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Council weighs CIP funding priorities, proposed $5 stormwater fee and options to boost over-65 homestead exemption
Summary
Staff presented a multi-year capital improvement plan and funding scenarios (certificates of obligation, developer contributions, utility revenues). Council discussed a proposed $5 monthly stormwater fee projected to raise $350k-$400k annually and three options to raise the over-65 homestead exemption from $100k to $125k, $150k, or $200k, with differing fiscal impacts.
The NorthlakeTown Council spent a large portion of its July 10 meeting on the capital improvement program (CIP), project priorities and funding options for 2026 and beyond. John (town staff) reviewed dozens of projects—waterlines, elevated storage tanks, road reconstructions, the Star Center building and trail connectors—and their current budgets and schedules.
Staff said the town has secured about $94.3 million for projects, spent roughly $37 million and has about $57 million remaining. Projected additional needs were estimated at approximately $32 million; staff noted timing differences in receipts and expenditures make FY26 look stronger on available sources. Debt-service is currently about $10.8 million; staff said roughly 61% of proposed 2026 certificate obligations would be paid from utility revenues and 39% from property taxes.
Two budget-policy items drew particular council attention. First, staff proposed a $5 per month stormwater drainage fee for residential households (commercial properties charged by impervious area). Staff estimated the fee could produce $350,000 to $400,000 annually as growth continues; the fee would establish a dedicated revenue stream for stormwater projects and could reimburse past general-fund transfers over several years. Council members asked whether alternative models (impervious-area measurement, per-square-foot approaches or water-usage proxies) had been studied and discussed fairness and communication plans. "An education piece is definitely easy enough to do," John said when asked about public messaging.
Second, staff presented options to increase the over-65 homestead exemption (currently $100,000, affecting about 450 residents and reducing collections by about $135,000): options presented were $125,000 (~+$34,000 impact), $150,000 (~+$66,000 impact) and $200,000 (roughly doubling the current $135,000 foregone revenue). Council members were split between option 2 and 3 and asked staff for an analysis of average homeowner savings and the additional burden on other taxpayers before deciding.
Other CIP items: staff recommended phasing entryway monuments (three ready sites now, three to delay until utilities are in place) and summarized a list of planned and future projects (Faught Road waterline, Fort Worth water phases, Thompson Road reconstruction, multi-road work and ADA compliance study estimated at ~$150,000).
What happens next: staff will return with specific budget amendments and more detailed analyses (homeowner-savings estimates and fall-back options for stormwater-fee structure) as the FY26 budget process advances.
