Aug 13, 2026 Town Council

[00:00:01]

AWAY FROM THE BEACH. IT IS AUGUST 18TH. WE WILL CALL TO ORDER OUR NORTH LAKE TOWN

[1. CALL TO ORDER ]

AND SO WE'RE NEW RESIDENTS. WE BOUGHT A HOUSE JUNE 29TH. BEEN COMING TO ARGYLE THIS AREA FOR ABOUT TEN MONTHS WORKING AT THE CHURCH, BUT WE JUST MOVED IN. KIDS STARTED SCHOOL. SO WE'RE BLESSED AND THANKFUL TO BE HERE AND SERVE HOWEVER WE CAN. SO LET US PRAY. DEAR LORD, YOU ARE HOLY AND WONDERFUL AND GOOD IN WAYS THAT WE CAN'T UNDERSTAND. BUT BECAUSE OF YOUR SON JESUS, WE DO UNDERSTAND THE THE GIFT YOU'VE GIVEN US OF LIFE AND AND THOSE WHO KNOW YOU SALVATION.

SO LORD, I JUST THANK YOU FOR THAT. I PRAY, LORD, THAT WE, THE CITY IS ABLE TO PLAN ACCORDINGLY AND ALL THE THINGS THAT ARE HAPPENING TO HEAR THIS, TO BLESS THIS CITY IN HONOR YOU.

AND SO, LORD, JUST GIVE EVERYONE IN WHATEVER ROLE THEY'RE DOING TODAY, GIVE THEM WHAT THEY NEED, GIVE THEM THE WORDS, LET THEM WALK IN CHARITY, LOVING YOU, LOVING THEIR NEIGHBOR. AND IN THAT, LORD, I PRAY BLESSING UPON THIS CITY THAT YOU WILL BRING THINGS EVEN THROUGH THIS MEETING AND DISCUSSIONS AND THINGS THAT HAPPEN, LORD, THAT THAT IT WILL BE DONE FOR YOUR GOOD. AND SO BLESS US NOW, LORD, I PRAY FOR THOSE HERE IN THIS ROOM THAT MAY KNOW YOU, AND THAT THEY CAN SHINE AS LIGHT IN. LORD, BE A TESTIMONY, A WITNESS TO YOU.

AND I PRAY FOR THOSE THAT DON'T KNOW YOU, LORD, THAT THE INTERACTIONS AGAIN WITH THE BELIEVERS LORD WOULD JUST ENCOURAGE THEM AND THAT THEY WOULD COME TO KNOW YOU AND THAT YOU WOULD BLESS THEM IN THAT WAY. LORD, AND I PRAY AGAIN FOR OUR TOWN AND ALL THE CITIZENS AND ALL THE THINGS YOU'RE DOING, AND ALL THE GOOD LORD, I PRAY ULTIMATELY FOR YOUR PROTECTION IN WAYS THAT WE CAN'T SEE. WE LOVE YOU. WE NEED YOU IN THE NAME OF THE FATHER, SON, AND THE HOLY SPIRIT, WE PRAY. AMEN. AMEN. THANK YOU. PLEASE STAND FOR OUR PLEDGES. OF THE UNITED STATES OF AMERICA AND TO THE REPUBLIC FOR WHICH IT STANDS. ONE NATION UNDER GOD, INDIVISIBLE, WITH LIBERTY AND JUSTICE FOR ALL. OUR PRAYERS, I PLEDGE ALLEGIANCE TO THEE.

TEXAS, ONE STATE UNDER GOD, INDIVISIBLE. THANK YOU EVERYONE. FIRST, AS USUAL TONIGHT WE HAVE

[2.A. Reports and Updates from the Mayor and Town Councilmembers Concerning Items of Community Interest (if necessary) ]

SO JUST WELCOMING ALL THE STUDENTS BACK AND I HOPE AND ALL THE TEACHERS AND STAFF AND HOPE THEY HAVE A WONDERFUL YEAR. ANYONE ELSE OFF THIS EVENING? VERY GOOD. COUPLE OF THINGS. WE HAD A GREAT RIBBON CUTTING THIS WEEK FOR A NEW RESTAURANT IN NORTHLAKE, THE SHARK CLUB, DOWN AT THE DALLAS MULTI-SPORT STAR CENTER, NORTHLAKE. THERE'S A REALLY GREAT EVENT. LOTS OF PEOPLE CAME OUT, SO WE HAVE SOME NEW DINING OPTIONS IN TOWN. GIVE THEM A LITTLE GRACE.

