06.11.2013 Town Council PacketPage 1 of 3
]
Prosper is a place where everyone matters.
1. Call to Order/Roll Call.
2. Invocation, Pledge of Allegiance and Pledge to the Texas Flag.
3. Announcements of upcoming events.
4. CONSENT AGENDA
(Items placed on the Consent Agenda are considered routine in nature and are considered
non-controversial. The Consent Agenda can be acted upon in one motion. A majority
vote of the Council is required to remove any item for discussion and separate action.
Council members may vote nay on any single item without comment and may submit
written comments as part of the official record.)
4a. Consider and act upon minutes from the following Council meetings. (RB)
• Regular Meeting – May 28, 2013
4b. Consider and act upon whether to direct staff to submit a written notice of appeal
on behalf of the Town Council to the Development Services Department, pursuant
to Chapter 4, Section 1.5(C)(7) and 1.6(B)(7) of the Town’s Zoning Ordinance,
regarding action taken by the Planning & Zoning Commission on any site plan or
preliminary site plan. (CC)
4c. Consider and act upon the monthly financial reports for April 2013. (HJ)
4d. Consider and act upon Ordinance No. 13-38 approving and adopting rate schedule
“RRM – Rate Review Mechanism” for ATMOS Energy Corporation, Mid-Tex
Division. (HJ)
5. CITIZEN COMMENTS:
(The public is invited to address the Council on any topic. However, the Council is
unable to discuss or take action on any topic not listed on this agenda. Please
complete a “Public Comments Form” and present it to the Town Secretary prior to the
meeting.)
Other Comments by the Public -
AGENDA
Meeting of the Prosper Town Council
Prosper Municipal Chambers
108 W. Broadway, Prosper, Texas
Tuesday, June 11, 2013
Meeting begins at 6:00 p.m.
Page 2 of 3
REGULAR AGENDA:
(If you wish to address the Council during the regular agenda portion of the meeting,
please fill out a “Speaker Request Form” and present it to the Town Secretary prior to the
meeting. Citizens wishing to address the Council for items listed as public hearings will
be recognized by the Mayor. Those wishing to speak on a non-public hearing related
item will be recognized on a case-by-case basis, at the discretion of the Mayor and Town
Council.)
DEPARTMENT ITEMS:
6. Consider and act upon recommendation by the Prosper Economic Development
Corporation for adoption of Tax Abatement Policy 2013. (RW)
7. Discussion on installation of recycling bins at Frontier Park. (MF)
8. Consider and act upon Ordinance No. 13-40 amending the Town of Prosper’s Annual
Budget for the fiscal year beginning on October 1, 2012, and ending on September 30,
2013, as adopted by Ordinance No. 12-28 and amended by Ordinance Nos. 12-39, 13-05,
and 13-12, for adjustments to the General Fund and Storm Drainage Utility Fund. (HJ)
9. 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:
9a. Section 551.087. To discuss and consider economic development incentives.
9b. 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.
10. To reconvene in Regular Session and take any action necessary as a result of the Closed
Session.
11. Possibly direct Town Staff to schedule topic(s) for discussion at a future meeting.
• Prosper Frontier Park maintenance structure (Gator Barn).
12. Adjourn.
Page 3 of 3
CERTIFICATION
I, the undersigned authority, do hereby certify that this Notice of Meeting was posted on the inside window at the
Town Hall of the Town of Prosper, Texas, 121 W. Broadway Street, Prosper, Texas, a place convenient and readily
accessible to the general public at all times, and said Notice was posted on the following date and time:
On June 7, 2013, at 5:00 p.m. and remained so posted at least 72 hours before said meeting was convened.
________________________________
Carol Myers, Deputy Town Secretary
If during the course of the meeting covered by this Notice, the Town Council should determine that a closed or
executive meeting or session of the Town Council or a consultation with the attorney/special counsel for the Town
should be held or is required, then such closed or executive meeting or session or consultation with the
attorney/special counsel as authorized by the Texas Open Meetings Act, Texas Government Code, §551.001, et seq.,
will be held by the Town Council at the date, hour and place given in this Notice or as soon after the commencement
of the meeting covered by this Notice as the Town Council may conveniently meet in such closed or executive
meeting or session or consult with the attorney/special counsel for the Town concerning any and all subjects and for
any and all purposes permitted by the Act, including, but not limited to, the following sections and purposes:
Texas Government Code:
§551.071 - Consultation with the attorney/special counsel for the Town.
§551.072 - Discussion regarding the purchase, exchange, lease or value of real property.
§551.074 - Discussion regarding personnel matters.
NOTICE
Pursuant to Town of Prosper Ordinance Number 07-04, all speakers other than Town of Prosper Staff are limited to
three (3) minutes per person, per item, which may be extended for an additional two (2) minutes with approval of a
majority vote of the Town Council.
NOTICE OF ASSISTANCE AT PUBLIC MEETINGS: The Prosper Town Council Meetings are wheelchair
accessible. Persons with disabilities who plan to attend this meeting and who may need auxiliary aids or services
such as Interpreters for persons who are deaf or hearing impaired, readers, or large print, are requested to contact the
Town Secretary’s Office at (972) 569-1011. BRAILLE IS NOT AVAILABLE.
Page 1 of 6
]
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 Meigs Miller
Deputy Mayor Pro Tem Kenneth Dugger
Council Member Mike Korbuly
Council Member Curry Vogelsang
Council Member Danny Wilson
Council Member Jason Dixon
Staff Members Present:
Harlan Jefferson, Town Manager
Robyn Battle, Town Secretary
Hulon T. Webb, Jr., Executive Director of Development and Community Services
Chris Copple, Director of Development Services
Frank Jaromin, Director of Public Works
Matthew Garrett, Finance Director
Terrence Welch, Town Attorney
2. Invocation, Pledge of Allegiance and Pledge to the Texas Flag.
Mayor Smith announced that Zelia Alvarez, the Municipal Court Administrator, had died
in a car crash earlier in the day, and asked that her family be remembered in the
invocation.
Pastor John Fowler of First Presbyterian Church of Prosper led the invocation.
A local Boy Scout troop presented the colors and led the Pledge of Allegiance and the
Pledge to the Texas Flag.
3. Proclamations.
Mayor Smith presented the following Proclamation:
3a. Presentation of a Proclamation declaring May 28, 2013, as Cooper Anderson
Day
MINUTES
Meeting of the Prosper Town Council
Prosper Municipal Chambers
108 W. Broadway, Prosper, Texas
Tuesday, May 28, 2013
6:00 p.m. Regular Meeting
Item 4a
Page 2 of 6
4. Announcements of upcoming events.
Mayor Pro Tem Miller made the following announcements:
The Police Department is sponsoring a Bicycle Rodeo on June 1st from 10:00 a.m.–Noon
at the north parking lot of Prosper High School. Registration is free. The event will offer
free bicycle inspections, and information about proper bicycle maintenance and safety.
“Friday at the Park” will take place once again on Friday, June 7th, at Frontier Park
Pavilion. This event features an outdoor movie, music, food and entertainment.
Activities start at 6:30 p.m., and the movie “Escape From Planet Earth” will start at dusk.
The splashground near the Windmill Playground at Frontier Park is now open for the
summer months.
The Town Council introduced and welcomed Terrence (Terry) Welch of the law firm of
Brown & Hofmeister as the new Town Attorney.
Council Member Korbuly announced a donation drive for Little Axe, Oklahoma, and
suggested that Prosper residents assist this community by dropping off donations on
Saturday, June 1, from Noon until 5:00 p.m. at Wilson’s barn on Coit Road.
5. CONSENT AGENDA
(Items placed on the Consent Agenda are considered routine in nature and are considered
non-controversial. The Consent Agenda can be acted upon in one motion. A majority
vote of the Council is required to remove any item for discussion and separate action.
Council members may vote nay on any single item without comment and may submit
written comments as part of the official record.)
5a. Consider and act upon minutes from the following Council meetings. (RB)
Regular Meeting – May 14, 2013
Canvass of Election – May 20, 2013
5b. Consider and act upon whether to direct staff to submit a written notice of
appeal on behalf of the Town Council to the Development Services
Department, pursuant to Chapter 4, Section 1.5(C)(7) and 1.6(B)(7) of the
Town’s Zoning Ordinance, regarding action taken by the Planning & Zoning
Commission on any site plan or preliminary site plan. (CC)
Mayor Pro Tem Miller made a motion and Council Member Vogelsang seconded the
motion to approve all items on the Consent Agenda. The motion was approved by a vote
of 7-0.
Item 4a
Page 3 of 6
6. CITIZEN COMMENTS:
(The public is invited to address the Council on any topic. However, the Council is
unable to discuss or take action on any topic not listed on this agenda. Please
complete a “Public Comments Form” and present it to the Town Secretary prior to the
meeting.)
There were no Citizen Comments.
REGULAR AGENDA:
(If you wish to address the Council during the regular agenda portion of the meeting,
please fill out a “Speaker Request Form” and present it to the Town Secretary prior to the
meeting. Citizens wishing to address the Council for items listed as public hearings will
be recognized by the Mayor. Those wishing to speak on a non-public hearing related
item will be recognized on a case-by-case basis, at the discretion of the Mayor and Town
Council.)
DEPARTMENT ITEMS:
7. Consider and act upon the election of a Mayor Pro Tem and Deputy Mayor Pro
Tem. (RB)
Council Member Vogelsang made a motion and Council Member Korbuly seconded the
motion to elect Meigs Miller as Mayor Pro Tem and Kenneth Dugger as Deputy Mayor
Pro Tem. The motion was approved by a vote of 7-0.
8. Consider and act upon 1) an award of bid to Quality Excavation, Ltd.; 2) a
Construction Services Contract Agreement between Quality Excavation, Ltd., and
the Town of Prosper, Texas, related to the construction services for improvements
to Hays Road from Ridgewood Drive to Chandler Circle South; 3) adopting
Resolution No. 13-33; and, 4) authorizing the Town Manager to execute same. (FJ)
Council Member Dixon left the Council bench at 6:19 p.m.
