Rounding out the night: extending our public health agreement with Dallas County, a collections contract for the new Civil Citation program, this year’s Cultural Arts grant awards, and a first look at a proposed short-term rental framework.

The Work Session starts at 6:00 PM in the Work Session Room at City Hall (200 N. Fifth St.), and the public is welcome to attend or comment on any Work Session item. If you can’t make it, drop me a line at mayor@garlandtx.gov. If you’ve found these notes useful, please share them with a neighbor.

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As always, my comments are in bold italics.

CONSIDER THE CONSENT AGENDA

WRITTEN BRIEFINGS

Council may ask for discussion, further information, or give direction to staff on an item posted as a written briefing.

1. Amendment to Interlocal Agreement for Public Health Services with Dallas County Health & Human Services and Consent to Sublicense Agreement between Dallas County and St. Vincent de Paul Charitable Pharmacy

Council is requested to consider approving an amendment extending the interlocal agreement between the City of Garland and Dallas County Health & Human Services for providing public health services within the City of Garland, and a related consent to a proposed Sublicense Agreement between Dallas County and St. Vincent de Paul Charitable Pharmacy for pharmacy services. Unless otherwise directed by Council, this item will be scheduled for formal consideration at the September 1, 2026 Regular Meeting.

Submitted by: Mistie Gardner, Managing Director – Emergency Management

An interlocal agreement — an “ILA” — is simply a contract between two units of government to share a service instead of each building it separately. Chapter 791 of the Texas Government Code allows it, and cities use them constantly.

Here’s the background. When the COVID-era grant money that had been propping up staffing at the Garland Public Health Clinic ran out in 2024, we had a choice: absorb the full cost of running a city health department ourselves, or partner with the county that already runs one. We chose the partnership. Dallas County Health and Human Services took over clinic operations, hired the clinic staff, and became Garland’s official Health Authority, while continuing to deliver services out of our City-owned building on Carver Street. That original deal was a three-year term.

Amendment No. 1 extends it another 48 months, through July 27, 2031. Same arrangement, longer runway. It keeps public health services physically located in Garland while the county’s infrastructure and funding capacity carry the cost.

However, the Facility Use Agreement bars the county from subletting our building without written consent from the City. The county is now asking for that consent so St. Vincent de Paul Charitable Pharmacy can operate out of a portion of 206 and 232 Carver Street, from August 18, 2026 through July 27, 2031. St. Vincent de Paul runs charitable pharmacies serving patients who can’t afford their prescriptions.

Putting one inside the building where people already go for care is the kind of co-location that just makes sense — you see the doctor and pick up the medicine in the same trip. The resolution keeps Dallas County fully on the hook for every obligation under the original agreement, so the sublicense doesn’t let anyone off the hook for the building.

2. Code Compliance Civil Citation Collections Contract

Council is requested to consider approving a contract for collecting past due Civil Citation fees. Unless otherwise directed by Council, this item will be scheduled for formal consideration at the September 1, 2026 Regular Meeting.

Submitted by: Brian Morris, Director of Code Compliance

This is the follow-through on the Civil Citation Program we worked through this spring. Quick refresher: rather than running every code violation through Municipal Court, civil citations let Code Compliance assess a fee administratively — with that 90-day “Red Tag” grace period first, because compliance is the goal, not revenue.

But a fee only works if it can actually be collected. This contract is the back end of the program. The City would retain Perdue Brandon Fielder Collins & Mott, LLP to pursue accounts at least 60 days past due, and the firm gets 25% of what it actually collects — no collection, no fee, and nothing owed on accounts we never turn over. The initial term is one year, auto-renewing annually, with either side able to walk away on 30 days’ notice. Two provisions worth knowing about: the firm won’t report Garland’s delinquent accounts to credit bureaus and won’t accrue interest on them, and it can’t file suit without the City’s approval first.

VERBAL BRIEFINGS

Council may ask for discussion, further information, or give direction to staff on an item posted as a verbal briefing.

3. Overview of the November 3rd Tax Rate Election

Staff will review the November 3, 2026, Tax Rate Election and the associated impacts to the City’s tax rate, FY 2026-27 budget, and services under each election outcome.

Presenters: Mike Betz, City Manager; Matthew Watson, Assistant City Manager

This is the main event tonight, and it’s the item I’ve been writing about all summer — the “Swap and Drop.” If you’ve read those posts, the mechanics will be familiar. In this presentation, staff will layout, line by line, exactly what’s funded at the adopted rate and what isn’t.

One thing to understand about the format: this briefing is informational by design. Section 255.003(b) of the Texas Election Code bars the City from spending public money to advocate for or against a ballot measure, so the presentation states the ballot language, the numbers, and the consequences of each outcome, and stops there. Staff isn’t allowed to tell you how to vote, and this briefing doesn’t try to.

The short version of the mechanics. Our tax rate has two halves. Interest & Sinking (I&S) pays debt we’ve already taken on for streets and facilities. Maintenance & Operations (M&O) pays for daily operations like police, fire, streets, parks, and libraries.

We’ve paid down debt well enough to cut I&S by about four cents — from $0.401089 to $0.359900. We move roughly three of those cents to M&O, which goes from $0.288657 to $0.320000. The leftover cent comes off the total: the rate drops from $0.689746 last year to $0.679900. Because state law caps how fast the M&O side can grow without a vote, and $0.679900 sits about 3.7 cents above our voter-approval rate of $0.643254, it goes to the voters. That’s why there’s an election even though the combined rate is going down.

What the adopted rate funds that the voter-approval rate does not — $9,731,275 in total. Staff splits it into two buckets.

New services, $4,930,841:

• 10 police officer positions and 4 patrol Tahoes — $2,098,762

• 9 firefighter positions plus an overtime adjustment — $1,722,560

• 8 emergency dispatcher positions — $756,424

• 1 Parks field supervisor and a truck — $165,970

• 1 Code operations and special projects administrator — $139,566

• 3 animal care technician positions — $47,559

Maintaining what we already have, $4,800,434.

This is the bucket residents will actually feel. Park and landscaping maintenance across 583 acres and 312 locations. Library materials: 25,610 new titles at the adopted rate versus 10,900 at the voter-approval rate. City special events: nine events including Art Made Here, the Asian American Heritage Festival, Juneteenth, Fall Fest, Día de los Muertos, Sensory-Friendly Christmas, and twelve Music Made Here shows — versus two, Red, White & You and Christmas on the Square. Also park vehicle replacement, $90,000 for extra police patrol hours in our parks, after-hours and weekend magistrate services, crossing guard pay adjustments, the wildflower program, and $2.56 million into General Fund reserves.

If the proposition fails, none of that is discretionary for Council to sort out later. Section 26.07(e) of the Tax Code automatically sets our rate at $0.643254, and Council would have to come back and amend the budget to remove or reduce the positions and services above.

What it means for a tax bill, using staff’s numbers: on a home with $300,000 in taxable value, the annual City bill is $2,069 last year, $2,040 at the adopted rate, and $1,930 at the voter-approval rate.

And the two things I said in August that I’ll keep saying. The ballot is required by state law to describe this as a tax increase, because the M&O side goes up — even though with a “Yes” vote the total rate goes down. Both things are true at once. And a lower rate is not automatically a lower bill: if your appraised value rose enough, your bill can still go up. The City sets the rate; the Dallas Central Appraisal District sets your value. VoteGarland.com has a calculator where you can plug in your own home value instead of taking my word for any of this.

4. Update on Upcoming City Facility Openings

Staff will provide an update on the construction status, anticipated openings, and ribbon-cutting activities for Fire Station No. 1, Fire Station No. 7, the Senior Center, and the Jack Coleman Tennis Center.

Presenter: Michael Buchler, Capital Project Management Director

This is the fun one. Four facilities from the 2019 Build Garland bond program are finishing at once, and they all open within thirty days of each other. Mark your calendars:

• Jack Coleman Tennis Center — opening October 1. Courts are done and the clubhouse is nearly there. When it reopens it’ll have 18 pickleball courts, 5 tennis courts, and one hybrid court that converts to either, plus LED court lighting, a renovated clubhouse, and new restrooms.

• Fire Station No. 7 — ribbon cutting October 10 at 2:00 PM. Substantial completion September 12, final completion October 2. This replaces an aging neighborhood station.

• Fire Station No. 1 — ribbon cutting October 10 at 4:00 PM. Substantial completion August 27, final completion September 30. This is the replacement for the old Central Station on Austin Street, which served Garland for decades with cramped living and support space.

• Garland Senior Activity Center — preview and ribbon cutting October 30 at 10:00 AM. Substantial completion October 26, final completion November 23. The original center was demolished for a full replacement; the new building was designed from the ground up around senior programs and gathering space.

Two fire stations in one afternoon is a good day. If you voted for the 2019 bond program, this is the month you get to walk through what you paid for. Come to the ribbon cuttings — I’d love to see you there.

5. Garland Cultural Arts Commission, Inc. Hotel Occupancy Tax Revenue Budget, Subgrant Recipients and Hotel Occupancy Tax Program Management Agreement

Council is requested to consider the Garland Cultural Arts Commission, Inc. Hotel Occupancy Tax Revenue Budget, Subgrant Recipients and Hotel Occupancy Tax Program Management Agreement, and authorization of the City Manager’s execution of the agreement between the City of Garland and GCACI. Unless otherwise directed by Council, this item will be scheduled for formal consideration at the September 15, 2026 Regular Meeting.

Presenter: Amy Rosenthal, Cultural Arts Director

Texas cities can levy a hotel occupancy tax — HOT — of up to 7% on overnight stays, and state law strictly limits what that money can be spent on. Promoting the arts is one of the nine allowed uses, and generally up to 15% of HOT revenue can go toward arts.

Note what this is not: it is not your property tax money. It’s paid by people staying in Garland hotels. Next time you travel out of town, look at your hotel bill and see how much you are being taxed. It’s a convenient way to get money out of people who are not your constituents.

Since 1987, Garland has routed that arts share through the Garland Cultural Arts Commission, Inc. — a separate 501(c)(3) whose commissioners the City Council appoints — which runs the grant program. Over its lifetime the program has put more than $2 million into local arts and historical organizations.

This year’s agreement is $160,330, covering HOT revenue from Q3 2025 through Q2 2026. Of that, $160,000 goes out as grants. Eleven organizations applied requesting $242,500, so the commission had to make difficult choices as to who gets funded. Their recommended awards:

• Garland Summer Musicals — $37,000

• Garland Symphony Orchestra — $31,000 (plus $2,000 youth subsidy waiver)

• Dallas Ballet Company — $31,000

• Garland Civic Theatre — $25,000 (plus $2,000 youth subsidy waiver)

• Breitling Performing Arts — $11,500 (plus $2,000 youth subsidy waiver)

• Company of Rowlett Performers — $9,000 (plus $2,000 youth subsidy waiver)

• Reel Owl Cinema Booster — $5,500

• Magic 11th Street — $4,500

• Accolade Community Theatre — $4,000

• Prayaanam — $1,500

One applicant, Peoples Centered Lighthouse, was not funded this cycle.

The commission tightened the grant rules in 2026 to line up better with what state law actually allows. HOT-funded arts grants have to promote tourism and the hotel and convention industry, which means funded programs must be open to the public, held inside Garland, and something more than general operations — salaries, administrative overhead, arts education, and capital costs are all off the table now. Grantees also have to file a final report with attendance, how many visitors came from 50+ miles away, marketing samples, and hotel nights generated. That’s a higher bar than in past years, and it’s the right one if we’re going to keep using tourism dollars for this.

6. Amendment to Sections 2.50, 2.51, and 2.52 of the Garland Development Code — Zoning of Short-term Rentals

Council is requested to consider amending the GDC to include Short-term Rentals as a land use category and provide special standards regarding the same. If Council supports the proposed framework, staff recommends advancing the amendments through required Plan Commission review, public notice and hearings, and subsequent Council consideration.

Presenter: Brian England, City Attorney

Short-term rentals — think Airbnb and VRBO — are currently regulated in Garland through a patchwork spread across Chapters 26 and 32 of the Code: a single-family rental permit, inspections, contact and notice requirements, stay limits, parking and conduct rules. The proposal would pull all of that into one new article in Chapter 32 and, for the first time, treat STRs as their own land use category in the Garland Development Code.

The substance of what’s proposed:

• New STRs would be allowed by right in Light Commercial and Heavy Commercial districts.

• In Multifamily, they’d require a Specific Use Provision — meaning a case-by-case approval, with notice and hearings.

• Everywhere else, including single-family neighborhoods, new STRs would be prohibited unless a Planned Development ordinance expressly allows them.

• An STR would be defined as one entire dwelling unit rented to one booking party for between 48 consecutive hours and 30 consecutive days.

• Annual permits and inspections, occupancy and off-street parking caps, owner/operator response requirements, and neighbor notification would all be spelled out.

Existing operators aren’t simply switched off. An STR lawfully operating under a valid City permit on the effective date could keep going as long as the same owner holds the permit, stays compliant, and doesn’t expand the use. That continuation right ends on most ownership transfers, a late renewal, surrender or revocation, abandonment, or expansion.

The legal timing here is not an accident. In June, the Fifth Circuit decided Marfil v. City of New Braunfels and recognized residential integrity and neighborhood character as legitimate reasons for a city to regulate, upholding zoning-district distinctions between short-term rentals and longer leases. Texas appellate courts have reached similar conclusions, and have distinguished a general right to lease your property from a claimed vested right to rent it for fewer than 30 days — concluding that Texas common law recognizes no such categorical right. Staff has structured the continuation provision as a policy choice rather than a recognition of any vested right, which is the careful way to do it.

Tonight is a direction-setting conversation, not a vote. If Council supports the framework, it goes to Plan Commission and comes back through public hearings, which is when neighbors and operators alike will have their say. Staff recommends approval. This one affects people’s homes and people’s income, so if you have a view, that’s the process to plug into.

While many short term rental properties operate in Garland with no problems, several have become a nuisance to the neighborhoods where they are located. For new ones to operate, they would have to come to City Council to ask for approval of a Planned Development—which is a zoning change application presented to the City Council with a public hearing. Planned developments generally have tighter zoning restrictions than our standard codes and an expiring time limit for a use. Effectively this puts the power of allowing new STRs in the hands of the Council.

7. Update on Right Site for EMS Triaging

The Garland Fire Department and Garland Police Department will provide Council with an update on EMS triaging utilizing Right Site.

Presenters: Mark Lee, Fire Chief; Scott Vornberg, Interim Chief of Police

We approved this back in February, it went live in May, and now we have data to share. Quick reminder of what RightSite is: a healthcare partner that plugs into our 911 dispatch so that low-acuity calls — the ones that are real but not emergencies — can be routed to a board-certified physician by telehealth and to the right level of care, instead of automatically sending an ambulance. Patient Navigators then arrange the follow-up. It costs the City nothing; it’s funded through hospital network grants, because keeping non-emergent cases out of the ER saves hospitals money too.

The numbers from June 20 through August 10: out of 3,141 total EMS calls, 97 met the eligibility criteria. Of those, 79 patients consented, 18 declined and got a standard EMS response. Of the calls RightSite took over, 47 were resolved through telehealth into an alternate care path, and in 32 cases the telehealth physician looked at it and requested an ambulance after all — which is exactly the safety valve you want. Program-wide, RightSite is currently touching about 1.34% of our EMS call volume.

Looking just at July: 52 activations, 50 unique patients, a 65% redirection rate. Of the patients RightSite handled, 62% needed no ambulance at all, 31% got an ambulance after physician review, 6% declined, and 2% went to the ER as emergent. Average time to hand a patient off from dispatch was about one minute.

What I didn’t expect, and what I think is the most interesting part, is the social work happening around the edges. Navigators identified and addressed transportation needs 29 times, over-the-counter medication needs 21 times, scheduled primary care appointments, helped with prescriptions, and in a handful of cases covered a copay or a utility bill — about $416 in patient expenses and $269 in rides over the reporting period. Small money, big difference. Follow-up calls go out for seven days after the initial call, with a 76% reach rate, and patient satisfaction is coming back at 10.0 out of 10.

One number that speaks to why this matters: 22% of the patients RightSite served were uninsured. For a lot of those folks, a 911 call had been the only door into the healthcare system. Now there’s a better option.

8. Atmos Rate Review Mechanism

Staff will present an overview of the 2026 Atmos Energy Mid-Tex Rate Review Mechanism (RRM) settlement and proposed rate adjustment. Unless otherwise directed by Council, this item will be scheduled for formal consideration at the September 15, 2026 Regular Meeting.

Presenter: Matthew Watson, Assistant City Manager

This is the annual gas rate item, and I flagged back in June that a recommendation would land later this summer. Now it returns.

The mechanism, briefly. In 2003 the Legislature created GRIP — the Gas Reliability Infrastructure Program — which lets a gas utility file for an annual increase to recover infrastructure spending. Cities hated it, because GRIP looks only at what the utility invested and ignores everything that might offset it: customer growth, higher revenues, falling expenses. And under GRIP, cities can’t challenge whether a cost was reasonable. So the Atmos Cities Steering Committee — roughly 180 Texas cities, Garland among them — negotiated the Rate Review Mechanism as a substitute. The RRM gets us a full cost-of-service review, independent engineering and financial analysis, and a negotiated settlement instead of a filing we’re required to swallow.

This year Atmos asked for $291.1 million in additional system-wide revenue. For scale, that request was $177.7 million last year and $143.1 million the year before. ACSC’s consultants worked it down to a settlement of $260.5 million — a reduction of $30.6 million from the ask, and Atmos reimburses ACSC’s expenses for the review.

What it means at your kitchen table: the average residential bill goes up $13.37 a month, or 14.15%. Without the ACSC negotiation it would have been $14.94, or 15.81%. Average commercial bills go up $44.82 a month, 9.90%. New rates apply to bills rendered on or after October 1.

I’m not going to dress this up. Last year’s RRM settlement was $205.6 million and moved the average residential bill $7.83, or 9.27%. This year is nearly double that increase. The negotiation saved ratepayers $1.57 a month off what Atmos wanted, which is real but modest against a $13.37 increase. Atmos reports $1.8 billion invested in the Mid-Tex division with 85% of it tied to safety and reliability work. I acknowledge it’s a big jump, but the alternative to this settlement isn’t a smaller increase — it’s GRIP, where we’d have no seat at the table at all.

Since we’re talking about what gas safety costs, it’s worth remembering why Texas regulates any of this the way it does. Also, having spent my career as a civil engineer around pipeline replacement projects, I do believe getting old steel pipe out of the ground for safety reasons is worth paying for.

On March 18, 1937, the London School in New London — a wealthy oil-patch district in Rusk County — exploded. A total of 311 students and teachers were killed, and it is still the deadliest school disaster in American history. The cause was a cost-saving decision: the district had cancelled its commercial gas contract two months earlier and tapped a residue gas line running from a nearby gasoline plant instead—a common practice in the oil field at the time. The connection was faulty and gas leaked into the crawl space under the building and collected there. Around 3:15 that afternoon a shop teacher switched on an electric sander, and sparked an expolsion. Nobody smelled anything, because raw natural gas has no odor.

Two laws came out of that tragedy. The first is the reason your gas smells like rotten eggs — within months Texas required that natural gas sold to the public be odorized. It was the first law of its kind anywhere, and it is now standard practice worldwide.

The second is the Texas Engineering Practice Act. Before 1937, Texas had no engineering licensure requirement at all. Anyone could call themselves an engineer, and a school board could let untrained maintenance staff run a gas line into a building full of children. The 45th Legislature passed the Engineering Registration Act as emergency legislation, and Governor James Allred signed it on May 28, 1937 — ten weeks after the explosion. The 59th Legislature rewrote it in 1965 and gave it the name it carries today. Its stated purpose is to protect the public health, safety, and welfare and let the public identify who is actually authorized to practice engineering in this state.

Unfortunately Texas learned what unqualified work on a gas system costs in the worst way a state can learn anything, and then wrote the answer into law before the summer was out.

(Image from Texas State Library and Archives Commission https://www.tsl.texas.gov/sites/default/files/public/tslac/exhibits/extraextra/1976011_7.jpg)

CONSIDER APPOINTMENTS TO BOARDS AND COMMISSIONS

Terms are usually staggered whereby at least half of the membership has previous experience. Members are appointed based on qualifications.

9. City Manager Appointments

• Patricia Anthony — Civil Service Commission

• Glenna Saygidia — Civil Service Commission

The Civil Service Commission is a three-member body, and under Chapter 143 of the Local Government Code the City Manager appoints its members subject to Council confirmation. Patricia Anthony has been serving out an unexpired term that ends September 15, and is up for a full three-year term. Marisol Trevizo’s move to the Plan Commission opened the other seat, and Glenna Saygidia is proposed to fill that unexpired term through September 15, 2027.

10. Councilmember Margaret Lucht

• Board of Adjustment — Margaret Bice

• Cultural Arts Commission — Trayc Claybrook

• Environmental & Community Advisory Board — Catherine Haedge

• Parks & Recreation Advisory Board — Jason Aguirre

• Property Standards Board — Gayle Owens

• Senior Citizens Advisory Commission — Gail Belton

• Tax Increment Finance #1 Downtown/Forest Jupiter Board — Lucian Giambasu

• Tax Increment Finance #2 South Board — Jason Shanks

• Tax Increment Finance #3 Board — Mehwish Khanum

• Unified Building Standards Commission — Tyler Williams

Councilmember Lucht finishes out District 5’s slate tonight. Thank you to every one of these residents for volunteering — these boards do the unglamorous work that keeps the city running.

ANNOUNCE FUTURE AGENDA ITEMS

A Councilmember, with a second by another member or the Mayor alone, may ask that an item be placed on a future agenda of the City Council or of a committee of the City Council. No substantive discussion of that item will take place at this time.

EXECUTIVE SESSION

The City Council will adjourn into executive session pursuant to Sections 551.071 and 551.086 of the Texas Government Code to deliberate or discuss the following:

11. Competitive matters of a public power utility (551.086) and attorney/client matters concerning privileged and unprivileged client information related to the same (551.071).

Can’t say much here. Section 551.086 is the exception in the Open Meetings Act that lets a city-owned utility discuss competitive matters privately. When there’s something public to report, I’ll report it.

12. The City Council will adjourn into executive session pursuant to Sections 551.071 of the Texas Government Code to deliberate or discuss attorney/client matters concerning privileged and unprivileged client information related to electioneering (551.071).

Also brief. This is Council getting legal advice from our City Attorney about election law — what a city, its staff, and its elected officials may and may not do around a ballot measure. Given item 3 earlier in the evening, the timing speaks for itself.

ADJOURN

Four ribbon cuttings in October to complete the major projects from the 2019 bond program so let’s close with “October Road” by James Taylor. See you Monday at 6:00.

We’ll also review the quarterly investment report, adopt the Civil Service pay ordinance for our police officers and firefighters, interview applicants for Garland’s seat on the Garland Housing Finance Corporation, hear GHFC’s annual report, and get our first real look at the Neighborhood Stewardship pilot — the Tier 3 piece of Garland Cares.

The Work Session starts at 6:00 PM in the Work Session Room at City Hall (200 N. Fifth St.), and the public is welcome to attend or comment on any Work Session item. If you can’t make it, drop me a line at mayor@garlandtx.gov. If you’ve found these notes useful, please share them with a neighbor.

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As always, my comments are in bold italics.

WRITTEN BRIEFINGS

Council may ask for discussion, further information, or give direction to staff on an item posted as a written briefing.

1. Investment Portfolio Report

The June 30, 2026 Quarterly Investment Portfolio Summary will be presented to Council for review. The report complies with the requirements of the Public Funds Investment Act, and the City’s investment portfolio continues to be managed in accordance with the Council Financial Policy, Investment Policy, and Statement of Investment Strategy.

Submitted by: Allyson Bell Steadman, Chief Financial Officer. Informational only — no formal action required.

State law (the Public Funds Investment Act) requires staff to bring Council a report every quarter on how the City’s cash is invested. This is one of those items that never makes headlines and always matters.

As of June 30, we’re holding about $1.02 billion across eight separate portfolios, each with its own job — the Treasury Portfolio ($616.6 million) funds day-to-day operations, the Rate Mitigation Portfolio ($303.9 million) is set aside to pay Garland Power & Light debt service or cushion electric rate increases, and smaller portfolios cover things like landfill expansion, water and sewer bond reserves, and unspent grant dollars.

A few numbers worth pulling out: we’ve earned $30.5 million in interest income so far this fiscal year, our overall yield is running right around 3.7%, and we’re at or slightly above benchmark in the two portfolios that hold most of the money. Weighted average maturity across the whole portfolio is 193 days, and just over half of everything is liquid within one day. That’s the balance we’re after — safety first, then liquidity, then yield. That $30.5 million is real money that would otherwise have to come from taxpayers.

2. Calling the 2026 Special Tax Rate Election for November 3, 2026

Council is requested to consider the approval of an ordinance ordering and providing notice of a special tax rate election to be held on November 3, 2026, for the purpose of submitting the City’s proposed tax rate to the qualified voters for approval. Unless otherwise directed by Council, this item will be scheduled for formal consideration at the August 17, 2026 Regular Meeting.

Submitted by: Jennifer Stubbs, City Secretary

This is the “Swap and Drop” becoming official. I wrote a full post about it earlier this year and again at the end of July, so here’s the short version — now with the certified numbers attached.

Garland’s property tax rate has two halves. One half — Interest & Sinking, or I&S, the debt service rate — pays off money we’ve already borrowed for streets, facilities, and other capital projects. The other half — Maintenance & Operations, or M&O — pays for police officers, firefighters, street crews, parks, and libraries. Here’s the swap:

That’s the whole idea in one table. We’ve been disciplined about debt, so we can responsibly cut the debt service rate by about four cents. We move roughly three of those cents over to operations, where the actual cost of running a city lives. And the cent left over goes back to you: the total rate drops from about 69 cents to about 68 cents per $100 of valuation.

So why does this need an election? State law (Senate Bill 2, from 2019) caps how much the operations side of the rate can grow without voter approval. Our voter-approval rate for 2026-27 is $0.643254, and the proposed rate of $0.679900 sits about 3.7 cents above it. Under the truth-in-taxation rules, exceeding that number sends the rate to the voters — even though the combined rate is going down. Hence November 3.

I want to be precise about two things, because I’d rather you hear them from me now than be surprised on election day.

First, the ballot language is going to say this is a tax increase. That’s required by state law, and it’s driven by the M&O side going up. The total rate you’re charged goes down. Both statements are true at once, and I know how confusing that is.

Second, a lower rate is not the same as a lower bill. This budget raises $10,637,001 more in property tax revenue than last year’s — a 5.65% increase — of which $3,235,248 comes from property newly added to the tax roll. The rest comes from rising appraised values. If your appraisal went up more than about 1.4%, your city tax bill will go up even at the lower rate. What the drop does is give back roughly $9.85 a year for every $100,000 of taxable value compared to holding the rate flat. I’m not going to tell you a tax cut is bigger than it is.

For context on why last year’s column looks the way it does: in 2025-26 our adopted rate and our voter-approval rate were the same number, $0.689746. We were sitting right at the ceiling. That’s the structural squeeze SB 2 creates, and it’s the reason we’re asking voters to help us reset the two halves of the rate rather than grinding down services a little more each year.

One more figure worth knowing: our total debt obligation secured by property taxes is $101,608,677. Paying that down on schedule is exactly what makes the four-cent debt service reduction possible.

3. FY 2026-27 Civil Service Classifications and Compensation Ordinance

Council is requested to adopt the FY 2026-27 Civil Service Classifications and Compensation Ordinance, pursuant to Chapter 143 of the Texas Local Government Code. Unless otherwise directed by Council, this item will be scheduled for formal consideration at the August 17, 2026 Regular Meeting.

