07.12.2017 Town Council Minutes SpecialISPER
OWN OF
Prosper is a place where everyone matters.
1. Call to Order/Roll Call.
The meeting was called to order at 6:00 p.m.
Council Members Present:
Mayor Ray Smith
Mayor Pro-Tem Curry Vogelsang, Jr.
Deputy Mayor Pro-Tem Jason Dixon
Councilmember Michael Korbuly
Councilmember Kenneth Dugger
Councilmember Meigs Miller
Councilmember Jeff Hodges
MINUTES
Special Meeting of the
Prosper Town Council
Prosper Municipal Chambers
108 W. Broadway Street
Prosper, TX 75078
Tuesday, July 12, 2017
Staff Members Present:
Harlan Jefferson, Town Manager
Robyn Battle, Town Secretary/Public Information Officer
Hulon Webb, Executive Director of Development and Community Services
John Webb, Development Services Director
Alex Glushko, Senior Planner
Steve Glass, Deputy Director of Engineering Services
Michael Bulla, CIP Project Manager
Frank Jaromin, Public Works Director
Leslie Scott, Library Director
Kelly Neal, Finance Director
Leigh Johnson, IT Director
Baby Raley, Human Resources Director
Ronnie Tucker, Fire Chief
Stuart Blasingame, Assistant Fire Chief
Kent Bauer, Emergency Management Coordinator
Doug Kowalski, Police Chief
Gary McHone, Assistant Police Chief
Natalee Warren, Dispatch Supervisor
2. The Town Council will discuss the proposed FY 2017-2018 budget.
• Review Major Initiatives from 2017 Strategic Planning Session (HJ)
Town Manager Harlan Jefferson reviewed the updated Major Initiatives from the 2017
Strategic Planning Session. Mr. Jefferson discussed some projects in details and
further explained the projects that are categorized as "on hold." The Council did not
request any changes to the Major Initiatives.
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• Review of FY 2017-2018 Budget Process and Calendar (KN)
Finance Director Kelly Neal reviewed key dates on the FY 2017-2018 budget calendar.
The proposed budget will be presented on August 8, 2017. Two required Public
Hearings will be held, and the proposed budget and tax rate will be considered for
adoption by the Town Council on September 12, 2017.
• Discussion Items
Major Revenue Sources (KN/HW)
a. Property Values
The Town has experienced significant increases in property tax revenue over
the past four years due to growth and increases in property values. Ms. Neal
explained that the Town Council's recent action to increase the Homestead
Exemption from 7.5% to 10% will result in approximately $1.3 million in
decreased revenue.
b. Sales Tax for Property Tax Relief
The Town Council Finance Subcommittee recently asked staff to research
the impact of converting the 0.5 cent sales tax currently assessed for property
tax relief to a Crime Control District and Fire Prevention District. Reallocating
the revenue would require an election, and would have an impact on the
calculation of the effective tax rate and rollback tax rate. The Council
requested staff follow up with additional information on all possible options
for the 0.5 cent sales tax revenue. Ms. Neal recommended the Town hire a
consultant to analyze the Town's sales tax revenue, and also recommended
the Council appoint a committee to review and make a recommendation on
the options for the 0.5 cent sales tax.
c. Water and Sewer Rates
Finance Director Kelly Neal presented information about the Town's water
and sewer rates which have not been updated since 2012. She presented
the results of a rate study which recommended an incremental increase in
water and sewer rates which will be phased in over the next three years. The
first increase will go into effect on October 1, 2017, upon approval from the
Town Council. The proposed rate increase is a result of increased water and
wastewater charges from the Town's water supplier, increased operating
costs to provide water services, and increased capital needs related to the
Town's growing water infrastructure system. The Council requested
additional information from staff regarding the minimum annual charges for
water consumption over the past five years.
d. Stormwater Rates
Hulon Webb, Executive Director of Development and Community Services,
reviewed the Town's current monthly stormwater fees, which were last
updated in 2010. Town staff is proposing an increase in residential and
commercial stormwater fees to offset the cost for increased capital needs
related to the Town's growing drainage infrastructure. The Council concurred
with the proposal. Town staff will propose a fee increase effective October
1, 2017, at a future Town Council meeting.
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ii. Town Fees
a. Franchise (KN)
Town staff conducted a Town -wide cost allocation study to determine the true
cost of service from the Town to the Utility Departments. Based on the
information gathered, Town staff recommended assessing an annual total
transfer from the Water, Sewer, and Stormwater Funds of 9.67%, plus a
franchise fee of 2%, to support the General Fund. The Council agreed with the
recommendation.
b. Health/Food Establishment Fees (JW)
Development Services Director John Webb updated the Council on the Town's
current method for assessing health -related fees for food establishments,
which have not been updated since 2005. The Town currently contracts with
a third -party provider for these services; however, the individual provider is not
always able to keep up with demand for inspections. Town staff recommended
using Bureau Veritas to help keep up with demand for health inspections for
food service establishments. Town staff also recommended updating the
Town's food establishment ordinance, and increasing fees for convenience
stores, day cares, and plan review services to be in line with the Town's survey
cities. The Council concurred with the recommended fee increase, to be
effective on October 1, 2017.
c. Public Works (SG)
Steve Glass, Deputy Director of Engineering, updated the Council on the
Public Works fee structure, which has not been updated since 2011. Town
staff will present an item at a future Town Council meeting which will propose
an adjustment to the fee structure based on updated costs, and which will
better reflect actual work performed.
