Kennedale staff reports progress on road, water and grant projects; S&P bond rating upgraded to AA

City staff updated the Kennedale City Council Jan. 21 on infrastructure projects, grant status and the city's finances.

City Manager Hall said the Safe Routes to School grant application is effectively complete, the Colas Silbert Road improvements are open to traffic, and Everett Road and Valley Lane projects are finished. He reported that Valley Lane stream-bank stabilization is under FEMA review and that the grant request is for $1,600,000.

Hall said the SCADA upgrade for the water system in coordination with Arlington is nearing completion but staff will likely return to council to discuss a roughly $40,000 ground-protection addition identified in Arlington's review. The city's new ground storage tank is in operation and expected to be fully online by mid to late summer, he said. Little School Road extension and Kennedale Sublette Road realignment remain in early design; internal street rehab projects (New Hope, Swinney High and Needham) are budgeted for the current year and staff continues to seek interlocal assistance with Tarrant County.

Finance staff reported general-fund property-tax collections at roughly 61% of budget and a reserve level noted at 47 percent in the packet, with more cash expected in coming months. Water, sewer and storm revenues are being reported a month behind due to billing-cycle changes tied to Arlington. The city's investment strategy includes four Frost tranches of roughly $4.3 million each; finance staff said those tranches will be drawn down to fund capital work rather than operations as bond expenditures come due.

Mayor Brad Horton reported S&P had upgraded Kennedale's rating from AA-minus (outlook positive) to AA, crediting ongoing tax-base growth and improved reserves under S&P's methodology published Sept. 9, 2024.