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08.22.23Welcome to the August 22, 2023, Prosper Town Council Meeting Call to Order/Roll Call Invocation, Pledge of Allegiance, and Pledge to the Texas Flag Pledge to the Texas Flag Honor the Texas flag; I pledge allegiance to thee, Texas, one state under God, one and indivisible. Announcements Presentations Agenda Item 1. Presentation of THRIVES coins to members of the Prosper Police Department for outstanding performance. (DFB) Consent Agenda Agenda Item 2. Consider and act upon the minutes from the August 8, 2023, Town Council Work Session meeting. (MLS) Agenda Item 3. Consider and act upon the minutes from the August 8, 2023, Town Council Regular meeting. (MLS) Agenda Item 4. Receive the Quarterly Investment Report for June 30, 2023. (CL) Agenda Item 5. Consider and act upon an ordinance approving a Negotiated Settlement between the Atmos Cities Steering Committee and Atmos Energy Corporation, Mid-Tex Division regarding the Company’s 2023 Rate Review Mechanism Filing; declaring the existing rates to be unreasonable; finding the rates to be set by the attached Settlement Tariffs to be reasonable and in the public interest; and approving an attachment establishing a benchmark for pensions and retiree medical benefits. (TW) Agenda Item 6. Consider and act upon a resolution suspending the September 1, 2023, effective date of a rate request from CoServ Gas Ltd. for the maximum period allowed by law. (TW) Agenda Item 7. Consider and act upon authorizing the Town Manager to execute an Agreement between Vector Solutions and the Town of Prosper, for their online training management and scheduling applications. (SB) Agenda Item 8. Consider and act upon authorizing the Town Manager to execute a contract between Astound Business Solutions and the Town of Prosper, Texas, related to establishing fiber network connectivity from Town Hall to Fire Stations 2 & 3, pump station, and establishing fiber radio system connectivity from Prosper to the City of Frisco. (LJ) Agenda Item 9. Consider and act upon a resolution designating The Frisco Enterprise as the official newspaper of the Town of Prosper and The Dallas Morning News as an alternative advertising source for FY 2023-2024. (MLS) Agenda Item 10. Consider and act upon an ordinance adopting new personnel policies regarding mental health leave for certain personnel as required by recent legislation and injury and illness leave for certain personnel as required by recent legislation. (JE) Citizen Comments Regular Agenda Pursuant to Section 551.007 of the Texas Government Code, individuals wishing to address the Council for items listed as public hearings will be recognized when the public hearing is opened. Agenda Item 11. Consider all matters incident and related to the issuance and sale of “Town of Prosper, Texas, Combination Tax and Surplus Revenue Certificates of Obligation, Series 2023”, including the adoption of an ordinance authorizing the issuance of such obligations and establishing procedures and delegating authority for the sale and delivery of such obligations. (CL) Parameters for Issuance of $8,525,000 of Combination Tax and Surplus Revenue Certificates of Obligation (New Money) •Parameters approach allows staff to choose best time to issue which is currently planned for August 28th or later •Key parameters include: •Amount not to exceed $8,700,000; •Rate not higher than 4.75% (Below 4% currently anticipated); •Maximum maturity of 20 years. Project Name Amount Water Projects DNT (PT - Frontier), Frontier (DNT - PISD Stadium): 12” WL (Easements) 2151-WA $2,000,000 DNT (PT - Frontier), Frontier (DNT - PISD Stadium): 12” WL (Construction) 2151-WA $2,500,000 Wastewater Projects Upper Doe Branch WW Line (Teel-PISD Stadium): (Construction) 2152-WW $4,025,000 TOTAL CO ISSUANCE $8,525,000 Agenda Item 12. Receive an update on the 2023 Texas Legislative Session. (RB) 88th Legislative Session Update Town of Prosper August 22, 2023 