On the agenda: Rockwall 08/27/26 — Flock camera (Aug 27)

MINUTES
ROCKWALL

CITY COUNCIL SPECIAL MEETING

AND BUDGET WORK SESSION

Thursday, August 27, 2026 - 5: 00 PM
City Hall Council

Chambers -

385 S. Goliad St., Rockwall, TX 75087

Call Public Meeting to Order

Mayor McCallum called the meeting to order at 5: 01 p. m. Present were Mayor Tim McCallum, Mayor Pro
Tem Mark Moeller, and Councilmembers John Hagaman, Melba Jeffus, Richard Henson, Dennis Lewis and

Anna Campbell. Also present were City Manager Mary Smith and Assistant City Manager Joey Boyd.

II.

Invocation

and Pledge

of Allegiance -

Councilmember

Jeffus

Councilmember Jeffus delivered the invocation and led the Pledge of Allegiance.
III.

Open

Forum

The mayor explained how Open Forum is conducted, asking if anyone would like to come forth and speak at
this time.

Jean Allen

711 Sherman Street
Rockwall,

TX 75087

Ms. Allen shared that it' s her understanding there are plans for a pavilion to be constructed on the property

located on the corner of Ross and Davy Crockett across from the Gloria Williams Park. She expressed that it
is too hot in the summer to utilize a pavilion, and it is too cold in the winter. She explained that a

community building, similar to that which is at Harry Myers Park, would be more conducive to the needs of
the Southside Neighborhood. It would allow them to hold meetings and small gatherings. She asked the
Council to consider a community building instead of a pavilion.
Georgia

Brown

508 Dickey Street
Rockwall,

TX 75087

Ms. Brown came forth and echoed Ms. Allen' s comments, expressing a desire for a community center
instead of a pavilion in the Southside Neighborhood, and giving indication that the late Sam Buffington
wanted a community center as well. She shared that the neighborhood really needs a gathering place that

has air conditioning to do things that cannot be done in a pavilion. She believes the community center at
Harry Myers Park is about the size community center they would need.
Mike Caffey
311 S. Fannin Street
Rockwall,

TX 75087

08/ 27/ 26 Special City Council / Budget Work Session Mtg.
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7

Mr. Caffey came forth and thanked the mayor and council for their service to the city. He then spoke about
the proposed city budget. He expressed that our city budget is the leanest around, including when
compared to our city' s seven, comparable, ' market' cities. Our ' market cities' have a ratio of employees to
population of about 8. 77 employees per 1, 000 residents; whereas our own city has about 6. 33 employees
per 1, 000 residents.
get

That equates to about 136 employee

to that level, which — of course — we

fund

was $

34

million,

decreased significantly

and

we

since

are

at

positions

that would need to be hired in order to

are not asking for. He went on to share that in 2017, the general

about $

54 million,

that time. He indicated

although

our employee

to population

ratio

has

this is not just a fire or police issue — it is citywide, and

our city administration and our departmental directors are pretty consistent in being the lowest paid,
comparatively speaking, in the area. He pointed out that the tax rate could have been increased a little bit —
by about a penny — last year, and — if that had been done — the city may not even have needed to look at
raising taxes this year, but we didn' t do that. He indicated that just slightly raising the rate could result in
which — he believes all will agree — is the number one priority to
pay raises to public safety employees,
citizens. He indicated that he has not agreed with prior councils lowering the tax rate to extreme levels, and
he acknowledged that their having done so has now put this current council in a tough position. However,
continuing to not address the issue is a mentality that he personally does not understand. He asked Council
to consider these things tonight during the budget work session.
Radi Tawfiq
117 Newson

Drive

Royse City, TX

Mr. Tawfiq came forth and spoke in opposition of Flock cameras.
There being no one else wishing to speak, the mayor then closed Open Forum.
IV.

Consent

1.

Agenda

Consider

approval

of an ordinance

Enterprise Zone Program

authorizing

the City of Rockwall' s participation

pursuant to the TX Enterprise

in the TX

Zone Act, Ch. 2303 of the TX Government

Code; providing tax incentives, designating the City Manager as liaison, nominating Channell
Commercial

Corporation

to the Office

of the

Governor

Economic

Development

and

Tourism

through the Economic Development Bank as a TX Enterprise Project, and take any action
necessary. ( 2nd reading)
2.

