Work Session Notes - August 4, 2025
And I believe that I might find it Maybe I'll find it in you
We continue the work of City Council with another packed Work Session including an update from the Garland Housing Finance Corporation, a continuing discussion of a possible new healthcare system in Garland, and a possible economic development agreement for a new Downtown restaurant.
I always welcome your comments on any Work Session item. You can reach me at mayor@garlandtx.gov. As always, my commentary is in bold italics.
PUBLIC COMMENTS ON WORK SESSION ITEMS
CONSIDER THE CONSENT AGENDA
WRITTEN BRIEFINGS
1. Approve a Resolution Supporting the Foreign-Trade Zone Designation for Nobilia North America Inc.
Council is requested to approve a Resolution supporting the Foreign-Trade Zone (FTZ) designation for Nobilia North America Inc. within the city limits, as authorized under Texas Business & Commerce Code Chapter 681. Council was briefed on this item at the July 21, 2025 Work Session.
Unless otherwise directed by Council, this item will be considered for formal consideration at the August 19, 2025 Regular Meeting.
Continuing on the item from the July 21st Work Session, this item formalizes the agreement with nobilia North America, Inc. for a Foreign-Trade Zone to support their operations.
nobilia North America Inc. is the North American division of nobilia (stylized as lowercase) , the world’s largest manufacturer of European kitchen furniture. The company specializes in European-engineered, modular cabinetry systems designed for kitchens, bathrooms, closets, living rooms, and utility spaces. The company operates a southern‑central warehouse in Lancaster, TX, and the Garland location will help support their growing regional presence.
2. Amendment to the Note Purchase Agreement
Council is requested to consider an amendment to the Note Purchase Agreement to extend it for five (5) additional years. Unless otherwise directed by Council, this item will be considered for formal consideration at the August 19, 2025 Regular Meeting.
Garland Power & Light (GP&L) is requesting the City Council’s approval to extend and amend its Electric Utility Commercial Paper (CP) Program, which serves as a short-term financing tool for funding capital improvement projects. The current agreement is a note purchase agreement with Wells Fargo that provides up to $150 million in borrowing capacity and is set to expire on August 29, 2025.
Commercial paper is a type of short-term debt instrument issued by companies, including municipalities and utilities, to raise funds for immediate needs such as operating expenses or project costs. It typically matures within a few days to a year and is considered a lower-cost alternative to issuing long-term bonds. In this context, GP&L uses commercial paper to bridge the financing gap for capital projects until longer-term financing can be arranged, helping to manage cash flow and project timelines more efficiently.
To continue this financing program, GP&L sought competitive bids from six major national banks. Wells Fargo offered the most cost-effective terms. Instead of creating a new agreement, both parties opted to amend the existing one, as this approach is more efficient and only requires updating the pricing terms. GP&L staff now seeks Council’s concurrence to move forward with amending and extending the agreement for an additional five years. If supported, the item will be brought forward for formal approval at the August 19th Regular Council Meeting.
3. Grant Disbursement Agreement - Garland Housing Finance Corporation
Council is requested to consider the grant disbursement agreement from Garland Housing Finance Corporation. Unless otherwise directed by Council, this item will be scheduled for formal consideration at the August 19, 2025 Regular Meeting.
The Garland Housing Finance Corporation has partnered with the City of Garland for several years to provide funds for residential property improvements. With this agreement, GHFC will commit up to $325,000 in funding through 2027 to support residential improvements within the Freeman Heights Neighborhood.
The program provides four categories of assistance for eligible homeowners:
Gap Financing for Sidewalk Replacement – Offers matching grants based on specific eligibility factors (e.g., CDBG Block Group, Homestead exemptions, senior status), with the remaining cost funded as a grant by GHFC.
Landscape Challenge Grant – Offers up to $500 in reimbursement for landscaping materials when at least five homes on a block participate.
Fence Replacement Assistance – Covers up to 100% of boundary fence replacement costs and 75% of interior fence costs, following City guidelines and within a $7,500 cap.
Façade/Exterior Improvement Rebate Program – Provides a 75% rebate (up to $7,500) for a range of improvements such as roofing, painting, siding, porches, garages, and other visible exterior upgrades. Homeowners must cover the remaining 25% and provide documentation and photos for reimbursement.
The City is responsible for intake, eligibility screening, grant processing, recordkeeping, and quarterly reporting to GHFC. It must retain all records for at least five years and ensure compliance with audits and nondiscrimination policies. The agreement also outlines rules regarding transparency under the Texas Public Information Act (TPIA) and confidentiality of participant data.
