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Record of Proceedings

Carrollton City Council Sept 9, 2025 Meeting: Budget, Tax Rate, Zoning Items

City Council — Tuesday, September 9, 2025
BodyCarrollton, Texas
SessionCity Council
DateTuesday, September 9, 2025
StatusFILED
Video Record
0:00 / 4:19:36

Original source
Transcript — VerbatimClick a timed line to jump · ⧉ to share it

Speaker numbers apply only to this recording.

Unassigned speaker

0:17

Okay,

Speaker 1

0:18

welcome, welcome to all our deficit tonight.

0:22

We will uh start our work session.

0:24

Uh we'll go through the consent agenda items first, and then we have a few work session items and the number of public hearing.

0:31

Uh so first item is number 12.

0:33

Consider authorizing the city manager to approve a contract for the purchase of two HBAC air handling units from trains through an interlocal agreement with five board purchasing co-op and not not to exceed 59,273 for city hall.

0:48

Last two of our seven air handling units questions moving on number thirteen, consider authorizing the city manager to approve a contract for the energy management system libraries for the city hall HVAC system from China Electric through an interlocal agreement with TIPS uh purchasing co-op in an amount not to exceed 122,415 related to the fire questions number 14.

1:18

Consider ordinance of the city of City Council of the City of Carrollton amending Article 3 chapter 30 um city council by adding a new section 30.2 um to be entitled public meeting rules of decorum,

Unassigned speaker

1:32

a

Speaker 1

1:32

new section 30.03 to be um entitled citizen participation during council meetings and a new section 30.04 to be entitled failure to follow rules of decorum or disruption of public meeting to the code of ordinances of the city of Carrollton.

1:48

This is um at your place.

1:50

I think there was a minor typo.

1:52

Um so as we make the uh agenda uh motion on this or the consent, just uh make them uh for this item as stipulated.

2:01

Um as you recall, um this is something that's been uh briefly discussed, but we had a um

Unassigned speaker

2:07

uh

Speaker 1

2:08

Capel recently changed there um or adopted a similar um ordinance and um there's uh there's been a group that goes around city to city to city doing podcasts and creating a bit of a mockery of these uh city councils.

2:23

So this would be a vehicle to ensure that if that does happen, there's a warning mechanism for those types.

2:30

And um the the group that does that uh is pretty just you two city council meeting in Skits, and you'll see um some of the shenanigans that are played.

2:39

So that's uh what this is about.

2:42

Any questions?

Unassigned speaker

2:44

Okay,

Speaker 1

2:46

uh number uh 15.

2:48

Consider an ordinance amending chapter 31, the comprehensive fee schedule effective October 1, 2025.

2:57

Most of that's uh all that's been covered,

Unassigned speaker

3:01

and

Speaker 1

3:01

it's rolled into the budget.

Unassigned speaker

3:03

Uh

Speaker 1

3:03

number 16, consider a resolution of the city council and city of Carrollton, uh approving a negotiated settlement between the Atmos City Steering Committee and Atmos Energy Corp mid Text Division regarding uh Atmos's 2025 rate review mechanism filing, declaring existing rates to be unreasonable, adopting tariffs that reflect rate adjustments

Unassigned speaker

3:26

uh

Speaker 1

3:26

consistent with the negotiated settlement, finding the rates to be set by the attached settlement tariffs to be just and reasonable and in the public interest, approving an attached establishment or establishing a benchmark for the pensions and retiree medical benefits requiring Atmas to reimburse ACSC's reasonable rate making expenses, determined that this resolution was passed in accordance with the requirements of the Texas Open Meetings Act, adopting a savings clause, declaring an effective date, requiring delivery of this resolution to Atmos and the ACSC's legal counsel and providing an effective date.

4:03

Any questions for Meredith?

Speaker 2

4:06

Uh I have a couple.

4:08

What is RRM?

4:09

Is that renewable regulatory

Speaker 3

4:12

rate?

4:13

RRM is rate review mechanism.

4:16

Yeah.

Speaker 2

4:17

Who represents us?

4:18

I mean Carrollton on the board.

Speaker 3

4:20

So we're one the it's not the member on the board.

4:23

We have an attorney, Jeffrey Gay.

4:25

He's with um Lloyd Gosling down in Austin, and he represents we're one of 2325 cities, and it keeps our yearly expenditure pretty low because there's so many of us.

4:38

And he negotiates on behalf of all the cities to reduce it every time they file a rate, and it saves the city not just in legal fees, but having to do the appearances and stuff down in

Speaker 2

4:50

how often do they meet the the public

Speaker 3

4:54

utility commission?

Speaker 2

4:55

Yeah, well, actually the ACSC.

Unassigned speaker

4:58

Oh, they meet on a quarterly basis.

Speaker 3

5:00

Quarterly basis.

5:01

Yeah.

5:02

We do meetings by Zoom.

