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09.10.24 Town Council Meeting PresentationWelcome to the September 10, 2024, 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. Proclamation declaring September 17 through September 23, 2024, as Constitution Week. (MLS) Consent Agenda Agenda Item 2. Consider and act upon the minutes from the August 27, 2024, Work Session meeting. (MLS Agenda Item 3. Consider and act upon the minutes from the August 27, 2024, Town Council Regular meeting. (MLS) Agenda Item 4. Consider acceptance of the July 2024 monthly financial report. (CL) Agenda Item 5. Consider and act upon an ordinance amending Division 3, “Community Engagement Committee,” of Article 1.04, "Boards, Commissions, and Committee” within Chapter 1 of the Town’s Code of Ordinances by amending Section 1.04.039, "Number of Members". (MLS) Agenda Item 6. Consider and act upon approving an update to the Library Policies. (RB) Agenda Item 7. Consider and act upon adopting the FY 2024-2025 Prosper Economic Development Corporation Budget. (MM) Agenda Item 8. Consider and act upon an ordinance amending Section 12.09.004 "School Traffic Zones" of Chapter 12 "Traffic and Vehicles" of the Town's Code of Ordinances by modifying the limits and hours of operation of such zones. (HW) Agenda Item 9. Consider and act upon authorizing the Town Manager to execute a Professional Engineering Services Agreement between CP&Y, Inc. dba STV Infrastructure, and the Town of Prosper, Texas, related to the design of the Teel Parkway (First - Freeman) - 2 SB Lanes project for $806,740.30. (PA) Teel Parkway (First-Freeman) Agenda Item 10. Consider and act upon whether to direct staff to submit a written notice of appeals 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 Preliminary Site Plans and Site Plans. (DH) Agenda Item 11. Consider and act upon the appointment of a Municipal Judge, and authorize the Mayor to execute an agreement for same. (JJ) 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 12. Conduct a public hearing to receive public input, consider such input, and consider and act upon an ordinance adopting the Fiscal Year (FY) 2024-2025 Annual Operating and Capital Project Funds budgets and five-year Capital Improvement Program for the fiscal year beginning October 1, 2024, and ending September 30, 2025. (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. Budget Timeline February 27, 2024 Multi-Year Budget Projections May 28, 2024 Adopted Strategic Vision Priorities Spring/Summer 2024 Sub-Committee Meetings on Capital Project Prioritization, Debt Issuance, Market Adjustments July 25, 2024 Certified Rolls July 30, 2024 Budget Workshop at Council Work Session August 13, 2024 Presentation of Preliminary Budget, Passage of all items needed to begin Budget Adoption Process. Budget Timeline Before August 23, 2024 Sub-Committee Meetings per Council Direction August 29, 2024 Budget Town Hall Meeting September 10, 2024 Budget Public Hearing, Final Changes (if any) and Adoption; Tax Rate Public Hearing and Adoption; Tax Increase Ratification Budget in Brief Total FY 2024-2025 Preliminary Budget Operating Appropriations $102,622,254 including: •$52,819,628 for General Fund operations and maintenance, •$3,346,035 for the Crime Control and Prevention Special Purpose District, •$3,544,260 for the Fire Control, and Emergency Medical Services Special Purpose District, •$42,912,331 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 $18,526,992. Governmental Capital Projects added for the year total $51.4 million. Key General Fund Revenue Drivers For FY 2024-2025, General Fund revenues are expected to total $51,207,806 which is an increase of 7.04% over the previous year’s amended budget. This additional revenue is from increased property tax, sales tax, and franchise fees. The Preliminary Budget reflects 10.6% growth from FY 2023-2024 year-end projected sales tax receipts. This is the seventh 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 $12,659,839 for FY 