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04.04.2025 Bond Election Committee Meeting Presentation AGENDA 2025 Bond Election Committee Meeting Police Department Community Room, 801 Safety Way Tuesday, March 04, 2025 6:00 pm 1. Welcome Kevin Greene 2. Setting Future Meetings Bob Scott a. Parks b. Library c. Police d. Wrap Up Prioritization e. Final Meeting After Election is Called 3. Capacity Update & Recap of Process Chris Landrum a. New Calculated Capacity is $175 million b. Mix of Infrastructure and Amenities i. Proposed starting point 55%/45% ($95 million infrastructure/$80 million facilities. ii. 2020 was 72% Infrastructure 28% Parks and Facilities ($210M) iii. 2011 was 53% Infrastructure, 47% Parks and Facilities ($25M) 4. Infrastructure Hulon Webb a. Map Recap of Projects to Date 5. Optional Facility Tour Kevin Greene 6. Adjourn TOWN OF PROSPER November 2025 Bond Election Kick Off 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. The Challenge of Rapid Growth This is an extremely expensive stage in the Town’s life that creates multiple challenges: •Putting improvements in place fast enough to support current population and promote future growth without overburdening taxpayer. •Too fast- high taxes/Too slow- traffic gridlock and missed development opportunities •Includes items DNT braided ramps, u-turn lanes and Dallas Parkway repairs/expansion •Ensuring long-term financial viability of Town long after it stops growing and must maintain hundreds of millions of infrastructure going forward. •Plan for the operating budget impacts of proposed projects so that we can continue to provide excellent municipal services while staying within SB 2 limits on the M & O portion of the tax rate. Financial Policies and Program Parameters •To ensure the long-term financial health of the Town, Council has adopted the following: •Water and Sewer debt will be self supporting through rates. •Tax supported debt service will not exceed 40% of the total property tax levy. •Total tax supported debt will not exceed 4% of taxable assessed valuation •Non-voter approved debt (Certificates of Obligation) will be avoided if at all possible Current Plan for Bond Program •No tax rate increase election •Debt capacity determined by: •New Construction value added to the roll •Increases in existing values •Retirement of existing debt •Refunding for savings •Advantages •Less impact on taxpayers/more popular with voters •Automatically regulates outstanding debt levels •Disadvantages •Slows the pace of improvements if tax base does not grow as expected •Limits the size of the election Current Plan for Bond Program •Current staff projections show an eight-year $150 to $160 million Bond Election. •If A/V grows faster than projected-less than eight years •If A/V grows slower than projected-more than eight years •Current $210 million ten year program will be complete in six years but we caught the growth curve just right and growth will likely slow at some point. Timing of the Bond Election Process November 4, 2025 Election Day October 20-October 31, 2025 Ea rly Vo t in g August 13, 2025 Bond Committee Disbanded, Any citizen who wishes to form “Vote Yes” Committee is free to do so but Town must remain neutral and provided provide informational literature only. August 12, 2025 Last Council Meeting for Calling Election July 22, 2025 Planned Council Meeting for Calling Election July 8, 2022 Committee Recommendation to Council April -June 2025 Bond Committee receives project presentations and prioritizes projects into ballot