Public Works Director Frank Jaromin presented the item before the Town Council. This
project is one of the road improvement projects recommended by the Bond Committee as
a result of the May 14, 2011, Bond Election. Two bids were received, with Quality
Excavation submitting the lower bid. Council asked questions regarding the reliability of
the contractor, the width of the road, maintenance of the right-of-way, and the payment
terms of the contract. Mr. Jaromin addressed questions from Council. Staff
recommended approval of this item, with the inclusion of the alternate bid to include
seven-inch concrete paving due to heavy construction traffic on Hays Road.
After discussion, Deputy Mayor Pro Tem Dugger made a motion and Council Member
Wilson seconded the motion to approve an award of bid to Quality Excavation, Ltd., to
include the alternate bid for seven-inch concrete pavement; a Construction Services
Item 4a
Page 4 of 6
Contract Agreement between Quality Excavation, Ltd., and the Town of Prosper, Texas,
related to the construction services for improvements to Hays Road from Ridgewood
Drive to Chandler Circle South; adopt Resolution No. 13-33; and authorize the Town
Manager to execute same. The motion was approved by a vote of 6-0.
9. Consider and act upon 1) a Park Improvement Fee Agreement between Forestar
Group, Inc., and the Town of Prosper, Texas, related to the park improvements in
Lakes of Prosper, Phases 2C, 3, 4, 5, and 6; 2) adopting Resolution No. 13-34; and,
3) authorizing the Town Manager to execute same. (HW)
Hulon Webb, Executive Director of Development and Community Services, presented
this item before the Town Council. There are several hike and bike trails within the
Lakes of Prosper subdivision that have yet to be constructed. The terms of this proposed
Park Improvement Fee Agreement stipulate the use of the park improvement fees
generated by the remaining phases of the subdivision to pay for the actual design and
construction of the remaining hike and bike trails within this subdivision. The Parks &
Recreation Board recommended approval of this item at their meeting on May 9, 2013,
and Town staff recommended approval of this item.
After discussion, Council Member Wilson made a motion and Deputy Mayor Pro Tem
Dugger seconded the motion to approve a Park Improvement Fee Agreement between
Forestar Group, Inc., and the Town of Prosper, Texas, related to the park improvements
in Lakes of Prosper, Phases 2C, 3, 4, 5, and 6; adopt Resolution No. 13-34; and authorize
the Town Manager to execute same. The motion was approved by a vote of 6-0.
10. Consider and act upon 1) a Landscape Architectural and Engineering Design
Services Agreement between Freese and Nichols, Inc., and the Town of Prosper,
Texas, related to the design of Cockrell Park; 2) adopting Resolution No. 13-35; and,
3) authorizing the Town Manager to execute same. (HW)
Hulon Webb, Executive Director of Development and Community Services, presented
this item before the Town Council. Freese and Nichols, Inc., will perform professional
landscape architectural and engineering design services to include concept design and the
development of complete construction documents for the proposed park improvements at
Cockrell Park. Henry Hartshorn from Freese and Nichols was present to address
Council’s questions regarding the location of lighting, restrooms, and power lines. Mr.
Webb explained that those concerns would be addressed as the construction plans are
finalized. The Parks & Recreation Board recommended approval of this item at their
meeting on April 11, 2013, and Town staff recommended approval of this item.
After discussion, Council Member Wilson made a motion and Council Member Korbuly
seconded the motion to approve a Landscape Architectural and Engineering Design
Services Agreement between Freese and Nichols, Inc., and the Town of Prosper, Texas,
related to the design of Cockrell Park; adopt Resolution No. 13-35; and authorize the
Town Manager to execute same. The motion was approved by a vote of 6-0.
Item 4a
Page 5 of 6
11. Consider and act upon 1) an application to the Collin County Parks & Open Space
Project Funding Assistance Program; 2) adopting Resolution No. 13-36; and, 3)
authorizing the Town Manager to execute same. (HW)
Hulon Webb, Executive Director of Development and Community Services, presented
this item before the Town Council. The Collin County Parks & Open Space Project
Funding Assistance Program uses County bond funds to assist local municipalities in the
acquisition of land for parks, the construction of hike and bike trails, and for capital
improvement to park land. The estimated design and construction costs for the
improvements at Cockrell Park are $1,028,000. The Town of Prosper is requesting the
maximum matching fund from Collin County of $500,000. The Parks & Recreation
Board recommended approval of this item at their meeting on May 9, 2013, and Town
staff recommended approval of this item.
After discussion, Deputy Mayor Pro Tem Dugger made a motion and Mayor Pro Tem
Miller seconded the motion to approve an application to the Collin County Parks & Open
Space Project Funding Assistance Program; adopt Resolution No. 13-36; and authorize
the Town Manager to execute same. The motion was approved by a vote of 6-0.
12. Consider and act upon the Fiscal Year 2013-2014 Budget Calendar and any related
special meeting dates. (MG)
Town staff has created a budget calendar that complies with the various laws governing
municipal budgeting, truth in taxation and the Open Meetings Act. Town staff
recommended that Council consider the proposed calendar and set the date for a Special
Called Meeting required for a Public Hearing regarding the tax rate.
After discussion, Council Member Vogelsang made a motion and Deputy Mayor Pro
Tem Dugger seconded the motion to set the date for a Special Called Meeting regarding
the tax rate for Thursday, August 29, 2013, at 6:00 p.m., to be held in Prosper Municipal
Chambers. The motion was approved by a vote of 6-0.
13. EXECUTIVE SESSION:
Deputy Mayor Pro Tem Dugger made a motion and Council Member Wilson seconded
the motion to recess into Executive Session at 7:08 p.m. The motion was approved by a
vote of 6-0.
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:
13a. Section 551.072. To deliberate the purchase, exchange, lease or value of real
property generally located north of U.S. Highway 380, south of Prosper Trail,
west of Preston Road and east of the Dallas North Tollway.
Item 4a
Page 6 of 6
14. To reconvene in Regular Session and take any action necessary as a result of the
Closed Session.
Deputy Mayor Pro Tem Dugger made a motion and Council Member Korbuly seconded
the motion to reconvene into Regular Session at 7:39 p.m. The motion was approved by
a vote of 6-0.
No action was taken as a result of Executive Session.
15. Possibly direct Town staff to schedule topic(s) for discussion at a future meeting.
Prosper Frontier Park maintenance structure (Gator Barn).
16. Adjourn.
Deputy Mayor Pro Tem Dugger made a motion and Mayor Pro Tem Miller seconded the
motion to adjourn the meeting at 7:41 p.m., on Tuesday, May 28, 2013. The motion was
approved by a vote of 6-0.
These minutes approved on the 11th day of June, 2013.
APPROVED:
Ray Smith, Mayor
ATTEST:
Robyn Battle, Town Secretary
Item 4a
To: Mayor and Town Council
From: Chris Copple, AICP, Director of Development Services
Through: Harlan Jefferson, Town Manager
Re: Town Council Meeting – June 11, 2013
Agenda Item:
Consider and act upon whether to direct staff to submit a written notice of appeal on behalf of
the Town Council to the Development Services Department, pursuant to Chapter 4, Section
1.5(C)(7) and 1.6(B)(7) of the Town’s Zoning Ordinance, regarding action taken by the Planning
& Zoning Commission on any site plan or preliminary site plan.
Description of Agenda Item:
Attached are the site plans and/or preliminary site plans acted on by the Planning & Zoning
Commission at their June 4, 2013, meeting. Per the Town’s Zoning Ordinance, the Town
Council has the ability to direct staff to submit a written notice of appeal on behalf of the Town
Council to the Development Services Department for any site plan or preliminary site plan acted
on by the Planning & Zoning Commission.
Attached Documents:
1. Site plan for Windsong Ranch Amenity Center, on 11.5± acres, located on the east side of
future Windsong Parkway and the terminus of future Acacia Parkway.
Town Staff Recommendation:
Town staff recommends the Town Council take no action on this item.
Prosper is a place where everyone matters.
PLANNING
Item 4b
Item 4b
"A PLACE WHERE EVERYONE MATTERS"
FINANCIALS
FY 2012 - 2013
April, 2013
Item 4c
CASH OVERVIEW
General
Fund
Water/Sewer
Fund I & S
Internal
Service
Fund Cap Proj
Storm
Drainage
*Parks
(Ded + Imp)
**Impact
Fees
***Sp Rev
Fund
Sp. Rev
Escrow EDC TOTALS
CASH-LOCAL BANK 4,127,982 5,092,957 1,820,607 93,713 3,369,784 247,922 155,288 3,930,044 87,961 975,550 1,985,950 21,887,758
CERT. OF DEPOSIT 2,011,370 4,023,778 201,005 - - - - - - - - 6,236,154
TEXPOOL BALANCE 84,228 4,711 37,624 - 4,168,412 - - 2,211,040 - - 1,325 6,507,340
TEXSTAR BALANCE 3,086,812 - - - 838,839 - 1,152,806 2,483,859 - 973,046 1,190 8,536,551
TOTAL 9,310,392 9,121,446 2,059,236 93,713 8,377,034 247,922 1,308,093 8,624,944 87,961 1,948,596 1,988,465 43,167,802
*Parks Fund combines Parks Dedication and Parks Improvement
**Impact Fees consist of Water Impact, Sewer Impact, Thoroughfare and West Thoroughfare Impact fees.
***Special Revenue Fund figure consist of Court Technology Fd, Court Security Fd, Police donations, Fire donations, Safety Fair donations, Child Safety collections,
Shattered Dreams donations and Country Christmas donations. These are all retricted funds for specific purposes.
