Richland Hills City Council Regular Meeting - June 22, 2026

The Richland Hills City Council held a regular meeting on June 22, 2026, starting with a work session at 5:30 PM and the regular session at 7:36 PM. The council discussed financial updates, IT infrastructure replacement, a five-year capital improvement plan, and various other items. Multiple resolutions were approved, and a citizen comment was heard.

Consent Calendar

• Approved minutes from the June 8, 2026 City Council Regular Meeting without discussion.

Public Comments & Testimony

• Bill Garrison (resident, 3616 Landy Lane) encouraged participation in the Richland Hills Parade Band for the U.S. Semiquincentennial and announced a meeting on June 27, 2026 at 9:30 AM at the City Marketplace to organize live music for the parade. Requested a vehicle/trailer volunteer and suggested combining the band with the city council entourage.

Work Session Discussions

• Financial Update (Item 2B): Finance staff reported that general fund revenues are tracking below budget, with sales tax about $1.5 million short of the $4.9 million projection. Year-end net revenue is projected at negative $1.1 million, offset by eliminating the strategic initiatives fund transfer. Fund balance is expected to end at about $3 million, with a 90-day reserve of $2.4 million, leaving $527,000 above policy minimum. Staff noted the same budget pressure will continue into FY2027 unless the de minimis tax rate is adjusted (potential $500,000 additional revenue). City financial advisor Marty Shu (Hilltop Securities) presented a "Bonds 101" overview, explaining general obligation bonds and certificates of obligation, and estimated the city has $2.5 million in debt capacity within the current I&S tax rate without a tax increase. A $5 million bond over two years would require a ~5.7 cent I&S rate increase.
• IT Infrastructure Replacement (Item 2C): Staff presented three options: a seven-year Meter managed infrastructure subscription ($43,763/year), a Fortinet network equipment purchase ($208,000 via TIPS contract), and Dell server/storage equipment ($388,451). The combined total for purchase options is about $597,000. Staff recommended purchasing Fortinet and Dell equipment using oil and gas fund reserves, with a reimbursement resolution to allow future debt proceeds to reimburse the general fund. This approach is cheaper over seven years than the Meter lease and avoids operational expense. Council discussed support, warranties, and remote management capabilities.
• Five-Year Capital Improvement Plan (Item 2D): Staff presented a draft project list with 45+ projects scored using a nine-criteria framework (public health, regulatory compliance, infrastructure condition, etc.). Top-ranked project: Cecil Drive reconstruction (design underway, bids in September). Other high priorities include TPO roof at The Link, Booth Callaway streetscape (with $2 million in potential federal funds), and Creek Trail Park (flooding damage, playground closures). Total tier-one projects estimated at $13.6 million. Available funding includes $2.5 million in debt capacity and $5.2 million in unspent 2023 bond proceeds and savings. Staff proposed a 10-year outlook with a five-year funded plan to be presented July 27, 2026.

Discussion Items (Regular Session)

• Permitting and Inspection Services Strategic Discussion (Item 8C): Staff reviewed the 10-year contract with Bureau Veritas (BV), which has a $100,000 annual cap but exceeded it in FY2024-25 ($117,000) due to new home builds. Revenues from permits were $109,000 that year. Staff identified issues with inspection oversight (setbacks, building heights not checked initially) and communication challenges. Three alternative providers were preliminarily evaluated: Atlas Municipal, Willdan, and Metro Code. Council directed staff to continue exploring alternatives, emphasizing the need for improved communication, local code compliance, and cost-effectiveness. Councilmember Skeeter shared a negative personal experience with BV. Staff will return with refined options.
• Major Project Updates (Item 8B):
  • Street Projects (6 Streets, 2023 CO bonds): Substantial completion reached; contractor finishing punch list. Key issue: sod replacement required rework due to inadequate watering. $1.5 million in savings realized from not needing full underground utility replacement on all segments. Cecil Drive next project.
  • Park Restrooms: Kate Baker restroom foundation poured, block delivered, masonry underway; expected completion by August 2026. Rosebud Park restroom delayed; Wi-Fi tower installed, transformer upgraded; expected completion by October 2026.
  • Street Sweeping: Staff reported limited effectiveness, dust, and resident complaints. Council expressed dissatisfaction; staff will explore other vendors or consider discontinuing the service.

Key Outcomes

• Consent Agenda: Approved unanimously.
• Resolution 7A (CIP Framework): Approved unanimously.
• Resolution 7B (Meter Network Subscription): Motion to table indefinitely passed unanimously.
• Resolution 7C (Fortinet Network Equipment, not to exceed $210,000): Approved 4-1 (Councilmember Skeeter dissented). Actual quote $208,000; funding from oil and gas fund reserves.
• Resolution 7D (Reimbursement Resolution for future tax notes): Approved unanimously.
• Resolution 7E (Dell Servers and Equipment): Approved unanimously, with amendment to cap spending at $388,451.74 (actual quote).
• Council Comments: Pro Tem Witt read community interest items including summer programs, events, and the Red, White & You parade on July 4, 2026.
• Meeting adjourned at 8:40 PM.