questions Timing of the Bond Election Process April 2025 Committee receives a financial overview, Town’s financial policies, debt levels, and “No Tax Rate Increase” size Early April 2025 Preliminary rolls received from CADs and final “No Tax Rate Increase” size is calculated. March 2025 Executive Team prioritizes and refines cost estimates for staff identified projects prior to presentations to committee. December-March 2025 Staff identifies potential projects, creates capital and operating cost estimates and project descriptions. October/November 2024 Kickoff Meeting with whole Committee to explain timing, process and to familiarize them with status of 2020 Bond Program. ______ 2020 Bond Program Status 2020 Bond Program Status 2020 Bond Program Status 19.450 25.200 12.550 5.785 - - - - - - - - - - - - - - 13.805 0.800 9.094 14.904 29.343 19.325 20.512 21.708 26.172 13.253 Series 2025 Series 2026 Series 2027 Series 2028 Series 2029 Series 2030 Series 2031 Series 2032 Series 2033 Series 2034 2024 8,335,296,679 25.99%15,727,864 (25,000) (927,900) 14,774,964 0.177258 0.51 34.8% 2025 9,622,101,595 15.44%18,273,554 (25,000) (1,252,200) 16,996,354 0.180392 0.505 35.7% 2026 10,666,387,485 10.85%17,754,080 2,760,165 (25,000) (1,289,766) 19,199,479 0.180000 0.505 35.6% 2027 11,685,301,317 9.55%17,468,886 2,760,165 2,158,000 (25,000) (1,328,459) 21,033,592 0.180000 0.505 35.6% 2028 12,659,384,288 8.34%17,465,593 2,760,165 2,158,000 1,796,452 (25,000) (1,368,313) 22,786,897 0.180000 0.505 35.6% 2029 13,592,001,695 7.37%17,468,231 2,760,165 2,158,000 1,796,452 1,717,179 (25,000) (1,409,362) 24,465,665 0.180000 0.505 35.6% 2030 14,407,521,796 6.00%16,542,945 2,760,165 2,158,000 1,796,452 1,717,179 2,435,469 (25,000) (1,451,643) 25,933,567 0.180000 0.505 35.6% 2031 15,271,973,104 6.00%16,538,579 2,760,165 2,158,000 1,796,452 1,717,179 2,435,469 1,603,975 (25,000) (1,495,192) 27,489,627 0.180000 0.505 35.6% 2032 16,188,291,490 6.00%16,530,169 2,760,165 2,158,000 1,796,452 1,717,179 2,435,469 1,603,975 1,702,496 (25,000) (1,540,048) 29,138,857 0.180000 0.505 35.6% 2033 17,159,588,980 6.00%16,522,979 2,760,165 2,158,000 1,796,452 1,717,179 2,435,469 1,603,975 1,702,496 1,801,764 (25,000) (1,586,249) 30,887,230 0.180000 0.505 35.6% 2034 18,189,164,319 6.00%16,251,585 2,760,165 2,158,000 1,796,452 1,717,179 2,435,469 1,603,975 1,702,496 1,801,764 2,172,276 (25,000) (1,633,837) 32,740,524 0.180000 0.505 35.6% 2035 18,734,839,248 3.00%16,182,874 2,760,165 2,158,000 1,796,452 1,717,179 2,435,469 1,603,975 1,702,496 1,801,764 2,172,276 1,099,999 (25,000) (1,682,852) 33,722,797 0.180000 0.505 35.6% 2036 19,296,884,426 3.00%15,254,875 2,760,165 2,158,000 1,796,452 1,717,179 2,435,469 1,603,975 1,702,496 1,801,764 2,172,276 1,099,999 (25,000) (1,733,338) 32,744,312 0.169687 0.505 33.6% 2037 19,875,790,958 3.00%14,178,119 2,760,165 2,158,000 1,796,452 1,717,179 2,435,469 1,603,975 1,702,496 1,801,764 2,172,276 1,099,999 (25,000) (1,785,338) 31,615,556 0.159066 0.505 31.5% 2038 20,472,064,687 3.00%13,351,013 2,760,165 2,158,000 1,796,452 1,717,179 2,435,469 1,603,975 1,702,496 1,801,764 2,172,276 1,099,999 (25,000) (1,838,898) 30,734,890 0.150131 0.505 29.7% 2039 21,086,226,628 3.00%12,200,917 2,760,165 2,158,000 1,796,452 1,717,179 2,435,469 1,603,975 1,702,496 1,801,764 2,172,276 1,099,999 (25,000) (1,894,065) 29,529,627 0.140042 0.505 27.7% 2040 21,086,226,628 0.00%11,030,381 2,760,165 2,158,000 1,796,452 1,717,179 2,435,469 1,603,975 1,702,496 1,801,764 2,172,276 1,099,999 (25,000) (1,950,887) 28,302,269 0.134222 