Total Restricted Funds 15,714,980
END-OF-MONTH CASH OVERVIEW (RECONCILED)
April, 2013
"a place where everyone matters"
Item 4c
80-1320-00-00
20-1710-00-00
20-1720-00-00
20-1740-00-00
20-1770-00-00
20-1910-00-00
20-1990-00-00
20-2113-00-00
20-2120-00-00
20-2305-00-00
20-2410-00-00
20-2505-00-00
20-2510-00-00
20-2545-00-00
20-2580-00-00
20-2591-00-00
20-2598-00-00
20-2599-00-00
20-2915-00-00
20-2922-00-00
20-2923-00-00
20-2975-00-00
20-2982-00-00
20-2995-00-00
20-3110-00-00
20-3140-00-00
"a place where everyone matters"
END-OF-MONTH CASH OVERVIEW (RECONCILED)
April, 2013
4,128
5,093
1,821
94
3,370
248 155
3,930
88
976
1,986
2,011
4,024
201
-
-
- -
-
-
-
-
84
5
38
-
4,168
- -
2,211
-
-
1
3,087
-
-
-
839
-
1,153
2,484
-
973
1
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
$9,000
$10,000
General
Fund
Water/Sewer
Fund
I & S Internal Service
Fund
Cap Proj Storm
Drainage
*Parks
(Ded + Imp)
**Impact
Fees
***Sp Rev
Fund
Sp. Rev
Escrow
EDC Thousands TEXSTAR BALANCE
TEXPOOL BALANCE
CERT. OF DEPOSIT
CASH-LOCAL BANK
21,887,758
50.70%
6,236,154
14.45%
$6,507,340
15.07%
$8,536,551
19.78%
Item 4c
% of Total % of Total % of Total
Month FY 10/11 Taxes Due FY 11/12 Taxes Due FY 12/13 Taxes Due
Oct 670,832.76$ 11.13%345,581.69$ 5.38%199,295.89$ 2.91%
Nov 245,708.45$ 4.08%269,564.25$ 4.20%312,797.73$ 4.58%
Dec 2,307,007.29$ 38.28%2,778,563.05$ 43.29%2,668,522.67$ 39.03%
Jan 2,289,662.66$ 38.00%2,055,811.24$ 32.03%2,840,054.97$ 41.54%
Feb 698,822.18$ 11.60%724,407.75$ 11.29%734,118.21$ 10.74%
Mar 199,858.51$ 3.32%99,594.86$ 1.55%108,274.55$ 1.58%
Apr 36,824.36$ 0.61%57,941.01$ 0.90%61,223.36$ 0.90%
May 67,437.54$ 1.12%57,482.87$ 0.90%
June 39,365.06$ 0.65%16,505.67$ 0.26%
July 26,492.13$ 0.44%30,368.29$ 0.47%
Aug 14,870.63$ 0.25%11,530.90$ 0.18%
Sept 19,320.71$ 0.32%1,465.09$ 0.02%
YTD Totals 6,616,202.28$ 109.79%6,448,816.67$ 100.48%6,924,287.38$ 101.28%Collected YTD
includes delinquent
collections
6,026,100.54$ 6,418,046.61$ 6,837,016.79$ Total taxes due
includes delinquent
before adjustments
$-
$250
$500
$750
$1,000
$1,250
$1,500
$1,750
$2,000
$2,250
$2,500
$2,750
$3,000
Oct Nov Dec Jan Feb Mar Apr May June July Aug Sept Thousands PROPERTY TAX COLLECTIONS
THREE (3) YEAR COMPARISON
FOR PEAK COLLECTION MONTHS
0%
20%
40%
60%
80%
100%
120%
Oct Nov Dec Jan Feb Mar Apr May June July Aug Sept Percent Collected PROPERTY TAX COLLECTIONS
THREE (3) YEAR COMPARISON
PERCENT OF TOTAL DUE (Before Adjustments) COLLECTED
Item 4c
Total Total Current Year
For For Total For $ Amount % of Change
Month FY 10/11 FY 11/12 FY 12/13 Inc /(Dec)Inc /(Dec)
Oct 105,623.03$ 132,769.97$ 201,979.59$ 69,209.62$ 52.13%
Nov 102,733.59$ 151,482.42$ 214,546.84$ 63,064.42$ 41.63%
Dec 63,109.58$ 124,330.65$ 216,748.39$ 92,417.74$ 74.33%
Jan 73,055.18$ 116,402.88$ 178,379.69$ 61,976.81$ 53.24%
Feb 77,725.19$ 152,805.41$ 191,529.31$ 38,723.90$ 25.34%
Mar 76,266.92$ 116,790.53$ 142,790.48$ 25,999.95$ 22.26%
Apr 91,119.20$ 139,896.45$ 166,747.94$ 26,851.49$ 19.19%
May 134,429.49$ 160,653.78$
June 111,390.14$ 161,052.24$
July 122,119.89$ 169,498.46$
Aug 153,415.34$ 188,573.69$
Sept 129,026.27$ 191,387.99$
YTD Totals 1,240,013.82$ 1,805,644.47$ 1,312,722.24$ 378,243.93$ 55.81%
1,400,000.00$ Budgeted Sales Tax
THREE YEAR (3) COMPARISON
TOWN OF PROSPER SHARE OF SALES TAX
PROSPER, TEXAS
$-
$50,000
$100,000
$150,000
$200,000
$250,000
Item 4c
.
gluser_r&a2 lheikkinen Town of Prosper Page 1
10:22 06/04/13 Rev/Exp Fund Category Rept (3)
Fund:
Period Ending: 4/2013
Account Number Description Current Current Percent YTD Current Current
Year YTD % Remaining Month
Adopted Actual Budget Actual
GENERAL FUND
REVENUES
Property Tax 4,309,802.00- 4,222,212.62- 97.968 87,589.38- 37,309.34-
Sales Tax 1,404,500.00- 1,315,449.73- 93.660 89,050.27- 168,026.71-
Franchise 434,500.00- 227,986.02- 60.114 206,513.98- 38,469.46-
License, Fees, & Permits 1,622,625.00- 1,124,723.68- 78.380 497,901.32- 255,583.74-
Charges for Services 192,900.00- 129,759.23- 68.729 63,140.77- 20,737.90-
Grants 30,250.00- 42,061.38- 139.046 11,811.38 4,521.71-
Investments Income 60,100.00- 36,745.30- 61.140 23,354.70- 3,797.77-
Fines & Warrants 280,000.00- 78,071.06- 31.838 201,928.94- 16,511.03-
Transfer In 801,700.00- 467,658.31- 58.333 334,041.69- 66,808.33-
Miscellaneous 26,250.00- 189,482.90- 723.840 163,232.90 18,003.00-
Total Revenues 9,162,627.00- 7,834,150.23- 87.626 1,328,476.77- 629,768.99-
Appropriations
Personnel 6,215,967.00 3,011,721.92 52.059 3,204,245.08 451,791.58
Materials and Supplies 595,165.00 266,278.98 45.696 328,886.02 19,957.42
Town Services / Maintenance 555,278.00 212,953.43 41.349 342,324.57 28,499.93
Contractual / Professional Ser 1,738,460.00 1,023,641.60 60.896 714,818.40 116,998.83
Capital 732,550.00 675,131.97 92.162 57,418.03 1,648.00
Interfund Transfer Out 20,207.00 9,916.69 49.076 10,290.31 1,416.67
Total Appropriations 9,857,627.00 5,199,644.59 55.604 4,657,982.41 620,312.43
Revenue Over/(Under) Approp 695,000.00 2,634,505.64- -366.567 3,329,505.64 9,456.56-
Item 4c
.
gluser_r&a2 lheikkinen Town of Prosper Page 2
10:22 06/04/13 Rev/Exp Fund Category Rept (3)
Fund:
Period Ending: 4/2013
Account Number Description Current Current Percent YTD Current Current
Year YTD % Remaining Month
Adopted Actual Budget Actual
WATER & SEWER FUND
Revenues
Licenses, Fees, & Permits 10,500.00- 12,309.38- 138.133 1,809.38 1,355.53-
Investment Income 30,000.00- 53,656.05- 178.854 23,656.05 4,024.16-
Miscellaneous 25,000.00- 46,683.47- 224.221 21,683.47 7,478.74-
W/S Tap & Connection 300,000.00- 280,450.00- 107.983 19,550.00- 61,075.00-
Service Initation Fees 32,000.00- 27,290.00- 101.766 4,710.00- 4,665.00-
Water Charges 4,690,000.00- 2,199,044.63- 56.184 2,490,955.37- 275,728.67-
Sewer Charges 2,043,500.00- 1,244,544.10- 70.689 798,955.90- 196,366.98-
Penalties 50,000.00- 37,931.19- 83.212 12,068.81- 3,831.50-
Solid Waste Charges 720,000.00- 473,619.45- 75.461 246,380.55- 69,361.44-
Total Revenues 7,901,000.00- 4,375,528.27- 65.121 3,525,471.73- 623,887.02-
Appropriations
Personnel 907,841.00 429,858.76 50.575 477,982.24 57,726.12
Materials and Supplies 1,604,350.00 899,495.29 63.816 704,854.71 131,791.18
Town Services / Maintenance 556,208.00 180,964.82 33.895 375,243.18 23,615.17
Contractual/Professional Servi 2,031,950.00 1,080,716.10 60.208 951,233.90 145,777.67
Capital 88,000.00 82,126.61 93.326 5,873.39
Bonds 1,596,847.00 681,311.60 42.666 915,535.40
Interfund Transfers Out 791,320.00 461,603.31 58.333 329,716.69 65,943.33
Total Appropriations 7,576,516.00 3,816,076.49 54.378 3,760,439.51 424,853.47
Revenue Over/(Under) Approp 324,484.00- 559,451.78- 315.975 234,967.78 199,033.55-
Item 4c
.
gluser_r&a2 lheikkinen Town of Prosper Page 3
10:22 06/04/13 Rev/Exp Fund Category Rept (3)
Fund:
Period Ending: 4/2013
Account Number Description Current Current Percent YTD Current Current
Year YTD % Remaining Month
Adopted Actual Budget Actual
INTEREST & SINKING FUND
Revenues
Property Tax 2,769,956.00- 2,702,025.19- 97.548 67,930.81- 23,914.40-
Investment Income 12,000.00- 10,519.57- 87.663 1,480.43- 1,522.53-
Total Revenues 2,781,956.00- 2,712,544.76- 97.505 69,411.24- 25,436.93-
Appropriations
Bonds 2,556,482.00 1,542,591.87 60.340 1,013,890.13 300.00
Interfund Transfers Out
Total Appropriations 2,556,482.00 1,542,591.87 60.340 1,013,890.13 300.00
Revenue Over/(Under) Approp 225,474.00- 1,169,952.89- 518.886 944,478.89 25,136.93-
INTERNAL SERVICE FUND
Revenue
Charges for Services 20,550.00- 20,550.00 2,925.00-
Interest Income 500.00- 518.62- 103.724 18.62 73.13-
Interfund Transfers In 81,800.00- 9,511.69- 11.628 72,288.31- 1,596.67-
Total Revenues 82,300.00- 30,580.31- 37.157 51,719.69- 4,594.80-
Appropriations
Personnel 50,000.00 36,990.86 73.982 13,009.14 8,845.18
Total Appropriations 50,000.00 36,990.86 73.982 13,009.14 8,845.18
Revenue Over/(Under) Approp 32,300.00- 6,410.55 -19.847 38,710.55- 4,250.38
Item 4c
.
