yeah, I demand more money.
Blue. Uh. Good evening and
welcome the north first annual
city council work session. It
is 530 and I will call the
monday AUGUST 24th, 2026 city
council work session to order a
quorum of the city council is
present in the meeting has been
duly passed in accordance with
the texas openings act of the
texas government code item is
listed for discussion of the
work session agenda. Provide an
opportunity for the city
council to discuss the items
and receive information from
staff. The city council will
not take action on any of the
items listed in the discussion
during the work session. Any
members of the public wishing
to address the council
regarding items listed on the
work session agenda MAY do so
during the public comments
portion of the regular meeting.
Moving to the first item give
the opportunity the city
council the opportunity to uh
ask any questions of the items
on the regular agenda that the
council has not had a
clarification done at this time
I MAY. Need to. Seeing everyone
shaking their head no. The next
one we begin the uh stephanie
martinez show uh, discuss
amendments to the adopted 2024
international codes. Well,
thank you and welcome to my
show this evening. Um, so the
first item I wanted to go over
is the, uh, proposed amendments
to the 2024 international
codes. Um, if you recall, back
in FEBRUARY of this year we did
bring forward, uh, the adoption
of all those codes to council.
Um, that document was over 140
pages ish. Um, so there was
quite a bit involved in that
adoption of all those codes.
There's a total I think nine
books and the um um national
electric code. Um but with all
that we did identify now that
there are a couple of um items
that do need to be corrected
with typographical errors or
omissions. Um, so we're asking
to come back to you all with
that change. Um, we're also
going to look at eliminating
some what we believe overly
restrictive commercial uh
energy requirements that were
adopted in FEBRUARY. And then
with this amendment we'd look
to um align some of the
standards throughout all of
those code books. So just a
summary really quickly, um,
regarding the erc or the
residential code we're looking
at amending um the accessory
permit where for an accessory
structure of 144ft we would
not ask for any there would be
exempt from any permit fee. Uh
we would like to look at it
though however for the
placement of that shed um again
that's for safety oversight
without any fees associated
with that. Um, on the ibc we're
looking at deleting a couple of
items um, and additionally
match the fire code with the
address number size um fire
code has one size specific for
the numbers on the address
where the ibc is a little bit
different we're trying to make
those align better for
emergency response um on the an
energy code this is what I
talked about a little bit ago.
We're going to go further in
depth with that on the next few
slides. Um but we do believe
that there's some uh,
problematic energy requirements
that we'd like to have removed
.And then also on the plumbing
code we're going to talk about
the clean out and the change to
the placement of that so that
it doesn't impact our residents
but it's accessible to the
city, um, crews that have to go
out. So on the residential code
um on the accessory permits
like I said it would delete the
blanket permit exemption for
accessory accessory structures
regardless of size. Um, so that
we can maintain that and look
at where the placement of that
structure is going to be. So
the permit would be required
but we would eliminate any fee
that would be associated with
that just to confirm that the
placement of it is appropriate.
Um again the next item says for
exemption there would be no fee
for that. Um we're not trying
to charge anybody anything. We
just want to make sure where
it's placed is appropriate. Um,
additionally on the roofing
right now we'd ask that it be
amended to so that if it's
300ft or three squares, um,
that the permit would be
required at that point nothing
below that. And then on the
plumbing clean out as I said,
um, we would require that a
city clean out and when we say
city just accessible to the
city not belonging to the city
that it be placed um in the
right of way. So on the next
item the international building
code again we're just trying to
align the irc in the ibc with
this square footage of the um
I'm sorry the shed of 144ft or
smaller just looking at the
placement of it and then
requiring the uh permit for the
roofing of 300ft or more. Um,
additionally, we're trying to
align the size of the addresses
for emergency and emergency
responders and then cleaning up
any grammatical errors that
were also captured in that
adoption on the 2024 energy
conservation code or the icc.
Um, we did recognize that there
are some items in there that
are detrimental to or what we
propose could be detrimental to
development here within the
city. Um, some of those
requirements are burdensome for
the developers. So we're asking
that we remove those um, so
that it it doesn't cost them as
much to bring their development
here. Um, so we would be
eliminating a couple of
sections uh, those are
referenced there. It's ac 405
13 c0 4405 15 c406 and the c50
2.3.7 and I believe there was
another one we just recognized
today that we will be adding as
well um, so that we can attract
more business here without our
development here without
putting that burden of the
additional energy um
conservation on them. As far as
the plumbing code, I talked
about this a second ago with
the city clean out I want to
reiterate it's not belonging to
the city it's just accessible
to the city so that clean out
would be on the right of way
line or um, somewhere
accessible so that it's not
it's easier for us to get to um
I had to learn a little bit of
this. I am not a plumber at any
point. So just so you know, uh,
right now the clean outs are
not set up so that they would
sweep away um, if there's
something that were to happen,
it would it's the potential to
be a mess inside the structure.
So we were asking that we, uh,
place this clean out in the in
the right away. And then the
next item is the 2026, uh,
national electric code. So when
we brought brought the codes to
you back in FEBRUARY, we asked
to adopt the 2023. Uh, the 2026
is already out. It's going to
be adopted by the state, um, on
SEPTEMBER 1st. And although the
city automatically would
recognize that and work with
developers, um and builders
that would bring that forward,
we're asking that when we bring
this amendment back to you in
SEPTEMBER that we also go ahead
and move forward with adopting
the 2026 national energy code.
So we although we just adopted
the 23 in FEBRUARY, we're
asking that we go ahead, move
forward with the 26 um later on
this fall. So again it's just
going to align everything uh
with what the state already
recommends and will have
adopted um as of SEPTEMBER 1st.
So that would be part of the
revision as well. Uh, we would
ask for one amendment in that
adoption and that's um for a
disconnect mainly on the
commercial but a disconnect on
the exterior of the building.
So the next steps in the
adoption timeline. So right now
we're here with you. I'm just
kind of presenting the ideas
uh, we will move forward with
adopting or finalizing that
language that will bring
forward to you later on this
fall. Um, again, we'll bring it
back to you more in depth with
the final product um, later on
this fall in place that on a
regular agenda item and then uh
we will also be working with
our developers and uh,
contractors to let them know
what is coming and give them
time to conform to those
changes as well. That was
really quick. Any questions?
You know I got one. I'm sorry.
Uh. Did I understand when you
you said that we're putting
clean outs? We're just asking.
The right of way. Is that
automatic or is that as we need
them? So that would be moving
forward from the time of
adoption. So those that are
there would remain the way they
are. But anything new coming in
would have to conform to this
okay. Thank you.
>> on the fee exemption on
storage ships I think that's
great uh I guess uncertain
situation. So thank you for
that. Um, do you have the
average turnaround time at
there's still going to require
a permit. So do we have an
average turnaround time on the
permits though? So on the shed
specific yes, ma'am. Uh we were
looking at making those kind of
an over-the-counter adoption
and approval something that the
clerical staff could do
upfront. Um, so as long as it
meets the, um, the setbacks and
there's no additional, um,
construction to it, that would
be a pretty quick turnaround.
So they would come in with like
a drawing or something like
that where they're going to
place on their property. Is
that right? Yes okay with with
along with the site plan so
they know where specifically on
that property it would go.
Okay.
>> and then the electrical
disconnect um is that for going
to be for our new businesses or
going to be for remodels or
how's that going to. That would
be for the newer construction.
So if it's already there. Are
we.
>> for the newer construction
if it's there we're not going
to make them. Um retrofitted or
anything like that okay. And if
they do any type of remodel or
anything like that at.
>> that point yes they would
have to make it conform. Okay
okay. Thank you. On the roofing
permit what is it currently and
are you. Talking about if it's
more than minimum 300ft they
need to get a permit. Is that.
Right now what is it right now
yeah right.
>> now it's anything so any
roofing they should be coming
in to do a permit okay. But now
we're going to relax and relax
it a little bit to those three
squares or the 300ft okay.
Emails.
>> thank you. Okay we want to
move along with my show
tonight.
>> you bet. Okay the second
half. And second half. So the
next is the 2024 international
property maintenance code.
Again when we came in FEBRUARY
we discussed bringing this as
well. Um we are now prepared to
do that. Um so the draft
tonight is just a general draft
that so we're not going to go
in-depth too much on this. Um
the overview of this. The
property maintenance uh I'm
sorry the international
property maintenance code was
established just to be the
minimum standards for
maintenance, um, public safety
items and to preserve property
values. So here's a couple of
photos that I wanted to show
you. These are the types of
things we're looking at
addressing. We're not trying to
be over burdensome or anything
like that. These are the things
that we routinely get calls on
from our citizens. So why would
we look to adopt this? Um, we
have a lot of these items
already in our city codes. Uh,
we're looking to just bring
them all together and have one
standard across the board with
some consistency. Um, so. Again
we're establishing the minimum
standards for structural safety
uh, fire sanitation and
habitability across all
residential and commercial
property. So this is like it
says international property
maintenance. So it's not just
residential. It's not just
commercial. It's it's not just
multifamily. It would be across
the board. Um this would be
proactive maintenance. Um so
we'd be looking to help our
property owners identify some
items that need to be corrected
before they get even worse then
uh, they could potentially
become and then it reduces any
um, conflicts or confusion
between all the different um
sections of our current codes.
So right now it I pmc is
adopted across the nation so
there are 600 jurisdictions and
then 40 states um that already
have this in place. There are a
few states that actually have
adopted it across the board.
And then they allow the cities
to adopt um specific amendments
to that to the code. Um there
is another city south of here
that has actually taken this
entire book and made it their
own, put their city on the
front and adopted the whole
thing is their own um their own
code, their maintenance code.
So we would not be any
different than many cities
throughout the nation. So the
core standards uh, on the
exterior we're looking at
weatherproofing or painting
just to help preserve that wood
or any exterior um, on the
interior again, we're not being
overly aggressive. Uh we're
just looking at what everyone
should be comfortable with the
natural lighting, proper room
ventilation and then minimum
ceiling heights and then
plumbing as well on safety
systems and sanitation on the
mechanical and fire. It
requires functional heating. Um
heating is required throughout
um the codes and we're just
bringing it forward to make
sure that they're maintaining
an adequate temperature. Um and
then sanitation and pest
control this is really what you
get in all your reports every
month for the code report where
you hear or you see the the pie
chart it's typically the
nuisance um, that is the
biggest piece of the pie.
That's what we get all the
calls on. So again this that's
going to be another huge part
of this um code just as a
comparison like I said earlier
we already do have a lot of
this in our codes. Um it's
spread out through all
different chapters. Chapter 34
is our nuisance code. That's
what talks about our high grass
and weeds, our junk vehicles.
Um, that code has not been
revised since the time I've
been here and I've been here 11
years. So it's time to to
revise that we're going to look
to eliminate some, um, some
things that are listed in there
that we really have never um,
addressed. I don't know if you
all know, but um, the duration
of tobacco products is against
our city code. We'd probably
look to remove that. Um, and
then also looking at removing
the handbills and placement of
handbills um, there's the uh
there's some state law out
there that eliminates our
ability to do that as far as
the high grass and weeds right
now, um, it's a violation if it
gets to be ten inches or more
we would look to consider
possibly moving that up to 12in
or more. Um, a lot of the
states are a lot of the cities
around the state already have
it at 12in. Um, so we would
look to be more um, relaxed and
give those citizens a couple of
more inches, uh, before it
becomes in violation that we
would respond to as far as code
enforcement, we would also
retain the wildflower permit.
There is a permit that citizens
can apply for um to as long as
they apply by the end of MARCH
to keep a wildflower patch or
their yard of wildflowers and
they would be exempt from any
high grass um and weed
violations. As far as chapter
66 that is our solid waste
ordinance. Um property
maintenance code would bring
that in line as well that talks
about the placement of the
trash carts. We do get a number
of calls that trash carts are
either out at the curb or in
front of the property. We look
to um, make sure that that
placement is adequate and not
overbearing on chapter 98
that's the minimum standards
that talks about the structure
uh, the sub standards building
board all of that is within
chapter 98. So we would make
sure that all of those codes
that we've already adopted
align with this as well. And
then it would also establish a
boarding standard. Um when I
talk about boarding securing a
structure. So if there's a
structure that's open to
unauthorized entry uh right now
we just tell them to secure it.
