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08.31.23 Budget Town HallTown of Prosper Fiscal Year 23/24 Budget Town Hall Meeting August 31,2023 6:00 PM 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 and other follow-up items that were reviewed by the CIP and Finance Subcommittees. •Town Council reviewed the subcommittee recommendations with both Council and subcommittee changes now incorporated into the Proposed Budget being discussed tonight. •Formal Public Hearing and Budget adoption September 12, 2023 following any final changes. Town Council Strategic Vision Adopted April 25, 2023: Budget in Brief Total FY 2023-2024 Preliminary Budget Operating Appropriations $97 million including: • $48.9M for General Fund operations and maintenance, • $3M for the Crime Control and Prevention Special Purpose District, •$3M for the Fire Control, and Emergency Medical Services Special Purpose District, •$42M 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 $14.9M Governmental Capital Projects added for the year total $98.8 M 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. 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. The General Fund is projecting sales tax revenue of $10.9M 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 $45.7M: •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 for Public Safety Employees based on benchmarking •All other employees that were 5% or more 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 Accelerating Infrastructure Accelerating Infrastructure •2020 Bond Election was a 10-year program for $210 million •In the first three years of the program $110 million issued. (53%) •By 2025, $161 million (77%) will have been issued. •Aided by rising A/V this was accomplished while cutting taxes 1 cent •What does this mean? •New Bond Election planned for November 2025. •Currently $70 million of arterial/collector (55.2 lane miles) are under construction with another 8 lane miles in 2025 •Water & Sewer improvements of $16.5 million underway 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 FY24 to FY25 •Increase Prosper Trail Screening from $300k to $750k •Fund Star Trail Road Repairs at $1.45M •Fund finish out of Town Hall at lower $650k •Fund Frontier Park pond repairs at $473k •Move $500k for Quiet Zone for 5th Street to FY25 •Move NTTA payment to FY25, pending final negotiation/approval agrmnt •Remaining $2.6M to be used for traffic flow improvement projects FY 2023 (Current Year)Project Name Town Debt Funding Capital Dedication Fund Other Town Funding Non Town Funding First Street (DNT – Coleman): (Land/Esmt)1,775,000$ First Street (DNT – Coleman): (Construction) - additional costs/roundabout 1,000,000$ Legacy (Prairie - First Street) - 4 lanes: (Land/Esmt)575,000$ Legacy (Prairie - First Street) - 4 lanes: (Construction) - from FY26 10,000,000$ Fishtrap (Teel - Gee Road): (Construction)6,025,000$ Fishtrap, Segment 2: (PISD Reimbursement)1,063,033$ Coit Road (First – Frontier) – 4 Lanes: (Land/Esmt)800,000$ Coleman (Gorgeous – Prosper Trail) – 4 Lanes: (Land/Esmt)350,000$ Coleman (Prosper Trail – Talon) – 2 SB Lanes: (Land/Esmt)345,000$ Parvin Road (FM 1385 – Legacy) - interim asphalt improvements 500,000$ Frontier (Legacy - DNT): (Design)300,000$ Fishtrap (Elem - DNT): (Construction)6,000,000$ 750,000$ 300,000$ Fishtrap and Gee Road Construction 1,000,000$ 178,793$ Safety Way (MOU approved July 19, 2022)800,000$ Gorgeous/McKinley (LIV Development Agreement)700,000$ Teel (US 380 Intersection Improvements): (Construction) - additional costs 200,000$ First Street (Coit - Custer): (Construction) - additional funding ($375k LTL at Coit)375,000$ 1,749,500$ First Street (Coleman - Craig): (Design)500,000$ Coit Road / US 380 SB Dual Left Turns (Design)50,000$ FM 1461 (SH 289 - CR 165) - cost participation 175,000$ Westside Waterline Trail Connection 800,000$ Raymond Community Park, Phase 1: (Construction) - $9M of $18M 9,000,000$ Parks and Public Works Parking Lot 1,000,000$ TOTAL FUNDING SOURCES:36,958,033$ 5,900,000$ 3,453,293$ -$ TOTAL PROJECTS - GENERAL FUND: STREET AND TRANSPORTATION PROJECTS 46,311,326$ PARK PROJECTS FACILITY PROJECTS FY 2024 (Proposed Year)Project Name Town Debt Funding Capital Dedication Fund Other Town Funding Non Town Funding First Street (DNT – Coleman): (Construction) - $9M of $18M 9,000,000$ Legacy (First Street - Star Trail) - 2 NB Lanes: (CO to First Street) - from FY28 650,000$ Teel Parkway (US 380 - First Street): (Construction) - from FY28 (PISD HS #4)1,400,000$ 900,000$ 2,000,000$ > Traffic Signal - First & Artesia: (Design) - 1/2 cost Artesia 32,500$ 32,500$ > Traffic Signal - Teel & Prairie: (Design)65,000$ Traffic Signal - DNT & Frontier Parkway (Design & Construction)265,000$ Coit Road (First - Frontier) - 4 Lanes (Land/Esmt) - from FY27 1,700,000$ Coit Road (First - Frontier) (Intersection Improv) - Collin County Grant 1,200,000$ 2,800,000$ US 380 Deceleration Lanes 500,000$ 500,000$ Star Trail Road Repairs 1,450,000$ Raymond Community Park, Phase 1: (Construction) - $9M of $18M 9,000,000$ 600,000$ Windsong Parkland Final Payment 1,000,000$ 913,800$ Prosper Trail Screening (Preston - Deer Run)750,000$ Frontier Park Pond Repairs 473,000$ Fire Station No. 4: (Construction) - additional funding towards $12.3M budget 10,200,000$ Finish Out Interior Spaces Town Hall First and Second Floor 650,000$ TOTAL FUNDING SOURCES:31,950,000$ 7,885,500$ 913,800$ 5,332,500$ TOTAL PROJECTS - GENERAL FUND: PARK PROJECTS FACILITY PROJECTS 46,081,800$ STREET AND TRANSPORTATION PROJECTS FY 2024 (Proposed Year)Project Name Town Debt Funding Capital Dedication Fund Other Town Funding Non Town Funding LPP WL Phase 2A: (Construction)6,352,762$ 3,100,000$ FM 1461 12-inch WaterLine Relocation: (Construction)840,000$ 2,160,000$ DNT (Prosper Trail - Frontier Parkway): 12-inch WL: (Construction)2,500,000$ DNT Water Line Relocations (US 380 - First): (Construction)2,000,000$ Doe Branch Parallel Inteceptor: (Construction)6,400,000$ Upper Doe Branch WW Line (Teel-PISD Statium): (Construction)4,025,000$ 25,000$ Wilson Creek WW Line: (Design)35,000$ Wilson Creek WW Line: (Construction)365,000$ Doe Branch, Phase 3 WWTP: (Construction)48,909,669$ 6,090,331$ Sanitary Sewer Replacement (LIV Development): (Construction)75,000$ TOTAL FUNDING SOURCES:68,187,431$ -$ 6,440,000$ 8,250,331$ TOTAL PROJECTS - ENTERPRISE FUND: WATER PROJECTS WASTEWATER PROJECTS 82,877,762$ FY 2025 (Planning Year)Project Name Town Debt Funding Capital Dedication Fund Other Town Funding Non Town Funding First Street (DNT – Coleman): (Construction) - $9M of $18M 9,000,000$ Legacy (First Street - Prosper Trail) - 2 SB Lanes: (Town's Portion of Park Place Development Agreement) - from FY28-Beyond 200,000$ (Town's Portion of Star Trail Development Agreement: ROW) - from FY28-Beyond 550,000$ Coleman (Gorgeous - Prosper Trail) - 4 Lanes: (Construction) - from FY26 5,500,000$ Coleman (Prosper Trail - Talon) - 2 SB Lanes: (Construction) - from FY26 2,700,000$ Frontier Parkway/DNT (West Side Intersection): (Construction)1,000,000$ Traffic Signal - First & Artesia: (Construction) - 1/2 cost Artesia 230,000$ 230,000$ Traffic Signal - Teel & Prairie: (Construction)460,000$ Quiet Zone - 5th Street 500,000$ NTTA Braided Ramps 7,671,185$ Fire Station No. 4: (Construction) - final funding towards $12.3M budget 1,500,000$ TOTAL FUNDING SOURCES:17,950,000$ 11,361,185$ -$ 230,000$ TOTAL PROJECTS - GENERAL FUND: FACILITY PROJECTS 29,541,185$ STREET AND TRANSPORTATION PROJECTS Public Comment and Questions