MINUTES OF THE WORK SESSION AND REGULAR MEETING

OF THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS, TEXAS

HELD IN THE CITY HALL 4301 CITY POINT DRIVE

JULY 22, 2024

WORK SESSION

The City Council of the City of North Richland Hills, Texas met in work session on the

22nd day of July at 5:30 p.m. in the Council Workroom prior to the 7:00 p.m. regular

City Council meeting.

Present:

Jack McCarty

Tito Rodriguez

Ricky Rodriguez

Suzy Compton

Russ Mitchell

Kelvin Deupree

Mayor

Place 1

Associate Mayor Pro Tem, Place 2

Place 3

Place 6

Mayor Pro Tem, Place 7

Absent:

Matt Blake

Place 4

Blake Vaughn

Deputy Mayor Pro Tem, Place 5

Staff Members:

Paulette Hartman

Trudy Lewis

Caroline Waggoner

Alicia Richardson

Cara White

City Manager

Assistant City Manager

City Secretary/Chief Governance Officer

Interim City Attorney

CALL TO ORDER

Mayor McCarty called the meeting to order at 5:30 p.m.

1. DISCUSS ITEMS FROM REGULAR CITY COUNCIL MEETING.

Council member Mitchell inquired about the selection and reference process for item B.

7, RFB24-006. Public Works Operations Manager Kenneth Garvin provided an overview

of staff's process for reference checks and evaluating bids.

Mayor McCarty inquired about item B.2, agreement with MCCi, LLC. for Laserfiche

software and maintenance. He asked why the city is not utilizing Microsoft Share Point.

Assistant Director of Information Services Bob Weakley commented that Laserfiche has

more functionality to share data between departments and security that ensure

department records are privileged.

CITY BUDGET OVERVIEW DISCUSSION

Assistant City Manager Trudy Lewis shared that the city's budget is driven by statutory

guidelines and the City Charter. In preparation for the budget, the process begins in

November of the previous year with submittals for vehicles, technology, and facility

projects. In February, directors submit requests for large capital projects and in March

they submit their departmental operating budget. The city manager's office meets with the

directors to discuss expenditures, revenues, changes from previous year, additions,

trends, and increases from previous year to include inflationary cost increases. The city

is impacted by the consumer price index and increase in cost of goods. The trend

increase for cost of goods impacts the city's budget for equipment, technology

maintenance cost, market salary increases, fuel, dues/memberships, training, chemicals

and food for resale. Ms. Lewis shared that the city's property tax revenue, regardless of

the inflation rate, is capped at 3.5% in growth of property tax revenue. Ms. Lewis

reviewed comparative data (population, employees per capita, general fund budget, and

average residential tax bill) for Southlake, Hurst, Colleyville and Keller. She reviewed the

city's 21 operating budgets, the funding sources (revenues) for the operating funds and

expenditure restrictions associated with special revenue funds.

Ms. Lewis reviewed the roles of five main stakeholders (state legislature, chief appraiser,

property owners, taxing entities, and tax-assessor collector) related to property tax

revenue. The taxing entities includes cities, school districts, hospital districts, community

college districts and special districts. The state legislature establishes roles, adopts state

code, creates policy, and sets legal limits. The chief appraiser assesses property values

for the county, applies exemptions to eligible homeowners, certifies the final tax roll by

July 25 (requires 95% of properties to be complete), manages property value protest,

and maintains property ownership records. There are three types of property value (1)

market value, (2) appraised value, and (3) taxable value. The market value is the value of

property on the open market. The appraised value is the market value, less caps or

limitations on growth from one year to the next. The taxable value is the market value, less

appraised value and exemptions or other reductions to determine the final amount eligible

for tax payment. As of June, the estimate taxable value is 77% (9.3B) of the market value

(12.1B). Ms. Lewis shared that there are 6,991 protests (North Richland Hills property

owners) filed with the Tarrant Appraisal District. Ms. Lewis emphasized the numbers are

an estimate and that the City Council would receive the 2024 certified values in the

2024/2025 proposed budget. Ms. Lewis informed City Council the appraisal process

extends past the Tarrant County Appraisal District's certification. This is due to properties

in protest or lawsuit. The Tarrant County Appraisal District is required to have 95% of all

the property value complete to certify values. The city's property tax rate is based on the

certified values. The current tax rate distribution is 22.6 cents (city), 22.8 cents (Tarrant

County hospital district and Tarrant County College), and 54.6 cents (Birdville

Independent School District). The percentage of the total tax rate by city service is 49%

(public safety), 25% (street and traffic), 8% (facilities), 7% (administration services), 4%

(library), 4% (neighborhood services), and 3% (parks and recreation).

