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The Richland Hills City Council held a regular meeting on April 13, 2026 at 5:30 PM at City Hall. The meeting included the acceptance of the FY 2025 audit report, a discussion on the street sales tax reauthorization ballot measure, public hearings on a replat and zoning change for a church property and a planned development for an ice cream production facility, approval of an emergency wastewater repair, and adoption of an accounts receivable write-off policy.
Daniel Hungerford of George Morgan Sneed presented the annual audit for the fiscal year ending September 30, 2025. The audit resulted in a clean opinion after significant cleanup. Key financial highlights: the general fund had $4,081,000 in unassigned fund balance (41% of expenditures). Revenues were $10,392,000, down $173,000 from the prior year, driven by a $104,000 decrease in sales tax. Expenditures were $9,122,000, an increase of $748,000, with $566,000 attributable to public safety personnel costs. The water and sewer fund had a positive net position of $3.7 million. Two material weaknesses were identified: bank reconciliations were not performed for the entire year, and cash collections were not deposited daily ($26,000 in checks and $5,000 in cash were found undeposited). Staff and the interim finance consultant reported that corrective action has been taken since November 2025. The council accepted the audit report (motion carried).
City staff provided factual information about the May 2, 2026 special election to reauthorize the street sales tax (3/8 cent), which generates approximately $1.5 million annually for street and sidewalk improvements. If not reauthorized, the tax would be removed and the city would lose that dedicated funding. Council discussed the importance of clear communication to voters.
The Richland Hills Christian Church requested a replat to subdivide the property, creating a separate residential lot for the parsonage. Three variances were needed: side yard setback (14 ft vs 15 ft), lot depth (92 ft vs 100 ft), and accessory structure setback (0.5 ft vs 5 ft). Council discussed spot zoning but staff stated the use is consistent with the comprehensive plan. No citizen opposition was received. The church representative confirmed they intend to retain ownership and use the property for rental income. Approved (motion carried).
This zoning change is tied to the replat and would allow the separate lot to be used for single-family residential. The church stated they may use it as a parish house again in the future. Approved (motion carried).
The applicant Anal Desai proposed a planned development with a base zoning of light commercial or mixed use to permit food processing and limited outdoor storage. The use is a small-scale frozen dessert production facility (wholesale only) for Milwaukee Joe’s Ice Cream. Council expressed concerns that the use does not align with the comprehensive plan’s vision for a pedestrian-oriented mixed-use corridor. The Planning and Zoning Commission recommended approval with mixed-use base zoning (4-1). Citizen Doug Noulton spoke in favor, while Athena Campbell opposed, wanting a more corridor-appropriate use. After discussion, the council voted to table the item to the April 27 regular meeting to allow staff to prepare a site plan with limited outdoor storage and to remove laundromat and warehouse from the list of permitted uses.
The council discussed moving the May 25, 2026 regular meeting to May 26, 2026 due to the Memorial Day holiday. No formal vote was taken; consensus was to make the change.
Approval of Minutes from the March 23, 2026 regular meeting was approved without discussion.
Kelly Morris (Public Works) presented an emergency sewer main repair on the 2800 block of Willow Park Street and Spruce Park Drive. Pipe bursting was used to replace 420 linear feet of clay tile pipe with HDPE. The unit-price contract with XL4 totaled an estimated $105,041.20 (including 10% contingency), funded from the operational sewer system repairs line. The emergency occurred on March 8, 2026. Approved (motion carried).
Staff presented a resolution to adopt a formal policy for writing off aged utility billing and municipal court accounts (totaling approximately $5.5 million). Write-offs would occur after defined inactivity periods (court: 3 years; utility: 12–24 months). The City Manager may approve amounts up to $5,000, notify council for amounts $5,001–$25,000, and require council approval for amounts over $25,000. The policy aims to remove uncollectible accounts from the balance sheet. Approved (motion carried).
On the matters before us. Help us to listen with open hearts and minds to seek common ground and to make decisions that promote the well-being and prosperity of all of our citizens. May the discussion be marked with respect, courtesy, and a shared commitment to the public good. We pray for our city staff, our emergency responders, and every resident who calls Richland Hills home. Bless this meeting and that let their work reflect the values of integrity and service. Amen. Under one and thank you. Okay. First item on the agenda is presentations and community interest items. First item is the fiscal year 2025 competitions and financial report. Jason, would you like to introduce this item? Yes, sir. Thank you, Mayor. Uh the fiscal year 25 audit has been finalized uh by George Morgan Sneed, and their representative Daniel Hungerford is here to provide you with their findings and answer your question. So Daniel, uh, if you'd like to introduce yourself and the team that worked on this year's audit um and present to council. Appreciate you. Good evening. Uh Daniel Hungerford with George Morgan and Sneed uh here to go over your September 30th, 2025 audit. Uh as we'll get into this was uh this was the most difficult Richland Hills audit we've we've had. Um it was uh um a lot to get into here. Um we'll start with the uh the auditors report which is on uh page one. It's a uh the same opinion you've been receiving. Uh it says that your financial statements are fairly stated in accordance with generally accepted accounting principles. There was a lot of cleanup that had to go into your books to get it to uh to be uh fairly stated, but uh we were able to uh to work through all that, so we are able to issue a uh a clean opinion. Uh the financial statements, the governmental financial statements start on page 19 and 20. That is your uh governmental funds balance sheet. The uh first column is the uh general fund. The uh general fund had 4 million 81,000 in uh unassigned fund balance. That's your uh your fund balance available for future years, uh and that's about 41% of your general fund expenditures for the year. So you have a pretty good uh fund balance rolling forward there in the general fund. Uh all of your your uh governmental funds had positive fund balance uh except the the link operations uh and the uh vehicle replacement. They had uh had some negative um fund balance at the end of the year. They will um probably be um re um fixed by the general fund in the the uh next year. Uh page 22 and 23 is your statement of revenues, expenses, and changes in fund balance for governmental funds. The general fund had uh 10 million three hundred and ninety-two thousand in revenues. It's uh that's down about a hundred and seventy-three thousand from the prior year with the largest decrease in sales tax. Now, sales tax is your is your largest revenue source, and for the whole city, you had 10 million three hundred and seventy-two thousand in sales tax,