Killeen City Council Approves Contractor Minimum Wage Ordinance, Aligning With Dallas and Houston

The Killeen City Council voted 5-2 on July 7 to require all companies awarded city contracts to pay employees at least $15 per hour. The ordinance covers construction, landscaping, security and maintenance work performed under agreements with the city.

Council members acted after reviewing wage policies already adopted by Dallas in 2023 and Houston in 2024. Both cities apply the same rate to their own contract workers. Killeen staff prepared a comparison table that showed 12 other Texas municipalities with populations above 100,000 have enacted similar requirements since 2022.

Effects on Killeen households and local firms

Workers employed by contractors on city projects stand to receive the higher rate. Many such positions support maintenance at facilities near Fort Cavazos and along the city’s main corridors. The change will also apply to new bids issued after the September start date, so companies submitting proposals must now include the wage in their cost calculations.

The city’s fiscal year 2026 budget lists $12.8 million for contracted services. Staff estimates the wage requirement will increase those outlays by roughly 3 percent in the first full year. Property owners and utility customers will see any added costs reflected in future rate adjustments rather than immediate tax bills.

Local advocates note that comparable ordinances in Dallas produced initial bid increases of 2 to 4 percent before contractors adjusted their operations. Killeen procurement records show 47 active contracts that would fall under the new rule once they come up for renewal.

City staff will update bid documents and begin notifying current contractors by the end of July. The first contracts subject to the wage floor are scheduled for award at the September council meeting.