In response to Council member Mitchell's question, Ms. Lewis shared that the Tarrant

County Appraisal District will send notifications to residents requiring them to reapply for

their exemption(s).

Ms. Lewis shared that the city's total tax rate is comprised of the maintenance and

operations (M&O) rate in the general fund and the interest and sinking (I&S) rate in the

debt service fund. The M&O is a portion of the tax rate to pay for maintenance and

operations. The I&S is a portion of the tax rate to pay for tax supported debt. The current

M&O rate is $0.313583, the current I&S rate is $0.175806 for a total tax rate of

$0.489389. Ms. Lewis provided an overview of the no new revenue rate, voter approval

rate, and adopted rate. The no new revenue rate is the tax rate that produces the same

amount of revenue as the prior year. The no new revenue rate excludes new construction

values as of January 1. The voter approval rate is the prior year's maintenance and

operations (M&O) rate, plus 3.5%, plus the interest and sinking (I&S) rate. The adopted

rate is the tax rate adopted by the entity. The tax-assessor collector issues tax bills,

processes payment, and refunds overpayment of property taxes. The tax-assessor

collector is also responsible for distributing tax revenue to taxing entities and calculating

refund liabilities for taxing entities. The tax payments are based on the taxable values

times the adopted tax rate. Ms. Lewis shared that if the taxable values change as a result

of protests and lawsuits, the total amount due for taxes could change. The city has seen a

trend in property values changing after the Tarrant County Appraisal District's

certification, which resulted in a change in revenue collection. Another upward trend is

the payment of delinquent property taxes versus amount collected, and as a result, the

tax-assessor collector created a recalculated refund liability. The implementation of the

recalculated refund liability serves as an escrow account for refunds made on behalf of

the city. Staff established a new account in the budget for this activity. Currently, the

recalculated refund liability is ($361,150).

City Manager Paulette Hartman clarified that the city does not have a negative balance of

$361,150. The general fund reserves will fund the recalculated refund liability balance.

Staff is highlighting areas that will be discussed at the budget goals work session.

City Council and staff discussed percentage of residents claiming senior exemption,

reasoning for apartments being classified as commercial, and request to provide a chart

illustrating exemptions filed for the past 5-10 years.

Ms. Lewis reviewed comparative data (current year average single family home taxable

value, current year tax rate, and current year average residential tax bill) for Southlake,

Hurst, Colleyville, Keller, Flower Mound, Trophy Club, Grapevine, Mansfield, Bedford,

Grand Prarie, Burleson, Euless, Saginaw, Crowley, Fort Worth, Watauga, Arlington,

Richland Hills, and Haltom City.

Ms. Lewis provided an overview of the city's debt management strategy. The city

leverages external resources (grants and outside funds) and utilizes cash when possible

for capital projects. The city also maximizes revenue alternatives (six funds other than the

general debt service fund) to pay for long-term debt and operates within the city's

capacity. The tax supported debt pays for streets, facilities, and large equipment. While

self supported debt is paid from the utility, drainage, park, aquatic park, golf and fleet

funds. The current debt service classification for fiscal year 2023/2024 is 56% for

general obligation bonds, 19% for general certificates of obligation, 17% for utility fund,

2% for the park, aquatic park and golf funds, and 1% for the fleet and drainage funds.

Ms. Lewis provided an overview of the city's tax supported debt for fiscal years 2024

through 2044. She also provided an overview of the city's bond capacity through fiscal

year 2030. Based on no growth in certified values and no increase from the current year

debt payment, the city has capacity to issue debt for fiscal years 2025 (2.9M), 2026

(10.7M), 2027 (18.7M), 2028 (30.2M), 2029 (40.0M) and 2030 (47.2M).