THEY'RE JUST GETTING STARTED. SO IF SERVICE IS A LITTLE SLOW BUT THE FOOD IS PRETTY DARN GOOD. WE ALSO HAD OUR COMMUNITY HEALTH DAYS, WHICH WAS REALLY A LOT OF FUN. WE HAD TONS OF PEOPLE SHOW UP FOR THAT. GOT TO WATCH THE THE NEW NORTH LAKE HOCKEY TEAM CALLED TEXAS SCORPIONS PLAY AN EXHIBITION GAME. THEY'LL BE STARTING UP HERE IN NOVEMBER WITH THE HOME OPENING GAME SIXTH AND SEVENTH, I BELIEVE, WHERE THEY'LL BE PLAYING THE NEW YORK CITY FIREFIGHTERS HOCKEY TEAM, ONE OF THE HARDEST HITTING HOCKEY TEAMS IN THE NATION FOR SEMIPROFESSIONALS. SO I'D BE A HECK OF A LOT OF FUN. BRING OUT YOUR FRIENDS AND FAMILY FOR THAT. ONCE THAT COMES AROUND IN NOVEMBER, THERE'S NOTHING ELSE WE WILL PROCEED ON. AND MAYOR, ALL OUR SPECIAL GUESTS ARE HERE NOW. OH, WONDERFUL. WE'LL KEEP THINGS IN ORDER THEN. SO WE'LL

[2.B. Presentation - Texas Municipal Clerks Association - 2026 Municipal Clerk's Office Achievement of Excellence Award]

[00:05:01]

THIS WAS THE FIRST YEAR THAT IT WAS BESTOWED ON CITY SECRETARY OFFICES WAS IN 2020, AND IT'S A LIMITED NUMBER OF CITIES THAT APPLY FOR IT. AND AS YOU CAN SEE ON THE THE SLIDE IN FRONT OF YOU THAT THIS YEAR, ONE OF ONLY 42 MUNICIPAL CLERKS OFFICES RECEIVED THIS WONDERFUL, HARD EARNED DESIGNATION. AND SO I'M HERE TO HELP CELEBRATE YOUR CITY SECRETARY AND YOUR CITY SECRETARY'S OFFICE. I CALL HER Z, AND I'M SURE YOU GUYS DO AS WELL, RIGHT? SO, Z, I'VE KNOWN HER FOR A NUMBER OF YEARS WHEN SHE USED TO WORK IN WATAUGA, AND I WAS IN NORTH RICHLAND HILLS AND SHE MADE HER WAY OVER HERE. SHE'S DOING GOOD THINGS HERE. AND SO LET ME KIND OF GIVE YOU SOMETHING TO COMPARE IT TO. YOU KNOW, HOW THE POLICE DEPARTMENT, THEY'VE GOT THEIR ACCREDITATION PROGRAM WHERE THEY HAVE TO MEET CERTAIN STANDARDS. THIS IS THE SAME THING FOR A CITY SECRETARY'S OFFICE. SO THERE ARE 12 STANDARDS THAT MUST BE MET. YOU CAN DO NINE OF THE 12 STANDARDS. AND WHAT THAT MEANS, JUST SO THAT, YOU KNOW, I'M SURE THE THINGS THAT YOU'RE AWARE OF IS GOING TO BE OPEN GOVERNMENT, RIGHT? TRANSPARENCY, RECORDS MANAGEMENT, YOU ENSURE Z ENSURES THAT YOUR CITY IS COMPLYING WITH ALL THE STATUTORY REQUIREMENTS. SO THESE 12 STANDARDS, IT'S INFORMATION THAT NEEDS TO GET PUT TOGETHER AND PACKAGE THEM IN A BUNDLED UP IN A PDF PACKAGE, PROBABLY ABOUT 200 TO 250 PAGES. SO TALKING ABOUT DOCUMENTATION, RECORDS MANAGEMENT, YOUR CITY SECRETARY'S OFFICE HAS THAT. SHE'S THE CREAM OF THE CROP IN THE STATE OF TEXAS. AND I IT GIVES ME GREAT PLEASURE TO RECOGNIZE Z AND THE CITY SECRETARY'S OFFICE FOR ACHIEVING THIS INCREDIBLE DESIGNATION FOR THE AWARD OF EXCELLENCE. VERY. SO THEY'RE NOT EASY TO COME BY. AND THE AWARD IS BESTOWED FOR TWO, TWO YEARS. SO IN A COUPLE MORE YEARS, SHE'S GOING TO BE APPLYING FOR IT AGAIN. SO WE'LL HAVE SOME PICTURES. AND WE HAVE SOME FORMER TOWN SECRETARIES WITH US. SHIRLEY ROGERS, WHO WAS HERE FOR OUR FIRST PROFESSIONAL TOWN SECRETARY, IF SHE'LL COME UP FOR PICTURES AS WELL. AND THEN BETWEEN SHIRLEY AND AND Z WAS MARY KAISER. AND SO WE'LL GET HER IN THE PHOTO AS WELL. SO GET SOME. HEY, MARY.

COME ON. ALL RIGHT, I THINK. COME ON OVER HERE IN THE MIDDLE. WELL ALL RIGHT, IN THERE. OH.