gluser_r&a2 lheikkinen Town of Prosper Page 4
10:22 06/04/13 Rev/Exp Fund Category Rept (3)
Fund:
Period Ending: 4/2013
Account Number Description Current Current Percent YTD Current Current
Year YTD % Remaining Month
Adopted Actual Budget Actual
STORM DRAINAGE FUND
Revenues
Storm Drainage Utility Fee 208,000.00- 127,565.95- 70.345 80,434.05- 18,536.26-
Total Investment Income 1,000.00- 1,570.23- 157.023 570.23 211.48-
Total Miscellaneous
Total Revenues 209,000.00- 129,136.18- 70.760 79,863.82- 18,747.74-
Appropriations
Total Personnel 42,715.00 16,121.35 40.889 26,593.65 1,667.12
Materials & Supplies 12,550.00 1,605.68 23.367 10,944.32 173.77
Town Services/Maintenance 4,900.00 643.73 87.277 4,256.27 230.05
Total Professional Services 450.00 2,240.33 497.851 1,790.33- 66.58
Total Contract Services 58,000.00 58,000.00
Total Capital 116,918.00 73,128.00 67.931 43,790.00
Total Interfund Transfer Out 12,780.00 7,315.00 57.238 5,465.00 1,045.00
Total Appropriations 248,313.00 101,054.09 45.770 147,258.91 3,182.52
Total Revenue Over/(under) App 39,313.00 28,082.09- -87.084 67,395.09 15,565.22-
PARKS FUND
Revenue
Investment Income 3,800.00- 1,093.30- 28.771 2,706.70- 156.66-
Park Fees 125,000.00- 266,424.04- 213.139 141,424.04 90,820.04-
Total Revenues 128,800.00- 267,517.34- 207.700 138,717.34 90,976.70-
Appropriations (Parks)
Contractual / Professional Ser 1,620,000.00 130,622.75 8.063 1,489,377.25 112,591.50
Item 4c
.
gluser_r&a2 lheikkinen Town of Prosper Page 5
10:22 06/04/13 Rev/Exp Fund Category Rept (3)
Fund:
Period Ending: 4/2013
Account Number Description Current Current Percent YTD Current Current
Year YTD % Remaining Month
Adopted Actual Budget Actual
Total Appropriations 1,620,000.00 130,622.75 8.063 1,489,377.25 112,591.50
Revenue Over/(Under) Approp 1,491,200.00 136,894.59- -9.180 1,628,094.59 21,614.80
Item 4c
.
gluser_r&a2 lheikkinen Town of Prosper Page 6
10:22 06/04/13 Rev/Exp Fund Category Rept (3)
Fund:
Period Ending: 4/2013
Account Number Description Current Current Percent YTD Current Current
Year YTD % Remaining Month
Adopted Actual Budget Actual
IMPACT FEES FUND
Revenue
Investment Income 20,000.00- 24,309.59- 121.548 4,309.59 3,897.47-
Impact Fees 2,600,000.00- 1,127,431.75- 50.278 1,472,568.25- 257,452.00-
Total Revenues 2,620,000.00- 1,151,741.34- 50.822 1,468,258.66- 261,349.47-
Appropriations
Contractual/Professional Servi 1,535,000.00 144,492.71 9.413 1,390,507.29 91,019.03
Capital 4,628,000.00 114,292.00 2.470 4,513,708.00
Interfund Transfers Out
Total Appropriations 6,163,000.00 258,784.71 4.199 5,904,215.29 91,019.03
Revenue Over/(Under) Approp 3,543,000.00 892,956.63- -30.278 4,435,956.63 170,330.44-
SPECIAL REVENUE DONATION FUND
Revenue
Court Fees 6,900.00- 4,196.05- 60.812 2,703.95- 950.85-
Contributions 43,500.00- 26,794.41- 67.058 16,705.59- 4,695.66-
Escrow Income 3,984,914.06- 3,984,914.06 90,944.59-
Grants 2,000.00- 2,000.00-
Miscellaneous
Total Revenues 52,400.00- 4,015,904.52- 7,668.474 3,963,504.52 96,591.10-
Item 4c
.
gluser_r&a2 lheikkinen Town of Prosper Page 7
10:22 06/04/13 Rev/Exp Fund Category Rept (3)
Fund:
Period Ending: 4/2013
Account Number Description Current Current Percent YTD Current Current
Year YTD % Remaining Month
Adopted Actual Budget Actual
Appropriations (Sp. Rev.)
Town Services/Maintenance 59,200.00 4,849,345.88 8,192.229 4,790,145.88- 228,817.05
Total Appropriations 59,200.00 4,849,345.88 8,192.229 4,790,145.88- 228,817.05
Revenue Over/(Under) Approp 6,800.00 833,441.36 ############### 826,641.36- 132,225.95
CAPITAL PROJECTS FUND
Revenue
Grants/Reimbursements 235,000.00- 170.213 235,000.00-
Investment Income 7,000.00- 10,024.20- 143.203 3,024.20 1,074.61-
Interfund Transfers In
Bond Proceeds 3,880,000.00- 3,880,000.00
Total Revenue 242,000.00- 3,890,024.20- 1,772.737 3,648,024.20 1,074.61-
Appropriations
Contractual/Professional Servi 101,085.00 69,931.11 72.908 31,153.89 8,018.59
Capital 4,400,000.00 6,383,942.92 145.090 1,983,942.92- 443,201.98
Bond Costs 46,815.19 46,815.19-
Total Interfund Transfers Out
Total Appropriations 4,501,085.00 6,500,689.22 144.509 1,999,604.22- 451,220.57
Revenue Over/(Under) Approp 4,259,085.00 2,610,665.02 51.993 1,648,419.98 450,145.96
Item 4c
.
gluser_r&a2 lheikkinen Town of Prosper Page 8
10:22 06/04/13 Rev/Exp Fund Category Rept (3)
Fund:
Period Ending: 4/2013
Account Number Description Current Current Percent YTD Current Current
Year YTD % Remaining Month
Adopted Actual Budget Actual
ECONOMIC DEVELOPMENT CORP
Revenues
Sales Tax 466,667.00- 437,574.07- 93.766 29,092.93- 55,582.64-
Investment Income 20,000.00- 12,822.40- 64.112 7,177.60- 1,694.48-
Other Income 31.29- 31.29
Total Revenues 486,667.00- 450,427.76- 92.554 36,239.24- 57,277.12-
Appropriations
Personnel 204,475.00 111,963.18 58.751 92,511.82 16,145.15
Maintenance & Supplies 7,000.00 1,965.78 46.808 5,034.22 190.97
Town Services/Maintenance 38,200.00 48,436.38 127.466 10,236.38- 16,844.96
Contractual/Professional Servi 93,900.00 66,138.42 73.214 27,761.58 4,059.16
Capital 104,000.00 500,000.00 480.769 396,000.00-
Interfund Transfer Out 405.00 405.00
Total Appropriations 447,980.00 728,503.76 165.375 280,523.76- 37,240.24
Revenue Over/(under) Approp 38,687.00- 278,076.00 -750.694 316,763.00- 20,036.88-
Item 4c
Page 1 of 2
To: Mayor and Town Council
From: Harlan Jefferson, Town Manager
Re: Town Council Meeting – June 11, 2013
Agenda Item:
Consider and act upon Ordinance No. 13-38 approving and adopting rate schedule “RRM –
Rate Review Mechanism” for ATMOS Energy Corporation, Mid-Tex Division.
Description of Agenda Item:
The Town, along with 154 other municipalities served by Atmos Energy Corporation, Mid-Tex
Division (“Atmos Mid-Tex” or “Company”), is a member of the Atmos Cities Steering Committee
(“ACSC” or “Steering Committee”). In 2007, ACSC and Atmos Mid-Tex agreed to implement
an annual rate review mechanism for Atmos Mid-Tex, known as the Rate Review Mechanism
(“RRM”), as a temporary replacement for the statutory mechanism known as GRIP (the “Gas
Reliability Infrastructure Program”). ACSC strongly opposes the GRIP process because it
constitutes piecemeal ratemaking, does not allow any review by cities of the reasonableness of
capital expenditures, and does not allow participation by municipalities in the Railroad
Commission’s review of the annual GRIP filings, or recovery by municipalities of their rate case
expenses. The Railroad Commission undertakes only an administrative review of GRIP filings
(instead of a full hearing) and the rate increases go into effect without any material adjustments.
In ACSC’s view, the GRIP process unfairly raises customers’ rates without any real regulatory
oversight. In contrast, the RRM process has allowed for a more comprehensive rate review and
annual adjustment as a substitute for GRIP filings.
The first RRM tariff expired in 2011, and although ACSC and Atmos Mid-Tex met many times to
attempt to reach an agreement on a renewed or replacement tariff, they were unable to do so.
Atmos Mid-Tex filed a full rate case in 2012. The resulting rates were approved by the Railroad
Commission in December 2012 in G.U.D. No. 10170.
ACSC and the Company renewed discussions to develop revisions to the RRM tariff, and have
reached a tentative agreement on the form of the RRM tariff to be in effect for a four-year period
from 2013 to 2017. If the RRM process is to continue to function as a substitute for the GRIP
process, municipalities that exercise original jurisdiction must adopt a tariff that authorizes the
process. For the reasons outlined above, the ACSC Executive Committee and ACSC legal
counsel recommend approval of the new RRM tariff by all ACSC member municipalities.
Budget Impact:
None.
Prosper is a place where everyone matters.
ADMINISTRATION
Item 4d
Page 2 of 2
Legal Obligations and Review:
Terry Welch with Brown & Hofmeister, L.L.P., has reviewed the proposed Ordinance as to form
and legality.
Attached Documents:
1. Draft Ordinance No. 13-38 approving and adopting rate schedule “RRM – Rate Review
Mechanism” for ATMOS Energy Corporation, Mid-Tex Division.