Consider

awarding

improvement

the

project,

contract

to Apex

Landscape &

in

amount

of $

the

Irrigation

1, 257, 004. 03,

to

LLC,

for the

FM

740

be fully funded

landscape

by a TXDOT

reimbursable grant, including authorizing the City Manager to execute the associated contract and
purchase order, and take any action necessary.
3.

Consider authorizing the City Manager to execute an Advanced Funding Agreement ( AFA) with the
State of Texas Dept. of Transportation ( TXDOT) for the construction
from

Laguna

Drive

to

Marina

Drive,

with

TXDOT

contributing $

of the Village

Drive Bridge

12, 000, 000, and take any action

necessary.
Mayor

McCallum

moved

to approve the Consent

the motion. The ordinance

Agenda (#

s

1, 2, and 3).

Mayor Pro Tem Moeller seconded

caption was read as follows:

08/ 27/ 26 Special City Council / Budget Work Session Mtg.
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CITY OF ROCKWALL,
ORDINANCE

TEXAS

NO. 26- 43

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ROCKWALL,
PARTICIPATION

CITY' S

THE

AUTHORIZING

TEXAS,

IN

THE

TEXAS

ENTERPRISE ZONE PROGRAM PURSUANT TO THE TEXAS ENTERPRISE
CHAPTER

ACT,

ZONE

TEXAS

2303,

GOVERNMENT

CODE ("

ACT"),

PROVIDING TAX INCENTIVES, DESIGNATING THE CITY MANAGER AS A
LIAISON;

CHANNELL

NOMINATING
TO

THE

DEVELOPMENT

AND

TOURISM ("

COMMERCIAL

CORPORATION
ECONOMIC

GOVERNOR

THE

THE

THROUGH

ECONOMIC

AS A TEXAS ENTERPRISE
AND PROVIDING FOR AN EFFECTIVE DATE.

PROJECT

OOGEDT")

BANK")

BANK ("

DEVELOPMENT
PROJECT");

OF

OFFICE

CHANNELL")

The motion passed by a vote of 7 ayes to 0 nays.
Smith

Mrs.

shared

Agenda

that — related to the Consent

items -

the City is the recipient of a grant to redo

the medians along Ridge Road, and the city does not have to pay a local match. The project will start very
soon.

In

the DGNO

addition,

railroad

crossing —

the city has put money towards design of the project, and

Rockwall County has contributed $ 2 million towards the project. The city has secured $ 12 million in funding
via the NCTCOG ( North Central TX Council of Governments) and RTC ( Regional Transportation Council). This
is not a project that will need to wait for funding, rather, the funds will already be on hand, and the city will
be ready to

move

forward

the project very

with

soon.

The mayor thanked staff and others for their work

and support of these projects. He also thanked County Commissioner Dana Macalik for the contribution of
2 million in county funding for the railroad bridge.

Councilmember

Lewis articulated that he would love to respond to the comments made during Open

but — by law — he cannot

Forum,

do so. However, he can comment on the item related to Village Drive and

the railroad crossing. That funding originally came about because of David Sweet. Back when he was County
Judge and was on the board at the NCTCOG, he spearheaded efforts to get that money for that railroad

crossing bridge. So he wanted to ensure, with him having been the main driver, that he received due credit.
V.

Work Session
1.

Hold work session to discuss and consider the proposed City of Rockwall 2026 tax rate and budget
for the upcoming 2027 fiscal year.
Taxpayer

Impact

Statement -

For a median -valued homestead property, the following table

shows a property tax bill comparison under various scenarios ( per $ 100 dollars of assessed value).
For more information on the budget and/ or tax rate, visit www. rockwall. com.