Submitted by: Allyson Bell Steadman, Chief Financial Officer

Every year, as part of the budget, we adopt an ordinance that formally sets the ranks, pay, and special incentives for our sworn firefighters and police officers. Chapter 143 of the state’s Local Government Code requires it to be done by ordinance — Council can’t just handle it administratively.

For FY 2026-27, staff reports that allotted positions, compensation, and incentives are all unchanged from the prior year. This is the paperwork that makes the public safety piece of the budget official.

VERBAL BRIEFINGS

Council may ask for discussion, further information, or give direction to staff on an item posted as a verbal briefing.

4. Final Deliberation on FY 2026-27 Proposed Annual Operating Budget

Final discussion and deliberation on the FY 2026-27 Proposed Annual Operating Budget.

Presenters: Allyson Bell Steadman, Chief Financial Officer; Fahad Qadir, Budget Manager

This is the finish line. City Manager Mike Betz presented the proposed budget on July 6 — $1.028 billion all-funds, with a General Fund of $271.6 million. Since then we’ve held a full-day department work session on July 25, taken the certified appraisal roll on July 28, worked through the budget again on August 3, held public hearings on August 4 and again on August 11, and now here we are.

Tonight is Council’s last chance to give staff direction before we vote. Then at 7:00 PM in the Regular Meeting we do eight things in a row: hold the public hearing on the tax rate, hold the public hearing on the budget, adopt the ordinance ratifying property tax revenue, adopt the FY 2026-27 budget, set the tax rate, call the November tax rate election, adopt fee and rate changes, and adopt the Civil Service ordinance.

If you have something to say about this budget, tonight and the Regular Meeting that follows are the last opportunities. The proposed budget has been available since July 7 in our libraries, at the City Secretary’s Office, and at garlandtx.gov/3528/Annual-Budget-Documents.

5. Garland Housing Finance Corporation Appointment

Information was posted on the City’s website regarding the qualifications for the Garland Housing Finance Corporation Board Member, in order to provide an opportunity for citizens to apply for the position. Qualified applicants were requested to apply by July 24, 2026. Council is scheduled to formally appoint a representative to the Garland Housing Finance Corporation at the August 17, 2026 Regular Meeting.

Presenter: Mayor Dylan Hedrick

Garland’s seat on the Garland Housing Finance Corporation board expires August 31, and tonight Council interviews the applicants who want to fill it. The successor will serve a full six-year term beginning tonight.

Six years is a long commitment, and as the next item makes clear, GHFC moves real money in this city. I appreciate everyone who applied.

6. Garland Housing Finance Corporation (GHFC) Annual Report

Council is requested to receive the Garland Housing Finance Corporation Annual Report, which provides an overview of the Corporation’s financial position, housing initiatives, program impact, and strategic priorities for the preceding fiscal year.

Presenter: David Gibbons, Executive Director

If you don’t follow city government closely, GHFC is probably the most consequential Garland institution you’ve never heard of. It’s a separate corporation that works alongside the City to finance and build affordable and workforce housing, and it does not run on your tax dollars. Here’s what it did in 2025.

Homebuyer Assistance

GHFC funded 85 down payment assistance loans totaling $850,000 and 85 grants totaling $425,000, which together helped Garland families close on $18.5 million in mortgages last year. The structure is generous: a $10,000 second-lien loan at 0% interest with no fees if repaid within three years, plus a $5,000 grant that never has to be repaid, plus a Mortgage Credit Certificate worth up to $2,000 a year in federal tax credit for first-time buyers. Since the program started, it’s funded 401 loans and 239 grants supporting $91.7 million in home purchases. The trend line is worth noting — 24 buyers assisted in 2015, 85 in 2025.

Home Repairs

GHFC granted the City $540,000 in 2025 for our Home Repair Programs — HVAC, roofs, plumbing, electrical, windows and doors, plus help correcting code violations like fences, tree trimming, and exterior paint. That’s the fifth straight year of this grant, bringing the total to $2,330,000. It repaired 28 homes last year and 127 since inception, and 65% of those families were elderly and 26% were disabled. Every one of them was income-qualified at 80% of area median income or below.

The rest of community support. All told GHFC put more than $685,000 into grants, rental assistance, and charitable giving in 2025, including $21,948 in direct rental assistance to 17 families in GHFC communities and $48,275 to local nonprofits — Hope Clinic of Garland, Good Samaritans of Garland, the Garland unit of the NAACP, the Garland Association for Hispanic Affairs, the Counseling Institute of Texas, and the Ninth Street Gym Project.

Property Redevelopment

This is the part I find most encouraging, because it’s Code Compliance and housing policy working together. GHFC buys the worst properties on a block — burned-out houses, 650-square-foot structures past saving, an abandoned nursing home that sat empty for 15 years — tears them down, and partners with our Community Development Department to put new homes there. A family moved into the rebuilt house at 1406 Shorehaven earlier this year. First-time buyers were expected to close on the two Cumberland Drive homes by mid-2026. Two four-bedroom homes on Russell Drive were completed and sold to income-qualified first-time buyers. And 1922 Castle Drive — an abandoned nursing home that sat vacant for more than 15 years, drawing vandalism and crime, until GHFC acquired it and cleared it with the help of a Community Development Block Grant — was designed for affordable senior housing by students in the Architectural and Design class at GISD’s Gilbreath-Reed Career Technical Center, with groundbreaking planned for early 2026. That’s a neighborhood eyesore turned into senior housing by Garland high schoolers. I love that GHFC involved our wonderful GISD students into the design process.

Scale

GHFC is now the general partner in 19 limited partnerships that own 17 multifamily communities — 3,129 units of affordable and workforce housing in Garland, 968 of them reserved for residents over 55.

All of this connects directly to the Housing Strategy we adopted in June. GHFC is one of the main tools we have to actually execute it.

7. Garland Cares – Stewardship Program

Staff will provide Council an overview of the Neighborhood Stewardship Program, a component of Garland Cares.

Presenter: Scott Bollinger, Director of Neighborhood Vitality

Garland Cares is our framework for neighborhood revitalization, and it has four tiers. Tier 1 is simpler, lower-cost fixes and routing residents to the right service. Tier 2 is Where the Heart Is — comprehensive, concentrated, whole-neighborhood engagement. Tier 4 is grant-funded rehabilitation for major structural work. Tonight we’re filling in Tier 3: Neighborhood Stewardship.

Staff’s diagnosis of the issue is one I agree with. The limit on neighborhood revitalization in Garland isn’t only money or materials — it’s staff capacity and coordination. We can’t put a city employee on every block. The Stewardship model tries to solve that by partnering with organizations willing to adopt a “Steward Zone” of three to six blocks, build real relationships with the residents there, spot maintenance and repair problems, fix what they can, coordinate what they can’t, and connect people to resources for the bigger jobs. It adds sustained block-level presence without adding permanent headcount.

The pilot steward is the members of Alpha Phi Alpha —the first intercollegiate Greek-letter fraternity established for African American men founded on December 4, 1906, at Cornell University. I first met the “Alphas” during my mayoral campaign and they asked one question—how can we get involved in helping the City of Garland? They have graciously stepped up to be the first volunteers, and their success will set the model for future volunteer organizations. No pressure gentlemen.

The process has real guardrails: an executed MOU, legal and risk prerequisites, an identified captain and successor, a baseline data and map package, a joint City-Steward walk of the zone, and an approved action plan before anything gets activated. The City sets the criteria and generates the shortlist of eligible zones; the steward picks from that list. And private property work still requires the owner’s consent — stewards are neighbors helping neighbors, not inspectors.

One line in the staff presentation stood out to me, and it’s the right instinct: the goal is for stewards to work with the City “without becoming gatekeepers.” Residents keep direct access to their city government. After evaluating the successes and opportunities to improve from this pilot, we expand to a second steward and zone in four to six months and build a repeatable playbook from there.

CONSIDER APPOINTMENTS TO BOARDS AND COMMISSIONS

Terms are usually staggered whereby at least half of the membership has previous experience. Members are appointed based on qualifications.

A big round of appointments tonight. Thank you to every resident willing to serve — these boards do the unglamorous work that keeps the city running.

8. Councilmember Jimmy Tran

• All Abilities Committee — Leigh Calmes

• Board of Adjustment — James VanDyke

• Community Multicultural Commission — Merrill Balanciere

• Cultural Arts Commission — Beena Varnan

• Environmental & Community Advisory Board — Tony Pham

• Library Board — Eboney Forte

• Parks & Recreation Advisory Board — Nancy Janssen

• Plan Commission — Scott Roberts

• Property Standards Board — Michael Opatola

• Senior Citizens Advisory Board — Carol Cooper

• Tax Increment Finance #1 Downtown/Forest Jupiter Board — Austin Nichols

• Tax Increment Finance #2 South Board — Bill Swisher

• Tax Increment Finance #3 Board — Beena Varnan

• Unified Building Standards Commission — Robert Shepherd

9. Councilmember Justin Caraway

• All Abilities Committee — Jana Veit

• Community Multicultural Commission — Maria Borrinaga

• Cultural Arts Commission — Felicia Fuller

• Library Board — Michael Degen

• Parks & Recreation Advisory Board — Kay Moore

• Plan Commission — Julius Jenkins

• Property Standards Board — Karin Wiseman

• Senior Citizens Advisory Board — Amador Castor Jr.

• Tax Increment Finance #1 Downtown/Forest Jupiter Board — Dr. Mary Brumbach

• Tax Increment Finance #2 South Board — Elizabeth Mitchell

• Tax Increment Finance #3 Board — Paul Dollar

• Unified Building Standards Commission — Dwight Nichols

10. Councilmember Christina Segoviano

• All Abilities Committee — Jami Utrera

• Board of Adjustment — Bruce Bishop

• Community Multicultural Commission — Corey Mclaurin

• Cultural Arts Commission — Blake Edwards

• Environmental & Community Advisory Board — Elizabeth Harris

• Library Board — Kristine Sanchez

• Parks & Recreation Advisory Board — Molly Bishop

• Plan Commission — Marisol Trevizo

• Property Standards Board — Sal Liberto

• Senior Citizens Advisory Board — Gwendolyn Daniels

• Tax Increment Finance #1 Downtown/Forest Jupiter Board — CorSharra Prenell

• Tax Increment Finance #2 South Board — David Orr

• Tax Increment Finance #3 Board — Richard Valle

• Unified Building Standards Commission — John Kusewitt

11. Councilmember Margaret Lucht

• All Abilities Committee — Paul Dollar

12. Deputy Mayor Pro Tem Carissa Dutton

• Senior Citizens Advisory Board — Janet Woody

Quick note for anyone wondering what “TIF” means, since it shows up three times above: Tax Increment Finance. When a TIF district is created, the property tax revenue above a frozen baseline gets reinvested into that district instead of going into the general fund pot — it’s how we help fund improvements in those areas which include Downtown and the Forest/Jupiter area, the Medical District, and in south Garland.

ANNOUNCE FUTURE AGENDA ITEMS

A Councilmember, with a second by another member or the Mayor alone, may ask that an item be placed on a future agenda of the City Council or of a committee of the City Council. No substantive discussion of that item will take place at this time.

EXECUTIVE SESSION

The City Council will adjourn into executive session pursuant to Sections 551.071, 551.072, and 551.087 of the Texas Government Code to deliberate and discuss the following:

13. Downtown business prospects and real property near West Avenue A and South 6th Street

The receipt of commercial or financial information that the City has received from business prospects that the City seeks to have locate in the downtown district with which the governmental body is conducting economic development negotiations (551.087); including the potential sale, exchange, or value of real property in the vicinity of West Avenue A and South 6th Street (551.072); and attorney client communications related to the same (551.071).

Can’t say much here beyond what’s on the agenda — we’re talking with prospects interested in locating downtown, and there’s a real estate component near West Avenue A and South 6th Street. More when there’s something to announce publicly.

14. Economic development negotiations, 509 W. State Street

The receipt of commercial or financial information that the City has received from a business prospect that the City seeks to have stay or expand in the downtown district with which the governmental body is conducting economic development negotiations located at 509 W. State Street (551.087); and attorney client communications related to the same (551.071).

Same posture here, with one distinction worth noting: this one is about a business already downtown that we’d like to see stay or grow. Retention matters as much as recruitment.

ADJOURN

Between the Housing Finance Corporation report, the home repair grants, and a stewardship program built on neighbors walking their own blocks, tonight ends up being a meeting about houses — who can buy one here, who can stay in the one they’ve got, and what the street looks like on the way home. So I’ll close with “Our House” by Madness. Budget season’s over after tonight. See you at 6:00.

Tomorrow night’s Regular Meeting (August 4, 7:00 PM) is where we hold public hearings on the Proposed Budget and the Tax Rate. If you’ve got something to say about how we spend your money next year, that’s the night.

The meeting starts at 6:00 PM in the Work Session Room at City Hall (200 N. Fifth St.), and the public is welcome to attend or comment on any item. If you can’t make it, drop me a line at mayor@garlandtx.gov.

As always, my comments are in bold italics.

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VERBAL BRIEFINGS

1. Discussion of FY 2026-27 Proposed Annual Operating Budget

Continue discussion of the FY 2026-27 Proposed Annual Operating Budget.

Presenter: Allyson Bell Steadman, Chief Financial Officer; Fahad Qadir, Budget Manager

This is round three on next year’s budget. The City Manager presented the first full draft on July 6, we worked through it again on July 20, our department directors walked us through their pieces at the all-day special session on July 25, and last Monday we took the appraisal roll and voted to set the public hearing dates. Tonight is Council continuing to press on the proposed numbers before the hearings start.

The total proposed budget for this year is $1.028 billion with the General Fund at $271.6 million.

What’s left on the calendar:

August 4, 2026, 7:00 PM — Regular Meeting: public hearings on the Proposed Budget and Tax Rate

August 11, 2026, 6:00 PM — Special Work Session: public hearings on the Proposed Budget and Tax Rate, then continued discussion

August 17, 2026, 6:00 PM — Regular Work Session: Council provides final direction

August 17, 2026, 7:00 PM — Regular Meeting: public hearings on the Tax Rate and Budget, adopt the ordinance ratifying property tax revenue, adopt the 2026-27 budget, set the tax rate, call the November 2026 tax rate election, adopt fee and rate changes, and adopt the Civil Service ordinance

That last calendar entry is the one to circle. On August 17 we formally call the November tax rate election — the “Swap and Drop” I wrote about back in February, where we shift a few cents from debt service over to operations and maintenance and lower the overall rate in the process. Between now and then, the budget is still available for review at our libraries, the City Secretary’s Office, and at garlandtx.gov/3528/Annual-Budget-Documents. Read it, then tell me what you think.

2. Potential GDC Amendment for Townhouse Standards in the Garland Development Code

Staff will provide an overview on a potential GDC amendment for townhouse standards. The Garland Development Code (GDC) currently provides standards for townhouse development at § 2.37 that require limited design elements and amenities. Following the recent update to multifamily standards, townhouses are now permitted in any zoning district that permits multifamily properties.

Presenter: Nabila Nur, Planning & Development Director

A little background on why this is coming up now. When we updated our multifamily standards, one side effect was that townhouses became allowed in every district where multifamily is allowed. Our townhouse rules, though, are still pretty thin — § 2.37 asks for very little in the way of design elements or amenities. So we have a product type that just got a lot more places to go, governed by standards written for a much smaller footprint.

Staff’s proposal tonight is to bring the townhouse standards up to match what we just did for multifamily. The items on their list:

• Requiring a shared access easement for townhouse developments

• Stronger streetscape standards, with different expectations depending on whether the units front a public street or a shared drive

• Better building articulation — staff points to the Riverset PD as the example of what good looks like here

• A real menu of amenity options, so developers have flexibility in how they meet the requirement

• Making alleys mandatory for townhouses

• A look at whether infill and urban sites need their own standards

(An example of a townhouse block.)

I’ve made the point before that Garland is 97% built out, which means essentially all of our growth from here comes from building better on land we already have. Townhouses are one of the few housing types that give us more density without the scale of a multifamily block, and they’re exactly the product that can attract the households we’re trying to keep and attract. But “medium density done poorly” is a real risk, and mandatory alleys and articulation standards are how you avoid a street that’s nothing but garage doors and driveways.

To be clear on process: this is a direction-setting conversation, not a vote. If Council wants to move forward, staff comes back later with actual drafted standards.

3. GDC Amendment 26-05

Staff will provide an overview of the GDC Amendment 26-05 related to parking deviations. The item was presented to the Plan Commission at their regular meeting on July 13, 2026 and was recommended for approval. Staff recommends approval of the GDC amendment.

Presenter: Nabila Nur, Planning & Development Director

We first talked about this back on May 18. Today’s parking relief rules live at § 4.20(K) in the Garland Development Code and scale the allowed overage by building size — up to 5% for anything under 40,000 square feet, 10% up to 85,000, 15% above that. This restriction doesn’t give staff enough room to approve reasonable requests administratively, and it leaves an obvious question unanswered: are the numbers in our Land Use Matrix a floor or a ceiling? The amendment answers that first — they’re the minimum required.

From the modifications submitted for approval:

Multifamily gets a parking maximum: one space per efficiency unit, 1.5 per one-bedroom, and two per unit with two or more bedrooms. Anything above that can’t be approved administratively and requires a zoning change.

Nonresidential gets a tiered approach: up to 15% above the minimum with no process at all, 15% to 30% through a Parking Deviation (handled like an Alternative Compliance Request), and anything above 30% requires a zoning change.

One thing worth noting for anyone who read my May notes: the middle tier has tightened. In May the proposal was 15–40% by Alternative Compliance and 40%+ by Planned Development. What’s in tonight’s packet is 15–30% and 30%+. If you were tracking this, that’s a real change, not a typo on my part.

A Parking Deviation request has to come with a parking generation study from a licensed transportation engineer showing why the extra spaces are actually needed (or other documentation the Planning Director will accept), and any deviation has to be mitigated — pervious paving, more landscaping, better stormwater controls, or something comparable.

Two carve-outs. Structured parking is exempt entirely, which is deliberate: if a developer is willing to build a garage instead of a sea of asphalt, we shouldn’t make them file paperwork for the privilege. And in the Downtown District, parking above the maximum is exempt if it’s provided as publicly shared parking — the idea being to encourage downtown parking that everyone can use, not just one building’s tenants.

Finally, when we discussed this in May, Council asked staff to also look at whether our minimum parking ratios still make sense for how businesses actually operate today, and at the waiver process for those minimums. That’s a separate amendment — it requires going use-by-use through the entire Land Use Matrix — but it’s the bigger conversation and I’m glad it’s still on the list.

4. Briefing on the Film Friendly Texas Certification Program

Staff will provide Council with an overview of the recent efforts and progress made toward obtaining Film Friendly Texas Certification for the City of Garland. At the direction of Council, staff worked with the Texas Governor’s Office of Economic Development & Tourism to obtain the certification as a means of attracting film production and generating additional economic impact for Garland. This presentation is for informational purposes only. No action is required.

Presenter: Dana Lodge, CVB & Events Director

Film Friendly Texas is a certification run through the Governor’s Office that puts a community on the map — literally — for location scouts looking for places to shoot. There are four steps, and staff has worked through them:

First, designate a liaison. Our Special Events team took that on, and they’re now the single point of contact for production companies and the Texas Film Commission, coordinating anything involving City property, streets, sidewalks, or parks.

Second, complete the state’s workshop on how to work with productions. Done.

Third, write filming guidelines — an actual application and scheduling process so a production company knows what to expect instead of guessing.

Fourth, submit photos of local filming locations to the state’s database. Staff put forward Downtown Garland Square, Firewheel Golf Park, the Hat sculpture, Bob Day Tennis Center, Prisma, the Jon Comer Skate Park, the Plaza Theatre, Surf & Swim, Spring Creek Preserve, and the Heritage Museum and rail car.

Beyond the certification itself, staff has built a Visit Garland landing page that includes links to state incentive programs, and they’ve been doing outreach to the Dallas, Arlington, and Fort Worth film commissions, Women in Film, the Texas Commission on the Arts, and the Dallas Producers Association — plus reaching out to private property owners about listing their sites.

And we already have two film festivals in town to build on: It Came from Texas, going since 2023, which screens films with Texas connections and brings in industry professionals; and the Bankhead Film Festival, started in 2024, which showcases work from GISD elementary, middle, and high school students.

No vote here — this one is just a good news item. Film production is the kind of economic activity that spends money in a city without asking the city to build anything new for it, and it shows off Garland to people who’ve never been here.

5. Public Safety Committee Report — Public Safety Committee, including Fire & EMS Stakeholder Committee Update

Mayor Pro Tem Ott, Chair of the Public Safety Committee, and Staff, will brief Council on the work and progress to date of the Public Safety Committee.

Presenter: Scott Vornberg, Interim Chief of Police; Mistie Gardner, Managing Director - Emergency Management

Mayor Pro Tem Ott chairs our Public Safety Committee, and tonight he and staff bring the full Council up to speed — including on the Fire & EMS Stakeholder Committee, which Council directed be formed to take a serious look at how we deliver fire and emergency medical services over the long haul.

This is also the first Council briefing with Scott Vornberg presenting as Interim Chief since Council confirmed him on July 21.

CONSIDER APPOINTMENTS TO BOARDS AND COMMISSIONS

6. Councilmember Joe Thomas Jr.

• Tony Bui — Community Multicultural Commission

Under Article IV, Section 2 of the City Charter, individual councilmembers appoint their own representatives to certain boards, and Councilmember Thomas is filling a vacancy on the Community Multicultural Commission. Tony was my apointee to TIF #3, and I’m happy to see him continue to serve under Councilmember Thomas.

7. Deputy Mayor Pro Tem Carissa Dutton

• Prudence Ndudi — Garland Youth Council

• Safa Khajamohideen — Garland Youth Council

Two more additions to the Garland Youth Council class we welcomed earlier this month. I’ll say it again — GYC is one of my favorite programs in the city, and I’m glad to see the roster filling out. Welcome, Prudence and Safa.

ANNOUNCE FUTURE AGENDA ITEMS

ADJOURN

With Garland going Film Friendly, tonight’s selection is “Celluoid Heroes” by The Kinks — a song about the people whose names end up on the Walk of Fame, and the ones whose don’t. Maybe someday a Garland location shows up in the background of something you’re watching and you’ll know exactly where it was shot.

See you tonight!

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At the time, that was a concept. I told you the plan and the reasoning, but I didn’t have final numbers, and I wasn’t going to make promises I couldn’t back up with arithmetic.

Now I can. The Dallas Central Appraisal District has certified our 2026 values, Council received the appraisal roll last Friday, and the numbers hold up. So this post is the follow-up I owed you: what changed, what a “yes” actually buys, and — just as importantly — what a “no” actually costs.

If you want the full explainer on how the two halves of the tax rate work and why Senate Bill 2 squeezes us every year, go read the February post first. I’ll recap the essentials here, but I won’t re-explain the whole thing.

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Your city tax rate is two buckets, and they are not interchangeable.

The I&S rate (interest and sinking, or debt service) pays off the bonds we’ve issued for capital projects — new fire stations, the Central Library renovation, the Downtown Square, street reconstruction. Think of it as the mortgage.

The M&O rate (maintenance and operations) pays for running the city day to day — police and fire salaries, 9-1-1 dispatch, library hours, mowing, fuel, insurance, code enforcement. Think of it as groceries and gas.

State law keeps these separate. Money in the debt bucket cannot pay a firefighter’s salary, no matter how badly we need one. That’s not a City policy choice — it’s how the law works, and it matters for everything that follows.

In 2019, you voted to fill the debt bucket. Garland voters approved all eight propositions in a $423.7 million bond package, and funded it with a six-and-a-half cent increase to the debt service rate. Not the operations rate — the debt rate specifically. You got new parks, libraries, public safety facilities, an animal shelter, streets, and a downtown that people now drive in from other cities to visit.

Also in 2019, the Legislature passed Senate Bill 2 — and this is the part that squeezes us. Before SB 2, a Texas city could grow its property tax revenue by 8% a year before triggering an election. SB 2 cut that to 3.5%.

Here’s what that does in practice. Garland’s property values have been rising 6% to 12% a year. Our revenue is allowed to grow 3.5%. So every year, we have to lower the total tax rate just to stay under the cap — which sounds like good news, and in isolation it is.

The problem is where the cut has to come from. The debt rate is locked in by a bond repayment schedule; we can’t arbitrarily reduce it without refinancing or paying bonds off early. So year after year, almost the entire rate reduction comes out of the operations side.

Run that forward and you get the squeeze: our costs rise about 7% a year — wages, fuel, insurance, fleet parts, health benefits — while the operations rate gets trimmed every year to satisfy a 3.5% cap. Same police patrols, same fire response, same library hours, same trash pickup, less purchasing power to deliver them with. Compounded over five or ten years, that’s not a budgeting inconvenience. That’s service reductions, hiring freezes, and deferred maintenance arriving on a schedule.

That’s the trap. The Swap and Drop is the way out of it — and the reason it takes a vote of the people is that moving capacity into the operations bucket is exactly what SB 2 requires an election for.

What Changed: The Certified Numbers

Our proposed budget was built on preliminary estimated values, because that’s all we had earlier this month. Those preliminary numbers put Garland’s total taxable value around $30.2 billion.

The certified roll came in at $31.047 billion — about $800 million higher than the estimate, and up $2.73 billion (9.6%) from last year’s $28.3 billion.

Where that growth came from:

Two things worth pulling out of that table.

First, residential grew the slowest of the three. Business personal property — inventory, equipment, the stuff businesses own — grew 26.8%, and commercial real estate grew 10.4%. That’s the commercial base I keep saying we need to grow, actually growing. It’s also the reason I’m comfortable with this proposal: the additional capacity isn’t coming primarily off the backs of homeowners.

Second, new construction contributed about $470 million to the base this year, and 77% of that sits inside our TIF districts. That’s a longer conversation for another post, but it’s a real constraint on how much of that growth reaches the General Fund.

One honest caveat on the certified roll: about 5.79% of our certified value is still under protest. That’s within the state’s 5% target and it’s normal, but it means these figures can move a little at the margins.

The bottom line: the certified values give us the room to do exactly what I described in February — without shorting the debt we owe.

The Swap and the Drop, in Cents

Here’s the whole proposal in three lines:

−4¢ from I&S (debt service). We’ve paid down enough of the 2019 bond debt to responsibly lower the debt-service portion of the rate by four cents.

+3¢ to M&O (operations). Three of those four cents move over to the side of the ledger that pays for police officers, firefighters, dispatchers, libraries, parks, and street maintenance.

−1¢ off your total rate. The fourth cent doesn’t move anywhere. It comes off.

That’s the whole thing. The rate you’d be voting on — $0.6799 — is lower than the rate you’re paying today, and roughly nine cents below where we were in 2019-20.

The analogy our CFO Allyson Steadman uses at the town halls is a car payment, and it’s the right one. You’ve been making a $400 monthly payment. The car is paid off. That $400 doesn’t evaporate — you decide where it goes. Garland’s version: four cents of debt payment ends, three cents moves to the groceries-and-gas side of the household budget, and one cent stays in your pocket.

The reason the swap has to go on a ballot at all is the part I explained in February: state law caps how much our operating revenue can grow at 3.5% a year, while our costs rise about 7%. Under that cap, 3.5% growth is worth roughly $2.0 million in new property tax revenue. A 3% merit increase for General Fund employees alone costs about $5.0 million. You can see the problem.

About That Ballot Language

I want to be blunt about this, because it’s the thing most likely to cause confusion in November.

The ballot will say, in capital letters, “THIS IS A TAX INCREASE.”

