Murphy City Council Meeting - August 19, 2025

The Murphy City Council met on August 19, 2025, at 6:00 PM. The meeting included public comments from residents regarding the proposed Murphy Veterans Tribute, a presentation on water and wastewater rate study updates, and several action items including approval of a specific use permit for an amusement arcade, a variance for a screening wall, and an expanded mowing contract.

Public Comments & Testimony

• Mary Mang (Vietnam era Air Force Veteran, board member Murphy Veterans Tribute) requested to be placed on the September 2nd council agenda to discuss an alternate site for the veterans tribute, noting that the city rescinded a previous verbal commitment for land in Central Park and that a $109,000 matching grant from Collin County Parks may be lost due to the location change.
• Mary Pat Elledge (Murphy Veterans Tribute) stated that the city's rescission of the Central Park site has lost three months of fundraising activities and urged the council to work together to find an agreeable site.
• Robert Kane (resident, Marine Corps Vietnam veteran) expressed opposition to the city's decision to withdraw land for the tribute, calling the alternative fire station location inadequate and dangerous. He questioned the lack of public notice and the city manager's statement that financial goals were not met, noting that the City of Murphy enjoys strong fiscal standing.
• Bobby Tillman (board member Murphy Veterans Tribute, Saxe resident) supported the tribute, recounting the city's past support for veteran events and urging the council to make the tribute a reality.

Presentation: Water and Wastewater Rate Study Update

• Chris Eckert (NewGen Strategies and Solutions) presented two rate scenarios (Scenario 1 and Scenario 3) for the council's consideration. Scenario 1 increases both fixed and variable charges; Scenario 3 holds the fixed charge constant and increases only the volumetric rate. The average customer uses 12,700 gallons of water and 7,100 gallons of sewage per month. Under current rates, the city would under-recover revenue by approximately $2.34 million next year; the proposed scenarios reduce that deficit to about $1.4 million by design, drawing down the healthy $12.6 million fund balance.
• Councilmember queried about the Muddy Creek wastewater treatment plant expansion and debt. City Manager Aretha Adams noted that Murphy does not have a board seat for wastewater decisions.
• A public commenter raised concerns about the accuracy of projected North Texas rates, water loss (20-30% over seven years, costing ratepayers an estimated $8.5 million), and the use of averages instead of medians in rate calculations. City staff acknowledged the water loss issue and noted a recently approved project to address it.
• Council consensus favored Scenario 3 (no increase in the fixed charge) to minimize impact on low-volume and fixed-income residents.

Discussion Items

• Consent Agenda: Approved unanimously.
• Fiscal Year 26 Proposed Tax Rate: Council approved a resolution adopting a proposed tax rate of 0.357514 per $100 valuation, setting the public hearing for September 16, 2025. The total proposed budget is $63 million, with the general fund at $21.2 million (a 4% increase from FY25).
• Specific Use Permit for Amusement Arcade (Pixel Speed Sim Racing): The council held a public hearing and approved an SUP for a simulated racing arcade at 222 East FM 544, Suite 206. The applicant described the business as a high-end sim racing center for ages 14 and up, with no food service, and noted it would be the first such venue in DFW. Planning and Zoning recommended approval 7-0. One opposition form was received, but two tenants in the same building submitted letters of support.
• Variance for Screening Wall at 112 South Maxwell Creek Road: The council approved a variance to Article 26 to allow a 3.5-foot masonry screening wall in the front yard to mitigate safety concerns from vehicle traffic on the realigned South Maxwell Creek Road. The applicant noted the wall would be lit and landscaped, and that the road alignment had previously been a concern during the Toll Brothers development.
• Specific Use Permit Amendment and Tree Variance for Baylor Scott & White: The council approved an amendment to the 2012 concept plan to add 23 parking spaces (net gain) and a variance to the tree preservation ordinance. The applicant will remove approximately 100 caliper inches of trees (300 negative credits) but will plant 11 new 4-inch caliper trees on site. Impervious coverage will be about 69%, below the 80% maximum. One adjacent resident expressed concern about drainage and tree placement. Planning and Zoning recommended approval 7-0.
• Mowing Contract for FY26: Council approved a $181,815 contract with PACE Turf Solutions for weekly mowing of medians, rights-of-way, cemeteries, and seven smaller parks. City staff will continue to maintain larger parks and the Timber Creek Nature Preserve. The contract is pay-per-service.

Key Outcomes

• Consent Agenda: Approved unanimously.
• Fiscal Year 26 Proposed Tax Rate: Approved (record vote 7-0). Public hearing set for September 16, 2025.
• Specific Use Permit – Amusement Arcade (Pixel Speed Sim Racing): Approved unanimously.
• Variance for Screening Wall (112 S. Maxwell Creek): Approved unanimously.
• Specific Use Permit Amendment – Baylor Scott & White (parking and tree variance): Approved unanimously.
• Mowing Contract – PACE Turf Solutions: Approved unanimously.
• Executive Session Actions (no substantive discussion): Council removed the current veterinary appointee from the Animal Shelter Advisory Committee and appointed Dr. Jim Mobius. Council also appointed several youth to the Youth Advisory Committee. Both actions approved unanimously.
• Future Agenda Items: Council requested an update on the McPray and McMillan trails and a staff update on National Night Out.