OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

Arlington City Council Special Meeting - June 25, 2024

City Council — Tuesday, June 25, 2024
BodyArlington, Texas
SessionCity Council
DateTuesday, June 25, 2024
StatusFILED
Video Record
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11:45

Okay, we'll go ahead and get started.

11:47

We're gonna call the city council session to order.

2:06:31

Okay, we'll call the afternoon session back to order, move down to three point one on the budget preview.

2:06:39

Mr.

2:06:39

Elvert.

2:06:42

Hey, Mayor, members of the council.

2:06:44

This is um our uh first look, if you will, at the budget for what you'll get when come back from break in August.

2:06:52

And we wanted to we're trying to believe it or not, save a little time in August by investing a little time now in some benchmarking as well as just kind of uh uh data information and and to get any kind of wisdom or feedback you might have uh before uh before we kind of really delve into it this summer.

2:07:11

Um this uh uh is in your email we sent it out to you.

2:07:15

We couldn't we missed the link this morning to get it into the agenda, but for those who want to follow it later on, by the end of the day, it'll be loaded into the link and attached to this item so anybody can take a look at it that would like to.

2:07:26

So uh let me jump right in because there's a lot of information in here.

2:07:30

So we want to talk about some of the comparisons, kind of the tax policies that you all have put in place, as well as what we expect some budget drivers and where we think things are headed this upcoming uh year.

2:07:42

So benchmarking, you know, we continue to I think compete very well uh out there in the in the marketplace.

2:07:50

Median home price in Arlington now, believe it or not, three hundred and forty thousand dollars.

2:07:55

Uh wasn't that long ago, it was about a hundred and twenty-five thousand, maybe a decade or fifteen years or so ago.

2:07:59

I mean, we used to complain about how low prices were, and now the market is really in some ways kind of overcorrected, but as you can tell, at least in within the competitive set, still very favorably positioned in the marketplace as it relates to uh home uh prices.

2:08:16

Um or the median home price per square foot.

2:08:19

I think that was something uh Mr.

2:08:20

Peel, you had asked at some point, you know, kind of on a on a kind of more of a that basis.

2:08:25

How do we take a look?

2:08:26

And it's not too far off, uh but about a hundred and eighty-six dollars a foot on average is what the information uh is saying to us.

2:08:36

From an income perspective, uh income still not necessarily growing at the speed that we would want, but nonetheless growing.

2:08:43

Um again, kind of in the middle of the marketplace there when you look at Dallas, Fort Worth, Irving, Garland, etc.

2:08:50

A little over $71,000 as it relates to the median household income.

2:08:59

Very stable, very consistent with the United States and the state of Texas.

2:09:03

We'll always kind of seem like we're just a little bit better uh than those others couple tenants of uh of a percentage point, but very really uh very healthy uh below four percent for all practical purposes remains a full employment economy.

2:09:21

Um assessed valuation, ad valorum per capita.

2:09:27

Uh it sits at around a hundred and three uh dollars uh per thousand in value.

2:09:33

You can kind of see some of the uh other competitive sets who are generating more revenue off their off their AV.

2:09:40

That's all about how you build a tax base.

2:09:44

How you do more commercial development and less residential development in the sense of less dense residential development.

2:10:05

Sometimes these aren't always apples to apples in the sense that we have a lot of things that are outsourced, like garbage and ambulance services, which don't count as an employee count.

2:10:15

And you go down to place like Austin or even Garland where they own electric utilities, for example, and it really drives their head count up.

2:10:23

So we are still very, very efficient with kind of how we get things done here well below the market average.

2:10:33

Expenditures per capita.

2:10:35

This is one of the things that I know that on the one hand you can be very proud of.

2:10:41

On the other hand, it's very concerning, right?

2:10:44

Because in order to provide the services that our residents expect, it demands an investment.

2:10:48

It demands investment in competitive wages for employees and proper head count and resourcing for the teams, and the right kind of service levels for mowing or potholes or fleet vehicles, whatever the situation may be, right?

2:11:03

So on the one hand, we're proud of it.

2:11:06

On the other hand, we have to grow it in order to meet the expectations that our residents expect, right?

2:11:11

From a tax levy perspective, still very much in the lower mid tier below average of 806, and we were sitting at 611.

2:11:20

So our favorable tax policy has yielded what you would expect lower revenue to the city.

