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07.30.24 Town Council Meeting Presentation Work Session - BudgetWelcome to the July 30, 2024, Prosper Town Council Work Session Call to Order/Roll Call Agenda Item 1. Discuss the Preliminary FY 2024-2025 Budget. (CL) Town Council Strategic Visioning Priorities ACCELERATION OF INFRASTRUCTURE •Work with the Capital improvement Subcommittee to identify gaps in the Town’s infrastructure and ensure that it meets the demands of a growing community •Utilize all available financial methods (Bonds, Certificates of Obligation, Capital Dedicated Fund, Grants, etc.) to fund projects. •Work with the Capital Improvement Subcommittee to plan for a future bond program and/or pay-as-you-go program. DEVELOPMENT OF DOWNTOWN PROSPER AS A DESTINATION •Collaborate with the Downtown Business Alliance, Community Engagement Committee, Downtown Committee, and Prosper EDC to implement the Downtown Master Plan. •Pursue a mix of public and private developments as catalysts for office, retail, restaurants, entertainment, housing, and outdoor events. ENSURE THE TOWN’S COMMERCIAL CORRIDORS ARE READY FOR DEVELOPMENT •Ensure US 380 and Dallas North Tollway are primed and ready for development. •Develop long-term strategies for land use, landscaping, lighting, and traffic. •Leverage partnerships with TxDOT, NTTA and private development. CONTINUE TO PROVIDE EXCELLENT MUNICIPAL SERVICES •Strive to be a high-performing organization focused on continuous improvement, best practices, and benchmarking. •Develop a culture of excellence and provide the financial resources necessary to support these goals. •Provide a welcoming and respectful environment for residents, visitors, and Town employees. WORK TOWARDS A GROWING AND DIVERSIFIED TAX BASE •Collaborate with Prosper EDC and be adaptable to changing market conditions. •Place an emphasis on corporate, medical, and life-sciences sectors. •Utilize metrics to create resiliency strategies against market changes. 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 878,599,323 10.5%408,205,593 4.9%9,622,101,595 15.4% Historical Property Valuation Benchmarking Fiscal Year 2023-2024 Entity Homestead Exemption Rate General Fund Capital Dedicated I&S Total Tax Rate Equivalent Tax Rate for Homestead Freeze Anna 5.0%0.365930 -0.144787 0.510717 0.485181 No Celina None 0.315878 -0.296276 0.612154 0.612154 Yes Coppell 5.0%0.421666 -0.070152 0.491818 0.467227 No Flower Mound 12.5%0.343173 -0.044127 0.3873 0.338888 No Frisco 15.0%0.289263 -0.142942 0.432205 0.367374 Yes Keller 20.0%0.260403 -0.051597 0.312 0.2496 Yes Little Elm None 0.486416 -0.143484 0.6299 0.6299 Yes McKinney None 0.286688 -0.140825 0.427513 0.427513 No Southlake 20%0.264 -0.055 0.319 0.2552 Yes Average of Comparison 8.61%0.336616 -0.126645 0.463261 0.425893 - Prosper (Current)15.0%0.230742 0.102 0.177258 0.51 0.4335 Yes Prosper (Preliminary)17.5%0.22841 0.10 0.176590 0.505 0.416625 Yes Tax Year 2024; Fiscal Year 2024-2025 General Fund Staffing Department Title Start Date FTE Recurring One-time Grant Revenue Year 2 Town Managers Office Management Analyst 10/1/2024 1 105,000 10,000 - 105,000 Finance Fleet Coordinator 1/1/2025 1 72,003 48,730 - 95,499 Communications Communication Specialist increase to Full-time 10/1/2024 0.5 34,091 - - 34,091 Municipal Court Municipal Court Clerk 1/1/2025 1 47,399 - - 47,399 Police Administrative Assistant-Patrol 4/1/2025 1 13,171 36,515 - 69,419 Police Detective 4/1/2025 