Ms. Lewis reviewed the current year's budget tax supported projects in the amount of

$9,925,000. The projects were scheduled to be paid from the debt service portion of the

tax rate. Staff reviewed cash reserves and interest earnings, and will be bring forward a

revised current year budget to fund seven of the eight projects with cash in the amount of

$4,030,000. The current Green Extreme replacement project will continue to be debt

funded and reimbursed by the water park.

Ms. Lewis reviewed dates associated with the city's budget and adoption schedule.

Ms. Hartman provided a recap of revenue and expense trends. The interest income is up

and there is a balance in most funds, excluding the Information Technology fund. In light

of the reserve fund balances, staff recommends using cash to purchase capital

equipment. It is anticipated the no new revenue rate will be higher than our current tax

rate, but staff will know more when they receive the certified values. The budget includes

optimizations for the general fund, cost recovery initiatives, elimination of positions that

have been vacant for a number of months, public engagement, transparency, process

improvements, increasing amount for street maintenance, competitive compensation for

all city employees to recruit and retain the best city staff. Ms. Hartman stated that she

anticipates a reduction in expenditures as a result of service optimizations. The most

significant trend in expenditures is the inflation for annual maintenance costs, software

programs and renewals for subscriptions.

FUTURE AGENDA ITEM(S)

Mayor Pro Tem Deupree asked staff to provide an update on mosquito spraying to

include the effectiveness of the program and what other cities are doing with regards to

mosquitoes. There was no opposition from City Council.

Mayor McCarty discussed the need for the city to adopt a resolution addressing housing

finance corporations (HFC) to protect the city from losing tax revenue. He asked to have

an item on the agenda as soon as possible for consideration by the City Council. Ms.

Hartman informed City Council that staff has been following the discussion of housing

finance corporations. Staff will have an item on the August 12 City Council agenda.

Mayor McCarty wants the City Council to address short term rentals in North Richland

Hills. He would also like the city to consider taxing short term rentals. Ms. Hartman

informed City Council the proposed budget includes funding for software to register and

collect Hotel Occupancy Tax from short term rentals. Staff has been working with cities

that have passed short term rental ordinances and plans to place an item on the agenda

for discussion by City Council.

Council member Mitchell expressed concern with legislation that would mandate minimum

lot size for municipalities. Texas Municipal League staff, at the newly elected officials'

training, discussed the legislation proposed at the last legislative session. The Texas

Municipal League shared that a bill would most likely be filed during the upcoming

legislative session.

EXECUTIVE SESSION

SECTION 551.071: CONSULTATION WITH THE CITY ATTORNEY TO SEEK

ADVICE ABOUT PENDING OR CONTEMPLATED LITIGATION OR ON A

MATTER

WHICH

THE

DUTY

THE

ATTORNEY

THE

GOVERNMENTAL BODY UNDER THE TEXAS DISCIPLINARY RULES OF

PROFESSIONAL CONDUCT OF THE STATE BAR OF TEXAS CLEARLY

CONFLICTS WITH THE OPEN MEETINGS ACT: HALE V. WALTERBACH.

SECTION

551.074:

DELIBERATE

THE

APPOINTMENT,

EMPLOYMENT,

EVALUATION, REASSIGNMENT, DUTIES, DISCIPLINE, OR DISMISSAL OF A

PUBLIC OFFICER OR EMPLOYEE

PROSECUTOR.

SPECIAL MUNICIPAL COURT

SECTION

551.074:

PERSONNEL

MATTERS

DELIBERATE

THE

EMPLOYMENT, EVALUATION, AND DUTIES OF PUBLIC OFFICERS OR

EMPLOYEES - MUNICIPAL JUDGE.