The GHFC’s responsibilities include disbursing funds in three phases: $125,000 upon agreement execution and two additional $100,000 installments in late 2025 and early 2026, regardless of prior spending. GHFC also agrees to cooperate in helping the City secure additional funding from other sources if needed.
The agreement has a term through December 31, 2027, with unspent funds carried forward quarterly or reverted to GHFC at the end of the term. It allows for termination for nonperformance or convenience, and includes standard legal provisions regarding amendments, severability, governing law, and the relationship of the parties.
4. Workers' Compensation Cash Flow Plan Claim Reimbursement
Council is requested to consider the approval of the June 2025 workers’ compensation cash flow claims reimbursement payment to TPS in the amount of $358,336.92, in accordance with the Interlocal Agreement. Unless otherwise directed by Council, this item will be scheduled for formal consideration at the August 5, 2025 Regular Meeting.
The City of Garland partners with Texas Political Subdivisions (TPS), which acts as the third-party administrator for the Workers’ Compensation Joint Self-Insurance Fund (referred to as "the Fund"). TPS manages workers’ compensation claims on behalf of the City, ensuring that employee injury claims are processed and paid efficiently.
Texas Political Subdivisions Joint Self-Insurance Fund (TPS) is a nonprofit risk pool established to serve local governments in Texas, including cities, counties, school districts, and other political subdivisions. Formed under the Texas Interlocal Cooperation Act, TPS provides workers’ compensation coverage and claims administration services through self-insurance structures. Instead of purchasing traditional insurance, member entities like the City of Garland pool resources and share risks through TPS, which allows for cost savings, tailored coverage, and efficient claims processing. As a third-party administrator, TPS handles claim intake, processing, medical bill review, and compliance oversight on behalf of its members.
Under the terms of Section 4 of the Fund’s Interlocal Agreement Cash Flow Plan, the City is required to remit a monthly reimbursement to TPS that covers the actual claims administration fees and other related charges paid out by the Fund during the previous month. These payments are made via wire transfer.
For the month of June 2025, TPS reported a total claims payout of $358,336.92, which is significantly higher than average. Roughly 44% of that total was associated with a single complex claim, which prompted additional review. Although such monthly payments generally fall within the delegated approval authority of the Managing Director and City Manager, due to the unusually high amount and the complexity of the claim, Risk Management staff conducted a thorough review to ensure billing accuracy and confirm that no duplicate charges were included.
VERBAL BRIEFINGS
5. 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
After presenting a promise of funding our Where the Heart Is Program earlier in the evening, Executive Director and former District 1 Councilmember David Gibbons returns to provide the GHFC’s annual report to council.
The Garland Housing Finance Corporation is a nonprofit public entity established on December 10, 1990, under Chapter 394 of the Texas Local Government Code, to support affordable housing and community development in Garland, Texas. Although it is an independent corporation, GHFC operates as a component unit of the City of Garland, with its board members appointed by the City Council.
GHFC’s mission is to expand affordable housing opportunities, offering services such as down payment assistance, Mortgage Credit Certificates (MCCs), neighborhood improvement programs, senior and multifamily housing initiatives, issuance of housing bonds, and direct ownership or sponsorship of affordable housing projects.
Several programs funding by GHFC include:
Down Payment & Closing Cost Assistance: GHFC provides eligible first‑time homebuyers in Garland with up to $15,000 in assistance—typically structured as a $10,000 non-forgivable second lien (repayable) and a $5,000 grant—along with access to MCCs that let homeowners claim up to 30% of annual mortgage interest (up to $2,000/year) as a tax credit.
Neighborhood & Housing Development: GHFC supports a range of neighborhood award programs, senior and multifamily housing efforts, and has played a key role in projects like “Primrose at Park Place,” a 200+ unit senior community sponsored in the mid‑2000s, and other multi-unit developments in partnership with local builders.
Scholarships & Community Grants: In addition to housing programs, GHFC funds local initiatives such as scholarships for Garland ISD students and grants to nonprofit partners like the Salvation Army for housing-related support.
6. Presentation of the FY 2025-26 Proposed Annual Operating Budget
The City Manager will present the FY 2025-26 Proposed Budget document to City Council.
Following, staff will provide a brief overview of the City Manager's Proposed Budget.