OKAY. WAIT WAIT WAIT. AND I KNOW DREW FROM NORTH RICHLAND HILLS TWO.

IF YOU THOUGHT THAT WAS GOOD JUST WAIT TILL NOW. JUST A FEW WORDS, MAYOR AND COUNCIL, BEFORE WE PROCEED WITH THE NEXT ITEM. I WANTED TO THANK YOU FOR YOUR SUPPORT.

THANK YOU FOR YOUR GUIDANCE. THANKS TO OUR WONDERFUL TOWN MANAGER. THE STAFF THAT WE HAVE HERE IN NORTH LAKE IS AMAZING. THIS IS NOT AN EFFORT JUST OF MYSELF OR TINA. THIS IS A TRUE EFFORT OF ALL THESE INDIVIDUALS THAT YOU SEE ON THE ON THE BOARD HERE, STARTING BACK IN 1960, EVERY SINGLE ONE OF THESE INDIVIDUALS HAS LED TO THIS CULMINATION. WE'RE VERY THANKFUL. WE'RE VERY APPRECIATIVE OF EVERYTHING THAT YOU ALL DO TO SUPPORT US. AND WE HOPE TO CONTINUE BEING SUCCESSFUL. THANK YOU VERY MUCH. IT'S A TESTAMENT TO THE LEADERSHIP OF THIS TOWN AND THE PEOPLE WHO MAKE THINGS HAPPEN IN THIS TOWN FOR BETTERMENT OF THE ENTIRE COMMUNITY. SO THANK YOU FOR YOUR SERVICE. THANK YOU FOR YOUR ENTIRE OFFICE SERVICE.

[2.C. Presentation - North Texas Municipal Clerks Association (NTMCA) recognizing Town Secretary Zolaina R. Parker, as 2026 Clerk of the Year]

[00:10:04]

SHE MAKES EVERYONE AROUND HER BETTER. AS TOWN SECRETARY FOR THE TOWN OF NORTH LAKE, SHE HAS EARNED THE RESPECT OF ELECTED OFFICIALS, STAFF AND COLLEAGUES THROUGH HER DEDICATION TO TRANSPARENCY, INNOVATION AND EXCEPTIONAL PUBLIC SERVICE. AND TONIGHT'S RECOGNITION IS JUST THE BEGINNING. IN ADDITION TO BEING NAMED NTMCAS2026 CLERK OF THE YEAR, Z HAS ALSO BEEN SELECTED BY OUR ASSOCIATION AS NCA'S NOMINEE FOR THE TEXAS MUNICIPAL CLERKS ASSOCIATION CLERK OF THE YEAR AWARD. THAT IS AN INCREDIBLE HONOR AND A TESTAMENT TO THE IMPACT THAT SHE HAS HAD WELL BEYOND NORTH LAKE. WE ARE EXTREMELY PROUD TO HAVE Z REPRESENT NTMCA AT THE STATE LEVEL, AND WE WISH HER THE VERY BEST AS SHE IS CONSIDERED FOR THAT AWARD. Z IT IS A PRIVILEGE TO RECOGNIZE YOU TONIGHT ON BEHALF OF THE NORTH TEXAS MUNICIPAL CLERKS ASSOCIATION, CONGRATULATIONS ON BEING NAMED OUR 2026 CLERK OF THE YEAR. THIS RECOGNITION IS INCREDIBLY WELL DESERVED, AND WE ARE GRATEFUL FOR EVERYTHING THAT YOU DO FOR OUR PROFESSION AND THE COMMUNITIES THAT YOU SERVE.

YOUR HUSBAND AND SON. YOU HOLD ONE OF THOSE, RIGHT? LOOK OVER HERE. LOOK UP THERE.

GO. THERE YOU GO. I DON'T KNOW IF THERE'S MUCH WE CAN DO TONIGHT THAT'S GOING TO TOP

[2.D. Presentation - Metroport Chamber Annual Report ]

ALL RIGHT. GOOD EVENING, MAYOR AND COUNCIL IT IS. I CAN'T BELIEVE I FEEL LIKE I JUST WAS HERE DOING MY ANNUAL PRESENTATION. IT'S I'M HAPPY TO BE HERE, AS ALWAYS, TO GIVE YOU AN UPDATE ON THE METRO CHAMBER. WHOOPS. DON'T HIT THE HOLD ON. LET'S GO BACK. THANK YOU.

WHOEVER'S DOING THAT FOR ME. ALL RIGHT. THERE WE GO. ALL RIGHT. QUICKLY. YOU ALL HAVE A PACKET. AND IN IT HAS OUR ANNUAL REPORT THE MEMBERSHIP, INVESTMENT AND BENEFITS FOR THE UPCOMING YEAR. AN OVERVIEW OF WHAT THE MEMBERSHIP BENEFITS ARE FOR OUR BUSINESS MEMBERS. A BRIEF SYNOPSIS OF YOUR REGIONALIZE YOUR REACH. OUR ANNUAL RELOCATION GUIDE, AND THEN ALL THE DIFFERENT THINGS THAT WE HOST THROUGHOUT THE YEAR. SO THAT'S IN YOUR PACKET.

