Round Rock City Council Packet Briefing - August 25, 2026

This packet briefing was held on Tuesday, August 25, 2026, at 7:30 AM in the City Council Chambers to discuss items scheduled for the August 27, 2026 City Council meeting. Staff presented briefings on resolutions, ordinances, and financial policies. No votes were taken; the briefing served as preparation for the upcoming regular meeting.

Public Comments & Testimony

• Mr. Snyder addressed the Council during citizen communication. He did not speak on any agenda item but instead offered personal thanks to his mother, sister, and others, and shared a story about a friend who saved him. His comments were not related to city business or any agenda item.

Discussion Items

• G1 – Resolution for Engagement Letter with Herrera Law (PUCT Appeal): Staff presented a resolution authorizing an engagement letter with Herrera Law and Associates PLLC to represent the city in the district court appeal of the PUCT final order regarding the MUD rate case (Docket 48836). The letter covers the duration of the appeal. No questions were asked.
• G2 – Change Order for Public Safety Training Center Phase 2: Staff requested approval of a $923,988.25 change order with Adolfson & Peterson Construction. Drivers included regrading the EVOC track due to rain, repairing imperfections in the existing tilt wall and recoating the entire facility, and installing a master meter to track water usage for fire training. Councilmember Flores asked about the tilt wall repair cost; staff explained it was for normal imperfections and aesthetic improvement. No vote was taken.
• G3 – Resolution Adopting Financial Policies for FY 2026–2027: Staff recommended annual adoption of financial policies alongside the operating budget. A minor change reduces the Sports Center Fund capital replacement reserve from $3 million to $1 million to better align with perceived liability and provide flexibility. Councilmember Flores noted the redline change on page 11.
• G4 – Resolution Authorizing BCRUA Financing Agreement with TWDB: Staff presented the third of four phases of financing for the deep water intake project, authorizing $12.2 million in debt through the Texas Water Development Board (TWDB) SWIFT program. The funds are included in long-range planning and utility rate models. No questions were asked.
• G5 – Resolution for Real Estate Contract for Kenney Fort Boulevard Segment 5: Staff requested approval to purchase 8.085 acres from Avery Ranch Company Ltd. for $2.8 million to acquire right-of-way for the six-lane roadway extension from Old Settlers to County Road 112. Councilmember Ortega asked about the next phase (Segment 6); staff confirmed discussions are underway with the Nelson family for that parcel.
• G6 – Resolution Approving TEDC Action and Amending TCIP: Staff presented an amendment to the Transportation Capital Improvement Program to add $15.5 million from the Type B fund for right-of-way acquisition for Kenney Fort Segments 5 & 6 ($10 million additional, total $12 million) and Wyoming Springs extension ($5.5 million additional, total $7.5 million). Councilmember Flores asked if the amounts would be sufficient; staff stated the estimates should cover anticipated costs.
• H1 – Ordinance Amending Environmental Services Fees (First Reading): Staff proposed minor adjustments to the environmental lab fee schedule, including a $10 fee for transferring samples with improper headspace, changing the surcharge sampling frequency for commercial wastewater from twice a year to once a year, and removing an obsolete analysis. Councilmember Stevens asked about lab services for other municipalities; staff confirmed all surrounding cities and utilities can bring samples for a fee. Councilmember Flores asked how businesses are identified for surcharges; staff explained the distinction between pretreatment (industrial) and surcharge (restaurants, etc.) and that sampling is done annually.
• H2 – Ordinance Amending Water, Reuse, and Sewer Rates (First Reading): Staff presented a comprehensive rate study covering a three-year rate plan (FY27–FY29) for retail and wholesale customers. Key points: no change to the first tier of residential water rates (to avoid impacting low users); increases of approximately 5–6% per year for most customers; wholesale water rates increase 9.3–15.1% per year (varying by customer) and wastewater 4.8% per year; the fifth tier implemented in 2024 has reduced water usage in the highest tier. Councilmember Stevens asked about the August water usage chart and the cost of separate irrigation meters for businesses; staff explained meter costs and the benefits of separate meters for outdoor use. Councilmember Flores thanked staff for the thorough presentation.
• H3 & H4 – Public Hearings and Ordinances for FY2027 Budget and Tax Rate (First Reading): Staff presented the proposed $684.1 million total budget, including $199.4 million for the general fund, 52.5 new FTEs (48 for public safety, 4.5 for other funds), and a proposed property tax rate of 42.3 cents per $100 valuation—an increase of 3.8 cents (9.8%) above the no-new-revenue rate. The increase funds public safety additions (7 police officers, 15 firefighters, 2 civilian positions), operating costs for voter-approved bond projects (Fire Station 11, Athletic Performance Center), and debt service. The median home value is $370,288, with a median annual tax bill of $1,566. Single-family homes pay 18% of general fund revenues. Staff noted the public hearing will be held on August 27, with final adoption on September 10.
• H5 – Sixth Supplemental Ordinance for Utility Systems Revenue Financing (First Reading): Staff presented the issuance of $60 million in debt through the TWDB Clean Water Program to fund the city’s portion of the Brushy Creek Regional Wastewater Treatment Plant expansion. This is included in the utility rate model. Councilmember Stevens asked about bond ratings; staff confirmed the state program holds the bond rating.

Key Outcomes

• No formal votes were taken. All items are scheduled for first reading, public hearing, or action at the August 27, 2026 City Council meeting. Staff will return with final adoption of the budget and tax rate on September 10, 2026. The utility rate changes, if approved on first reading, will have a second reading at the September council meeting, with rates effective November 1, 2026.