2:11:26

We match the lower revenue to the to the lower expenditures, right?

2:11:30

That's a that should be a stated goal, but yet in a measured way to make sure we're still meeting broader service level expectations, which is our constant challenge.

2:11:41

When you take a look at rates in general, we have, I think for seven or eight years lowered our tax rate uh every year over that same window.

2:11:51

I think we've gone down five, six cents on the tax rate.

2:11:55

Um, not really sure what to expect this year.

2:11:57

My sense is that it will probably still go down again, but in a flattening kind of curve, if you will, but we'll see how all that turns out depending upon what the terrarium appraisal district uh puts out uh this year.

2:12:09

And of course, we're always very um favorable.

2:12:13

Uh, when I started this chart many years ago on the homestead exemption, it didn't look like this.

2:12:20

I feel proud uh within the region that we've really kind of put the competitive pressure out there.

2:12:25

There was maybe four or five of these that had 20% homesteads.

2:12:28

We were a leader amongst our peers at 20% since I believe the late 80s.

2:12:35

So the late 80s, we have uh have had this ratio, and everybody else, I like to say is uh joining the party, and we've seen uh these uh these evolve over time as people look for more tax relief.

2:12:48

This is one of the key ways to do it is through the exemption process and the uh fiscal policy that you all are creating.

2:12:56

Um water rate perspective, um, a similar story.

2:13:03

You take a look at all the competitive arrangements.

2:13:06

Uh in fact, I don't know, did he stay around there yet?

2:13:09

While I've got the water rates up here, I was gonna start.

Discussion Breakdown — Share of Meeting
Procedural███████████████████████████████████35%
Fiscal Sustainability███████7%
Downtown Development██████6%
Public Engagement█████5%
Public Safety████4%
Hospital Management████4%
Health And Sanitation████4%
Emergency Medical Services████4%
Boards and Commissions████4%
Summary of Proceedings

Arlington City Council Special Meeting - June 25, 2024

The Arlington City Council held a special meeting on June 25, 2024, from 11:17 a.m. (executive session) through 4:55 p.m. (open session) to discuss the FY2025 budget preview, a proposed 2025 bond election, updates from Methodist Mansfield Medical Center, an ambulance contract rate increase, economic development projects for Ikon Technologies and the Division Corridor, the comprehensive plan update, and various board appointments and reports. No formal votes were taken during the work session; key items were referred to the evening agenda or future meetings.

Discussion Items

FY2025 Budget Preview (3.1)

City Manager Trey Yelverton presented a preliminary budget overview. Key points included: median home price in Arlington at $340,000; median household income ~$71,000; the city has lowered its tax rate for seven consecutive years; a 20% homestead exemption; senior tax freeze; and a projected $5.1 million in new ad valorem revenue (based on a 3.5% cap). Future commitments (e.g., Active Arlington opening, grant phase-outs) total $5.9 million. Street conditions: 395 lane miles of residential and 112 lane miles of thoroughfare streets need replacement; to hold current conditions requires ~$30 million annually. Public safety accounts for 64% of expenditures. A 50% increase in electricity rates is anticipated within two years. Compensation will be job-family based. The budget will be finalized in August after Tarrant Appraisal District rolls are released.

2025 Bond Election & Citizens’ Bond Committee (3.2)

Deputy City Manager Lemuel Randolph proposed a May 2025 bond election for ~$180 million, with at least 70% allocated to streets. A 19-member Citizens’ Bond Committee will be appointed by August 27, with applications opening June 26. The committee will meet weekly for five weeks to prioritize projects, with council finalizing ballot initiatives in January 2025.

Methodist Mansfield Medical Center Update (3.3)

Todd Simmons (Advisory Board), Randall Canedy (System Board Chair), and Juan Fresquez Jr. (President) presented. They thanked the city for a donation to the Texas Tech Nursing School. Methodist Mansfield is a Level III trauma center, magnet-certified, and provided $19 million in charity care in FY2022. 46% of its EMS traffic comes from Arlington. Upcoming: pursuit of Level II trauma status. Councilmember Ross encouraged further partnerships for health innovation. Councilmember Odom-Wesley inquired about mental health services; Mr. Fresquez noted challenges in finding inpatient psychiatrists and suggested regional collaboration.