Here’s the proposition as it’s expected to appear:

Read those two rates again: $0.679900 this year, $0.689746 last year. The ballot itself tells you the rate is going down, directly beneath a sentence in all caps telling you it’s an increase.

That wording is not the City’s choice. Texas law dictates it word for word, and it refers only to the M&O portion of the rate exceeding the state’s voter-approval threshold. It does not account for the four-cent reduction on the debt side. I don’t get to edit it, soften it, or add an asterisk.

So I’ll say the honest version here: the operations portion of your tax rate does go up under this proposal. The total rate you actually pay goes down. Both of those are true at the same time. If someone tells you the second part is spin, show them the two numbers on the ballot.

What a “Yes” Funds

Because Council has to build a budget either way, our staff prepared two of them. There is a “Yes” budget and a “No” budget, and the difference between them is about $10.3 million in annual revenue.

The “Yes” budget adds about $7.17 million in service requests — roughly $6.1 million ongoing and $1.05 million one-time. It splits into two buckets.

What gets added (about $5.08 million):

What gets kept (about $2.09 million):

I want to draw your attention to that second table, because it’s the one people skim past. Those aren’t new programs. That’s crossing guards at school intersections. Library hours and materials (books!). The special events on the Downtown Square. Mowing parks and medians. My beloved wildflower program I advocated for a few years ago. They’re on this list because without the swap, they’re the things that start getting thin.

Public safety already accounts for $141.5 million — 52% of our entire General Fund. When people ask why we can’t just cut our way to these positions, that’s the arithmetic they’re up against.

What a “No” Costs

I’d rather tell you this straight than have you find out in October.

If the election fails, everything in both tables above comes out of the FY 2026-27 budget by way of Budget Amendment No. 1. Not “gets reconsidered.” Comes out. That’s how the two budgets are structured, and Council will adopt the budget in August knowing that.

So a “no” vote means no 10 new police officers, no nine new firefighters, no eight new dispatchers, no animal care technicians, no code compliance administrator, no enhanced parks security — and it means the parks, library, crossing guard, and special events funding on that second list doesn’t get restored either.

It also means a thinner cushion underneath us. Here’s how the two budgets compare on reserves under the certified values:

That “ongoing reserves” line is the one that keeps me up at night. Under the preliminary values, the “No” budget’s ongoing reserve was zero. The certified numbers pulled it up to $1.0 million. On a $271.6 million General Fund, $1.0 million is a rounding error — it’s the margin between a manageable bad year and a genuinely painful one.

The “reserves” are something we only dip into in case of an emergency like the 90 mph straight line winds of May 2024 which caused significant damage across our city. We had to pay for the unexpected cleanup and repair costs out of pocket because paying an event like that is not something we budget for.

And to be clear about what happens after that: a “no” vote doesn’t just freeze us in place. Our costs still rise about 7% a year while our revenue growth stays capped at 3.5%. That gap compounds. A “no” vote means reduced services down the road, and I’d rather say that plainly now than pretend otherwise.

What We’re Doing Regardless of the Outcome

I don’t want anyone to read this as “give us more money or else,” so let me tell you what’s in both budgets.

We’re eliminating $532,000 in currently vacant positions where doing so won’t meaningfully hit service levels. We’re restructuring baseline operating budgets to free up another $1.1 million. We are talking a hard look at our budget to cut any excess. Those cuts happen whether the election passes or fails — in the “Yes” budget, they fund core services and the Strategic Plan (read my post about it here) rather than getting handed back.

The City Manager also set three rules for this budget that I want on the record, because I think they’re the right ones:

No one-time money for structural gaps. One-time dollars go to strategic investment and reserves. They do not paper over recurring shortfalls, because that just makes next year’s problem bigger.

Start closing the wage gap. Our general job classification salaries haven’t been meaningfully updated since 2018. Some positions are 10–25% behind market. That’s streets, code enforcement, parks, sanitation, building inspection, City Marshals, planning — the people who actually deliver everything else on this list. Vacancies there mean service gaps today and bigger problems tomorrow. This budget starts a multi-year fix.

Every dollar connects to the strategic plan. If a request doesn’t advance core services, economic redevelopment, financial capacity, or accountability, it’s a candidate to be cut.

The Structural Problem Underneath All of This

One more chart, because it explains more about Garland’s finances than anything else I could show you. I have written about this before and called it “Garland’s Challenge.”

Here’s General Fund tax revenue per resident, compared with our neighbors:

Garland collects $354 less per resident per year than the average Metroplex suburb — a 42% gap. Across our population, that’s roughly $89 million a year those cities have to spend on services that we don’t.

And notice: we have an above-average tax rate and below-average revenue. That is not a spending problem. It’s a tax base problem — decades of being a city built mostly out of houses, with a commercial and industrial base too small for our size.

The long-term answer is redevelopment, and that’s precisely what Garland on the Rise is aimed at. The Swap and Drop doesn’t fix the structural gap. It buys us the time and the service levels to work on it, because you cannot attract the businesses that close a tax base gap while letting your parks, libraries, and public safety slide.

What This Means for Your Bill

The City is only 29% of your property tax bill. GISD is 49%, Dallas County and Parkland are 9% each, and Dallas College is 4%. And while Council sets the rate, we have no say whatsoever over your appraised value — that’s DCAD.

The City estimates the savings on an average tax bill at about $29 a year for the average Garland taxable home value of $290,096.

I’ll be straight with you: this is not a windfall. Nobody is retiring on it. What it is, is a rate reduction at a moment when a lot of families could use one, paired with a service level that doesn’t quietly erode underneath you. It is a real property tax reduction proposal that you can vote on in November.

Once the election is called, the City will post a calculator on its website so you can run your own numbers. If your home value is higher than the average Garland home, you will see even more tax savings.

What Happens Next

Note that August 17 date. Until Council votes, this is a proposal — I’m writing about it now, well ahead of the vote, because I’d rather you have months to think about it than three weeks. I welcome your input.

If you want to hear this in person and ask questions directly, we have informative town halls coming up including one tonight:

• July 29 — Holford Recreation Center — 6:30 PM

• August 6 — South Garland Library — 6:00 PM

• August 10 — Central Library — 6:00 PM

• August 13 — West Garland Library — 6:00 PM

Where I Land

I’ll tell you where I am, and you’re free to disagree with me.

In 2019 you approved $423.7 million in bonds and a six-and-a-half cent debt service increase to pay for them. We’ve delivered 82% of those projects — the Downtown Square, Central Library, new fire stations, parks, streets. You held up your end at the ballot, and we held up ours at the construction site.

The bill for those projects is coming down. The question in November is only what we do with that room: hand back one cent and let the operations side keep eroding under a 3.5% cap, or hand back one cent and move three to keep the things we just built running.

I think the second one is the better deal for Garland, and I’ll be voting for it. I hope you will too.

But read the ballot language before you get to the booth, because it’s going to look like the opposite of what it is. And if you think I’ve got this wrong, tell me — comments below or mayor@garlandtx.gov. I read all of them.

See you at the Town Hall tonight.

Let’s end this long post with something sweet. Here is one of my favorite bands Unknown Mortal Orchestra with “Hunnybee.”

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The meeting starts at 6:00 PM in the Work Session Room at City Hall (200 N. Fifth St.), and the public is welcome to attend or comment on any item. If you can’t make it, drop me a line at mayor@garlandtx.gov.

As always, my comments are in bold italics.

CONSIDER THE CONSENT AGENDA

WRITTEN BRIEFINGS

1. Pending Items List - City Council Committees and Future Work Sessions

The attached report includes a dated list of items referred to Council Committees in accordance with Council’s referral process, which requires referral by two Councilmembers.

Periodically a list of the pending items in City Council Committees is provided to City Council for informational purposes only.

2. GISD Interlocal Agreement Regarding Wastewater Line Construction

Council is requested to approve an Interlocal Agreement between the City of Garland and GISD for the design of approximately 660 linear feet of 8” wastewater main from the new Linda L. Griffin Elementary School at 5200 Broadmoor Drive to Northwest Highway. Unless otherwise directed by Council, this item will be scheduled for formal consideration at the July 21, 2026 Regular Meeting.

GISD is building a new elementary school at 5200 Broadmoor Drive and is already installing a storm sewer along Birchwood Drive to serve it. Since the street is being dug up anyway, the City wants to run a new 8-inch wastewater line in the same roadway — both to serve the new school and to get some existing homes in the area off an existing sanitary line that currently runs between houses instead of running under the street. Under this agreement, GISD handles the design procurement and the City pays for it: $22,400 for design costs. Construction costs will come back to Council in a separate agreement once the design is finished. It’s a practical way to avoid tearing up the same road twice.

3. Resolution Amending the Authorized Representatives for the Texas Local Government Investment Pool

Council is requested to consider approving a resolution amending the authorized representatives for the purposes of participation in the Texas Local Government Investment Pool.

This is bookkeeping, but important bookkeeping. TexPool is a state-overseen investment pool that cities use to safely invest public funds while keeping them liquid — think of it as the shared savings account Texas local governments use instead of picking their own investments. Only certain named staff are authorized to move money in and out of it. Because of organizational changes, we’re updating that list: Accounting Manager Katelyn Ellis is being added, Karen Hollingsworth is being removed, and John Corley is losing inquiry-only access. Assistant City Manager Matthew Watson, CFO Allyson Bell Steadman, and Financial Services Manager Donald Daugherty stay on as authorized representatives. Nothing changes about how the money is managed — just who’s allowed to touch it.

VERBAL BRIEFINGS

4. Introduction of Assistant City Manager Jeffrey Bryan

Council is requested to receive an introduction to the City’s new Assistant City Manager, Jeffrey Bryan.

Presenter: Mike Betz, City Manager

Jeffrey Bryan, who has served as our Chief of Police, has been promoted to Assistant City Manager. Council will get to formally meet him in his new role tonight.

Chief Bryan was appointed Police Chief back in February 2019, succeeding Chief Mitch Bates, after 22 years with the Garland Police Department (24 years in law enforcement overall). He holds a bachelor's degree in political science from Texas A&M and a Master of Public Affairs from UT Dallas — he originally set out to go to law school, took a detour into policing to get some real-world experience first, and never left. Under his leadership, the department has leaned into a community- and service-oriented approach, and Garland has consistently ranked among the safest cities of our size. It's a well-earned promotion, and I'm glad we get to keep his experience in-house as he moves into City Hall leadership.

5. Introduction of Proposed Interim Chief of Police Scott Vornberg

Council is requested to receive an introduction to the City Manager’s proposed Interim Chief of Police, Scott Vornberg. The City Manager will seek confirmation of Chief Vornberg at the July 21, 2026 Regular Meeting.

Presenter: Mike Betz, City Manager

Bryan’s promotion to Assistant City Manager left the Chief of Police position open, and the City Manager has appointed Assistant Chief Scott Vornberg to fill it on an interim basis. State law requires that a police chief be appointed by the City Manager and confirmed by Council, so tonight is the introduction and tomorrow night’s Regular Meeting is where that confirmation vote happens.

Vornberg is a Garland native — he grew up here, graduated from Lakeview Centennial High School, and after earning a business degree from UT Austin, came home and joined the Garland Police Academy. In that time he's worked patrol, been a Field Training Officer and a K9 handler, made lieutenant, supervised the Neighborhood Police Officer unit, and led criminal investigations units including Crimes Against Children and Homicide/Crimes Against Persons. As Assistant Chief, he's commanded every division in the department at one point or another, so this isn't someone stepping into unfamiliar territory — it's about as seamless a handoff as you could ask for.

6. Volunteer Garland Update

Staff will provide an update on the Volunteer Garland Program.

Presenter: DLee Williams, Managing Director- Parks and Recreation

Staff will walk us through where the Volunteer Garland program stands — volunteer engagement, community partnerships, and accomplishments from the past year. This program has been building since late 2024, and it’s the same volunteer network we’ve been standing up to support our Garland Cares Compliance Assistance Program, which pairs residents who can’t afford property repairs with volunteer labor instead of just handing out fines.

There is some great work being done by both staff and our wonderful volunteers providing over $500,000 in value to our community annually. The Garland Cares program is an essential component of making our Garland on the Rise master plan successful, and I’m happy to volunteer along side them.

7. GDC Amendment 25-09

Staff will provide an overview of the GDC amendment related to sign regulations.

Presenter: Nabila Nur, Planning & Development Director

The Development Services Committee asked staff to look for ways to cut unnecessary red tape in our sign rules, and the Plan Commission has already approved this proposal (June 22). A few of the bigger changes:

Wall signs mounted high on a building near a highway could be up to two or three times larger than currently allowed — the idea being that a sign 30 feet up needs to be bigger to be legible from the highway than one at eye level. Downtown wall signs would be capped at a flat 30 square feet regardless of height, up from the current tiered limit of 10 square feet below 12 feet and 30 square feet above it.

Downtown sign owners who want something bigger than downtown’s normal limit, but still within our citywide standard, would only need a Minor Waiver instead of a Major Waiver — a faster, less involved process. Anything bigger than the citywide standard would still need the full Major Waiver.

The rules themselves would also get reorganized into tables, which sounds boring but matters if you’re a business owner or sign contractor trying to figure out what you’re allowed to put up without hiring a lawyer to read the code for you.

Finally, there’s a new “Iconic Sign” designation for signs that add character to places like Downtown or our commercial corridors — these could get creative exemptions from standard sign rules (though not safety rules) if the Cultural Arts Department recommends it and Council approves. Staff is recommending approval of the full package.

(An example of one of Garland’s iconic signs)

8. GDC Amendment ORD 26-03

Staff will provide an overview of a potential GDC amendment in response to the direction from DSC regarding carports.

Presenter: Nabila Nur, Planning & Development Director

We talked about this one back on May 4 — the Development Services Committee has been reviewing our carport, canopy, and porte cochere rules, and tonight staff is bringing back a more detailed version per Council’s direction.

The baseline hasn’t changed since May: carports are only allowed on homes built before May 19, 2015 (the date our current Garland Development Code started requiring two-car garages on new construction), and the rules get stricter if the carport is visible from the street versus tucked in a back yard.

What’s new tonight is the level of detail — minimum 8-foot height, a 400-square-foot area cap, a list of banned materials (unpainted wood, tin, plastic, corrugated metal, canvas, vinyl), and for street-visible carports specifically: 5-foot setbacks, sizing tied to whether the house originally had a one- or two-car garage, a roofline that has to match the house’s pitch and materials, and a rule that at least 85% of each open side has to stay open (so it doesn’t turn into a de facto garage). Staff is also floating separate standards for porte cocheres — the covered driveway structures attached to a house — since those function differently than a standalone carport.

(An example of a carport built outside of the paved surface.)

This is a direction-setting conversation, not a vote — staff wants to know if Council is comfortable with this framework before bringing back a final ordinance, and I would like to hear your thoughts as well. Send me a message at mayor@garlandtx.gov.

9. Audit Committee Meeting Report

Councilmember Ed Moore, Chair of the Internal Audit Committee, and Jed Johnson, City Auditor, will provide a committee report on external audit firm selection.

Councilmember Moore and City Auditor Jed Johnson will update the full Council on where things stand in selecting our next external audit firm — the independent outside firm that reviews the City’s finances each year.

CONSIDER APPOINTMENTS TO BOARDS AND COMMISSIONS

10. Councilmember Margaret Lucht

• Kristin Lucido — Plan Commission

• Rene Granado — Library Board

Councilmembers each appoint their own representatives to certain boards and commissions, and Councilmember Lucht is making two changes tonight: Kristin Lucido to the Plan Commission and Rene Granado to the Library Board. Thank you to both for stepping up to serve.

EXECUTIVE SESSION

11. Real-property matters related to a proposed boundary adjustment agreement, contractual obligations related to improvements, maintenance, and responsibilities for roadways, a compromise settlement agreement, and legal issues related to siting ordinances, interlocal agreements, potential legal claims, and risks associated therewith.

With a new Assistant City Manager and a new interim Chief of Police both getting promoted from within, it is fitting to use The Jeffersons theme “Movin’ On Up” sung by Ja’net DuBois as the closing number.

See you tonight!

If you’ve spent any time on Nextdoor or Facebook this year, you’ve probably run into a claim that Garland’s data centers are draining our water table, spiking your electric bill, or both. I gave you the short version of what staff presented on this back in my regular Work Session Notes for July 6th, but the discussion ran over an hour and a half hour and deserves its own post. This is the deep dive: what these facilities actually use, what protections we’ve built in for ratepayers, and what Garland actually gets out of the deal.

This item traces back to a request Deputy Mayor Pro Tem Ott made at our May 18th Work Session, seconded by then–Mayor Pro Tem Lucht, asking staff to compare data center water usage to our other big commercial water users. Over the following month and a half, that request grew to include electric demand and the broader economic picture. Assistant City Managers Crystal Owens and Matthew Watson, along with GP&L General Manager & CEO Darrell Cline, brought the full report to Council on July 6th. You can watch the entire video here under Item 10.

If you have questions, email me at mayor@garlandtx.gov — and after reading it, if you found this useful, consider sharing it with a neighbor who’s been wondering about the same things.

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The Water Question

This is where the whole conversation started, so let’s start there too. Staff pulled Garland’s top water users for 2025 and, to keep the focus on the actual usage rather than any one business, replaced most names with generic labels:

Notice the drop-off: from 280 million gallons at #1 down to 38 million by #10, and then our largest data center doesn’t show up until rank 129, at 7 million gallons a year — roughly 1.5–2% of what our top users consume. That’s the headline finding: our data centers are not a meaningful driver of citywide water demand.

Here’s why: Data Centers A and D use closed-loop cooling systems — Councilmember Thomas compared it to a car radiator, and that’s exactly right. You fill the system once (roughly 300,000 gallons to go from empty to full), and from there it just recirculates. No ongoing evaporation, no routine “blowdown” like you’d see in an old-style cooling tower, unless there’s a leak or the system needs maintenance. So where does the other 6.6 million gallons in Data Center A’s usage largely come from? Irrigation — the trees and landscaping we require around these sites under city code. Councilmember Thomas asked this directly at the meeting, and staff confirmed: the building itself, and the servers inside it, use almost no water. The lawn does.

Two other water-related things worth knowing. First, wastewater: a data center’s discharge into our sewer system looks like any other office building — restrooms and kitchens, nothing industrial.

Second, our take-or-pay water contract with the North Texas Municipal Water District (NTMWD): Garland currently uses about 90–92% of the water volume we’re contractually obligated to pay for either way, leaving about 2 billion gallons a year that goes unused. New customers — data centers included — help spread that fixed cost over more revenue from water users rather than pushing us past what we’ve already committed to buy.

The 8% of water that we are contracted to buy but don’t actually use is slowly decreasing as the revised agreement with the NTMWD is transitioning to a five-year rolling average of water usage, expected to phase in completely by around 2032.

Electric Demand and the Bigger Grid Picture

Here’s where perspective matters. GP&L’s entire system peaked at 506 MW in 2025. ERCOT — the operator that balances electricity supply and demand for about 90% of Texas — peaked at 83,968 MW that same year. GP&L is about six-tenths of one percent (that’s 0.6% !!!) of the statewide grid, and that share has been shrinking for years simply because Garland is largely built out while other parts of the state keep growing and their electricity needs are increasing.

Statewide, though, the numbers being talked about are enormous. ERCOT’s April 2026 preliminary long-term forecast projects total demand hitting 367,790 MW by 2032 — more than four times 2025 levels — with “large loads” of 75 MW or more (mostly data centers) accounting for roughly 228,420 MW of that growth, close to two-thirds of the total increase. Some more recent committee estimates have pushed that 2032 number above 400,000 MW, a fivefold jump.

I want to flag something Mr. Cline said that I think residents should hear directly, because it’s more candid than you’d expect from a utility presentation: those forecasts are probably not achievable.

It physically takes about five years right now just to get a natural gas combustion turbine built and delivered, so there’s no way that much generation gets built in six years. On top of that, developers are shopping the same project to multiple utilities in multiple locations at once without telling anyone, which means the same facility can get counted two or three times in different utilities’ forecasts. ERCOT already cut last year’s forecast by a third for exactly this reason, and they’re rolling out a new “Batch Zero” review process that requires developers to prove they actually control the land and disclose whether they’re negotiating with other utilities before their project gets counted toward future demand. I appreciated hearing that skepticism instead of the industry just taking the scariest number at face value.

It’s also worth distinguishing between two kinds of data centers. Traditional “cloud” data centers — the ones storing your phone backups and streaming video — tend to be smaller. The ones driving these eye-popping statewide numbers are AI “hyperscale” facilities, which run in the gigawatt range (1,000+ MW) — for scale, that’s roughly double GP&L’s entire current system, in a single facility.

Here’s what’s actually proposed and in service in Garland today:

Three existing facilities, two more proposed, and today we’re using about 12% of the maximum demand that’s been proposed across all five. There’s real room for that number to grow, but it isn’t happening overnight, and both of the proposed facilities (C and E) still have to clear ERCOT’s interconnection review before they can draw that much power — more on that below.

How We Protect Ratepayers

This was, for me, the most reassuring part of the presentation. GP&L’s Large Load Tariff applies to any customer at 20 MW or more of current or expected demand — and critically, GP&L decides what “expected” means, not the customer. That matters because it closes the door on a company trying to underestimate its footprint to dodge the tariff’s protections.

What’s actually in that tariff:

Energy is sold under a “Contract for Differences,” for up to a three-year term (the cap is an IRS rule tied to protecting GP&L’s tax-exempt bond status, not a policy choice). GP&L buys power on the customer’s behalf based on their forecasted usage; if they use more than forecast, they pay the market-rate difference; if they use less, GP&L resells the surplus and passes the gain or loss back to them. The upshot is that GP&L — and by extension, the rest of us — isn’t exposed to the price risk of guessing wrong on a data center’s usage.

ERCOT’s pass-through charges go straight to the customer. Transmission costs are allocated based on who benefits: if an upgrade solely serves one data center, that customer pays for it outright; if it benefits the wider grid, the cost gets shared across all ERCOT ratepayers — and Garland actually earns a return on our share of that investment. GP&L’s own administrative overhead is modest; the real financial upside for the City is the 8% targeted return on investment (the PUC-approved rate is actually 8.46%). On about 100 MW of load, that’s just under $4 million a year in return; scaled to the roughly 500 MW GP&L expects at full build-out, that’s about $20 million a year — separate from, and not shown in, the tax figures below. There’s also an estimated $4–5 million in franchise fees from the ONCOR-side facilities that isn’t reflected in that chart either.

Two more protections worth knowing about. First, if ERCOT ever calls for an emergency load reduction — think Winter Storm Uri in 2021— these customers have to cut their proportional share right alongside everyone else, automatically, the same way our system is already set up to rotate outages fairly. Data centers don’t get special treatment, and residential customers aren’t left absorbing a disproportionate share. Second, security: these customers post mark-to-market collateral plus three months of payment security. Given that roughly 500 MW at today’s prices, assuming an 80% load factor, works out to somewhere around $225–250 million a year in revenue from just these facilities, that’s real money worth protecting against a customer walking away.

I know the question on most people’s minds is simpler than all of that: will my bill go up? The direct answer from Mr. Cline was “we don’t show any type of rate increase in the ten-year forecast for us.” That statement paired with our proposed FY 2026-27 City of Garland Proposed Annual Operating Budget, which was also presented during the Monday Work Session, shows GP&L electricity rates remaining the same for the next fiscal year. Check page 30 if you don’t believe me.

Your GP&L bill is driven by your own usage, not anyone else’s. He was careful not to overpromise on statewide market effects, but pointed out that GP&L locked in favorable long-term power contracts and hedges years ago, so we’re not as exposed to the same price pressure a newly deregulated market participant might be.

The bigger historical drivers of rate increases have been things like the 2023 ERCOT market redesign (a $12 billion market-wide shift) and natural gas prices — not data center load. There’s no rate increase tied to this growth in GP&L’s 10-year forecast or in the proposed FY27 budget. It’s also worth noting ERCOT — the entity actually responsible for keeping the grid stable — has not denied any of Garland’s large-load interconnection requests to date.

The Payoff: What Garland Actually Gets

Total over the past five years: $35.5 million — and that’s before counting the separate franchise fees or the roughly $20 million a year in GP&L return on investment discussed above.

Here’s the context that makes that number matter. Garland’s tax burden currently runs about 60% residential, 40% commercial — most Metroplex cities that have made real progress on this front want more weight on commercial property, not less. Data centers move that needle in a big way: our average commercial property generates about $7,500 per acre in tax revenue, while the average data center property generates roughly five times that. The reason is “business personal property” — the servers themselves. There’s an estimated $1.2 billion worth of taxable server equipment sitting in our two GP&L-area facilities alone, and we collect sales tax when that equipment is purchased, on top of standard property tax on the buildings.

One more piece of context I think is important: unlike 2017, when the City provided a $2.4 million incentive package plus $1.5 million toward fiber optic infrastructure to help land this sector, we have not paid any new incentives to data centers during this current growth wave — aside from one 380 agreement still running for another four years. Altogether, the three existing facilities represent about $1.24 billion in property value, or roughly 4% of Garland’s total property valuation.

What Residents Had to Say

Only one person signed up to speak on this item, which Deputy Mayor Pro Tem Dutton pointed out is a real gap between how much attention this topic gets online and how few people show up to weigh in directly — if you’ve got concerns, this is exactly the kind of item where showing up or emailing me actually makes a difference.

James Cook, a Garland resident, spoke in favor of transparency but also offered a perspective worth including here. He’s the founder of a healthcare AI infrastructure company with his own data center project planned to begin in 2030 — worth stating upfront, since he has a direct stake in how these conversations go. His point: not all data centers are the same. Texas hospitals are required to retain medical imaging — X-rays, mammograms, CT scans — for ten years, typically at two offsite locations they don’t own themselves, for disaster recovery and continuity of care. That stored, de-identified data increasingly gets used to train AI tools that assist (not replace) radiologists and other short-staffed specialties. He also noted these facilities employ people at six-figure wages, not minimum wage.

Somewhat notably, he closed by saying Garland won’t end up being the city where he builds his own facility. He didn’t say why, and I’d be curious too — but I wanted to include that here in the interest of giving you the full picture, not just the parts that make us look good.

Between the closed-loop cooling, the Large Load Tariff, and the fact that these facilities generate roughly five times the tax revenue per acre of a typical commercial property, I walked away from this discussion with a lot fewer questions than I came in with — though as Councilmember Moore put it, we’ve probably created a few new ones for next time. If you’ve got them, my inbox is open: mayor@garlandtx.gov.

Let’s end it with a live version of the song “Dangerous” from Big Data - an electronic music project out of Brooklyn. I’m always a sucker for live performances.

The meeting starts at 6:00 PM in the Work Session room at City Hall (200 N. Fifth St.), and the public is welcome to attend or comment on any item. If you can’t make it, drop me a line at mayor@garlandtx.gov.

As always, my comments are in bold italics.

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WRITTEN BRIEFINGS

1. Annual Performance Update on the City of Garland Housing Agency’s 2025-2029 Five-Year Plan and Administrative Plan Approval

Council is requested to consider approval of the Garland Housing Agency’s Annual Performance Update and the Administrative Plan revisions. This approval is necessary for the City of Garland to continue to receive funding and to provide rental assistance to low-income families from the Department of Housing and Urban Development. Unless otherwise directed by Council, this item will be scheduled for formal consideration at the July 21, 2026 Regular Meeting.

This is the yearly paperwork that keeps federal rental assistance dollars flowing to Garland families through HUD — think Housing Choice Vouchers and similar programs. Nothing changes for residents day-to-day; it’s Council formally signing off on the plan so our Housing Agency stays in compliance and keeps the funding coming.

