City Council Packet Briefing – August 12, 2025

The Round Rock City Council held a packet briefing on Tuesday, August 12, 2025, at 7:30 AM in the City Council Chambers. The meeting, called to order by Mayor Craig Morgan, served as a preparatory session for the upcoming City Council meeting scheduled for August 14, 2025. The council received staff briefings, discussed agenda items, and heard a quarterly update from the Round Rock Chamber of Commerce. No public comments were made. The meeting adjourned after the budget work session discussion.

Consent Calendar

• H3 – Pump Replacement at Wastewater Plant: Council discussed a $104,000 pump purchase for the regional wastewater system. The cost is shared among the four cities (Austin, Cedar Park, Leander, Round Rock), with Round Rock paying approximately 60% ($62,400). Mayor Pro Tem Stevens asked for clarification that it was a spare pump. Councilmember Ortega inquired about cost sharing; staff confirmed the allocation based on ownership capacity.
• H4 – Investment Advisory Services Renewal: Councilmember Fleming asked about the frequency of competitive bidding for investment advisory services. Staff explained that state law requires a maximum two-year contract term, and the current renewal with Valley View is the second and final renewal before an open bid process.

Public Comments & Testimony

• No members of the public spoke.

Discussion Items

• I1 – Fire Station Land Purchase from Seton: The fire chief presented the purchase of 2.45 acres at Gattis Parkway and University Blvd for the third and final fire station funded by the 2023 bond election. The station will serve northeast Round Rock. No questions or opposition.
• I2/I3 – Alcohol Variance Requests for Two Restaurants (Tejis and Lunas Tacos): City Attorney Stephanie provided background on the ordinance prohibiting alcohol sales within 300 feet of a school. The property in question (split into two businesses) is 74.3 feet from Round Rock High School when measured property line to property line (current state law). The council has authority to grant a variance. Mayor Morgan expressed support, citing undue hardship and noting that the previous business operated under old measurement rules. Councilmember Lee asked if the permits are for beer/wine (staff will confirm by Thursday). Councilmember Montgomery asked about complaints; none reported. The council appeared inclined to approve the variance.
• I4/I5 – Old Settlers Park Athletic Performance Center (APC) and PBK Change Order: Parks Director Chad presented the APC design, including a four-field synthetic turf area, an airnasium, and a track. A change order of just under $800,000 for PBK was discussed, reflecting enhancements to build everything now rather than in phases. Councilmember Montgomery asked about security cameras; Chad confirmed cameras will be installed with IT and Parks coordination. The project remains on schedule for a May 2027 opening.
• I6 – Maximum Property Tax Rate for 2025 and Public Hearing Date: Kevin presented the proposed tax rate of 37.2 cents per $100 valuation, a 2.4 cent increase over the no-new-revenue rate. The increase funds 10 new police officers, 6 new firefighters, and debt service on voter-approved 2023 bonds. Mayor Morgan explained the impact as $7.88/month ($95/year) for a median home. Councilmember Fleming clarified that the voter-approved bond debt portion (1.5 cents) was already communicated to voters. No opposition. The public hearing is set for August 28, 2025.
• I7 – Quarterly Financial and Investment Report: Kevin noted the third quarter report will be presented in full on Thursday. No questions.
• I8 – Encore Reuse Water System Electrical Extension: Michael presented a $389,000 agreement with Encore for a second electrical feed to the reuse water system to improve resiliency. The cost is shared (60% Round Rock). No opposition.
• I9/I10 – Brushy Creek MUD and Fern Bluff MUD Annual Budgets: Michael explained the budgets for two sub-regional wastewater customers. Total budgets are slightly decreasing (Brushy Creek from $1.058M to $1.042M) due to growth allocation. Approved by council as part of consent on Thursday.
• I11 – AECOM Floodplain Analysis for Wastewater Plant: Michael presented a $51,000 supplemental contract to study 100-year floodplain protection required by TCEQ permit. The analysis will determine whether a berm or wall is needed. Councilmember Ortega asked about potential impacts on nearby neighborhoods; staff assured modeling to avoid adverse effects. Councilmember Montgomery noted encroachment on some properties under Atlas 14 data.
• I12 – Stone Oak Standpipe Demolition and Inline Pump Contract: Michael presented a $1.9 million contract with TacNEC LLC to demolish an unused standpipe and install an inline pump for emergency water supply. The tank is no longer needed due to BCRUA water. Mayor Pro Tem Stevens asked about coordination with nearby homes and a school; staff committed to robust public outreach.
