06.25.24 Town Council Meeting Presentation Work SessionWelcome to the June 25, 2024,
Prosper Town Council
Work Session
Call to Order/Roll Call
Agenda Item 1.
Discuss the preliminary 2024-2025 fiscal year Budget. (CL)
FY 2025 SALARIES
Human Resources
Vision ● Strategy ● Performance
•Strategic Visioning
Priorities
Council
•Actionable Strategies
•Short-term
•Long-term
Executive & Director
Level Leadership •Recruit & Retain
•Deliverables
•Municipal Excellence
Middle Management,
Supervisors, and Staff-
Level Employees
In our pursuit of municipal excellence, we recognize that our employees are the driving force behind our
success. Their dedication, expertise, and commitment to providing essential services shape the quality of life
for our residents, businesses, and visitors. To foster an environment of unparalleled dedication – one that drives
individual development and renewal, we must consider the importance of competitive compensation as a part
of the journey. Here are three (3) key areas to take into consideration:
1.Attracting the Best Employees (Client-Focused Talent):
o Our commitment to providing excellent services to residents, businesses, and visitors hinges on
having a client-focused workforce.
o Competitive compensation acts as a magnet, drawing in professionals who prioritize customer
satisfaction, empathy, and responsiveness.
o These employees understand the unique needs of our community and strive to exceed expectations.
2.Aligning Experienced Leaders and Employees with the Right Positions within the Organization
(Promoting a Cooperative Mindset):
o Collaboration and teamwork are essential for achieving municipal excellence.
o Competitive compensation reinforces commitment; meaningful commitment promotes greater
employee engagement, performance, and innovative solutions.
o When employees feel valued and fairly compensated, they actively contribute to a harmonious work
environment.
3.Leading at All Levels of the Organization (Fostering Servant Leadership):
o Servant leaders prioritize the well-being of their teams and the community above all else.
o Competitive compensation empowers all employees to focus on their roles with less financial
stress, thus promoting behavior that exemplifies our core values – T.H.R.I.V.E.S.
o By investing in our employees, we create a positive ripple effect throughout the organization.
In summary, competitive compensation is not just about numbers; it’s an investment in our people – the heart of
our “municipal excellence” journey.
Attracting the
Best
Employees
Aligning
Experienced
Leaders and
Employees with
the right Right
Positions
Leading at all
Levels of the
Organization
Excellent
Municipal
Services
Terminology
❖Market Average: In previous years, we have only used the “midpoint” as the “anchoring point” to evaluate
competitiveness. We are now using the minimum and maximum as our anchoring points for assessing competitiveness
with our benchmark cities.
❖Midpoint: Derived from market average for similar positions in the identified market (comparison cities).
❖Maximum Average + Minimum Average / 2 = Midpoint
❖Meet & Confer Agreement: An Agreement that represents all firefighters and police officers in the municipality and
shall negotiate with the municipality to reach an agreement on concerns shared by the firefighters and police officers
regarding terms of employment, including concerns relating to wages and benefits. *Note* we are not recommending
that we adopt – in part or in whole, any language from the portion of the Meet & Confer contract referenced later in this
presentation. Rather, we are recommending only the methodology outlined in the later slide for the way the Town
conducts salary market analysis.
❖Philosophy: Values and beliefs that guide our approach to compensation (Equity, Market Competitiveness,Internal
Alignment, Employee Value, Long-Term Sustainability, Transparency).
❖Sampling: The practice of selecting a small group of positions from all available positions at the Town of Prosper in a
manner that the sample is considered a reliable indicator of the employee group.
❖50 Percentile: Also known as the median using the two anchoring points, salary at which half of the employees of
benchmark cities earn less and half the employees earn more.
History: Pay Plan Adjustments
FY-24 10/1/2023
•Police 7%
•Dispatch 1-3%
•Fire 5%
Midpoint
50 Percentile
SamplingFY-22 – 10/1/2022
•Police 1%
•Dispatch 1%
•Fire 1%
•All Employees 1% Winter
FY-21–10/1/2021
•Police 5%
•Dispatch 5%
•Fire 5%
FY-20 – 10/1/2019
•Failed Compensation Study-
Public Sector
Personnel Cons.
•Police, Dispatch, Fire
%’s varied.
FY-23 – 5/1/2023
•Police N/A
•Dispatch 11.34%
•Fire N/A
FY-25 Council Direction:
Town of Prosper Philosophy
* Positions -10% or more below market
+10%
* Positions -5% to -9% below market +5%
*Police, Fire, and Dispatch have and are on Step Pay Plans. Historically, a 3% deference has been calculated between
each step.
Non-Public Safety Positions
❖FY 2025
❖Market Average Data Methodology
❖The average minimum and maximum annual rates of pay
at benchmark cities (based on individual positions).
❖Max Average + Min Average / 2 = Midpoint
❖Establish Specific Pay Grades (AKA Pay-bands) for
the Information Technology Department (I.T.)
❖Remove I.T. positions from the current “pay grades” and create
pay grades specific to their municipal industry.
❖Doing so helps ensure that the market analysis conducted for I.T.
has a greater degree of job tasks specificity.
Public Safety Positions – FY 2025
❖Market Average Data Methodology
❖The average minimum and maximum annual rates of pay at benchmark
cities. The data is anchored at the minimum and maximum annual rates
for each respective rank and file.