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% - subject to Comprehensive Market Study findings •Non-Public Safety Market Methodology •(Max Average + Min Average)/2 = Midpoint Major General Fund Enhancements Administration: Comprehensive Compensation and Benefits Study-$65,000 IT Security and Other Enhancements-$274,419 Management Analyst - $115,000 Fleet Coordinator - $76,633 Municipal Court Clerk - $47,399 Streets and Facility Maintenance Street Markings and Sign Repairs - $73,102 Building Maintenance and Repairs - $150,000 Facilities Maintenance Technician - $51,700 Parks and Recreation: Increase in Community Events - $90,050 New Parks and Median Maintenance - $362,000 Automated External Defibrillator - $20,000 Irrigation Technician - $89,014 Parks Supervisor - $145,267 Library Assistant - $30,286 Library Technology Equipment - $13,231 Engineering: Senior Traffic Engineer - $121,714 Major General Fund Enhancements Police: Deputy Chief (reclass) - $80,736 Flock Safety Program Expansion (Grant) - $367,250 Officer Safety Equipment (Grant) - $79,163 Detective - $195,313 Five Police Officers (Grant) - $1,085,215 9-1-1 Communications CAD Supervisor - $70,794 Fire: Radio Replacement (year 1 of 4) - $91,628 Online Paramedics School - $41,250 Fire Inspector/Investigator - $202,337 Annual Physicals - $20,596 Other Funds Utility Fund-Distribution and Collection Utility •Potable Water Supplier proposing over 13.8% 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 8.77% next year (6.3% water and 16% wastewater) •First Rate Increase in four years (2020) Solid Waste Fund •Created in 2023, the fund is self-supporting through rates. Price adjustment in February. Stormwater Drainage •No rate increase recommended. Last rate increase 2018. 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 •Increases I&S Rate from 0.177258 to 0.180392 •36% 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 Governmental Capital Projects •$51.3 million Total in New Projects •$35.9 million in Streets Projects •$6.6 million in Parks Projects •$5.3 million in Facility Projects •$2 million in Public Safety Projects •$1.5 million in Unrestricted Projects Multi-Year Capital Program/Debt Issuance Recently Approved Bonds 2023-2024 Parks and Recreation Projects ($4,270,000 Authorization Remaining of $30,000,000) •Raymond Community Park, Phase 1: (Construction) $10,900,000 Street and Transportation Projects ($57,514,905 Authorization Remaining of $150,000,000) •First Street (DNT – Coleman): (Construction) $9,000,000 •Coit Road (First – Frontier) – 4 lands: (Land/Esmt) $1,700,000 •Teel (US 380 – First St.) 2 NB Lanes (Construction) $1,400,000 •Legacy (First – Star Trail) 2NB Lanes (Construction) $650,000 •Braided Ramps $2,557,062 TOTAL $36,407,062 Public Safety Projects ($1,200,000 Authorization Remaining of $30,000,000) •Fire Station #4 (Construction) $10,200,000 Multi-Year Capital Program/Capital Dedicated Facilities •Parks and Public Works Facility, Phase 1 $2,352,938 Streets/Traffic •Traffic Signal – First & Artesia $230,000 •Traffic Signal – Teel & Prairie $460,000 •Traffic Signal – Legacy & Prairie $525,000 •Traffic Signal Communication Program $495,000 •Braided Ramps $2,557,062 •Traffic Improvement Program $1,500,000 TOTAL $9,600,000 Public Safety •Fire Station #4 (Construction) $1,480,000 Pay-as-you-go Funding Agenda Item 13. Conduct a public hearing to consider and act upon an ordinance adopting a tax rate of $0.505 per $100 valuation for fiscal year 2024-2025. (CL) Historical Property Valuation Fiscal Year Valuation Excluding Freeze Growth New Property Growth from New Property Reappraisal Growth Growth from Reappraisal 2019-2020 4,209,067,499 12.4%414,634,110 11.1%49,749,601 1.3% 2020-2021 4,601,196,301 9.3%360,557,369 8.5%31,571,433 0.8% 2021-2022 5,437,210,564 18.2%469,526,490 10.2%366,487,773 8.0% 2022-2023 6,616,007,870 21.7%596,431,779 11.0%582,365,527 10.7% 2023-2024 8,335,296,679 26.0%876,474,004 13.3%842,814,805 12.7% 2024-2025 9,622,101,595 15.4%878,599,323 10.5%408,205,593 4.9% No-New-Revenue