1 80,049 115,264 - 150,101 Police Police Officers (COPS Grant)1/1/2025 5 579,298 505,917 333,333 749,943 Police 9-1-1 Communications CAD Supervisor 4/1/2025 1 65,425 5,369 - 127,553 Fire Fire Inspector/Investigator 1/1/2025 1 100,072 102,265 - 128,444 Public Works Signs and Marking Technician 4/1/2025 1 40,716 - - 77,323 Public Works Streets Utility Worker 1/1/2025 1 58,420 - - 76,724 Public Works Facilities Maintenance Technician 1/1/2025 1 51,700 - - 61,692 Parks Irrigation Technician 4/1/2025 1 37,558 51,456 - 72,977 Parks Parks Supervisor 11/1/2024 1 92,738 52,529 - 100,971 Library Library Assistant PT to FT 10/1/2024 0.5 30,286 - - 30,286 Engineering Senior Traffic Engineer 1/1/2025 1 101,028 20,686 - 141,929 Total General Fund 19 1,508,954 904,631 333,333 2,069,351 Other Funds Staffing Water/Wastewater Fund Department Title Start Date FTE Recurring One-time Grant Revenue Year 2 Public Works Crew Leader 10/1/2024 1 98,141 99,820 - 98,141 Public Works Heavy Equipment Operator 10/1/2024 1 85,270 335 - 85,270 Public Works Utility Worker 10/1/2024 1 75,672 1,800 - 77,472 Total Water/Wastewater Fund 3 259,083 101,955 - 260,883 Stormwater Drainage Fund Department Title Start Date FTE Recurring One-time Grant Revenue Year 2 Public Works Stormwater Crew Leader 10/1/2024 1 168,280 14,502 - 103,830 Total Stormwater Drainage Fund 1 168,280 14,502 - 103,830 Fund Recurring General Fund - Police-Sworn 232,513 General Fund - Fire-Sworn 228,464 General Fund 311,881 Water/Wastewater 37,601 Total Market Study 810,459 Market Study •Public Safety Market 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 – 1.75% •Non-Public Safety Market Methodology •(Max Average + Min Average)/2 = Midpoint Non-Discretionary Packages •Year 3 of ERP implementation $344,538 •Flock Management Software Subscription (Grant) - $160,000 •Collin County, Collin CAD, Denton CAD Service increase - $109,000 •Technology refresh and software license increase - $140,845 •Fire apparatus maintenance - $50,000 •MUTD Transit Service - $6,700 •Taser replacements - $16,148 •Library Collection Expansion - $15,466 •Increase in Training - $36,000 •Special Event OT, Essential equipment for new Parks and Medians - $88,000 •Comprehensive Compensation and Benefits Study-$65,000 •IT Security and Other Enhancements(Grant Applications)-$274,419 •Repairs and Maintenance(Street Signs, Facilities, Playground)-$298,102 •New Parks and Median Maintenance-$362,000 •Special Event Funding Increase - $90,050 •Emergency Defibrillators at Parks - $20,000 •Facility Management Work Order System - $41,600 (one-time) •Public Safety: •Radio Replacement (Year 1 of 4)-$91,628 •Online Paramedics School - $41,250 •Public Safety Equipment(Grant) - $79,163 •Reclass to Deputy Chief (4/1/2025) - $80,736 •Public Safety Mental (Grant) and Physical Health - $70,596 Discretionary Packages New Parks and Median Maintenance •Increase from 335 to 421 (26%) maintained acres of parkland •$915,200 in Requests for New Parks and Median Maintenance: •Utility Increase (Electricity, Water) - $275,000 •Contract Mowing - $475,200 •Supplies (Plants, Seed, Fertilizer)-$165,000 •$362,000 approved increase in Parks Budget •Remainder of $553,200 absorbed by Parks Budget or included in Contingency Package Contingency Package •Contingent amount of $350,000 budgeted at Town Manager authorization required •Not all expenditures will be realized •Items totaling $781,883 included: •Additional FLOCK Safety program expansion(Grant) •Information