0.505 26.6% 2041 21,086,226,628 0.00%10,263,331 2,760,165 2,158,000 1,796,452 1,717,179 2,435,469 1,603,975 1,702,496 1,801,764 2,172,276 1,099,999 (25,000) (2,009,413) 27,476,693 0.130306 0.505 25.8% 2042 21,086,226,628 0.00%7,477,663 2,760,165 2,158,000 1,796,452 1,717,179 2,435,469 1,603,975 1,702,496 1,801,764 2,172,276 1,099,999 (25,000) (2,069,696) 24,630,742 0.116810 0.505 23.1% 2043 21,086,226,628 0.00%5,154,709 2,760,165 2,158,000 1,796,452 1,717,179 2,435,469 1,603,975 1,702,496 1,801,764 2,172,276 1,099,999 (25,000) (2,131,787) 22,245,697 0.105499 0.505 20.9% 2044 21,086,226,628 0.00%2,524,500 2,760,165 2,158,000 1,796,452 1,717,179 2,435,469 1,603,975 1,702,496 1,801,764 2,172,276 1,099,999 (25,000) (2,195,740) 19,551,535 0.092722 0.505 18.4% 2045 21,086,226,628 0.00%2,760,165 2,158,000 1,796,452 1,717,179 2,435,469 1,603,975 1,702,496 1,801,764 2,172,276 1,099,999 (25,000) (2,261,612) 16,961,163 0.080437 0.505 15.9% 2046 21,086,226,628 0.00%2,158,000 1,796,452 1,717,179 2,435,469 1,603,975 1,702,496 1,801,764 2,172,276 1,099,999 (25,000) (2,329,461) 14,133,149 0.067026 0.505 13.3% 2047 21,086,226,628 0.00%1,796,452 1,717,179 2,435,469 1,603,975 1,702,496 1,801,764 2,172,276 1,099,999 (25,000) (2,399,345) 11,905,265 0.056460 0.505 11.2% 2048 21,086,226,628 0.00%1,717,179 2,435,469 1,603,975 1,702,496 1,801,764 2,172,276 1,099,999 (25,000) (2,471,325) 10,036,833 0.047599 0.505 9.4% 2049 21,086,226,628 0.00%2,435,469 1,603,975 1,702,496 1,801,764 2,172,276 1,099,999 (25,000) (2,545,465) 8,245,514 0.039104 0.505 7.7% 2050 21,086,226,628 0.00%1,603,975 1,702,496 1,801,764 2,172,276 1,099,999 (25,000) (2,621,829) 5,733,681 0.027192 0.505 5.4% 2051 21,086,226,628 0.00%1,702,496 1,801,764 2,172,276 1,099,999 (25,000) (2,700,484) 4,051,051 0.019212 0.505 3.8% 2052 21,086,226,628 0.00%1,801,764 2,172,276 1,099,999 (25,000) (2,781,498) 2,267,541 0.010754 0.505 2.1% 2053 21,086,226,628 0.00%2,172,276 1,099,999 (25,000) (2,864,943) 382,332 0.001813 0.505 0.4% 2054 21,086,226,628 0.00%1,099,999 (25,000) (2,950,891) (1,875,892) 294,162,847 47,702,613 43,422,414 37,294,714 33,230,372 48,148,403 33,691,627 33,258,092 36,845,860 38,720,336 38,720,336 (750,000) (55,093,979) 595,593,393 Remaining 2020 Bond Authorization 43,534,905 18,334,905 5,784,905 - - - - - - - 154,311,000 Total Outstanding 212,835,622 203,949,900 226,984,279 241,718,892 250,875,627 257,673,798 271,686,990 274,833,824 277,749,556 280,392,319 285,953,763 Outstanding / TAV 2.55%2.12%2.13%2.07%1.98%1.90%1.89%1.80%1.72%1.63%1.57% *Future Debt assumes 4.5% TIC Total Additional Capacity 2027-2034 Debt Service Long Range Model Bond Committee Meeting, November 19, 2024 Fiscal Year End Authorized GO Other Revenues and Expenses Net Revenue from Frozen I&S Taxes Net Debt Service Projected I&S Tax Rate Total Tax Rate I&S Tax Rate % Certificates of Obligation Additional Capacity Unfrozen Taxable Assessed Valuation % Overall TAV Growth Existing Debt Service 19.450 25.200 12.550 5.785 - - - - - - - - - - - - - - 8.519 - 6.872 12.778 26.330 17.340 18.406 19.478 23.484 11.892 Series 2025 Series 2026 Series 2027 Series 2028 Series 2029 Series 2030 Series 2031 Series 2032 Series 2033 Series 2034 2024 8,335,296,679 25.99%15,727,864 (25,000) (927,900) 14,774,964 0.177258 0.51 34.8% 2025 9,622,101,595 15.44%18,273,554 (25,000) (1,252,200) 16,996,354 0.180392 0.505 35.7% 2026 10,666,387,485 10.85%17,754,080 2,587,133 (25,000) (1,289,766) 19,026,447 0.178378 0.505 35.3% 2027 11,685,301,317 9.55%17,468,886 2,587,133 2,331,000 (25,000) (1,328,459) 21,033,560 