Tax Rate •The “No-New-Revenue" rate is the highest property tax rate a local government can adopt that generates the same amount of revenue as the previous year, despite changes in property values. •The calculation excludes impact from new property and property in a TIRZ. •Compares like property year over year. Voter-Approval Tax Rate •The “voter approval” rate is the maximum property tax rate increase, 3.5% on M&O plus calculated I&S Rate, that local taxing units can implement without voter approval. •Mandated to adopt the calculated I&S rate. Property Tax Rate Comparison 2024-2025 2023-2024 No-New-Revenue Tax Rate $0.466941 $0.448160 Voter-Approval Tax Rate $0.522075 $0.51 Debt Rate (I&S Rate)$0.180392 $0.177258 Adopted Rate -$0.51 Proposed Rate $0.505 - Historical Property Tax Rate Fiscal Year M&O I&S Total Rate 2019-2020 0.367500 0.152500 0.520000 2020-2021 0.367500 0.152500 0.520000 2021-2022 0.328000 0.182000 0.510000 2022-2023 0.329830 0.180170 0.510000 2023-2024 0.332742 0.177258 0.510000 2024-2025 0.324608 0.180392 0.505000 Benchmarking Proposed Fiscal Year 2024-2025 Tax Rates Entity Homestead Exemption Rate General Fund Capital Dedicated I&S Total Tax Rate Equivalent Tax Rate for Homestead Freeze Anna 5.0%0.360213 -0.146987 0.507200 0.481840 No Celina None 0.287061 -0.311107 0.598168 0.598168 Yes Coppell 5.0%0.392071 -0.070151 0.462222 0.439111 No Flower Mound 12.5%0.348344 -0.038956 0.387300 0.338888 No Frisco 15.0%0.283406 -0.142111 0.425517 0.361689 Yes Keller 20.0%0.249292 -0.043888 0.293180 0.234544 Yes Little Elm None 0.435787 -0.124113 0.559900 0.559900 Yes McKinney None 0.278935 -0.136578 0.415513 0.415513 No Southlake 20%0.250000 -0.055000 0.305000 0.244000 Yes Average of Comparison 8.61%0.320568 -0.118766 0.439333 0.408184 - Prosper (FY2023-2024)15.0%0.230742 0.102 0.177258 0.51 0.4335 Yes Prosper (FY2024-2025)17.5%0.224608 0.10 0.180392 0.505 0.416625 Yes Prosper ISD 63% Town of Prosper 25% Collin County 8% Collin College 4% Prosper ISD 64% Town of Prosper 26% Denton County 10% FY2024-2025 Proposed Total Tax Rate Entity FY2024-2025 Proposed Tax Rate Prosper ISD 1.2552 Town of Prosper 0.505 Collin County 0.149343 Collin College 0.08122 TOTAL 1.990763 Entity FY2024-2025 Proposed Tax Rate Prosper ISD 1.2552 Town of Prosper 0.505 Denton County 0.187869 TOTAL 1.948069 Agenda Item 14. Ratifying the property tax increase in the budget for fiscal year (FY) 2024-2025. (CL) Agenda Item 15. Consider and act upon approving an ordinance to adjust Water & Wastewater Rates. (CL) Water and Wastewater Rates Utility Fund-Distribution and Collection Utility •Potable Water Supplier proposing over 13.8% 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 8.77% next year (6.3% water and 16% wastewater) •First Rate Increase in four years (2020) Wholesale Expenses Proposed Rate Increase Rate Comparison Agenda Item 16. Consider and act upon a resolution of the Town Council of the Town of Prosper, Texas, declaring the public necessity to acquire certain properties for right-of- way and easements for the construction of the Coleman Street (Gorgeous – Talon) project; determining the public use and necessity for such acquisition; authorizing the acquisition of property rights necessary for said Project; appointing an appraiser and negotiator as necessary; authorizing the Town Manager to establish just compensation for the property rights to be acquired; authorizing the Town Manager to take all steps necessary to acquire the needed property rights in compliance with all applicable laws and resolutions; and authorizing the Town Attorney to institute condemnation proceedings to acquire the property if purchase negotiations are not successful. (HW) 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 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 including the review of the Municipal Judge 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, Community Engagement Committee, Downtown Advisory Committee, and the Bond 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.