Unassigned speaker

5:04

So

Speaker 2

5:04

I see that our residential rate is what increasing what seven point I mean seven dollars and eighty-three cents on a monthly basis.

Unassigned speaker

5:15

And

Speaker 2

5:15

then I guess commercial, what's it?

5:17

Um six point five six point five six percent overall.

Speaker 4

5:24

Yeah.

Speaker 2

5:25

Seemed like I remember a couple of years back, then they came to the council.

5:29

I think we had to do a the uh rate reduction as well.

5:33

Exactly.

Speaker 1

5:34

This is an annual cycle.

Discussion Breakdown — Share of Meeting
Zoning And Land Use█████████████████17%
Engineering And Infrastructure███████████████15%
Procedural█████████████13%
Budget Equity Analysis███████████11%
Public Engagement██████████10%
Economic Development███████7%
Parking Management██████6%
Community Engagement██████6%
Water And Wastewater Management███3%
Summary of Proceedings

Carrollton City Council Regular Worksession & Meeting: September 9, 2025

The Carrollton City Council met on Tuesday, September 9, 2025, for a combined Worksession and Regular Meeting. The worksession included briefings on the IH-35E Phase 2 construction project, the Lower Dudley Branch drainage study, and the Fiscal Year 2026 Proposed Budget. The regular meeting featured presentations, public hearings on the budget and tax rate, and votes on zoning cases. The Council adopted the FY 2025-2026 operating budget of $325.9 million and a total tax rate of $0.5375 per $100 valuation. While the tax rate was reduced for the 12th consecutive year, the total property tax levy increased by 4.45% over the previous year due to rising property values.

Presentations

  • National Service Dog Month: The Council proclaimed September as National Service Dog Month in recognition of organizations like Canine Companions for Independence. Lori-Ann Cash of the Lone Star Chapter spoke and introduced Strudel, a 12-week-old service dog in training.
  • Library Card Sign-Up Month: The Council declared September as Library Card Sign-Up Month. Library Director Jonathan Scheu reported second-quarter statistics including 81,399 checkouts and 11,235 program participants. A promotion for new and existing cardholders runs through September 30.
  • National Payroll Week: The Council recognized National Payroll Week, honoring payroll professionals.

Public Comments & Testimony

  • Item 14 (Decorum Ordinance): Former Councilmember Adam Poulter spoke against codifying the public forum at the end of the meeting, calling it an accessibility barrier. He requested the Council table the item for more discussion.
  • Item 20 (Indoor Tennis Club): Multiple speakers, including representatives from the USTA and Carrollton Tennis Association, expressed strong support for the private indoor tennis facility, citing a need for indoor courts. Michael Pouncey, the project geologist, testified that Phase I and II environmental site assessments found no contamination on the property. Mike Boos, a neighbor and licensed professional geoscientist, withdrew his initial objection after reviewing the clean results and receiving a commitment from the applicant to address drainage.
  • Item 21 (Carrollton Event Center): Several members of the public spoke in favor of the event center, including clients, vendors, and the owner of a neighboring property (2121 N. Josey Lane). No members of the public spoke in opposition, but a letter from the owner of 2125 N. Josey Lane opposing the use was noted.

Discussion Items

  • IH-35E Phase 2 Project Briefing: TxDOT and One Star Constructors provided a project update. The 6.39-mile project from I-635 to the Denton County line is adding a lane in each direction. The Luna Road bridge deck was completed on September 6, with partial opening expected by end of September. The project is behind schedule but is accelerating. TxDOT confirmed parking arrangements for a November event would not be impacted.
  • Lower Dudley Branch Study Results: HDR Engineering presented findings on mitigating flooding in the Frankford Road area and at the Eisenhower Street bridge. Recommendations included a Frankford Road berm ($1.01M) and a flood wall ($359K). The Eisenhower bridge replacement ($3.8M) is not funded. The proposed Fire Station 6 site was confirmed to be outside the 100-year floodplain in all modeling.
  • Fiscal Year 2026 Proposed Budget: Finance Director Melissa Everett reviewed the proposed $325.9 million operating budget which includes a 2.26% market raise and 1.25% one-time payment for employees, $133.4 million in capital spending, and a 12th year of tax rate cuts.

Consent Calendar

  • The Council approved the Consent Agenda (Items 12-13, 15-18) via a single motion, which included: HVAC contracts for City Hall (Trane air handlers, $509,273 and Schneider Electric controls, $122,415); the Comprehensive Fee Schedule amendment; the negotiated Atmos Energy rate settlement (average residential increase of $7.83/month, 9.27%); the redemption of $1,000,000 in 2014 bonds (net savings of $193,875); and a development plan for 1430 S. Broadway.