OKAY, I AM GOING TO HIT ENTER AND SEE IF THAT WILL WORK. THERE WE GO. OKAY. I MISSED A SLIDE. WITH THAT. I'M GOING TO GET THIS YET. HOLD ON. OKAY, SO WE ARE YOUR BUSINESS COMMUNITY AND PROUDLY REPRESENTING THE TOWN OF NORTH LAKE. AND. I KEEP MISSING A. THEY'RE JUMPING LIKE EVERY TWO FOR SOME REASON. AND MAYBE I'M HITTING THE WRONG THING. I GO TO THE NEXT ONE.

[00:15:05]

AND THEN, OF COURSE, WE HAVE SMALL, MEDIUM AND OF COURSE, THE LARGE BOARDROOM OPPORTUNITY FOR OUR MEMBERS TO USE. AND SOME OF THESE ARE ALSO INCLUDED IN MEMBER BENEFITS. AND THEN WE HAVE 12 LEASABLE OFFICES DESIGNED AS INCUBATOR SPACE FOR ENTREPRENEURS TO HANG A SHINGLE, HAVE A BUSINESS ADDRESS, AND HOPEFULLY GROW TO A BRICK AND MORTAR AND REMAINING IN OUR REGION. THEY'RE ALSO A GREAT LOCATION FOR SMALL REGIONAL OFFICES. AND WE DO HAVE SEVERAL COMPANIES NOW THAT ARE USING IT FOR THAT. OF COURSE, WE COULDN'T DO EVERYTHING WE DO WITHOUT THE TREMENDOUS PARTNERSHIP OF OUR LARGER INVESTORS. AND I WANT TO THANK THE TOWN OF NORTHLAKE FOR CONTINUING YOUR INVESTMENT. IT HELPS US TREMENDOUSLY WITH ALL THE THINGS THAT WE DO. AND THEN, OF COURSE, OUR EVENT PARTNERS, THE YOU COME TO ALL OF OUR EVENTS AND YOU KNOW WHAT IT TAKES TO TO PUT THEM ON. AND IT TAKES A LOT OF MANPOWER AND FINANCIAL SUPPORT. AND SO WITHOUT THAT SUPPORT, WE COULDN'T DO WHAT WE DO. AND AGAIN, THANK YOU TO THE TOWN OF NORTHLAKE FOR BEING A, A PART OF EVENT PARTNER. AND THEN EVERY YEAR WE DO A TRIP. AND SO THIS YEAR IS A CROATIA AND WE ARE SOLD OUT FOR IT. AND OF COURSE, YESTERDAY AT THE LUNCHEON, I MADE THE ANNOUNCEMENT THAT NEXT YEAR'S TRIP WILL BE COVERING GERMANY, ITALY AND AUSTRIA. SO I ENCOURAGE YOU TO TO JOIN US NEXT YEAR. THIS IS JUST A QUICK LOOK AT WHERE YOU FIND US WITH WITH THE FACEBOOK, THE INSTAGRAM, LINKEDIN, AS WELL AS WE HAVE A MEMBER PLUS APP AND OF COURSE THE, THE WEBSITE. AND THEN IN YOUR PACKET, YOU ALSO HAVE OUR CONNECT CARDS. WE'RE VERY MUCH A BIG BELIEVER IN QR CODES. IT KEEPS THINGS UP TO DATE AND RELEVANT, ESPECIALLY AS WE'RE BRINGING NEW MEMBERS ON BOARD. THAT'S THE BACK OF THE CARD. AND THEN JUST A FEW PICTURES FROM THE THINGS THAT

[00:20:01]