Current

Rate

No New Revenue

Rate

Proposed

Year

2025

2026

2026

al Year

FY2026

FY2027

FY2027

rage Homestead Value
Rate
imated

Taxes

484, 079

484, 079

2575

258007

258007

1, 217

1, 248

1, 248

472, 950

Rate

Mrs. Smith, City Manager began by saying that this was the hardest budget proposal she has ever had to
work on. The only very slight increase in assessed property values was solely due to new value on the
ground, as there was no increase in existing values. She explained that department directors were told to
ask

for whatever

they truly

need,

but they likely

won' t get

it, and — no

new positions are included in the

08/ 27/ 26 Special City Council / Budget Work Session Mtg.
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budget proposal, although she is aware that they are needed. Our HR Department has, as it does every year,
taken a look at all of our positions within the city and compared them to the same positions in our seven,
identified

market cities.

She

went

on

to share

that the city' s policy has

been

to try and stay

within

5% of the

average maximum salary being paid for each position across those market cities. She indicated she was able
to include merit increases and ' top out' pay funding in the budget proposal; however, she was not able to
find any available funding to address market adjustments.
There

being

no

questions

raised

by

Council

concerning

Mrs.

compensation,

Smith

went

on

to

share

information about the city experiencing increased costs for things such as insurance coverage as well as
healthcare - related expenses for the city.
The

city has

had

2. 42%

a

increase

in certified

this

values

year.

There

has

been

a .

55%

reduction in existing

values and $ 321 million in new value. She went on to explain that a penny on the tax rate generates
925, 000.
voter

about

She reminded Council of the current rate and the no new revenue rates and also explained the
She indicated

rate ( VAR).

approval

that bond debt was just issued,

and she does not anticipate

any

additional bond debt issuance for about the next twenty- four months as the city works through the

upcoming projects it has planned, including reconstruction of Lakeshore Drive.
Mrs. Smith explained that if the no new revenue rate is what Council moves forward with, a public hearing
on the tax rate is not required. However, by City Charter, the city holds a public hearing on the proposed
budget. Public hearings would be held on September 8 with adoption slated for September 21. She went on

to explain how financing works relative to The Harbor District and how revenues generated within the Tax
Increment Financing District ( TIF) go to pay for maintenance of the public space and associated debt. Sales
tax

increases

are

at

almost

2. 5%,

well

the

under

projected

amount.

6%

She

mentioned

that

the SAFER

firefighters) grant will end March 9, 2027, so the revenues received to fund those firefighter positions will

no longer be coming in after that date. However, the staff and associated expenses will remain and will be
funded from the General Fund moving forward.

Discussion ensued regarding sales tax revenues, associated projections and potential impacts of IKEA

recently opening. Mrs. Smith indicated that the impacts of IKEA, so far, are not yet known, as she' s only
seen concrete numbers from the 20 days they were open in May. She' s not yet received the detailed sales
for June from

tax

numbers

1%

of the sales tax.

Councilmember
staffing.

including

Campbell

the State ( re: IKEA). The rebate the city

asked for clarification

will

owe

IKEA in December

will

be 40%

on several things related to the Fire Department

of

and

Discussion took place regarding staffing the department' s strategic plan and grant funding,
the

SAFER

grant.

Indication

was

given

that,

even

though

the

funding

received

under

the

prior/ existing SAFER grant will end this Spring, our Fire Department can reapply for additional SAFER grants
as well as equipment - related grants moving forward. The mayor expressed

the need to ensure that the

financial impacts the SAFER grant has on future budgets must always be considered and factored in. He also

stressed the need to do our very best to accurately project sales tax revenues. Councilmember Campbell
went on to express concerns regarding public safety. She stressed the need to ensure adequate staffing and

equipment as well as making sure public safety remains a top priority, on both the Fire and Police side.
Councilmember Lewis stressed that our number one priority here in Rockwall is public safety. He went on to
point out new retail establishments that are being built elsewhere in nearby cities such as Royse City and
Forney, and that is having a financial impact on our own city' s sales tax revenues.
Mrs. Smith shared that the Police Chief asked for two new patrol officers, two new detectives and one new
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Budget Work Session Mtg.
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dispatcher, but those requests were not funded in the budget. The budget includes increases in jail -related
costs, some software related expenses, new cell phones, and some radio replacements. The chief requested
ten new patrol vehicles, and seven were included in the budget. Following Mrs. Smith' s overview,

Councilmember Campbell asked what impact not funding the additional staff positions will have on
response

times.