2. 2025 Edward Byrne Memorial Justice Assistance Grant (JAG)

Council is requested to consider approval allowing the City Manager to execute a Funds Sharing and Fiscal Agency Agreement Memorandum of Understanding (MOU) with the City of Dallas in order to obtain funding for the FY25 Edward Byrne Memorial Justice Assistance Grant (JAG) program. Unless otherwise directed by Council, this item will be scheduled for formal consideration at the July 7, 2026 Regular Meeting.

We’ve received this JAG grant every year I’ve been on Council, and it always comes with the same structure: it’s a federal Department of Justice grant distributed jointly across Dallas County cities, with Dallas acting as “fiscal agent” and Garland required to share 30% of the awarded amount back to Dallas County plus a 7% administrative fee. Last year’s award (FY24) was $28,579.55, and funded personnel, equipment, and technology to address specific public safety needs. This year’s award is for $30,199.89.

3. TWDB - Grant Application - Firewheel Pump Station Project

Council is requested to consider approving a proposed resolution authorizing the submission of an application to the Texas Water Development Board (TWDB) for up to $35 million in grant funding for the Firewheel Pump Station Project. Unless otherwise directed by Council, this item will be scheduled for formal consideration at the July 7, 2026 Regular Meeting.

$35 million is a big number, so let me be clear about what this vote actually does: it authorizes staff to apply for the grant, not spend the money. TWDB funds water infrastructure projects across the state, and the Firewheel Pump Station is a capital project our water system needs regardless — if we land this grant, it’s a significant win for ratepayers because it means less of that cost gets financed through water rates or bonds.

4. Resolution Approving a Jointly Owned Facility Exchange Transaction Between Oncor and the Texas Municipal Power Agency

Council is requested to consider approving a resolution, as a member city of the Texas Municipal Power Agency (TMPA), that, subject to the approval of the other member cities, would approve a proposed transaction between TMPA and Oncor for the purchase and exchange of certain transmission assets in Denton County. Unless otherwise directed by Council, this item will be scheduled for formal consideration at the July 21, 2026 Regular Meeting.

Garland is one of the member cities that jointly owns TMPA, so any major asset transaction TMPA enters into needs sign-off from each member city’s council — this is Garland’s piece of that approval. It’s a Denton County transmission asset swap with Oncor; similar in spirit to the GP&L / LCRA transmission deal we discussed back in June, just on the TMPA side of our power arrangements.

5. Amendment to the Civil Service Classifications Ordinance for Police and Fire

Council is requested to consider the approval of an amendment to the Civil Service Classifications and Compensation Ordinance, pursuant to Chapter 143 of the Texas Local Government Code. Unless otherwise directed by Council, this item will be scheduled for formal consideration at the July 7, 2026 Regular Meeting.

Chapter 143 governs how Texas cities set up civil service protections and pay structures for police and fire. This amendment updates our local ordinance’s classifications and compensation — routine maintenance to keep our pay and rank structure current, but worth Council’s attention since it directly affects how we recruit and retain officers and firefighters.

VERBAL BRIEFINGS

6. Interview for Appointment to the Texas Municipal Power Agency

Information was posted on the City website regarding the qualifications for the Texas Municipal Power Agency Board Member, in order to provide an opportunity for citizens to apply for the position. Qualified applicants were requested to submit an application by June 12, 2026 and submit a SparkHire interview. Council is scheduled to formally appoint a representative to the Texas Municipal Power Agency at the July 7, 2026 Regular Meeting.

Similar process to the DART Board interviews we ran back in June — applicants submitted video interviews through SparkHire, and tonight Council reviews those ahead of a formal appointment tomorrow. TMPA is one of our joint power agencies, so this is an important seat for anyone who cares about how Garland’s electric supply gets managed regionally.

7. Garland Chamber of Commerce 2026 Mid-Year Report

Garland Chamber of Commerce staff will present the 2026 Mid-Year Report. Presenter: Paul Mayer, Garland Chamber of Commerce

An informational check-in from the Chamber on how business activity, membership, and their programs have trended through the first half of the year. No Council action needed — just good to hear directly from the folks working alongside us on economic development.

The Chamber does great work regarding business retention and has interviewed many businesses to ascertain their primary business concerns. As mayor, I want to work on the items the city can control including infrastructure and permitting delays.

8. Presentation of the FY 2026-27 Proposed Annual Operating Budget

Presentation of the City Manager’s FY 2026-27 Proposed Annual Operating Budget. Presenter: Mike Betz, City Manager, Allyson Bell Steadman, Chief Financial Officer, Fahad Qadir, Budget Manager

This is the headline item tonight. The City Manager’s office will walk us through the first full draft of next year’s budget — this kicks off our summer budget season, which will include public hearings before Council formally adopts a budget and tax rate later this summer. The formal budget approval schedule is below:

July 7, 2026 - Proposed Budget available for public review in libraries, City Secretary’s Office and City’s website

July 20, 2026 6:00 PM - Regular Work Session - Council continues discussion of Proposed Budget

July 25, 2026 8:30 AM - Special Council Work Session - Department presentations and Council continues discussion of Proposed Budget

July 28, 2026 6:00 PM - Special Council Meeting - Submittal of appraisal role and vote to place a proposal to adopt the Tax Rate for 2026-27 at a future meeting, including public hearing dates

August 3, 2026 6:00 PM - Regular Work Session - Council continues discussion of Proposed Budget

August 4, 2026 7:00 PM - Council Regular Meeting - Hold Public Hearings on the Proposed Budget and Tax Rate

August 11, 2026 6:00 PM - Special Council Work Session - Hold Public Hearings on the Proposed Budget and Tax Rate, then Council continues discussion of Proposed Budget

August 17, 2026 6:00 PM; Regular Work Session - Council provides final direction on the Proposed Budget

August 17, 2026 7:00 PM - Council Regular Meeting -

1. Hold Public Hearing on the Tax Rate
2. Hold Public Hearing on the Proposed Budget
3. Adopt Ordinance Ratifying Property Tax Revenue
4. Adopt 2026-27 Annual Operating Budget
5. Set Tax Rate
6. Call for a Tax Rate Election in November 2026

Once the budget is available for viewing, I encourage all Garland citizens to review it and provide your feedback. Your input is most valuable in how we spend your taxpayer dollars over the next year.

9. Proposed Development Agreement for 505 Centerville MF, LLC

Council is requested to consider a development agreement between 505 Centerville MF, LLC and the City of Garland. Unless otherwise directed by Council, this item will be scheduled for formal consideration at the July 21, 2026 Regular Meeting. Presenter: Ayako Schuster, Economic Development Director

“MF” here means multifamily — this is an economic development agreement tied to a multifamily housing project planned for the 505 W. Centerville site. The developer proposes 152 units in a three-story development on the 4.361 acre lot. The site has been vacant for over seven years and has racked up fines from our Code Enforcement officers due to the poor condition of the site.

(Proposed site plan)

This agreement will waive those fines for the new owner if the developer receives financing for the project within one year and receives a Certificate of Occupancy within 2.5 years of receiving financing.

10. Data Center Water and Electric Usage Report and Discussion of Economic Impact and Community Benefits

Council requested staff to prepare a report on water and electric usage by data centers in Garland and compare it to other industrial users. Staff will also discuss the potential economic impact and community benefits of data centers. Presenter: Crystal Owens, Assistant City Manager, Matthew Watson, Assistant City Manager, Darrell Cline, General Manager & CEO

Follow-up to the data center water usage report several of us requested back in June — this time staff is also bringing the electric side and a broader look at economic impact and community benefits, not just the resource-use numbers. Given how much attention data centers are getting nationally, I think it’s important we look at the full picture, costs and benefits both.

(A ranking of our top 10 water users with the two highest data center users included for comparison.)

Data Centers A and D operate a closed loop cooling system designed for “net zero” evaporation with the majority of water use coming from the irrigation as required by city code.

Regarding the electricity usage of data centers, the five data centers in Garland have maximum allowed demand and current demand per the chart below:

The Energy Reliability Council of Texas (ERCOT) is responsible for scheduling and dispatching power to balance electricity supply and demand for approximately 90% of Texas. To give an idea of the scale of the Texas grid, GP&L’s 2025 peak demand was 506 MW while the entirety of ERCOT’s 2025 peak demand was 83,968 MW. GP&L accounted for only 0.6% of ERCOT’s peak demand.

GP&L sells power to those data centers within its service area and operates transmission assets which receive an 8% return on investment. Over the past five years, data centers have generated $35.5 million in tax revenue. That revenue pays directly for public safety, parks and recreation facilities, libraries and special events within our city.

(Economic impact of data centers in Garland over the past five years.)

11. Mayor Appointments to Council Committees and Outside Boards

The Mayor will brief Council on his selection of appointments to the Council Committees and Outside Boards. Presenter: Mayor Dylan Hedrick

Each year the Mayor assigns Councilmembers to our various council committees and outside boards — the North Central Texas Council of Governments (NCTCOG), the Dallas Regional Mobility Council (DRMC), and the Regional Transportation Committee (RTC). I’ll walk through my selections tonight; it’s routine but important housekeeping for how Council’s work gets divided up over the coming year.

12. Audit Committee Meeting Report

Staff will provide Council with updates on recently completed audits by the Internal Audit Department. Presenter: Jedson Johnson, City Auditor

City Auditor Jed Johnson will brief us on three recently completed internal audits (Engineering Fee Assessment and Compliance Audit, Traffic Signal Equipment Modernization Program Audit, and the Garland Visitor Center Audit) as well as two management reports made in response to the Municipal Wastewater Treatment Agreement Audit and the Fire/EMS Controlled Substance Audit.

These reports are one of the best tools we have for making sure city departments are running efficiently and following their own procedures — always worth a close look.

13. Travel Expenses Related to Councilmember Moore’s Attendance at the 2026 Infrastructure Summit

Council will discuss whether to approve, by consensus, travel expenses related to Councilmember Moore’s attendance at the 2026 Infrastructure Summit. Presenter: Ed Moore, Councilmember

A routine consensus item — Councilmember Moore is asking Council to approve reimbursement for travel to the 2026 Infrastructure Summit in August in Las Colinas, a conference relevant to his committee work. These requests come to full Council for transparency any time a member travels on the City’s dime.

CONSIDER APPOINTMENTS TO BOARDS AND COMMISSIONS

14. Councilmember Ed Moore

• Mark “Vince” Falsarella - Parks & Recreation Advisory Board

Thank you to Vince for being willing to serve on our Parks & Recreation Advisory Board — these volunteer appointments are how residents get a direct hand in shaping city services.

15. Garland Youth Council Appointments

Council is requested to consider appointments to the Garland Youth Council for 2026-27 as presented. Unless otherwise directed by Council, these appointments will be scheduled for formal consideration at the July 7, 2026 Regular Meeting.

Excited to welcome a new class to the Garland Youth Council this year. It’s one of my favorite programs — a great way for Garland teens to get real exposure to how local government works. I look forward to seeing all that they will accomplish this year.

EXECUTIVE SESSION

16. Competitive matters related to Garland Power & Light as it pertains to the quarterly briefing from the Risk Oversight Committee

The City Council will recess from the open session and convene in a closed executive session pursuant to Sections 551.071, 551.086, and 552.133 of the Texas Government Code to discuss the following matter.

This is GP&L’s standard quarterly briefing from its Risk Oversight Committee, which by law has to happen behind closed doors since it touches competitive/market information. Nothing more I can share here — just routine oversight of our electric utility’s risk management.

Fitting to be back at it the Monday after the Fourth — hope everyone had a safe and fun holiday with family. Today’s musical selection is a touching song from Sufjan Stevens called “Fourth of July” written about his complex relationship with his estranged mother, Carrie, as she lay dying in a hospital. I encourage you to check out any of Sufjan’s albums if you don’t know about him already. He’s one of my favorites.

We’ll also select our new Economic Focus Areas, hear updates on Atmos rates, Opportunity Zones, and data center water usage, and elect a new Mayor Pro Tem and Deputy Mayor Pro Tem.

The meeting starts at 6:00 PM in the Work Session room at City Hall (200 N. Fifth St.), and the public is welcome to attend or comment on any item. If you can’t make it, drop me a line at mayor@garlandtx.gov.

As always, my comments are in bold italics.

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PUBLIC COMMENTS ON WORK SESSION ITEMS

CONSIDER THE CONSENT AGENDA

WRITTEN BRIEFINGS

1. Clean-up Amendments to Chapter 22 of the Code of Ordinances

Council is requested to consider adopting “clean-up” amendments to Chapter 22, Health, of the Code of Ordinances related to the regulation of food trucks. Unless otherwise directed by Council, this item will be scheduled for formal consideration at the June 16, 2026 Regular Meeting.

Senate Bill 1008 and House Bill 2844 from the last legislative session created a statewide licensing and inspection framework for mobile food vendors, which means a lot of our old local rules — separate health permits, Dallas County mobile food permits, local food manager cards — are now out of step with state law. This ordinance is housekeeping: it brings our Code in line with the new state framework while preserving our ability to regulate where and how food trucks (including ice cream trucks) operate through fire, traffic, right-of-way, parks, and nuisance rules. We’re not giving up local control over food trucks, just making sure our books match what Austin now requires.

2. Sale of Certain GP&L Transmission Facilities

Council is requested to consider the approval of the sale of certain GP&L Transmission Facilities for an estimated approximate price of $5 million. Unless otherwise directed by Council, this item will be scheduled for formal consideration at the July 7, 2026 Regular Meeting.

This one takes a little explaining. As part of the state’s Permian Basin Reliability Plan, GP&L and the Lower Colorado River Authority (LCRA) both own pieces of transmission line in West Texas that need a second circuit added. Rather than each utility owning equipment on the other’s structures, GP&L and LCRA have worked out a swap of sorts: GP&L would sell LCRA about 4.5 miles of the North McCamey-to-Nevill Road line at net book value (roughly $5 million), and in exchange GP&L keeps full ownership of the new second circuit on the remaining 7.9 miles of that line plus the entire second circuit on the Bakersfield-to-Nevill Road line. It’s a cleaner ownership arrangement for both utilities going forward, and it still has to clear the Public Utility Commission of Texas.

3. Notice of Intent for Sale of Certificates of Obligation, Series 2026

Council is requested to consider a resolution directing the publication of notice of intention to issue certificates of obligation to fund Capital Projects. Unless otherwise directed by Council, this item will be scheduled for formal consideration at the July 7, 2026 Regular Meeting.

Presenter: Allyson Bell Steadman, Chief Financial Officer

This is the first formal step toward funding the 2026 CIP that Council adopted back in February. Approving this notice of intent doesn’t commit us to issuing any debt — it just starts the legal clock. The maximum amount in the notice is set at $70 million, and the actual Certificates of Obligation would come back to Council for formal approval at the July 7 Regular Meeting.

4. General Obligation (GO) Bonds, Series 2026

Council is requested to consider the issuance of General Obligation Bonds to fund the 2004, 2019, and 2025 Bond Programs.

Presenter: Allyson Bell Steadman, Chief Financial Officer

Following up on the bond election results from last year, staff is recommending we issue roughly $70 million in tax-exempt GO Improvement Bonds and another $15 million in taxable GO Improvement Bonds to fund projects from our 2004, 2019, and 2025 voter-approved bond programs. These would be 20-year fixed-rate bonds, and importantly, the projected debt service payments are designed to fit within our existing financial model without requiring a tax rate increase.

5. Water and Sewer System Revenue Refunding Bonds, Series 2026

Council is requested to consider refunding approximately $60 million of Water and Sewer System Commercial Paper Notes, Series 2015, with Water and Sewer Revenue Refunding Bonds, Series 2026.

Presenter: Allyson Bell Steadman, Chief Financial Officer

This is a refinancing move, plain and simple. We currently have about $60 million in variable-rate commercial paper notes funding water and sewer capital projects. Current market conditions give us a window to convert that to fixed-rate, 20-year Water and Sewer Revenue Refunding Bonds, which should generate debt service savings for our utility customers over time.

VERBAL BRIEFINGS

Council may ask for discussion, further information, or give direction to staff on an item posted as a verbal briefing.

6. Interviews for Appointments to the Dallas Area Rapid Transit Board

Information was posted on the City’s website regarding the qualifications for the Dallas Area Rapid Transit Board Members in order to provide an opportunity for citizens to apply for the positions. Qualified applicants were requested to submit an application by June 5, 2026. At the close of the notice period, 22 applicants responded. Council is scheduled to formally appoint two representatives to the Dallas Area Rapid Transit Board at the June 16, 2026 Regular Meeting.

We had a great response — 22 applicants for two DART Board seats. We sent pre-interviews to all candidates and narrowed it down to our top five. Tonight Council will interview candidates ahead of making our formal appointments tomorrow night at the Regular Meeting. These are important seats; DART decisions affect Garland riders, our transit corridors, and how regional transportation dollars get spent, so I appreciate everyone who threw their hat in the ring.

7. Adoption of the City of Garland Housing Strategy Prepared by CZB, LLC

Council is requested to consider the adoption of the City of Garland Housing Strategy prepared by CZB, LLC. Unless otherwise directed by Council, this item will be scheduled for formal consideration at the June 16, 2026 Regular Meeting.

Presenter: Becky King, Managing Director - Community and Neighborhood Development

This is the culmination of the Housing Study work CZB has been doing for us, building on the January 10 Housing Workshop. The Strategy lays out a two-pronged approach: helping residents who are struggling with the affordability gap through expanded assistance programs, and addressing the market gap — places where private investment hasn’t kept pace — through new Economic Focus Areas, corridor improvements, mixed-use activity centers, and targeted neighborhood revitalization.

It also sets a long-term vision for roughly 2,500 additional housing units in Downtown Garland over the next decade. This is a big-picture document that will guide a lot of our neighborhood and housing decisions for years to come, and it pairs directly with the next two items. You can read my summary here.

8. Selection of Economic Focus Areas

Council will identify and select the Economic Focus Areas as required by the Garland on the Rise 2026-2036 Strategic Plan. Unless otherwise directed by Council, this item will be scheduled for formal consideration at the June 16, 2026 Regular Meeting.

Presenter: Becky King, Managing Director - Community and Neighborhood Development

Economic Focus Areas are how we put the Housing Strategy and the Strategic Plan into action geographically — they’re the places where the City will concentrate public investment and try to attract private reinvestment over the next decade. Staff has put together a recommendation, and tonight Council will work through selecting those areas before formal adoption tomorrow.

9. Garland on the Rise 2026–2036 Strategic Plan Adoption

Council is requested to consider adoption of the Garland on the Rise 2026–2036 Strategic Plan. Unless otherwise directed by Council, this item will be scheduled for formal consideration at the June 16, 2026 Regular Meeting.

Presenter: Mike Betz, City Manager

This is the big one — our ten-year roadmap for the City, organized around four focus areas: Strengthen Financial Capacity, Accelerate Economic Redevelopment, Protect Core Services, and Evaluating Results (Align, Execute, Measure, and Communicate). Once adopted, this plan becomes the lens through which we view our budget, our capital projects, and our performance measures for the next decade. A lot of work from staff and the community went into this, and I’d encourage residents to take a look at the Strategic Plan documents in the agenda packet.

One addition worth noting: Since the draft was presented, City Manager Mike Betz, in consultation with the Council, proposed two small but meaningful changes to the plan, prompted by a question Council Member Segoviano raised during the June 6 workshop about where green space fits in a redevelopment strategy.

CZB’s answer stuck with me. In a built-out city like Garland, scarcity is an asset. The open and green spaces we deliberately choose to keep — and improve — can actually raise the value of the land around them. As they put it, a clean, well-kept open space can work like an ATM for the surrounding blocks. Residents who followed the workshop echoed the same idea.

The plan should say so directly. The two proposed additions do exactly that.

The first adds a new objective under Goal 2 — treating strategic open space as a value-creating asset, not a development opportunity foregone. It’s a selective, data-informed approach applied only where analysis shows that preserving or improving a space will strengthen an Economic Focus Area. Each Focus Area plan will identify any such spaces, spell out the intended market effect, and track it.

The second ties that idea to a measurable outcome under our fiscal-impact objective. Without a way to track it, a good intention is just that. The new indicator adds the effect of preserved or improved open space on adjacent taxable value to the set of fiscal metrics already planned for tracking — economic productivity per acre, private dollars leveraged, and the rest.

Together, these additions close a real gap in the current draft. The core logic of the plan is to get more economic value out of the land we already have. Recognizing that the right open space, in the right place, is itself a redevelopment tool is fully consistent with that — and now it will be measured like one. We will discuss these two additions tonight.

Also read a summary of the document I wrote on my Substack last week here.

10. Replace Resolution No. 10468 for the Downtown Historic District Revitalization Grant Program

Council is requested to consider replacing Resolution No. 10648 for the Downtown Historic District Revitalization Grant Program.

Presenter: Nancy Tunell, Business Development Manager, Dana Lodge, CVB & Events Director

Our Revitalization Review Committee and the TIF #1 Board have recommended some updates to this grant program: setting a maximum reimbursement cap, requiring a percentage of grant-funded projects go toward exterior improvements, and allowing non-tax-producing entities to participate, but only for life-safety and historic façade work. These are reasonable guardrails that should help stretch the program’s dollars further across more Downtown buildings while keeping the focus on the exteriors that make Downtown look great.

Here are some before and after examples of the revitalization work that has gone on already Downtown:

11. Update Regarding the Rate Review Mechanism (RRM) Framework and Atmos Energy Annual Rate Case**

Staff will provide an update on the annual Atmos Rate Review Mechanism (RRM) rate case and process. No City action is necessary at this point.

Presenter: Matthew Watson, Assistant City Manager

This is an informational item, but an important one if you’ve noticed your gas bill creeping up. Atmos has a statutory right to an annual rate increase through the GRIP process, which Garland — through the Atmos Cities Steering Committee — has long objected to because it doesn’t account for rising revenues or falling costs elsewhere. The RRM is the negotiated alternative ACSC cities use instead of GRIP. No action tonight, but expect a recommendation from ACSC to come back to Council later this summer.

12. Update Regarding Potential Opportunity Zone Nominations**

Staff will provide an overview of the Opportunity Zone Program and present recommended eligible census tracts for nomination to the State of Texas for consideration as Opportunity Zones.

Presenter: Matthew Watson, Assistant City Manager

Opportunity Zones are a federal tool that gives investors tax incentives to put capital gains into designated areas, which can help spur housing and commercial redevelopment. The State has opened a nomination window with a June 26 deadline, and staff has identified Garland census tracts that line up with our Strategic Plan, our Housing Strategy, and known redevelopment priorities. Staff is asking for a Resolution of Support at tomorrow’s Regular Meeting to strengthen our submission to the State.

13. Data Center Water Usage Report

Council requested staff to prepare a report on water usage by data centers in Garland and compare it to other industrial users.

Presenter: Crystal Owens, Assistant City Manager

With all the talk lately about data centers and their water demands, several of us asked staff to pull together the actual numbers for Garland and put them in context against our other large industrial water users. Looking forward to seeing what staff found.

14. Consider the Appointment of a Mayor Pro Tem and Deputy Mayor Pro Tem

Council is requested to consider the election of a Mayor Pro Tem and, if so desired, a Deputy Mayor Pro Tem.

Presenter: Mayor Dylan Hedrick

Each year Council elects a Mayor Pro Tem (who steps in if I’m unavailable) and, if desired, a Deputy Mayor Pro Tem. This is a routine but important bit of housekeeping for how Council operates over the coming year.

CONSIDER APPOINTMENTS TO BOARDS AND COMMISSIONS

Terms are usually staggered whereby at least half of the membership has previous experience. Members are appointed based on qualifications.

15. Councilmember Ed Moore

- Dr. Vicki Jackson-High - Board of Adjustment

- Alex Alexander - Community Multicultural Commission

- Daniel Camp - Library Board

- Terry Hillard - Plan Commission

- Jeff Smith - Tax Increment Finance #2 South Board

- Simon Mathew - Unified Building Standards Commission

Councilmember Moore has a slate of board and commission appointments and a vacancy to fill tonight. Thank you to everyone willing to volunteer their time on these boards — they do a lot of the unglamorous, behind-the-scenes work that keeps Garland running well.

ANNOUNCE FUTURE AGENDA ITEMS

EXECUTIVE SESSION

The City Council will adjourn into executive session pursuant to sections 551.071, 551.074, and 552.087 of the Texas Government Code to deliberate and discuss the following:

16. A potential offer by the City of financial and other incentives to a business prospect and the receipt of commercial or financial information that the City has received from that same business prospect, which the City seeks to have locate within the City in the area of South Jupiter Road and Marquis Drive, and with which the City is conducting economic development negotiations (551.087); and attorney/client communications related to the same (551.071).

Can’t say much here other than that we’re working on attracting another business to Garland, this time in the South Jupiter Road and Marquis Drive area. More to come if and when there’s something to announce publicly.

17. Personnel matters related to the resignation, employment, or duties of the Assistant City Manager Phillip Urrutia, who has accepted a job as city manager for another municipality, and its impact on the Office of the City Manager and the potential filling of the vacancy (551.074); and attorney/client matters related to the same (551.071).

Congratulations to Phillip Urrutia, who has accepted a city manager position with another municipality. Phillip has been a steady hand for Garland across a variety of issues over the years, and I wish him the best!

ADJOURN

Lots to chew on tonight, especially with the Strategic Plan and Housing Strategy both landing on the same agenda — it really does feel like Garland is on the rise. Fitting, then, that I’ll close with “Rise” by Herb Albert. See you tonight!

Share

I want to walk through it the way it was presented to us, because I think the framework matters as much as any individual program. You can view their presentation from our Work Session here.

The problem, in plain terms

The housing study found that much of Garland is caught in what amounts to a negative feedback loop. When a neighborhood’s housing stock starts to look tired, the market responds — fewer buyers, lower offers, less willingness from owners to reinvest. That, in turn, makes the area look even more tired. Around it goes. Notice the bottom half of the loop in the graphic below.

Breaking that loop comes down to closing two different gaps:

The Market Gap is the distance between what it costs to build or maintain a home and what people are currently willing to pay for one here. The Affordability Gap is the distance between what housing costs and what lower-income households can actually afford.

Here’s the part that’s easy to miss: these two gaps aren’t separate problems. Each one makes the other worse. A weak market makes it harder for low-income households to find decent, affordable housing. And a city that only focuses on affordability programs, without also addressing market weakness, will keep losing ground on its tax base and overall housing quality.

At our January workshop, Council gave clear direction: address both gaps. Continue and expand the affordability work we already do, and begin a new, additive effort to strengthen the market. That second piece — the market-side strategy — is what this draft plan is about.

The big idea: Economic Focus Areas

Just like the broader “Garland on the Rise” strategy, this housing plan is built on focus, not spread.

Rather than try to do a little bit of everything everywhere, the plan identifies Economic Focus Areas — networks of corridors, intersections, and neighborhoods where targeted public investment has the best chance of triggering private reinvestment. Downtown sits at the center of this network, with The Wedge, near Saturn Road and Northwest Highway, identified as the first Economic Focus Area outside of Downtown.

Each Focus Area has three parts that work together:

Corridors are the roads people drive, walk, and bike through every day. Some get an “Enhancement” treatment — trees, lighting, signage cleanup, better crosswalks — and a few get full “Transformation,” with sidewalks, reduced curb cuts, and redesigned intersections. The research here is striking: walkable, mixed-use development can generate two to five times the value per acre of a typical auto-oriented strip.

Nodes are the activity centers that form where major corridors cross. The plan identifies a Regional Node at Saturn & Northwest Highway, a Community Node at Saturn & Kingsley, and a Neighborhood Node at Kingsley & First — each with a different scale and mix of housing types, ranging from higher-density apartments near the regional crossing to townhomes and small mixed-use buildings closer to the neighborhoods.