ABOUT THE TEAM Jake Posey, Senior VP Government Relations Lorena Robledo, Director Government Relations 35+ years of combined House and Senate experience Former OAG & Legislative Council Staff Former Counsel to Texas House/Senate Committee Representing state associations, corporations (electric, aerospace, telecom, manufacturing), non-profit organizations, local governments, etc. Major Themes -Property Tax -SB 2 Special Session -Superpremtion -HB 2127 -Broadband Access -HB 9 -Allocates $1.5 billion to the Broadband Infrastructure Fund (BIF).Texas is expected to receive approximately $3.3 billion in federal Broadband, Equity, Access, and Development Program (BEAD) funding. -Priority given to unserved and underserved areas of the state. -Water Infrastructure -SB 28 -Dedicated $1 billion to the Texas Water Fund (TWF) & $250 million to the New Water Supply Fund. -Priority given to projects serving rural and under 150,000 population, permit ready projects, water conservation, water loss mitigation strategies. -Economic Development -HB 5 -Texas Jobs,Energy,Technology and Innovation Act (Chapter 313 Replacement) -School Finance -Special Session expected in October Advocacy Strategy -During Session -Legislative Agenda –Adopted in January 2023 -Transportation & Infrastructure -Water Resources -Land Development -Recreational & Cultural Resources -Economic Development -Open Govt. -Public Safety -Elections -Fiscal Management -Preemption of Local Authority -Broadband Access -Legislative Consultant –Strategies 360 -Collin/Denton County Days –First time attending both -Relationship-Building City-Related Bills -Passed -HB 14: Third Party Inspections and Review of Development Applications -HB 3492: Value-Based Fees -HB 3699: Platting Review Process Changes -HB 929: Nonconforming Uses -HB 3727: Hotel Occupancy Tax City-Related Bills -Did NOT Pass -HB 622 by Rep. Shaheen: Allowing publication of public notices on digital media -HB 2970: Regulation of HUD-code manufactured homes -SB 1412: Accessory Dwelling Unit -SB 175: Tax-payer funded lobbying -SB 333: Origin Source Taxes Ordinance Changes August 22 Town Council Meeting Mental Health/Illness/Injury Paid Leave (HB 1486–Mental Health Leave for Dispatchers; HB 471–Paid Leave for First Responders September 12 Town Council Meeting Engineering Fees (HB 3492–Value-Based Fees) Subdivision Ordinance (HB 3699–Platting Shot Clock; SB 929– Nonconforming Use) After January 1, 2024 Building Permit Fees (HB 1922 –Reauthorization of Building Permit Fees) Operational & Policy Changes •Personnel Policies re: Employee Use of Social Media (SB 1893–Tik-Tok Ban) •Enforcement of Juvenile Curfew Ordinance (HB 1819–Juvenile Curfew) •Establishment of Youth Diversion Program (HB 3186 –Youth Diversion Program •City Regulatory Authority in Certain Fields (HB 2127 –Texas Regulatory Consistency Act/Superpreemption) Advocacy Strategy -Interim Post Session -Monitor the implementation of passed legislation including ordinance amendments -Monitor info from TML & take appropriate action -Monitor grant opportunities related to Broadband, Water, and Infrastructure Off-Session (Interim) -Continue to invite delegation to Town events (New Resident Mixer, Freedom Fest, HOA Presidents Meetings) -Build coalitions with similar communities affected by legislation (super preemption, local control, etc.) -Continue regular in-person meetings with our legislative delegation in the off-session to convey the impact of harmful/beneficial bills passed in 2023 -Look at interim study charges and lay the groundwork for corrections and beneficial amendments to be made in 2025 Pre-Session (Leading up to Jan. 2025) -Draft legislation -Identifying potential bill sponsors Agenda Item 13. Consider and act upon a request to rezone 34.7± acres from Commercial District (C) to a new Planned Development for Mixed Use, located northside of Prosper Trail and west of Dallas Parkway. (Z22-0019) (DH) Pradera Development Timeline (Overview) •Zoning Award: August 2023 •Civil Design (On and Off Site): 2024 •Building Design: 2024 – 2026 •Civil Construction: 2025 - 2026 •Building Construction: 2026 – 2030 Pradera Development Timeline (In-Depth) •Zoning Process: 233 Days (9/16/22 – 8/8/23) •Development Master Schedule: 4,920 Days (3/20/24 – 1/27/43) •Off-Site Infrastructure: 18 Months (3/20/24 – 1/27/43) •On-Site Infrastructure (Neighborhood Sub-District): 18 Months (8/6/25 – 12/22-26) •Townhome Construction: 30 Months (12/23/26 – 4/10/29) •Retail Building 1: 18 Months (11/22/27 – 4/10/29) •Retail Building 2: 18 Months (4/11/29 – 8/27/30) •On-Site Infrastructure: 18 Months (4/11/29 – 8/27/30) •Apartments/Town Square: 30 Months (8/28/30 – 12/14/32) •Hotel: 30 Months (12/15/32 – 4/3/35) •Retail Pad Site (SW Corner): 18 Months (4/4/35 – 8/19/36) •Condo Buildings 1 and 2: 42 Months (4/4/35 – 6/22/38) •Office Building 1: 30 Months (6/23/38 – 10/9/40) •Retail Pad Site (Boulevard): 18 Months (10/10/40 – 2/25/42) •Office Building 2: 30 Months (10/10/40 – 1/27/43) Agenda Item 14. Consider and act upon a Development Agreement for the proposed Pradera Development, located north of Prosper Trail and west of the Dallas Parkway. (DH) Agenda Item 15. Conduct a public hearing and consider and act upon a request to update the Town of Prosper’s Comprehensive Plan. (DH) PROSPER Comprehensive Plan Update COUNCIL PUBLIC HEARING | AUGUST 22, 2023 Today’s Agenda • Project Overview • Review Revised Comprehensive Plan • Next Steps Project Overview Plan Outline Future Land Use PlanChapter 4 Existing Land Use, Future Land Use Map and Types, Population Projections, Livability and Design Strategies Community SnapshotChapter 1 Historic Trends, Population Growth, Demographic Profile Vision and GoalsChapter 2 Update Plan’s Existing Vision and Goals ImplementationChapter 6 Implementation Matrix, Metrics Market AnalysisChapter 3 Market Analysis; Employment Growth and Projections Chapter 5 Neighborhood & Community Livability Characteristics that Contribute to the Quality of Life Schedule Recent Meetings Date CPAC Meeting #3 of 3 – Review and Consensus on the Entire Plan Monday, June 26, 2023 P&Z Public Hearing (Recommendation)Tuesday, August 1, 2023 CEC Meeting Wednesday, August 2, 2023 Council P&Z Public Hearing (Adoption)Tuesday, August 22, 2023 Chapter 1: Community Snapshot Community Snapshot • Regional Relationship • Historical Context • Demographic Profile • Physical Constraints Growth and Population Source: US Census 25,887 2020 Census ACS 38,312 NCTCOG: January 1, 2023 Housing Characteristics: Comparative Occupancy Rates Source: 2020 5-Year ACS Housing Characteristics: Comparative Residential Unit Stock Source: 2020 5-Year ACS SWOT Exercise Strengths Characteristics of the Town that give it an advantage over others. Weaknesses Characteristics of the Town that place it at a disadvantage relative to others. Opportunities Elements in the environment that the Town could exploit to its advantage. Threats Elements in the environment that pose an issue for the Town. EXISTING S W O T STRENGTHS WEAKNESSES OPPORTUNITIES THREATS FUTURE NEGATIVEPOSITIVE What are Prosper’s current STRENGTHS? EXISTING S W O T STRENGTHS WEAKNESSES OPPORTUNITIES THREATS FUTURE NEGATIVEPOSITIVE Strengths: Characteristics of the Town that give it an advantage over others. 1)Responsive town/leadership 2)Small town feel 3)Beautiful town 4)Open space 5)Reputation 6)Good amenities/parks 7)Faith based community 8)Incredible school district 9)Excellent public services and public safety 10)Identity 11)Supporting local business What are Prosper’s current WEAKNESSES? EXISTING S W O T STRENGTHS WEAKNESSES OPPORTUNITIES THREATS FUTURE NEGATIVEPOSITIVE Weaknesses: Characteristics of the Town that place it at a disadvantage relative to others. 1)HWY 380 2)Main thoroughfares 3)Traffic 4)Commercial tax base 5)Tax base balance 6)Communicating town needs 7)Railroad What are Prosper’s future OPPORTUNITIES? EXISTING S W O T STRENGTHS WEAKNESSES OPPORTUNITIES THREATS FUTURE NEGATIVEPOSITIVE Opportunities: Elements in the environment that the Town could exploit to its advantage. 