Police

Chief

indicated

Fowler

that call volume

continues

to increase,

and — yes — staffing

does impact response times. He explained the various costs associated with hiring and training new officers,
and he spoke on overtime related expenses.
Mrs.

Smith

then

briefed

Council

on

the

Improvement

Neighborhood

Services (

Code

Enforcement)

Department and Building Inspections. She indicated we used to do about 900 building permits annually, and
now we have dropped down to about 250 to 300 permits per year more recently.

Mrs. Smith and Parks Director Travis Sales indicated that our staff maintains 400-500 developed acres of
parkland and about 1200 total acres. Battery operated mowers have been included in this budget, and
maintenance at The Harbor has also been included.

Included are new sand spreaders to treat icy roads. The mayor commented how TXDOT indicated during the
ice storm that they had to focus on other larger state roads and that the state- owned roadways within our

city would have to be sanded by us if we wanted them done.

Regarding the Water/ Sewer Fund, Mrs. Smith shared that our costs paid to the N. TX Municipal Water
District are going up significantly. She stressed that these costs will only continue to increase more and
more in the coming years. She pointed out that costs for wastewater treatment have increased as well. The
budget

reflects an

anticipated

11%

increase

in

water

costs and a

15%

increase in sewer costs. She pointed

out debt service monies that are included in this budget proposal and what that money covers, such as

pump stations, water tower, etc. Upgrades and repairs are needed at wastewater facilities all over the city.
Two of the four requested upgrades are reflected in the budget proposal.

She shared that spray ground upgrades were not able to be included in the budget proposal. Discussion
ensued related to the Lofland Park and the neighborhood

request for better train -themed playground

equipment. Mrs. Smith indicated staff will further meet with neighborhood representatives and indicated
there will be collaboration with the city' s ART Commission on the train project.

There was discussion regarding the fire department providing fire protection services to unincorporated

portions of the county and associated costs. Indication was given that there is definitely a discrepancy
between what the city' s actual costs are for providing those services to Rockwall County compared to what
the County actually pays the city for those services. The mayor wants to work to address this concern.
Mrs. Smith

also shared

that Republic

Waste

annually

gives

a$

10, 000 grant to the city, and those funds will

go towards the downtown area. She went on to brief Council on expenses that have been reflected in the
budget proposal for utilization of seized funds, which currently totals about $ 800, 000.

Mrs. Smith went on to share brief details regarding the historic church the city purchased in the downtown

area. The city will continue to receive rental funding from tenants for the next two years. Those funds have

allowed the city to do some needed repairs on the historic church. Fees are included in the budget to hire a
consultant to assess the current conditions and identify the improvements needed for the historic church.
The mayor and Mrs. Smith indicated that after the consultant' s work is completed, the city will utilize Hotel
Occupancy Tax Funding ( HOT) towards renovation of the facility.
Mrs. Smith went on to briefly comment on the city' s health - insurance and workers' comp related expenses.
08/ 27/ 26 Special City Council / Budget Work Session Mtg.
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She said that we have experienced

a really good year as far as workers comp claims are concerned, so she

has put safety incentive pay back into this upcoming year' s budget.
Matt

Wavering,

CEO

of

the

Rockwall

Economic

Development Corporation (

REDO),

then

came

forth

and

briefed Council on the REDC' s budget and annual work plan that are required and have been approved and

put forth by the REDC Board of Directors. Additional capital improvement money has been budgeted for
additional land acquisitions as well as additional infrastructure such as finishing out of the KE Andrews

Parkway and the installation of a four-way traffic signal light. The mayor thanked Mr. Wavering and his
board members for their direction, guidance, support and work. Mr. Wavering then briefed the Council on
management of the REDC' s Tech Park and the associated costs. Councilmember Campbell also thanked Mr.
Wavering and the REDC Board for all of the efforts and hard work.
VI.

Action

1.

Items

Discuss and consider setting a future date for Council consideration of the PROPOSED 2026 Tax
Rate and setting the date and time for the Public Hearing on the Proposed 2026 Tax Rate and the
Proposed

Fiscal Year 2027 Budget,

and take any action

necessary.