Presenter: Judson Rex, City Manager, Matthew Watson, Managing Director-Financial Services, Allyson Bell Steadman, Director of Budget & Research
Tomorrow night officially kicks off budget season as City Manager Jud Rex, Managing Director of Financial Services Matt Watson, and Director of Budget & Research Allyson Bell Steadman formally presents the FY 2025-2026 Operating Budget to the City Council. The Council already got a preview of the budget during its Special Work Session June 21. This year’s budget is mainly a status quo budget with no big changes from the previous year’s spending. Property tax and sales tax revenue is starting to level out after years of post-pandemic growth and the effects of SB 2 from 2019 limits our ability to grow the Operating & Maintenance tax rate by 3.5%.
This means that the City has already foregone over $30 million annually in property tax revenue since SB 2 was enacted in 2019. This low rate of increase means that in the future (likely November 2026) we will hold a “tax rate swap” that will transfer some of the tax rate from the debt service rate to the O&M rate. This will allow us to provide more funding towards operations of the city and away from paying off debt.
7. Request for Development Assistance from Lockwood Distilling Company
Council is requested to consider approving a Development Agreement for Lockwood Distilling Company, which proposes to lease and renovate a 5,000 sf space at 532 Main Street. The project aims to recruit a destination restaurant and contribute to Garland's economic growth. Unless otherwise directed by the Council, this item will be scheduled for formal consideration at the August 19, 2025 Regular Meeting.
Presenter: Ayako Schuster, Economic Development Director
As we continue to reinvest into the growth of Downtown Garland, the city is looking to form a partnership with Lockwood Distilling to bring a location to Garland. This agreement hopes to provide financial incentives for Lockwood Distilling’s renovation and commercial activation of the former Infinity Arcade location.
Key Components of the Agreement:
Incentive Structure
The City of Garland agrees to provide up to $350,000 in total incentives:
Renovation Reimbursement – A one-time payment of up to $150,000 for verified costs associated with renovating and building out the property.
Sales Tax Rebate – Up to $200,000 reimbursed over three years based on actual state sales tax paid on food and beverage sales, contingent on the business achieving:
$700,000 in taxable sales in Year 1
$800,000 in Year 2
$900,000 in Year 3
These rebates are tied to verified documentation submitted to the City and are capped at the specified amount regardless of total tax paid.
Developer Responsibilities
Lockwood Distilling is required to:
Complete the renovation and receive a Certificate of Occupancy no later than March 31, 2026.
Submit lease documentation demonstrating a minimum 10-year term with a renewal option.
Maintain the historic exterior of the property per preservation standards.
Allow the City access to sales tax data through a signed waiver and quarterly sales tax reporting.
Contribute $5,000 annually in in-kind food and beverage services for civic events on Garland’s Downtown Square for five years after opening.
Operate transparently and lawfully, refraining from employing undocumented workers or engaging in any form of collusion.
City Responsibilities
The City commits to:
Reimbursing qualified renovation costs up to $150,000 within 60 days of submission and approval.
Providing annual sales tax rebates (if performance thresholds are met), not to exceed $200,000 in total over three years.
Making payments only from TIF District No. 1 funds and actual sales tax revenue collected from Lockwood’s operations—no general funds will be used.
Reclaiming prorated incentive funds if the business fails to comply or ceases operations within 10 years, using a sliding scale of refund amounts.
How does this agreement compare to others in place for Downtown? It is comparable to the incentive given to Fortunate Son, although the total incentive is smaller for the smaller square footage.
Sales projections for the new location are provided below:
8. Communications Master Plan Overview
Staff will present Council with an executive summary of the Communications Master Plan that has been developed over the past year. The plan outlines actionable steps to refine and enhance communication channels, establish a more defined city brand identity, and deliver targeted information to the appropriate audiences with key performance indicators for measuring success.
Presenter: Tiffany Veno, Chief Communications Officer
The recently completed Communications Master Plan outlines several strategic improvements to enhance how the City engages its residents, strengthens its brand presence, and ensures inclusive, accessible, and streamlined communication. The recommendations are grouped into three key areas: Optimization, Content Strategy, and Partnerships, each addressing current challenges and offering actionable solutions.
1. Optimization: Streamlining Communication Channels and Digital Experience
Finding: The City’s existing communication efforts are fragmented across multiple platforms and channels, which causes user frustration and weakens brand consistency.