1)Undeveloped DNT 2)Community uniqueness 3)Community pride 4)Downtown 5)Parks 6)Infill development 7)Location to PGA What are Prosper’s future THREATS? EXISTING S W O T STRENGTHS WEAKNESSES OPPORTUNITIES THREATS FUTURE NEGATIVEPOSITIVE Threats: Elements in the environment that pose an issue for the Town. 1)Drive-thrus 2)Multifamily development 3)380 Bypass 4)Neighboring jurisdictions 5)Phased development 6)Aged development 7)Small town feel 8)Distance separations 9)Lack of resources 10)Regulations 11)ETJs Chapter 2: Vision and Goals Chapter 3: Market Analysis Building Permit Activity by Year (to 2021) Source: US Census Bureau Building Permits Survey Single Family Permit Activity (2021-2023) Source: US Census Bureau Building Permits Survey Multi-Family Permit Activity (2021-2023) Source: US Census Bureau Building Permits Survey Forecasts: Demographic Source: North Central Texas Council of Governments, ESRI, TXP, Inc. Forecasts: Housing Type Allocation Source: TXP, Inc. Forecasts: Job Growth & Future Square Footage Needed Source: North Central Texas Council of Governments, ESRI, U.S. Energy Information Administration, TXP, Inc. Forecasts: Acres Needed to Accommodate Projected Employment Types Source: TXP, Inc. Forecasts: Acres Needed to Accommodate Projected Employment Types Source: TXP, Inc. Land Use Vacant Acres Business Park 48.2 Retail & Neighborhood Services 663.0 Tollway District*1,007.9 Town Center*310.0 US 380 District*648.4 Total 2,677.5 Total: 2,070 Acres * Note: Total Acres includes land of residential Indicates market and FLUP compatibility Chapter 4: Future Land Use Plan Ultimate Capacity & Population Projections Population Projections 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 1970 1980 1990 2000 2010 2020 2030 2040 2050 2060 Prosper Projected Logistic Growth Historical Data 10% 15% 20% 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 1970 1980 1990 2000 2010 2020 2030 2040 2050 2060 Prosper Projected Logistic Growth Historical Data 10% 15% 20% 0 10000 20000 30000 40000 50000 60000 70000 80000 90000 1970 1980 1990 2000 2010 2020 2030 2040 2050 2060 Projected Growth with Artesia Without Artesia Historical Data With Artesia Historical Data Ultimate Population Capacity (without Artesia) = 77,300 Ultimate Population Capacity (with Artesia) = 85,300 Buildout Year = 2043 (Approximately 98.3% Capacity) 2023 Town Population (without Artesia) = 38,312 2023 Town Population (with Artesia) = 43,758 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 1970 1990 2010 2030 2050 Projected Logistic Growth Historical Data 10% 15% 20% 0 10000 20000 30000 40000 50000 60000 70000 80000 90000 1970 1990 2010 2030 2050 With Artesia Without Artesia Historical Data With Artesia Historical Data Estimated Buildout Capacity Estimated Buildout Capacity Ultimate Population Capacity (without Artesia) = 77,300 Ultimate Population Capacity (with Artesia) = 85,300 Chapter 4: Future Land Use Plan Existing Land Use Source: ESRI Existing Land Use Source: ESRI Zoning Distribution Source: ESRI Zoning Distribution Source: ESRI Single Family Residential Lot Sizes Source: ESRI Single Family Residential Lot Sizes Source: ESRI Occurs around 2026 to 2027 (does not include MF) Undeveloped Parcels Source: ESRI Potential FLUP Map Amendments Current FLUP Map Source: ESRI Source: ESRI 2021 2023 Single Family Residential Lot Sizes Source: ESRI FLUP Category Lot Size Range DUA Range Low Density Residential 15,000 sq.ft. to 43,560+ sq.ft.Gross DUA not exceed 1.6 DUA Medium Density Residential 12,500 sq.ft. to 20,000 sq.ft.Gross DUA not exceed 2.5 DUA High Density Residential Less than 10,000 sq.ft.Gross DUA exceeding 2.5 DUA Dallas North Tollway None Minimum 40 DUA w structured parking Southeast Corner of FM 1385 & Parvin Source: ESRI P&Z Revision #1 of 2 Source: ESRI Southeast Corner of FM 1385 & Parvin Source: ESRI