Mayor McCallum commented that he can tell this was a difficult budget. He thanked City Manager Smith for
her

efforts

and

for

taking

a

fiscally

conservative

approach,

especially

regarding

sales

tax

revenue

projections. There is no fluff in this budget, and he has never seen a Voter Approval Tax Rate ( VAR) and a
No New Revenue Rate ( NNR) have such a close relationship.

It' s been a long time since we' ve seen

reductions in existing property values in the city, county and state. This is a very conservative budget, and
he doesn' t have a lot of feedback.

Councilmember Lewis thanked the city manager, department directors, and Misty Farris in the Finance
Department. He appreciates everyone operating within the constraints that have presented themselves,

including having cut operational costs mid -year this current fiscal year. He cautioned that ignoring
maintenance ( of equipment) will cost a lot more in the future. He went on to convey that he has opinions
on what the tax rate should be. He knows the City Manager is suggesting a rate of 25. 8007, and the voter
approval rate is what he leans towards the 26. 27 rate, as it would allow for room to do raises and a bit of
maintenance, if possible. That is the rate he proposes that the city manager advertise for the upcoming
public hearing.

Councilmember Campbell echoed that this budget proposal was hard, and she also appreciates the fiscal
conservative approach. She appreciates the city manager and directors running things very conservatively

and very efficiently. She agrees with Councilmember Lewis as far as the rate to be publicized.
Mayor Pro Tem Moeller agreed with Councilmembers Lewis and Campbell. He used to work for, not only

this city, but also for a city to the west of here earlier in his career. And, from experience, he knows that
once you get behind the eight ball, you never get out as far as equipment and services are concerned. The

rubber band can only be stretched so far, and he believes we are at that point. He also agrees that the 26. 27
rate should be the one that gets advertised. Maybe the money can be used for maintenance, but he is more
so concerned about staffing and employee retention and attracting employees when positions need filled.
Mayor Pro Tem Moeller explained to the Council that he has a scheduling conflict on September 21,

requiring him to be out of town. He asked the Council to consider holding a special meeting on September
28.

Councilmember

Lewis

commented

that

we

have

the

very

best city

employees —

beyond solely public safety

employees.

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Mayor McCallum shared that, although it is a tight budget, it is also a monumental budget for many reasons
because

we will make a

huge

investment

in the Fire Department — the construction

of a new Fire Station # 1.

We will do so utilizing General Fund reserves, and the land has already been purchased. We will also put
money into our parks, massive improvements at The Harbor, and more bonds that will go towards needed
improvements.

He shared that

normal

step increases are included in the budget, and the top out pay

merit /

for employees is still in the budget. The market adjustments, however, are not included in the budget
proposal. He indicated that most people in the private industry don' t ever get market adjustments and that

doing so is unique to city government. This is a tight budget, but we will also make some major investments

in our city. He went on to say he is opposed to going up to the Voter Approval Rate and would, instead, like
to see the No New Revenue rate be the advertised rate. It will allow for capital improvements while also
allowing merit increases for employee salaries.

There being no other city council members indicating a desire to speak, Mayor McCallum then made a
motion to advertise September 28, 2026 at 6: 00 p. m. along with the No New Revenue rate, which is
258007, as the proposed maximum rate for the Fiscal Year 2027 budget. Councilmember Jeffus seconded
the motion.

Councilmember Hagaman sought and received clarification regarding the motion. The motion then failed by
a vote of 3 in favor with 4 against ( Hagaman, Moeller, Lewis and Campbell).
Councilmember Lewis then made a motion to advertise the . 2627 tax rate as the maximum tax rate that can

possibly be adopted and to set the date for approval for September 28, 2026 at 6: 00 p. m. Councilmember
Campbell seconded the motion, which passed by a vote of 5 ayes to 2 nays ( McCallum and Henson).
VII.

Adjournment

The mayor adjourned

PASSED

AND

the meeting at 7: 28 p. m.

APPROVED

BY THE

COUNCIL

CITY

OF

THE

CITY

OF

ROCKWALL,

TE

S THIS

8th

DAY

OF

SEPTEMBER, 2026.
s'•%%%%%,,

r

pF

Rp

h
Tim McC4rum,

jUf

Mayor

rI

ATTEST:

Krist

Teag e, City Scary

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