Watauga City Council Regular Meeting - August 10, 2026

The Watauga City Council met in regular session on Monday, August 10, 2026, at City Hall Council Chamber, 7105 Whitley Road, Watauga, Texas. The agenda was posted for a 6:30 p.m. start, and the transcript records the meeting being called to order at 6:51 p.m. Mayor Art Minor presided; one council member (Place 2) was absent without notice, and the council noted that it did not have a full council for the supermajority vote required later on the specific use permit. The meeting opened with an invocation by Pastor Dennis Hester of First Baptist Church of Watauga and the pledges of allegiance, and adjourned at 8:29 p.m.

Presentations & Awards

• Employee of the Month for August: Janice Lee (also referred to as Janice Lynch in the transcript), janitorial service technician in Public Works, was honored in absentia for going above and beyond to keep facilities clean, welcoming, and safe.
• Service awards were presented to library employees: Paula Kirpsell (5 years), Pam Baer (5 years), Mary Carrar (5 years, absent), and Kathy Wynne (20 years, absent).

Consent Calendar

• Council voted unanimously (recorded as 6-0) to approve the consent agenda, which included:
  • The proposed billing rate increase requested by City Attorney Nichols Jackson, effective October 1, 2026.
  • The Monthly Financial Report for the period ending June 30, 2026.
  • The Quarterly Investment Report for the period ending June 30, 2026.
  • The June 22, 2026 City Council Regular Meeting minutes.

Public Comments & Testimony

• Vanessa Camacho Bisby (8244 Courtney Way), a mother, veteran, and longtime resident, asked the Council to deny SUP 26-01 with prejudice. She stated that Fort Worth denied a similar request by the same company due to proximity to homes, and argued that an eight-foot wall would not block daily impacts from activity only 14-18 feet from homes. She also noted that the applicant recently opened a location in Keller less than three miles away.
• Joe Jarbo (8241 Courtney Way) opposed the SUP, citing Watauga's 2016 development strategy. He argued the proposal conflicts with the plan's goals to minimize conflicts with residential areas, neighborhood preservation protections for Durham Farms, and the city's screening and buffering guidance. He also cited Fort Worth denials of similar proposals by 11-0 and 10-0 votes.
• DeAndra Jarbo (8241 Courtney Way) opposed the SUP in four points: residents support thoughtful growth, not business opposition; homeowners trusted existing zoning when buying their home; the applicant has other site choices while nearby residents do not; and the Council should use its power responsibly. She described family ties to the neighborhood and the nearby Dollar General.
• David Stanley (8232 Courtney Way), a master certified technician and automotive technology instructor, opposed the proposal on safety and quality-of-life grounds. He cited examples of tire and automotive shops where tires, vehicles, and hazardous waste accumulated, argued the service is not needed because reputable alternatives exist nearby, and asked city government to represent residents.

Public Hearings

• Crime Control and Prevention District (CCPD) FY2026-2027 Budget: Finance Director Jennifer Calvert confirmed no changes since the prior presentation. No one requested to speak; the hearing was opened and closed at 7:02 p.m.
• FY2026-2027 Proposed Budget: The public hearing was opened at 8:04 p.m. and closed at 8:05 p.m. with no speakers.

Budget Presentation & Discussion

• Finance Director Jennifer Calvert presented the FY2026-2027 proposed budget. The general fund is structurally balanced, with $20.194 million in revenues and $20.932 million in expenditures; the ending fund balance is projected at $8.4 million, above the 25% fund balance requirement.
• The proposed property tax rate is $0.6058 per $100 valuation, up from $0.5702 in FY2025-2026, a 7% increase. The no-new-revenue rate is $0.605860 and the de minimis rate is $0.606422. The agenda's budget statement said the city portion of property tax on an average homestead valued at $229,150 would be $1,388 under the proposed budget and at the no-new-revenue rate, compared to $1,306 in FY2025. Calvert said the average taxable home value declined from $252,000 to $244,000, making the average annual increase about $46.
• Sales tax is budgeted flat at $5 million, property valuations declined 4%, and the city is largely built out. Notable cost increases include electricity (30%), street lighting (27%, about $59,000), shared public safety services ($92,000), and insurance ($128,000), for a total identified impact of $356,000.
• Personnel costs are 73% of expenditures; police and fire account for 49% of the total budget.
• Water and sewer fund revenues are projected at $10.5 million with $11.1 million in expenditures, reducing the fund balance by $659,000 to $1.6 million.
• The CCPD budget is funded by sales tax and includes $2.1 million in revenues and $2.37 million in expenditures, funding nine officers; two officer positions were moved to the general fund because sales tax revenue has been flat.
• The SAFER grant funds three firefighters for three years; the federal share is 75% in years one and two, 35% in year three, with the city covering the remainder and full cost in year four. Council member Taylor expressed concern about absorbing those costs given flat revenues.
• The remaining $542,000 in American Rescue Plan funds has been obligated and must be spent by December 2026.
• Council members raised concerns about personnel costs, flat revenue, reliance on fund balance, and possible state legislative changes to property tax and local revenue. A council member urged residents to shop local and cautioned about state-imposed tax rollbacks.

Health Insurance RFP & Recommendation

• HR Director Juliet Rodriguez said the city had a difficult insurance season because claims loss ratio rose from 82.8% last year to 137.7%, far above the 85% target, which prompted an RFP for medical, dental, and vision coverage.
• Heath Hagan of Hub International presented the RFP analysis. The incumbent Blue Cross Blue Shield of Texas was recommended for renewal. Keeping current plan designs would cost a 26.9% increase, about $385,000 in additional annual premium, with total annual combined premium of almost $1.9 million.
• The recommendation was to consolidate four plan designs into three: two HSA-qualified plans and one copay plan, with one emergency room copay increase to $750. This reduced the projected increase to 5.3%, about $79,000 in additional annual premium, bringing total annual combined premium to about $1.55 million.
• Dental and vision benefits would remain unchanged, with one-year and two-year rate guarantees, respectively. Mutual of Omaha life and disability rates are guaranteed until 2028.
• In response to council questions, Hagan said employee contributions are tiered by salary; public-sector average employee-only contribution is $62 per month. City employer funding ranges from 93% to 79% for employees and 70% to 56% for dependents.

Key Outcomes

• FY2026-2027 Proposed Budget: Council voted unanimously (5-0) to table the budget to the August 24, 2026 meeting.
• CCPD FY2026-2027 Budget: Council voted unanimously (5-0) to approve the Crime Control and Prevention District budget as presented.
• SUP 26-01 (Bright Bay 2 Investments LLC; referred to in the transcript as Bright Star Investments LLC): Council voted unanimously (5-0) to table the specific use permit request for retail tire sales and light auto repair at 6600 Bursey Road to the August 24, 2026 meeting. No decision on the merits was made.
• Employee Insurance: Council voted unanimously (5-0) to authorize the City Manager to execute contracts with Blue Cross Blue Shield of Texas for medical, dental, and vision insurance for eligible employees for October 1, 2026 through September 30, 2027, as presented.
• Vote-count note: The consent agenda was recorded as 6-0, while later votes in the transcript are recorded as 5-0, consistent with the council noting that it lacked a full council for the SUP supermajority.