WE DID A LOT OF RIBBON CUTTINGS THIS PAST YEAR, WHICH HAS BEEN AWESOME. YES, YES. AND THEN JUST IN CLOSING, YOU KNOW, WE ARE YOUR REGIONAL CHAMBER. WE FOCUS ON STRENGTHENING THE ENTIRE REGIONAL ECONOMY WHILE STILL SUPPORTING EACH COMMUNITY INDIVIDUALLY. BUSINESSES INCREASINGLY OPERATE ACROSS CITY BOUNDARIES. OUR REGIONAL APPROACH CREATES BROADER NETWORKING OPPORTUNITIES, STRONGER ADVOCACY, AND GREATER VISIBILITY. AND WE THANK YOU FOR THE NORTH LAKES TREMENDOUS SUPPORT THROUGHOUT THE YEARS, AND I'M HAPPY TO ANSWER ANY QUESTIONS THAT YOU MIGHT HAVE. I DON'T KNOW IF THERE'S ANY QUESTIONS, BUT WE'RE VERY HAPPY TO SHARE WITH THE COMMUNITY PUBLICLY HERE THAT OUR LARGEST TENANT IN NORTH LAKE, MP MATERIALS JOINED THE CHAMBER AS WELL. YES, AND ACTUALLY A SPEAKING ENGAGEMENT THE LAST LUNCHEON. SO THAT WAS INCREDIBLE TO SEE THEM ALREADY INVOLVED IN THE COMMUNITY AND THE LOCAL BUSINESSES. SO WE'RE SUPER HAPPY TO SEE THAT GOING ON. YES, WE ARE TOO. AND THE AMOUNT OF JOBS THAT THEY'RE GOING TO BRING TO THE REGION IS TREMENDOUS. SO WE'RE EXCITED ABOUT THAT. SO THANK YOU. THANK YOU FOR YOUR PARTNERSHIP. THANK YOU SALLY. ALL RIGHT. MR. JOHN,

[2.E. Briefing - Fiscal Year 2026 Third Quarter Investment & Financial Report (Apr - Jun 2026) ]

75% OF THE FISCAL YEAR HAS TRANSPIRED. WE'VE COLLECTED 80% OF OPERATIONAL REVENUES. WE STILL HAVE REVENUES RELATED TO WATER AND SEWER COMING IN SALES TAX, WHICH IS ALWAYS TWO MONTHS BEHIND AND 95% SO FAR, OUR BUDGET OF PROPERTY TAXES AND ASSESSMENTS HAVE BEEN COLLECTED.

88% OF BUDGET SALES TAXES, SALES TAXES IS OVER, OVER PERFORMING RIGHT NOW. AND I'LL TALK A LITTLE BIT ABOUT THAT ON THE NEXT SLIDE, JUST TO GIVE YOU SOME CONTEXT. AND THEN 42% OF OPERATIONAL EXPENDITURES, 64% OF PERSONNEL EXPENDITURES TO DATE, AND THEN $26 MILLION WORTH OF CAPITAL PROJECTS SO FAR. JUST A FEW QUICK HIGHLIGHTS. AS I MENTIONED, SALES TAXES, SALES TAXES IS OVERPERFORMING THIS YEAR. THAT'S WHAT WE HAD ORIGINALLY PROJECTED. REGULAR SALES TAXES CAN BE SPLIT BETWEEN REGULAR CONTRIBUTIONS FOR SALES TAX, REGULAR COLLECTIONS, AND THEN ONE TIME SALES TAX THAT WE DON'T EXPECT TO SEE COME BACK AGAIN. THAT'S TYPICALLY CONSTRUCTION RELATED SALES TAX. SO RIGHT NOW WE'VE COLLECTED 4% OVER THE PRIOR YEAR FOR JUST OUR REGULAR COLLECTIONS. AND IN TERMS OF ONE TIME WE'VE DONE AN ASTOUNDING 1 MILLION. WE ACTUALLY RECEIVED ANOTHER 650 000 TODAY IN SALES, IN SALES TAX AND 220,000 OF THAT I'M ESTIMATING IS PROBABLY RELATED TO CONSTRUCTION SALES TAX. THE BENEFIT OF THIS, THIS IS ONE ONE TIME FUNDS THAT WE CAN USE FOR PROJECTS, VEHICLE PURCHASES, LAND PURCHASES. BUT IT IS TIED TO HAVING THAT POLICY OF ENCOURAGING THROUGH OUR EDC AND CDC AND OUR FUTURE MDD, TO REIMBURSE COMPANIES FOR CITING THEIR SALES TAXES HERE, THE EDC, CDC AND THE FUTURE MDD. THEY REFUND THEIR PORTION OF THE SALES TAX, BUT IT IS A BUMP TO THE GENERAL FUND. THE GENERAL FUND COLLECTS THAT PORTION AND KEEPS IT. SO IT'S BEEN A BOON TO OUR GENERAL FUND AND HELPING OUR HEALTH CARE COSTS. AND THEN WITH CAPITAL PROJECTS, JUST WANT TO HIGHLIGHT 26 MILLION IS A LARGE NUMBER. WE'VE DONE. 57% OF THAT IS RELATED TO THE STAR CENTER BUILDING INFRASTRUCTURE, WHICH WE ARE WINDING DOWN. WE'RE PRETTY MUCH JUST HAVE RETAINAGE LEFT TO PAY ON THAT PROJECT. 22% WAS FOR THE HOTEL CONFERENCE CENTER PURCHASE EARLIER THIS FISCAL YEAR, 11% FOR ROAD AND WATER LINE PROJECT. AND RIGHT NOW, 10% IS JUST KIND OF SPLIT AMONG VARIOUS WATER PROJECTS. AND THAT'S IT FOR THE QUARTERLY REPORTS. HAPPY TO ANSWER ANY QUESTIONS. ANY QUESTIONS. CONTINUE ON. OKAY. SO WE RELEASED THE PROPOSED