There's no requirements on how
to do that. The pmc actually
does have specifications on
what they need to do to
properly board those so that
people cannot just break down
the door or take off the wood
and enter again. Um, on chapter
50 we do have a section
regarding graffiti. Uh we would
just make sure that that is up
to date. It's been 20 years
since that ordinance was
adopted and it's time for some
revisions on how we can address
the graffiti and eliminate it.
As far as penalty and
enforcement, I know that
there's some concerns from the
public that by adopting this we
would be looking at putting in
more fees. That is not the case
at all. We would continue with
our same type of enforcement if
we have to write a ticket it
would go through the
administrative court. That
court was adopted back in 23
and we would adhere to all of
those penalties um again on the
fees until city uh code have to
take action and mow the yard or
clean the yard, there would be
no fees assessed and those fees
would only be those that would
be charged to the city from the
contractor. As far as the
implementation again we're just
we're presenting tonight for
ideas. Uh, we will have the
draft ordinance available
hopefully later on in SEPTEMBER
to bring forward to you. We
would also again work to
educate our landlords and
tenants. Um that's a lot of
what code enforcement does is
the education. We'd rather
teach people what they need to
do to maintain their properties
because citations are are not
necessarily going to get us
what we where we want to be. We
want to educate them to prevent
the nuisances. Um, so we would
work with all of those folks.
Um, we'd also update our
websites to be conforming to
the information that we adopt
and then we would deploy it um,
throughout the city. So um, I
wouldn't anticipate it
happening quickly. I would ask
that once it's adopted we have
that time to work with our
citizens and constituents and
then maybe 90 days after it's
adopted roll it out to
everyone. So our next steps
again it's to finalize the
legal review of the draft. Um
we are talking with our
citizens as a matter of fact
today I was I emailed with two
different people about high
grass and weeds. Um, so they
they have some feedback on what
they'd like to see as far as
um, pollinator plants and the
ability to keep their grass a
little bit higher to promote
that. And then uh, we would
look to update our technology
so all of us use the um tyler
system to send our notices out.
We'd have to update all of the
code changes within that and
then we'd bring it to council
for adoption. Okay. Any
questions on that. Then as it
relates to residential um an
hoa is this in. Any way. Shape
or form um affect the ability
of an hoa to still govern the
way they govern? Not at all.
The governing uh hoa um
documents are completely
separate from the city and code
enforcement does not do any of
those hoa enforcements. Okay.
>> another question I have
relates to commercial property
that's for sale. Um how is that
policed or how do we if
somebody have to report
something or do we go around
looking for things like that
because you know, occasionally
we'll see uh something that's
for sale and the grass is
really grown. How how does that
work? Uh, I would say a
majority of the time the calls
do come in from the public
because they get around a whole
lot more than code enforcement
does. But if code enforcement
does see something that is a
violation they will address it
at that point. Uh we don't I
hate to say it but we don't
want to spend any additional
time in vacant properties. Um I
will say though. There are a
few that. Because they've been
vacant for so long they do
attract a lot more attention
from code enforcement. So they
are visited a little bit. More
like you. Okay just a couple of
questions. So uh the apmc on
those guidelines we're going to
basically just adopt those
those like 100% and then we
won't have any call outs or
special call outs. We will have
some special call outs. So when
we come back with the draft
those are the items that we
will address with you that we
would be changing or modifying
okay.
>> and you'll have a table or
some like that with here's what
have you yes versus what we're
proposing. Yes okay. And I
guess the age old question on
education how do you plan on
doing that because that's where
the thing you hear from
everybody else but I didn't
know about that, brian. And
even the ordinances we have now
people say why I didn't know
even though they've been on the
books for a long time. So what
I propose is visiting with our
hoa. Representatives, letting
them know. Visiting with our
neighborhood. Association so
not even those that. Are hoa.
>> fees um. Specifically but
people that are. Active in the
community. To get the word out
that way of course we will
update our. Websites and and
also get information out on
social media. Um, and we'll
work.
>> with our. Communications
groups to get those those
announcements out. I don't
foresee sending out something
um, like a mailer to. Everyone
because.
>> that would be a lot uh to
to.
>> pay for. But we.
>> will. Definitely get the
word out. We have at times gone
door to door passing out
information and fliers.
>> so. We could potentially. Do
that maybe on some of the more
active communities. Um, so the
word.
>> is out okay. Maybe some of
the groups that do the uh
national night out sign up for
that and definitely list um and
the pollinators. Uh, I really
like that part. Uh, however
native plants that could be a
gamut of things. Johnson
grasses is a native plant. Some
of us has a yard of johnson
grass. How do you. Right was
there and that was part of the
conversation I was trying to
engage with the. Citizen this
morning that was concerned
about um, the requirement of
having to mow down her or her
flowers. Um, I wanted to. Get
with her more because I not
really participated in that as
far as pollinator plants or
anything like that. So I'd like
to engage with those that
community a little bit more to
see what they can share with
us. Um, I wouldn't necessarily
anticipate johnson grass. I
would look at something
flowering. I would assume
that's what would attract the
bees in the pollinators. I
don't know though I'm no I'm
not an expert on that part of
it. Well I guess it depends on
if you're saying native plants
versus your pollinator plants
go together. Okay.
>> well definitely um make note
of that and see if we can do
some more research on that
okay. Thank you.
>> uh go ahead. Oh, it. Just
this is. Maybe on topic. Um, I
was reading some of that. I
forget where it was about, uh,
not not here somewhere that
they require air conditioning
in buildings and homes. Uh, is
that required at all in any of
our. So air conditioning.
>> is not required. Um, the
amounts. I would bring this up.
Right right there. Are uh there
is. Already one section of our.
Codes that does require. Air
conditioning. Um, and it's
that's in our multifamily in
hotel ordinance. Um, it cannot
go over I believe 85 degrees.
Um we. Are looking at maybe
possibly implementing that as
well. Um, but I know there's
some situations on commercial.
Facilities if it's a. Warehouse
you don't you don't typically
um condition. Those areas and
so. There's some room to make
some amendments to that that
section. Okay thank you.
Anybody else so when it talks
about oh. Sorry sorry um the
nuisance part give you an
example on driving. Here today.
>> there was apartment complex.
Close to my. House that uh.
Folks there. Use it for the
street for parking, which is
okay. Not a problem is cars
broke down flat tires and
several um, they've been there
for a while. So are those.
Situations just where we just
need. To see that. What is the
call code enforcement? Yes.
>> for any junk vehicles? Yes.
Um, I will say right now the
ordinance.
>> that. We currently have
talks about, uh, inoperable
vehicles on private property
uh, we can look at broadening
that with the pmc uh, with
their junk vehicles, um, and
consider it in the road. I
don't know, typically.
>> the. Things that are in the
right of way. It's something
that we would send over to the
police department. Uh, but we
can work together on that to
identify those junk vehicles.
>> and that's what we're I was
sort.
>> of confused. I didn't know.
Since they parking on the
street. It's not on their
private property so they. Have
the. Requirements are go out
the window. Of what has to be.
As far as the junk vehicle. Um,
but I think that's something I
can work with the police
department on because I think
their time frame for storage.
>> is a. Little bit different
than what ours is on the code
enforcement side, but we can
definitely look into that. But
as far as that trash I know the
guy that does a recycling.
>> truck. It goes by so fast
those that can shut down. Takes
off.
>> if you don't have it can a
certain area. He wanted to stop
so he's got his own code that
he goes by so we probably don't
even have to look at that one.
Anybody else okay so staying on
junk junk vehicles for a
minute. Yes. So where is a junk
vehicle on somebody's property
that is an issue like back
backyard. So right now if it's
behind uh privacy fence we
don't see it. It's not it's not
a violation. Um, the times.
That code enforcement is.
Typically called out is when
they're in the driveway and
they have flat tires, they're,
um, wrecked something like
that. But typically.
>> if they're in.
>> the backyard behind.
>> a. Privacy fans or covered.
Co enforcement won't even visit
then. It's a vehicle include
boat utv trailer. That is
actually defined in the
transportation code. So yes
trailer would be part of that.
Um I. Believe a. Boat is I'd
have to. Dive into that a
little bit more as far as the
transportation.
>> boats on a trailer so.
Probably yeah. Yeah yeah well
yours.
>> it. Was yours. Yeah no sorry
about and then you talked about
um you know I know I know we
don't have control over what
people do for building
materials and things that go
on, but you're talking about
generating property or
deteriorating surf and siding
painting whatever and we can we
can say stuff about that and
what defines something to be a
deteriorating enough where you
would say something about it.
So in the both in our current
ordinance and then the property
maintenance code it talks about
deterioration and uh. So would
has to be. Maintained so that
it's not rotting or has the
potential to run. So if there's
wood. That has chipping paint
we can address that okay. Okay
okay thank you. Anybody else?
No thank.
>> you okay. Next bradley on
the legal guidelines government
involvement in bond election
advocacy. Good evening, mayor
and council. First I want to
apologize for.
>> my voice. It sounds a little
struggling but. Don't worry.
I'm not. Hurting as bad as it
sounds or as bad as it hurt
your years. Probably. So we'll
get through.
>> this together. Um.
>> as you.
>> know. The city's called a
bond election for NOVEMBER 3rd,
2026. Therefore measures that
will be on that election
proposition eight. Will be. For
the reconstruction of fire
stations two and three,
proposition b for the
reconstruction of 50 streets
throughout the city.
Proposition c will concern the
reconstruction of the city
services complex. Proposition
d. Will.
>> uh, concern certain library
improvements tonight. What are
we going to talk about? Want to
talk with you tonight about
advocacy for bond election. Is
it something that's important
as the election uh. Uh comes
closer? Specifically we'll
answer the question what are
the rules concerning advocacy?
Forgive me by the city city
staff and the city council
related to the bond election.
State law defines the unlawful
use of public funds for
political advertising. Election
code 255.03 makes it uh. It
says that an officer employee
of the city MAY not have
knowingly MAY not knowingly
spend or authorize the spending
of public funds for political
advertising and political
advertising. This section is
broad enough to encapsulate
advertising or advocating for a
bond election like we've
called. This section continues
on subsection b provides. This
limitation does not apply to a
communication that factually
describes the purpose of a
measure. The communication does
not advocate passage or defeat
of the measure. I italicized a
few words we want to key on.
First is factually. So the city
can can pursue efforts that
will allow us to factually
describe the election what it's
about, what the propositions
are, what it will do. Um so
that is acceptable where that's
not acceptable and when that
crosses a line is if it gets to
the point of advocating passage
or defeat of a measure, that's
where. It becomes tricky to
understand where the line is.
But it's important to note the
ethics commission has
interpreted that very broadly.
Not only do they interpret what
is advocating passage or defeat
of the measure broadly, the
fact is they've also
established that no matter how
much factual information about
the purpose of a bond election
is in a communication, any
amount at all of advocacy is
impermissible. You can put
together the best explanation
you could and at the end you
could close it with a nice
little tagline not even
intending anything bad it just
says do what's best for our
city or help our city take care
of such and such. That line
alone could be enough to make
all.
>> of. That communication and
presentation impermissible.
It's hard to to address every
particular circumstance that
could come up, but I did pull a
few examples from ethics
commission opinions. These are
some actual statements that
have been found to be
advocating for passage of a
measure. The first one is that
light rail is a solution that
contributes to the long term
sustainability of our region,
and we support it 100%. That
pretty clearly illustrates that
they're supporting and want it
to be passed. So if they were
to cut off right before. At
the. After the word region
they'd probably be okay.
There's a few words in the
first half that I can point to
that we MAY want to use a
little bit different language
for instance a solution height
that would indicate hey this is
the right thing to do. This is
going to fix something that's
otherwise broken. Um we would
want to present it as light
rail is an option that
contributes to the long term
sustainability by and we want
to put factual things that
light rail does provides or
accomplishes. So that's
presenting information that
will then enable the public to
make a decision rather than
trying to push them towards a
particular conclusion. I think
the second one doesn't go quite
as far but it's still still
there, right? The bond proposal
provides the best solution to
the needs generated by the
school districts population
growth. That MAY be factual, it
MAY actually be the best and
people could read all the
information and they themselves
MAY determine it's the best but
it's our job not to make that
conclusion just give the
information to allow them to
reach those conclusions. The
last one given today's
construction costs and the
needs of the district, a long
term bond is the only viable
financial solution. So again,
even if that is a factual
conclusion that's that's true.