Neighborhoods adjacent to these corridors and nodes get attention too, but in two different ways depending on their condition. Growth neighborhoods get revitalization support designed to catalyze private reinvestment and build residents’ pride and capacity. Legacy neighborhoods get stabilization support — help for vulnerable homeowners to make critical repairs and stay in their homes safely.

Outside of these Focus Areas, the City continues its baseline citywide services: code enforcement, rental inspections, landlord training, and the safety-net repair programs that have served Garland for years. Those don’t go away — they continue everywhere, with some of them doing “double duty” inside Focus Areas to chip away at both gaps at once.

What this looks like on the ground

A few concrete pieces stood out to me from the presentation.

The Wedge is positioned to add somewhere between 950 and 1,200 new housing units across its three nodes over time — everything from higher-intensity apartment buildings near Saturn & Northwest Highway down to townhomes and small mixed-use near Kingsley & First. The neighborhoods surrounding it — places like Southgate, Ridgewood, Devonwood, and Broadway — each have their own profile of how much reinvestment is needed, and the plan calls for systematically working through that backlog block by block.

Downtown continues to build on the momentum of Garland Square. The plan calls for roughly 2,500 new housing unitsover the next decade to grow Downtown’s population to the point where it can sustain its own retail and restaurants — phased out over four stages, starting with site identification and public realm improvements in the first two years, moving to catalyst development in years three through five, and reaching full build-out toward the ten-year mark.

New incentive programs round out the toolkit. In Growth neighborhoods, that includes a Block Challenge matching grant for curb appeal, a Homeowner Renovation cost-share program for bigger interior and exterior projects, and a Single-Family Developer Program to help close the gap on acquisition and rehab of homes for resale. In Legacy neighborhoods, a restructured Home Improvement Incentive Program and a new Rental Rehab Program focus on health, safety, and livability — with rent preservation built in as a goal.

Every one of these programs is built around a “give and get”: public dollars in exchange for private investment that improves a property’s condition, marketability, or affordability — addressing whichever of the three underlying gaps (willingness, appraisal, or affordability) is holding a project back.

How we’ll know it’s working

This is a long-term plan — CZB was upfront that implementation in each Focus Area should be expected to take 10 to 20 years of disciplined, consistent effort. New programs typically take about three years to get established in a neighborhood, because so much of the work is about building trust with residents.

The measures of success line up closely with what we’re already tracking citywide: a stable or shrinking share of cost-burdened renters and homeowners, a growing share of properties needing only minor reinvestment, narrowing gaps between Garland’s home values and household incomes and those of the broader region, and nodes that mature into genuine mixed-use activity centers with low vacancy and rising value per acre. For Downtown specifically, success means at least 16% of the city’s population living within a mile of the Square.

Where this fits

This draft housing strategy isn’t a standalone initiative — it’s one of the tools that supports the broader direction we’ve already set with Garland on the Rise — the strategic plan I wrote about earlier this week. It’s designed to work alongside the Comprehensive Plan, the Development Code, our Economic Development Plan, and future capital and operating budgets.

This was a draft presentation, and Council will continue to work through it before anything is finalized. But I wanted to share where things stand, because this is exactly the kind of targeted, disciplined reinvestment our broader strategy depends on — strengthening what we already have, one corridor and one neighborhood at a time.

As always, I welcome your questions and feedback.

CZB identified one focus area as “The Wedge.” Well here is surf rock legend Dick Dale with his legendary fast-paced, reverb-heavy surf rock instrumental “The Wedge” named after a famous surfing spot in Newport Beach, California.

This past Saturday, the City Council held a special work session to discuss something bigger than a budget, bigger than a single project, and bigger than any one corridor or neighborhood.

We discussed the next decade of Garland.

I encourage you to view the meeting here and listen to City Manager Mike Betz as he walks Council through the plan.

Share

The plan presented to us is called Garland on the Rise: Economic Resilience Through Strategic Reinvestment. At its heart, it is built around a simple idea:

We do not need a bigger Garland. We need a stronger one.

Garland is largely built out. Unlike newer suburbs, we cannot grow our way forward by expanding outward or annexing new land. Our future has to come from making the land we already have more productive — strengthening commercial corridors, revitalizing aging areas, improving neighborhoods, and attracting the kind of reinvestment that supports the services residents count on every day.

Why this matters now

The financial reality facing Garland is straightforward.

The cost of operating the City — things like fuel, equipment, technology, construction, insurance, and employee compensation — is rising at about 7% a year. At the same time, state law limits growth in the City’s property tax revenue to about 3.5% a year. Nearly two-thirds of the City’s day-to-day budget goes to public safety: police, fire, and emergency response.

That math matters.

When costs rise faster than revenue year after year, the gap compounds. If we do nothing, those pressures will shape Garland by accident. This plan is about choosing a better path — shaping Garland’s response on purpose.

The goal is not to chase growth for growth’s sake. The goal is to build the financial strength needed to protect public safety, maintain infrastructure, support parks and libraries, preserve quality of life, and keep Garland competitive in North Texas.

What happens if we do not act

It is important to be clear about the alternative.

If Garland does not act with urgency, the pressures we discussed Saturday do not go away. They compound.

Costs will continue rising faster than revenue. The City will continue facing the same structural gap year after year. And because public safety already makes up nearly two-thirds of the day-to-day budget, there are not easy or painless places to absorb that pressure.

Over time, inaction would mean fewer choices.

It could mean deferred maintenance on streets, facilities, parks, and infrastructure. It could mean slower progress in aging commercial corridors. It could mean fewer dollars available for neighborhood reinvestment, public safety capacity, libraries, parks, and the quality-of-life services residents value. It could also mean relying more heavily on the same residential taxpayers instead of growing the commercial tax base needed to help carry the load.

In short, doing nothing is not neutral. As the band Rush sings in their song “Freewill” — “If you choose not to decide, you still have made a choice.”

Without a stronger tax base, Garland risks being shaped by scarcity: reacting to budget pressure, trimming around the edges, delaying needed investments, and watching other North Texas cities compete more successfully for employers, development, and households.

That is not the future we want.

This plan is about acting before the hardest choices are forced on us. It is about building the financial strength to protect the services residents depend on, reinvest in the places that need attention, and keep Garland competitive for the next generation.

The strategy in plain language

The strategy is to grow the value of what we already have.

That means concentrating reinvestment in places with the strongest potential to generate value for the entire city. The plan calls these areas Economic Focus Areas — commercial corridors, aging retail centers, redevelopment districts, infrastructure-ready sites, and nearby neighborhoods where public action can help unlock private investment.

This is important: selecting an Economic Focus Area is not a judgment about the importance of one part of Garland over another. It is a sequencing strategy.

We have limited dollars, limited staff capacity, and limited time. If we spread our efforts too thin, we risk producing visible results nowhere. By focusing first where the opportunity is strongest, we can build momentum, generate new value, and then expand attention and resources to additional parts of the city over time.

Healthy corridors strengthen surrounding neighborhoods. Stable neighborhoods support the businesses and investment those corridors need. The two reinforce each other.

That is the cycle this plan is designed to start.

Four commitments

The plan is built around four major commitments.

First, protect core services. Garland residents expect strong police and fire service, reliable utilities, maintained streets, parks, libraries, neighborhood services, and the workforce needed to deliver them. This plan keeps those services at the center of the conversation while being honest that service levels must remain financially sustainable.

Second, accelerate economic redevelopment. That means targeted public investment, faster and more predictable development processes, neighborhood stabilization, visible corridor improvements, and catalytic projects that encourage private dollars to follow.

Third, strengthen financial capacity. Every dollar has to work harder. The City will need to align budgets with strategy, review programs, pursue outside grants and partnerships, protect reserves, and manage debt responsibly.

Fourth, align, execute, measure, and communicate. A plan that sits on a shelf does not change a city. This one must guide real budget decisions, capital investments, departmental work, and public reporting. The plan calls for performance dashboards, quarterly reviews with department directors, and an annual Council review so residents can see what is working, what is not, and how the City is adjusting.

What residents should expect to see

This is a 10-year plan, and redevelopment takes time. Downtown Garland did not happen overnight. It took years of Council leadership, community support, voter approval, public investment, and City staff execution.

But residents should not have to wait 10 years to see whether we are serious.

In the first year, the plan calls for Council to formally designate initial Economic Focus Areas, align the FY27 budget with the plan, establish public performance measures, and begin visible early improvements such as landscaping, lighting, signage, pedestrian improvements, code enforcement, and other quick wins in designated areas.

Over years three through five, the goal is to see larger public investments underway, private development accelerating, catalytic projects drawing capital, and neighborhood stabilization beginning to show results.

By years six through ten, success should show up in a stronger tax base, healthier reserves, sustained public safety funding, stronger neighborhoods, and a Garland that competes more successfully for investment, employers, and households across North Texas.

Being honest about tradeoffs

A real strategy requires choices.

This plan does not pretend that every good idea can be funded at once, or that every area can receive the same level of investment at the same time. It says plainly that Garland will prioritize targeted redevelopment over spreading investment evenly, strategic alignment over funding programs by habit, long-term sustainability over keeping every service unchanged, and data-driven decisions over political geography.

That honesty is important.

Residents deserve to know not only what we are trying to do, but what we are choosing not to do. The purpose is not austerity. The purpose is discipline — so that Garland can continue funding the services people rely on while building the financial strength needed for the future.

We have done this before

Anyone who has spent a Friday night on the Downtown Square knows what is possible.

Families on the lawn. Live music in the air. Tables full. Children running through spaces that, not long ago, were quiet and underused.

That transformation was not an accident. It moved through every stage of our local democratic process: Council conversations, community input, careful evaluation, voter approval, public investment, and City staff delivering on the promise.

That is the model.

Now the question is whether we can apply that same focus, discipline, and coordination across a broader set of opportunities throughout Garland — and do it with the urgency this moment requires.

I believe we can.

The Garland we are building

Ten years from now, success will not be measured by the number of pages in a plan. It will be measured in stronger neighborhoods, vibrant commercial areas, new businesses, more housing options, sustained public safety, a more balanced tax base, healthier reserves, and a stronger position for Garland in the North Texas economy.

This work will require Council leadership, City staff execution, private investment, and community support.

It will require residents to stay engaged, ask good questions, participate in public meetings, invest in their blocks, support local businesses, and help tell a better story about Garland’s future.

We have done it before.

We will do it again.

Garland is on the rise.

Here is is. The song “Freewill” by Rush. If you choose not decide, you still have made a choice.

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PUBLIC COMMENTS ON WORK SESSION ITEMS

CONSIDER THE CONSENT AGENDA

WRITTEN BRIEFINGS

1. First Baptist Church of Garland: Alley Abandonment

Council is requested to consider abandoning the remainder of Alley Rights-of-Way for redevelopment of the First Baptist Church of Garland site. Unless otherwise directed by Council, this item will be scheduled for formal consideration at the June 16, 2026 Regular Meeting.

If you have driven by First Baptist Church lately, you may have seen a large construction site for a new sanctuary building. This $28 million renovation project continues the work of revitalizing downtown that began with the 2019 Downtown Square bond project.

(Images from https://www.fbcgarland.org/images/uploads/Legacy_Continues/Legacy_booklet_single_pgs_fixed.pdf)

With this agenda item, council is asked to abandon the City’s interest in two alley rights-of-way so that the redevelopment project can continue unencumbered. Garland has already abandoned rights-of-way for the church first in 1901 then again in 1953. With this project, the church will dedicate new easements for landscaping and pedestrian improvements along S. Glenbrook Drive, W. Avenue C, W. Avenue D, and S. Ninth Street.

VERBAL BRIEFINGS

Council may ask for discussion, further information, or give direction to staff on an item posted as a verbal Briefing.

2. Proposals for 116 S. Sixth Street

Staff will provide a presentation on unsolicited proposals the City has received regarding potential development and use of the current City-owned property at 116 S. 6th Street.

Presenter: Andy Hesser, Assistant City Manager, Dana Lodge, CVB & Events Director

The City has received four unsolicited proposals for developing the city-owned property at 116 S. 6th Street. Originally built as Fire Station #1 in 1940, the 4,988 square foot building has since been used by Boy Scout Troop 100.

(The building with the fire trucks in front.)

(Current image courtesy of Google Streetview)

The property was originally included in a 2024 Request for Proposals covering several city-owned downtown properties which received no responses. Since then, we received four unsolicited proposals and have asked the submitters to present their proposals to the council tonight.

The first proposal is for a non-alcoholic bottle shop and event space, vintage goods retail and podcast studio offering $400,000 for the property. The bottle shop is similar to the one currently operating on Main Street in Richardson.

The second proposal is for a wedding and event venue, floral studio and a boutique gift shop. This offer is for $550,000 for the property but requests $600,000 in incentives from the city and requests the city to include and move the adjacent public restroom next to the site.

The third proposal is for a Dallas Training Collective (gym) and physical therapy center for $450,000 with no incentives.

Finally, the last proposal is for a restaurant, art gallery and a speakeasy (Mexican BBQ concept) offering $400,000 for the building or $450,000 if the restroom parcel is included.

With all of these proposals, Council must weigh not only the offering price and economic impact, but how the proposals fit into our Downtown Redevelopment Implementation Plan priorities of retaining the “authentic” feel of Downtown, preserving the historical character, and strengthening Downtown as a destination district.

(Overview of proposals)

It’s an exciting time for Downtown to receive so much interest in this property, and I am looking forward to the discussions tonight.

3. 2026-2027 CDBG, HOME, and ESG Federal Grant Allocations

Staff will present a final overview of the proposed allocation of Community Development Block Grant (CDBG), HOME Infill Partnership Program (HOME), and Emergency Solutions Grant (ESG) funds for Program Year 2026-27.

Presenter: Jason Wilhite, Construction Manager

After tallying and averaging Council’s totals for the distribution of CDGB funds, staff will return tonight to present the final allocations. After the discussion, final allocations will return at our June 16 Regular session for a final vote.

4. Amendment to Chapters 26 and 32 of the Code of Ordinances - Short-Term Rentals

Council is requested to consider an amendment to Chapters 26 and 32 of the Code of Ordinances related to the regulation of short-term rentals. Unless otherwise directed by Council, this item will be scheduled for formal consideration at the June 2, 2026 Regular Meeting.

Presenter: Brian England, City Attorney

In our continuing efforts to balance the rights of homeowners and short-term rental operators (think AirBnB or VRBO), Council will discuss tightening the regulations further. Currently, the city does not have a means to hold occupants of unpermitted or unlicensed short-term rentals accountable after they have been told that the use is unlawful. This means that if a property does not have the right to be used as a short-term rental, we currently cannot charge the occupant with an offense and people continue to use the property illegally. This item will attempt to rectify that issue.

For properties that have had their permit revoked by the city, a sign will be placed in the right-of-way that states, “NOTICE: THE OWNER OF THIS PREMISES DOES NOT HAVE A VALID SHORT-TERM RENTAL PERMIT. IT IS A VIOLATION OF LOCAL ORDINANCE TO OCCUPY OR USE THIS PREMISES AS A SHORT-TERM RENTAL FOR PARTIES, OVER-NIGHT STAYS OR OTHER EVENTS.” With this sign placement, the renters cannot say that they were not aware that they couldn’t use the property as a rental.

5. Real Property Transfer at Holford Road and Naaman Forest Boulevard

Council is requested to consider approving the exchange with Spring Creek Church of an approximate 0.4393 acre tract of property originally acquired for street and right-of-way purposes at the north intersection of Holford Road and Naaman Forest Boulevard to the adjoining landowner for an approximate 0.4609 acre tract of land on the southwest side of Naaman Forest Boulevard adjacent to City-owned property to be used for public purposes. Unless otherwise directed by Council, this item will be scheduled for formal consideration at the June 2, 2026 Regular Meeting.

Presenter: Andy Hesser, Assistant City Manager

Due to the configuration of Holford Road and Naaman Forest Blvd. several triangular shaped tracts were created when the right-of-way was dedicated. With this item we will swap a triangular piece of property (0.4393 acres) the city owns for one owned by Spring Creek Church (0.4609 acres). The tracts are approximately equal in size and will allow the church to have property on the hard corner of Naaman Forest Blvd. for future development.

(The City-owned property)

(The Church-owned property)

ANNOUNCE FUTURE AGENDA ITEMS

EXECUTIVE SESSION

The City Council will adjourn into executive session pursuant to section 551.071 of the Texas Government Code to deliberate and discuss the following:

6. Attorney/client matters concerning privileged and unprivileged client information related to the legal parameters of determining zoning and land use cases brought before City Council (551.071).

Since we are discussing a future development along Sixth Street, here’s “6th Avenue Heartache” by Jacob Dylan’s The Wallflowers. I got to see them perform in May of 1998 at the now closed Texas Sky Festival Park in Corpus Christi. However, I must say that I liked The Toadies who opened the show for them much better!

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Although I missed the Garland Parks Foundation opening of Surf & Swim Saturday afternoon, I am looking towards the official ribbing cutting this Friday. Is a suit and tie appropriate swimwear? Click the picture below to find out!

Tonight your City Council will be back at work with the first official meeting for the three new members in District 1 (Jimmy Tran), District 2 (Justin Caraway) and District 4 (Christina Segoviano).

Please join us in the Work Session room at 6:00 PM at City Hall if you are able. If you cannot, please watch online here and click the Watch Live link.

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Before I begin the Work Session notes, I do want to highlight two items from the Regular Agenda on tomorrow’s meeting.

Item 8 is a development agreement with H-E-B (!!!) to bring a store to the corner of Christ Road and President George Bush Turnpike. Our agreement will provide a tax rebate of 50% for 10 years on real estate, Business Personal Property (BPP) and sales tax; a development fee rebate of up to $1.2 million and a cash grant of $2.5 million for other costs. In return HEB will invest a minimum of $17 million into the site with the goal of obtaining a Certificate of Occupancy before December 31, 2030.

I believe this is great deal for the city as H-E-B’s investment will likely spur additional sales tax revenue from visitors to Firewheel Mall and a rise in adjacent property values.

Item 9 is a second development agreement with H-E-B to bring a Joe V’s Smart Shop grocery store to the corner of W. Centerville Road and Broadmoor Drive. This agreement is similarly structured with a 50% 10-year tax rebate of real estate and sales tax and a cash grant of $1.5 million for facade improvements, infrastructure upgrades and demolition costs. In return HEB will invest a minimum of $7 million into the existing site.

Again, I believe this is a good deal for the city to revitalize an underperforming shopping center. After the Kroger closed in 2006, multiple attempts to fill the space have failed even with an exterior remodel in 2010. H-E-B’s investment will likely bring new tenants to the adjacent spaces and a new pad side development along Centerville.

I can’t wait to see these project start construction.

As always, my commentary is in bold italics. Thank you for reading and please provide any feedback in the comments below or at mayor@garlandtx.gov.

PUBLIC COMMENTS ON WORK SESSION ITEMS

CONSIDER THE CONSENT AGENDA

WRITTEN BRIEFINGS

Council may ask for discussion, further information, or give direction to staff on an item posted as a written briefing.

1. ChildCareGroup Lease Agreement Extension

Council is requested to consider renewing a multi-year lease agreement negotiated with ChildCareGroup for the City-owned property located at 625 E. Avenue B for an additional three (3) year term. Unless otherwise directed by Council, this item will be scheduled for formal consideration at the May 19, 2026 Regular Meeting.

For nearly 70 years, the non-profit childcare provider ChildCareGroup (CGC) has operated at this city-owned location serving low-income Garland families. The current 5-year lease expired May 1 and CGC is requesting to renew the lease for a three-year period. The rent is $1.00 per year, but CGC is required to perform all maintenance and utilize COG utilities. Either party may terminate the agreement with a 180-day written notice.

(Google Streetview of the subject property)

While the $1 per year rent is a bargain I would like to have on any lease that I signed, this is consistent with agreements we have had with other non-profit organizations. The shorter three year timeline allows the City to evaluate future redevelopment plans for this plot of land adjacent to Lou Huff Park.

2. Brand Road (S.H. 190 to Muirfield) Project - Eminent Domain Submission

Council is requested to consider authorizing the use of eminent domain to acquire the necessary property interests for the Brand Road (S.H. 190 to Muirfield) Project. Unless otherwise directed by Council, this item will be scheduled for formal consideration at the May 19, 2026 Regular Meeting.

As we have authorized in the past, Council will consider using its power of eminent domain to acquire clips and strips” from Block 1, Lot 1 of the 190/Brand Addition property located on the northwest side of Brand Road.

The four parcels are:

• 0.083 acres for right-of-way dedication

• 0.021 acres for a pedestrian access and utility easement

• 0.118 acres for a grading, slope and access easement

• 0.009 acres for a drainage easement

As we have authorized for public benefit projects in the past during my time on council (examples here, here, and here), the power will only be used if our good-faith negotiations fail. We must follow the state-regulated process of sending a formal offer, obtaining an appraisal, and sending a final offer all while negotiations with the landowner may continue.

VERBAL BRIEFINGS

Council may ask for discussion, further information, or give direction to staff on an item posted as a verbal briefing.

3. Introduction of Mandy Harrell, Customer Service Director

Council will be introduced to Mandy Harrell, the City’s new Director of Customer Service.

Presenter: Phillip Urrutia, Assistant City Manager

After 18 years at the City of Garland, Customer Service Director Kevin Slay retired earlier this year. To take over his role, Mandy Harrell has been promoted to Director. Mandy, a graduate of Garland High School, begin her career with Garland in 1994 as a cashier before promoting to Payment Center Supervisor in 2019 and Utility Operations Administrator in 2023. Mandy was also a member of Leadership Garland Class 45 along with new councilmembers Jimmy Tran and Christian Segoviano.

I am happy that we are rewarding a great, dedicated, and long-time member of Team Garland with this worthy promotion.

4. Garland Youth Council End-of-Year Recap

GYC Members and staff liaisons will provide an overview of learning and service activities that occurred over 2025-26, as well as provide an update on recruitment for 2026-27.

Presenter: Tiffany Veno, Chief Communications Officer, Rhonda McTyre, Recreation Services Supervisor

At the end of the school year, many of our 34 Garland Youth Council (GYC) members come to City Council to provide an update on their activities over the past year. The GYC’s mission has a dual mandate—to educate Garland’s youth about city business and to be a voice for Garland’s youth.

To that end this past year the GYC held 11 meetings and four socials. I was honored to speak at one of their meetings about the role of the mayor and city council. The GYC also contributed more than 650 volunteer hours at various city events and donated more than 15 bags of clothing to Trusted World.

If you or someone you know would like to apply for the Garland Youth Council, please apply at GarlandYouthCouncil.org. Applications are open until May 31.

5. Interview for Appointment to the North Texas Municipal Water District Board

Information was posted on the City’s website in order to provide the opportunity for citizens to apply for the North Texas Municipal Water District Board position. At the close of the notice period on May 8, 2026, 13 qualified applicants responded. Council is scheduled to formally appoint a representative to the North Texas Municipal Water District Board at the May 19, 2026 Regular Meeting.

During our application period, 13 candidates expressed interest in serving on the North Texas Municipal Water District Board. We will conduct interviews of the candidates and vote to appoint a member at the Regular Meeting Tuesday.

6. 2026-2027 CDBG, HOME and ESG Federal Grant Allocations

Staff will present an overview of the proposed allocation of Community Development Block Grant (CDBG), HOME Infill Partnership Program (HOME), and Emergency Solutions Grant (ESG) funds for Program Year 2026-2027.

Presenter: Jason Wilhite, Construction Manager

With this item, we will continue discussions of our CDGB funding allocations. Council has been given worksheets to determine funding as the requests have outpaced the dollars available.

The City has also requested funding for a housing repair program, code enforcement officers, the Freeman Heights neighborhood revitalization program, and an outdoor library learning program.

7. South Garland Library - Curiosity Garden Mid-Year Budget Amendment Request

South Garland Library requests a mid-year budget amendment to provide additional funding for the Curiosity Garden Project, including parking lot enhancements and place making improvements aimed at enhancing the library’s outdoor space and overall community experience. Unless otherwise directed by Council, this item will be scheduled for formal consideration at the June 16, 2026 Regular Meeting.

Presenter: Jason Wilhite, Construction Manager

With exterior improvements already made at Central Library, North Garland Library, and a new West Garland Branch, South Garland Library will get a significant upgrade with a Curiosity Garden. This will transform a large portion of the parking lot into an outdoor learning space with a children’s play area, covered stage, food-truck parking area, seating and lighting upgrades. During our 2019 Library Master Plan, outdoor space was the number one requested improvement at our libraries.

An aerial rendering of the proposed project.

(An street-level view of the project.)

We want this project to contribute to our Broadway/Oates Economic Focus Area by improving the visual appeal of the corridor. The project is estimated to cost $1.42 million with funding coming from CDBG funds, the Neighborhood Stabilization Program, and other sources.

I am happy that this project will bring attention to South Garland with a large investment in placemaking. Hopefully this will serve as a catalyst for future investment in the area.

8. Grow Garland Bond Proposition C: Granville Arts Center Renovation Update

Staff will present an update on the Granville Arts Center Renovation — Proposition C of the Grow Garland 2025 Bond Program, including preliminary designs from Williams Tharp Architects and Semple Brown Architects and Designers.

Presenter: Amy Rosenthal, Cultural Arts Director, Michael Buchler, Capital Project

Management Director

Consultants Williams Tharp and Semple Brown will present preliminary renovation concepts for the Granville Arts Center. In May 2025, Garland voters approved $25 million through Proposition C to renovate the 43-year-old facility, which welcomes more than 75,000 visitors each year.

While I have not yet seen the proposed renderings, I am confident the design team will bring thoughtful and innovative ideas to enhance the space. Planned improvements include ADA-accessible seating, backstage enhancements, upgraded building systems, and improved concessions areas.

I hope the revisions will further the goal of integrating the Center into the fabric of downtown Garland. The original 1980 architect’s design document below even expressed that vision; and hopefully, this renovation will bring us closer to that long-standing goal.

9. Potential GDC Amendment for Parking Deviation Process in the Garland Development Code Staff will provide an overview on a potential GDC amendment to update the parking deviation process.

Presenter: Nabila Nur, Planning & Development Director

Staff has identified our parking variance process as overly complex and has requested that we simplify the current rules. Currently, parking is allowed to exceed minimum requirements by a percentage that scales with structure size, mainly affecting multi-family and non-residential uses.

The new rule will allow a nonresidential site to have a +15% variance to be allowed by right, a +15-40% variance via an Alternative Compliance Request, and +40% variance by a Planned Development. Multifamily sites will allow one parking space for efficiency units, 1.5 spaces for one bedrooms units, and two for 2+ bedroom units which is more restrictive than current requirements.

Overall, this will shift policy to less surface parking required overall and promote more compact developments. As Garland is 97% built-out, we can only grow by increasing density of future developments.

10. Administrative Services Committee Report

Staff will provide a report on the annual review and discussion of tax exemptions, including senior and homestead exemptions. This item was discussed at the April 23, 2026 Administrative Services Committee Meeting.

Presenter: Allyson Bell Steadman, Chief Financial Officer

ANNOUNCE FUTURE AGENDA ITEMS

A Councilmember, with a second by another member or the Mayor alone, may ask that an item be placed on a future agenda of the City Council or of a committee of the City Council. No substantive discussion of that item will take place at this time.

ADJOURN

With our Youth Council visiting us this evening, here is Glass Animals with their song “Youth.” I first became aware of Glass Animals when I received their album “How to Be a Human Being” as part of my vinyl of the month club subscription. It is still a great album I go back to frequently. Enjoy!