Ambulance Contract and Rate Increase (3.4)

Fire Chief Bret Stidham reviewed AMR’s 23-year contract. AMR made 44,000 calls last fiscal year. Currently ranked 14th in cost per transport in the Metroplex, AMR requests a 15% rate increase (5% ordinary + 10% extraordinary) to move to 5th, bringing average transport from $1,448 to $1,665. The AMR ReadyCare program (household subscription for $60/year) has only 259 enrollees; a social media campaign is planned. Councilmembers expressed support for the increase to maintain service and avoid a Fort Worth-like situation, but sought clarity on uninsured rates.

Ikon Technologies: Business Retention and Expansion (3.5)

City Manager Yelverton presented a $7 million incentive package to retain Ikon Technologies (telematics), a minority-owned company with 116 employees and $30M revenue. In return, Ikon commits to maintain its headquarters for 15 years, grow to 266 jobs, invest $1.5 million in philanthropic commitments, and assist with Division Street redevelopment. The Economic Development Corporation recommended approval; the resolution was on the evening agenda.

Division Corridor Redevelopment Opportunity (3.6)

Yelverton presented a proposal by Sam Marouk and Valencia Hotel Group to build a 145-room upscale boutique hotel on the former Caravan Motel site (2.6 acres). The $45 million project includes demolition by September 30, 2024, and completion by end of 2026 (targeting World Cup 2026). Incentives: up to $3 million grant for demolition/site prep, plus performance-based grants. The historic Caravan sign will be restored. Councilmembers Boxall, Piel, Odom-Wesley, and others expressed strong support, calling it a catalytic project for Division Street.

Comprehensive Plan Element (3.7)

Planning Manager Patricia Sinel outlined the existing comprehensive plan (adopted 2015) and the need for an update. The plan umbrella covers 28 plans. Staff held two public education sessions (25 and 50 attendees). A steering committee will be formed; applications are being collected. The engagement platform ArlingtonListens.com is now live for public input.

Park and Ride Uses (4.1)

Discussion on prohibiting incompatible uses (e.g., vehicle storage, gatherings) at park-and-ride lots. Enforcement will involve police, public works, and parks.

International Corridor Vision Implementation Options (4.3)

Council debated whether to enhance the existing 501c3 or create a city-appointed steering committee. Councilmembers Boxall, Hunter, Gonzalez supported a steering committee at this time to avoid high costs (~$400K/year) of a management corporation. Staff will bring back a formal proposal for a steering committee in August.

Municipal Policy Committee (4.5)

Councilmember Odom-Wesley reported: The committee discussed a second cultural district (entertainment district). After a listening tour, stakeholders supported a second district. The committee agreed to apply to the Texas Commission on the Arts for a second designation, which could increase grant opportunities. Tree preservation discussion was postponed.

Arlington Housing Finance Corporation Update (4.6)

Executive Director Mindy Cochran reported: The HFC board approved resolutions to work with Civitas Capital Group to convert half of Center Place Apartments (184 units) to affordable housing (60-80% AMI). Also approved applying for $15 million in private activity bonds to refund the first-time homebuyer program (31 closings since August 2023). A homeless diversion program served 91 households at under $900 each.

Appointments to Boards and Commissions (4.7)

53 appointments were on the evening agenda. Councilmember Odom-Wesley raised concerns about one library board nominee (appointed by Councilmember Pham), citing potential disruption and conflicting values. After debate, Mayor Ross tabled that appointment to August to review past statements. Pham argued it set a bad precedent, but the decision stood.

Evening Agenda Items – Home2 Suites (4.8)

Councilmember Boxall expressed opposition to the Home2 Suites hotel design (the first under new hotel standards), calling it mediocre and setting a bad precedent. Councilmember Piel agreed, saying it showed a half-hearted effort. Councilmember Pham defended it, noting brand constraints. No decision was made; the item moved to the evening meeting for a vote.

Future Agenda Items (4.10)

Councilmember Boxall requested a future staff report on creating ride share ports along major routes and venues. Councilmember Galante requested a review of the TxDOT agreement regarding trash/debris along highways.