2. Reasons Justifying Approval of the Negotiated RRM Tariff.
3. The New RRM: How Does It Stack Up?
Town Staff Recommendation:
Town staff recommends the Town Council adopt the attached ordinance approving and
adopting rate schedule “RRM – Rate Review Mechanism” for ATMOS Energy Corporation, Mid-
Tex Division.
Item 4d
TOWN OF PROSPER, TEXAS ORDINANCE NO. 13-38
AN ORDINANCE OF THE TOWN COUNCIL OF THE TOWN OF
PROSPER, TEXAS, APPROVING AND ADOPTING RATE SCHEDULE
“RRM – RATE REVIEW MECHANISM” FOR ATMOS ENERGY
CORPORATION, MID-TEX DIVISION TO BE IN FORCE IN THE
TOWN FOR A PERIOD OF TIME AS SPECIFIED IN THE RATE
SCHEDULE; ADOPTING A SAVINGS CLAUSE; DETERMINING THAT
THIS ORDINANCE WAS PASSED IN ACCORDANCE WITH THE
REQUIREMENTS OF THE TEXAS OPEN MEETINGS ACT;
DECLARING AN EFFECTIVE DATE; AND REQUIRING DELIVERY OF
THIS ORDINANCE TO THE COMPANY AND ACSC LEGAL COUNSEL.
WHEREAS, the Town of Prosper, Texas (“Town”) is a gas utility customer of Atmos
Energy Corp., Mid-Tex Division (“Atmos Mid-Tex” or “the Company”), and a regulatory
authority with an interest in the rates and charges of Atmos Mid-Tex; and
WHEREAS, the Town is a member of the Atmos Cities Steering Committee (“ACSC”), a
coalition of cities, most of whom retain original jurisdiction over the rates and services of Atmos
Mid-Tex; and
WHEREAS, in 2007 ACSC member cities and Atmos Mid-Tex collaboratively
developed the Rate Review Mechanism (“RRM”) Tariff that allows for an expedited rate review
process controlled by cities as a substitute for the legislatively-constructed Gas Reliability
Infrastructure Program (“GRIP”); and
WHEREAS, the GRIP mechanism does not permit the Town to review rate increases,
and constitutes piecemeal ratemaking; and
WHEREAS, the RRM process permits Town review of requested rate increases and
provides for a holistic review of the true cost of service for Atmos Mid-Tex; and
WHEREAS, the initial RRM tariff expired in 2011; and
WHEREAS, ACSC’s representatives have worked with Atmos Mid-Tex to negotiate a
renewal of the RRM process that avoids litigation and Railroad Commission filings; and
WHEREAS, the ACSC’s Executive Committee and ACSC’s legal counsel recommend
ACSC members approve the negotiated new RRM tariff; and
WHEREAS, the attached Rate Schedule “RRM – Rate Review Mechanism” (“RRM
Tariff”) provides for a reasonable expedited rate review process that is a substitute for, and is
superior to, the statutory GRIP process; and
Item 4d
Ordinance No. 13-38, Page 2
WHEREAS, the expedited rate review process as provided by the RRM Tariff avoids
piecemeal ratemaking; and
WHEREAS, the RRM tariff reflects the ratemaking standards and methodologies
authorized by the Railroad Commission in the most recent Atmos Mid-Tex rate case, G.U.D. No.
10170; and
WHEREAS, the RRM Tariff provides for an annual reduction in Atmos Mid-Tex’s
requested rate increase of at least $3 million; and
WHEREAS, the RRM Tariff provides for a lower customer charge than if Atmos Mid-
Tex pursued GRIP filings; and
WHEREAS, the attached RRM Tariff as a whole is in the public interest.
NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE
TOWN OF PROSPER, TEXAS, THAT:
SECTION 1. Findings. The findings set forth in this Ordinance are hereby in all things
approved.
SECTION 2. The Town Council finds that the RRM Tariff, which is attached hereto
and incorporated herein as Attachment “A,” is reasonable and in the public’s best interest,
and is hereby in force and effect in the Town.
SECTION 3. To the extent any resolution or ordinance previously adopted by the Town
Council is inconsistent with this Ordinance, it is hereby repealed, but such repeal shall not abate
any pending prosecution for violation of the repealed ordinance or resolution, nor shall the repeal
prevent a prosecution from being commenced for any violation if occurring prior to the repeal of
the ordinance or resolution. Any remaining portions of said ordinance or resolution shall remain
in full force and effect.
SECTION 4. The meeting at which this Ordinance was approved was in all things
conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code,
Chapter 551.
SECTION 5. If any one or more sections or clauses of this Ordinance is judged to be
unconstitutional or invalid, such judgment shall not affect, impair or invalidate the remaining
provisions of this Ordinance and the remaining provisions of the Ordinance shall be interpreted
as if the offending section or clause never existed.
SECTION 6. This Ordinance shall become effective from and after its passage.
Item 4d
Ordinance No. 13-38, Page 3
SECTION 7. A copy of this Ordinance shall be sent to Atmos Mid-Tex, care of
Christopher Felan, Vice President of Rates and Regulatory Affairs for Atmos Mid-Tex Division,
Atmos Energy Corporation, 5420 LBJ Freeway, Suite 1600, Dallas, Texas 75240, and to
Geoffrey Gay, General Counsel to ACSC, at Lloyd Gosselink Rochelle & Townsend, P.C., 816
Congress Avenue, Suite 1900, Austin, Texas 78701.
DULY PASSED AND APPROVED BY THE TOWN COUNCIL OF THE TOWN
OF PROSPER, TEXAS, ON THIS THE 11TH DAY OF JUNE, 2013.
__________________________________
Ray Smith, Mayor
ATTEST:
_________________________________
Robyn Battle, Town Secretary
APPROVED AS TO FORM AND LEGALITY:
_________________________________
Terrence S. Welch, Town Attorney
Item 4d
Ordinance No. 13-38, Page 4
Attachment “A”
ATMOS ENERGY CORPORATION
MID-TEX DIVISION
RATE SCHEDULE: RRM – Rate Review Mechanism
APPLICABLE TO: ALL AREAS IN THE MID-TEX DIVISION EXCEPT THE CITY OF DALLAS
CUSTOMERS
EFFECTIVE DATE:
Bills Rendered on and after October 15, 2013
I. Applicability
Applicable to Residential, Commercial, Industrial, and Transportation tariff customers in the
Mid-Tex Division of Atmos Energy Corporation (“Company”) except such customers within the
City of Dallas. This Rate Review Mechanism (“RRM”) provides for an annual adjustment to the
Company’s Rate Schedules R, C, I and T (“Applicable Rate Schedules”). Rate calculations and
adjustments required by this tariff shall be determined on a System-Wide cost basis.
II. Definitions
“Test Period” is defined as the twelve months ending December 31 of each preceding calendar
year.
The “Effective Date” is the date that adjustments required by this tariff are applied to customer
bills. The annual Effective Date is June 1. The 2013 filing Effective Date is October 15, 2013.
Unless otherwise noted in this tariff, the term “Final Order” refers the final order issued by the
Railroad Commission of Texas in GUD 10170.
The term “System-Wide” means all incorporated and unincorporated areas served by the
Company.
“Review Period” is defined as the period from the Filing Date until the Effective Date.
The “Filing Date” is as early as practicable but no later than March 1 of each year with the
exception of 2013, which shall have a Filing Date of July 15, 2013. The last annual Effective
Date is June 1, 2017.
III. Calculation
The RRM shall calculate an annual, System-Wide cost of service (“COS”) that will be used to
adjust applicable rate schedules prospectively as of the Effective Date. The annual cost of service
will be calculated according to the following formula:
COS = OM + DEP + RI + TAX + CD - ADJ
Item 4d
Ordinance No. 13-38, Page 5
Where:
OM = all reasonable and necessary operation and maintenance expenses from the Test
Period adjusted for known and measurable items and prepared consistent with the rate
making treatments approved in the Final Order. Known and measurable adjustments
shall be limited to those changes that have occurred prior to the Filing Date. OM may
be adjusted for atypical and non-recurring items. Shared Services allocation factors
shall be recalculated each year based on the latest component factors used during the
Test Period, but the methodology used will be that approved in the Final Order.
DEP = depreciation expense calculated at depreciation rates approved by the Final Order.
RI = return on investment calculated as the Company's pretax return multiplied by rate
base at Test Period end. Rate base is prepared consistent with the rate making
treatments approved in the Final Order, except that no post Test Period adjustments
will be permitted. Pretax return is the Company's weighted average cost of capital
before income taxes. The Company's weighted average cost of capital is calculated
using the methodology from the Final Order including the Company's actual capital
structure and long term cost of debt as of the Test Period end (adjusted for any known
and measurable changes) and the return on equity from the Final Order. However, in
no event will the percentage of equity exceed 55%. Regulatory adjustments due to
prior regulatory rate base adjustment disallowances will be maintained. Cash
working capital will be calculated using the lead/lag days approved in the Final
Order. With respect to pension and other postemployment benefits, the Company
will record a regulatory asset or liability for these costs until the amounts are included
in the next annual rate adjustment implemented under this tariff. Each year, the
Company’s filing under this Rider RRM will clearly state the level of pension and
other postemployment benefits recovered in rates.
TAX = income tax and taxes other than income tax from the Test Period adjusted for known
and measurable changes occurring after the Test Period and before the Filing Date,
and prepared consistent with the rate making treatments approved in the Final Order.
CD = interest on customer deposits.
ADJ = Downward adjustment to the overall, System-Wide test year cost of service in the
amount of $3,000,000.00, adjusted by a percentage equal to the total percentage
increase in base-rate revenue sought pursuant to this tariff.
IV. Annual Rate Adjustment
The Company shall provide schedules and work papers supporting the Filing’s revenue
deficiency/sufficiency calculations using the methodology accepted in the Final Order. The
result shall be reflected in the proposed new rates to be established for the effective period. The
Revenue Requirement will be apportioned to customer classes in the same manner that
Item 4d
Ordinance No. 13-38, Page 6
Company’s Revenue Requirement was apportioned in the Final Order. For the Residential Class,
40% of the increase may be recovered in the customer charge. The increase to the Residential
customer charge shall not exceed $0.50 per month in any given year. The remainder of the
Residential Class increase not collected in the customer charge will be recovered in the usage
charge. The Company will forgo any change in the Residential customer charge with the first
proposed rate adjustment pursuant to this tariff. For all other classes, the change in rates will be
apportioned between the customer charge and the usage charge, consistent with the Final Order.