It's pushing people to that
conclusion and into that
position that would then
require them in essence if they
agree to pass that measure. So
if we say we have. Numerous
roads in need of. Repair and
the bond helps address those
needs. That's pretty factual. I
mean they know what that's
addressing. It will help to
address the need. Um if yeah. I
think. That would be pretty
close to the line. I want to
give one more example that
didn't make the cut here. Um,
we've there's there's one
example where colors alone on a
presentation was enough for the
commission decide that because
they had what they called
gloomy colors on one side and
happy colors on the other that
advocated for the passage of
the of the measure. So you just
need to be really cautious in
how we put this forward from a
city perspective. So let's get
right down to it. What does
this mean? What are the what
are the lines city advocacy
this city can and should
communicate factually about the
bond election right. Because
we've called the election it's
important that the public know
what it is, what it says and
what it would do what it's for
the first of I think many
efforts the city will make to
get out that factual
information is the bond
election education web page
included. The url here should
be a link if somebody uh can
get in and open the
presentation as well. Um so
that is perfectly acceptable.
It's legal and frankly it
should be done to help the
public understand and have a
reliable source for information
about what the the election
will actually accomplish. Next.
City staff at the city staff
level individual advocacy by a
staff member is allowed. It's
appropriate so long as it does
not utilize any city funds.
This needs to be it has been
interpreted by the commission
broadly again. So it needs to
be understood that this is a
very broad application. So
before staff member before you
go you know make your opinion
known which everybody has the
right to do. Make sure the way
you prepare to give that
opinion to how you prepare any
materials that you use in
presenting that opinion and the
method or manner in which you
present it are not utilizing
either the resources or funds
of the city and specifically
thinking about the staff level.
Um, you know it shouldn't be
done while you're on city time
.Uh, in preparing for that as
well the city council advocacy
very similarly individual
advocacy by council members
allowed so long as it does not
utilize any city funds. A lot
of the same things that just
discussed are going to apply
here as well the way you
interact as council members
with city resources where you
utilize those is a bit
different. But again you'll
just want to ask yourself as
I'm preparing for this, does
this material does this
resource am I utilizing
anything from the city and if
so you need to find another
method to accomplish what you
want to do for your advocacy
either for or against a
particular measure. Want to
close with just a few things
little just a couple examples
again to try to speak to every
possible situation. Is that
really possible is to think you
know you can't use a city
vehicle if you happen to have
access to one for any of your
advocacy efforts a computer or
a phone that's issued by the
city paid for by the city that
shouldn't be utilized in
carrying out any of those
efforts at either city staff
members uh, either for
themselves, uh, for another
staff member or for an elected
official. They shouldn't be
used to perform tasks to
support your individual
advocacy either..
>> is that when they're on the
clock not off the clock. But
if. You want to have a very
clear distinction uh, in it
would be concerning if the the
things they're doing off the
clock, if they're very similar
to the duties they have while
they're on the clock. That
raises a question still but
assuming there's a clear
separation between those
efforts that would be
acceptable. Yeah.
>> and then lastly not to use
city resources to prepare
materials related to the bond
election again unless it's
simply to present factually
what the election is about. So
with that I'll stop, you know,
offending you with my voice but
I am willing to answer any
questions you might have. So so
if.
>> we were doing advocacy. Um.
>> things that we.
>> have. From the.
>> city that are monogrammed
for. Instance or our nametags
we should not. Wear those I
would presume when we're out
advocating for the bond just to
avoid. The possibility of that
being viewed as you're here on
behalf of the city. That would
be my recommendation. Yes, sir.
Yeah, that's at least.
>> you brought that up to me.
I'll give credit where credit
is due. I'll just say that. Um
well, I do actually have a
question, bradley.
>> because. I think this. Gets
confused.
>> advocacy for a bond
election. Can be confused with
,uh, campaigning for
individuals. So our charter
specifically prohibits city
employees. From supporting or
opposing any. Candidate in an
election. Um.
>> and so you might. Talk about
that a little bit. How that's.
>> different from the bond
election but. Also uh, sworn
police and fire are exempt.
From that to.
>> the extent that they are not
on the clock, that they are
not. In city. Uniform in a city
vehicle, anything like that.
And then the last thing I'll
say is that so for me and. Most
of.
>> you know, pretty much all of
the full time staff. It's a
pretty gray area whether we're
on the clock or not. Because we
work all the time. So um. So
you won't see us, um, advocate
for the bond election. We're
going to be very measured in
what. We say. And put out and
then anything mary does as you
know, is is purely factual. In
fact. In fact, the. Website
that uh, it MAY be live now or
it's going live soon we had
bradley review the. Language
because. We want to be. Careful
that nothing could be viewed as
advocating one way or another.
So anyway, you know, address
that question. Yeah.
>> with respect to the charter
provision, uh, I think it kind
of speaks for itself in the
language. Right. It it's very
clearly identified as not
advocating for or against a
candidate for a position uh, in
in in limiting speech and the
ability uh to engage in that
manner it's going to be very
narrowly um interpreted and
applied. So the language in
your charter would not extend
to uh a bond election that's
not a person or candidate in
that particular scenario. Uh.
>> was there another piece of
that, paul that you think I
need to talk to. Just uh maybe
the. List the. Exemption of
sworn police and fire when
they're not on duty? Um,
because I know you've seen in
the past we've had
associations, uh, endorse.
Candidates before. And that
that's allowed they're exempt
and those association. Folks
just. So you know, when they're
doing that they're not on the
clock. They don't use. Any city
resources or. Anything like
that. Paul it's and that
perfectly. So so just to to to
uh kind of tie that up weren't
so I, I don't know that
firefighters own anything other
than close it look like their
firefighters um but uh the I
know that the associations they
come they can go to their polls
on their off time and and
advocate for the. Fire stations
just say right. That's correct.
Okay. All right. I just wanted
to make sure that we were.
>> good on that. Yes, sir. But
not in their working uniform.
They in the their uniform at
home that looks like their
working. Uniform but it should.
Yes.
>> right but. Okay thank you.
Thank you riley. Next item is
future agenda items. The
purpose of this item is to
allow the city council an
opportunity to bring forward. A
proposal to put an item or
issue they wish to discuss for
a future agenda item in
accordance with take so means
acting discussion shall be
limited to the proposal to
place that item on a future
agenda. Council shall not vote
or take any action on the items
during the meeting. Council you
have any items you want to put
on a future agenda?
>> nope nope. And no.
>> no seeing none. Uh at this
time the city council will
convene into executive session
at 610 on AUGUST 24th, 2026 to
consider matters as authorized
by text government code 6551071
consultation with city attorney
seeking advice about pending or
contemplated litigation as
listed in the posted agenda
55107 for personnel matters as
deliberate and appointment
employment and duties of
public. Officers or employees
municipal court judge 55108
which I wish we weren't having
that conversation uh 551087
deliberation regarding economic
development negotiations as
>> it's just oh. Okay. 99
bottles of beer. Did you get
one? You get. $8.
>> oh he'll top. Securities
okay. Got it. Such a mom thing
to say I don't eat.
>> I'm. Not hungry. Young just
could have all the food you
want. It's like. My grandmother
said that she cooked the entire
or she ate the entire. She
cooked so. Oh oh. Good evening
.Welcome to the richardson
hills city council meeting. It
is 7:01 P.M. And I will call
the AUGUST 24th, 2026 city
council meeting to order a
quorum of the city council is
present and the meeting has
been duly. Posted and in
accordance with the texas open
meetings act of the texas
government code, we will start
with item a1 and two is the
invocation in the pledge
council member getz will lead
us and we invite you to join us
in prayer as well as the pledge
to the united states and texas
flags as you choose. Dear
heavenly father, we thank you
for the opportunity to serve
our city here in the council
chambers today. Please help us
make the best decisions for all
of us keeping in mind our
residents, city staff, first
responders as well as those
whom we interact with on a
daily basis, we are grateful
that we have been brought
together today understanding
not only the burden of public
service but also the
fulfillment that we obtained
from it. Continue to watch over
our students and families
keeping us all safe from harm.
In your name we pray. Amen and
pledge to the american flag
pledge allegiance. To the flag.
Of the united states of
america. And to the. Republic
for which it stands. One
nation. Under GOD, indivisible.
With liberty. And justice for
all. And now the texas flag
honor the texas flag. I pledge
allegiance. To the texas one.
Under GOD. One and indivisible.
You can go ahead and keep
checking in there. Um next item
is public comments. Um it's an
opportunity for citizens to
address the city council on
matters which are scheduled on
this agenda for the
consideration by the city
council but not scheduled this
public hearing in order to
address the city council during
public comments, a public
meeting appearance form must be
completed and presented to the
city secretary prior to the
start of the meeting. Do we
have anybody sign it? We have
no one signed up. We will move
on to the next item is it is
the consent agenda item a5
provides the council the
opportunity to remove an item
from the consent agenda
council. Do you have any items
you wish to remove from the
consent agenda? Seeing everyone
shaking their head no the item
is on the consent agenda. Uh
excuse me considered routine
and require little to no
deliberation by the council for
the audience's information the
list of items on the consent
agenda will appear on the
screen. I'd like to call for a
motion. I move we approve the
consent agenda as presented.
Council PRESIDENT For the
first. Was that. To go? Council
member mitchell on the second.
Any discussion? Seeing none.
Call that question please vote.
Passes seven zero. Moving on to
c one public hearing on fiscal
year 2027 proposed operating
capital budget I will open the
public hearing for the fiscal
year 2027 proposed operating
and capital budget colin chase
proceed to present the item.
He's coughing now to spreading
all right. City council.
Members will be presenting on.
Fiscal year 2027 budget
microphone on. There for higher
up to you whatever okay am I
good all right there you.
>> go here to talk about the
proposed 2027 budget. So the
notice for this evening's
public hearing was published in
the city's newspaper of record
on the city's website on the
tarrant county property tax
website, in the city's
newsletter and on city cable.
Public comments can be
submitted through the city's
website and social media
channels via tax info at nj.Com
via tarrant dot true prodigy
dash tax transparency.Com or in
person during this evening's
public hearing. Comments
received as of 4:00 this
afternoon were printed off and
are available at your seats.
Key drivers of the budget
development process this year
included results from the most
recent citizen survey direction
from city council input from
the public collected throughout
the year and an assessment of
needs by city staff. As I
proceed through tonight's
presentation you'll hear about
investments the proposed budget
makes in the city's core
services including public
safety, infrastructure and
community development. These
investments are made possible
by a proposed property tax rate
that is higher than last year's
adopted tax rate, but that is
below the voter approval tax
rate. I will share more on the
proposed tax rate during my
next presentation. Part of how
we're able to propose a tax
rate below the voter approval
rate is by being very mindful
of the city's head count as the
population of north richland
hills has increased, the number
of employees per resident has
decreased, remaining relatively
stable over the last six fiscal
years. Another way the city has
controlled costs is by adopting
new perspectives. This year in
particular, staff were
challenged to rethink old
assumptions and develop new
ways of delivering services. As
a result, there are a number of
items that are not in the
proposed budget. Over 458,000
are not in the budget due to
savings from efficiencies or
outdated programs that have
been sunset over $591,000 in
credit card processing fees are
also not in the budget due to
implementation of convenience
fees for customers who choose
to utilize these payment
methods. Finally, over $31,000
in travel and training expenses
were eliminated from the budget
with only the highest roi
trainings making it into the
proposed budget. The proposed
budget contains a number of
changes to the city's revenue
sources starting with property
tax certified values are lower
than last year due to the
tarrant appraisal district's
reappraisal plan record protest
activity and a new business
personal property exemption
that shifts taxes from
businesses to residents.