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We are tallying up the total weight of all the trash removed and will post that number to our social media accounts as soon as we have it. A group I was with pulled out four shopping carts by themselves!

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In tonight’s Work Session, we will be discussing the IH 635 project (which should be wrapping up soon), parking restrictions at several areas around town, and the distribution of federal grant funding to several worthy non-profit organizations through our CDBG, HOME and ESG programs.

As always, my comments are in bold italics. Please send any questions or comments to me at mayor@garlandtx.gov.

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PUBLIC COMMENTS ON WORK SESSION ITEMS

CONSIDER THE CONSENT AGENDA

WRITTEN BRIEFINGS

1. Head Start of Greater Dallas Lease Agreement Extension

Council is requested to consider renewing a multi-year lease agreement negotiated with Head Start of Greater Dallas for the City-owned property located at 3709 W. Walnut Street for an additional three (3) year term. Unless otherwise directed by Council, this item will be scheduled for formal consideration at the May 5, 2026 Regular Meeting.

Head Start of Greater Dallas, a nonprofit childcare provider, has leased City-owned property at 3709 W. Walnut Street since 1998. Their current lease (started May 1, 2021) runs five years at $3,397/month, and they are requesting a three-year extension.

Approving the extension would keep the childcare center operating for low-income families while giving the City more time to determine the property’s long-term use. The rent the City receives is currently higher than what it would collect in property taxes if the site were privately owned.

The Head Start of Greater Dallas leased property at 3709 W. Walnut Street.

2. Parking Restrictions in Downtown Garland

Council is requested to consider implementing parking restrictions in the alley between Sixth and Seventh Streets and establishing 3-hour time limits for visitor parking at the Ron Jones Municipal Building to improve traffic flow and public access. Unless otherwise directed by Council, this item will be scheduled for formal consideration at the May 19, 2026 Regular Meeting.

City staff identified two parking issues downtown: vehicles blocking the alley north of Main Street between Sixth and Seventh Streets, and visitor parking at the Ron Jones Municipal Building being used all day by nearby business employees. The alley’s width and a bank drive-through contribute to frequent blockages, and no current restrictions exist.

Council is asked to consider adding parking restrictions in the alley and implementing a 3-hour time limit for designated visitor spaces to improve traffic flow, access, and enforceability.

3. Investment Portfolio Report

The March 31, 2026 Quarterly Investment Portfolio Summary will be presented to Council for review. The report complies with the requirements of the Public Funds Investment Act, and the City’s investment portfolio continues to be managed in accordance with the Council Financial Policy, Investment Policy, and Statement of Investment Strategy.

In this quarterly update to Council, the 3D pie charts have returned once again. As of March 31, 2026, the City of Garland maintains $1.023 billion across all portfolios to provide funds to operate the city.

4. Amendments to the Fireworks Prohibited Ordinance

Council is requested to consider amendments to Chapter 26, Article 1 of the Code of Ordinances of the City of Garland, related to the enforcement against property owners, residents, or persons in control of property where unlawful fireworks use and/or discharge of firearms occurs. Unless otherwise directed by Council, this item will be scheduled for formal consideration at the May 5, 2026 Regular Meeting.

In a continuing effort to combat illegal gunshots and firework usage, Council is considering amending the City’s Code of Ordinances to hold property owners, tenants, or others in control of a property accountable when illegal fireworks use or firearm discharge occurs , even if they are not directly observed committing the act.

Currently, enforcement is limited to individuals caught in the act. The proposed changes would make it an offense to allow or permit such activity on a property.

5. Bottleneck Improvements Package No. 4: Right-of-Way and Easement Acquisitions Update

Council is requested to consider a planned right-of-way (ROW) and easement acquisitions for Bottleneck Improvements Package No. 4, supporting roadway improvements along First Street from Avenue E to SH-78. The project addresses increasing traffic volumes in the corridor where First Street, SH-78, and SH-66 converge. Unless otherwise directed by Council, staff is prepared to begin acquisition efforts as outlined in this briefing.

With this item, Council will authorize right-of-way and easement acquisitions for Bottleneck Improvements Package No. 4, which supports roadway improvements along First Street from Avenue E to SH-78. This area is one of our most heavily traveled roadways by traffic count and is always backed up during rush hour.

The project, funded by the 2019 Bond Program, aims to address increasing traffic congestion at a key corridor where First Street, SH-78, and SH-66 converge. Planned improvements include adding one lane in each direction, requiring property acquisition.

Staff will prioritize acquiring the land needed for the current project, while also seeking additional property where possible to accommodate future expansion. If necessary acquisitions cannot be secured, staff will return to Council with further recommendations which may include the future use of eminent domain to acquire the necessary property.

6. TxDMV Motor Vehicle Crimes Prevention Authority Catalytic Converter Grant Program Application FY27

Council is requested to consider a resolution authorizing the Chief of Police to submit a grant application to the Motor Vehicle Crime Prevention Authority for the SB224 Catalytic Converter Grant Program for FY27. Unless otherwise directed by Council, this item will be scheduled for formal consideration at the May 5, 2026 Regular Meeting.

With this item, we will authorize the Chief of Police to apply for a FY27 grant from the Motor Vehicle Crime Prevention Authority for the SB224 Catalytic Converter Grant Program. The grant would provide funding to support law enforcement efforts to combat catalytic converter theft and other vehicle-related crimes. I am always happy when receive State funding to supplement our public safety operations.

7. GDC Amendment ORD 26-02

Council is requested to consider amendments to several sections within Chapter 1 General Provisions, Chapter 3 Subdivision Regulations, and Chapter 5 Relief Procedures and Enforcement, generally related to Alley Waivers, Sidewalk Waivers, and Working Plats.

This item proposes updates to development regulations related to sidewalk waivers, alley waivers, appeals, and plat review procedures.

Key changes include:

• Allowing the Director of Engineering to approve sidewalk waivers and exempt certain infill or redevelopment residential lots from sidewalk requirements in subdivisions that lack sidewalks.

• Requiring an evaluation to determine if a sidewalk is planned within five years; if so, applicants must pay a fee in lieu of construction, otherwise no fee is required.

• Revising the appeals process so the Plan Commission serves as the appellate body for sidewalk and alley waiver decisions.

• Clarifying that submitting a “Working Plat” is strongly recommended—but not required—while noting that skipping it increases the risk of denial due to limited review timelines.

Overall, the amendments aim to add flexibility, improve clarity, and streamline review and appeal processes.

VERBAL BRIEFINGS

Council may ask for discussion, further information, or give direction to staff on an item posted as a verbal briefing.

8. IH 635 Construction Update

At the request of Mayor Pro Tem Lucht, Ceason Clemens, TxDOT Dallas District Engineer, will provide a presentation to Council regarding the status of construction of IH 635.

Presenter: Ceason Clemons, P.E., TxDOT Dallas Engineer

TxDOT Dallas District Engineer Ceason Clemons will return to provide Council with an update on the construction of IH 635. When she was last here in June 2025, she stated that the estimated completion for the general purpose lanes was the end of 2025/early 2026 with managed lanes and city streets complete by spring 2026. We are all anxious to see when construction will finally be complete on this monumental project.

The latest aerial photograph of IH 635 at Shiloh Road looking west.

The latest aerial photograph of IH 635 at Garland Avenue looking east.

9. New Voting Software

Council is requested to consider a new voting software upgrade and receive a demonstration from City staff.

Presenter: Jonathan Morgan, IT Operations Director, Jennifer Stubbs, City Secretary

The City Council has been voting on motions using iPads with software that has been prone to technical difficulties during council meetings. This new system will have voting functionality directly integrated into the touch pads already installed in the dais.

10. 2026-2027 Federal Grant Allocation Kickoff

Staff will present to Council details concerning the distribution of Community Development Block Grant (CDBG) funding, HOME Infill Partnership Grant (HOME) funding, and Emergency Solutions Grant (ESG) funding for the program year 2026-2027.

Presenter: Jason Wilhite, Construction Manager

Staff will brief the Council on how Garland plans to allocate approximately $2.61 million of federal housing and community development funds for FY 2026–2027. The grants are divided among three categories.

The Community Development Block Grant (CDBG) program, authorized by the Housing and Community Development Act of 1974, provides annual formula grants to states and local governments to support infrastructure, community facilities, housing rehabilitation, and public services.

The HOME Investment Partnerships Program provides federal grants to state and local governments to create affordable housing for low-income households. Funds can be used for the acquisition or improvement of property, rehabilitation of affordable housing, and demolition of, or new construction for, low-income rental or homeownership.

The Emergency Solutions Grant (ESG) is a federal HUD-funded program designed to assist homeless individuals and families or those at risk of homelessness. It funds street outreach, emergency shelter, rapid re-housing, and homelessness prevention to help recipients regain stability in permanent housing.

• Total funding:

  • CDBG: $2.61M (includes $517K one-time program income)

  • HOME: $645K

  • ESG: $174K

• CDBG allocation:

  • $313K for public services (meets HUD’s 15% cap)

  • $1.88M for City projects

  • $418K for administration (within 20% HUD limit)

• HOME allocation:

  • $645K for infill housing development

  • $96.8K reserved for CHDO projects (15% requirement)

  • $64.5K for administration (10% cap)

• Emergency Solutions Grant (ESG) allocation:

  • $13K for administration

  • Remaining funds for homelessness services (shelter operations, outreach, rapid rehousing)

11. Development Services Committee Report GDC Amendment ORD 26-03

Staff will brief Council on proposed amendments to § 2.59 of the Garland Development Code related to residential carports, canopies, and porte cochere. At the request of the Development Services Committee, staff evaluated existing standards and developed recommendations to enhance neighborhood aesthetics, including guidance on placement, architectural compatibility, and visibility from the street. Staff has incorporated feedback from the Committee and will present the proposed updates for Council consideration.

Presenter: Nabila Nur, Planning & Development Director

The Development Services Committee has recently reviewed our regulations related to carports and has suggested some amendments to our ordinances. Carports must cover a paved surface and be maintained. The regulations will not apply to carports not visible from a street, which are typically in a rear yard.

Going forward, carports would only be allowed on lots constructed after May 19, 2015, which coincides with the adoption of our Garland Development Code. After that date, residences were required to be constructed with two car garages.

12. Transportation Infrastructure and Mobility Committee Meeting Report

Councilmember Thomas Jr., Chair of the Transportation Infrastructure and Mobility Committee, and Staff, will brief Council on parking restrictions on Wood Drive and Marquis Drive. Unless otherwise directed by Council, this item will be scheduled for formal consideration at the May 19, 2026 Regular Meeting.

Presenter: Councilmember Joe Thomas, Jr., Chair

The Transportation, Infrastructure and Mobility Committee is recommending adding additional parking restrictions on Wood Drive and Marquis Drive to prevent 18-wheeler parking along the public right-of-way. Before implementing the restrictions, staff conducted a survey of businesses along both streets with none in opposition to the restrictions.

ANNOUNCE FUTURE AGENDA ITEMS

A Councilmember, with a second by another member or the Mayor alone, may ask that an item be placed on a future agenda of the City Council or of a committee of the City Council. No substantive discussion of that item will take place at this time.

ADJOURN

Talking about the HOME Investment Partnerships Program, here’s Sam Cooke with his 1962 hit “Bring It On Home To Me.”

Saturday night I also had the privilege to play a role in Good Samaritan’s Murder Mystery dinner theater fundraiser. Thank you to the great cast and all audience members who came out in support of such a great cause.

(Photo credit to Tony Long Photography.)

Now on to the Work Session comments. As always, my comments are in bold italics.

PUBLIC COMMENTS ON WORK SESSION ITEMS

CONSIDER THE CONSENT AGENDA

WRITTEN BRIEFINGS

1. TxDOT Click It or Ticket Grant 2026

Council is requested to consider approval of the FY 2026 TxDOT Selective Traffic Enforcement Program (STEP) Click It or Ticket (CIOT) Grant. Unless otherwise directed by Council, this item will be scheduled for formal consideration at the April 21, 2026 Regular Meeting.

2. TxDOT Operation Slowdown Grant 2026

Council is requested to consider approval of the FY 2026 TxDOT Operation Slowdown Grant.

Unless otherwise directed by Council, this item will be scheduled for formal consideration at the April 21, 2026 Regular Meeting.

I’ll take these two items together. TxDOT offers grants for two programs to enforce seatbelt laws and traffic safety laws. The grant for the Click-it or Ticket and the Operation Slowdown Grants are for $6,350.49 each, almost identical to the $6,312.12 we received last year. Anytime we can get State money to fund our operations with only a few strings attached, we will gladly take it.

3. Interlocal Agreement for the Internet Crimes Against Children (ICAC) Grant

Council is requested to consider approval of the FY 2026 Interlocal Agreement for the Internet Crimes Against Children (ICAC) Grant. Unless otherwise directed by Council, this item will be scheduled for formal consideration at the April 21, 2026 Regular Meeting.

This item requests City Council approval for the City Manager to enter into an interlocal agreement with the City of Dallas to continue Garland’s participation in the North Texas Internet Crimes Against Children (ICAC) Task Force. Garland Police has been an active member of this multi-agency effort for over a decade, with two detectives assigned to investigate and combat internet crimes against children.

Through a Department of Justice grant administered by the Dallas Police Department, Garland is eligible for reimbursement of expenses related to ICAC operations and has been awarded up to $14,000 for the current grant period (October 1, 2025, through September 30, 2026), with the potential for additional funding if available.

4. Pending Items List - City Council Committees and Future Work Sessions

An informational update with a dated list of items referred to Council Committees by two Councilmembers. These items are currently under committee-level discussion and remain pending.

No Council action is requested at this time; items will return to the full Council with a report from the Committee Chair upon completion of committee review. This item also includes a list of future Work Session items that have been referred by Council. These items may not yet be scheduled, but remain in the queue for placement on future agendas.

Garland City Council committees are juggling a wide range of policy, infrastructure, and community-focused issues—many of which are still in progress or awaiting direction. Here’s a breakdown of what’s currently on the table across committees.

🧾 Administrative Services

• Reviewing a proposed city ordinance related to backyard chickens (currently on hold).

• Conducting the annual review of homestead and senior tax exemptions.

📊 Audit Committee

• Ongoing oversight of municipal wastewater treatment agreements, including updates on management action plans.

• Follow-up on the fire department controlled substance audit and related corrective actions.

🌳 Community Services

• Discussion around Lake Ray Hubbard and related community impacts.

• Reviewing city-wide third-party mailers and their distribution.

• Evaluating special events, including attendance and cost efficiency.

🏗️ Development Services

• Continued review of the carport ordinance.

• Clarifying regulations for vape shops vs. smoke shops.

• Updates to Chapter 32.50 of the Garland Development Code.

🏛️ Legislative & Public Affairs

• No pending items at this time.

🚔 Public Safety

• Exploring a potential “quiet zone” ordinance targeting loud vehicles in downtown Garland.

🚧 Transportation, Mobility & Infrastructure

• Evaluating parking rules in industrial zones, especially near curves.

• Reviewing railroad crossing conditions and potential improvements.

• Updates and implementation work on:

  • Alley Participation Program

  • Drainage ordinance review

🗂️ Future Work Session Items

A broader set of issues still in the pipeline includes:

• Pet limits per household (on hold)

• Employee translation service compensation programs

• Updates to the sign ordinance and residential improvement programs

• Trails and bikeways master plan progress

• Fireworks enforcement review (with ordinance updates in progress)

• Reviews of the Wi Scape program and skate park hours enforcement

• Exploration of a “Volunteer Garland” foundation

VERBAL BRIEFINGS

Council may ask for discussion, further information, or give direction to staff on an item posted as a verbal Briefing.

5. Civil Enforcement Education Program

Council is requested to consider a presentation regarding the Civil Enforcement Education Program, including an overview of public messaging efforts and proposed door hanger flyer content.

Presenter: Andy Hesser, Assistant City Manager

In our continued efforts to educate citizens about our Civil Citation Code Enforcement program, staff will present a brochure that will be placed on resident’s doors during our 90-day code enforcement education period starting June 1. The tri-fold brochure provides general information about the program including deficiencies identified on the property by the code compliance officer, how to address the issues, and how to apply for our Garland Cares program to get assistance if needed.

The front page of the handout provides general information about the program, and a website and phone number to call with any questions.

The folded inside panel explains more about why this notice was received, the goal of the program and what happens next in the process.

The inside left panel explains why we are implementing this program, what changes for our residents, and the objectives of the program–a better quality of life for our residents, a fairer enforcement process, and more support for residents who need help.

The inside middle panel provides a checklist of common violations observed by the enforcement officer as well the date and time the violation was observed.

The inside right panel reiterates what the next steps are and provides phone, email and a website to contact Code Compliance with any questions.

Finally, the back panel provides information on how to apply to our Garland Cares Compliance Assistance Program. We will be organizing volunteer resources to assist those who are experiencing economic or physical hardships and cannot bring their property into compliance.

In addition to these brochures, we will be posting on social media, publishing in the Garland Press, and speaking about this program at councilmembers townhalls education residents about this new program. We truly want to be partners with residents in improving our city through our Garland Cares program.

We are currently assembling our volunteer network and purchasing three work trailers full of tools—modeled after our neighborhood vitality block party trailers—to equip our volunteers. Stay tuned for more about this program in the future.

6. Updates on the City-Trails Master Plan

Staff will provide an update to Council on the implementation of the Trails Master Plan and progress achieved since its adoption.

Presenter: DLee Williams, Managing Director- Parks and Recreation, Mark Ellender, Parks Planning Administrator

Staff will provide us an update on the implementation of the Trails Master Plan. The master plan proposed a Garland trail network of 59 miles, and since the plan was adopted, 15.8 miles have been added to the network. The image below shows the network of existing and proposed trails.

Below are examples of trails that have been completed.

A feasibility study is currently underway for a connection to the Richardson Duck Creek Trail through the Duck Creek Golf Course, and a connection between Rick Oden Park and Central Park along Duck Creek Drive is currently in design.

7. Consider a Payment in Lieu of Taxes (PILOT) Agreement between the City of Garland and the Developer Group Financing the Reserve at Shiloh Multifamily Project

Council is requested to consider a resolution authorizing the City Manager to execute a Payment in Lieu of Taxes (PILOT) Agreement with the Developer of the Reserve at Shiloh in partnership with the Garland Housing Finance Corporation (GHFC), to support the development of a workforce housing project located at 1102 North Shiloh in Garland Texas. Unless otherwise directed by Council, this item will be scheduled for formal consideration at the April 21, 2026 Regular Meeting.

Presenter: Matthew Watson, Assistant City Manager

So how do we as a City Council incentivize affordable housing through tax breaks without losing revenue we would have otherwise gained in taxes? The answer is something called a Payment in Lieu of Taxes—or PILOT.

With this item, Council will consider an agreement through the Garland Housing Finance Corporation (GHFC)—a public nonprofit—that qualifies for a property tax exemption under Texas law. GHFC will own a membership interest in the project as a managing member, and the land deed will be transferred to GHFC. GHFC will provide below market-rate housing units for moderate-income households. In return, the project will pay no property taxes.

Normally, GHFC projects would pay no property taxes back to the City–the price we pay for incentivizing affordable housing as without incentives, these affordable housing projects often don’t pencil out financially. However with full tax exemptions, cities lose revenue to pay for items like public safety, road repairs and public utilities. With a PILOT, it splits the difference—making the project viable while keeping some money flowing to the City. For this project, GHFC would pay Garland at least $120,000 per year, with payments increasing by 3.5% annually—an amount designed to approximate what the City would otherwise collect in property taxes.

ANNOUNCE FUTURE AGENDA ITEMS

ADJOURN

With the PILOT program being discussed, here’s Twenty One Pilots with their hit “Stressed Out.” (3.2 billion plays on YouTube and 3.0 billion plays on Spotify. Unbelievable!)

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As always, my comments are in bold italics. Feel free to send me any comments or questions you have in the comment section below or by email at mayor@garlandtx.gov. Also, if you think someone else may benefit from reading this Substack, please share it with them using the button below.

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CONSIDER THE CONSENT AGENDA

WRITTEN BRIEFINGS

1. Youth Programs Standards of Care to Meet the Requirements of Texas Human Resources Code 42.041.

Council is requested to consider an ordinance for the Youth Programs Standards of Care to meet the requirements of Texas Human Resources Code 42.041. Unless otherwise directed by Council, this item will be scheduled for formal consideration at the April 21, 2026 Regular Meeting.

Garland City Council is considering an ordinance to reaffirm its Youth Program Standards of Care, a necessary step to keep city-run recreation programs exempt from state childcare licensing requirements. While the standards themselves remain unchanged from 2025, their adoption ensures compliance with Texas law and allows programs like summer camps and after-school activities to continue operating. The standards outline everything from staff qualifications and background checks to safety protocols, supervision ratios, and parental notifications that these programs are not licensed daycare facilities. In short, this is a routine but essential item that keeps youth programming running smoothly and legally.

2. Senior Citizens Advisory Commission Bylaw Change

Council is requested to consider approving changes to the Senior Citizens Advisory Commission bylaws. Unless otherwise directed by Council, this item will be scheduled for formal consideration at the May 5, 2026 Regular Meeting.

Council is also reviewing proposed updates to the bylaws governing the Senior Citizens Advisory Commission, aimed at better aligning the document with how the group actually functions today. The revisions clarify roles, term limits, meeting procedures, and expectations for attendance, while reinforcing the commission’s purpose as an advisory body representing senior issues to the City Council. Though largely administrative, the changes are intended to improve transparency, structure, and effectiveness as the commission continues its work advocating for Garland’s senior population.

3. Substantial Damages Assessment Services Contract

Council is requested to consider a professional services contract with Freese and Nichols, Inc. for Substantial Damages Assessment Services. Unless otherwise directed by Council, this item will be scheduled for formal consideration at the April 21, 2026 Regular Meeting.

With this item, the City Council is weighing a pre-positioned “on-call” contract with engineering firm Freese and Nichols to handle post-flood damage assessments—an often overlooked but critical requirement tied to the city’s participation in FEMA’s National Flood Insurance Program. After major flood events, the city is responsible for determining whether damaged structures exceed the 50% threshold that triggers costly compliance requirements or rebuilding restrictions.

With more than 500 flood-prone properties and limited in-house capacity, Garland is effectively outsourcing surge response: the firm can mobilize trained inspection teams within days, document damage, and help ensure FEMA compliance (and reimbursement eligibility). The contract, capped at $500,000 and structured for up to five years, functions like disaster insurance—not something the city hopes to use often, but essential when it does.

4. 2026 Homeland Security Grant Program Application Resolution

Council is requested to consider a resolution authorizing the FY2026 Homeland Security Grant Program (HSGP) Urban Area Security Initiative (UASI) application. Unless otherwise directed by Council, this item will be scheduled for formal consideration at the April 7, 2026 Regular Meeting.

Garland City Council is being asked to approve a required resolution to apply for federal Homeland Security grant funding—a procedural step that unlocks access to dollars aimed at strengthening local emergency preparedness. The funding, administered through FEMA’s Homeland Security Grant Program and its Urban Area Security Initiative, would support a slate of public safety upgrades, including replacing aging ballistic vests for firefighters, installing an emergency loudspeaker system in the Downtown Square, and purchasing specialized equipment like hazardous materials detectors and radiation dosimeters.

While largely administrative, the resolution reflects how federal preparedness funding continues to flow down to cities for both terrorism-related risks and broader emergency response capabilities, with strings attached—such as dedicating a significant portion of funds to law enforcement prevention activities.

5. Acquisition of Real Property Located at 3014 S. Shiloh Road

Authorize the City Manager to execute a Contract for Sale and Leaseback for the acquisition of 3014 S. Shiloh Road for the Shiloh Road Improvement Project and all documents necessary and incidental to the contemplated transaction. Unless otherwise directed by Council, this item will be scheduled for formal consideration at the April 7, 2026 Regular Meeting.

As part of the Shiloh Road expansion project, the City of Garland will acquire the property at 3014 S. Shiloh Road for $500,000 and lease it back to the current owner for 90 days to allow him time to vacate the property. With the right-of-way taking, the front parking lot did not have sufficient room to allow for parking which left the building without adequate parking and therefore unusable.

(The subject property is highlighted in blue above.)

VERBAL BRIEFINGS

Council may ask for discussion, further information, or give direction to staff on an item posted as a verbal briefing.

6. Holford Aquatic Center Season Pass Proposal

Staff will present a proposal for the addition of season passes at Holford Aquatic Center, including research and benchmarking of aquatic facility pass options from surrounding cities. Based on this analysis, staff recommends introducing both a 5-day and 7-day season passes. Unless otherwise directed by Council, this item will be scheduled for formal consideration at the April 21, 2026 Regular Meeting.

Presenter: Albert Montero, Recreation Services Director, DLee Williams, Managing Director- Parks and Recreation

With swim season coming up soon, the Parks & Recreation department is proposing to sell weekday and 7-day season swim passes for Garland residents at Holford Pool. The current daily price for residents is $6 for ages 2 to 12 and $8 for ages 13 and up. The season passes will be a substantial savings for a teenager who uses the pool seven times or more this summer.

I would expect that we may see a similar season pass for Surf & Swim when it opens this summer as well.

7. DART Interlocal Agreement

Council is requested to consider an Interlocal Agreement between the City of Garland and DART for General Mobility Program Funds. Unless otherwise directed by Council, this item is scheduled for formal consideration at the April 7, 2026 Regular Meeting.

Presenter: Mike Betz, City Manager, Matt Watson, Assistant City Manager, Scott Levine, First Assistant City Attorney

DART has presented an interlocal agreement to all member cities as the results of negotiations to keep those cities within the DART system. DART set up a General Mobility Program that would provide funds to member cities to use for projects that would “provide a benefit to DART’s Public Transportation System.” To receive these funds, the member city would have to agree to continue to participate in DART and refrain from approaching the State Legislature to amend DART’s enabling legislation.

Each city would present a list of proposed projects to DART by June 30 of each year and DART would approve the projects to be funded.

Over the length of the six-year agreement, Garland would receive an estimated $24.2 million.

This truly is the best case scenario for Garland as it relates to the future of DART. If this agreement had not occurred and Plano or Irving were successful with their pull-out elections, DART may have become insolvent and Garland may have been left holding the bag for the large debt obligations that remain on DART’s books. With the agreement, DART can continue to function as it restructures its operations and debt payments over the next six years to the satisfaction of its member cities.

8. Code Compliance Civil Citation Program

Council is requested to consider approval of implementing a Civil Citation Program. This program would help to expedite enforcement and reduce compliance timelines within the City. Council considered this item at the February 16, 2026, March 2, 2026, and April 6, 2026 Work Session Meetings. Unless otherwise directed by Council, this item will be scheduled for formal consideration at the April 21, 2026 Regular Meeting.

Presenter: Brian Morris, Director of Code Compliance

We will again discuss the details of implementing a Civil Citation Program for Code Compliance. As our soon to be released housing study will show, our Code Compliance Department is responsible for setting a baseline standard for the look of residences and businesses in Garland. If we wish to attract better retailers and housing options to Garland, we must have stronger Code Enforcement.

With this civil citation program, we want to achieve compliance first before a punitive fine is enforced. To that end, we will have a 90-day “Red Tag” period before electronic records or fines begin. This will be backed by a big awareness campaign to educate residents and business owners during this period. We will also support citizens who don’t have the physical or financial means to comply through our Compliance Assistance Program (CAP). Entering this program will pause the enforcement clock while assistance through Volunteer Garland or other organizations is mobilized to address the compliance issues.

We are also proposing that after receiving a violation notice, the fine may be reduced to the $4 administrative cost of issuing the ticket if the resident or business sends photo proof that the issue has been resolved.