Southeast Corner of Teel & Parvin Source: ESRI Southeast Corner of Teel & Parvin Source: ESRI Southwest Corner of Frontier & Shawnee Source: ESRI P&Z Revision #2 of 2 Source: ESRI Southwest Corner of Frontier & Shawnee Source: ESRI Southwest Corner of Fishtrap & Shawnee Source: ESRI Southwest Corner of Fishtrap & Shawnee Source: ESRI Northwest Corner of HWY 380 & Custer Source: ESRI Northwest Corner of HWY 380 & Custer Source: ESRI Northeast Corner of First & Cook Source: ESRI Northeast Corner of First & Cook Source: ESRI Southeast Corner of Fishtrap & Teel Source: ESRI Southeast Corner of Fishtrap & Teel Source: ESRI Southeast Corner of Frontier & Victory Source: ESRI Southeast Corner of Frontier & Victory Source: ESRI Corner of Legacy & Prairie Source: ESRI Corner of Legacy & Prairie Source: ESRI Land Use Categories Low Density Residential Source: ESRI Medium Density Residential Source: ESRI High Density Residential Source: ESRI Retail & Neighborhood Services Source: ESRI Dallas North Tollway District Source: ESRI US Highway 380 District Source: ESRI Town Center District Source: ESRI Old Town District Source: ESRI Business Park Source: ESRI Parks, Recreation, and Open Space Source: ESRI Floodplain Source: ESRI Land Use Concepts Mixed-Use •Benefits •Flexibility of building spaces over time •Long term viability of commercial districts •Providing higher quality high density residences •Inclusion of public facilities •Reduction in the frequency of vehicular trips •Minimizing land consumption Mixed-Use •Vertical Mixed-Use •Any combination of retail, office, and residential within the same building •Example: residential lofts and apartments above street-level retail and office space •Horizontal Mixed-Use •Retail, office, and residential all located within one defined area, but within separate buildings •Example: residential uses along the periphery of the larger development area, separate from a more intense retail and office core Multi-Family Development •Multi-Family Development should: •Occur at strategic locations •Have strict development standards •Meet the Town vision of providing housing excellence (see the Vision Statement on page 22) •Provide quality-of-life amenities to foster the development and the Town as a desirable and unique community (see the Guiding Principles and Community Goals on page 23) •Be compatible with neighboring developments •Be at a high density (more than 40 dwelling units per acre), and •Be located in the DNT District. Drive-Thrus Negative Effects •Unsightly development •Excessive ingress and egress points •Queuing complications •Noise •Clunky internal circulation Potential Regulatory Reponses •Eliminate drive-thrus entirely •Require one drive-thru for a multi- tenant building •Require increased standards that specify queuing and drive-thru lane requirements •Restrict drive-thru allowances for buildings that front higher classified roadways •Apply a distance requirement from residential uses and zoning districts •Require uses that incorporate drive- thrus to have an increased minimum setback to ensure vehicle queuing does not occur at the front of the property •Require drive-thru approval through the specific use permit process •Restrict drive-thrus by lot size Chapter 5: Neighborhood & Community Livability Livability Guidelines Preserve small-town, rural feel Maintain open spaces that create a quiet, open feel Provide a range of housing in Prosper, taking into consideration, among other things, data relating to income, education leve ls and ethnicities “Raise the bar” on development/attract quality development Attract neighborhood services, such as a grocery store? Build a system of connected parks and trails for outdoor recreation Clearly brand and identify Prosper through gateways and other identifying features Provide entertainment venues for families Create high quality mixed use centers where residents may shop, dine, socialize and live Enhance Old Town Prosper Livable Neighborhoods Life-Cycle