Despite these challenges, the
proposed tax rate is below the
voter approval rate. Sales tax
is projected to be nearly 5%
higher than last year's adopted
budget due to new business
activity. Other revenues are
mostly flat with short term
rental revenue, shared services
revenue and charges for service
higher than current year
levels. Finally, the proposed
budget makes strategic use of
reserves in some funds for one
time expenses and capital
projects with no proposed
drawdown of general fund
reserves. The proposed budget
also contains a number of
expenditure changes primarily
driven by costs outside of the
city's control. Inflation
driven costs account for $3.8
million in total increases with
water and sewer rate increases
making up the majority of these
costs. The proposed budget also
includes funding to implement
changes recommended by the
city's efficiency studies,
including for its fleet
facilities and the water and
sewer utility. Six new public
safety positions are included
in the budget, including four
that will serve in schools, one
new dispatcher and an emergency
management position. Finally,
the proposed budget includes
funding for the restaurant
rewards program aeds at
community parks, the new heart
of our community appreciation
luncheon and more. Residents
continued to identify streets
as a top priority and the city
has invested accordingly. City
council has allocated $4
million for street maintenance
over each of the last two
fiscal years, with an
additional $3.56 million
proposed for 2027. Separate
from the story of funding
levels is the story of how much
preventative street maintenance
work is actually getting done
due to the city prioritizing
completion of the 2020 bond
program, street projects and a
comprehensive pavement
condition analysis conducted in
2020 for a portion of the
previously approved funds for
street maintenance remain
available. $3.8 million in
street maintenance projects
were completed between fiscal
years 23 and 25, with a
significant ramp up this fiscal
year to $6.3 million and
projects being completed as
proposed. The 2027 budget would
facilitate over $7.56 million
in preventative street
maintenance projects, reaching
completion before the end of
fiscal year 2027. The budget
does include an adjustment to
water and sewer utility rates
based solely on the through of
rate increases from fort worth
and the trinity river
authority, which the city
purchases water and sewer
treatment services from the 35
cent increase for water and 47
cent increase for sewer
translates to a $6.23 bil
increase for the average
residential customer. A list of
funds with their corresponding
expenditure amounts is
presented on this slide. The
total proposed operating budget
which omits internal service
funds to avoid double counting
is $181,886,865. Switching
gears to the capital budget, a
list of capital project
categories with their
corresponding proposed budget
amounts for fiscal year 2027 is
presented on this slide. New
investments included in the
proposed budget totaled
$24,395,222, which is added to
the over $122 million in
previously approved capital
projects that are in varying
stages of completion. Included
in the proposed capital budget
for fiscal year 2027 are a few
funding additions that were not
discussed during the work
session on JULY 31st. The first
additional funding for the
reconstruction of smithfield
and main street is due to bids
coming in higher than
anticipated. The second
additional funding for the big
fossil interceptor, a sewer
infrastructure upgrade project,
is due to an engineering cost
estimate coming in
significantly higher than
anticipated. Finally, staff are
requesting additional funding
for miscellaneous drainage
repairs to address water flow
near the bridge on onyx drive.
All three of these funding
requests developed two recently
to be included in the
presentation on JULY 31st but
were added to the proposed
budget online and filed with
the city secretary's office on
AUGUST 7th. Other highlights
from the proposed capital
budget include several projects
to improve parks and recreation
amenities and spaces. $500,000
is proposed to redesign
ridgefield park, while $430,000
is proposed for replacement of
playground equipment at clyde
zellers and founders park. $3.5
million is proposed for the
renovation of the near h2o
kitty area, which is original
to the park and is now over 30
years old. The renovated kiddy
area will create a more
engaging space for young
children and families while
reducing operating costs.
Finally, highlighted equipment
replacements included in the
proposed capital budget include
replacements of several end of
useful life vehicles including
a fire aerial truck, seven
police vehicles for public
works dump trucks and an
ambulance. To continue
gathering feedback from
residents. City staff sent out
a short flash vote survey that
was open from AUGUST 18th
through the 20th. Full results
have been printed out and have
been placed at your seats. The
first question asked
respondents whether they felt
they are getting their money's
worth for their tax dollars.
68% said yes, 19% said maybe or
were unsure and 14% said no.
Last year during this time we
asked the same question in a
flash vote survey which allows
for a comparison in comparison
to last year. Those saying yes
increased 4% maybe and not sure
increased 1% and those saying
no decreased by 3%. The second
question provided some of the
highlights from the proposed
budget and asked residents for
their overall reaction 75%
approved, 14% were neutral or
were unsure and 11 disapproved,
11% disapproved. The third
question asked residents how
the city should adapt to
inflation in the future.
Respondents could select up to
four options. The top answer
was by improving efficiency
while the bottom answer aside
from other and not sure was by
having fewer services. We also
asked this question during a
survey last year and have
displayed the results of the
two surveys side by side. The
percentage of residents that
believe the city should
implement more technology and
self-service options fell the
most, while the largest
percentage increase was for
respondents indicating they
were not sure. The final
question asked residents for
any other comments or
suggestions from the proposed
budget. Over 140 comments were
submitted by respondents which
are available for review in the
packets by your seats. For the
purpose of this slide. A word
cloud has been provided that
identifies the most frequently
used words in responses.
Finally, I'd like to conclude
by highlighting the city's
efforts to discuss the proposed
budget and tax rate with
residents. So far the city has
hosted two budget road shows on
thursday, AUGUST 13th at city
hall and on saturday, AUGUST
22nd at kindred coffee.
Additional opportunities for
public input are still
available. Public hearings and
adoption of the budget and tax
rate are scheduled for the next
regularly scheduled council
meeting on SEPTEMBER 14th.
Additional information on the
proposed budget and tax rate
can be found on the city's
website at nd.Com/budget or the
tarrant county property tax
website. Instructions on how to
submit comments can also be
found on those pages, or
residents can email tax info at
no h t.Com. That concludes my
presentation. Happy to answer
any questions. Any questions?
Russ your lights on. Do you
have a question? Answer yes.
Okay.
>> um I'll say it's just. A
couple of comments. Um, you
know with the efficiencies
being the top thing I think we
did really well this year. You
know the staff did a bang up
job of coming back with a lot
of good cuts that were there as
far as in and savings. Um, you
know this has been a tough
budget year with the inflation.
Um but I was seeing them the 45
I think 44%. Through user fees
.If I'm not mistaken that's
the legislature's kind of limit
those this next time we're
talking and talking about it
right. Yeah. Um so that would
be that would be a tough thing.
But anyway I, I think just I
think this is as good a job as
we could have done through all
things considered on what we
need to spend to to keep things
going. So thank you. Thank you
all. Thank. Any questions? No
more questions now. Okay this
is public hearing already open
the public hearing at this time
i'll ask the city secretary if
she has any request for people
to speak at public. Yes, mayor.
>> I've got one form and I'm
sorry if I pronounce your name
incorrectly. Sarah said. If you
can please approach.
>> the podium. State your name
and address for. The record,
you've got three.
>> minutes. To address the
mayor and council. I say. And
also if y'all are running for
something, don't announce it
here. That's, uh, something
we're not going to so I
appreciate that. Well, I'm.
Always running.
>> and I'm not announcing
anything by the way I'm say it
as I said and uh, my address is
6705 sapphire circle
north colleyville, texas 76034.
Well in your presentation you
said and uh, I talked to mary
mccarthy in privately and ask
her about how much money and
how much valuation you are
going to lose because of the bp
exemption. And at that day he
did not have the answer. But I
don't know if he has answer
today or not. Uh.
>> by the uh that's a new
exemption $125,000 per bp
account. But uh, we consider
that every business has one bp
account. That is not true. Some
businesses are two accounts
some businesses that have 345
bp accounts. So instead of
getting $125,000 reduction in
their uh valuation taxable
valuation, they are going to
increase $375,000 uh reduction
overall for one business. Uh
another thing about uh bp 75%
of tarrant county will pay $0
in bp taxes 75% of their
accounts. So that is either
125,000 or below 125,000. Uh
last entity meeting chief
appraiser mentioned that uh in
2025 tax year tarrant county
lost 12% of their taxable
value. This year we lost 13.2%
and next year we are going to
lose 17% of the taxable value
and we will never able to
recapture it. Although they
promised to increase 15% that
is not going to happen because
in the last two years it
creates so much unequal and
non-uniform and unequal all
over tarrant county that
appraisal district is not able
to recapture everything and to
make it uniform and equal they
have to reduce more valuation
next year. So let's see what
will come up next year but it
is not going to be 15% increase
that the way they promised
right now. So that's all they
said in the last entity
meeting. But hey there is so
much other stuff that I would
like to tell you what happened
during the entity meeting and
I'm chasing appraisal district
for over a year because they
hide some accounts under one
account a consolidated account
number and you pay if you use
the services at texas assessor
collector office you paid per
account to tax assessor
collector and when they uh
consolidate the account numbers
some of the delinquent taxes in
the account number they are not
able to recapture it. Again
this is the problem uh probably
you will see in future but
thank you for your time mayor
and council to give me thank.
>> you thank you. And he's
going to cover the exemption in
the next presentation so thank
you. Anybody else? I'd like to
see if there's anyone in the
audience who wishes to speak in
support or opposition to the
request or so please approach
podium. Um seeing none I will
close the public hearing. Uh,
there being no action required
by the council we'll move on to
the next item. The next item is
,uh, the proposed tax rate for
the next year. I'll open the
public hearing this tax year
2026 fiscal year 2027 proposed
tax rate and carl chase foster
again to present the item.
Hello again mayor city council
members uh I do not have
detailed information to present
uh included as part of my
presentation on the bpp. Uh,
but we're happy to be uh to
include that in my next
presentation on SEPTEMBER 14th.
As I mentioned during the
budget public hearing, uh, the
notices for tonight's public
hearings were published in
multiple locations. Public
comments received as of four
this afternoon were printed off
and available at your seats.
Approximately 64% of the
north richland hills tax base
is made up of residential
properties, with 35% being
commercial and 1% being
industrial and other. The total
net taxable value for tax year
2026 is approximately 8.8
billion, a decrease of 4.6%
from the prior year. This is
due to a number of factors,
including the tarrant appraisal
district's decision to not
reappraise properties for
multiple years in a row, a
record number of protests and
the new business personal
property exemption that was
discussed earlier. Additionally
,new construction is down
58.5% from the prior year which
further suppresses property tax
revenue. These lower certified
values have the effect of
raising the no new revenue and
voter approval tax rates. The
proposed tax rate of 55.514
$0.04 per $100 a value is
higher than the current year's
adopted tax rate but is below
the voter approval rate.
Looking at the two components
of the overall tax rate, the
maintenance and operations rate
has increased while the
interest and sinking rate has
stayed the same. While some
debt was paid down this year
new debt was issued for an
ambulance and fire aerial truck
which stabilized the initial
rate. This is a comparison of
the tax year 2025 adopted rate
to the tax year 2026 proposed
rate. The information shown
here was included in the public
notice for the tax rate public
hearing as required by state
law while the average homestead
taxable value is presented here
,individual homeowners tax
increases or decreases will
vary depending on changes to
their specific property values.
The total levy on all
properties includes revenue
from the general fund. Tiff and
debt service fund that is
generated from property taxes.
The city of north richland
hills is not the only taxing
entity, and our residents pay
property tax to the city
portion of the total tax rate
paid by our residents makes up
approximately 25% of the total.
This matters as the collective
actions of these entities,
including the city have
resulted in actual property tax
savings for our residents
compared to five years ago, the
average home in north richland
hills has increased in value by
over $85,000 or 32.2%,
significantly increasing the
net worth of many families over
that same time period. Total
taxes do have decreased over
$726 or 11.9% based on the
proposed tax rates from all
entities that MAY impose
property tax on nra residents.
The estimated total tax bill
for 2026 is $7.51. Or 0.1%
higher than last year, far
below the pace of inflation. To
assist with affordability, the
city of north richland hills
offers a 20% homestead
exemption for eligible
residents, which translates to
savings of $390.66 for tax year
2026 for the average nra
homeowner. The city also offers
an exemption of $36,000 and a
tax revenue ceiling for seniors
and residents with qualifying
disabilities. 32.3% of
residential accounts have a
senior tax ceiling. Property
owners with a tax ceiling or
freeze in place will not pay
more property. Taxes unless
they purchase a new home or add
on to their existing home. This
slide illustrates all city
functions funded through the
property tax rate 51% of all
property tax dollars support
public safety functions.