0.180000 0.505 35.6% 2028 12,659,384,288 8.34%17,465,593 2,587,133 2,331,000 1,796,535 (25,000) (1,368,313) 22,786,948 0.180000 0.505 35.6% 2029 13,592,001,695 7.37%17,468,231 2,587,133 2,331,000 1,796,535 1,717,069 (25,000) (1,409,362) 24,465,605 0.180000 0.505 35.6% 2030 14,407,521,796 6.00%16,542,945 2,587,133 2,331,000 1,796,535 1,717,069 2,435,525 (25,000) (1,451,643) 25,933,563 0.180000 0.505 35.6% 2031 15,271,973,104 6.00%16,538,579 2,587,133 2,331,000 1,796,535 1,717,069 2,435,525 1,603,950 (25,000) (1,495,192) 27,489,598 0.180000 0.505 35.6% 2032 16,188,291,490 6.00%16,530,169 2,587,133 2,331,000 1,796,535 1,717,069 2,435,525 1,603,950 1,702,555 (25,000) (1,540,048) 29,138,887 0.180000 0.505 35.6% 2033 17,159,588,980 6.00%16,522,979 2,587,133 2,331,000 1,796,535 1,717,069 2,435,525 1,603,950 1,702,555 1,801,715 (25,000) (1,586,249) 30,887,211 0.180000 0.505 35.6% 2034 18,189,164,319 6.00%16,251,585 2,587,133 2,331,000 1,796,535 1,717,069 2,435,525 1,603,950 1,702,555 1,801,715 2,172,270 (25,000) (1,633,837) 32,740,499 0.180000 0.505 35.6% 2035 18,734,839,248 3.00%16,182,874 2,587,133 2,331,000 1,796,535 1,717,069 2,435,525 1,603,950 1,702,555 1,801,715 2,172,270 1,100,010 (25,000) (1,682,852) 33,722,783 0.180000 0.505 35.6% 2036 19,296,884,426 3.00%15,254,875 2,587,133 2,331,000 1,796,535 1,717,069 2,435,525 1,603,950 1,702,555 1,801,715 2,172,270 1,100,010 (25,000) (1,733,338) 32,744,299 0.169687 0.505 33.6% 2037 19,875,790,958 3.00%14,178,119 2,587,133 2,331,000 1,796,535 1,717,069 2,435,525 1,603,950 1,702,555 1,801,715 2,172,270 1,100,010 (25,000) (1,785,338) 31,615,542 0.159066 0.505 31.5% 2038 20,472,064,687 3.00%13,351,013 2,587,133 2,331,000 1,796,535 1,717,069 2,435,525 1,603,950 1,702,555 1,801,715 2,172,270 1,100,010 (25,000) (1,838,898) 30,734,876 0.150131 0.505 29.7% 2039 21,086,226,628 3.00%12,200,917 2,587,133 2,331,000 1,796,535 1,717,069 2,435,525 1,603,950 1,702,555 1,801,715 2,172,270 1,100,010 (25,000) (1,894,065) 29,529,613 0.140042 0.505 27.7% 2040 21,086,226,628 0.00%11,030,381 2,587,133 2,331,000 1,796,535 1,717,069 2,435,525 1,603,950 1,702,555 1,801,715 2,172,270 1,100,010 (25,000) (1,950,887) 28,302,255 0.134222 0.505 26.6% 2041 21,086,226,628 0.00%10,263,331 2,587,133 2,331,000 1,796,535 1,717,069 2,435,525 1,603,950 1,702,555 1,801,715 2,172,270 1,100,010 (25,000) (2,009,413) 27,476,679 0.130306 0.505 25.8% 2042 21,086,226,628 0.00%7,477,663 2,587,133 2,331,000 1,796,535 1,717,069 2,435,525 1,603,950 1,702,555 1,801,715 2,172,270 1,100,010 (25,000) (2,069,696) 24,630,728 0.116810 0.505 23.1% 2043 21,086,226,628 0.00%5,154,709 2,587,133 2,331,000 1,796,535 1,717,069 2,435,525 1,603,950 1,702,555 1,801,715 2,172,270 1,100,010 (25,000) (2,131,787) 22,245,684 0.105499 0.505 20.9% 2044 21,086,226,628 0.00%2,524,500 2,587,133 2,331,000 1,796,535 1,717,069 2,435,525 1,603,950 1,702,555 1,801,715 2,172,270 1,100,010 (25,000) (2,195,740) 19,551,521 0.092722 0.505 18.4% 2045 21,086,226,628 0.00%2,587,133 2,331,000 1,796,535 1,717,069 2,435,525 1,603,950 1,702,555 1,801,715 2,172,270 1,100,010 (25,000) (2,261,612) 16,961,149 0.080437 0.505 15.9% 2046 21,086,226,628 0.00%2,331,000 1,796,535 1,717,069 2,435,525 1,603,950 1,702,555 1,801,715 2,172,270 1,100,010 (25,000) (2,329,461) 14,306,168 0.067846 0.505 13.4% 2047 21,086,226,628 0.00%1,796,535 1,717,069 2,435,525 1,603,950 1,702,555 1,801,715 2,172,270 1,100,010 (25,000) (2,399,345) 11,905,284 0.056460 0.505 11.2% 2048 21,086,226,628 0.00%1,717,069 2,435,525 1,603,950 1,702,555 1,801,715 2,172,270 1,100,010 (25,000) (2,471,325) 10,036,769 0.047599 0.505 9.4% 2049 21,086,226,628 0.00%2,435,525 1,603,950 1,702,555 1,801,715 2,172,270 1,100,010 (25,000) (2,545,465) 8,245,560 0.039104 0.505 7.7% 2050 21,086,226,628 0.00%1,603,950 1,702,555 1,801,715 2,172,270 1,100,010 (25,000) (2,621,829) 5,733,671 0.027192 0.505 5.4% 2051 21,086,226,628 0.00%1,702,555 1,801,715 2,172,270 1,100,010 (25,000) (2,700,484) 4,051,066 0.019212 0.505 3.8% 2052 21,086,226,628 0.00%1,801,715 2,172,270 1,100,010 (25,000) (2,781,498) 2,267,497 0.010753 0.505 2.1% 2053 21,086,226,628 0.00%2,172,270 1,100,010 (25,000) (2,864,943) 382,337 0.001813 0.505 0.4% 2054 21,086,226,628 0.00%1,100,010 (25,000) (2,950,891) (1,875,881) 294,162,847 47,702,613 43,422,414 37,294,714 33,230,372 48,148,403 33,691,627 33,258,092 36,845,860 38,720,336 38,720,336 (750,000) (55,093,979) 595,593,393 Remaining 2020 Bond Authorization 43,534,905 18,334,905 5,784,905 - - - - - - - 136,580,000 Total Outstanding 212,835,622 203,949,900 221,706,979 235,720,905 242,678,944 247,414,344 258,534,008 259,878,748 260,957,011 261,733,591 265,076,927 Outstanding / TAV 2.55%2.12%2.08%2.02%1.92%1.82%1.79%1.70%1.61%1.53%1.46% *Future Debt assumes 5% TIC Certificates of Obligation Additional Capacity Unfrozen Taxable Assessed Valuation % Overall TAV Growth Existing Debt Service Total Additional Capacity 2027-2034 Debt Service Long Range Model Bond Committee Meeting, November 19, 2024 Fiscal Year End Authorized GO Other Revenues and Expenses Net Revenue from Frozen I&S Taxes Net Debt Service Projected I&S Tax Rate Total Tax Rate I&S Tax Rate % 19.450 25.200 12.550 5.785 - - - - - - - - - - - - - - 3.804 - 5.150 11.133 23.995 15.801 16.775 17.751 21.402 10.837 Series 2025 Series 2026 Series 2027 Series 2028 Series 2029 Series 2030 Series 2031 Series 2032 Series 2033 Series 2034 2024 8,335,296,679 25.99%15,727,864 (25,000) (927,900) 14,774,964 0.177258 0.51 34.8% 2025 9,622,101,595 15.44%18,273,554 (25,000) (1,252,200) 16,996,354 0.180392 0.505 35.7% 2026 10,666,387,485 10.85%17,754,080 2,360,281 (25,000) (1,289,766) 18,799,595 0.176251 0.505 34.9% 2027 11,685,301,317 9.55%17,468,886 2,360,281 2,557,800 (25,000) (1,328,459) 21,033,508 0.180000 0.505 35.6% 2028 12,659,384,288 8.34%17,465,593 2,360,281 2,557,800 1,796,550 (25,000) (1,368,313) 22,786,911 0.180000 0.505 35.6% 2029 13,592,001,695 7.37%17,468,231 2,360,281 2,557,800 1,796,550 1,717,167 (25,000) (1,409,362) 24,465,667 0.180000 0.505 35.6% 2030 14,407,521,796 6.00%16,542,945 2,360,281 2,557,800 1,796,550 1,717,167 2,435,493 (25,000) (1,451,643) 25,933,593 0.180000 0.505 35.6% 2031 15,271,973,104 6.00%16,538,579 2,360,281 2,557,800 1,796,550 1,717,167 2,435,493 1,603,802 (25,000) (1,495,192) 27,489,479 0.180000 0.505 35.6% 2032 16,188,291,490 6.00%16,530,169 2,360,281 2,557,800 1,796,550 1,717,167 2,435,493 1,603,802 1,702,663 (25,000) (1,540,048) 29,138,876 0.180000 0.505 35.6% 2033 17,159,588,980 6.00%16,522,979 2,360,281 2,557,800 1,796,550 1,717,167 2,435,493 1,603,802 1,702,663 1,801,727 (25,000) (1,586,249) 30,887,211 0.180000 0.505 35.6% 2034 18,189,164,319 6.00%16,251,585 2,360,281 2,557,800 1,796,550 1,717,167 2,435,493 1,603,802 1,702,663 1,801,727 2,172,303 (25,000) (1,633,837) 32,740,532 0.180000 0.505 35.6% 2035 18,734,839,248 3.00%16,182,874 2,360,281 2,557,800 1,796,550 1,717,167 2,435,493 1,603,802 1,702,663 1,801,727 2,172,303 1,099,956 (25,000) (1,682,852) 33,722,762 0.180000 0.505 35.6% 2036 19,296,884,426 3.00%15,254,875 2,360,281 2,557,800 1,796,550 1,717,167 2,435,493 1,603,802 1,702,663 1,801,727 