I believe this strategy balances the need to enforce our code standards with compassion for our residents and businesses to comply. After all, compliance is the goal of Code Compliance. It is in the name after all!

9. Amendment to the Trilogy - BRD Acquisitions, LLC Development Agreement (Mission Hills)

Council is requested to authorize the City Manager to negotiate and execute an amendment to the Economic Development Incentive Agreement Between the City of Garland and Trilogy - BRD Acquisitions, LLC, (Mission Hills). Unless otherwise directed by Council, this item will be scheduled for formal consideration at the April 21, 2026 Regular Meeting.

Presenter: Michael Betz, City Manager, Andy Hesser, Assistant City Manager

With this item, we will amend the development agreement between the City of Garland and Trilogy to address the hill that has been constructed north of Bluffview Drive. With the revised agreement, Trilogy will revise their site layout and move some houses that are directly adjacent to Bluffview Drive to another part of the development to allow for a less steep slope that will hopefully lessen the visual impact to those existing houses.

With a previously approved development plan and permits, Trilogy was under no obligation to accommodate the City’s request to move the homes. I am thankful for their willingness to modify their plans as a gesture of goodwill.

10. Texas Police Chiefs Association (TPCA) Annual Conference

Per Article II, Division 1, Section 6(E) of the Council policies, Mayor Pro Tem Margaret Lucht will report back to Council on the Texas Police Chiefs Association (TPCA) Annual Conference.

Presenter: Margaret Lucht, Mayor Pro Tem

Mayor Pro Tem Lucht will report on her attendance at the Texas Police Chiefs Association Annual Conference in Corpus Christi last week. She was a panelist on a breakout session called The Triangle That Works speaking about the relationship between Police Chiefs, City Council and City Managers.

11. Audit Committee Meeting Report

Councilmember Moore, Chair of the Audit Committee, and Staff, will brief Council on the Weaver Presentation, Building Inspection Permit Process Audit, Revenue Recovery Efforts Audit, and Firewheel Golf Course Operations Audit and Management Report.

Presenter: Jedson Johnson, City Auditor

Councilmember Moore and City Auditor Jed Johnson will report on the findings of recent audits. You can find those completed audits as well as historical audits here: https://www.garlandtx.gov/794/Audit-Reports

CONSIDER APPOINTMENTS TO BOARDS AND COMMISSIONS

Terms are usually staggered whereby at least half of the membership has previous experience. Members are appointed based on qualifications.

12. City Manager Appointment to Fill an Unexpired Term for Seat 2

• Patricia Anthony- Civil Service Commission

ANNOUNCE FUTURE AGENDA ITEMS

A Councilmember, with a second by another member or the Mayor alone, may ask that an item be placed on a future agenda of the City Council or of a committee of the City Council. No substantive discussion of that item will take place at this time.

ADJOURN

With Mayor Pro Tem heading down to Corpus for the Texas Police Chiefs Association Annual Conference, here’s Larry Joe Tayler with “Meet Me Down in Corpus.”

Growing up in Corpus, this song has a special place in my heart—so much so that my wife and I included it on our mix-tape that we gave to our wedding guests.

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As always, my comments are in bold italics.

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PUBLIC COMMENTS ON WORK SESSION ITEMS

CONSIDER THE CONSENT AGENDA

WRITTEN BRIEFINGS

1. Grant Disbursement Agreement - Garland Housing Finance Corporation

Council is requested to consider a grant agreement between the City of Garland and Garland Housing Finance Corporation. Unless otherwise directed by Council, this item will be considered for formal consideration at the March 17, 2026 Regular Meeting.

For the past five years, the Garland Housing Finance Corporation (GHFC) has been a great partner with the City of Garland in providing grant money to fund the Garland Partnership Program, which provides home repair assistance for low-income homeowners in Garland. This year’s GHFC grant provides $450,000 for emergency home repairs, major repairs, and eligible exterior repairs.

The money will supplement the City’s existing HUD-funded Home Repair Program administered by the Community Development Department with support from the Office of Neighborhood Vitality and Code Compliance.

2. Repeal of Article V. Street Improvements and Assessments of Chapter 31 of the Code of Ordinances

Council is requested to consider an ordinance repealing Article V. Street Improvements and Assessments of Chapter 31 of the Code of Ordinances. Unless otherwise directed by Council, this item will be scheduled for formal consideration at the March 17, 2026 Regular Meeting.

As discussed during the January 20, 2026 Work Session, this item will formally eliminate the Alley Petition Program which allowed residents to share the costs of constructing a new alley with the City.

3. Repeal of Article VI. Drainage Improvement Districts and Drainage Participation Projects of Chapter 31 of the Code of Ordinances

Council is requested to consider an ordinance repealing Article VI. Drainage Improvement Districts and Drainage Participation Projects of Chapter 31 of the Code of Ordinances. Unless otherwise directed by Council, this item will be scheduled for formal consideration at the March 17, 2026 Regular Meeting.

Like the previous item, this item will formally discontinue the Drainage Participation Program as discussed during the January 20, 2026 Work Session. This program allowed residents to share the cost of drainage and erosion improvement projects with the City.

VERBAL BRIEFINGS

Council may ask for discussion, further information, or give direction to staff on an item posted as a verbal briefing.

4. Fireworks Enforcement Review

Council will receive an update requested by Councilmember Dutton and seconded by Mayor Pro Tem Lucht, regarding fireworks enforcement activities during the 4th of July and New Year’s Eve.

Presenter: Jeffrey Bryan, Chief of Police, Mark Lee, Fire Chief

Police Chief Jeff Bryan will present an update on firework enforcement activities over the past few years. Last year, 12 citations were issued for illegal fireworks in the City. Additionally, the Fire Department responded to 115 firework related calls since 2020. Of the calls, 64 were fire related with 52 actual fires, and 51 were non-fire related including EMS calls, police assistance calls or calls were nothing was found.

5. East Zone Water Tower Project - Eminent Domain Submission

Council is requested to consider the approval of a resolution authorizing the use of eminent domain to acquire the necessary property interest for the East Zone Water Tower project. Unless otherwise directed by Council, this item will be scheduled for formal consideration at the March 17, 2026 Regular Meeting.

Presenter: Niels Brown, Real Estate Director, Scott Levine, First Assistant City Attorney

This item will authorize the use of eminent domain rights to acquire a 3.086-acre property at 4311 Rosehill Road for the construction of a water tower. The current owner is LT2G LLC and the current use appears to be a junkyard from aerial photos.

The new 2.5-million-gallon elevated storage tank will provide additional pressure for the City’s eastern pressure plane and reduce the gap in minimum overhead water storage requirements in accordance with Texas Commission on Environmental Quality (TCEQ) regulations.

(Aerial map from Dallas Appraisal District)

(Site Exhibit Map)

6. Consideration of Installation of Access Gates at Rick Oden Park

Council is requested to consider the installation of access gates, additional bollards, and signage at the north entrance of Rick Oden Park, and amend the park hours of operation to allow for closure of the gate at 9:00 p.m. Unless otherwise directed by Council, this item will be scheduled for formal consideration at the April 7, 2026 Regular Meeting.

Presenter: Andy Hesser, Assistant City Manager

The parking lot of the Jon Comer Skatepark has become a gathering spot after hours where people come to do burnouts, play loud music and create a disturbance. This activity creates a nuisance for the neighbors and is not the kind of environment we wish to promote in our parks.

To remedy this situation, we propose installing a gate along Miller Road that will be shut when the park closes to prevent vehicles from accessing the park. Notice the tire marks in the Google aerial image below down the center and around the edges of the drive aisle.

7. GDC Amendment ORD 26-02

Staff will provide an overview on a potential GDC Amendment related to cleaning up the plat process, sidewalk waivers, alley waivers, and working plat’s applicability.

Presenter: Nabila Nur, Planning & Development Director

After moving the plat approval process from the Plan Commission to an administrative process, staff identified that certain waivers may also be included with plat applications. Planning & Development Director Nabila Nur will update the Council on these waivers and present a proposed process for their approval.

8. Texas Municipal League (TML) Mid-year Conference Report

Per Article II, Division 1, Section 6(E) of the Council policies, Councilmember Moore and Councilmember Dutton will report back to Council on the Texas Municipal League (TML) Mid-year Conference.

Presenter: Councilmember Carissa Dutton, Councilmember Ed Moore

Councilmembers Moore and Dutton attended the Texas Municipal League Mid-year Conference in Sugarland on March 5 and 6, and will provide an update on what they learned from the conference. Conference speaker session topics included: Superhero Leadership in Uncertain Times, The History of State and Local Relations in the United States, and AI in Action: Practical Tools for Smarter Local Government.

ANNOUNCE FUTURE AGENDA ITEMS

EXECUTIVE SESSION

The City Council will adjourn into executive session pursuant to sections 551.071, 551.086 and 551.133 of the Texas Government Code to deliberate and discuss the following:

9. Competitive matters related to Garland Power & Light as it pertains to the quarterly briefing from the Risk Oversight Committee (551.086 and 552.133) and attorney/client communication related to same (551.071).

10. Threatened litigation, related settlement demand, and attorney/client communications related to the same (551.071).

ADJOURN

After talking about the fence at the skatepark, here’s Dire Straits with “Skateaway.” See you tonight!

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As always, my comments are in bold italics. I welcome any comments or questions.

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PUBLIC COMMENTS ON WORK SESSION ITEMS

CONSIDER THE CONSENT AGENDA

WRITTEN BRIEFINGS

Council may ask for discussion, further information, or give direction to staff on an item posted as a written briefing.

1. FY 2025-26 Annual Operating Budget Amendment No. 1

Council is requested to consider approving changes to the FY 2025-26 Annual Operating Budget to adjust appropriations for projects approved in last year’s budget but not yet completed, rollover of open Purchase Orders from the 2024-25 fiscal year, and expenditures not anticipated in the 2025-26 Adopted Budget. Unless otherwise directed by Council, this item will be scheduled for formal consideration at the March 17, 2026 Regular Meeting.

While the headline numbers are large, the amendment to our Annual Operating Budget is primarily administrative in nature. It adjusts the current year’s budget to account for projects approved last year but not completed before the fiscal year ended, rolls forward open purchase orders, and appropriates funding for several new or previously unanticipated expenditures. In most cases, the amendment does not create new financial pressure but instead aligns appropriations with timing and previously approved actions.

A substantial portion of the amendment carries forward funding from FY 2024–25 into FY 2025–26. These are projects that were budgeted and approved but not finished by September 30. For example, $854,255 is rolled forward in the TIF #1 Fund to continue implementing the Downtown TIF Project and Financing Plan. The IT Project Fund carries forward $6.37 million for prior-year projects, and the Infrastructure Repair & Replacement Fund rolls forward $12.06 million for street, alley, and overlay projects. Other carryovers include equipment replacements for Fire, GP&L, and Water units totaling $1.35 million, Parks security cameras, website redesign work, and various departmental equipment purchases. In each case, staff notes that the amendment is required due to timing only and has no additional financial impact because the funds were already budgeted.

In addition to incomplete projects, the amendment rolls forward $15.68 million in open purchase orders from FY 2024–25. When goods or services are ordered but not received by year-end, the associated funds remain in fund balance. The City’s practice is to re-appropriate those encumbered amounts in the new fiscal year so payment can be completed. Of the total rollover, $1.37 million relates to the General Fund, with the remainder spread across utilities, infrastructure, fleet, and technology funds. Because the adopted budget assumed these expenditures would occur in the prior year, the roll forward does not change projected year-end fund balances.

The amendment also includes several new or previously unanticipated expenditures. One of the most significant adjustments involves Pension Obligation Bonds. In July 2025, Council approved $131.5 million in bonds to reduce the City’s unfunded TMRS pension liability. Because the bonds were delivered after the FY 2025–26 budget was adopted, transfers from utility and enterprise funds are now required to cover their share of debt service. The amendment increases appropriations by $2.62 million across the Electric, Water, Wastewater, Sanitation, and Stormwater funds for these transfers, funded through excess reserves and ongoing revenues.

Infrastructure and utility investments make up another large share of the new appropriations. The Wastewater Utility Fund includes $2.66 million for a comprehensive Wastewater Treatment Masterplan, expanding beyond a previously budgeted limited-scope study to create a 20-year roadmap addressing aging facilities and regional growth. The Electric Utility Fund includes $3.28 million for Capital Improvement Program transfers related to Olinger Unit 1 and advanced metering infrastructure, $1.32 million for plant repairs and regulatory compliance, and $698,000 for a Transmission Engineering office lease and relocation costs, partially offset by landlord reimbursement. The Infrastructure Repair & Replacement Fund also includes $1 million for maintenance on Pleasant Valley Road due to unforeseen conditions.

Other items include $114,600 from the Narcotic Seizure Fund for department-issued firearms, $85,000 in mental health grants for peace officers, a $348,532 HUD Mainstream housing assistance grant, and $233,500 for a downtown hotel feasibility study. Several smaller grants, including a Walmart grant for the Library and a Texas Commission on the Arts grant, are also recognized as both revenue and expenditure increases.

Altogether, carryovers, purchase order rollovers, and new amendments total approximately $50.2 million in appropriations adjustments across all funds. However, the majority of that amount reflects previously approved spending being moved forward due to timing.

2. Amendment to the Civil Service Classifications Ordinance for Police

Council is requested to consider the approval of an amendment to the Civil Service Classifications and Compensation Ordinance, pursuant to Chapter 143 of the Texas Local Government Code. Unless otherwise directed by Council, this item will be scheduled for formal consideration at the March 3, 2026 Regular Meeting.

This item amends the City’s Civil Service Classifications Ordinance for the Police Department to reduce the number of Police Supervisor positions from 40 to 38 and creates a new classification—Deputy Assistant Police Chief—with two new positions in that rank.

With the next two items, we will remove the “Interim” tag from Interim City Manager Mike Betz. Since taking over the helm at the end of last year, Mike has steadied the organization and focused his efforts on responding to “Garland’s Challenge” which is the financial pressures facing our city. Mike has extensive knowledge of our city after serving as Deputy City Attorney and Chief Information Officer and cares deeply for our city. I am excited for him, grateful for his leadership, and look forward to working together to help move the city ahead.

I want to repeat his letter published in the January/February edition of the Garland Press below. His commitment to Garland is :

I was honored to have been appointed Interim City Manager, and I want to begin by expressing my gratitude for the trust placed in me by the City Council and by the community I have been privileged to serve for nearly 20 years. Garland has been my professional home for most of my career, and like so many of you, I care deeply about our city — its people, its neighborhoods and its future.

Over the past few weeks, I’ve spoken with employee groups, Boards & Commissions, and many of our community partners. My message has remained consistent: the role of the City Manager is first and foremost one of service — to the Council that sets policy, to the staff who carry out the work of the City and to the residents who depend on us every day.

In the Council–Manager form of government, the Council provides vision and direction. It is the City Manager’s responsibility to turn that direction into operational reality. That means listening closely, communicating clearly and ensuring the work of the organization reflects the values and priorities of the community. I take that responsibility seriously. I believe one of the most important things a City Manager can do is listen first and then communicate with transparency about what we are doing, why we are doing it and how it will benefit the people of Garland.

On my first Friday at City Hall in this role, I found myself looking out across the Downtown Square. There was live music in the air, families on the lawn, kids running through the play areas, every table outside the restaurants full. Not long ago, that same space was quiet and underused, a place people passed through rather than a place they gathered. What I saw that night was a reminder of what happens when Council leadership, community support and City staff come together.

That moment — looking out across a vibrant square — captured for me the best of who we are. When we work together, Garland moves forward.

As we enter the new year, my focus is on bringing fresh energy and renewed clarity to our work. Team Garland, the exceptional staff who work at the City, are dedicated and hardworking, and my goal is to support them as we continue to build on Garland’s momentum and success. I am committed to strengthening collaboration, rebuilding trust where needed and ensuring our decisions are grounded in transparency and open communication.

Garland is a unique city — a unique community with extraordinary diversity, and a character shaped by generations of residents who take pride in where they live. These assets give us opportunities that many cities simply do not have, and they position us for continued stability and growth.

I am grateful for the chance to serve you in this interim role, and I look forward to engaging with you in the months ahead. Whether you are a longtime resident or new to Garland, your voice matters. I hope to hear from you, work with you and continue pushing our city toward excellence — together.

Sincerely,

Mike Betz

3. Appointment, Contract, Duties, and Employment of the City Manager

Council is requested to consider the appointment, re-appointment, contract, duties, and employment for the Office of the City Manager. Unless otherwise directed by Council, this item will be scheduled for formal consideration at the March 3, 2026 Regular Meeting.

4. Approve the Employment Contract of the City Manager, Mike Betz

Council is requested to consider the employment contract of the City Manager, Mike Betz and authorize the Mayor to execute the same. Unless otherwise directed by Council, this item will be scheduled for formal consideration at the March 3, 2026 Regular Meeting.

VERBAL BRIEFINGS

Council may ask for discussion, further information, or give direction to staff on an item posted as a verbal briefing.

Now the moment we have all been waiting for. After months of negotiation, we are finally able to announce that H-E-B is planning to bring a 115,000-square-foot flagship store to Firewheel Town Center and an approximately 50,000-square-foot Joe V’s Smart Shop to the corner of W. Centerville Road and Broadmoor Drive.

(The H-E-B in Plano on Preston Road.)

(The ribboncutting of a new Joe V’s in Dallas off Wheatland Road.)

H-E-B anticipates investing about $19.6 million in the flagship project, which is expected to generate new property and sales tax revenue for the City. The proposed development agreement includes incentives such as rebates on development fees, sales taxes, and property taxes, as well as assistance with certain site-related costs.

In South Garland, H-E-B proposes to build a 50,000-square-foot Joe V’s Smart Shop next to the existing Ross Dress for Less. H-E-B plans to invest approximately $8.5 million in the development, which is expected to generate new property and sales tax revenue for the City in a shopping center that has long been underutilized. The development agreement includes incentives such as rebates on sales and property taxes, along with support for demolition, façade improvements, and infrastructure upgrades.

In both cases to qualify for these incentives, the developer must meet specified construction and opening deadlines, and property and business personal property tax rebates are contingent upon meeting minimum valuation thresholds during the rebate period.

5. Proposed Development Agreement with H-E-B, L.P.

Council is requested to consider a development agreement between H-E-B L.P. and the City of Garland. This agreement involves two parcels of approximately 20.8 acres at the corner of Crist and President George Bush Turnpike. Unless otherwise directed by Council, this item will be scheduled for formal consideration at the March 17, 2026 Regular Meeting.

Presenter: Andy Hesser, Assistant City Manager, Ayako Schuster, Economic Development Director

6. Proposed Development Agreement for Joe V’s Smart Shop by H-E-B, L.P.

Council is requested to consider a development agreement between H-E-B L.P. and the City of Garland. This agreement involves three parcels of approximately 12.8 acres at the corner of W. Centerville Road and Broadmoor Drive. Unless otherwise directed by Council, this item will be scheduled for formal consideration at the March 17, 2026 Regular Meeting.

Presenter: Andy Hesser, Assistant City Manager, Ayako Schuster, Economic Development Director

7. Grow Garland Bond Proposition C: Granville Arts Center Renovation Update

Staff will present an update on the Granville Arts Center Renovation — Proposition C of the Grow Garland 2025 Bond Program. Progress includes the selection of a Construction Manager at Risk, as well as community and arts group feedback through public input sessions and surveys.

Presenter: Amy Rosenthal, Cultural Arts Director, Michael Buchler, Capital Project Management Director

Cultural Arts Director Amy Rosenthal will provide and update on the progress so far on the renovation of the Granville Arts Center. In January, I attended a community meeting with the project architects. They had already completed a 3D scan of the entire facility and were studying multiple alternative seating configurations for both the large and small theater venues.

The design team also shared some preliminary survey results from stakeholders, users and community members. The largest takeaways were the need for better ADA accessibility, better backstage space and sound and lighting improvements.

8. January Winter Storm Update

Staff will provide an update on the response to the winter storm that began on January 23, 2026, including actions taken by various departments. This item was requested by Councilmember Dutton and seconded by Mayor Pro Tem Lucht.

Presenter: Phil Urrutia, Assistant City Manager

Assistant City Manager Phil Urrutia will present an update on the City’s response to the winter storm that impacted our community at the end of January. I want to express my sincere appreciation to all City staff who navigated hazardous road conditions during the storm to help maintain public safety and keep our utilities and facilities operating safely and efficiently.

9. Code Compliance Civil Citation Program

Council is requested to consider approval for implementing a civil citation program. This program would help to expedite enforcement and reduce compliance timelines within the City. Council considered this item at the February 16, 2026 Work Session. Unless otherwise directed by Council, this item will be scheduled for formal consideration at the March 17, 2026 Regular Meeting.

Presenter: Brian Morris, Director of Code Compliance

Director of Code Compliance Brian Morris will return to clarify the enforcement of the new civil citation program for Code Compliance. Last time he mentioned that there may be a warning issued before a fine, but that will not be the case. The goal is to gain compliance rather than be punitive, so the idea will be to charge only the administrative costs of issuing the ticket (approximately $3) with the remainder of the ticket written off if compliance is achieved before the hearing date.

I encourage you to listen to the latest episode of my podcast Fifth & State out later today where I interviewed Brian Morris and we talked all things Code Compliance.

10. Development Services Committee Report

Mayor Pro Tem Lucht, Chair of the Development Services Committee, and Staff will provide a briefing to Council regarding a proposed amendment to the Land Use Matrix and definitions related to smoke shop and tobacco/cigar shop.

Presenter: Mayor Pro Tem Lucht

Chairwoman Lucht of the Development Services Committee will present a recommendation that the Garland Development Code be amended to clearly define “smoke shops” and “cigar/tobacco shops” and amend the Land Use Matrix to only allow smoke shops in industrial areas with an SUP.

11. Legislative & Public Affairs Committee Report

Ariel Traub, Managing Director of Legislative & Public Affairs, will discuss the impact of H.R. 1 “One Big Beautiful Bill Act” and ask Council to consider consultant services to explore alcohol retail sales options.

Presenter: Ariel Traub, Managing Director

After being sick last Work Session, Ariel will return to provide council with an update of the impact of the “One big Beautiful Bill Act” on Garland as well as exploring options to allow for retail sales of alcoholic beverages.

CONSIDER APPOINTMENTS TO BOARDS AND COMMISSIONS

Terms are usually staggered whereby at least half of the membership has previous experience. Members are appointed based on qualifications.

12. City Manager Appointment to Fill an Unexpired Term for Seat 2

• Preston Edwards - Civil Service Commission

ANNOUNCE FUTURE AGENDA ITEMS

A Councilmember, with a second by another member or the Mayor alone, may ask that an item be placed on a future agenda of the City Council or of a committee of the City Council. No substantive discussion of that item will take place at this time.

EXECUTIVE SESSION

The City Council will adjourn into executive session pursuant to sections 551.071 and 551.072, of the Texas Government Code to deliberate and discuss the following:

13. The proposed purchase and value of real property generally located near the northeast corner of Shiloh Road and Kingsley Road (551.072), and attorney/client communications related to the same (551.071).

14. Consultation with City Attorney to receive legal advice regarding matters related to an interlocal agreement between DART and the City related to general mobility program funds (551.071).

ADJOURN

With the big H-E-B announcement, here is the artist HEB with the instrumental dance track “GALAXY TROPICAL.” Enjoy!

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This is not a small step. It ends the automatic opt-out enrollment, the planned $6 monthly fee on utility bills (escalating later), and any city involvement in billing or promoting this specific for-profit service. No more confusion on your bills. No more questions about why government was inserting itself between residents and their healthcare choices.

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How We Got Here – A Quick History

• August 19, 2025: The Council voted 7-2 to approve the Master Telehealth Services Agreement with MD Health Pathways. (I was one of the two “no” votes, along with Councilmember Moore, because I believed from day one that a program this impactful deserved broader community input before any fees or automatic enrollments were tied to city utilities.)

• Fall 2025 – Early 2026: A pilot launched with free access offered to up to 10,000 households. Monthly updates to Council showed thousands opting out (3,739 residences by the January 20, 2026 update alone). Residents flooded Council meetings, emails, and social media with concerns: the opt-out model felt sneaky, elderly and non-English-speaking neighbors were confused, and many simply didn’t want government steering them toward one specific telehealth provider without real competition or a direct vote.

• February 3, 2026: In direct response to that outcry, the Council voted unanimously to place a non-binding proposition on the May 2, 2026 special election ballot so residents could clearly express their will on the fee and the program.

Even that step wasn’t enough for many of you. You kept showing up, kept emailing, kept calling, and kept reminding us: “Just cancel it. We don’t need a ballot question if the contract can be ended cleanly.”

Last night, after executive session discussion with the City Attorney on contractual obligations, the Council agreed. We directed the City Manager to terminate the agreement. The program is done. Garland families will not be enrolled or billed through this contract.

Why This Matters

This decision proves that citizen engagement works. When residents speak with one voice—respectfully but persistently—our local government can and will respond. No resident should ever feel that a fee is being quietly added to their essential utility bill without their explicit consent. Healthcare access is important (Garland has gone without a hospital since 2018), but it must be pursued through transparent, competitive, opt-in solutions—not government-mandated opt-out programs.

To every resident who attended meetings, sent emails, made phone calls, posted on neighborhood pages, or simply talked to neighbors: thank you. You made this happen.

The contract cancellation process will now move forward. We will keep the public updated on timelines and next steps. In the meantime, residents who want telehealth options have plenty of private-market choices available right now—no city involvement required.

Garland works best when we govern with humility, transparency, and responsiveness to the people we serve. If you have questions or want to stay informed, click subscribe, reply here or reach out through the usual channels. Thank you for your continued support.

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As always, my comments are in bold italics.

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CONSIDER THE CONSENT AGENDA

WRITTEN BRIEFINGS

Council may ask for discussion, further information, or give direction to staff on an item posted as a written Briefing.

1. Neighborhood Vitality Matching Grant Funding Request - Fall 2025 Cycle

Council is requested to consider approval of the Fall 2025 Neighborhood Vitality Matching Grant request from the neighborhoods below:

1. Heron’s Bay

2. Oakcrest Addition

3. Oaks at Stoney Creek

Unless otherwise directed by Council, this item will be scheduled for formal consideration at the March 3, 2026 Regular Meeting.

All applications for matching funding from our Neighborhood Vitality grants must be reviewed and approved by Council after the Community Services Committee has reviewed each item. This round of grant requests include flag poles for Heron’s Bay neighborhood, a new brick wall and hardscaping for the Oakcrest neighborhood, and hardscaping for the Oaks at Stoney Creek neighborhood. Each of the grants require the neighborhood organization to pay 15% of the cost of the improvement with the remaining 85% covered by the City’s grant.

2. Police Contact Data Report 2025

In accordance with the Texas Racial Profiling statute (Texas Code of Criminal Procedure, Chapter 2B, Subchapter B), the Garland Police Department has collected police contact data to identify and respond to racial profiling concerns since its inception. The statute requires the Garland Police Department to submit this report to the Council by March 1 of each year, covering data from the previous calendar year.

The Garland Police Department conducted 54,504 traffic stops in 2025, with males accounting for 65.4% (35,626) of stops and females 34.6% (18,878). The largest racial/ethnic group stopped was Hispanic or Latino drivers at 39.8% (21,699), followed by White drivers at 29.6% (16,135) and Black drivers at 22.4% (12,192). The vast majority of stops (83.3%) were for moving traffic violations, and 97.4% occurred on city streets. Searches were conducted in 4.1% of stops (2,251 total), most commonly based on probable cause (1.9% of all stops) or consent (1.2%), while 95.9% of stops did not involve a search.