Test Period billing determinants shall be adjusted and normalized according to the methodology
utilized in the Final Order.
V. Filing
The Company shall file schedules annually with the regulatory authority having original
jurisdiction over the Company's rates on or before the Filing Date that support the proposed rate
adjustments. The schedules shall be in the same general format as the cost of service model and
relied-upon files upon which the Final Order was based. A proof of rates and a copy of current
and proposed tariffs shall also be included with the filing. The filing shall be made in electronic
form where practical. The Company’s filing shall conform to Minimum Filing Requirements (to
be agreed upon by the parties), which will contain a minimum amount of information that will
assist the regulatory authority in its review and analysis of the filing. The Company and
regulatory authority will endeavor to hold a technical conference regarding the filing within ten
(10) calendar days after the Filing Date.
The 2013 Filing Date will be July 15, 2013.
A sworn statement shall be filed by an Officer of the Company affirming that the filed schedules
are in compliance with the provisions of this Rate Review Mechanism and are true and correct to
the best of his/her knowledge, information, and belief. No testimony shall be filed, but a brief
narrative explanation shall be provided of any changes to corporate structure, accounting
methodologies, allocation of common costs, or atypical or non- recurring items included in the
filing.
VI. Evaluation Procedures
The regulatory authority having original jurisdiction over the Company's rates shall review and
render a decision on the Company's proposed rate adjustment prior to the Effective Date. The
Company shall provide all supplemental information requested to ensure an opportunity for
adequate review by the relevant regulatory authority. The Company shall not unilaterally impose
any limits upon the provision of supplemental information and such information shall be
provided within seven (7) working days of the original request. The regulatory authority may
propose any adjustments it determines to be required to bring the proposed rate adjustment into
compliance with the provisions of this tariff.
The regulatory authority may disallow any net plant investment that is not shown to be prudently
incurred. Approval by the regulatory authority of net plant investment pursuant to the provisions
of this tariff shall constitute a finding that such net plant investment was prudently incurred.
Item 4d
Ordinance No. 13-38, Page 7
Such finding of prudence shall not be subject to further review in a subsequent RRM or
Statement of Intent filing.
During the Review Period, the Company and the regulatory authority will work collaboratively
and seek agreement on the level of rate adjustments. If, at the end of the Review Period, the
Company and the regulatory authority have not reached agreement, the regulatory authority shall
take action to modify or deny the proposed rate adjustments. The Company shall have the right
to appeal the regulatory authority's action to the Railroad Commission of Texas. Upon the filing
of an appeal of the regulatory authority's order relating to an annual RRM filing with the
Railroad Commission of Texas, the regulatory authority having original jurisdiction over the
Company's rates shall not oppose the implementation of the Company's proposed rates subject to
refund, nor will the regulatory authority advocate for the imposition of a third party surety bond
by the Company. Any refund shall be limited to and determined based on the resolution of the
disputed adjustment(s) in a final, non-appealable order issued in the appeal filed by the Company
at the Railroad Commission of Texas.
In the event that the regulatory authority and Company agree to a rate adjustment(s) that is
different from the adjustment(s) requested in the Company’s filing, the Company shall file
compliance tariffs consistent with the agreement. No action on the part of the regulatory
authority shall be required to allow the rate adjustment(s) to become effective on June 1. To the
extent that the regulatory authority does not take action on the Company's RRM filing by May
31, the rates proposed in the Company's filing shall be deemed approved effective June 1. (2013
filing RRM rate will be effective October 15, 2013 if no action is taken). Notwithstanding the
preceding sentence, a regulatory authority may choose to take affirmative action to approve a
rate adjustment under this tariff. In those instances where such approval cannot reasonably occur
by May 31, the rates finally approved by the regulatory authority shall be deemed effective as of
June 1.
To defray the cost, if any, of regulatory authorities conducting a review of the Company's annual
RRM filing, the Company shall reimburse the regulatory authorities on a monthly basis for their
reasonable expenses incurred upon submission of invoices for such review. Any reimbursement
contemplated hereunder shall be deemed a reasonable and necessary operating expense of the
Company in the year in which the reimbursement is made. A regulatory authority seeking
reimbursement under this provision shall submit its request for reimbursement to the Company
no later than August 1 of the year in which the RRM filing is made and the Company shall
reimburse regulatory authorities in accordance with this provision on or before August 30 of the
year the RRM filing is made.
To the extent possible, the provisions of the Final Order shall be applied by the regulatory
authority in determining whether to approve or disapprove of Company’s proposed rate
adjustment.
This Rider RRM does not limit the legal rights and duties of a regulatory authority. Nothing
herein shall abrogate the jurisdiction of the regulatory authority to initiate a rate proceeding at
any time to review whether rates charged are just and reasonable. Similarly, the Company
retains its right to utilize the provisions of Texas Utilities Code, Chapter 104, Subchapter C to
Item 4d
Ordinance No. 13-38, Page 8
request a change in rates. The provisions of this Rider RRM are implemented in harmony with
the Gas Utility Regulatory Act (Texas Utilities Code, Chapters 101-105).
The annual rate adjustment process set forth in this tariff shall remain in effect during the
pendency of any Statement of Intent rate filing.
VII. Reconsideration, Appeal and Unresolved Items
Orders issued pursuant to this mechanism are ratemaking orders and shall be subject to appeal
under Sections 102.001(b) and 103.021, et seq., of the Texas Utilities Code (Vernon 2007).
VIII. Notice
Notice of each annual RRM filing shall be provided by including the notice, in conspicuous
form, in the bill of each directly affected customer no later than forty-five (45) days after the
Company makes its annual filing pursuant to this tariff. The notice to customers shall include
the following information:
a) a description of the proposed revision of rates and schedules;
b) the effect the proposed revision of rates is expected to have on the rates applicable to
each customer class and on an average bill for each affected customer;
c) the service area or areas in which the proposed rates would apply;
d) the date the annual RRM filing was made with the regulatory authority; and
e) the Company’s address, telephone number and website where information concerning the
proposed rate adjustment be obtained.
Item 4d
Reasons Justifying Approval of the Negotiated RRM Tariff:
In the opinion of ACSC’s Executive Committee, the RRM process is a better deal for customers
than the GRIP process. Atmos Mid-Tex has stated if it were to file for a rate adjustment in 2013 under
the GRIP provisions, it would request approximately $5 million more in rate relief than it plans to
request in a filing under this revised RRM tariff. ACSC assumes that is because the GRIP process only
evaluates changes to capital investment. The RRM process looks at revenues (that may be increasing)
and expenses (that may be declining), as well as capital investment.
Additionally, the statute authorizing the GRIP rate adjustment process allows the Company to
place the entirety of any rate increase in the unavoidable monthly customer charge portion of its rates. If
the Company were to file for an increase under the GRIP provisions, the entire amount of the increase
would be collected through the fixed portion of the bill, rather than the volumetric charge that varies by
a customer’s usage. Between 2007 and 2012, ACSC was able to negotiate rate design results that
constrained residential customer charges to the $7.00 to $7.50 range. However, the Railroad
Commission has recently raised the residential customer charge to $17.70.
The Company has agreed that for the first filing under the revised RRM tariff, there will be no
increase to the residential customer charge. Thus, some of the primary benefits of the attached RRM
tariff are that it moderates the impact of rate adjustments on residential customers by not changing the
residential customer charge for the first RRM period. In subsequent years only 40% of the proposed
increase in revenues to the residential class will be recovered through the fixed customer charge, and in
no event will the residential customer charge increase by more than $.50 per month. No such constraints
exist under the GRIP process.
Additionally, the attached RRM tariff provides a discount as an incentive for cities permitting the
Company annual rate relief. The RRM tariff includes an adjustment amount that is a reduction to the
Company’s requested increase. The adjustment lowers the Company’s rate request by at least $3 million
each year. Additional reductions will also be made each year depending on the size of the Company’s
requested increase. The attached RRM tariff also caps at 55% the percentage of equity that can be used
to calculate the Company’s capital structure. Railroad Commission policy allows rates to be based on a
parent company’s actual capital structure, which for Atmos could mean increases in equity above the
most recent level of 52%.
Under the RRM tariff, cities are also able to review the Company’s annual expenses and capital
investments and make adjustments, or disallowances, for any such expenses or investments that are
considered to be unreasonable or unnecessary. The cities’ costs in reviewing the annual filings, such as
fees associated with the hiring of expert consultants and legal counsel, will be reimbursed by the
Company on a monthly basis.
If cities do not approve the RRM tariff, the Company has stated that it will reinstitute its annual
filings under the GRIP provisions. The anticipated GRIP adjustment for 2013 would be approximately
$5 million higher than the Company anticipates requesting through an RRM filing. Additionally, GRIP
rate adjustments would place the entire amount of the Company’s requested increase into the customer
charge. The ACSC Executive Committee recommends that ACSC city members take action to approve
the Ordinance authorizing the RRM tariff.
Item 4d
The New RRM: How Does It Stack Up?
RRM (2007-2011) GRIP
• Negotiated limits to the amount of increase included in
customer charge.
• All increases included in customer charge.
• Less money requested from ratepayers, because it considers
the Company’s entire cost of providing service, including
declining expenses.
• More costly to ratepayers, because it does not consider the
Company’s entire cost of providing service, including
declining expenses.
• Cities can review reasonableness of expenses and negotiate
disallowances.
• Cities have no input as to reasonableness or recovery of
expenses.
• Reimbursement of Cities’ rate case expenses. • No reimbursement of Cities’ rate case expenses.
• Cities can order reductions to requested increase. • No reduction in requested increase.
• Better working relationship between Cities and Company. • Poorer working relationship between Cities and Company.
New RRM Tariff
• Includes limits on percentage of increase to be included in
monthly customer charge.
• Shorter turn-around on discovery.
• Technical conference to expedite receipt of information
from Company.
• No post-test year adjustments.
• Time limit for O&M known and measurable adjustments.
• Reduction in requested increase of at least $3 million each
year.
• Tracks the methodologies approved by the Railroad
Commission in the most recent Mid-Tex rate case.