Key Outcomes

  • Public Meeting Decorum Ordinance (Item 14): The Council approved the ordinance adding decorum rules and a progressive enforcement policy to the City Code. Councilmember Axberg pulled the item for individual consideration. The motion, which passed unanimously, included an amendment sponsored by Councilmembers Palacios and Axberg to strike language requiring the public forum to be held at the end of the meeting, preserving the Mayor’s discretion.
  • FY 2025-2026 Budget Adoption (Item 22): The Council adopted the operating and capital budget for the fiscal year beginning October 1, 2025. 6-1 vote (Fleming dissenting).
  • Tax Rate Adoption (Item 23): The Council adopted the property tax rate of $0.5375 per $100 valuation (M&O: $0.387652, Debt Service: $0.149848). The Mayor stated this is the 12th consecutive year the rate has been reduced. The motion, which passed 6-1 (Fleming dissenting), required state-mandated language stating the rate effectively represents a 4.45% increase in the total levy.
  • Property Tax Increase Ratification (Item 24): The Council ratified the property tax increase reflected in the budget. 6-1 vote (Fleming dissenting).
  • Carrollton Indoor Tennis Club (Item 20): The Council approved a Planned Development District for 2763 E. Trinity Mills Road. The 46,800-square-foot indoor tennis center exceeds standard lot coverage limits. Since the Planning & Zoning Commission previously denied the request, a supermajority vote was required, and the motion passed unanimously.
  • Carrollton Event Center (Item 21): The Council denied a Special Use Permit for an event center at 2129 N. Josey Lane. A motion by Councilmember Palomo to approve the permit with modified hours of operation failed by a vote of 3-4, citing land use concerns associated with shared parking capacity (SUP 270).
  • Public Forum (Non-Agenda Items): No speakers attended the final public forum.

Meeting Transcript

Okay, welcome, welcome to all our deficit tonight. We will uh start our work session. Uh we'll go through the consent agenda items first, and then we have a few work session items and the number of public hearing. Uh so first item is number 12. Consider authorizing the city manager to approve a contract for the purchase of two HBAC air handling units from trains through an interlocal agreement with five board purchasing co-op and not not to exceed 59,273 for city hall. Last two of our seven air handling units questions moving on number thirteen, consider authorizing the city manager to approve a contract for the energy management system libraries for the city hall HVAC system from China Electric through an interlocal agreement with TIPS uh purchasing co-op in an amount not to exceed 122,415 related to the fire questions number 14. Consider ordinance of the city of City Council of the City of Carrollton amending Article 3 chapter 30 um city council by adding a new section 30.2 um to be entitled public meeting rules of decorum, a new section 30.03 to be um entitled citizen participation during council meetings and a new section 30.04 to be entitled failure to follow rules of decorum or disruption of public meeting to the code of ordinances of the city of Carrollton. This is um at your place. I think there was a minor typo. Um so as we make the uh agenda uh motion on this or the consent, just uh make them uh for this item as stipulated. Um as you recall, um this is something that's been uh briefly discussed, but we had a um uh Capel recently changed there um or adopted a similar um ordinance and um there's uh there's been a group that goes around city to city to city doing podcasts and creating a bit of a mockery of these uh city councils. So this would be a vehicle to ensure that if that does happen, there's a warning mechanism for those types. And um the the group that does that uh is pretty just you two city council meeting in Skits, and you'll see um some of the shenanigans that are played. So that's uh what this is about. Any questions? Okay, uh number uh 15. Consider an ordinance amending chapter 31, the comprehensive fee schedule effective October 1, 2025. Most of that's uh all that's been covered, and it's rolled into the budget. Uh number 16, consider a resolution of the city council and city of Carrollton, uh approving a negotiated settlement between the Atmos City Steering Committee and Atmos Energy Corp mid Text Division regarding uh Atmos's 2025 rate review mechanism filing, declaring existing rates to be unreasonable, adopting tariffs that reflect rate adjustments uh consistent with the negotiated settlement, finding the rates to be set by the attached settlement tariffs to be just and reasonable and in the public interest, approving an attached establishment or establishing a benchmark for the pensions and retiree medical benefits requiring Atmas to reimburse ACSC's reasonable rate making expenses, determined that this resolution was passed in accordance with the requirements of the Texas Open Meetings Act, adopting a savings clause, declaring an effective date, requiring delivery of this resolution to Atmos and the ACSC's legal counsel and providing an effective date. Any questions for Meredith? Uh I have a couple. What is RRM? Is that renewable regulatory rate? RRM is rate review mechanism. Yeah. Who represents us? I mean Carrollton on the board. So we're one the it's not the member on the board. We have an attorney, Jeffrey Gay. He's with um Lloyd Gosling down in Austin, and he represents we're one of 2325 cities, and it keeps our yearly expenditure pretty low because there's so many of us. And he negotiates on behalf of all the cities to reduce it every time they file a rate, and it saves the city not just in legal fees, but having to do the appearances and stuff down in how often do they meet the the public utility commission? Yeah, well, actually the ACSC. Oh, they meet on a quarterly basis. Quarterly basis. Yeah. We do meetings by Zoom.

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