3. Tax Increment Financing Reinvestment Zone Number Two (TIF #2) Amended Project and Financing Plan

At the November 3, 2025 Work Session, staff provided an overview of a TIF #2 Board recommendation to extend the termination date of the zone until December 31, 2045; expand the geographic boundaries of the zone; and, amend the TIF #2 Project and Financing Plan. On December 17, 2025, the TIF #2 Board met and recommended approval of the amended Project and Financing Plan, with allocation of 50% of TIF Funds to the City’s General Fund. Unless otherwise directed by Council, this item will be scheduled for formal consideration at the February 17, 2026 Regular Meeting.

The amended project and financing plan for TIF #2 includes proposals for public infrastructure, economic development grants and overhead administrative costs. Assuming 3.5% annual growth of property in the TIF, an estimated $119,149,991 in property tax will be generated over the life of the TIF.

Public infrastructure may include water, sanitary, storm, street or park improvements. Economic Development Grants may include grants, loans, and services for public and private development. Administrative expenses — including reasonable costs for City staff time spent supporting implementation within the TIF— may be reimbursed as project costs, subject to approval by the Board of Directors and in accordance with the Project and Financing Plan. This category also covers related administrative expenses such as legal and consulting fees, management costs, meeting expenses, and equipment.

4. Investment Portfolio Report

The Quarterly Investment Portfolio Report is being presented to City Council for review.

The City of Garland manages eight distinct investment portfolios, each with specific purposes, objectives, and management strategies. All portfolios comply with the Public Funds Investment Act and are managed in accordance with the City Council’s Financial Policy, Statement of Investment Policy, and Statement of Investment Strategy.

Portfolio Summaries

• Treasury Portfolio
  The City’s primary operating portfolio. It holds all budgeted revenues and bond proceeds and is managed to ensure sufficient liquidity for ongoing operations, maintenance, and capital improvements.

• General Obligation Interest & Sinking Portfolio
  Used to pay debt service on tax-supported debt. Funded primarily by ad valorem taxes and managed to ensure timely debt payments.

• Rate Mitigation Portfolio
  Established in 1997. Supports Garland Power & Light by either paying electric utility debt service or offsetting rate increases. Managed based on forecasted funding needs.

• Economic Development Portfolio
  Funds economic development initiatives. Maintains high liquidity to respond quickly to major expenditures.

• CMH Landfill Portfolio
  Holds funds designated for expanding the Hinton Landfill when existing capacity is reached. Managed to ensure funds are available when needed.

• Water & Sewer Reserve Portfolio
  Required by bond covenants. Serves as a reserve to provide additional assurance that Water & Sewer debt obligations will be met.

• CIP Interim Financing Portfolio
  Contains funds for Capital Improvement Programs (General Obligation, Electric Utility, and Water & Sewer Utility). Managed for maximum liquidity.

• Grants & Other Portfolio
  Composed of unspent federal and state grant funds. Also managed for maximum liquidity.

Each portfolio is structured to balance liquidity, compliance, and funding objectives, ensuring the City can meet operational needs, debt obligations, capital projects, and strategic initiatives efficiently and responsibly.

VERBAL BRIEFINGS

Council may ask for discussion, further information, or give direction to staff on an item posted as a verbal Briefing.

5. Garland Fire Department and RightSite for Non-Emergency Patients

Council is requested to consider approval for Garland Fire Department and Garland Police Department Dispatch to contract with RightSite to assist non-emergency patients and improve ambulance availability. Council considered this item at the February 2, 2026 Work Session. Unless otherwise directed by Council, this item will be scheduled for formal consideration at the February 17, 2026 Regular Meeting.

Presenter: Mark Lee, Fire Chief, Larry Movsik, RightSite

We will continue discussions of the RightSite program which integrates into our 911 service with the goal of diverting non-emergency calls to immediate care through a telehealth provider at no cost to the city. This ensures patients receive the right level of care more quickly and at lower cost.

Insurance companies benefit from reduced emergency room claims, while hospitals reduce overcrowding by keeping non-emergency cases out of the ER. Uninsured patients are supported through partnerships with insurance providers and hospital foundations, allowing them to receive care at no cost.

As a result of the program, ambulances will be freed up to respond to higher priority calls with lower priority calls handled by the RightSite Care Team. The system works during daytime hours when most of the emergency calls are made. The program operates at no additional cost to the City beyond normal emergency response expenses.

I encourage you to watch the previous Work Session’s discussion on the topic (Click on item 5 here: https://garlandtx.new.swagit.com/videos/373777)

6. Code Compliance Civil Citation Program

Council is requested to consider implementing a civil citation program. This program would help to expedite enforcement and reduce compliance timelines within the city. Unless otherwise directed by Council, this item will be scheduled for formal consideration at the March 3, 2026 Regular Meeting.

Presenter: Brian Morris, Director of Code Compliance

The city council will consider moving forward with a civil citation program for code compliance violations. As always, the intent of the program is to gain compliance rather than punish violators.

The program is intended to:

• Improve neighborhood and city compliance.

• Provide a faster, more efficient alternative to criminal enforcement.

• Reduce court workload and lengthy due process timelines.

• Increase compliance through streamlined administrative hearings.

• Maintain existing notice requirements.

• Utilize new software (T2 Systems) to handle correspondence, fee collection, and past-due communication.

Criminal enforcement would remain available for serious or repeat offenders, while civil enforcement would address most routine violations.

Approximately 45 violation types (already outlined in the City Code and GDC) would qualify, covering:

• Residential, commercial, and multifamily properties.

• Issues such as high grass, junk vehicles, graffiti, encroachments, improper storage, water leaks, stagnant water, fire lane obstructions, parking violations, hazardous conditions, exterior maintenance issues, and more.

Trash/Bulky Items left out on a non-trash day

Inoperable/Junk Motor Vehicles

Commercial Building/Parking Lot Maintenance

Proposed Fine Structure

Residential:

• 1st offense: $25

• 2nd offense: $75

• 3rd+ offense: $150

Commercial:

• 1st offense: $100

• 2nd offense: $150

• 3rd+ offense: $200

Additional fees include a $25 late fee and collections fees up to 30%.
For comparison, criminal court fines can reach up to $500 (or $2,000 for some repeat Offenses). Other cities, such as Grand Prairie, use a similar escalating structure.

Key Benefits of Civil Enforcement

• Faster case resolution and improved neighborhood outcomes.

• Greater resource efficiency for courts, prosecutors, and staff.

• Reduced administrative workload and reinspection cycles.

• Increased compliance through predictable and timely penalties.

• Balanced enforcement approach while preserving criminal options when necessary.

Overall, the proposed civil enforcement program is designed to enhance efficiency, improve compliance, and better allocate City resources while maintaining due process.

Please let me know your thoughts on our efforts to enforce our ordinances and clean up our city.

As part of Proposition B of the 2025 bond program, funding was made available for economic development purposes. Two such opportunities staff have identified are discussed in the next two items. The first is a 1.43-acre vacant property just west of Downtown which formerly housed the Texas Workforce Commission.

The second is a property north of Downtown across Walnut Street which would serve as an artist incubator space to enhance Garland’s arts culture. The goal would be to kindle a cultural center like the Elmo Arts District in Austin, or the Tin District and Inwood Design District in Dallas.

7. Acquisition of Improved Real Property Located at 201-225 North 10th Street

Council is requested to consider the purchase of improved real property located at 201-225 North 10th Street from the State of Texas General Land Office (GLO), and to authorize the City Manager to execute such documents necessary to complete the transaction. Unless otherwise directed by Council, this item will be scheduled for formal consideration at the March 3, 2026 Regular Meeting.

Presenter: Niels Brown, Real Estate Director, Ayako Schuster, Economic Development Director

(The subject property outlined in red.)

8. Acquisition of Improved Real Property Located at 616-618 North 5th Street

Council is requested to consider the purchase of improved real property located at 616-618 North 5th Street from Absolute Diplomacy, LLC, and to authorize the City Manager to execute such documents necessary to complete the transaction. Unless otherwise directed by Council, this item will be scheduled for formal consideration at the March 3, 2026 Regular Meeting.

Presenter: Niels Brown, Real Estate Director, Amy Rosenthal, Cultural Arts Director

(The subject property is outlined in red with the DART Bus Station in green)

The subject building could be renovated to include gallery space, offices/classrooms, a black box theater and artist studios which would compliment the FCS Clayworks community studio space across the street.

9. Transportation, Infrastructure and Mobility (TIM) Committee Report Update

Councilmember Thomas Jr., Chair of the TIM Committee, and Staff will brief Council on the Alley Petition Program and the Drainage Participation Program.

Presenter: Joe Thomas Jr., Councilmember, Michael Polocek, Engineering Director

On January 20, 2026, staff presented the Alley Petition Program and the Drainage Participation Program to the TIM Committee. After discussion, the Committee recommended discontinuing both programs. Each program is established under separate sections of Chapter 31 of the Code of Ordinances—Article V (Street Improvements and Assessments) for the Alley Petition Program and Article VI (Drainage Improvement Districts and Drainage Participation Projects) for the Drainage Participation Program. Discontinuing either program would require repeal of the applicable ordinance article(s).

Alley Petition Program – Key Considerations:

• 95 requests submitted over 20 years, with only one successful petition

• Significant staff time and resources required with minimal benefit

• Property assessments limited to enhanced property values, resulting in additional City funding obligations

• Increased long-term maintenance responsibilities for the Streets Department

Drainage Participation Program – Key Considerations:

• Average project costs increased from $53,161 (2010–2020) to $244,009 (2021–2025)

• Participation declined from 50% (2010–2020) to 6% (2021–2025)

• Continued use of staff resources despite very low participation

If Council concurs with the Committee’s recommendation, staff will prepare ordinance amendments to repeal Article V and/or Article VI of Chapter 31 to formally discontinue the programs.

10. Administrative Services Committee Report

Councilmember Beard, Chair of the Administrative Services Committee and Staff, will brief Council on recommending approval of a one-year engagement with Clear Career Professionals to support the evaluation of Council appointees.

Presenter: Kris Beard, Councilmember

Council is being asked to approve a one-year engagement with Clear Career Professionals to support the 2026 Council Appointee Evaluation Process at a cost of $27,000, consistent with pricing from the previous evaluation cycle.

Clear Career Professionals has assisted with the last two evaluation cycles. The Administrative Services Committee reviewed the firm’s 2026 proposal and confirmed no change in cost. For 2026, the firm will enhance the process by providing a consolidated compensation packet for each appointee, incorporating the annual compensation study and a summary of prior compensation adjustments. This addition is intended to improve clarity, documentation, and Council’s overall decision-making framework.

The Administrative Services Committee recommends approval of the one-year agreement for $27,000 and authorization to execute the contract.

11. Public Safety Committee Report - Fire | EMS Stakeholder Committee Update

Deputy Mayor Pro Tem Ott, Chair of the Public Safety Committee, and Staff, will brief Council on the work and progress to date of the Fire and EMS Stakeholder Committee.

Presenter: Christopher Ott, Deputy Mayor Pro Tem, Mistie Gardner, Managing Director-Emergency Management

Deputy Mayor Pro Tem Ott will provide a briefing on the progress the Fire and EMS Stakeholder Committee has made to date discussing options to deliver financially sustainable fire and EMS services for the City of Garland. In the February 11th meeting, various staffing models and the operational benefits of each were discussed. During the next meeting March 11, the financial feasibility and funding options of each model will be discussed.

12. Community Services Committee Report

Councilmember Dutton, Chair of the Community Services Committee, and Staff will present updates on the following items: the Adopt-a-Spot program, referred on March 28, 2025, by Councilmember Bass and seconded by Mayor Hedrick; revisions to the Neighborhood Vitality Matching Grant Guidelines, referred on August 28, 2025, by Councilmember Bass and seconded by Councilmember Dutton; and mailers distributed by third parties, referred on September 15, 2025, by Mayor Pro Tem Lucht and seconded by Councilmember Dutton.

Presenter: Carissa Dutton, Chair, Scott Bollinger, Neighborhood Resources Director

The Community Services Committee met to discuss several items referred by City Council and is providing updates for Council consideration.

The Committee reviewed:

• Used Tire Disposal and Recycling (referred October 6, 2025): Staff outlined current practices and services addressing used tire disposal.

• Adopt-a-Spot Programs (referred March 28, 2025; expanded October 20, 2025): Staff presented ongoing efforts to strengthen the City’s volunteer program in preparation for implementing an Adopt-a-Spot or similar initiative.

• Neighborhood Vitality Matching Grant Guidelines (referred August 28, 2025): Staff facilitated discussion on potential revisions to the existing grant guidelines.

• Third-Party Mailers (referred September 15, 2025): Staff reviewed applicable laws, ordinances, and related legal considerations.

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13. Legislative & Public Affairs Committee Report

Ariel Traub, Managing Director of Legislative & Public Affairs, will discuss the impact of H.R. 1 “One Big Beautiful Bill Act” and ask Council to consider consultant services to explore alcohol retail sales options.

Presenter: Ariel Traub, Managing Director

Our Managing Director of Legislative & Public Affairs Ariel Traub will provide Council with an update about the One, Big, Beautiful Bill Act passed by Congress in early July and signed into law on July 4. According to the Congressional Budget Office (CBO), the bill would decrease deficits by $0.4 trillion under Senate budget enforcement rules but increase deficits by $3.4 trillion over the 2025–2034 period compared to the January 2025 baseline projections

The legislation makes significant changes affecting local governments, including tax policy, economic development incentives, clean energy credits, federal grants, social safety net programs, and immigration enforcement.

For local governments, the bill preserves the tax exemption on municipal bonds and private activity bonds, a key financial protection for cities. It also temporarily increases the State and Local Tax (SALT) deduction cap from $10,000 to $40,000 through 2029, with a reversion to $10,000 beginning in 2030. The legislation makes the Opportunity Zone program permanent with updated rules beginning in 2027 and enhanced targeting for distressed and rural areas.

Additionally, the Low-Income Housing Tax Credit (LIHTC) and New Markets Tax Credit (NMTC) programs are made permanent, with enhancements intended to expand affordable housing production and investment in underserved communities. A proposed 10-year federal moratorium preempting state and local artificial intelligence regulation was ultimately removed from the final bill. The law also increases homeland security-related funding, including grants to reimburse border security efforts and funding to support local security planning for the 2026 FIFA World Cup and 2028 Olympics.

However, the bill rescinds substantial unobligated funding from U.S. Department of Transportation Neighborhood Access and Equity grants and several Environmental Protection Agency emissions reduction and environmental justice grant programs. The Greenhouse Gas Reduction Fund not only loses unobligated funding but also has its underlying authorization repealed. While the Inflation Reduction Act’s “direct pay” mechanism is retained, the bill accelerates the phaseout of certain clean energy tax credits for solar and wind projects and adds new supply chain requirements that may limit local governments’ ability to utilize those credits.

The legislation also includes significant reductions to social safety net programs. SNAP funding is reduced by $186 billion through 2034, with expanded work requirements and tightened eligibility criteria. Federal Medicaid spending is reduced by $1 trillion, with an estimated 11.8 million more individuals becoming uninsured; the bill introduces new work requirements and other eligibility and financing changes.

Additionally, the bill provides $4.1 billion to expand federal immigration enforcement personnel and $2 billion for related bonuses, potentially increasing enforcement activity in cities. It also establishes a new overtime income tax deduction, allowing eligible employees to deduct up to $25,000 for joint filers.

Looking ahead, there may be additional pressure to reduce federal spending through the FY2026 appropriations process, which could affect grant programs relied upon by local governments. The President has also directed the U.S. Department of the Treasury to issue updated guidance to ensure strict enforcement of the revised clean energy tax credit provisions and new foreign entity restrictions.

Overall, the law preserves several key local government financing tools and economic development programs but creates fiscal, social service, and grant funding uncertainties that may significantly impact local communities.

Finally, Ms. Traub will provide an update on our alcohol sales options–a cause I championed during my campaign. Garland is currently “partially wet,” meaning beer and wine sales are allowed, and restaurants that receive at least 51% of receipts from food sales may sell mixed drinks; however, liquor stores are not permitted within the city. To authorize liquor stores, state law requires a local option election initiated through a petition signed by 35% of registered voters who voted in the most recent gubernatorial election, with signatures collected within 60 days.

During the 88th Legislative Session, HB 1694 was filed but died on the House floor on a point of order and was withdrawn, with no Senate companion bill. In the 89th Legislative Session, HB 3085 and SB 2633 were filed; HB 3085 did not receive a House hearing, and SB 2633 passed the Senate but did not receive a House hearing.

The bill language was later amended onto HB 2885, but after conference committee negotiations and stakeholder discussions, the final outcome allowed Garland to bypass the petition process only to permit the sale of mixed beverages, effective September 1, 2025. This amendment meant that businesses could sell mixed drinks without serving food (essentially enabling bars), but this would open the door to other establishments (such as strip clubs) opening in Garland. This amendment significantly changed the intent of my original proposal.

Looking ahead, the 90th Legislative Session begins January 12, 2027. Prior efforts faced significant opposition, and the document notes it is unlikely the upcoming session will present a more favorable environment, particularly for election code reforms, which are described as especially difficult to advance. Council has several options to consider: calling a local option election; directing Legislative & Public Affairs to pursue another legislative effort to bypass the petition process; hiring a consultant to lead a petition drive; seeking election code changes; engaging prior opponents to pursue compromise; or pursuing a combination of these strategies.

CONSIDER APPOINTMENTS TO BOARDS AND COMMISSIONS

Terms are usually staggered whereby at least half of the membership has previous experience. Members are appointed based on qualifications.

14. Mayor Dylan Hedrick

• Subhi Gharbieh - Board of Adjustment

15. Council Member Joe Thomas Jr.

• Edgar Miranda - Plan Commission

ANNOUNCE FUTURE AGENDA ITEMS

A Councilmember, with a second by another member or the Mayor alone, may ask that an item be placed on a future agenda of the City Council or of a committee of the City Council. No substantive discussion of that item will take place at this time.

EXECUTIVE SESSION

The City Council will adjourn into executive session pursuant to sections 551.071, 551.072, 551.074, and 551.087 of the Texas Government Code to deliberate and discuss the following:

16. Discuss or deliberate commercial or financial information that the City has received from one or more business prospects that the City seeks to have locate, stay, or expand in the downtown district of the City, and with which the City is conducting economic development negotiations (551.087); including the potential sale, exchange, or value of real property in the vicinity of W. Avenue A and S. 6th Street (551.072); and attorney/client communications related to the same (551.071).

17. Consultation with City Attorney to receive legal advice and attorney/client communication regarding contractual obligations and matters related to the Master Telehealth Services Agreement (551.071).

18. Personnel matters related to the hiring of a City Manager (551.074) and to consult with the City Attorney (551.071) regarding the same.

ADJOURN

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With all the committee reports this week, here is a cut called “Just As Long As I Got You” by Love Committee. Enjoy!

With this post, however, I want to look ahead to another important election the City will conduct later this year in November 2026: a tax rate election that I like to call the “Swap and Drop.” This proposal is designed to reward you for your past support, maintain essential city services, and even lower our overall property tax rate. Let me break it down for you step by step.

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A Quick Refresher on Property Taxes in Garland

First, a bit of background. Our city’s property tax rate is divided into two main parts:

• Debt Service (I&S) Rate: This portion pays for bonds we’ve issued to fund major capital projects, like infrastructure improvements. It’s essentially the “mortgage” on investments we’ve made in our community’s future.

• Operations and Maintenance (O&M) Rate: This covers the day-to-day costs of running the city, including public safety, street maintenance, parks, libraries, and other essential services that keep Garland running smoothly. These costs increase over time due to factors like salary increases and hiring additional staff to operate our larger, new facilities.

Our current total tax rate is $0.6897 per $100 of property valuation, with $0.2886 going to debt service and $0.4011 to O&M. These funds are crucial for delivering the high-quality services our residents deserve.

Thank You for Your Support in 2019

Back in May 2019, Garland voters overwhelmingly approved all eight bond propositions in a comprehensive $423.7 million package. This included critical investments in streets and infrastructure, parks and recreation, libraries, public safety facilities, economic development, cultural arts, an animal shelter, and more.

To fund these bonds responsibly, you supported a targeted $0.065 increase to the city’s debt service tax rate (that’s six and a half cents per $100 of property valuation, added specifically to the debt service portion). You can see the increase in the debt service rate in chart above between FY 2018-2019 and FY 2019-2020. This modest adjustment allowed us to issue the bonds and move forward with the projects without touching the operations and maintenance rate or requiring broader tax hikes.

Your “yes” votes made it possible to design and complete many of these projects, delivering real improvements that enhance our city’s infrastructure and quality of life. We’ve seen new and upgraded parks, smoother roads, modernized libraries, and stronger public safety resources that benefit families and businesses across Garland every day.

Because of your trust, combined with careful financial management and efficient project execution, we’ve completed 82% the bond projects or programs and paid down a portion of that debt. This creates meaningful room now to lower the debt service rate responsibly—without breaking our bond commitments—while still honoring the investments you approved.

The Challenge: Texas Senate Bill 2 (SB2) – Why It Pushes the O&M Rate Downward

In 2019 the Texas Legislature passed Senate Bill 2 (the Property Tax Reform and Transparency Act), one of the most significant changes to local property taxes in decades.

The key change that affects Garland is this:

SB 2 slashed the amount of additional property tax revenue a city can collect each year without holding an election — from a previous 8% growth cap down to only 3.5% (the new “voter-approval tax rate” threshold).

This 3.5% limit is very tight for a fast-growing city like ours. Here’s why it creates real pressure on the operations & maintenance (O&M) portion of your tax rate:

1. Property values in Garland keep rising quickly (usually 6–12%+ per year during strong market years)

2. But the city is allowed to grow total tax revenue only 3.5% without voter approval

3. That means the city must lower the overall tax rate almost every year just to stay under the 3.5% revenue growth cap

4. Most of that annual rate reduction has to come from the O&M rate → The debt service rate is basically locked in by the bond repayment schedule (we can’t arbitrarily lower it much until bonds are paid off or refinanced). → So when the total rate has to come down… the O&M rate almost always takes the biggest hit.

Bottom line in plain English:
Even if we provide exactly the same police patrols, fire response, street repairs, trash collection, parks maintenance, code enforcement, and library hours as the year before, rising property values force the O&M tax rate downward every year — just to keep total revenue growth at or below 3.5%.

(Slide from the January 10, 2026 Work Session. Notice the compression of the O&M Rate due to SB 2)

Over time this creates a structural squeeze:

• Costs keep going up (employee pay & benefits, fuel, insurance, equipment, construction materials — all rising faster than 3.5%)

• Allowed revenue growth is capped very low

• The O&M rate is forced steadily downward

• That leaves less and less money for day-to-day operations unless something changes

A Simple Numerical Example of the Squeeze

Let’s use round, easy-to-follow numbers based on Garland’s recent trends to show how SB 2 creates ongoing pressure on the O&M rate. Note these numbers may not be the exact numbers in our budget, but are close enough to illustrate the point.

Assume for a given year:

• Total taxable value last year: $25 billion

• Taxable value this year: $26.5 billion (a 6% increase — common in recent strong years)

• Last year’s total tax rate: $0.69 per $100 valuation

• Last year’s revenue collected: $25B × $0.69 / 100 = $172.5 million

• Under SB 2, without voter approval, revenue can grow by only 3.5% → Allowed revenue this year: $172.5M × 1.035 = ~$178.5 million

To stay under the 3.5% cap (no election needed), the city must set a new total tax rate that collects no more than $178.5 million from the higher $26.5B value base.

Calculation:
New maximum total tax rate = $178.5M ÷ ($26.5B / 100) ≈ $0.674 per $100

That’s a drop of about $0.016 (1.6 cents) from last year’s $0.69 rate — just to keep revenue growth at 3.5%.

Now the key part: Where does that rate cut come from?

• Debt service (I&S) rate is mostly fixed by bond repayment schedules. We can’t easily cut it much year-to-year without refinancing or paying off bonds early (which is good, but doesn’t happen every year). Suppose debt service stays roughly flat at ~$0.289.

• That means almost the entire 1.6-cent reduction must come from the O&M rate. → Last year’s O&M: ~$0.401 → This year’s O&M: ~$0.385 (after the squeeze)

Result in plain terms:

• Property values rose 6%, so without any rate cut, revenue would have jumped to ~$183 million (over the 3.5% cap).

• To comply with SB 2, we lower the total rate to $0.674 → revenue ~$178.5M (3.5% growth).

• But costs for police, fire, streets, parks, etc., didn’t drop—they rose (inflation, wages, fuel, etc., often 4-6%+).

• Yet the O&M portion of the rate fell from $0.401 to $0.385 → less buying power for day-to-day services unless we find other revenue or cut back.

Over multiple years, this compounds:
If values grow 6% annually but we can only grow revenue 3.5%, the O&M rate gets trimmed by roughly 2-3 cents every few years. After 5-10 years, that adds up to meaningful pressure—potentially forcing service reductions, hiring freezes, or deferred maintenance—unless we reallocate when debt service room opens up.

This isn’t hypothetical; it’s why many Texas cities, including Garland, have seen gradual O&M rate erosion even as we’ve held or slightly lowered the total rate in recent years.

Introducing the “Swap and Drop”

In the November 2026 election, you’ll have the opportunity to vote on a carefully crafted proposal to:

• Swap a portion of the tax rate from debt service (which we can now reduce responsibly) over to operations and maintenance.

• Drop the overall tax rate slightly, delivering meaningful relief to property owners.

This reallocation isn’t about raising your total property taxes—it’s about moving funds where they’re needed most for day-to-day services while taking advantage of our strong financial position to lower the combined rate you actually pay.

Important note on the ballot language: Texas state law (shaped by SB2 and related property tax rules) requires specific wording on the ballot for any election where the proposed total tax rate exceeds the state’s voter-approval tax rate threshold (the 3.5% revenue growth cap without election). Because we’re shifting some rate from debt service to O&M to better fund essential operations, the O&M component will increase relative to what it would otherwise be under the strict cap. As a result, the ballot proposition will include language stating that this is a “tax increase” per state requirements—even though the overall tax rate (debt service + O&M combined) will actually decrease, putting real savings back in your pocket.

This mandatory phrasing is designed for transparency and to trigger voter approval for exceeding the automatic cap. It doesn’t reflect a net tax hike for Garland residents; instead, it’s the legal mechanism that allows us to protect core services like public safety, street maintenance, parks, and libraries amid rising costs and the tight 3.5% limit—all while still delivering the promised “drop” in your total rate.

For example, if approved, we could reduce the debt service rate (freeing up capacity from paid-down bonds) while modestly boosting O&M just enough to cover essential needs, resulting in a net lower total rate overall. This keeps our budget balanced, avoids painful service cuts, and fully complies with state law.

Why This Matters for Garland’s Future

Garland is thriving—we’re attracting new businesses, families are moving here for our excellent schools and amenities, and our economy is strong. But to keep up with growth, we need flexibility in how we allocate our resources. The “Swap and Drop” does exactly that, all while lowering the overall burden on taxpayers. If approved, it will help us maintain the progress we’ve made together.

Your Voice Counts

I encourage you to learn more about this election as information becomes available. Soon we will have more information about the election on the city’s website, at upcoming town halls, or you may reach out to me directly with questions. And mark your calendars for November 3, 2026: Vote “YES” on the tax rate election to support the “Swap and Drop.”

Together, we’re building a brighter Garland. Thank you for your continued trust and partnership.

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Talking about dropping the tax rate, this song immediately came to mind— “Drop it Like It’s Hot” by Snoop Dogg featuring Pharrell Williams.