[2.F. Briefing - Fiscal Year 2027 Proposed Budget: Overview & Summary of Changes ]

[00:25:03]

AND NEW VALUE IS CURRENTLY 9% OF TAXABLE VALUE. IT WAS 16% HIGHER THAN THE PRIOR YEAR. AND THEN EXEMPTIONS, WE DID SEE A LARGE INCREASE IN EXEMPTIONS. THE USE OF HOMESTEAD, SPECIFICALLY AT 21%. AND THEN WE WANT TO JUST SHOW THIS SLIDE DIVING A LITTLE BIT MORE INTO THE COMMERCIAL SIDE OF THE OF TAX COLLECTIONS. SO ONE OF COUNCIL'S GOALS AND DIRECTIONS TO STAFF HAS BEEN TO MAKE SURE WE DIVERSIFY OUR REVENUE BASE, OUR REVENUE SOURCES. ONE WAY WE DO THAT IS INCREASING OUR COMMERCIAL TAX BASE SO THAT IT TAKES LESS PRESSURE OFF RESIDENTS. AND THAT STRATEGY HAS BEEN TO BUILD UTILITY INFRASTRUCTURE THAT ATTRACTS COMMERCIAL. THAT COMMERCIAL THEN MOVES IN AND INCREASES OUR TAX BASE, INCREASES OUR SALES TAX. BUT IT DOES REQUIRE DEBT THAT WE HAVE TO USE TO FINANCE THOSE INFRASTRUCTURE IMPROVEMENTS, SPECIFICALLY UTILITY. WHAT WE'RE SEEING, THOUGH, IS AS THOSE COMMERCIAL PROPERTIES COME ONLINE AND START PAYING THOSE TAXES, IF YOU LOOK AT THE CHART, YOU CAN SEE IT'S SPLIT BETWEEN M AND O COLLECTIONS AND THE LIGHT, COLOR AND DEBT COLLECTIONS IN THE DARK COLOR. AND THIS IS JUST FOR COMMERCIAL INDUSTRIAL PROPERTIES. YOU CAN SEE THAT THE DEBT RATE COLLECTIONS HAVE BEEN TRENDING UP OVER THE YEARS. AND THE AMOUNT THAT WE'RE USING TO HELP SUPPORT OUR UTILITY, OUR UTILITY DEBT, AND OUR UTILITY FUND WE'RE SENDING OVER IS THAT ORANGE LINE RIGHT THERE. AND YOU CAN SEE THAT OUR DEBT COLLECTIONS CONTINUE TO EXCEED THE AMOUNT THAT WE'RE USING AND NEED TO HELP SUPPORT OUR UTILITY FUND TO HELP AVOID RATE INCREASES RELATED TO DEBT ISSUANCES, AND THAT EVEN WE'RE SEEING A PORTION THAT CAN ACTUALLY BE TURNED BACK INTO AND SENT OVER TO DO THINGS LIKE ROAD PROJECTS. IF THERE'S NO QUESTIONS ON THE PROPOSED TAX RATES, WHICH WILL REHASH, AGAIN, WITH THE TAX RATE HEARING IN A WEEK, I CAN GO AHEAD AND I'LL JUST CONTINUE ON THE BUDGET SUMMARY. SO YOU'VE ALL SEEN THESE SLIDES ALREADY, BUT JUST REALLY QUICKLY I'LL GO OVER THEM. SO THE GENERAL FUND 15.16 MILLION IN REVENUES, EXPENDITUR. REVENUES SHOULD EXCEED EXPENDITURES BY ABOUT 48,000.

AND THEN THE ENDING FUND BALANCE WE'RE ESTIMATING AT 6 MILLION. SO THAT'LL BE 40% OF OPERATING COSTS. AND THEN WE ARE STILL PROPOSING THE USE OF UP TO 1.5 MILLION FOR A ONE TIME PAYMENT TO THE TMRS TEXAS, TEXAS MUNICIPAL RETIREMENT SYSTEM TO JUST HELP PAY DOWN THE UNFUNDED LIABILITY, DECREASE FUTURE RATE INCREASES, AND THEN ALSO SET UP THE TOWN TO POTENTIALLY ADOPT A 70% REPEATING COLA WITH THE UTILITY FUND, 31.5 MILLION REVENUES, 29.7 MILLION EXPENDITURES AND REVENUES SHOULD EXCEED EXPENDITURES BY 1.7 MILLION. A LOT OF THAT IS DRIVEN BY JUST A TRANSFER OF FUNDS THAT WE HAD FROM THE CANYON FALLS MUD THAT WILL HELP TO INCREASE OUR FUND BALANCE AND OUR CASH RESERVES, GETTING US CLOSER TO THAT 50%