Technology Security Enhancements •Parks Project Consultant Fees •Parks Comprehensive Strategic Plan(Grant) •Additional New Park and Median Maintenance •Mowing •Water and Electricity •Plant replacement •Unused contingent amount can either roll to fund balance or transfer to CIP Funds Grant Applications Department Description Status Expected Award Notification Total Project Total Funding Requested Cost Share Total Awarded Non-Local Cost Share Local Cost Share Notes Pending Applications Potential Potential Police FY25 TXDOT-STEP-COMP (Traffic Safety-O.T.)Applied December 2023 Aug-24 $ 15,073.38 $ 11,959.20 80/19 $ - $ 11,959.20 $ 3,114.18 Annual application Police PY25 Victim Assistance, General Victim Assistance (Crime Victim Advocate)Applied February 7, 2024 Sep-24 $ 87,500.00 $ 70,000.00 80/20 $ - $ 70,000.00 $ 17,500.00 Year 2 of 3. Recommended for $70,000 by NCTCOG. Police PY2025 Rifle-Resistant Body Armor Grant Program - Patrol Rifle Plates Applied February 6, 2024 Sep-24 $ 33,019.00 $ 33,019.00 0 $ - $ 33,019.00 $ - Administratively decreased to $14848.44 by the OOG Fire SAFER FY23 Applied April 9, 2024 Sep-24 $ 4,913,100.00 $ 4,913,100.00 0 $ - $ 4,913,100.00 $ - Approval to apply was given by TM, and item will go to Council if awarded. 3 year award. Police FY24 Motor Vehicle Crime Prevention Authority SB224 Catalytic Converter Grant Second Solicitation Applied May 9, 2024 Jul-24 $ 119,000.00 $ 95,200.00 80/20 $ - $ 95,200.00 $ 23,800.00 Application approved by Council 6/25/2024. Approved by the board, awaiting award letter. Police FY25 Motor Vehicle Crime Prevention Authority SB224 Catalytic Converter Grant Applied June 20, 2024 Jul-24 $ 88,250.00 $ 70,600.00 80/20 $ - $ 70,600.00 $ 17,650.00 Application approved by Council 6/25/2024. Approved by the board, awaiting award letter. Police FY 25 Motor Vehicle Crime Prevention Authority Taskforce Grant Applied May 28, 2024 Oct-24 $ 358,000.00 $ 286,400.00 80/20 $ - $ 286,400.00 $ 71,600.00 Application approved by Council 6/25/2024. Recommended for funding, board will announce awards October 16, 2024. IT State and Local Cybersecurity Grant Program Assessment & Evaluation -Water Dept. Operational Technology Infrastructure Applied March 14, 2024 Sep-24 $ 50,000.00 $ 45,000.00 90/10 $ - $ 45,000.00 $ 5,000.00 In budget, will go to Council if awarded. No Resolution required with application. IT State and Local Cybersecurity Grant Program Mitigation - Town Hall Uninterruptable Power Supply Infrastructure Improvements Applied March 14, 2024 Sep-24 $ 25,000.00 $ 22,500.00 90/10 $ - $ 22,500.00 $ 2,500.00 In budget, will go to Council if awarded. No Resolution required with application. IT State and Local Cybersecurity Grant Program Governance and Planning -ToP IT Dept. Strategic Plan Applied March 14, 2024 Sep-24 $ 80,000.00 $ 72,000.00 90/10 $ - $ 72,000.00 $ 8,000.00 In budget, will go to Council if awarded. No Resolution required with application. IT State and Local Cybersecurity Grant Program Mitigation - ToP ZTNA Implementation Project Applied March 14, 2024 Sep-24 $ 35,000.00 $ 31,500.00 90/10 $ - $ 31,500.00 $ 3,500.00 In budget, will go to Council if awarded. No Resolution required with application. Police FY24 Law Enforcement Mental Health and Wellness Act (LEMHWA) Implementation Projects Applied April 15, 2024 FY24/25 $ 100,000.00 $ 100,000.00 0 $ - $ 100,000.00 $ - In budget, will go to Council if awarded. No Resolution required with application. 