Mayor McCarty announced at 6:39 p.m. that the City Council would adjourn into

Executive Session as authorized by Chapter 551, Texas Government Code, specifically

Section 551.071: Consultation with the City Attorney to seek advice about pending or

contemplated litigation or on a matter in which the duty of the attorney to the

governmental body under the Texas Disciplinary Rules of Professional Conduct of the

State Bar of Texas clearly conflicts with the Open Meetings Act: Hale v. Walterbach;

Section 551.074: Deliberate the appointment, employment, evaluation, reassignment,

duties, discipline, or dismissal of a public officer or employee - Special Municipal Court

Prosecutor and Section 551.074: Personnel matters to deliberate the employment,

evaluation, and duties of public officers or employees - Municipal Judge. Executive

Session began at 6:45 p.m. and concluded at 7:01 p.m.

Mayor McCarty announced at 7:01 p.m. that City Council would convene to the regular

City Council meeting.

REGULAR MEETING

CALL TO ORDER

Mayor McCarty called the meeting to order at 7:08 p.m.

Present:

Jack McCarty

Tito Rodriguez

Ricky Rodriguez

Suzy Compton

Russ Mitchell

Kelvin Deupree

Mayor

Place 1

Associate Mayor Pro Tem, Place 2

Place 3

Place 6

Mayor Pro Tem, Place 7

Absent:

Matt Blake

Place 4

Blake Vaughn

Deputy Mayor Pro Tem, Place 5

Staff Members:

Paulette Hartman

Alicia Richardson

Cara White

City Manager

City Secretary/Chief Governance Officer

Interim City Attorney

A.1

Associate Mayor Pro Tem Rodriguez gave the invocation.

A.2 PLEDGE

INVOCATION

Associate Mayor Pro Tem Rodriguez led the Pledge of Allegiance to the United States

and Texas flags.

A.3

SPECIAL PRESENTATION(S) AND RECOGNITION(S)

There were no items for this category.

A.4

CITIZENS PRESENTATION

Mr. Sean Nutt, 6448 Iron Horse Boulevard, suggested the city implement a portal

available to the public to view updates on concerns discussed during citizen

presentations. He also recommended the city have more opportunities to speak to elected

officials and staff in an informal setting, such as town hall forums.

A.5

There were no requests to speak from the public.

A.6 REMOVAL OF ITEM(S) FROM CONSENT AGENDA

No items were removed from the consent agenda.

PUBLIC COMMENTS

CONSIDER APPROVAL OF CONSENT AGENDA ITEMS

APPROVED

MOTION WAS MADE BY COUNCIL MEMBER MITCHELL, SECONDED BY MAYOR

PRO TEM DEUPREE TO APPROVE THE CONSENT AGENDA.

MOTION TO APPROVE CARRIED 5-0.

B.1

B.2

APPROVE THE MINUTES OF THE JUNE 24, 2024 CITY COUNCIL MEETING.

AUTHORIZE AN AGREEMENT WITH MCCI, LLC., AN AUTHORIZED

RESELLER FOR LASERFICHE (ENTERPRISE CONTENT MANAGEMENT)

SOFTWARE AND MAINTENANCE USING BUYBOARD CONTRACT (716-23)

FOR A CUMULATIVE THREE (3) YEAR TERM AMOUNT NOT TO EXCEED

$205,000 EXPIRING NOVEMBER 30, 2026.

CONSIDER

AWARDING

RFP

24-006 AND

AUTHORIZING

THE

CITY

B.3

B.4

MANAGER TO EXECUTE A DEPOSITORY AND ELECTRONIC LOCKBOX

BANKING AGREEMENT FOR BANKING SERVICES TO J. P. MORGAN

CHASE BANK, N.A. FOR A TERM OF THREE YEARS.

CONSIDER

AWARDING

RFP

24-006 AND

AUTHORIZING

THE

CITY

MANAGER TO EXECUTE AN INVESTMENT BANKING CONTRACT FOR

INVESTMENT SAFEKEEPING BANKING SERVICES TO U.S. BANK, N.A.

FOR A TERM OF THREE YEARS.

