Wichita Falls council approves 30% increase at Lake Arrowhead, 10% at Lake Kickapoo after public objections

The Wichita Falls City Council on Feb. 18 approved a resolution to raise annual lease rates for newer-generation leased lots by 30% at Lake Arrowhead and 10% at Lake Kickapoo, with changes set to take effect on the upcoming lease-roll dates (some leases change June 1 and others Sept. 1, staff said).

The increases follow an appraisal study staff cited as completed last year and a council finding that the city may exercise its contractual right to adjust lease rates. City staff recommended the increases and said the 30% raise at Lake Arrowhead would still leave those lots below market rate; the 10% increase would bring Kickapoo lots to market value. Pat (city staff) told the council the current newer-generation leases are roughly $1,000 per year and the change would raise Kickapoo rents to about $1,100–$1,200 and Arrowhead to about $1,300 annually.

Why it matters: The council is the property owner for the two lakes; lease revenue and any eventual sales of leased lots affect the city's general fund and the rights and obligations of lessees. Dozens of lake residents attended and many urged the council not to raise rates now, or to delay until the city completes additional appraisal work and communicates purchase options.

City staff and attorney: Pat, city staff, said the city used a sample of roughly 15 lots across both lakes to establish market values and that a third-party appraisal sample will be available in the coming weeks. City Attorney (name not specified) told the council he reviewed the lease template cited by commenters and said the city has the contractual right to increase rent and, if the council acts, it must wait five years before another increase. The attorney summarized: “The city of Wichita Falls via the lease has the right to increase rent. The only limitation is once we do it, we have to wait five years to do it again.”

Public comment and concerns: Lisa McLaughlin, a Lake Arrowhead lessee, said the item was being considered “four years ahead of schedule” under her lease and asked the council to remove the item from today's agenda. She warned that raising rates now would set “a bad faith precedent” and could prompt lessees to withhold payments. Stacy Darnell, another lake resident, said leaseholders pay lease fees that often exceed their property tax bills and stressed that lake residents receive minimal city services: “I pay more in my $1,000 annual lease fee than I do on my property taxes,” Darnell said, describing an incident where volunteer and county fire units responded to a house fire while Wichita Falls fire units did not.

Staff clarified that staff had presented the appraisal last year and the council postponed action; because the statutory/contractual window for an increase must be observed the city returned to the agenda now so any approved change could take effect on the next lease roll. Pat said approving any increase today would not change current appraisal work; the appraisals remain underway and sample appraisals will be available within about 30–60 days. Pat also said that lots not included in the sampling would still require an individual appraisal if the owner chose to pursue a purchase.

Council action and effect: A motion to approve the resolution raising the rates (30% Arrowhead / 10% Kickapoo) passed. City staff said the increases would not take effect until the affected leases’ next renewal dates (some June 1, some Sept. 1). Staff also noted the city must wait five years after any adopted increase to consider another raise under the lease terms cited by counsel.

Votes at a glance (related items from the Feb. 18 meeting): The council also approved, elsewhere on the agenda, a 1-year extension of the ambulance services contract with American Medical Response; continued memberships in the Atmos and Encore city steering committees (per-capita fees); a resolution placing Chapter 174 of the Texas Local Government Code (Fire and Police Employee Relations Act) into effect on 2025-04-01; a potable water purchase contract and related MOU with Wichita Valley Water Supply Corporation; an award for the 2025 crack seal project; and funding up to $4,000 from the Type B sales tax corporation for a Hotter'N Hell start line arch. (See article “Votes at a glance — Feb. 18 council actions” for item-by-item details.)

What’s next: Staff said appraisals and a list of sampled lot values will be available in the coming weeks, and that individual lessees who wish to pursue purchase will need independent appraisals for their specific lots. The council vote means the new rates will be applied at the next renewal for each lot; the city attorney reiterated that the council cannot adopt another increase for five years after the action.