Recommendations:
Consolidate Communication Channels: Eliminate or merge inactive, low-performing, or duplicative social media pages and niche content streams to reduce redundancy and confusion.
Improve Website Functionality: Address technical issues, redesign the interface to align with modern user expectations, simplify site navigation, and prioritize essential content.
Apply SEO Best Practices: Ensure Garland’s digital content is discoverable and performs well in search engines to enhance visibility and user access.
2. Content Strategy: Sharpening Messaging and Brand Alignment
Finding: The City lacks a consistent approach for delivering messages that resonate with its diverse community, creating a gap in both clarity and impact.
Recommendations:
Establish Brand and Content Guidelines: Develop a unified messaging framework rooted in Garland’s values of diversity, community, authenticity, and transparency. Create audience-specific profiles and a brand message map to tailor outreach.
Audit and Align Messaging: Regularly review City communications to ensure consistency, offer staff training, and establish accountability measures.
Define Channel Strategy: Build a thoughtful distribution plan for digital content, including platform-specific tactics, cross-posting strategies, and paid targeted advertising.
Prioritize Key Content: Ensure that high-priority content is easy to find and clearly presented across platforms.
3. Partnerships: Enhancing Collaboration and Community Engagement
Finding: Successful execution of the Communications Master Plan requires both internal coordination and stronger external relationships.
Recommendations:
Evolve Internal Workflow: Clearly define the roles and expectations of City communicators, and implement a monthly collaborative planning meeting to align efforts and share content.
Leverage Community Ambassadors: Partner with local influencers and trusted voices to amplify City messaging and expand reach through grassroots, authentic channels.
Enhance Multilingual Support: Improve the availability and visibility of translation services, ensuring that content is translated accurately and culturally appropriately to serve non-English-speaking residents.
9. Update on MD Health Pathways Program
Staff will brief City Council on the MD Health Pathways program, provide an update on contract negotiations, and seek direction on next steps for the program. This item was requested by Deputy Mayor Pro Tem Ott and seconded by Mayor Hedrick at the March 3, 2025 Work Session.
Presenter: Phillip Urrutia, Assistant City Manager
MD Health Pathways returns with an update on contract negotiations to form a citywide telehealth program through a partnership with Pathways Physicians Texas (PPTX), aimed at expanding residents’ access to affordable virtual healthcare. Funded through an optional monthly fee on utility bills (starting at $6), the program provides participating households and eligible City employees with unlimited access to licensed medical professionals for non-emergency consultations, including mental health support, prescriptions, and referrals. Residents may opt out at any time.
The City will handle program administration, billing, and outreach, while PPTX will deliver services and fund startup support, software, and community engagement positions. Strict privacy protections are in place—no personal health data is shared with the City, and all information is handled in compliance with HIPAA regulations. The agreement includes accountability measures such as satisfaction benchmarks, quality audits, and annual performance reporting.
I am interested in hearing from you whether you think the $6 monthly fee is valuable to you or not, especially with being automatically signed up for the program and having to opt-out if you do not want it rather than having to opt-in if you do.
10. Public Safety Committee Report
Councilmember Ott, Chair of the Public Safety Committee, and staff will provide a committee report on the following item: Update on Operational Readiness of the Gang and SWAT Units from the Police Department. This item was referred to committee by Councilmember Dutton, with a second from Mayor Pro Tem Lucht, at the May 19, 2025, Work Session. The item was discussed at the June 25, 2025, Public Safety Committee meeting.
Presenter: Christopher Ott, Deputy Mayor Pro Tem, Mitch Bates, Deputy City Manager
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.
11. Citywide Appointment
• Christie Fuentes, Animal Services Advisory Committee
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:
12. 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 Garland Avenue and Wilson Street, and with which the City is conducting economic development negotiations (551.087); and attorney/client communications related to the same. (551.071).
13. 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 downtown district of the City, and with which the City is conducting economic development negotiations (551.087), including the possibility of the sale of real property (551.072), and attorney/client communications related to the same. (551.071).
14. 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 downtown district, and with which the City is conducting economic development negotiations (551.087), including the possibility of the lease of real property (551.072), and attorney/client communications related to the same. (551.071).
15. Attorney/client matters concerning privileged and unprivileged client information related to regulation of short-term rentals. (551.071).
16. Personnel matters related to the employment, evaluation, or duties of the City Manager. (551.074).
AJOURN
With GHFC providing funding for our Where the Heart Is program, here is “Where the Heart Is” by Brett Eldredge.