[00:30:02]

SO AT 468,000 FROM THE GENERAL FUND, THAT'S WHERE THEY'LL ALL BE LANDING. WE HAVE TWO CORPORALS FOR POLICE, A PATROL OFFICER AND ACCREDITATION OFFICER, AND THEN ALSO A MAINTENANCE WORKER FOR STREETS WITH PUBLIC WORKS. THE MAINTENANCE WORKER AND THE PATROL OFFICER HAVE BEEN BUDGETED AS MID-YEAR HIRES INSTEAD OF AT THE BEGINNING OF THIS FISCAL YEAR. INTERNAL SERVICES IS OUR TECHNOLOGY, EQUIPMENT AND BUILDING COSTS 1.1 MILLION FOR TECHNOLOGY, 1.3 MILLION FOR EQUIPMENT SERVICES. A BULK OF THAT IS FOR REPLACEMENTS. AND YOU'LL SEE ON THIS SLIDE OVER HERE THAT THE SEWER VAC TRUCK AND THAT REPLACEMENT COLUMN THERE THAT IS EATING MOST OF THAT $1 MILLION REPLACEMENT COST, IT'S 710,000. BUT OTHER THAN THAT, YOU HAVE NEW EQUIPMENT WITH POLICE PATROL VEHICLES AND SOME EQUIPMENT FOR PUBLIC WORKS, AND THEN SOME EQUIPMENT FOR POLICE AGAIN IN THE REPLACEMENT COLUMN, ALONG WITH SOME ADDITIONAL EQUIPMENT FOR PUBLIC WORKS, AND THEN FOR OUR CAPITAL PROJECTS.

48.2 MILLION IS WHAT WE HAVE BUDGETED SO FAR. ONCE AGAIN, I'LL JUST ALWAYS REITERATE WITH CAPITAL, WE PLAN FOR IT. THAT DOESN'T MEAN IT ACTUALLY FOLLOWS THE PLAN. THINGS HAPPEN, SCHEDULES GET PUSHED BACK, COSTS CHANGE BASED ON THE MARKET, BUT WE'RE PLANNING ON 15.8 MILLION WITH ROADS, 16.2 MILLION WITH WATER AND SEWER, AND 16.2 MILLION WITH BUILDING AND OTHER BULK OF THAT BUILDING. ANOTHER WILL BE THE PUBLIC WORKS BUILDING, WHICH SHOULD BE BEGIN CONSTRUCTION HERE IN THE NEXT MONTH OR SO. AND THEN AS FAR AS OUR DEBT GOES, IF YOU LOOK AT THE CURRENT DEBT SERVICE RATE IS 13 MILLION THIS YEAR, A LOT OF THAT, THE INCREASE FROM LAST YEAR'S PRIMARILY DUE TO US, WE'RE FRONTLOADING THE PAYMENTS FOR THE 2026 CEOS TO TRY AND HELP REDUCE INTEREST OVER THE LONG TERM AND SAVE THE TOWN SOME MONEY WHEN IT COMES TO OUR DEBT SERVICE. AND THEN DEBT ITSELF IS PAID FROM A VARIETY OF DIFFERENT SOURCES, NOT JUST PROPERTY TAXES. ALWAYS LIKE TO HIGHLIGHT THAT WE TRY TO USE AS MANY SOURCES AS POSSIBLE TO HELP SUPPORT DEBT. AND THEN A SLIDE. THE LAST SLIDE IS JUST THIS SUMMARY OF CHANGES. SO THESE ARE THE PRIMARY CHANGES THAT HAVE OCCURRED SINCE THE JULY 21ST PROPOSED BUDGET WAS HANDED OUT TO THE TOWN AND YOU ALL ON THE WEBSITE. SO WE DID SEE AN INCREASE IN HEALTH CARE COSTS. IT'S UP 8% FROM OUR ORIGINAL ORIGINALLY BUDGETED, A 20% INCREASE THAT HAS GONE UP TO A 28% INCREASE. SO AND ACCORDING TO OUR CONSULTANT, THAT'S SOMETHING THAT WE'RE SEEING ACROSS THE MARKET. IT'S NOT JUST US, BUT WE FORTUNATELY HAVE THE FUNDING FOR THAT. WE MANAGED THAT BY OFFSETTING IT WITH THE MIDYEAR HIRES, MOVING THE POLICE OFFICER AND STREET MAINTENANCE WORKER TO BEING MIDYEAR TO HELP OFFSET SOME OF THOSE COSTS. WE'VE ALSO FINE TUNED REVENUES. WE CONTINUE TO GET YEAR TO DATE DATA AS WE DO THIS PROCESS, AND SO WE FINE TUNE IT TO HELP MAKE SURE THAT WE'RE PROVIDING THE BEST ESTIMATES. WE DECREASE SOME OF THE ALLOCATIONS FOR THE EQUIPMENT FUND FROM THE GENERAL THIS YEAR. BECAUSE IF YOU ALL REMEMBER, WE MOVED TO A LEASE PROGRAM FOR POLICE, BUT WE STILL PLAN THIS CURRENT FISCAL YEAR AS IF WE WERE GOING TO BUY ALL THE VEHICLES UP FRONT. SO WE'VE DEPOSITED A LARGE CHUNK OF MONEY FOR POLICE VEHICLES, AND WE'RE GOING TO USE SOME OF THAT THIS NEXT YEAR. WE'RE ALSO DECREASE THE BUDGET FOR BUILDING RENTAL COSTS. WE FINISHED A REVIEW OF OUR RENTAL CONTRACTS AND THEIR CONTRACTUAL PRICE INCREASES. AND WE'RE ABLE TO REDUCE IT BASED ON THAT. AND THEN WE SAW SOME DECREASES WITH ROAD CAPITAL PROJECTS. AND THEN WE'RE ALSO UTILIZING DEVELOPER CONTRIBUTIONS THAT WILL BE COMING IN HERE IN SEPTEMBER FOR DEBT SERVICE TO HELP SUPPORT DEBT SERVICE PAYMENTS RELATED TO THE CHADWICK COMMONS INFRASTRUCTURE. AND THEN LAST OF ALL, JUST THE NEXT STEPS. WHAT WE'RE ALMOST TO THE END HERE. AUGUST 13TH IS TODAY. WE GOT THE PUBLIC HEARING, WHICH COUNCIL WILL THEN HOLD A PUBLIC HEARING AND THEN POSTPONE ADOPTION OF THE BUDGET UNTIL THE 20TH. IT'S JUST A WEIRD FLUKE OF THE STATE LEGISLATURE THAT THE STATE LEGISLATURE REQUIRES US TO HAVE THE TAX RATE HEARING AND ADOPT THE TAX RATE BEFORE WE CAN ADOPT THE BUDGET. BUT YOU HAVE A TIMELINE OF ONCE YOU HOLD THE TAX RATE HEARING, YOU HAVE TO COMPLETE IT WITHIN SEVEN DAYS, BUT YOU CAN'T HOLD THE TAX RATE ADOPTION THE SAME DAY THAT YOU HOLD THE BUDGET HEARING. SO WE PLAYED CHESS WITH THE SCHEDULE. AND THE 20TH IS WE'LL HOLD THOSE ADOPTIONS AND THEN OCTOBER 1ST BEGIN THE NEW FISCAL YEAR. AND AS ALWAYS, THE BUDGET'S ONLINE FOR ANYBODY WHO WOULD LIKE TO TAKE A LOOK AT THAT. SO JOHN LIKES QR CODES TO. SO I JUST I'M NOT AN OVERACHIEVER, THOUGH. I ONLY HAVE ONE. SO. SO YOU MADE IT ALL WORK. MADE IT ALL WORK. SO