Housing Connectivity Quality Development Neighborhood Conveniences Identity Recreational Access Open Space Neighborhood Signage Open-Space Preservation Purchase of Development Rights (PDR) Transfer of Development Rights (TDR) Conservation Easements Image Enhancement BRANDING GATEWAYS Chapter 6: Implementation Goals Changes made to the original 2012 goals: Objectives Removed from 2012 Plan •Objective 1.1: Provide a range of housing in Prosper, which takes into consideration, among other things, data relating to income, education levels and ethnicity. •Objective 1.3: Create specific landscaping and thematic design guidelines for development along the Dallas North Tollway. •Objective 1.5: Maximize development opportunity along Highway 380 by providing nodal commercial and retail activity. •Objective 1.10: Include public facilities, such as a new Town Hall, Community Services facility or Library, within the Town Center or Old Town districts. •Objective 1.14: Utilize the Old Town Roadway Plan to prioritize street improvements within Old Town and utilize street improvements to facilitate new development. Objectives Removed from 2012 Plan •Objective 2.2: Update the 2004 Facilities Master Plan to ensure that public facilities, such as fire, police and other public services, are coordinated with land use projections in the Future Land Use Plan •Objective 2.8: Utilize cladding and form-lining at culvert crossings to create the impression of a roadway bridge. •Objective 2.9: Determine if certain roadways within the community can maintain their existing rural context, particularly roadways that may not require widening to meet future demands. •Objective 2.12: Develop and utilize design guidelines that address the use of rural characteristics on development walls, neighborhood entrances and other accessory strictures visible from the public right-of-way. •Objective 2.14: Consider “dark skies.” Objectives Removed from 2012 Plan •Objective 3.2: Require the use of long-lasting/durable building materials, such as stone or brick, and encourage the use of high pitched roofs to enhance the overall housing appearance •Objective 5.10: Upgrade Hays Road to a commercial collector to support and provide back access to future commercial and retail development along Preston Road. •Objective 5.11: Extend and realign South Coleman Road to intersect with Richland Boulevard at Preston Road providing connectivity between Old Town, the Town Center and development along Highway 380. •Objective 5.12: Include access roads along Highway 380, between the Lovers Lane Loop, in order to provide access to development along the grade-separated segment of Highway 380. •Objective 5.16: Monitor regional rail initiatives for changes or updates to the Frisco Commuter Rail Line, particularly how such changes impact Prosper. Objectives Removed from 2012 Plan •Objective 5.16: Monitor regional rail initiatives for changes or updates to the Frisco Commuter Rail Line, particularly how such changes impact Prosper. Staff Recommendation •Keep Objective 5.16 New Objectives in the 2023 Plan •Objective 1.11: Utilize the Dallas North Tollway (DNT) District to accommodate all new multi-family developments in a mixed-use setting with structured garage parking. •Objective 2.11: Update the Zoning Ordinance to address the design, look, and separation of drive-thru businesses. •Objective 2.12: Preserve the Downtown silos by applying for the National Register of Historic Places designation or similar program. Proactive vs. Reactive Implementation •Updating subdivision and zoning regulations •Develop the capital improvements program (CIP) Proactive •Approving a rezoning application submitted by a property owner consistent with the Comprehensive Plan •Site plan and subdivision review Reactive Regulatory Mechanisms ZONING ORDINANCE ZONING TEXT AMENDMENTS ZONING MAP AMENDMENTS SUBDIVISION ORDINANCE Next Steps Schedule Recent Meetings Date CPAC Meeting #3 of 3 – Review and Consensus on