Investments in streets make up
24% of property tax spending.
Other city functions including
facilities, community
development, parks, the library
and others round out the
remainder. This slide shows the
25 largest cities in tarrant
county sorted by the average
residential tax bill based on
each city's proposed tax rate
and average residential home
value. North richland hills
falls perfectly in the middle
of this comparison, with 12
cities producing higher bills
and 12 cities producing lower
bills. I'll end this
presentation with a brief recap
of the long term financial
forecast I shared on JULY 31st
and how next year's adopted tax
rate helps to shape the future.
The actions taken by city
council over the last few years
to reduce property taxes plus
limitations imposed by state
law have created a tax
increment representing $647,000
in potential property tax
revenue that is set to expire
after this year. Put plainly,
if this amount is included in
the tax rate city council
adopts for fiscal year 2027, it
becomes a part of the tax rate
calculations for the city in
the future which preserves
flexibility if this amount is
not included in the tax rate
adopted for fiscal year 2027,
this increment is lost forever.
Future no new revenue rates and
voter approval rates will
permanently generate $647,000
less in property taxes than
they otherwise would have in
lost city council calls and
elections for voters to vote on
the tax rate. Before I jump
into the forecast, I'd like to
provide a little more context
the city has been able to
maintain service levels while
adopting a tax rate at or below
the no new revenue rate over
the past three years by putting
our reserves to work. This
slide shows how the fund
balance for all of the city's
capital funds added together
has changed since fiscal year
2023. While each individual
fund has limitations on what
revenue can be spent on this
consolidation is helpful to see
how things have changed over
time. The 2027 budget as
proposed will continue to
convert capital reserves into
projects that benefit.
>> the. Community, ending next
fiscal year with 46% of the
resources that were available
in 2023. This slide conveys the
same information but for the
city's operating funds in
comparison to the city's
capital funds, utilization on
the operating side has been
lower, including growing the
fund balance as recent as
fiscal year 2024. However, in
order to balance the 2026
adopted and 2027 proposed
budgets, these operating fund
balances have begun to be spent
as well. While every fund in
the fiscal year 2027 budget
complies with the city's
minimum fund balance
requirements, monitoring this
trajectory is important for
ensuring the long term fiscal
health of the organization.
Shown on this slide our
projected expenses over the
next five fiscal years
increases are based on the
impact of inflation on existing
core services as well as
planned expenditure increases
including increasing tax rail
costs and the addition of
staffing for a fifth ambulance
starting in 2028. We can then
compare those expenditures to
planned growth in revenue
including from sales tax
charges for service and
property tax assuming that the
increment discussed earlier is
included in this year's adopted
property tax rate, the
difference between expenditures
and revenues in this scenario
create the balance. This
analysis shows the city still
has work to do to ensure high
quality services continue to be
delivered in a financially
sustainable manner. For
comparison, we can also model
what projected revenue looks
like assuming the same growth
in sales tax and other revenue
sources but with a property tax
rate that does not capture this
year's expiring increment. In
comparison, long term budget
deficits are approximately
$648,000 higher each fiscal
year, with a projected deficit
of over 3.2 million in 2031.
While these analyzes do
represent the best effort of
staff to predict the future,
they are based on a number of
assumptions that could turn out
different in reality. In
particular, this analysis does
not assume any changes to state
law. Audience members
interested in a more thorough
review of the long term
forecast are invited to visit
our.Com/budget where there is a
link to the JULY 31st budget
work session video where the
forecast is explained in
greater detail. City council
has scheduled one additional
public hearing for 7:00 pm on
monday, SEPTEMBER 14th during
the next regularly scheduled
city council meeting. The vote
to adopt the tax rate is also
scheduled for this same
meeting. That concludes my
presentation. Happy to answer
any questions.
>> any questions? Um I think uh
obviously in the out years
we're going to have to figure
out how to do savings from
technology because uh, that's a
pretty good cap that's out
there and facing us. So um,
this did you want to say
something on it? I was.
>> just going to add so on the.
Business personal. Property tax
exemption. So this year it.
>> was a $68.
>> million uh loss in value and
.A which is equivalent to
382,000 in revenue uh, based on
the proposed rate. So what
you're looking for side.
>> this is a public hearing and
I've already open the public
hearing at this time. I'll ask
secretary as he MAY request to
speak. Yes, mayor.
>> we've got um one person to
speak on item c2. Ambika sharma
.Are you in the audience? If
you can. Please step up. Uh,
approach the. Podium and state
your name and address. For the
record, you've.
>> got three minutes to.
Address the mayor and council.
If you are running for
something, please don't say
okay. Um.
>> hi. My name is ambika sharma
and I wanted to speak on the
tax rate. I got some of. The.
>> um, uh, presentation made by
one.
>> of your colleagues. Uh, it's
unfortunate that you have to
consider increasing tax rate.
Um, I wanted to vocalize I
guess my support that that from
a perspective that's the only
lever left. Uh, when
appraisals.
>> are. Frozen and appraisal
appraisals are also allowed to
be protested. Uh, when I
studied the. Appraisals that.
Came out for 2026 uh, tax year,
uh year over year, the. Total
equity. For residential
properties went down by 39
billion which is about 12%. Um
so you know north richland
hills I'm not so I'm not sure
specifically how much of that
was your share. But overall at
the county level it was about
$39 billion year over year. Um
so when appraisals are down you
have no other lever but to
increase the tax rate which is
extremely unfortunate. Uh, so
I'm here uh, to encourage you
to send a stern letter back to
the town. Appraisal district.
Um, you know, telling them that
you do not condone this, uh,
know uh, the whole um, freezing
of appraisals year over year
and asking them to. Return back
to, uh, yearly appraisals.
Thank you. Thank you. And yes,
our experience is about the
same percentage drop as the a
county, so. Anyone else? No.
>> mayor. This is a public
hearing. I've already open a
public hearing. This, uh, will
go to the next one. Sorry. Um,
I'd like to ask if there's
anyone in the audience who wish
to speak in support or
opposition to the request if,
um, please approach podium.
Seeing none, I will close the
public hearing. There is no
action at council this time.
We'll move to the next item. To
e1. Uh, that is award rfp 20
6-017 uh quality excavation llc
the construction main street
project from smithfield road to
davis boulevard in the amount
of $4,030,707.39 including
alternate one and alternate two
and authorize the city manager
to execute the related
construction agreement. Nathan.
You are a.
Thank you mayor. Good evening
council. Tonight staff is.
Seeking your.
>> approval of a construction
contract for the main street
street scaping and snyder
street extension project
project will reconstruct main
street, snyder street and
center street near the
smithfield station located
within the smithfield todd. The
specific scope of work for the
project consists of uh
reconstruction of main street
between davis boulevard and
smithfield road with on street
parking and sidewalks.
Reconstruction of both snyder
street and center street south
of main street uh with on
street parking and sidewalks.
Construction of a sidewalk
along the west side of davis
boulevard from main street to.
Odell and um todd style
infrastructure for street
light, street furniture and
streets trees on. Main street.
The bid was structured as a
base bid plus alternate bid
format to provide council some
flexibility. Uh, the two
alternates uh that are shown
serve as complementary
strategies in attempt to
protect the large tree located
at the southeast corner of main
street and snyder street. Uh,
just for reference, alternate
one is using flexible base
material in lieu of lime
stabilized subgrade uh near the
tree to be less destructive to
its root system. Alternate
number two is using trench list
water line installation in lieu
of open cut construction to
minimize ground disturbance
near that root system. Because
these alternates work in tandem
to provide the best chance of
preserving the tree, staff
recommends um if you do approve
one to approve both of them um
the project received 14 bids
from reputable contractors.
Staff in the design engineer
are recommending award of the
base bid plus alternates one
and two to the lowest
responsible bidder quality
excavation llc quality
excavation is successfully
completed prior city projects
including bedford u.S road and
glenview drive west which were
both part of the 2020 bond
program. Um funding for this
project is available in the fy
2026 capital projects budget
under the main street street
scaping and snyder street
extension project and the
utility project. A significant
portion of this funding for the
project comes from the
north central texas council of
governments grant nick cog is
contributing $2,223,100 in
grant funding, which will cover
an estimated 53% of eligible.
Project costs. Uh and finally
by this generally it every one
of my street projects here is
um should the council award a
contract tonight uh this slide
here to show some of the ways
we keep the community informed
you can text main to uh, 888777
.Um, interesting enough when
uh, the other side of davis
main street was the same one so
they'll probably be a little
bit of confusion but we're
going to. Try to.
>> pass that message out.
>> we're just going to keep
main being the number here. Um
we'll also update our website
as needed and specifically on
main street kind of the
corridor it is we'll probably
go out there and do a little
bit of doorknocking ourselves
and just kind of giving them
some updates. Um so tonight
recommendation for council uh
is to approve a construction
contract with quality
excavation llc for the
construction of the main street
street scaping and snyder
street extension project in the
amount of $4,030,707.39
including alternate one and
alternate to and authorize the
city manager to execute the
related construction agreement.
And with.
>> that I'd be happy to take
any questions. Any questions
now. Okay.
>> hey, nathan. Uh, so first of
all, thanks for trying to save
the tree. I appreciate that.
Uh, I know it's, uh, special.
Try to there's a it's a old
tree, so thank you. Um, what
about the is this road going to
be closed down similar to the
way that main street was on the
other side? Is it going to be
in stages or how is that going
to work to make sure that
businesses like back 40 and
other places like that. So
right now we're going into it
with the uh you know our
anticipation is there will be
one lane shut down so it'll be
one lane either way they're
doing construction part of this
what will happen is should this
be awarded tonight one of our
first steps is getting with the
contractor and seeing what
their. What they're thinking.
Um, uh, as we're talking right
now, I don't see a scenario
where we just close down the.
Street for. The duration like
we did.
>> the. Other side. The other
side had a lot less impact. Um,
we were able to close that
because there was ways around
it on this side there's not
that same flexibility. Okay.
>> and it is the contract. Is
there any type of performance
uh requirements for them to
finish by x number of dates?
Yes.
>> uh I believe it's 12 months
is our 365 calendar days. Uh
and then just like any one of
our. Projects there's lrd or
liquidated damages attached to
and other things like. That
okay fantastic thank you sir.
Anybody else okay. He said uh,
this contractor had done work
force in the past. And I could
be completely wrong. Uh, but I
think. Remembering something.
About some being some problems.
On bedford road.
>> is this this is the same.
Contract that we had a lot of
problems with. In that project.
Is it. Uh it is the same
contractor that we used on
bedford julius road. What I
will say I mean I worked.
Directly with that. Team uh,
that whole team has gone from
quality but they have a new
team in that we worked with on
glenview. Um, and they
provided.
>> a. Good product and
ultimately the end of the day
bedford used did turn out to be
a good product. It just was
maybe a little bit of. Um
friction between contractor and
city on that. Okay. Thanks.
>> anybody else? Thank you carl
for a motion. Motion that.
There you go. Okay I make a
motion that we will award rf b.
20 6-017 to quality excavation
llc for construction of the
main street road project st1
1102 from smithfield road to
davis boulevard in the amount
of $4,030,707.39 including
outlet number one in ultra that
number two and authorize the
city manager to execute the
related construction agreement.
Thank COUNCILMAN Roberts. Thank
you, second circuit. Thank you.
Councilmember matt got the
second question. Please vote.
Passes seven zero. Next
consider the 2026 preventive
maintenance program. Call
kenneth garvin to present the
item.
Good evening. Mayor city
council members tonight. Staff
request. Approval of the. 2026
preventative street maintenance
program. This program is one of
the most visible investments
the city makes. It's the work
residents drive over every
single day, and it's also one
of the most cost effective.