2,172,303 1,099,956 (25,000) (1,733,338) 32,744,277 0.169687 0.505 33.6% 2037 19,875,790,958 3.00%14,178,119 2,360,281 2,557,800 1,796,550 1,717,167 2,435,493 1,603,802 1,702,663 1,801,727 2,172,303 1,099,956 (25,000) (1,785,338) 31,615,521 0.159065 0.505 31.5% 2038 20,472,064,687 3.00%13,351,013 2,360,281 2,557,800 1,796,550 1,717,167 2,435,493 1,603,802 1,702,663 1,801,727 2,172,303 1,099,956 (25,000) (1,838,898) 30,734,855 0.150131 0.505 29.7% 2039 21,086,226,628 3.00%12,200,917 2,360,281 2,557,800 1,796,550 1,717,167 2,435,493 1,603,802 1,702,663 1,801,727 2,172,303 1,099,956 (25,000) (1,894,065) 29,529,592 0.140042 0.505 27.7% 2040 21,086,226,628 0.00%11,030,381 2,360,281 2,557,800 1,796,550 1,717,167 2,435,493 1,603,802 1,702,663 1,801,727 2,172,303 1,099,956 (25,000) (1,950,887) 28,302,234 0.134221 0.505 26.6% 2041 21,086,226,628 0.00%10,263,331 2,360,281 2,557,800 1,796,550 1,717,167 2,435,493 1,603,802 1,702,663 1,801,727 2,172,303 1,099,956 (25,000) (2,009,413) 27,476,657 0.130306 0.505 25.8% 2042 21,086,226,628 0.00%7,477,663 2,360,281 2,557,800 1,796,550 1,717,167 2,435,493 1,603,802 1,702,663 1,801,727 2,172,303 1,099,956 (25,000) (2,069,696) 24,630,707 0.116809 0.505 23.1% 2043 21,086,226,628 0.00%5,154,709 2,360,281 2,557,800 1,796,550 1,717,167 2,435,493 1,603,802 1,702,663 1,801,727 2,172,303 1,099,956 (25,000) (2,131,787) 22,245,662 0.105499 0.505 20.9% 2044 21,086,226,628 0.00%2,524,500 2,360,281 2,557,800 1,796,550 1,717,167 2,435,493 1,603,802 1,702,663 1,801,727 2,172,303 1,099,956 (25,000) (2,195,740) 19,551,500 0.092722 0.505 18.4% 2045 21,086,226,628 0.00%2,360,281 2,557,800 1,796,550 1,717,167 2,435,493 1,603,802 1,702,663 1,801,727 2,172,303 1,099,956 (25,000) (2,261,612) 16,961,127 0.080437 0.505 15.9% 2046 21,086,226,628 0.00%2,557,800 1,796,550 1,717,167 2,435,493 1,603,802 1,702,663 1,801,727 2,172,303 1,099,956 (25,000) (2,329,461) 14,532,998 0.068922 0.505 13.6% 2047 21,086,226,628 0.00%1,796,550 1,717,167 2,435,493 1,603,802 1,702,663 1,801,727 2,172,303 1,099,956 (25,000) (2,399,345) 11,905,314 0.056460 0.505 11.2% 2048 21,086,226,628 0.00%1,717,167 2,435,493 1,603,802 1,702,663 1,801,727 2,172,303 1,099,956 (25,000) (2,471,325) 10,036,784 0.047599 0.505 9.4% 2049 21,086,226,628 0.00%2,435,493 1,603,802 1,702,663 1,801,727 2,172,303 1,099,956 (25,000) (2,545,465) 8,245,477 0.039104 0.505 7.7% 2050 21,086,226,628 0.00%1,603,802 1,702,663 1,801,727 2,172,303 1,099,956 (25,000) (2,621,829) 5,733,620 0.027191 0.505 5.4% 2051 21,086,226,628 0.00%1,702,663 1,801,727 2,172,303 1,099,956 (25,000) (2,700,484) 4,051,164 0.019212 0.505 3.8% 2052 21,086,226,628 0.00%1,801,727 2,172,303 1,099,956 (25,000) (2,781,498) 2,267,487 0.010753 0.505 2.1% 2053 21,086,226,628 0.00%2,172,303 1,099,956 (25,000) (2,864,943) 382,315 0.001813 0.505 0.4% 2054 21,086,226,628 0.00%1,099,956 (25,000) (2,950,891) (1,875,936) 294,162,847 47,702,613 43,422,414 37,294,714 33,230,372 48,148,403 33,691,627 33,258,092 36,845,860 38,720,336 38,720,336 (750,000) (55,093,979) 595,593,393 Remaining 2020 Bond Authorization 43,534,905 18,334,905 5,784,905 - - - - - - - 122,844,000 Total Outstanding 212,835,622 203,949,900 217,016,819 231,161,207 236,436,707 239,595,420 248,494,295 248,454,793 248,117,921 247,452,064 249,077,415 Outstanding / TAV 2.55%2.12%2.03%1.98%1.87%1.76%1.72%1.63%1.53%1.44%1.37% *Future Debt assumes 5.5% TIC Certificates of Obligation Additional Capacity Unfrozen Taxable Assessed Valuation % Overall TAV Growth Existing Debt Service Total Additional Capacity 2027-2034 Debt Service Long