Key Outcomes

  • International Corridor: Council directed staff to craft a formal steering committee proposal for approval in August.
  • Cultural District: The Municipal Policy Committee endorsed applying for a second cultural district designation.
  • Library Board Appointment: One nominee was tabled until August for further review of public statements.
  • Ambulance Rate Increase: The 15% increase resolution was on the evening agenda for a vote; council discussion indicated general support.
  • Ikon Technologies & Division Corridor: Both incentive packages were on the evening agenda; council expressed strong support during discussion.
  • Bond Election: The Citizens’ Bond Committee application process will open June 26.
  • Housing Finance: The HFC board approved resolutions for affordable housing partnership, bond cap application, and program refunding.

Meeting Transcript

Okay, we'll go ahead and get started. We're gonna call the city council session to order. Okay, we'll call the afternoon session back to order, move down to three point one on the budget preview. Mr. Elvert. Hey, Mayor, members of the council. This is um our uh first look, if you will, at the budget for what you'll get when come back from break in August. And we wanted to we're trying to believe it or not, save a little time in August by investing a little time now in some benchmarking as well as just kind of uh uh data information and and to get any kind of wisdom or feedback you might have uh before uh before we kind of really delve into it this summer. Um this uh uh is in your email we sent it out to you. We couldn't we missed the link this morning to get it into the agenda, but for those who want to follow it later on, by the end of the day, it'll be loaded into the link and attached to this item so anybody can take a look at it that would like to. So uh let me jump right in because there's a lot of information in here. So we want to talk about some of the comparisons, kind of the tax policies that you all have put in place, as well as what we expect some budget drivers and where we think things are headed this upcoming uh year. So benchmarking, you know, we continue to I think compete very well uh out there in the in the marketplace. Median home price in Arlington now, believe it or not, three hundred and forty thousand dollars. Uh wasn't that long ago, it was about a hundred and twenty-five thousand, maybe a decade or fifteen years or so ago. I mean, we used to complain about how low prices were, and now the market is really in some ways kind of overcorrected, but as you can tell, at least in within the competitive set, still very favorably positioned in the marketplace as it relates to uh home uh prices. Um or the median home price per square foot. I think that was something uh Mr. Peel, you had asked at some point, you know, kind of on a on a kind of more of a that basis. How do we take a look? And it's not too far off, uh but about a hundred and eighty-six dollars a foot on average is what the information uh is saying to us. From an income perspective, uh income still not necessarily growing at the speed that we would want, but nonetheless growing. Um again, kind of in the middle of the marketplace there when you look at Dallas, Fort Worth, Irving, Garland, etc. A little over $71,000 as it relates to the median household income. Very stable, very consistent with the United States and the state of Texas. We'll always kind of seem like we're just a little bit better uh than those others couple tenants of uh of a percentage point, but very really uh very healthy uh below four percent for all practical purposes remains a full employment economy. Um assessed valuation, ad valorum per capita. Uh it sits at around a hundred and three uh dollars uh per thousand in value. You can kind of see some of the uh other competitive sets who are generating more revenue off their off their AV. That's all about how you build a tax base. How you do more commercial development and less residential development in the sense of less dense residential development. Sometimes these aren't always apples to apples in the sense that we have a lot of things that are outsourced, like garbage and ambulance services, which don't count as an employee count. And you go down to place like Austin or even Garland where they own electric utilities, for example, and it really drives their head count up. So we are still very, very efficient with kind of how we get things done here well below the market average. Expenditures per capita. This is one of the things that I know that on the one hand you can be very proud of. On the other hand, it's very concerning, right? Because in order to provide the services that our residents expect, it demands an investment. It demands investment in competitive wages for employees and proper head count and resourcing for the teams, and the right kind of service levels for mowing or potholes or fleet vehicles, whatever the situation may be, right? So on the one hand, we're proud of it. On the other hand, we have to grow it in order to meet the expectations that our residents expect, right? From a tax levy perspective, still very much in the lower mid tier below average of 806, and we were sitting at 611. So our favorable tax policy has yielded what you would expect lower revenue to the city. We match the lower revenue to the to the lower expenditures, right? That's a that should be a stated goal, but yet in a measured way to make sure we're still meeting broader service level expectations, which is our constant challenge. When you take a look at rates in general, we have, I think for seven or eight years lowered our tax rate uh every year over that same window. I think we've gone down five, six cents on the tax rate. Um, not really sure what to expect this year. My sense is that it will probably still go down again, but in a flattening kind of curve, if you will, but we'll see how all that turns out depending upon what the terrarium appraisal district uh puts out uh this year. And of course, we're always very um favorable.

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