Carrollton City Council Regular Worksession and Meeting - September 13, 2022

On September 13, 2022, the Carrollton City Council met at City Hall for its scheduled 5:00 p.m. pre-meeting/executive session, worksession, and 7:00 p.m. regular meeting. The council unanimously adopted the FY2023 operating and capital budget, set a property tax rate of 56.250 cents per $100 valuation, approved a 25-item consent agenda, and approved a zoning amendment for a proposed 62-unit multifamily development at 4050 SH-121. The meeting opened with proclamations recognizing Live United Month and New Song Church's retiring pastor, and it closed with a public forum and council reports.

Presentations and Proclamations

• The council presented a proclamation recognizing September 2022 as Live United Month. Representatives of United Way of Denton County accepted and spoke about one in three Denton County households being in poverty or below a stability wage, urging continued partnership.
• The council presented a proclamation honoring New Song Church and retiring Pastor Daniel Park. Councilmember Young Sung and church representatives spoke about the church's community service and partnership with Carrollton public safety.

Consent Calendar

• The council approved consent agenda items 9 through 33 unanimously by 7-0 roll call, with Councilmember Richard Fleming participating remotely.
• Approved minutes of the August 16 and August 30, 2022 regular meetings.
• Authorized RFP #22-030 for arterial street panel replacement to Talbran Enterprises LLC as primary vendor and Macval Associates LLC as secondary vendor, first year $2,000,000 and total not to exceed $6,000,000.
• Authorized RFP #22-029 for the secondary alley improvement program to Macval Associates LLC, first year $1,500,000 and total not to exceed $4,500,000.
• Approved purchase of four Public Works trucks from Southwest International Truck Center for $609,026.45 and one rugby-body dump truck from Roush Truck Center for $93,288.71 through BuyBoard interlocal agreements.
• Authorized a bridge repair contract with IBCTX, LLC for Frankford Road at Furneaux Creek for $233,475.00 after rejecting a nonresponsive lower bid; and rejected all bids for the Capital Parkway/Luna Road traffic signal project, directing in-house construction instead.
• Acknowledged annual service plan updates for Carrollton Castle Hills Public Improvement Districts No. 1 and No. 2.
• Amended City Manager delegation authority to include the Chief Financial Officer, amended the comprehensive fee schedule effective October 1, 2022, and reaffirmed City Manager spending authority up to $50,000 per project or interlocal agreement.
• Approved numerous resolutions, including the TxDOT gateway monument sign interlocal agreement; CP&Y lift station evaluation engineering for $149,860; the Atmos Cities Steering Committee rate settlement; Ceridian human resources information system for up to $1,075,000 over five years; Walter P. Moore contract amendment for Carrollton Heights NOTICE design for $234,070; Fiduciary Committee Charter revisions; Gallagher cyber insurance coverage for $115,350 in year one and $461,400 total; a $650,000 CDBG subrecipient agreement with Metrocrest Services; nomination of Mike Land to the TML Risk Pool Board; TML-IRP coverage for $1,181,000 in year one and $2,362,000 total; a Firefly Development demolition contract for $93,500; and Cardno work order and asset management software for $1,690,180.

Public Comments & Testimony

• No speakers came forward during the agenda-item public comment period before the consent agenda.
• At the zoning public hearing, applicant Fahim Khan, an architect with FK Architect, spoke in favor of the project, noting enhanced landscaping, amenities, and design consistency with the adjacent apartments.
• At the public hearing on the FY2023 budget and tax rate, no citizens commented.
• During the public forum, Stanley Hobbs asked for property tax relief and better outreach about homestead exemptions for residents turning 65, saying his tax bill exceeded his monthly Social Security payment and his city, county, and school district freeze dates were inconsistent.
• James Lockridge, who said he farms over 1,500 acres in Carrollton, argued that Texas law does not classify high grass and weeds as a nuisance, accused code compliance staff, including Brian Passwaters, of harassment, and said the city's mowing of his property had cost him over six figures. He asked city officials to meet with him before the dispute escalates.

Discussion Items

• CFO Diana Vaughn reported that Denton Central Appraisal District had provided its certified roll and processed an additional $62.5 million in exemptions, resulting in a net wash in projected values. Carrollton's 20% homestead exemption is worth about 5.5 cents on the tax rate.
• Staff presented a 10-year capital spending comparison showing a projected FY2023 capital program of approximately $58 million, the largest in 20 years, roughly 184% of FY2022's $30.8 million and well above the 10-year average of $28.3 million.
• The council discussed employee compensation. A staff survey of benchmark cities showed an average total compensation increase of 5.62%. The council reached consensus to fund the 5.62% package, composed of the budgeted 4% plus a 1.62% market adjustment, making it the largest employee raise in 20 years.
• On public safety officers, staff reported one new public safety officer already hired and a second hire in progress. Councilmember Christopher Axberg initially suggested removing the new position until previously approved positions were filled, but the council ultimately kept one funded public safety officer in the budget.
• The council extensively debated Woven Health Clinic's $400,000 funding request. The Community Services Committee had recommended quarterly funding of $50,000 contingent on matching funds, up to $200,000. Councilmember Adam Polter argued for the full $400,000, citing roughly 1,000 Carrollton residents served at about $400 per resident per year. Other members supported the committee's cautious approach, and the council agreed to a compromise of $100,000 firm funding plus $100,000 in contingency, to be revisited after six months. Woven was also seeking help from State Representative Julie Johnson and other sources.
• For the tax rate, the council reviewed impact tables showing a two-cent cut would give a typical homestead a tax bill of about $1,409, up $70 from $1,339, though about $30 lower in inflation-adjusted terms. Councilmember Polter preferred a 1.5-cent cut with the difference going to employee salaries, while Councilmember Fleming preferred 2.5 cents but agreed to two. The council's consensus was a two-cent reduction, to 56.250 cents per $100 valuation.

Key Outcomes

• Adopted the FY2023 operating and capital budget ordinance for October 1, 2022 through September 30, 2023 (Item 36), unanimously, with a 5.62% total compensation package and approximately $58 million in capital spending.
• Set the 2022 tax rate at 56.250 cents per $100 valuation (Item 37), a two-cent reduction from the proposed 58.25-cent rate and the ninth consecutive annual tax-rate decrease. The ordinance included the state-required statement that the maintenance-and-operations rate will raise more property tax revenue than last year.
• Passed the resolution ratifying the property tax increase reflected in the FY2022-2023 budget (Item 38), unanimously.
• Approved the consent agenda (Items 9-33) unanimously.
• Approved Case No. PLZ 2022-89, amending PD-197 at 4050 SH-121 to allow multifamily residential with modified standards, unanimously. The approved conceptual plans show a three-story, approximately 87,207-square-foot building with 62 units, 119 parking spaces, and a 15-foot landscape buffer; the Planning and Zoning Commission had recommended approval 8-0 on August 4, 2022.
• Directed staff to finalize the budget with the approved compensation increase, Woven Health funding structure, and two-cent tax-rate reduction as incorporated in the adopted ordinances.

Mayor and Council Reports

• Councilmembers shared community updates and event announcements, including World of Foodies on September 17, a planned Carrollton Public Safety Fair, Metrocrest Services' new building construction, the back-to-school football game, and condolences for Deacon Philip Webb.