AUTHORIZE A SERVICE SUBSCRIPTION AGREEMENT FOR EIGHT FLOCK

SAFETY FALCON AUTOMATED LICENSE PLATE READER CAMERAS FROM

FLOCK GROUP INC. IN THE AMOUNT OF $53,200 USING TEXAS

B.5

ANTI-GANG

RESOLUTION NO. 2024-033, AUTHORIZING THE CITY MANAGER TO

EXECUTE REGIONAL ASSET TRANSFER ADDENDUM WITH ELLIS

CENTER

GRANT

#2848909 FUNDING

AND

CONSIDER

COUNTY SHERIFF’S OFFICE TO TRANSFER EQUIPMENT PURCHASED BY

THE CITY OF NORTH RICHLAND HILLS USING TAG GRANT #2848909

FUNDS.

CONSIDER AWARDING RFB 24-025 FOR WATER AND WASTEWATER

REPAIR MATERIALS TO NORTH TEXAS WINWATER (SECTION A, C AND D)

IN AN AMOUNT NOT TO EXCEED $342,689.92, AND TO ATLAS UTILITY

SUPPLY COMPANY (SECTION B) IN AN AMOUNT NOT TO EXCEED

$418,929.44 WITH A ONE-YEAR TERM AND FOUR OPTIONAL RENEWALS.

B.6

B.7

AWARD RFB 24-026 FOR TOPSOIL, SAND, UTILITY ROCK, CRUSHED

LIMESTONE AND MANUFACTURED SAND TO TEXAS SAND & GRAVEL IN

AN AMOUNT NOT TO EXCEED $151,387.50 AND FLEXIBLE BASE

MATERIAL TO GREEN DREAM INTERNATIONAL, LLC IN AN AMOUNT NOT

TO EXCEED $67,000 WITH A ONE-YEAR TERM AND FOUR OPTIONAL

RENEWALS.

AUTHORIZE THE CITY MANAGER TO EXECUTE AN AMENDMENT TO THE

B.8

DISCRETIONARY

INVESTMENT

MANAGEMENT

AND

CONSULTING

SERVICES AGREEMENT WITH MEEDER PUBLIC FUNDS TO INCLUDE

DEMAND DEPOSIT STATE AND LOCAL GOVERNMENT SECURITIES

PROGRAM PARTICIPATION.

CONSIDER RESOLUTION NO. 2024-035, AUTHORIZING PARTICIPATION IN

THE TEXAS CONNECT PUBLIC FUNDS INVESTMENT POOL.

B.9

PUBLIC HEARINGS

There were no items from this category.

D. PLANNING AND DEVELOPMENT

There were no items from this category.

E. PUBLIC WORKS

AWARD RFB 24-023 TO XIT PAVING AND CONSTRUCTION, INC., FOR

CONSTRUCTION OF THE MAIN STREET PROJECT (ST2212), FROM

AMUNDSON DRIVE TO AMUNDSON ROAD, IN THE AMOUNT OF

$2,395,472.75, AND AUTHORIZE THE CITY MANAGER TO EXECUTE THE

RELATED CONSTRUCTION AGREEMENT.

E.1

APPROVED

City Council received a presentation from City Engineer Nathan Frohman.

City Council and staff discussed the construction timeline, resident access to Amundson

and Main Street, school traffic and alternate routes, construction to be completed in

phases, and communication with the school district.

MOTION WAS MADE BY COUNCIL MEMBER RODRIGUEZ, SECONDED BY

COUNCIL MEMBER COMPTON TO AWARD RFB 24-023 TO XIT PAVING AND

CONSTRUCTION, INC., FOR CONSTRUCTION OF THE MAIN STREET PROJECT

(ST2212), FROM AMUNDSON DRIVE TO AMUNDSON ROAD IN THE AMOUNT OF

$2,395,472.75, AND AUTHORIZE THE CITY MANAGER TO EXECUTE THE RELATED

CONSTRUCTION AGREEMENT.

MOTION TO APPROVE CARRIED 5-0.

GENERAL ITEMS

CONSIDER ORDINANCE NO. 3857, APPOINTING THE PRESIDING JUDGE

AND ASSOCIATE JUDGES OF THE MUNICIPAL COURT OF RECORD,

DIVISION 1.