2 year award, $50,000 per year Police Firehouse Subs Applied July 11, 2024 FY24/25 $ 49,074.06 $ 49,074.06 0 $ - $ 49,074.06 $ - 21 AEDs. If approved, Firehouse will pay vendor directly. Parks RAYMOND COMMUNITY TRAIL / BRIDGE COLLIN CO GRANT REQUEST Applied July 3, 2024 FY24/25 $ 848,122.00 $ 400,000.00 50/50 $ - $ 400,000.00 $ 448,122.00 Approved by Council June 25. Needs Resolution with Application.Cost share is not an exactly 50/50 because we are paying costs of the project that are not covered, but are still allowed to be considered in our cost share. Parks PECAN GROVE TRAIL COLLIN CO GRANT REQUEST Applied July 3, 2024 FY24/25 $ 248,798.00 $ 120,000.00 50/50 $ - $ 120,000.00 $ 128,978.00 Approved by Council June 25. Needs Resolution with Application.Cost share is not an exactly 50/50 because we are paying costs of the project that are not covered, but are still allowed to be considered in our cost share. Parks WHITLEY PLACE MEADOW PARK PAVILION COLLIN CO GRANT REQUEST Applied July 3, 2024 FY24/25 $ 218,130.00 $ 100,000.00 50/50 $ - $ 100,000.00 $ 118,130.00 Approved by Council June 25. Needs Resolution with Application.Cost share is not an exactly 50/50 because we are paying costs of the project that are not covered, but are still allowed to be considered in our cost share. TOTAL $ 7,268,066.44 $ 6,420,352.26 $ - $ 6,420,352.26 $ 847,894.18 Awarded for FY25 Parks TXDOT -Green Ribbon Project Awarded 10/2021 $ 1,100,000.00 $ 1,100,000.00 0 $ 1,877,105.00 $ 1,877,105.00 $ - Awarded FY22. Project pushed to FY25 by TxDOT due to lighting project on 380 from Preston to Mahard. Will bid Aug/Sep 2024, awaiting TxDOT approval to publish Police FY23 COPS CHP Awarded 11/2/23 $ 3,004,191.00 $ 1,125,000.00 37.45/62.55 $ 625,000.00 $ 625,000.00 $ 1,043,995.00 Awarded FY24. 9 positions requested. 5 positions awarded. Will start 10/1/25 if approved in FY25 budget TOTAL $ 4,104,191.00 $ 2,225,000.00 $ 2,502,105.00 $ 2,502,105.00 $ 1,043,995.00 Debt Service Fund •Add Series 2024 authorized by Council - $36.407 Million •Redeem Series 2014 - $600,000 ($140,000 savings) •$152 million available for 2025 Bond Election •Reduces I&S Rate from 0.177258 to 0.176590 •35% I&S percentage of total Tax Rate (below 40%) •Outstanding Total Debt of $228,582,000 at end of FY24-25 •2.4% Outstanding Total Debt as a percentage of TAV (below 4%) •$5,366 Outstanding Total Debt per Capita Debt Service Fund Future Considerations •Managing Revenue, Taxable Assessed Value, and Levy •Maximizing Future Land Uses •Homestead Exemption vs. Tax Rate Reduction •Growing impact of Senior Freeze •Future Value Increases •$1.12 billion in Ag Exemption (Productivity Loss) •$1.06 billion in Homestead Cap Loss •Review Fees for Service •Future economy •Planning for Long-term Operational and Capital Needs •Next Bond Program •Future Uses of Capital Dedicated Levy •Repairs for aging facilities and infrastructure •Additional responsibilities of reaching 50,000 in population Population by Age Group *Data Source: American Community Survey: 5-year estimates Prosper Population by Age Histogram •35% - 19 or below •8% - 65+ •Expect substantial increase in 65+ starting in 10 years Fiscal Year Count Frozen TAV Revenue 2019-2020 840 335,094,744 1,489,706 2020-2021 988 406,343,272 1,838,163 2021-2022 1,108 490,027,668 2,139,144 2022-2023 1,250 578,031,097 2,514,921 2023-2024 1,380 694,525,568 2,955,456 2024-2025 1,561 854,677,199 3,504,700 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