a good quality of life. Our mission is to provide the best quality of life for every member of the city.”

Nash also warned her colleagues that HOP benefits could be limited if funding is cut.

City Councilor Hodyniak said he did not want to ask residents to do more than necessary.

“We’re presenting the people of Harker Heights with a tax increase that will raise $150,000 more than we have today, and we’re giving $133,000 to organizations that provide a variety of quality services,” he said. “But where do we draw the line? Can we act as a government entity that isn’t asking the taxpayer for a little bit more? We have the ability to keep the line at our current tax rate, and we do that by saying, ‘I’m sorry, outside agencies, today is not the day for that.'”

Councillor Halabi surprisingly changed his decision after initially proposing an outcome similar to Option 4 in the workshop, but opting for Option 5 in the regular meeting.

Halabi said he thought it was unfair to give the money only to certain institutions and wanted to give it back to the citizens in the best possible way.

Councilwoman McCann stated that she believes Option 4 is the best of the five options.

“I thought it was a great idea last time when Halabi suggested cutting all funding and including the other two,” McCann said.

Later, a heated discussion ensued between Canterino and Nash about the HOP’s services after Canterino explained that if people needed a ride, they could use other ride-sharing services like Uber and that the HOP would compete with the ride-sharing services.

Before the council took its vote, Mayor Michael Blomquist also expressed his opinion on the matter, saying he was in favor of Option 4.

“I don’t have a vote on this issue, but I support Option 4, to distribute the wealth rather than cut everyone off.”

In the end, the council voted 3-2 to approve the budget without the allocated funds, with Nash and McCann dissenting.

When the votes were cast, Nash said she thought they were making a big mistake, and McCann agreed with her.

The $133,000 will now be transferred back into the city’s general fund.