Item 4d
Page 1 of 2
To: Mayor and Town Council
From: Robert Winningham, Prosper EDC Executive Director
Through: Harlan Jefferson, Town Manager
Re: Town Council Meeting – June 11, 2013
Agenda Item:
Consider and take action upon recommendation by the Prosper Economic Development
Corporation for adoption of Tax Abatement Policy 2013.
Description of Agenda Item:
Every two years, the State Comptroller’s Office requires that a city or town offering tax
abatement as an incentive for economic development submit a set of guidelines approved by
the city or town’s council. The last time tax abatement guidelines were passed by the Prosper
Town Council was 2005.
According to the Town of Prosper Charter, the Prosper Economic Development Corporation
(PEDC) is charged with recommending to the Town Council for approval of the following: tax
abatement policy, tax abatement reinvestment zones, and tax abatement agreements. The
PEDC is also charged with monitoring agreements and when necessary, recommending any
termination or revisions to such agreements. Per state tax code, the PEDC cannot create a
reinvestment zone or authorize tax abatement; only the Town Council can create or eliminate
reinvestment zones and tax abatement agreements on newly created taxable investment.
The PEDC Executive Director met with the Town Manager and together they developed a set of
guidelines for tax abatement to be offered to existing or new businesses that create new taxable
investment. Highlights of the Tax Abatement Policy are as follows:
PEDC shall oversee the application process by businesses that request tax abatement
PEDC staff shall make a recommendation to the PEDC Board on tax abatement based on
information provided by the business in a Prospect Questionnaire
PEDC Board shall vote to recommend to the Town Council any tax abatement on new
investment
The Town Council has full authority to approve, deny or retract tax abatement per state tax code
Tax abatement must be codified in agreements that include “clawback” provisions that would go
into effect should the business not adhere to the agreement
State Tax Code states that tax abatement shall only occur in a reinvestment zone created by the
Town Council, and such abatement shall not exceed a term of ten years
Prosper is a place where everyone matters.
ADMINISTRATION
Item 6
Page 2 of 2
On May 22, 2013, the PEDC Board recommended that the Town Council adopt a Tax
Abatement Policy that was developed by the PEDC Executive Director and Town Manager.
Legal Obligations and Review:
PEDC Attorney Pete Smith reviewed and approved the recommended Tax Abatement Policy
2013.
Attached Documents:
1. Chart of tax abatement offered by surrounding towns/cities
2. Draft Tax Abatement Policy recommended by the Prosper EDC Board
Town Staff Recommendation:
PEDC Board recommends the Town Council adopt the attached Tax Abatement Policy 2013.
Item 6
Name of City Threshold of AbatementTerm of Abatement Amount of Abatement (%) Who Monitors ProcessGuidelinesPlanoNo minimumNo minimumUp to 100%> City Council approves abatements> City Finance Department oversees compliance> Every tax abatement consideration is on a case‐by‐case basisHow many jobs? Types of jobs? Value of the Real and Business Personal Property? Direct sales tax generated? What beneficial economic impact will the project have on the community?FriscoAt least $1M investment10 years max25% avg, max out at 50% > Negotiation with Executive Director and City Manager> Approval by City Council> City finance dept. oversees complianceHave spreasheet that calculates impact analysis over life of the abatement to determine if project is worthy of abatement. Each project considered for tax abatement is taken on a case‐by‐case basis.McKinneyAt least $1M investment, minimum 10 jobs Nothing under 5 years 50% maximum> City Council approves abatements> EDC oversees complianceLarge portion of tax abatement incentive negotiations are evaluated on a case‐by‐case basis depending on the size and scope of the project.AllenAt least $5M assessed valueUp to 10 years 40% maximum> City Council approves abatements> EDC oversees complianceTax abatement incentives are recommended on a case‐by‐case basis by the AEDC with Council making final decision.Richardson Case‐by‐case, but generally minimum of $5M of assessed value5 ‐ 10 years25 ‐ 50% typically; 100% maximum> City Council approves abatement> City Manager has large influence on decisionIncentives are evaluated on a case‐by‐case basis rather than by formula. Richardson customizes its incentive packages to maximize benefits that are of greatest value to the specific company and project.Tax Abatement Criteria for Select Area MunicipalitiesItem 6
EXHIBIT “A”
TOWN OF PROSPER
TAX ABATEMENT POLICY 2013
I. GENERAL PURPOSE AND OBJECTIVES:
The Town of Prosper is committed to the promotion of high quality development in all parts of
the Town and to an ongoing improvement in the quality of life for its citizens. Insofar as these
objectives are generally served by the enhancement and expansion of the local economy, the
Town of Prosper will, on a case-by-case basis, give consideration to providing tax abatement as a
stimulus for economic development. It is the policy of the Town of Prosper that said
consideration will be provided in accordance with the guidelines presented in this document.
Nothing herein shall imply or suggest that the Town of Prosper is under any obligation to provide
tax abatement to any applicant.
All applicants shall be considered on a case-by-case basis, and any tax abatement agreements are
subject to approval by the Prosper Town Council. Additionally, all agreements shall include
“clawback” provisions that go into effect should the applicant not adhere to the terms of the
agreement; the Town Council shall have final say on the implementation of any penalties per the
provisions of the agreement.
II. PROSPER ECONOMIC DEVELOPMENT CORPORATION ON TAX ABATEMENT:
Requests for tax abatement shall be reviewed by the Board of Directors of the Prosper Economic
Development Corporation (PEDC). The PEDC Board will review each request. Deliberation by
the PEDC Board relative to the potential impact of a requested abatement will be based on
information prepared by the requesting party in conjunction with the PEDC Executive Director.
Further, the PEDC Executive Director shall collaborate with the Prosper Town Manager on any
tax abatement requests. On judging the potential impact of a request, the PEDC Board shall
consider the degree to which the project furthers the economic development and general goals of
local taxing entities in support of the Prosper community.
The PEDC Board of Directors is responsible for (1) reviewing all information submitted by the
applicant with officials representing local taxing entities, (2) communicating with and updating
these officials as to the status of all applications, and (3) developing a recommendation for
consideration by the respective governing bodies. The PEDC Board and the Executive Director
are responsible for communicating to the citizens of Prosper as to the status of tax abatement
within the community, recommending the creation of reinvestment zones and individual tax
abatement agreements. While the PEDC is charged with reviewing and recommending
applications for tax abatement, the PEDC has no legal authority to grant tax abatement. Further,
the PEDC shall monitor compliance of all agreements and recommend any action necessary to be
taken by the Town Council for non-compliance.
III. GUIDELINES FOR TAX ABATEMENT:
The primary factor determining whether or not tax abatement will be approved is the value of
structure and/or business personal property to be added. The creation of jobs, financial
implications and community development projections will also be considered in a request for tax
abatement.
Item 6
IV. TAX ABATEMENT PROCEDURES:
The procedures as hereinafter delineated shall be utilized in the implementation of the tax
abatement program for the Town of Prosper.
Tax abatement applicants shall complete and submit an application for tax abatement as
prescribed by the Executive Director for the Town of Prosper. While the specific contents of
application may vary, it is expected that the information requested will reveal the precise location
of the property, provide a complete legal description (if the property is described by metes and
bounds), provide projected job growth, and provide estimations for the projected capital
investment.
Applicants shall complete all information detailed in this document or other material as may be
required and submit them to the Prosper Economic Development Corporation, care of the
Executive Director, at the address listed on the PEDC website, www.prosperedc.com.
Application Review Steps:
A. All information in the application package detailed above will be reviewed for completeness and
accuracy. Additional information may be requested as needed.
B. The application may be distributed to the appropriate Town departments for internal review and
comments. Additional information may be requested as needed.
C. Copies of the complete application package and staff comments will be provided to the PEDC Board
of Directors. The PEDC Board will consider the application at a regular or called meeting(s).
D. The findings of the PEDC Board will be forwarded, with all relevant materials, to the chief
administrative officer of each taxing entity.
E. The Prosper Town Council may call a public hearing to consider establishment of a tax abatement
reinvestment zone. The amount and length of abatement may vary among tax abatement
reinvestment zones approved by the Town Council.
F. The Prosper Town Council may hold a public hearing to determine whether the project is feasible
and would be of benefit to the land to be included in the zone and to the municipality.
G. The Prosper Town Council may consider adoption of an ordinance designating the area in the legal
description of the proposed project as a commercial industrial tax abatement reinvestment zone.
H. The Town Council may consider adoption of a resolution or ordinance approving the terms and
conditions of a contract between the Town and the applicant governing the provision of tax
abatement.
I. The Collin County Commissioners Court may consider ratification of and participation in the tax
abatement agreement between the Town of Prosper and the applicant. The Prosper Independent
School District and Collin County Community College do not participate in tax abatement
agreements.
Item 6
Page 1 of 2
To: Mayor and Town Council
From: Matt Furr, Parks Superintendant
Through: Harlan Jefferson, Town Manager
Re: Town Council Meeting – June 11, 2013
Agenda Item:
Discussion on installation of recycling bins at Frontier Park.
Description of Agenda Item:
At the May 14, 2013, Town Council meeting, members of local Brownie Troop 1968 made a
presentation to the Town Council on their recent community project at Frontier Park. The
project included separating materials that were recyclable from the standard trash receptacles
at the baseball/softball complex at Frontier Park. The troops presentation requested that
recycle bins be placed at Frontier Park to ensure that eligible items do not get placed in the
standard trash receptacles. At the end of the Town Council meeting, staff was asked to bring
back a discussion item to the Town Council on the installation of recycling bins at Frontier Park.
Staff has researched the installation of recycling bins at Frontier Park and after discussion with
Progressive Waste Solutions (IESI), proposes the following trial program:
Prior to the start of the 2013 PYSA Fall Baseball/Softball Season, ten blue recycle bins
will be placed near each baseball/softball field next to the existing standard trash
receptacles as depicted on the attached map.
Each recycling bin will be supplied by IESI with holes cut into the top specifically for
plastic bottles and cans. The lids of the recycling bin will be secured to deter larger
items from being placed into the designated recycle bins.
Per IESI’s request, the Town will be responsible for the placement and removal of the
clear liners that fit into the recycling bins.
