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HomeMy WebLinkAboutCPA 2026-05-05 Minutes CITY OF NORTH RICHLAND HILLS 2025 CAPITAL PROGRAM ADVISORY COMMITTEE MEETING MEETING MINUTES MAY 5, 6:00 PM GRAND HALL AT NRH CENTRE 6000 HAWK AVE SUITE 200 NORTH RICHLAND HILLS, TX 76180 The 2025 Capital Program Advisory Committee met on Tuesday, May 5, 2026, at 6:00 pm in the Grand Hall at NRH Centre. The following members were present: Chair Tito Rodriguez, Vice Chair, Richard Davis, Mona Bailey, Suzy Compton, Darlisa Diltz, Brianne Goetz, Patti Hourihan, Elouise Kennedy, Mike Kerby, Dave Lambson, Miles Maze, David Newhouse, Kyle Pekurney, Adam Pope, John Schleeter, Steve Tate, Joe Tolbert, Marc Trevino, Gary Vieregger, Justin Welborn, Bill Witsett, Mark Wood The following member(s) were absent: Jane Birkes, Rodney Glenn, Julia Miller, Sean Nutt, Ann Perchard, Brad Pipes, Jason Roberts Staff present at the meeting were: Paulette Hartman, City Manager, Caroline Waggoner, Assistant City Manager, Trudy Lewis, Assistant City Manager, Mary Peters, Communications Director, Boe Blankenship Director of Public Works, Cecilia Barham, Director of Library Services, Dakota Ford, Digital Content Producer, Sierra Clark, Video Production Intern, Jennipher Castellanos, Manager of Strategic Initiatives, Stan Tinney, Fire Chief, Stephen Barnes, Finance Director, Chase Fosse, Budget Director CALL TO ORDER The meeting was called to order by Chair Tito Rodriguez at 6:00 p.m. II. APPROVE MINUTES FROM APRIL 21, 2026, MEETING A motion was made by Committee Member, Justin Welborn, seconded by Committee Member Dave Lambson to approve the minutes of April 21, 2026, Capital Program Advisory Committee (CPAC) Meeting. The motion passed unanimously. III. REVIEW AND DISCUSS PRELIMINARY ASSESSED PROPERTY VALUES. The meeting began with Assistant City Manager Trudy Lewis providing an overview of preliminary value estimates from the Tarrant Appraisal District (TAD). She noted. that values are based on January 1 assessments and that TAD has not reappraised residential properties since 2024, with the next reappraisal scheduled for 2027. Preliminary estimates reflect a $51.7 million increase from new construction and an $88.6 million increase in existing properties, totaling a $140.3 million increase, or approximately 1.5 percent. Ms. Lewis reported that during last week's TAD entity meeting, TAD presented a chart showing the number of residential properties with value decreases across major Texas counties from tax year 2022 through the 2026 preliminary estimates. While the chart did not quantify the amount of decrease, it provided context on how many properties were affected. She then reviewed the bond election projects under consideration: Fire Station Rebuilds at $26.3 million, Street Improvements at $84.26 million, the NRH City Services Complex at$24.7 million, and Library Improvements at$10.71 million, for a total of$145.97 million. She also referenced prior estimates indicating that a $116.88 million general obligation (GO) bond issuance would result in no tax rate impact, a $135.3 million issuance would result in a two-cent tax rate increase, and a $155.695 million issuance would result in a four-cent increase. Ms. Lewis then provided a recap of the bond program that the committee is planning to move forward with as its recommendation to City Council. The program is structured as a 10-year bond package, assuming a modest 1 percent growth rate in the first year and flat growth thereafter. Based on current preliminary values, the estimated tax rate impact for the $145.97 million package is approximately 2.5 cents. She concluded by reiterating that TAD does not plan to reappraise residential properties until 2027. IV. REVIEW AND DISCUSS DEBT CAPACITY AND PROPERTY TAX IMPACT OF FUNDING CAPITAL IMPROVEMENT PROJECTS. Ms. Lewis presented the 10-year Preliminary Tax Rate Impact Analysis for the $145.97 million bond program. She noted that the financial advisors are using a 5 percent interest rate and that the amount of debt issued each year varies. She reviewed the chart columns, explaining that the city's debt rate begins to decline in 2037 and could potentially decrease sooner, though it is projected to stair-step down by the end of the program. She pointed out that Column 14 reflects the projected tax rate. She paused for questions, and none were raised. She then discussed the planned bond sales, including the projected amounts by year and by project. She emphasized that these figures are preliminary and represent budget timing rather than when project work will be completed. In response to Vice Chair Richard Davis' question about the timing of the first bond sale, Ms. Lewis stated that the initial issuance is anticipated as early as August 2027, and it will affect the tax rate for Fiscal Year 2028. Ms. Lewis provided an overview of bond sales for Years 1 through 10, highlighting the funding planned for each year. She noted that Year 9 includes a lower issuance of$1.365 million, while Year 10 increases to $4.475 million. She explained that these adjustments help balance total debt capacity over time. When a committee member asked how foreclosure rates might factor into the projections, Ms. Lewis clarified that property taxes are assessed in the aggregate, and individual changes generally do not affect the overall valuation. However, if broader economic issues arose, the city could delay issuances, and staff reassess these decisions annually to ensure sound financial management. Ms. Lewis then outlined the high-level steps following a successful bond election. The first bond sale has a preliminary plan for August 2027. After the election, staff would seek Council approval for a reimbursement resolution to allow for initial project spending, potentially starting with the library project. In response to a question about the relocation of the City Services Center, Ms. Lewis explained that it would involve moving vehicles, stored supplies, and coordinating logistics, possibly through agreements with other entities. City Manager Paulette Hartman added that a bond oversight committee would be created, and the committee would review each issuance, the associated expenditures, and the logistics of facility relocations. V. REVIEW AND DISCUSS NON-GENERAL OBLIGATION BOND CAPITAL IMPROVEMENT PROJECTS. Ms. Lewis reviewed the recommended non—general obligation (non-GO) projects, which include the Library Circulation Room expansion, separation of the adult and children's collections, and improvements to the Library elevators. Committee members engaged in brief discussion on these items. Ms. Hartman and Ms. Lewis addressed questions from the committee regarding the non-GO projects. Ms. Lewis clarified that non-GO projects are approved through Council action when funding is available. VI. REVIEW AND DISCUSS COMMITTEE RECOMMENDATIONS FOR CAPITAL PROJECTS AND PROPOSED LANGUAGE FOR CITY COUNCIL CONSIDERATION. Ms. Lewis reviewed the proposition language previously presented to the committee and sought confirmation that no revisions were needed. She displayed each project by proposition: Proposition A for Fire Stations, Proposition B for Street Improvements, Proposition C for the NRH City Services Complex, and Proposition D for the Library Community Room Expansion. The committee did not offer changes or recommend any adjustments. VII. REVIEW AND DISCUSS FUTURE MEETINGS OF THE COMMITTEE. Ms. Lewis asked whether the committee wished to hold an additional meeting on June 2. She noted that, if the full committee did not feel another meeting was necessary, the Chair, Tito Rodriguez, and Vice Chair, Richard Davis, could meet separately to prepare their presentation. Committee members discussed the option, and it was noted that if no additional meeting was held and the committee was in agreement, the recommendations would proceed to the City Council meeting on June 22. Ms. Hartman confirmed that the bond package recommendations would be presented to Council on June 22. Ms. Hartman explained that following Council's action to call the election, the City would provide educational materials. In response to a question regarding bond election campaign signs, she clarified that the City cannot produce or fund advocacy materials, including signs; any advocacy efforts would be the responsibility of a political action committee that residents could form if they wish. The City will, however, provide educational information online, host open houses, offer tours, and publish informational materials on its website. A committee member asked again whether the group would meet on June 2. Chair Rodriguez polled the committee, and members expressed consensus that no additional meeting was needed. Another committee member asked whether the City could provide materials that had already been prepared. Ms. Hartman reiterated that while the City cannot spend funds on advocacy, it can publish educational information, data, and materials already presented to the committee. She confirmed that the City will create a dedicated webpage breaking down all bond propositions and will continue updating it. Chair Rodriguez added that the City's inability to advocate is not simply a City policy but a requirement of state law prohibiting the use of public funds for advocacy. A committee member asked whether voters would see four separate propositions on the ballot. Ms. Hartman confirmed that each proposition will appear individually, and only those approved by voters may be funded; any proposition rejected cannot be funded for three years. Committee members continued discussion on several topics. Ms. Hartman, Ms. Lewis, Ms. Waggoner, and Public Works Director Boe Blankenship responded to questions. Chair Rodriguez offered closing comments and confirmed that no further meetings would be scheduled. VIII. 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. 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. IX. ADJOURNMENT The meeting adjourned at 6:48 p.m. APP D: 1 (AAA-1A') Tito Rodriguez, Chair Jennipher Castellanos, Secretary