F.1

APPROVED

City Council received a presentation from Assistant City Manager Trudy Lewis to

consider an ordinance appointing Stewart Bass as Presiding Judge, and Lorraine Irby and

Bonnie Wolf as Associate Judges of Municipal Court of Record, Division No. 1.

MOTION WAS MADE BY MAYOR PRO TEM DEUPREE, SECONDED BY COUNCIL

MEMBER MITCHELL TO APPROVE ORDINANCE NO. 3857.

MOTION TO APPROVE CARRIED 5-0.

CONSIDER RESOLUTION NO. 2024-034, APPOINTING MEMBERS TO THE

SUBSTANDARD BUILDING BOARD.

F.2

APPROVED

City Council received a presentation from City Secretary/Chief Governance Officer

Alicia Richardson to appoint the following persons to the Substandard Building Board.

Mel Delaney

Tracy Bennett (fulfill vacancy)

Place 4

Place 5

June 30, 2026

June 30, 2025

MOTION WAS MADE BY COUNCIL MEMBER MITCHELL, SECONDED BY COUNCIL

MEMBER COMPTON TO APPROVE RESOLUTION NO. 2024-034, AS PRESENTED.

MOTION TO APPROVE CARRIED 5-0.

CONSIDER RESOLUTION NO. 2024-036, CONTINUING PARTICIPATION IN

TARRANT COUNTY'S HOME INVESTMENT PARTNERSHIP PROGRAM.

F.3

APPROVED

City Council received a presentation from Director of Neighborhood Services Stefanie

Martinez.

MOTION WAS MADE BY ASSOCIATE MAYOR PRO TEM RODRIGUEZ, SECONDED

BY MAYOR PRO TEM DEUPREE TO APPROVE RESOLUTION NO. 2024-036.

MOTION TO APPROVE CARRIED 5-0.

EXECUTIVE SESSION ITEMS - CITY COUNCIL MAY TAKE ACTION ON ANY

ITEM DISCUSSED IN EXECUTIVE SESSION LISTED ON WORK SESSION

AGENDA

Mayor McCarty advised that City Council met in Executive Session, pursuant to Section

551.071: Consultation with the City Attorney and no action is necessary. The City

Council also met in Executive Session, pursuant to Section 551.074: Personnel matters

for the special municipal court prosecutor and municipal judge. There was no action

necessary regarding the special municipal court prosecutor and City Council took action

on the municipal judge’s appointment with item F.1

INFORMATION AND REPORTS

ANNOUNCEMENTS

H.1

Council member Compton made the following announcements.

Officers from the NRH Police Department will be at the NRH Library this Wednesday and

next Wednesday to hand out free popsicles and visit with the community! Stop by to chat

with them between 10:00 a.m. and 11:30 a.m.

Outdoor sprinkler systems need occasional upkeep and repair. Attend a free workshop

from 6:00 p.m. - 8:00 p.m. this Thursday to learn about sprinkler system maintenance

and how to fix the most common issues on your own. This event will take place at City

Hall. Advance registration is required. Visit the calendar on our website for the link to

To celebrate National Parks & Recreation Month, the NRH Parks Department is hosting

an evening of outdoor games, activities, and a showing of the movie Kung Fu Panda 4.

This free family event will take place from 7:30 p.m. to 10:00 p.m. on Thursday at the

NRH Centre Outdoor Plaza. You can find more information on the city’s website.

Kudos Korner - Scott Pearce and Jackson Boyd in the Parks Department - During one

of last month’s storms, a large tree on city-owned property fell and blocked the entrance

to Smithfield Cemetery. Scott and Jackson responded to a call for help from the

cemetery and were able to remove the tree the same day. We received a note of

appreciation for their hard work. It said: “Smithfield Cemetery is an active cemetery with

lots of visitors paying their respects to loved ones daily. Thank you for quickly coming to

our aid.” Great job, guys!

ADJOURNMENT

Mayor McCarty adjourned the meeting at 7:36 p.m.

__________________________

Jack McCarty, Mayor

ATTEST:

________________________

Alicia Richardson

City Secretary/Chief Governance Officer