Carrollton City Council Regular Worksession on August 30, 2022

On Tuesday, August 30, 2022, at 5:45 PM, the Carrollton City Council held a regular worksession in City Hall to review the agenda, discuss the Denton Central Appraisal District (DCAD), consider Woven Clinic funding, deliberate on the Fiscal Year 2023 preliminary budget and rate/fee changes, and share reports. No formal votes were taken during the worksession; final budget and tax-rate decisions were scheduled for September 13, 2022.

Denton Central Appraisal District

• DCAD board chair Mr. Atwood reported that the DCAD board had approved a $17.997 million FY2023 budget after an initial version above $18 million. Because a majority of Denton County's 61 taxing entities voted by the August 29 deadline to reject the budget, DCAD will hold a budget workshop on September 13 and a later public hearing before adopting a revised budget.
• The rejected budget added 18 full-time equivalent positions effective January 1, 2023, including eight residential appraisers, nine additional Appraisal Review Board members, technology improvements, and seasonal labor. A consultant had recommended 124 total FTEs; the chairman said about 81 positions are currently filled. He gave inconsistent approved-FTE figures during the discussion, citing 84 at one point and 87 later.
• The chairman reported 107,000 protests filed in 2022, 6,000 overtime hours by staff, 25 seasonal employees, and 26 active ARB members running 6 to 7 panels that heard nearly 23,000 protests. More than three-quarters of protests were resolved informally, and residential appraised values rose about 25 percent countywide.
• Atwood acknowledged that DCAD has failed to produce certified values by the deadline in two of the last three years. The current plan is to reach the 95 percent certification threshold by September 9. He also said the board has heard concerns about leadership and is considering retaining a law firm to conduct an internal review that would report directly to the board, not through the chief appraiser.
• Council members raised concerns about leadership, customer service, timeliness, transparency, and the chief appraiser's rebuttal to a prior consultant review. Mayor Steve Babick said he favored a leadership change, while Councilmember Polter preferred at least a leadership review with change as a possible outcome. Several other council members supported a vote of no confidence. Council reached consensus to send a written letter or proclamation to DCAD stating those concerns; no formal city vote was taken.

Woven Clinic Funding

• The Community Funding Committee reported on its earlier meeting with Woven Clinic. Woven serves Carrollton residents only from its Carrollton facility, and the location was chosen partly because MetroCrest Hospital Authority provides free rent. The clinic identified and corrected three ineligible reimbursement requests.
• The committee noted that the $724,000 federal CARES Act/CDBG grant ends in September, with about $183,000 still unspent. Because it is a reimbursement-based grant, the unspent money will likely be returned to the federal government.
• Woven President Lisa presented a proposed patient-centered medical home model with $75-per-month memberships for unlimited primary care, dietitian services, mental health care, and some labs. Low-income patients would continue with small copays. The projections showed a $380,000 deficit in 2023 and a $149,600 deficit in 2024, with a surplus expected by the third year.
• Lisa asked the city for $380,000 in gap funding. She said $200,000 would be the minimum needed to keep the Carrollton clinic open with reduced services, and that without funding the clinic would likely have to discharge about 1,000 patients. She also said she did not want to rely on federal funds again and was actively seeking other grants.
• Council members asked about the previous budget forecast, the difference between this model and a concierge program, women's health services, funding from other governments, and the minimum amount needed. Councilmember Polter objected to characterizing the request as a rounding error, noting that city taxpayer money would have to be shifted from other services. Several council members praised the clinic's mission. No funding decision was made; the item will be considered during the final budget discussions on September 13.

Fiscal Year 2023 Preliminary Budget and Rate/Fee Changes

• CFO Diana Vaughn reviewed tax impacts using the average non-senior homestead taxable value, which rose from $229,000 to $250,000. If the tax rate stays flat, the average city tax increase would be about $120. A one-cent, one-and-a-half-cent, or two-cent rate cut would reduce that increase. Because of last year's senior exemption increase, seniors would remain relatively flat, and a one-and-a-half-cent cut could produce an actual reduction for seniors.
• Staff presented a straw-man scenario that included a 1 percent one-time Carrollton Difference payment, a total employee pay increase of 5.5 percent, compensation study market adjustments, a two-cent tax-rate cut, and other proposed items. Under that scenario, pay-as-you-go capital would fall to about $1.7 million. If DCAD provides an additional $586,000 in certified value, that pay-go amount would drop to about $1.1 million.
• Staff noted that every 1 percent general-fund pay raise costs about $608,000, while each cent of tax-rate cut costs about $1.8 million. Council members emphasized employee retention, public safety staffing, and economic development. Councilmember Sung raised concerns about economic development staffing and losing recruitment opportunities; the city manager said the master planning process should come first and that future needs might be filled through contracted services rather than new staff.
• No budget decisions were made. Staff will incorporate final DCAD numbers on September 12 and bring revised budget pages to a long work session before the September 13 regular meeting, when the FY2023 budget, tax rate, and related decisions are scheduled for adoption.

Mayor and Council Reports

• Councilmember Sung reported on his recent trip to South Korea, where he met international officials and shared Carrollton challenge coins. He described the trip as an opportunity to represent Carrollton internationally.
• The mayor and others reported on I-35E Phase 2 and Silver Line construction updates, including upcoming lane closures and rail crossings. Residents can subscribe to traffic alerts by texting 35E Phase 2 to 469-353-2101.
• A councilmember noted an issue with the floor at American Legion Post 597 in downtown Carrollton and mentioned the upcoming chili cook-off on September 10. Boards and commissions applications are due September 9.

Executive Session

• Council moved into executive session under Texas Government Code Sections 551.071 and 551.074 for private legal consultation and deliberation on the evaluation of the City Manager. No post-executive-session action is captured in the available transcript.

Key Outcomes

• DCAD: Council reached consensus to send a letter or proclamation expressing concerns about DCAD leadership, endorsing an independent review, and leaving leadership change as a possible outcome.
• Woven Clinic: The funding request will be carried into the budget spreadsheet; no final funding decision was made.
• Budget and tax rate: Final decisions were deferred to September 13, after updated DCAD certified values are received.