Range Model Bond Committee Meeting, November 19, 2024 Fiscal Year End Authorized GO Other Revenues and Expenses Net Revenue from Frozen I&S Taxes Net Debt Service Projected I&S Tax Rate Total Tax Rate I&S Tax Rate % 1 Summary of Financial Policies The Town’s Administrative Regulations includes 22 chapters with six chapters having the greatest impact on day-to-day financial management and resulting financial position of the Town. These are: Chapter12- Vehicle Equipment and Replacement Fund, Chapter 13 Fund Balance, Chapter 15- Debt Management Policy, Chapter 16-Debt Post Issuance Policy, Chapter 17-Financial Management Policy, Chapter and Chapter 21- Capital Project Management Policy Brief summaries of each policy is included below with the complete policy included as an appendix to this book. To facilitate a logical topic flow, policies will not necessarily be discussed in chapter number order. Chapter 17-Financial Management Policy The rapid growth of the Town has required rapid expansion of personnel, facilities and related finances. To address these issues the following policies are designed to promote strong financial management. Annual Audit. Establishes criteria to ensure that the external auditor hired will be sufficiently experienced in state and local government audits to provide a quality audit. Requires all auditor findings regarding internal controls to be addressed. Operating Budgets. Sets the timing for the budget process and level of budgetary control. Requires a structurally balanced budget in which recurring expenditures may not exceed recurring revenues. Non-recurring expenditures may be funded from recurring revenues, non-recurring revenues and fund balance in excess of policy reserves. Budgets that draw reserves below policy requirements are deficit budgets and a plan must be established to replenish policy reserves. Tax Rate Management. Establishes a capital dedicated portion of the M & O levy that can be used fund pay as you go projects and reduce debt issuance in the short-term and then as capital facilities are built but revenue growth has slowed, can be rediverted to fund operations required for the new facilities. Revenue Management. Does not permit dedication of general revenues for specific purposes. User based fees should be cost based and may be classified as “full” “partial” or “minimal” cost recovery. Impact fees for water, wastewater and roadways will be reassessed every five years. Utility rates will be self-supporting. Expenditure Control. All expenditures must be appropriated by budget. Operating appropriations that are not expended or encumbered at year end lapse. Financial Condition and Reserves. Reinforces the requirement for no operating deficits. Establishes General Fund Reserve at the 20% charter reserve as restricted fund balance and unassigned fund balance of 1% for a total of 21% (2 ½ months of expenditures). Establishes $25,000 cash reserve for both Fire and Crime Control Special Purpose Districts. Requires enterprise funds to be self-sufficient. Chapter 13- Fund Balance Policy Establishes the basis and need for maintaining minimum fund balance reserves, defines categories of fund balance for financial reporting and references GFOA Best Practices for determining adequate fund balance. Fund Balance is set at a total of 21% (21/2 months expenditures) for the General Fund, 3-5% for Debt Service Fund, 25% (3 months expenses) for the Water and Sewer Fund, $250,000 for the Solid Waste Fund and 17% (2 months expenses) for the Stormwater Utility Fund. Chapter 