Carrollton City Council Regular Meeting and Worksession – September 23, 2025

The Carrollton City Council convened for a regular worksession and meeting on September 23, 2025, at City Hall. Mayor Pro Tem Christopher Axberg presided in the absence of Mayor Steve Babick. The council discussed establishing a stormwater drainage fund, reviewed crime and safety issues related to short-term rentals, received an update on a regional emergency exercise, approved a $1.8 million economic development incentive for Pennymac Loan Services, and presented several proclamations and awards.

Presentations and Proclamations

• Hispanic Heritage Month – Mayor Pro Tem Axberg read a proclamation recognizing September 15–October 15 as Hispanic Heritage Month, honoring contributions of Hispanic and Latino residents. Councilmembers Daisy Palomo and Andrew Palacios were acknowledged, and the Los Stangs folklorico dance group from Creekview High School performed.
• Mayor’s Spotlight Award – Presented to Buzzballs (represented by Vice President Sammy Nassery), recognizing its growth from a startup to over 1,200 employees and 630,000 square feet. The company now produces 40,000 cases per day.
• Live United Month – A proclamation for United Way of Denton County highlighted its impact on 54,000 residents annually. Christine Jones, Chief Development Officer, accepted.
• Emergency Preparedness Month – September proclaimed as Emergency Preparedness Month. Emergency management staff emphasized preparing emergency kits, family plans, and multiple warning methods.
• Life Saving Award – Public Works Manager Josh Cohron received a commendation for aiding a passenger with respiratory distress on American Airlines Flight 1290 on August 20, 2025, averting an emergency landing. Presented by Fire Chief Thompson.

Consent Calendar

The consent agenda included items 14–24 and 26, as amended:

• Approval of minutes from August 5 and August 19, 2025.
• Contracts: pet adoption trailer ($65,000 one-time), risk management software change order ($9,618.50 annually), street reconstruction ($4,244,054), collector street panel replacement (up to $6,000,000 over three years), brick and retaining wall repairs (up to $600,000 over three years), citywide sidewalk condition assessment ($597,700), Amazon Business renewal (up to $910,500 over three years).
• Ordinance designating number of police sergeant positions.
• Resolutions: nominating candidates for Denton Central Appraisal District board (Mike Hennefer and Ann Pomacole, amended), supporting individual representation for member cities on DART board with weighted voting (wording amended). Approved unanimously.

Public Comments & Testimony

Citizen Comment (Agenda Items 25 and 26)

• Item 25 (Pennymac incentive): A former councilmember spoke in opposition, arguing the $1.8 million grant lacks return on investment (no property tax increase, minimal sales tax), questioned the company’s history relative to the 2008 financial crisis, and suggested the property owner should provide incentives. A second speaker (Lisa Sutter) supported the incentive, noting past successful incentives like the Ranch 99 development and the value of 1,800 jobs.
• Item 26 (DART representation): Two speakers supported the resolution but urged proportional representation to prevent underrepresentation of Dallas. They emphasized fairness and regional equity, cautioning against diluting Dallas’s voice while still giving suburbs a seat.

Public Forum (Non-Agenda Items)

• Natalie Laflora requested that the city implement a compost program, citing environmental benefits and potential revenue from selling compost.
• Kavisha Shaw invited the council and residents to a Diwali celebration at BAPS Shri Swaminarayan Mandir in Irving on October 21.

Discussion Items

Stormwater Drainage Fund (Worksession Item 4)

• Diana Bond (Finance) and consultants from Freeze and Nichols presented the proposal to create an enterprise fund for stormwater management, funded by user fees. The city currently spends on stormwater from existing funds; the new fee would cover operations, maintenance (O&M), and capital improvements (CIP).
• Three service levels were presented for O&M and CIP. The Finance Committee recommended O&M Level 3 ($7 million/year, including proactive maintenance, additional crew, more street sweeping, pipe inspection, and channel maintenance) and CIP Level 2 (funding high-priority projects including a $24 million Woodlake Dam rebuild and nine other projects).
• Monthly residential fees would vary by impervious area: smallest properties $4 (10% of residents), median $7.25 (80% of residents), largest $11.40 (10% of residents). Commercial properties would pay $8.40 per equivalent residential unit (ERU) for the combined recommended service level. The average residential rate is $7.25/month.
• The council gave consensus on exempting religious institutions and school districts (state-allowed exemptions), approved the recommended service levels, and directed staff to begin advertisement for a public hearing on November 4, with ordinance adoption planned thereafter.

Short-Term Rentals: Crime, Trafficking, and Child Safety Zones (Worksession Item 5)

• City Attorney Meredith Land and criminologist Dr. Alex Del Carmen presented findings from a three-year analysis of short-term rentals (STRs) in Carrollton (81 total properties). Key data: 60% of STRs received code enforcement citations annually (vs. 10–15% for non-STRs); calls for service were 4–5 times higher for STRs; non-compliance rates reached 36% in zip code 75010; property and disturbance calls predominated among 488 total incidents.
• Dr. Del Carmen recommended enhanced background screening, mandatory sex offender registry checks, guest ID verification, targeted enforcement, human trafficking prevention programs, and potential zoning restrictions. The city attorney discussed child safety zone regulations and links between STRs and trafficking, citing national trends. No consensus was sought; the discussion was informational for future ordinance development.

Regional MetroX Emergency Response Exercise (Worksession Item 6)

• Emergency Management Coordinator Elliot Rip and Gabby from the Olsen Group outlined a full-scale drill on October 28–30 at McKinnish Sports Complex. The exercise simulates a complex coordinated terrorist attack during a large sporting event, testing interagency coordination across 70–80 agencies and 2,500 participants. Carrollton will host a simulated active shooter scenario at a fan zone site, involving SWAT teams (200+ participants), drones, EMS, and hospital partners. Volunteers are still needed, especially for patient roles.

Pennymac Loan Services Economic Development Incentive (Item 25, Separate Vote)

• The item was pulled from the consent agenda for individual discussion. The agreement authorizes a job creation grant of up to $1.8 million for Pennymac to relocate and consolidate operations, with a job creation target of 1,200 employees (expected total up to 1,800) at 5025 Plano Parkway. Funding is from the Economic Development Fund (part of the General Fund).
• Councilmember Fleming opposed, citing minimal tax revenue (no real property improvements, low business personal property tax, limited sales tax) and questioning the benefit to Carrollton given the location near city borders. Councilmember Carpenter supported, emphasizing the importance of filling a vacant building and attracting a financial services company to boost economic development. After debate, the resolution passed 6–1 (Fleming dissenting).

Key Outcomes

• Stormwater Fee: Consensus to exempt religious institutions and schools, adopt O&M Level 3 and CIP Level 2 service levels, and proceed with advertisement for a November 4 public hearing and subsequent ordinance adoption.
• Short-Term Rentals: Presentation received; council will continue considering regulatory changes in future meetings.
• Emergency Exercise: Staff will continue preparations; volunteers sought; drill scheduled for October 28–30.
• Pennymac Incentive: Approved 6–1 (Councilmember Fleming dissenting).
• Consent Agenda: Approved unanimously (items 14–24, 26 as amended).
• Proclamations and Awards: All presented and accepted.
• Council Reports: Various councilmembers reported attending community events, including MMC concert, Children’s Advocacy Center gala, Baylor Scott & White Urgent Care grand opening, United Way breakfast, and others. Upcoming events noted: Culture Fest (September 27), TML conference, and Hispanic Heritage Month celebrations. Councilmembers also recognized outgoing Parks Director Scott Whitaker for his service.