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HomeMy WebLinkAboutCPA 2026-02-03 Minutes CITY OF NORTH RICHLAND HILLS 2025 CAPITAL PROGRAM ADVISORY COMMITTEE MEETING MEETING MINUTES FEBRUARY 3, 6:00 PM PUBLIC SAFETY TRAINING CENTER, POLICE CLASSROOM 7200 DICK FISHER DR. SOUTH NORTH RICHLAND HILLS The 2025 Capital Program Advisory Committee met on Tuesday, February 3, 2026, at 6:00 pm in the Police Classroom at the North Richland Hills Public Safety Training Center. The following members were present: Vice Chair, Richard Davis Mona Bailey, Jane Birkes, Rodney Glenn, Brianne Goetz, Patti Hourihan, Elouise Kennedy, Dave Lambson, Miles Maze, David Newhouse, Sean Nutt, Kyle Pekurney, Adam Pope, Steve Tate, Joe Tolbert, Marc Trevino, Justin Welborn, Bill Witsett, Mark Wood The following member(s)were absent: Chair Tito Rodriguez, Suzy Compton, Darlisa Diltz, Mike Kerby, Julia Miller, Ann Perchard, Brad Pipes, Jason Roberts, John Schleeter, Gary Vieregger Staff present at the meeting were: Paulette Ms. Hartman, City Manager, Trudy Lewis, Assistant City Manager, Boe Blankenship, Director of Public Works, Mary Peters, Director of Communications, Cecilia Barham, Director of Library Services, Dakota Ford, Digital Content Producer, Sierra Clark, Video Production Intern, Jennipher Castellanos, Manager of Strategic Initiatives, Charles Benson, Purchasing Manager, Chris Amarante, Director of Facilities and Construction, Chase Fosse, Director of Budget and Research CALL TO ORDER The meeting was called to order by Vice Chair Richard Davis at 6:03 p.m. II. APPROVE MINUTES FROM JANUARY 20, 2026, MEETING A motion was made by Committee Member, Mona Bailey seconded by Committee Member Brianne Goetz to approve the minutes of January 20, 2026, Capital Program Advisory Committee (CPAC) Meeting. The motion passed unanimously. III. REVIEW AND DISCUSS DEBT CAPACITY AND PROPERTY TAX IMPACT OF FUNDING CAPITAL IMPROVEMENT PROJECTS. Assistant City Manager Trudy Lewis provided an overview of the agenda and items for discussion, followed by a review of the history of NRH bond elections. She directed the committee to a page on the City's website containing detailed information about the City's debt obligations and noted that a 2003 proposition for Maintenance Service Center Facility improvements failed during that year's bond election. Ms. Lewis provided a comparison of bond elections conducted in 2024-2025 by several Texas cities, including Dallas, McKinney, Lewisville, Plano, Frisco, Garland, Flower Mound, and Roanoke. Ms. Lewis proceeded with a discussion on the city's debt capacity. She began by reviewing the City's adopted tax rate of 0.497841, noting that approximately 30 percent of this rate is allocated toward debt service. She presented a chart illustrating the City's Debt Tax Rate Payment Capacity, which demonstrated how much debt could be issued while maintaining consistent annual payments over time. Ms. Lewis explained that the proposed bond election is anticipated for November, but any resulting tax rate impact would not occur until Fiscal Year 2028. The committee was shown a Debt Tax Issuance Payment Scenario, which projected issuances through August 2036 and outlined how these would affect the tax rate beginning in FY 2028. Ms. Lewis reviewed a spreadsheet outlining the Preliminary Bond Capacity Analysis for the November 2026 Bond Election. The analysis assumes no growth in assessed property values and was presented to illustrate the projected impact on the debt tax rate. When asked about the proposed 5 percent rate for debt financing, Ms. Lewis clarified that this figure is an estimate provided by financial advisors based on current market trends. City Manager Paulette Hartman added context regarding interest rate fluctuations and emphasized that while estimates are based on current conditions, actual rates could vary significantly. Further discussion addressed the variability of interest rates and the legal requirements for issuing debt under state law. Questions arose regarding the possibility of paying off debt early, to which Ms. Lewis explained that while the City can refinance existing debt to obtain more favorable terms, state law does not allow the adopted property tax rate to include early repayment if that cost is not part of the minimum payment for that fiscal year's debt. The committee also discussed potential legislative changes that might limit the City's ability to issue certain types of debt in the future. Ms. Hartmand and Ms. Lewis responded to questions and comments from the committee throughout the discussion. IV. REVIEW AND DISCUSS STAFF RECOMMENDATIONS FOR FUNDING AND COMPLETING CAPITAL IMPROVEMENT PROJECTS. Ms. Lewis presented the staffs recommendations for proposed capital improvement projects. These included rebuilding Fire Station #2 and Fire Station #3, with cost estimates provided for each. Chief Tinney addressed questions regarding Fire Station#3, explaining that multiple options had been considered for its reconstruction. Ms. Lewis then discussed proposed library expansion projects in detail. Ms. Lewis began with the Community Room Expansion, which would include the addition of a restroom facility. She next presented the SB 412 Compliance project, requiring separate circulation areas for children and