Every dollar we put into
preventative maintenance is a
dollar we don't spend to have
to spend later on full
reconstruction. In the 2024
2025 cycle, public works
delivered preventative
maintenance on 79 streets
totaling 11.62 centerline
miles, supported by 6.4 million
in funding. All planned work
was fully completed including
two inch asphalt overlays and
the rehabilitation of mercy
road. Over the past five years
preventative treatments have
improved 54.5 centerline miles
or about 21% of the city's
street network, demonstrating
consistent forward progress in
maintaining pavement quality.
Each year's program is built
upon a data driven process
using roadway surveys conducted
by roadway asset services,
which we refer to as. Repairs
include pavement scissor
sensors and ground penetrating
radar. Raz identifies candidate
street public works staff then
performs full build
verification before before
preparing cost estimates and
routing the program through
city leadership, the cip
committee and finally to
council for approval. This
development process ensures
that each year's program is
data driven, feel verified and
aligns with both budget goals
and long term pavement
management strategy. Well, our
2024 2025 funding totaled $6.28
million that was spread across
two full project tiers for the
2026 program, we are proposing
a single year budget of
$4,121,745. The 2026 program
delivers a higher volume of
streets and centerline miles
within the single construction
season than either of the
individual years of the
previous cycle. This curve is
one of the most important tools
we have for explaining pavement
management. Pavement
deterioration accelerates
non-linearly a roadway loses
its first 40% in quality over
75% of its life span, but the
next 40% drop occurs rapidly
over just 12% of its remaining
service life intervening
intervening early with cracks
sealing at $2 and 64 a linear
foot or slurry sealing at $9.01
per linear foot preserves
infrastructure at a fraction of
the cost of milling overlay at
roughly $90 a linear foot or
full re habilitation at 180 to
$280 per linear foot. The
proposed 2026. Scope covers 44
streets and 6.77 centerline
miles at $4,121,745. This slide
displays our candidate street
map for 2026, which focuses
strictly on two inch asphalt
overlays and targeted
rehabilitation for overlay
streets we utilize turnkey
contractors like pavement
perform milling and paving
consecutively minimizing
neighborhood disruption for
deeper rehabilitation on
streets like holiday lane, we
continue our inner local
partnership with tarrant county
precinct three, leveraging
county crews and machinery to
stretch taxpayer dollars to
minimize or to maximize capital
efficiency. We also request
pre-approval for three
contingency streets greenleaf
drive, chris street and
waterford waterford court. If
program savings materialize,
crews can immediately complete
these streets while equipment
is already mobilized. Any
unselected contingency street
will carry forward to fiscal
year 2027 program. We recognize
that street maintenance is
disruptive. Residents deal with
lane closures, noise, dust and
restricted driveway access
sometimes for several days at a
time. How we communicate
directly shapes how the program
is received. Our approach is to
notify residents well in
advance of work on their
streets, provide clear
information about what to
expect and how long it will
last. Keep the city website and
social media channels current
as the schedule progresses and
maintain a responsive point of
contact for questions and
concerns during construction.
We also coordinate closely with
contractors so that the on the
ground notifications such as
door hangers, no parking
notices and driveway access
arrangements are consistent
with what we've communicated
centrally. The objective is
that no resident is surprised
by work on their street. On
AUGUST 10th of 2026, the
capital improvement projects
committee thoroughly reviewed
and recommended the 2026
program for council approval.
Once we recognize the committee
members who reviewed the
proposal the chair danny
roberts, mayor pro tem kelvin
dupree, council member matt
blake and mayor jack mccarty
the committee evaluated the
data driven selection process,
the interlocal partnerships,
the budget efficiencies and
overall program's scope before
issuing its formal
recommendation. Staff
respectfully recommends that
city council approve the 2026
preventative street maintenance
program for 44th street and
6.77 cinnamon levels models at
$4,121,745 along with the
pre-approval to utilize program
savings on our three
contingency streets. Thank you
for your support and I'm
available for any questions.
Any questions. I didn't thank
you for the presentation. Um
you're doing a lot more streets
than. Ever before. Uh, and I
know you're working with a
couple different entities. Do
you anticipate having enough
resources crews equipment to
feasibly do 44 streets or
somewhere close to that in the
next year? We do so.
>> a comparison would be is the
2024 or 2025 program. We did 79
streets. We did that in about
eight months and and it has a
lot to do with the. Fact that
we've went to uh turnkey as
pape mentioned in the
presentation with being able to
have them come and pave the.
Streets.
>> we we.
>> have. A lot of success. So
with that so we do. Believe
that. We have the resources to
be able to complete that and
within the next year. Um so
kind of thanks for the
presentation. So you know
sometimes we hear from
residents. Saying well.
>> my streets terrible. Um, I
guess with this. Ground
penetrating radar radar system
I guess you're using basically
a scientific method and then
you're back in that up also
with a visual inspection. Is
that correct? That is correct.
So there great it out. We we uh
we use oci which is our overall
overall condition index and uh
that number helps us to
identify where we're trying to
be because once once the street
falls into that reconstruction
or rehabilitation process it's
not considered for overlay
anymore because it's way way
past the. Ability to be able.
To do that. So there are. Some
streets that are out there that
100% they they've already
they're they're too far gone
for us to invest the money into
them because it wouldn't be
would be smart on our part to
be redoing those streets with
as a mill an overlay. So uh, we
absolutely take that data.
That's the data that helps
identify hey, what's the
direction that we're going uh,
with which streets.?
>> okay. So I appreciate that
scientific method. There and
then um. But tarrant county,
uh, can you explain us a little
bit how that works?
>> I know.
>> that we approach them and
are we paying for what
materials or how does that work
exactly? Uh, so what we do with
them is is that we we, uh,
identify the street the that we
ask for their help on, uh and
then what we do for the payment
side of it is is that we pay
for the materials and then they
supply materials and fuel and
then they supply the labor a
part of a part of that. Let's
hear their side.
>> of it. So I appreciate you
all doing that and saving a lot
of money. Thank you sir anyone
else. So yeah thank you thank
you. Call for a motion. MR.
Mayor I. Move that we approve
the 2026 preventative.
Maintenance program.
Councilmember getz thank you.
So I.
>> guess I can thank you.
Councilmember delaney the
second. Call a question please
vote. Passes seven zero moving
on citizens presentation. This
is an opportunity for citizens
to address city council matters
which are not scheduled for
consideration by the city
council. In order to address
council, please complete a
public meeting appearance form
presented to city secretary.
Prior to the start of the
council meeting. Takes up
meetings act prohibits action
by the council in any subject
that is not posted on the
agenda. Uh not on the posted
agenda. Therefore the council
will not take action on items
brought up during the citizens
presentation. As a reminder,
there's a time limit three
minutes per speaker.
>> not. To exceed 30 minutes
for all speakers. Do we have
anyone signed up? Yes mayor
we've got one form from.
>> eric kreyol. Eric.
>> are you still in the
audience? If you can please
approach. The podium.
>> state your name and address.
For the record. You've got
three minutes to. Address the
mayor and council. And like
I've said in the past, if
someone if you're running for
something don't talk about it.
But thank you for coming here.
You're welcome. Mayor council
good evening. For those of you
don't know me I sit on the
appraisal district board.
>> so I want.
>> to come give you guys an
update on the. Reappraisal
plan. And I want to raise.
Awareness for. Uh.
>> northwestern hills
residents. Uh.
>> I also want to say. Mayor
mccarty, thank you for your
letter on. The, uh, budget.
This.
>> um we. Uh, tad. Ended up
passing a budget of. 2.35%
raise the entities down from
3.61 and uh overall it was uh,
2.6 increase down from 4.05
that was proposed. So I hope it
helped. Thank you.
>> so in that. Packet um. Look
at it at. Your leisure but on
the first page residential
ratios I want to talk about
those your 2027 budget the
average home value you're using
according to your tax notice is
$281,489. If you look.
>> at the ratio sheet we see
homes in this range are valued
at roughly 91% of what sales
data. Indicate they should be
valued. The correlation for
people to understand is that
they're paying taxes on 91% of
their home's value. Contrast
that to homes above 1 million
and we see homeowners only
paying taxes on 71% of the
home's value. The data shows
the plan is created a
non-uniform and an equal
overall tax burden for lower
value homes specifically homes
below 500,000 the way the
system's designed, the only way
to guarantee is close to
uniform and equal as possible
to conduct yearly appraisals.
So how does it affect
north richland hills residents?
Simple when the higher value
homes are not contributing an
equal shares the lower value
homes then the tax rate must be
set higher than necessary to
obtain the required revenue.
Now in a city as diverse as
north richland hills, the
disparity will start to present
itself between neighborhoods
when considering even larger,
more diverse entities such as
tarrant county and the school
district. The disparities are
larger and your residents are
shouldering more of the overall
burden. As you can see from the
protest data, agents do a
respectable job of representing
homeowners from across the
value spectrum. The difference
in the ratios is not the result
of lower home values receiving
inadequate representation
during the protest process. The
difference is the higher value
homes are appreciating faster
than the lower value homes as a
matter of policy I do not
believe the appraisal district
should be creating these
inequities. 2027 is scheduled
to be a year in which property
is appraised and the current
issues should resolve, but as
long as every other year
appraisal occurs, the
inequities will continue into
the nine appraisal years. Of
course there are those that
will say that what tad is doing
is providing price stability
for homeowners and to that I
say well tide MAY lock the
value. It cannot predict the
various tax sensitive rates
from that perspective price
stability is moot.
Additionally, protests continue
to grow so I'm not sure it's
price stability people seek
when I ultimately believe
people are seeking is a
reduction in the overall tax
burden and that's not the
purview of the appraisal
district. But what is in its
purview is to ensure each
taxpayer pays the same
proportional share of the value
of his or her home. It needs to
be uniform throughout the
county and uniformity allows
for lower rates. That's how the
appraisal district can best
help taxpayers with the part.
>> of the. Property tax
equation. Thank you all for
your time. Thank you eric nice
job. Anyone else? Um there's no
one else can speak. Um so I
have a question. Um, if I
request rogers status room I'm
asked.
>> city. Secretary. Lloyd
called. Um, we move on to the
next item. Okay, so I was
reading through it there. Um,
consider ordinance 3972
authorizing the issuance of the
ceo's uh series 2026 in the
amount of $3 million for a fire
engine and an ambulance.
Good
evening, mayor and. City
council. Um, with this
particular ordinance. You are.
>> being requested, um, for
your approval. To issue
certificate of obligation. Um,
to fund a. Fire truck. And an
ambulance and an amount of $3
million. So it.
>> was on the JUNE 22nd. City
council meeting. That the. City
council did. Approve for. Staff
to. Issue a. Notice of
intention to issue the
certificate of obligation. The
notices did appear in the.
Commercial recorder on. JUNE
26th and then. Again on. JULY
2nd.
>> the notice has. Also been.
Placed on the city's website
in. Accordance with state law.
The bond. Proceeds anticipated
from this issuance totals
3,000,002.5 will. Be spent.
>> for. A fire engine. And then
500,000 for an ambulance
replacement. As a.
>> part of. It is a
certificate. Of obligations.
The city did. Request credit
ratings. From both s&p and
moody's. For s&p. The rating
was a plus which is snp's
second. Highest rating. Moody's
also. Issued a rating of two
which is their. Third highest
rating. And these are the same
ratings. That the city did
receive when the last debt
issuance occurred. These rates
do reflect. The city's stable
financial position. Strong
financial. Management and also
a commitment to long. Term
planning. These rates also help
the city to secure a lower
borrowing cost. The
preliminary. Official
statement.
>> and notice of sale were made
available on AUGUST 17th and
the bid deadline was this
morning at 10 A.M. The city did
receive eight bids. Uh the
funding from the certificate of
obligations are expected to be
received SEPTEMBER 22nd. We do
have with us here this evening
uh, stephen murray with uh
hilltop securities who will now
go over the details of the bids
that were received.
>> this morning. Um, I. Hope
good evening, mayor and
council. I'm stephen murray
with hilltop securities. Good
to.
>> be with.
>> you this evening. Um, by a.
Quick way of. There it is. Um.
By way of a reminder.
>> um, steven alluded to this.
Uh.
>> when he brought the notice
of. Intent to issue back.
>> on JUNE 22nd. We also.
