City Council Packet Briefing - July 7, 2026

The Round Rock City Council met on July 7, 2026, at 7:30 AM in a packet briefing session to review and discuss items on the agenda for the upcoming July 9, 2026, City Council meeting. All council members were present. The meeting included a presentation on the Long-Range Financial Plan and staff briefings on multiple items including the CDBG Action Plan, employee benefits consultant, public safety training center furniture, vehicle upfitting, road projects, water supply agreements, a PUD amendment, and master planning. No citizen communication was received.

Discussion Items

• Community Development Block Grant (CDBG) Action Plan: Staff presented the proposed FY2027 CDBG budget of $641,705, a decrease of about $30,000 from the previous year. Of this, $96,255 is allocated for social services, $128,341 for administration, and $417,109 for projects. Staff recommended $30,000 to the Round Rock Area Serving Center for food pantry, $30,000 for housing assistance, $20,000 to Williamson Burnett County Meals on Wheels, and $16,255 to CASA. The city also contributes an additional $250,000 from the general fund. For projects, staff proposed using the budget for home repairs (15 applicants, 5 qualified) and listed alternative projects: shade structures at Green Hill Park and sidewalk gap installation downtown. Councilmember Flores asked about the home repair program's ability to use all funds, and staff confirmed. Councilmember Ortega asked about following up on the HUD reduction reason. Staff indicated they would press HUD for an answer.

• Employee Benefits Consultant – Gallagher Benefit Services: Tyler presented a five-year contract with Gallagher, selected through an RFP process with 10 vendors. The contract is expected to save $110,000 over five years compared to the current consultant. Gallagher will provide strategic, actuarial, and compliance support for the city's self-funded health plan ($24.7 million budget, 2,400 covered lives). Councilmember Fleming asked about the consultant's role in managing self-funded risk, and staff confirmed they will help with actuarial projections. Councilmember Flores clarified that the savings are from consultant fees, and additional savings may come from plan reviews.

• Public Safety Training Center Furniture – SKG Austin: Corey presented a one-time purchase order for furniture and installation for the Phase 2 expansion (7,000 sq ft main building, 5,000 sq ft classroom). Completion target is March 18, 2027. Councilmember Ortega asked about the selection process; staff noted they used an Omni cooperative and prior good experience with SKG.

• Vehicle Upfitting – Cap Fleet Upfitters LLC: A contract for upfitting parts and labor for police, fire, and other fleet vehicles not handleable in-house. The not-to-exceed amount is $1 million, contract expires March 29, 2029. Councilmember Stevens asked about the scope, and staff explained it covers more complex upfitting (e.g., light bars, strobes) and parts purchase.

• Wyoming Springs Project Change Order #2 – Capital Excavation: Michael presented a $94,000 change order for landscaping, traffic signals, guardrail, tree wells, etc. The project is nearing completion in August 2026. The change order includes 135 additional calendar days. Councilmember Ortega asked about speed limit and school opening; staff will provide speed limit details on July 9. Councilmember Stevens expressed concern about opening before school, but staff noted signals and Encore meters are needed.

• Chisholm Trail South Project – Supplemental Contract #6 with Freeze and Nichols: $221,000 for engineering to add a pedestrian sidewalk across Brushy Creek on the west side of the bridge. Construction will be bid separately after January 2027 to avoid disrupting holiday traffic. Councilmember Stevens thanked staff for listening to public input on pedestrian access. The Mayor cautioned against closing the road again after opening, given business impacts.

• Wholesale Water Supply Amendment – Blossom Mobile Home Park: An amendment to increase connections from 231 to 234 for the mobile home park in the county/ETJ. Staff confirmed capacity exists and impact fees will be paid.

• Williamson County Regional Raw Water Line Financing: Authorization for the Brazos River Authority to issue bonds for pump improvements and rehab on the 48-inch pipeline from Lake Stillhouse Hollow to Lake Georgetown. Total project cost ~$70 million, with Round Rock's share at 28% (~$19.6 million). The project will increase pumping capacity from 40 to 56 million gallons per day. Councilmember Flores asked about the existing pipeline age (circa 2000) and scope.

• Water/Wastewater/Reuse Master Plan Update – CDM Smith: $547,000 contract for update of master plan (every 3-4 years). The plan will inform 10-year CIP and ultimate CIP, and help adjust impact fees. Staff noted it is critical for staying ahead of growth.

• PUD Amendment #5 – The District: Staff presented a major amendment to PUD 129 (The District) to allow surface parking along Greenlawn Boulevard, eliminate a maximum setback, and increase setbacks on internal streets. No changes to land use, height, or density. The developer is responding to market conditions (office market collapse, retailer need for visibility and parking). A food and beverage plaza and retail are planned, with buildings oriented inward around a pedestrian paseo. Staff worked with developer on building design standards for the Greenlawn frontage to avoid blank walls. The Planning and Zoning Commission voted unanimously to recommend approval on June 3, 2026. Councilmember Fleming asked about setbacks and parking garages; staff clarified that parking garages are still planned for multifamily and future phases, but not for this retail phase. Councilmember Flores asked about signage; staff noted no changes to signage allowances. Councilmember Stevens noted the shared use pathway along Greenlawn. Councilmember Flores expressed support for the change, comparing it to the Domain.

• Long-Range Financial Plan Presentation: Kevin presented a high-level overview of the city's long-range financial planning for FY2027-2031. Key assumptions: 3% annual population growth, moderate economic growth, stable but elevated inflation (CPI 4.2% in May 2026), property value moderation (median home value down 6% to $378,000), sales tax growth at 3% (conservative). General fund revenues projected to grow $37.1 million over five years. Sales tax remains below 45% cap, sliding to 38% by 2031. Property tax MO rate increasing at 3.5% cap to fund bond projects and public safety. New property tax revenue from ~$451 million in new value for 2027. Expenses include $6 million base salary increase ($3.9 million for police/fire), $1.3 million health insurance increase, and operating costs for new facilities (Fire Station 11, Athletic Performance Center, etc.). The general fund is balanced for FY2027, but a gap appears in later years, which may be filled by future bond projects. Councilmember Flores asked about the salary increase breakdown and noted that new growth does not cover police and fire raises. He also questioned the amount saved by using sales tax for one-time projects (general self-finance) instead of bonds; staff estimated that amount is significant and can be provided later.

Key Outcomes

• No formal votes were taken at the packet briefing. All items discussed are scheduled for consideration and action at the July 9, 2026, City Council meeting.
• The council directed staff to provide additional information on the speed limit for Wyoming Springs Road and the cumulative savings from using general self-finance for one-time projects.
• Staff will continue to press HUD for an explanation of the CDBG grant reduction.
• The PUD amendment will be presented for a public hearing and vote on July 9, with the developer's presentation.
• The Long-Range Financial Plan will be further detailed at the July 23 budget workshop.