[00:35:07]

ANY QUESTIONS FOR JOHN BEFORE HE STEPS BACK? OKAY. ALL RIGHT. THANK YOU JOHN. APPRECIATE THE CONCISE INFORMATION AS ALWAYS. ALL RIGHT. IT IS 6:06 P.M. I DON'T HAVE ANY CARDS FOR PUBLIC INPUT, BUT IF ANYBODY WOULD LIKE TO COME SPEAK ON ANY TOPIC, PLEASE COME UP AND INTRODUCE YOURSELF. ANYBODY WANT TO COME TALK TO US? I GUESS NOBODY WANTS TO COME TALK TO US TODAY.

ALRIGHT, WELL THEN WE WILL GO AHEAD AND CLOSE PUBLIC INPUT. AND NEXT ON THE AGENDA IS

[4. CONSENT ITEMS ]

[5.A. Consider adoption of an Ordinance, of the Town Council of the Town of Northlake, Texas, adopting the Proposed Budget for Fiscal Year 2026-2027 beginning on October 1, 2026, and ending on September 30, 2027, for the Town of Northlake, Northlake Public Improvement District No. 2 (The Highlands), Tax Increment Financing Zone No. 1 (TIRZ-Canyon Falls), Tax Increment Financing Zone No. 2 (TIRZ-Catherine Branch), and Tax Increment Financing Zone No. 3 (TIRZ-Lifestyle Center) i. Public Hearing ii. Consider Approval ]

[5.A. VOTE]

VERY GOOD. WE'LL SEE. WE'LL SEE YOUR GUESS. ARE YOU GOING TO DO WHAT YOU TOLD ME YOU WANTED TO

[6. EXECUTIVE SESSION ]

[7. RECONVENE INTO OPEN SESSION ]

[00:40:20]