IESI will provide a separate recycling dumpster, at no charge to the Town, which will be
placed next to the existing trash dumpsters at 101 Dylan Drive, the current location for
the Parks Maintenance Building. This recycling dumpster will be emptied weekly by
IESI.
To give credit to local Brownie Troop 1968 for the recycling trial program, the troop will
design a sticker, which will identify the bin as recycling only, and IESI will pay for two
stickers on each bin.
The local Brownie Troop will have an opportunity to come out on Saturdays to
encourage all spectators to recycle.
Based on the results of the recycling bin trial program, staff will coordinate with IESI on whether
or not additional recycling bins are needed at the baseball/softball facility. In addition, the
program could be expanded seasonally to the rest of Frontier Park, including the soccer fields,
Frontier Park Pavilion, and Windmill Playground.
PARKS &
RECREATION
Prosper is a place where everyone matters.
Item 7
Page 2 of 2
Budget Impact:
The projected cost for the clear liners that fit into the recycling bins during the trial program is
$220. The funding for the trial program will be provided by the Parks and Recreation budget.
Legal Obligations and Review:
There are no legal obligations or review by the Town Attorney required.
Attached Documents:
Location Map showing placement of the ten blue recycling bins.
Town Staff Recommendation:
Staff recommends that the Town Council discuss and provide direction regarding the installation
of recycling bins at Frontier Park as a trial program for the fall baseball/softball season.
Motion: I make a motion to approve the installation of ten blue recycling bins at Frontier Park as
a trial program for the 2013 PYSA Fall Baseball/Softball Season as depicted on the location
map provided by Town staff.
Item 7
Item 7
Page 1 of 2
To: Mayor and Town Council
From: Harlan Jefferson, Town Manager
Re: Town Council Meeting – June 11, 2013
Agenda Item:
Consider and act upon Ordinance No. 13-40 amending the Town of Prosper’s Annual Budget
for the fiscal year beginning on October 1, 2012, and ending on September 30, 2013, as
adopted by Ordinance No. 12-28 and amended by Ordinance Nos. 12-39, 13-05, and 13-12, for
adjustments to the General Fund and Storm Drainage Utility Fund.
Description of Agenda Item:
The attached budget amendment represents the fourth proposed mid-year adjustment of the FY
2012-2013 Annual Budget. According to Section 7.09 of the Town Charter, “Under conditions
which may arise and which could not reasonably have been foreseen in the normal process of
planning the budget, the Town Council may, by the affirmative vote of a majority of the full
membership of the Town Council, amend or change the budget to provide for any additional
expense in which the general welfare of the citizenry is involved.” Transfers such as these are
presented to the Town Council throughout the fiscal year in an effort to resolve variances in the
Annual Budget and reallocate resources to cover unanticipated expenditures.
The budget amendment will transfer appropriations for previously budgeted special events
(from Administration to Parks & Recreation) and a vehicle (from Parks & Recreation to
Building Inspections). Additionally, to accommodate requests from the sports organizations
as well as provide for additional practice space as discussed at the Town’s Strategic Planning
Workshop, funding for field improvements (including backstops), field preparation, and field
dressing is being requested. Unforeseen maintenance and electricity usage is also a part of
the budget amendment along with legal fees for park development agreements. The budget
amendment for the Storm Drainage Utility Fund is for a project in the northeast part of the
community.
The net budget amendment by fund and type of expense is as follows:
Re-occurring Expense One-Time Expense
General Fund $ 62,600 $122,300
Storm Drainage Utility Fund $ 0 $ 20,000
Prosper is a place where everyone matters.
ADMINISTRATION
Item 8
Page 2 of 2
Budget Impact:
This amends the FY 2012-2013 Annual Budget by the amounts listed to approve additional
expenditures that will be more than offset by revenues for the current fiscal year. As such, this
amendment will not negatively affect fund balances at year end. Staff projects that the General
Fund Revenues will exceed the original estimate by $780,000. Ninety percent of the expected
increase is from higher than expected sales taxes. Staff also projects that the Storm Drainage
Utility Fund revenues will exceed the original estimate by $20,000 due to faster growth in the
customer base than anticipated.
Legal Obligations and Review:
Terry Welch with Brown & Hofmeister, L.L.P., has reviewed the proposed Ordinance as to form
and legality.
Attached Documents:
1. Draft Ordinance No. 13-40 Amending the FY 2012-2013 Annual Budget
Town Staff Recommendation:
Town staff recommends that the Town Council take action to approve the amendment.
“I move to approve Ordinance No. 13-40 amending the Town of Prosper’s Annual Budget for the
fiscal year beginning on October 1, 2012, and ending on September 30, 2013, as adopted by
Ordinance No. 12-28 and amended by Ordinance Nos. 12-39, 13-05, and 13-12, for
adjustments to the General Fund and Storm Drainage Utility Fund.
Item 8
TOWN OF PROSPER, TEXAS ORDINANCE NO. 13-40
AN ORDINANCE OF THE TOWN OF PROSPER, TEXAS, AMENDING
THE TOWN’S BUDGET FOR THE FISCAL YEAR BEGINNING ON
OCTOBER 1, 2012, AND ENDING ON SEPTEMBER 30, 2013, AS
ADOPTED BY ORDINANCE NO. 12-28 (FY 2012-2013 ANNUAL
BUDGET) AND AMENDED BY ORDINANCE NO. 12-39, ORDINANCE
NO. 13-05, AND ORDINANCE NO. 13-12; FOR ADJUSTMENTS TO THE
GENERAL FUND AND STORM DRAINAGE UTILITY FUND;
PROVIDING THAT EXPENDITURES FOR SAID FISCAL YEAR SHALL
BE MADE IN ACCORDANCE WITH SAID BUDGET, AS AMENDED;
REPEALING ALL CONFLICTING ORDINANCES; PROVIDING A
SEVERABILITY CLAUSE; AND PROVIDING FOR AN EFFECTIVE
DATE OF THIS ORDINANCE.
WHEREAS, the Town Council of the Town of Prosper, Texas (“Town Council”) has
heretofore adopted its Annual Budget for the fiscal year beginning on October 1, 2012, and
ending on September 30, 2013; and,
WHEREAS, said Annual Budget was adopted by Ordinance No. 12-28 on September
25, 2012, and amended by Ordinance Nos. 12-39, 13-05, and 13-12; and after approval of said
Ordinances, unexpected needs have arisen which require amendment of the Annual Budget
adopted thereby.
NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE
TOWN OF PROSPER, TEXAS, THAT:
SECTION 1: Findings Incorporated. The findings set forth above are incorporated into
the body of this Ordinance as if fully set forth herein.
SECTION 2: Amendment to Ordinance No. 12-28 (FY 2012-2013 Annual Budget).
Ordinance No. 12-28 (FY 2012-2013 Annual Budget) is hereby amended to allow for increases
or decreases to appropriations as shown in Exhibit “A,” attached hereto and incorporated herein.
SECTION 3: Unusual and/or Unforeseen Conditions. The expenditures and amendments
authorized by this Ordinance are necessary to meet unusual and/or unforeseen conditions or
circumstances that could not have been included in the budget through the use of reasonably
diligent thought and attention.
SECTION 4: Savings/Repealing Clause. All provisions of any ordinance in conflict with
this Ordinance are hereby repealed; but such repeal shall not abate any pending prosecution for
violation of the repealed Ordinance, nor shall the repeal prevent prosecution from being
commenced for any violation if occurring prior to the repeal of the Ordinance. Any remaining
portions of conflicting ordinances shall remain in full force and effect.
SECTION 5: Severability. Should any section, subsection, sentence, clause or phrase of
this Ordinance be declared unconstitutional or invalid by a court of competent jurisdiction, it is
expressly provided that any and all remaining portions of this Ordinance shall remain in full
Item 8
Ordinance No. 13-40, Page 2
force and effect. Prosper hereby declares that it would have passed this Ordinance, and each
section, subsection, sentence, clause, or phrase thereof irrespective of the fact that any one or
more sections, subsections, sentences, clauses, or phrases be declared unconstitutional or invalid.
SECTION 6: Effective Date. This Ordinance shall become effective immediately upon its
passage.
DULY PASSED AND APPROVED BY THE TOWN COUNCIL OF THE TOWN
OF PROSPER, TEXAS, ON THIS THE 11TH DAY OF JUNE, 2013.
Ray Smith, Mayor
ATTEST:
Robyn Battle, Town Secretary
APPROVED AS TO FORM AND LEGALITY:
___________________________
Terrence S. Welch, Town Attorney
Item 8
Department Description Increase / (Decrease)Transfer Total
Administration Special Events (8,300.00)$ (8,300.00)$
Parks & Recreation Repairs and Maintenance 84,700.00$ 84,700.00$
Vehicle Expense 1,000.00$ 1,000.00$
Legal Expense 8,000.00$ 8,000.00$
Electricity 50,000.00$ 50,000.00$
Mileage 800.00$ 800.00$
Signs & Hardware 2,800.00$ 2,800.00$
Capital Expenditure 37,600.00$ (18,500.00)$ 19,100.00$
Special Events ‐8,300.00$ 8,300.00$
Building Inspection Capital Expenditure ‐18,500.00$ 18,500.00$
Grand Total 184,900.00$ ‐$ 184,900.00$
Reasons for Amending the Storm Drainage Utility Fund Appropriations:
Department Description Increase / (Decrease)Transfer Total
Administration Repairs and Maintenance 20,000.00$ ‐$ 20,000.00$
‐‐$ ‐$
Grand Total 20,000.00$ ‐$ 20,000.00$
Reasons for Amending the General Fund Appropriations:
Exhibit "A"
Town of Prosper
Fiscal Year 2012‐2013 Budget
Amendment #4
Appropriations for previously budgeted special events and a vehicle are being transferred to the appropriate
departments. Additionally, to accommodate requests from the sports organizations as well as to provide for
additional practice space as discussed at the Town’s Strategic Planning Workshop, funding for field improvements
(including backstops), field preparation, and field dressing is being requested. Unforeseen maintenance and
electricity usage is also a part of the budget amendment along with legal fees for park development agreements.
Appropriationsfor the installationof drainage improvements in the Gentle Creek Subdivision to alleviate erosion. The
drainage improvements include an inlet adjacent to the roadway and the necessary storm drainage pipe to convey
the drainage to the floodplain.
Item 8