Mansfield City Council Special Meeting: Homestead Exemption Vote & Water Rate Discussion

The Mansfield City Council held a special meeting on June 29, 2026, from 8:00 AM to 9:17 AM. Mayor Michael Evans presided. Council members Todd Tonore, Tamera Bounds, Juan Fresquez, and Todd Simmons were present. Council members Brent Newsom (ill) and Jim Vaszauskas were absent. The main actions were the unanimous passage of a 20% homestead exemption and a work session providing direction on a new water rate structure.

Public Comments & Testimony

• Gary Cardinale (5 Velvet Court): Expressed support for increasing the homestead exemption as a positive first step, but argued the city has a "spending problem, not a revenue problem." He criticized the city's rising debt ($331M increase in general obligation over five years) and questioned major capital projects. He urged spending discipline before considering tax or utility rate increases.
• Mike Leyman (1202 Fairhaven Drive): Supported Mr. Cardinale's statements. He urged the council to fulfill prior commitments by increasing the homestead exemption to the full 20%. He suggested the council could achieve both a full 20% exemption and a modest property tax rate reduction.
• Non-Speaker Cards: Three citizens (Tonia Jackson, Jessica Ross, Melisa Perez) submitted cards expressing support for the homestead exemption increase.

Discussion Items & Key Outcomes

Note: The Council altered the agenda order to address the Homestead Exemption item before the scheduled Work Session on water rates.

1. Homestead Exemption Increase to 20% (Ordinance OR-2439-26)

• Presenter: Troy Lestina, Deputy City Manager/Chief Financial Officer, explained that action was required by June 30 to meet appraisal district deadlines.
• Discussion: Lestina reviewed updated property tax values. Total taxable value fell by $447 million (from $11.3B to $10.8B) since the prior week. He provided a history of the city's tax rate and exemption, compared the city to other DFW cities (average exemption ~12%), and detailed the financial impact: the current 16% exemption reduces taxable value by $1.2 billion and provides $7.5 million in tax relief. A 1% increase costs approximately $473,000 in revenue; a one-penny tax rate reduction costs $1.2 million.
• Vote: A motion by Mayor Pro Tem Tonore, seconded by Council Member Fresquez, to adopt a 20% Residential Homestead Property Tax Exemption passed unanimously (5-0).

2. Work Session: Proposed Water Rate Study/Structure

• Presenter: Adam Stark, Interim Executive Director of Public Works, presented. Joe Smolinski, City Manager, participated in discussion.
• Background: The current rate ordinance was adopted in 2012. Since then, only TRWD/TRA pass-through costs were passed on to customers, while all operational cost increases were absorbed by the city. The current structure is projected to fail debt service coverage requirements and reserve minimums without a substantive change. The city faces a $272 million, 10-year capital improvement plan.
• Scenarios:
  • Scenario 1 (Staff Preferred): New tiered rate structure with annual TRWD, TRA, and operational pass-throughs. Results in a modest $0.10 per thousand gallon increase while protecting the 66.7% of residential customers in the lowest two tiers.
  • Scenario 2: Maintains current structure with a one-time "catch-up" increase of $1.02 per thousand gallons, followed by only TRWD/TRA pass-throughs.
• Council Direction: Council members Bounds, Fresquez, and Simmons expressed support for the gradual, tiered approach. Council Member Simmons stressed the necessity of keeping up with infrastructure maintenance. The council unanimously directed staff to move forward with Scenario 1.

3. Work Session: Sewer Surcharge Program & Inspection Fees

• Proposal: Two programs to shift costs away from the general residential rate base onto the specific users generating the costs.
• Class Surcharge Program: The city pays $1.4 million annually in sewer surcharges to TRA but only recovers $230,000. Analysis shows 11 Significant Industrial Users (SIUs) are responsible for 84-95% of the high-strength waste costs. The proposed three-tier program would charge industrial and commercial customers (e.g., restaurants, grocery stores) the true cost of treating their high-strength sewage, while residential rates would remain unchanged.
• Debate & Outcome: There was unanimous consensus among the Council to recover these costs from the generators and relieve residential ratepayers. However, Council Member Tonore and Mayor Evans specifically requested a competitive analysis comparing Mansfield's proposed surcharges to those of neighboring cities (Grand Prairie, Midlothian, Arlington) to ensure the city remains competitive and does not drive away businesses. Final action on the surcharge program and the proposed inspection fees (grease traps, backflow devices) was deferred pending further staff analysis and data.

Summary of Key Outcomes

• Homestead Exemption: PASSED (5-0) increasing the residential exemption from 16% to 20%.
• Water Rate Structure: Council directed staff to implement Scenario 1 (new tiered structure with gradual annual increases).
• Sewer Surcharges & Fees: Council supported the principle of cost recovery but deferred a final vote on the Class Surcharge Program and Inspection Fees, requesting a competitive analysis of neighboring cities.
• Meeting Adjourned: 9:17 AM.