the Entire Plan Monday, June 26, 2023 P&Z Public Hearing (Recommendation)Tuesday, August 1, 2023 CEC Meeting Wednesday, August 2, 2023 Council P&Z Public Hearing (Adoption)Tuesday, August 22, 2023 Questions or Comments? Thank you! Agenda Item 16. Discuss CIP and Finance Subcommittee recommendations and receive Council direction regarding the FY 2023-2024 proposed Budget. (CL) Budget Recap •Preliminary Budget presented to Town Council on August 8, 2023 •Town Council approved all action items setting a maximum tax rate and beginning the advertising process for a public hearing and adoption on September 12, 2023 •The Preliminary Budget contained several capital items that had not been reviewed by the CIP Subcommittee and staff asked for direction regarding proper balance of capital to operating additions •The CIP and Finance Subcommittees have now met and formed recommendations for full Council consideration •Following direction received tonight, staff will create a proposed budget for discussion and input at both August 31st Town Hall meeting and September 12th Public Hearing. •Budget adoption September 12, 2023, following any final changes. Budget in Brief Total FY 2023-2024 Preliminary Budget Operating Appropriations $97,259,222 including: • $48,910,761 for General Fund operations and maintenance, • $3,019,990 for the Crime Control and Prevention Special Purpose District, •$2,947,428 for the Fire Control, and Emergency Medical Services Special Purpose District, •$42,381,043 for the Town’s Enterprise Funds including Solid Waste, Water, and Sewer utilities as well as the Storm Drainage Utility Fund. General Debt Service Appropriations for the coming fiscal year are $14,952,436. Governmental Capital Projects added for the year total $98.8 million. Our Largest Revenue-Property Taxes Property Taxes are the largest and most stable revenue source for the Town representing the General Fund’s largest revenue, the sole source for repayment of G.O. Bonds, and a significant source of PAYGO capital. Property Taxes General Fund Capital Dedicated Debt Service General Fund 45.3% Debt Service 35% PAYGO Capital Dedicated 19.7% Key General Fund Revenue Drivers •The four largest GF revenues, Property Tax, Sales Tax, Development Fees and Franchise Fees represent over 90% of all revenue. •Property values experienced healthy growth of 26% with slightly more new growth than on existing property. Historically residential, commercial property continues to increase rapidly. HS exemption increased to 15%. Total levy increased to $45.2 million, a $9.2 million (25.5%) increase. •Sales Tax is expected to grow 8.6% from FY 2023 year -end projected. This is the sixth year for the Special Purpose Districts that receive sales tax that had been previously reported in the General Fund. The General Fund is projecting sales tax revenue of $10,893,442 for FY 2024. •Development Fees are projected to decline 15% due to a slow down in new permits although overall activity remains healthy. •Franchise Fees are expected to grow 11% due to growth of residents and businesses. General Fund Budget Overview •For FY 2023-2024, General Fund revenues are expected to total $45,745,045: •A decrease of 3.87% over the previous year’s amended budget. •Adjusted for Capital Dedicated now recorded in the Capital Projects Fund revenues increased 14.8% •Appropriations increased proportionally with recurring revenues equal to recurring expenditures •Non-recurring uses draw down Fund Balance to the policy guideline of 21% of expenditures. Major General Fund Additions Administration: Market Adjustment - $632,632 IT Security, system and Other Enhancements - $291,766 Police: Stratified Policing Accountability Model - $2,366,618 Fire: Emergency Management - $117,926 Major General Fund Additions Streets: Street Markings and Sign Enhancements - $154,180 Ice Pre-treatment Equipment and Supplies - $154,010 Parks and Recreation: Increased Community Events - $172,000 Engineering: Traffic Signal