>> introduced the. Possibility
of issuing. Refunding bonds and
the city has several
outstanding uh, older issued
bonds that are currently
callable and eligible to.
Produce um interest cost
savings. Um, you know, the
original plan of finance was
that we. Would but.
>> we were anticipating back
throughout the spring and early
summer actually a 1% increase
in taxable values. You know,
you're all well versed on what
actually did happen with
taxable values. And so once
once we saw the 4.6% reduction
um it sort of made that that
argument a little bit more.
What we were going to do was
accelerate some principal on
the refunding bonds to create
some additional savings on the
the latter years. And so the
removal of that.
>> that taxable value kind of
eliminated that possibility for
us. And so uh in discussions
with staff we decided to um,
you know, while those savings
were still there they're not
necessarily material or all
that meaningful for you all and
knowing we have a bond election
coming up in NOVEMBER, we've
got some big issue ones plans
coming up as a result of that
um, so to speak. It was a good
idea to kind of keep our powder
dry for that because we don't
know what's going to happen
with future appraisals and kind
of having that flexibility in
our back pocket and so we
haven't.
>> lost that opportunity. To to
refund bonds. It's still with
us. We just think it's going to
make more sense for us about a
year from now when we start to
implement those does a double
in sales. So while you're on
that for a second steven yeah
so what eric just said if they
were doing the appraisals like
they're supposed to we'd have
been able to get a bond for
lower rate and retire some of
the higher rate bonds. Well
what we would have done
actually was is include the
refunding um accelerate that
that debt service and so yeah
so that's. Overall savings for
retiring more expensive debt.
That's correct yes sir. Yep.
>> add that to your
presentation eric. Okay so
before you hear as steven
steven barnes mentioned this he
did receive eight bids on the
ceos this morning. Um td
financial products was the
highest bidder in terms of
dollar price. There is your
your lowest true interest cost
of 3.368579%. Um also I should
have mentioned this in front of
you. You should have little
booklets. We've included this
we're a little bit old school
that way like hard copies of
everything here. So um the
results are inside tab one as
displayed here on the screen
and side tab two is the debt
service requirements on the
ceos. Um three are copies of
the rating reports that that
steven mentioned. Again both
ratings were affirmed by s&p
and moody's. Um again they
speak to the strength of the
local economy are very strong
budgetary practices. Um and uh
and our financial policies here
are strong strong indicators
for us to to retain those
ratings. Um, we also get this
question quite a bit is, you
know, how did this true
interest costs compare to our
prior issuances? So inside tab
number four is a listing of all
of the issuances in kind of
reverse chronological order.
And then inside tab number five
is the preliminary official
statement that was used to
market the obligations to
investors um to receive bids
this morning. So with with all
of that being said is our
recommendation along with staff
to award the ceos. To td.
Financial products. Well.
Very
good thank you. Any questions
guys. No no. Any questions to
steven either no. Okay I'll
call for the motion. MR. Mayor
I move that we approve
ordinance 3972 authorizing
issue to amend the right
number. Okay. Authorizing the
issuance of certificates of
obligation series 26 in the
amount of $3 million for a fire
engine and ambulance. Thank
councilmember gets. Second
second. Can mayor thank you.
Mayor might I ask if the motion
can. Include two td financial
products. Llc at an interest
rate of. 3.368579% to td
financial products llc at an
interest rate of 3.368579%. And
now I know the second. One
second. Okay.
>> thank you. Any discussion?
Well yeah just real quick here
I nobody. I think likes to.
>> uh have any additional cds
that we don't necessarily need.
To I know we've uh. Done as
much as we can on this and
these are obviously for, uh,
support the fire trucks and uh
uh, really appreciate the fact
that, uh, our bond rating has
not gone down at all for uh,
s&p and moody's so over the
last numerous years. So it just
shows how uh, financially
viable we are. Yes good good
job by all and that and uh also
uh in the climate as well of
things that are happening so
thank you. Call a question
please vote. Passes seven zero
next one is g2 uh amendment two
excuse me cooperative purchase
customer agreement for data box
inc to increase the spending
authority $721,728 for the
accumulative amount not to
exceed 1,431,578 through MAY
31st 2028 for the purchase
access hardware, software and
related services utilizing the
local purchasing system
cooperative agreement 230105
amy stevens please come up.
Mayor and council. This item.
>> supports the.
>> city's ongoing.
>> effort to standardize access
control. Across city facilities
under a. Single enterprise
platform. The completed. First
phase included all. Fire
stations, the public. Safety
training facility. The library
and outreach. Center and.
Facilities and. Construction
building. This next phase will.
Move city. Hall to.
>> the same platform.
Standardizing on one platform.
Provides greater consistency.
In system management and.
Maintenance and.
>> creates a more. Sustainable
foundation. For future needs.
This is a significant building.
>> wide project involving the
migration of approximately 250
access. Control doors along
with the supporting hardware
needed to move city hall to
the. Standardized platform. The
original project. Scope was
based on. Migrating only that.
Access control software. During
detailed. Project evaluation,
staff. Determined that the
supporting hardware should also
be included. Upgrading the
software and. Hardware together
will. Ensure compatibility.
Continued manufacturer support
.And a reliable long.
>> term system. As shown on the
slide. Expanding the city. Hall
scope to include. A hardware.
Refresh and a 10% contingency
created a funding gap of
approximately $275,500. Staff
has identified savings from
other completed. Projects
within. The it capital.
Projects fund. Those existing.
Funds are sufficient.
>> to. Cover the funding gap so
no new. Funding is.
>> being requested. Separate
from.
>> the project. Funding is.
>> the. Contract spending
authority. The existing data
box. Agreement amount is
$709,850. Most of this has
already been used for
previously completed projects.
Staff is requesting an.
Amendment to increase.
>> the. Contract spending.
Authority by an. Additional
$721,728. That includes.
>> the. New quote amount for
the city hall phase and
additional. And an additional
$43,686. To be used for future.
Phases at other.
>> city facilities. The
amendment would result in a
cumulative. Agreement amount
not.
>> to exceed $1,431,578.
>> through MAY of 2028. That
total. Includes previously
completed. Projects.
>> the city hall phase and
future work purchases will be
made through the tips
cooperative purchasing program.
Which satisfies state.
Competitive procurement
requirements. With that. I will
answer any questions. Any
questions. No thank you. Good
job. Thank you. I call for the
motion. MR. Mayor I move we
approve. Amendment number. Two
to the cooperative. Purchase
customer. Agreement with data
of inc to increase the spending
authority of $721,188. For a
cumulative amount not to exceed
$1,431,578. Through MAY 31st.
2028 for the purchase of access
control. Hardware, software.
And related services utilizing
the. Interlocal purchasing
system cooperative. Agreement
23. 0105 and gets management
second. Thank you.
>> councilmember parks. Thank
you for the second um any
discussion. I call the question
please vote. Passes seven zero.
Next item consider resolution
2020 6-051 authorizing.
>> the recovery.
>> of credit and debit card
processing costs through fees.
Establish maximum recovery
amount of 5% of the transaction
amount authorizing city manager
and or designee to establish
and implement the appropriate
recovery method in the amount
of different departments,
payment processors and
transaction types providing the
compliance with the application
laws and applicable laws and
providing the effective date
treaty.
>> uh mayor council this is an.
>> item that we discussed at
the last city council work
session uh that was held two
weeks ago. We are. Bringing
forward additional information
that we want to be sure to
include for your for you all
consideration. Payment
processing.
>> by the city at this time is
a decentralized function. It's
happening in conjunction with
different departments divisions
of those departments but also
is driven by relationships with
our point of sale systems. Um,
just to give you one example of
some of that uh,
differentiation when people are
paying their um online fees
through deckard in order to pay
for short term rentals, that's
a different credit card
processor than when people are
paying online for a permit. It
could be happening under the
same department but depending
on the actual service they
could be going through a
different software system. So
much of the variation we're
seeing in cost and also in
processors is driven first and
foremost by the point of sale
that the customer is
interacting with. We need to
serve the unique needs of our
divisions and programs of
various departments. Our
transactions do include credit
cards, debit cards and
electronic payments. The costs
for processing these payments
are paid to processors and
currently are mostly absorbed
by the city. We'll go through a
few instances where that is not
the case but in general they
are observed by the city. Some
of these transactions are
processed directly by the
city's bank and in those
instances we are not incurring
a fee. This shows you all an
example uh, our comparisons to
other communities and what uh
we've got other payments. This
is specifically for utility
billing. This just provides an
overview confirming that
everyone is charging fees um,
for what it costs to process
uh, payments. But for those
that are charging you see the
amounts listed here also for
recreation center payments you
can also see a comparison for
neighboring communities for
what it is that they are
charging uh, what it is that
we'd be proposing and also what
people are charging. We showed
you all this information during
the work session it over lines
each of our departments, the
service areas or the types of
costs that are being associated
with the payments and also with
that current annual cost is
what we did was look at 2025
for actual costs. We had a full
year's worth of data for the
purpose of comparison. Um, to
do our analysis you will note
that the highest cost is
certainly under utility
billing. Um, we touch every
business, we touch every
resident every month uh, for
utility billing it certainly is
going to be our highest volume
and therefore is our highest
cost center. So we're going to
spend a little bit of time
talking specifically about
utility billing. Customers can
and do pay us a number of ways
they can pay by phone. They can
pay in person, they can pay
online by mail, dropbox people
can actually drive through uh
to city hall and drop into our
dropbox. We also have automatic
payments as well as bill pay
through people's bank. And what
you see here in the screenshot
is our website that shows
people all of those different
options, explains to them how
they can pay by uh these
various ways. And on top of
that we do receive various
payment types credit cards,
debit cards, cash money orders.
Yes we do have people that pay
us via money order bank draft,
electronic bank transfer uh
bank bill pay and also by
check. There's a few things I
want to be sure to point out
here. Uh, debit cards and
credit cards can also include
people who are doing automatic
payments. So some people are
going to do an automatic
payment on our debit or credit
card. So that's included here
as one type of payment that's
accepted. Those that have an
asterisk next to it are options
that are handled through our
bank. And so they're not
incurring a processing fee. The
city's not paying a fee when
people use these options with
checks that can incur a fee if
someone is paying online or by
phone. And that's because the
processor charges fees for
those. So if you're using a
check in person, it's not going
to charge you if you're
dropping in the mail is not
going to charge you if you're
doing online bill pay through
your bank and your bank mails a
physical check. Some banks send
us money electronically. Some
of them MAY also physical check
and that case you're not being
charged for that either. But if
you are going online um and
you're using an e check there
is a small fee that we are
charged for that or if you're
doing that over the phone. What
we see here is the utilization
of the different payment
options that has happened in
utility billing year to date.
You can see 86% is from online
payments the vast majority that
are for credit and debit cards
at about 65%. And then you can
see we do have some some
electronic checks. So those
debit credit card fees are
sitting at 2.95% for the online
or check payments. Those are at
$0.95 per transaction. Our next
biggest category are people
paying. Over the phone.
>> so over the phone is going
to charge both a percentage for
that transaction and also $0.50
.That's just the dollar amount
added on top. And then if
people are using that uh phone
service to pay with an
electronic check it is going to
be a cost of $1.45. We do have
people who come in person and
so you can see that that's
about 1% of the transactions
and then all other are sitting
there is one big group uh where
we've got our cash, our checks,
money orders, monthly bank
draft uh bill pay and also
mail. So again we're clustering
quite a bit for those online
payments. We would love to
encourage people uh to move to
another mode of payment. We'd
love to do auto draft um if
people are interested in
utilizing that opportunity. Our
proposal for cost uh recovery
is um to accommodate the fact
that there are some different
methods for recovery and also
different amounts which is
really based on which option
the payee is utilizing. Um, the
city would look to recover the
fee equal to the amount of the
processing fee. But we are not
asking to do any sort of um
charges or make any money on
these types of transactions. We
would limit that to 5% which is
uh the total limit that is
allowed for local governments
on recovery. And we're
proposing this to be considered
as a total maximum amount, but
the actual percentage would be
based on what it cost. So
because different processors
charge different amounts, we
could certainly submit
something that has 57 different
fees on it which we'd have to
change anytime the processor
changes or for efficiency sake
we could ask council to allow
for recovery and an amount not
to exceed a set percentage,
which is how we have proposed.