CIP (HW/KN)
Hulon Webb reviewed the summary of Capital Improvement Program projects
scheduled for FY 2017-2018. The Town Council suggested several Street and
Traffic projects at the July 11, 2017, Town Council meeting. Town staff will
continue to research those projects, and present them to the Council Finance
Committee for a recommendation prior to bringing them forward for Council
consideration. Upon request from Council, Town staff will modify the CIP Summary
Report by indicating the funding source for all projects.
Mr. Webb reviewed the Parks projects for FY 2017-2018. Upon request from the
Town Council, information will be added to the CIP Summary Report to indicate
the acreage of each project, and whether the park is passive or active.
Next, Mr. Webb reviewed the Facilities portion of the CIP Summary Report, which
includes $1 million for the design of a Public Safety Complex. The Town Council
requested additional information on the previous CIP estimates for the facility, and
the design and construction costs for Fire Station No. 2.
Mr. Webb reviewed the Water, Wastewater, and Drainage projects for FY 2017-
2018.
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Ms. Neal continued the presentation by providing the Council with funding
projections for the five-year Capital Improvement Program. Current projections
assume no change in the current tax rate. Ms. Neal reminded the Council that any
change in the CIP must be in line with the Town's debt policy. The Council
expressed an interest in improving communication with the public about capital
infrastructure expenses.
iv. Green Ribbon Funding for US HWY 380 (HW)
Hulon Webb updated the Council on upcoming Green Ribbon Funding projects
along US 380. Town staff will ask for full funding for the projects, with the hopes
that the Cities of Frisco and McKinney will partner with the Town on the projects.
Town staff will present options for the Preston Road Monument/Median project at
the July 25, 2017, Town Council meeting.
V. Grant Opportunities (KB)
Emergency Management Coordinator Kent Bauer updated the Council on the
Town's grant process. Town policies give the Town Manager authority to apply for
grants, but the Council must ratify any grants that are awarded. The policy allows
for a streamlined process for grant applications, which can be time sensitive. Mr.
Bauer is currently pursuing six different grant opportunities for the Town.
vi. Transition to New Town Hall
a. Ribbon Cutting, Open House, State of the Town (RB)
Town Secretary/Public Information Officer Robyn Battle updated the Council
on proposals to celebrate the opening of the new Town Hall, including a Ribbon
Cutting, Open House, and a presentation of the State of the Town by Mayor
Smith.
b. Town Hall Park (HW)
Hulon Webb reviewed the Town Hall Open Space Enhancements plan.
Council directed staff to remove the cost for the Master Plan, and pursue the
project as a linear park with grass and irrigation only for now.
c. Parks & Recreation Staff (HW)
Hulon Webb presented options for the Parks and Recreation staff to be housed
either at the new Town Hall facility or at the existing facility on First Street. The
Council agreed that the staff should remain at the first street location as
proposed.
d. Town Hall Annex (KN)
Kelly Neal reviewed plans to remove the modular building that is currently
serving as the Town Hall Annex once the staff are relocated to the new Town
Hall facility. The Council concurred with the plan.
e. Facility Maintenance Costs (KN)
Ms. Neal updated the Council on a proposal to create a Facility Management
Department in the General Fund which will centralize costs associated with
maintenance expenses for the new Town Hall facility. The new department
will oversee custodial services, pest control, building supplies, and utility
services. The Council agreed with the proposal.
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f. 121 W. Broadway Renovation (DK)
Police Chief Kowalski updated the Council on the Police Department's plan to
renovate the current Town Hall located at 121 W. Broadway as an interim
Police facility once the current Administration staff is relocated to the new Town
Hall facility. Funds have been set aside in the FY 2017-2018 budget to
renovate the building to accommodate Police personnel.
vii. Zucker Report — Phase 2 (HJ)
Town Manager Harlan Jefferson briefed the Council on Phase 2 of the Zucker
report, which the Council received under separate cover. Many recommendations
from the first phase have already been implemented. Town staff will continue to
update the Council on the implementation of additional recommendations from the
report.
• Summary and wrap up
Mr. Jefferson thanked the Council and staff for their time and effort in the budget
preparation process.
3. EXECUTIVE SESSION:
Recess into Closed Session in compliance with Section 551.001 et seq. Texas
Government Code, as authorized by the Texas Open Meetings Act, to deliberate
regarding:
3a. Section 551.087 — To discuss and consider economic development
incentives.
3b. Section 551.072 — To discuss and consider purchase, exchange, lease or
value of real property for municipal purposes and all matters incident and
related thereto.
The Executive Session was not held.
4. Reconvene in Regular Session and take any action necessary as a result of the
Closed Session.
No action was taken.
5. Adjourn.
The meeting was adjourned at 8:49 p.m., on Tuesday, July 12, 2017.
These minutes approved on the 25th day of July, 2017.
APPROVED: j
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Ray Smith, Mayor
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Robyn Baftle, Town
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