Communication Upgrade - $70,000 Other Funds Utility Fund-Distribution and Collection Utility •Potable Water Supplier proposing over 11% increase in rates •Wastewater treatment supplier requires significant capital investment for new treatment plant •Rate Consultant projecting need for multiple year rate increases including a blended 7% next year (6% water and 9% wastewater) •First Rate Increase in four years (2019) Solid Waste Fund •Created in 2023, with RFP award will be self-supporting through Rates Stormwater Drainage •No rate increase recommended. Last rate increase 2018. Personnel and Compensation Changes •Labor market is very tight especially here in the DFW Metroplex. •Merit budgeted at 3% •Market Adjustments •6% for Police •3% for Fire •All other employees 5% behind market average were adjusted 5% New General Fund Positions FY24 (27.75) FINANCE (.5 FTE) FIRE (2 FTE) .5 - 1/2 ADMINISTRATIVE ASSISTANT 1 - EMERGENCY MANAGEMENT COORDINATOR 1 - ADMINISTRATIVE ASSISTANT HR (.25 FTE) .25 - PAYROLL SPECIALIST PARKS (4.5 FTE) 1 - CHEMICAL TECHNICIAN IT (1 FTE) 1 - HEAVY EQUIP OPERATOR 1 - HELP DESK TECHNICIAN I 1 - CREW LEADER 1 - MAINTENANCE WORKER POLICE (14 FTE) .5 - RECREATION ATTENDANT (SEASONAL) 9 - POLICE OFFICER – PATROL 1 - SERGEANT (SUPPORT SERVICES) LIBRARY (.5 FTE) 1 - SERGEANT (CID) .5 - PART TIME ADMINISTRATIVE ASSISTANT TO FULL TIME 2 - DETECTIVE (CID) 1 - CRIME VICTIM ADVOCATE FACILITIES* (2 FTE) *Positions approved due to TDI contract end. 1 - FACILITIES MAINTENANCE TECHNICIAN 9-1-1 COMMUNICATIONS (2 FTE) 1 - FACILITIES ADVANCED MAINTENANCE TECHNICIAN 2 - TWO 9-1-1 COMMUNICATIONS SUPERVISORS CODE COMPLIANCE (1 FTE) 1 - CODE COMPLIANCE OFFICER CIP Subcommittee Recommendation •Maintain the $8.5 million capital dedication portion of the tax levy at its current level. •Regarding 2024 Capital Dedicated Projects •Move $1.5M for FS 4 from 2024 to 2025 •Increase Prosper Trail Screening from $300k to $750k •Fund Star Trail at $1.45M •Fund finish out of Town Hall at lower $650k •Fund Frontier Park pond repair at $473k •Move $500k for Quiet Zone for 5th street to 2025 •Move NTTA payment to 2025 awaiting final negotiation and approval of agreement. •Remaining $2.6M to be used for traffic flow improvement projects FY 2023 (Current Year) FY 2024 (Proposed Year) FY 2025 (Planning Year) Finance Subcommittee Recommendation •Accept CIP Subcommittee Recommendations regarding CIP funding level and projects •General support for staff recommendations: •Provide additional information and find ways to reduce cost of victim advocate •Modify Budget message to discuss market adjustments and provide other clarifications to certain line-item titles. •Be prepared to discuss with full Council staffing adjustments. Council Discussion and Direction Agenda Item 17. Discuss and consider Town Council Subcommittee reports. (DFB) Possibly direct Town Staff to schedule topic(s) for discussion at a future meeting. Executive Session Section 551.087 – To discuss and consider economic development incentives and all matters incident and related thereto. 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. Section 551.074 – To discuss and consider personnel matters and all matters incident and related thereto. Section 551.089 - Deliberation of security information collected, assembled or maintained by or for a governmental entity to prevent, detect, or investigate criminal activity, pursuant to Section 2059.055 of the Texas Government Code, and all matters incident and related thereto. Section 551.074 - To discuss appointments to the Board of Adjustment/Construction Board of Appeals, Parks & Recreation Board, Library Board, Prosper Economic Development Corporation Board, Planning & Zoning Commission, and the Community Engagement Committee, and all matters incident and related thereto. The Town Council will reconvene after Executive Session. Reconvene into Regular Session and take any action necessary as a result of the Closed Session. Adjourn