Customers still can't avoid
paying processing fees uh by
using other payment methods.
There are times where we might
not necessarily uh want that to
happen. For example, at our
water park we don't want people
to start paying in cash. We
still would like for them to
pay um in a cashless method.
But in general we certainly
want to encourage folks to pay
with a way that it's not going
to charge fees. For utility
customers in particular we
would look to do a number of
different notifications um, to
our customers we know again
this is our largest area of of
fees and processes and the
largest quantity of people that
would be impacted by this. We
would sit out information in
our news and notes that goes
out in SEPTEMBER on the utility
billing website as an
additional form in water bills
going out next month as a
prefilled form going out in
water bills in OCTOBER. And I
want to distinguish those two
options. We utilize a service
that helps us with our utility
billing, which makes it much
less expensive than if we were
trying to actually print and
stuff and mail envelopes
ourselves with our staff. So we
do use a third party to help us
with that. They're able to
cross-reference information
like your customer number, your
account number, that kind of
information and create that is
one form that can proactively
be sent out to customers. We
want to utilize that service so
that we can catch people early
with the exact information they
need to give us if they wanted
to switch over their their bill
uh payment option. We also will
provide a banner on our youtube
portal page where people go
online to pay those 86% of our
customers who like to pay us
online. We are going to provide
notification via email, text
and phone call. So whatever
information we have from
customers we want to utilize
that to provide the
notifications. We also would
provide the information in our
e-newsletter and as a flier on
the counter window at utility
billing. We did talk last time
about the need to come in
person in order to submit a
monthly bank draft form. We
have since updated our
processes. We will allow for
people to do that online. So we
now have an online feature
where people do not have to
come in person if they want to
make that change they can go
into our website right now
what's shown here is what is
what is on our website right
now to allow for people to do
that. Um, if they'd like to
online they certainly can come
in person um to provide us with
a physical check to do that or
they could utilize the option
in order to switch it one line.
In terms.
>> of other departments and
what those fees look like, this
is really just giving you an
overview of what those fees
are. Again you can see that
they vary depending on who the
processor is for the library we
do have in person copy fees
depends on the type of credit
card you're using as to what
the fee is, which is pretty
typical for a lot of these
processors. A discover card or
an rm card does not cost the
same as a visa or mastercard
for example. Uh, what we see in
that average rate is about
2.31% for library charges. But
you can see what's happening
here on on all the other areas
what's highlighted uh what's
shown here in bold are areas
where um we actually think it
is going to be better for our
customer and for the city for
us to continue to absorb those
fees. We'll go through some of
that rationale in just a second
specifically for the water park
we currently are charging
convenience fees if people are
paying online. So these are
fees that are right now charged
only for online transactions.
The amount varies based on the
transaction amount. So you can
see on the chart on the left
hand side the transaction range
and then you see on the right
hand side what is the current
convenience. Fee the average uh
cost that we're seeing the
average transactions amount are
actually falling in that bucket
of 91 to $120. So most of them
are really clustering around
that dollar amount in
transactions. We are going to
update these fees to be in line
with a maximum of 5% cost
recovery. So there will be some
instances depending on what it
is that people are doing online
and engaging with us
specifically for the aquatic
park where they could see some
reductions in fees. Um, just
because we're going to get
these back in line to match um
that total not to exceed 5%.
For the library, the processor
for copies very very small
dollar amounts. Um,
logistically they're not able
to reconfigure the system to
assess a fee to the customer.
It is such a low dollar amount,
um, that we find that, you
know, sort of the juice really
isn't worth the squeeze there.
Um, to make those changes for
the golf course, kemper sports
utilizes a vendor for
tournaments. So one processor
they're using every day for
merchandise and to purchase
food and those sort of
activities when you're inside
of the facility but a different
vendor if you're booking for
tournaments again that's kind
of like that best in class um
point of sale system they're
not able to pass along
transaction fees um in those
instances. So there are some
fees will continue to absorb on
the golf side of the house. We
want to pass the fees along
where it makes sense to do it,
but we certainly don't want to
hurt the overall revenue um or
activity within some of our uh,
recreational activities as well
for the inner center and also
for the tennis center.
Currently the cost for
electronic check payments is
$0.14 each. That's a cost we
want to go ahead and continue
to absorb because we don't want
to create some sort of fee
issue that in any way creates
um any sort of distraction from
people to continue to utilize
services that we hope they
enjoy. And then finally for the
aquatic park um, we do look at
cost recovery for that
operation every year as part of
an overall comprehensive effort
of our of our city team, the
in-person transactions or
something we recognize if we
were to start charging fees for
that, it MAY inadvertently
reduce people's spending within
the park and what we would lose
overall would be potentially
more than what we would gain
from passing along the fee. So
we don't want to create a
hindrance to our revenue lines.
So we believe it's actually in
um in the best overall need for
the park to not pass along
transaction fees for in-person
transactions at the aquatic
park. So the online piece for
the aquatic park would still
have fees associated with
convenience fee. Some of them
will come down because we don't
want to go about that 5%. But
if you're inside of the park
itself we would not pass along
those fees um to customers. I
do want to point out to city
council that the packet went
out um earlier last week that
did include resolution
ordinance that talked about
processing fees for credit
cards only. So it didn't
include information there about
online um or over the phone
payments. We really we spent
time talking about that
specifically for utility
billing in this presentation.
If those things were left out
then utility billing would have
about a $92,000 expense added
to fiscal year 27. That was not
our intention. So we did uh,
email to city council a revised
resolution, an overall cover
sheet that would include
terminology for electronic
payments that allows us then to
be able to charge for those
phone payments and also for um,
those those electronic checks
that would eliminate the need
to have an additional $92,000
expense going into the utility
.Um, the utility fund for for
next fiscal year based on the
changes that I just outlined
for when we would look to
continue to absorb some cost
and when we would look to do
full cost recovery, this is
what we anticipate for the
differences. So you see the
column that shows the annual
the current annual cost, what
sort of recovery method we
would look to put into place
and then the remaining cost for
for fiscal 27. So there's a
significant decrease in overall
cost but it doesn't go to zero.
Uh we want to make sure again
that we're balancing uh what we
would look to receive in
revenue from people continuing
to provide transactions while
also providing for necessary
cost recovery. In terms of
implementation this evening we
do have on your city on your
agenda, um, to allow for a
maximum recovery amount of 5%
of the transaction amount. If
you all were to approve that
then we would start as of
tomorrow morning notifying
customers of fees across
departments. We also have a
frequently asked. Questions
that we'll provide to city
staff who interface with
customers that we have
consistency in our discussions
with all of our customers. Our
finance team will begin working
with departments and also our
processes in order to implement
the cost recovery program and
this would be effective as of
OCTOBER the 1st to align with
the fiscal year and with that
mayor council I'm happy to take
any questions you MAY have.
Thank you truly. Um I know that
you did this during the work
session and there was a lot
that obviously the same but
there's very good I will say
this of course what I've seen
everybody is starting to charge
these fees on everything that I
did added.
>> on. All the.
>> stuff that.
>> didn't matter what it is.
It's added. Everywhere now and
I understand because the cards
have gotten high. So
councilmember lee. Yeah uh.
Great job on this. I think
it's. A creative way. To kind.
Of help. Our budget given the,
you know. Struggles going
forward. And the.
>> mayor's right. You know
everybody does. This now it's
commonplace. I do in my
business everybody. Online does
it. Ticketmaster pioneered.
This decades. Ago service fees.
>> all that stuff.
>> so um. One question I did
have. Is you know. It was going
to see the notification. Uh is
there anything. If people are
just like okay fine.
>> I'm just going to keep
paying how I'm going to pay. Do
they need to.
>> go change anything.
>> or. Is it just rock and
roll? They don't.
>> as long as you're making
those changes you don't need to
take any action okay. Anybody
else thank you thank you. Any
call for a motion? MR. Mayor I
move that we approve resolution
number 2020 6-051 authorizing
the implementation of
electronic payments uh
processing cost recovery
program and establishing a
maximum recovery amount of 5%
of each transaction. Thank you,
council member dupree. Second
thank you, council member
delaney the second any
discussion seeing none call the
question please vote.
Passes
seven zero. Move on to the
executive session items city
council MAY take action on the
items that were in the
executive session listed on the
work session agenda. Um I think
we have some motions when you
start with the first. But with.
Which ones has the first
motion? Sorry huh h1. Mayor I'd
like to. Make a. Motion to
authorize the city manager to.
Negotiate and.
>> execute a commercial
contract. Improved property.
>> and execute all. Necessary
and related documents for the
contract and for closing with g
and g property management llc.
453 32 davis boulevard in the
amount of. $500,000 subject to
survey plus. All closing costs,
commissions. Fees and taxes.
Thank councilmember delaney do
I get second second thank
councilmember matt for the
second. Does anyone have any
discussion item somebody that
you want to have no authority
okay thank you I call the
question please vote. Passes
seven zero second item that was
discussed in um executive
session. Yeah. Mayor I. Make a
motion.
>> that we. Authorize the.
>> city manager to negotiate,
execute a. Commercial contract.
Unimproved property and
execute. All necessary and
related. Documents for the
contract. And for.
>> closing with dream the.
Fortunes llc.
>> for. 5336 davis boulevard in
the amount of $185,000. Subject
to survey.
>> plus. All closing. Costs.
>> commissions.
>> fees and taxes. Okay
councilmember. Parks do I get a
second second council mayor
against second. Anybody any
discussion don't think that
color question please vote.
Passes seven zero last item
councilmember mitchell I think.
Mayor I. Would authorize.
>> the. City manager negotiate.
Executed commercial. Contract
unimproved. Property and.
Execute all.
>> necessary related. Documents
for.
>> the contract. And for.
>> closing with saint. Paul
presbyterian. Church for.
>> 2.2 acres or 4517. Bruce no
drive more. Specifically a.
>> portion of. Tracks to be
zero. To e to be zero to.
Health and. To be zero.
>> to. G of.
>> the john. M values and.
Survey abstract. 1588 in.
>> the. Amount of. $649,000
subject. To survey. Plus all
closing. Costs, commissions,
fees and taxes. Councilmember
mitchell do I get second? Okay.
Councilmember map second. Any
discussion on that? The only
thing I'll say is that's
bargain. That's a that's a
great that's a great deal for
what we're down so I'll call
the question please vote.
Passes seven zero moving on to
announcements councilmember.
>> roberts our next. There you
go. Yeah our next. In our. H
bike and hike will be held
tuesday SEPTEMBER the 1st. 6
P.M. Starting with the inter
center. The monthly event is a
great opportunity. To get
outside, be. Active and.
>> meet others in a fun and.
Welcoming setting. Visit the
city's. Website for more
details. City hall.
>> and. Other non-emergency
city. Offices will be closed on
monday. SEPTEMBER the 7th.
>> for the labor day holiday.
The inner city.
>> center, iron horse. Golf
course. And inner.
>> h2o will be open. Garbage
and recycling. Will not be
collected on labor day monday.
Collections will occur on
tuesday and tuesday.
Collections will move to
wednesday. Join in our. Parks
and recreation for play today
in rh on saturday SEPTEMBER
the.
>> 12th. They will be at
adventure park. Playground from
9:30 A.M. To 11 A.M. A special
nature walk will leave from the
pavilion at. 10 A.M.. We hope
to see you there and kudos.
Corner every. Council meeting.
>> we spotlight our employees
for the great things they do
tonight we recognize spencer
lopez and our neta marshall in
animal services. A resident
recently. Left a five. Star
google. Review for animal.
Services officers marshall and
lopez, who responded to her
call about a dog that was being
neglected from the moment they
arrived. They handled the
situation with total
professionalism, deep empathy
and genuine care for the
animal's well-being. They
guided me clearly through the
entire process, tapped into the
right resources immediately.
And followed. Through afterward
to ensure the dog received the
medical attention and care that
it deserved. Their dedication,
quick action and thoroughness
made all the difference. Keep
up the good work. Thank you.
With that it is 831 and we are