❖Competitive percentage above market average
❖Proposed 1.75
❖Reduce total “steps” for Fire & Police (No adjustment for
Dispatch)
❖Currently 8 steps – reduce to 7 steps
Example of Meet & Confer Agreement
Recommendation Number of Employees Effected Budget Impact
Bring all positions – a total of 127, to market
average or above. Effective October 1, 2024. 105 $ 326,415
Non-Public Safety
Recommendation Number of Employees Effected Budget Impact
Adjust the Step Pay Plan to the market average
plus 1.75%. Reduce steps from 8 to 7 71 $ 235,630
Fire
State Licensed Personnel
Recommendation Number of Employees Effected Budget Impact
Adjust the Step Pay Plan to the market average
plus 1.75%. Reduce steps from 8 to 7 59 $ 233,221
Police
State Licensed Personnel
Recommendation Number of Employees Effected Budget Impact
Adjust the Step Pay Plan to the market average 14 $ 9,240
911 Communications
State Licensed Personnel
Totals:249 $ 804,506
FISCAL YEAR 2025 RECOMMENDATIONS
LOOKING FORWARD
❖ New H.R. Director
❖The new Director will work with the Town Manager to
create a culture that produces excellent outcomes.
❖Foster synergy throughout all Town departments.
❖Further align the Town’s Five-Year Staffing Plan with
Council’s Strategic Priorities.
❖Comprehensive Compensation Analysis (2025)
❖Review and recommendations for job descriptions and job
titles
❖Review and recommendations for Pay Categories ( AKA
Pay-bands)
❖Establish a point system for classifying positions within
Pay Categories.
❖Market Salary Data Methodology
❖Continue to tailor the Town of Prosper’s compensation
philosophies and methodologies with a focus on fiscal
responsibility and sustainability.
❖CPI Continues Process Improvement
❖Leveraging innovation and technology to better align our
structure, culture, competencies, and strategies. Ideally,
these efforts should increase our efficiencies across all
lines of business, which may reduce the total number of
staff needed in future times.
FIRE RESCUE COMP STUDY
POLICE OFFICER COMP STUDY
911 COMMUNICATIONS COMP STUDY
Town of Prosper
Fiscal Year 24/25 Budget Executive Brief
Property Valuation with no HS Exemption Increase
Fiscal Year New Property Growth from
New Property
Reappraisal Growth for
Reappraisal
Total
Valuation less
Freeze
Total Growth
2020 414,634,110 11.1%49,749,601 1.3%4,209,067,499 12.4%
2021 360,557,369 8.5%31,571,433 0.8%4,601,196,301 9.3%
2022 469,526,490 10.2%366,487,773 8.0%5,437,210,564 18.2%
2023 596,431,779 11.0%582,365,527 10.7%6,616,007,870 21.7%
2024 876,474,004 13.3%842,814,805 12.7%8,335,296,679 26.0%
2025 888,731,324 10.7%634,297,638 7.6%9,858,325,641 18.3%
Property Valuation with 2.5% HS Exemption Increase
Fiscal Year New Property Growth from
New Property
Reappraisal Growth for
Reappraisal
Total
Valuation less
Freeze
Total Growth
2020 414,634,110 11.1%49,749,601 1.3%4,209,067,499 12.4%
2021 360,557,369 8.5%31,571,433 0.8%4,601,196,301 9.3%
2022 469,526,490 10.2%366,487,773 8.0%5,437,210,564 18.2%
2023 596,431,779 11.0%582,365,527 10.7%6,616,007,870 21.7%
2024 876,474,004 13.3%842,814,805 12.7%8,335,296,679 26.0%
2025 888,731,324 10.7%381,541,022 4.5%9,605,569,025 15.2%
Benchmarking Fiscal Year 2023-2024
Entity Homestead Exemption Rate M&O I&S Total Tax Rate Freeze
Anna 3.0% ($5,000 min.)0.365930 0.144787 0.510717 No
Celina No Homestead Exemption 0.315878 0.296276 0.612154 Yes
Coppell 5.0% ($5,000 min.)0.421666 0.070152 0.491818 No
Flower Mound 12.5% ($5,000 min.)0.343173 0.044127 0.3873 No
Frisco 15.0% ($5,000 min.)0.289263 0.142942 0.432205 Yes
Keller 20.0% ($5,000 min.)0.260403 0.051597 0.312 Yes
Little Elm No Homestead Exemption 0.486416 0.143484 0.6299 Yes
McKinney No Homestead Exemption 0.286688 0.140825 0.427513 No
Southlake 7.5% ($5,000 min.)0.264 0.055 0.319 Yes
Average of Comparison 7.8%0.336616 0.126645 0.463261
Prosper (Current)15.0% ($5,000 min.)0.332742 0.177258 0.51 Yes
Prosper (Preliminary)17.5% ($5,000 min.)0.327742 0.177258 0.505 Yes
Tax Rate
2024 2025 Change
Debt Service 0.177258 0.177258 0
General Fund 0.230742 0.227742 -0.003
Capital Dedicated 0.102 0.100 -0.002
Total Tax Rate 0.51 0.505 -0.005
Tax Levy Plus Freeze Less TIRZ
Fiscal
Year
Debt Service General Fund Capital
Dedicated
TIRZ Total Levy
2020 6,688,023 16,117,040 -571,794 23,376,857
2021 7,345,165 17,700,151 -719,068 25,764,384
2022 10,279,920 18,526,449 -1,062,550 29,868,918
2023 12,380,508 15,254,571 7,409,929 1,211,554 36,256,561
2024 15,232,330 19,591,432 9,002,120 1,639,587 45,465,469
2025 17,383,083 22,534,964 9,605,569 2,478,402 52,002,018
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 the 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 551.071 – Consultation with the Town Attorney to discuss legal issues
associated with any agenda item.
The Town Council will reconvene after Executive
Session.
Reconvene into Work Session
Adjourn