adults, with an estimated cost of $7.6 million. Following this, Ms. Lewis outlined the Circulation Workroom Expansion, which would involve enlarging the workroom and adding furniture, fixtures, and shelving. The final library project reviewed was the proposed addition of an Outdoor Terrace. Ms. Lewis then presented street projects explaining that these were grouped into categories. She began with an overview of the proposed projects for the Major Streets category which were grouped by priority. There were 16 streets in the Major Priority Red totaling approximately $37.9 million, seven additional streets in Major Priority Blue at $13.5 million, and six additional streets in Major Priority Green at $11.5 million. The presentation then moved to Residential streets with 18 streets in Priority Red at a cost of $13.7 million, five additional streets in Priority Blue with a cost of $4.59 million and ten additional streets in Priority Green were estimated at$3.4 million. In total, the Bond Street Summary included 55 streets with an estimated cost of$84.2 million. The Service Center rebuild was also discussed, with staff acknowledging the challenges of communicating its importance to voters given its previous failure in 2003. Altogether, the proposed projects amount to approximately $155.5 million. Ms. Lewis noted that inflationary assumptions had been factored into these estimates. The committee discussed funding options, including whether certain projects should be considered for Certificates of Obligation rather than a General Obligation bond election. Ms. Lewis clarified that COs cannot increase the tax rate and committed to providing additional details on CO limits at a future meeting. Questions were raised about how surplus funds would be handled if projects come in under budget. Ms. Lewis explained that leftover funds would first be applied to other authorized bond projects. City Manager Paulette Hartman stressed the importance of carefully drafting ballot propositions to ensure flexibility in reallocating funds while maintaining transparency. The committee also discussed whether the Service Center could be renamed to better convey its purpose to voters. V. REVIEW AND DISCUSSING TIMING OF BOND ELECTION AND RELATED BALLOT LANGUAGE REQUIREMENTS. The committee discussed the timing of the bond election and ballot language requirements. Ms. Hartman confirmed that the election is currently planned for November 2026. While a May election could be considered, the deadline to call a May election falls in February, which means the earliest possible May date would be May 2027. For this reason, November 2026 remains the more practical option. Ms. Lewis explained that each project would appear as a separate proposition on the ballot, and any project rejected by voters cannot be funded through Certificates of Obligation for three years. State law requires that propositions be clearly separated by category, such as streets versus library projects, to ensure voters understand where funds will be allocated. Ms. Hartman emphasized the importance, of proposition wording to allow flexibility in spending while maintaining compliance with legal requirements. The committee discussed whether different funding scenarios could be presented, and Ms. Lewis confirmed that staff would prepare scenarios based on feedback received from the upcoming survey. Next steps include distributing a survey to committee members to gauge project priorities and voter appeal. Staff will also provide copies of the presentation and additional details regarding CO limits. At the next meeting, the committee will review survey results and work toward a consensus on which projects and funding levels to recommend. Ms. Hartman outlined plans for public engagement should the council call an election. These efforts would include multiple town hall meetings and educational materials, as well as YouTube videos to make information more accessible to voters. The committee was encouraged to share information with neighbors and friends to help gauge community support for the proposed projects. VI. REVIEW AND DISCUSS FUTURE COMMITTEE WORK AND MEETINGS. Vice Chair Richard Davis reviewed the schedule for upcoming meetings, noting that the next meeting will be held on February 17 at the Police Classroom in the Public Safety Training Center. Ms. Hartman added that aggregate survey results will be presented at that meeting, followed by discussion of feedback and recommendations for the City Council. Vice Chair Davis also reminded the committee that the March 10 meeting has been rescheduled to March 4. VII. PUBLIC COMMENTS An opportunity for citizens to address the 2025 Capital Program Advisory Committee on matters which are scheduled on this agenda for consideration by the 2025 Capital Program Advisory Committee but not scheduled as a public hearing. In order to address the 2025 Capital Program Advisory Committee during public comments, a Public Meeting Appearance Card must be completed and presented to the recording secretary prior to the start of the 2025 Capital Program Advisory Committee meeting. There were no requests to speak received. VIII. ADJOURNMENT The meeting adjourned at 7:11 p.m. APPROVED: a( c4,,;-Dotmt„ (r)e)/ Richard Davis, Vice Chair Jennipher Castellanos, Secretary