• I13 – SPJST Property Purchase for Public Works Complex: Michael presented a $1.4 million purchase of an almost 3-acre parcel to complete the city's public works complex. The property includes an old house that will be used as a construction trailer. Council expressed satisfaction at finally acquiring this parcel.
• I14 – Wholesale Water Agreement Amendment with Georgetown (Liberty Hill): Michael presented a five-year agreement adding 250,000 gallons per day (to 3.25 MGD) to supply Liberty Hill via Georgetown. Staff showed charts demonstrating ample treatment capacity (56 MGD capacity vs. 35 MGD peak). The agreement helps pay down debt. Mayor Pro Tem Stevens raised concerns about Liberty Hill's growth and whether they will be ready by the 2030 termination; staff confirmed Liberty Hill is planning a direct potable reuse plant but acknowledged potential need for a one-year extension. Council was generally supportive.
• I15 – Street Maintenance Program Engineering for Smyers Lane and Matson Ranch: Michael presented a $300,000 engineering and design contract for full-depth repairs on two road segments. Mayor Pro Tem Stevens requested adding pedestrian safety improvements on Smyers Lane (sidewalk, lighting) due to increased foot traffic; staff agreed to evaluate.
• I16 – Deepwood Drive Extension Engineering Contract: Michael presented an $831,000 engineering contract with Half Associates for a 4-lane divided roadway extension from 620 to Sandbass, including a shared use path and trail connections. A traffic circle at Sandbass is being considered. No opposition.
• I17 – North Mays Gap Parcel Real Estate Contract: Michael presented a $133,000 purchase of one of the remaining parcels to complete the North Mays gap project. Council approved.
• J1 – Ethics Ordinance Amendment: City Attorney Stephanie presented amendments to the ethics ordinance, primarily adding an initial review by the city attorney or independent ethics attorney to screen frivolous complaints. The ethics commission can impose fines up to $500 and attorney's fees for frivolous complaints. Councilmember Fleming and Mayor Pro Tem Stevens supported the clarity. No opposition.
• K1 – Appointments to Boards and Commissions: Mayor Morgan reported that the subcommittee (Mayor Pro Tem Stevens, Councilmembers Ortega and Flores) reviewed applications. The roster includes 14 reappointments and 6 new appointments. Councilmember Ly praised the streamlined process. Mayor clarified term limit rules for unexpired terms.
• K2 – Reappointment to Local Rules Assistance Committee: City Manager confirmed the reappointment of Joanne Land through 2028. Approved.
• E1 – Round Rock Chamber of Commerce Quarterly Update: Chamber President Jordan presented highlights: 116 prospect leads (goal 120), 45 responses, 8 site visits, 32 active projects, 1 announced expansion (SAB Data Centers – 430,000 sq ft, 54 MW). Workforce programs: 62 teachers in externships, 40+ businesses. Chamber membership at 925 (up from 870), 170 new members. Entrepreneurship: 2nd annual StartUp Day with 200 attendees. International delegations from Bosnia and Argentina. Upcoming events: Power Lunch with Senator Ted Cruz, State of the City in December. Mayor expressed concern about legislative threats (sales tax bill) and asked for engagement with state representatives. No opposition.
• E2 – Budget Work Session Discussion: Kevin presented final taxable value of $26.7 billion (5.5% increase), new value $140 million yielding $2 million in new property tax revenue. The proposed rate of 37.2 cents is 2.4 cents above no-new-revenue, with 1.5 cents for voter-approved debt and 0.9 cents for public safety. Compliance with state law was confirmed (taxpayer websites, newspaper notice). Council members had no additional questions.

Key Outcomes

• Tax Rate and Public Hearing: Council will set the maximum proposed property tax rate of 37.2 cents at the August 14 meeting and schedule a public hearing for August 28, 2025.
• Alcohol Variance: Council is expected to approve variances for Tejis and Lunas Tacos at the August 14 meeting, subject to confirmation of permit type.
• Contracts and Purchases: The following items are recommended for approval on August 14: PBK change order (~$800,000), Encore agreement ($389,000), Brushy Creek and Fern Bluff MUD budgets, AECOM supplement ($51,000), TacNEC contract ($1.9 million), SPJST property ($1.4 million), Georgetown water agreement amendment, street maintenance engineering ($300,000), Deepwood Drive engineering ($831,000), North Mays gap parcel ($133,000), ethics ordinance amendment, board appointments, and the Chamber update was received as information.