21- Capital Projects Management Policy The rapid growth of the Town has created oversized capital budgets relative to operating budgets and have resulted in long-term agreements with developers for construction 2 of infrastructure that may not be completed for many years following the agreement. From a materiality standpoint infrastructure is often the largest single item in a government’s financial statement and must be properly accounted for. The policy requires departments to furnish to finance all developer related agreements and contracts. Upon receipt, finance will analyze the contract for proper accounting treatment including the specific “triggers” that must occur before the transaction is recognized. Annual closing procedures include review of all open agreements and their status. Chapter 12-Vehicle Equipment and Replacement Fund (VERF) Creates an internal service fund of the Town for the purpose of smoothing the budget impact of large vehicle and equipment purchases. This approach has the advantage of avoiding debt financing allowing the Town to avoid deferring maintenance during times of economic downturn and tight budgets. Key provisions include: 1) All equipment and vehicle are owned by the VERF. 2) Using departments are charged a monthly fee that is accumulated towards replacement. 3) All items replaced are surrendered by the department with disposal proceeds retained by VERF. 4) New items due to new programs or positions must be included as part of the annual budget process and then are donated to VERF. 5) VERF cash balances should approximately equal (defined as +/- 10%) accumulated depreciation in the fund. Chapter 15- Debt Management Describes the type of debt issuance available to the Town and the circumstances in which each type of debt may be used. Preference is given to alternate financing means such as PAYGO programs or capital grants. When debt issuance is necessary, preference is given to voter-approved governmental debt vs. non-voter approve debt. For capital assets for enterprise activities, the intent is to pay all debt service from the revenues of the enterprise operation. Debt issuance should be limited to the acquisition or construction of long-lived capital assets and never be issued to fund current operations. The maximum final maturity for governmental fund and enterprise fund debt is 20 and 30 years respectively. For general obligation governmental debt, the debt service tax levy should never exceed 40% of the total tax levy. Total tax supported debt should also not exceed 4% of taxable assessed valuation. It is the Town’s intent that enterprise fund debt service be paid from the revenues generated from the enterprise activities. If Revenue Bonds are issued, the Town will maintain a coverage ratio of at least 1.25% of net operating revenue available for debt service to maximum annual debt service. Chapter 16-Debt Post Issuance Policy Details the process following debt issuance including tax certificates, Attorney General filing, SEC Continuing Disclosure (15C2-12), recordkeeping, use of proceeds and Arbitrage Rebate and Yield calculations. March 4, 2025, 2025 Bond Election Committee Meeting Infrastructure Hulon T. Webb, Jr., P.E. Director of Engineering Services Coit Road (US 380 - Frontier Parkway) Design: 2 lanes to be designed to expand the current 4 lanes to the ultmate 6-lane divided roadway.1,200,000$ Legacy Drive (US 380 - Frontier Parkway) Design: 2 lanes to be designed to expand the current 4 lanes to the ultmate 6-lane divided roadway.1,000,000$ Teel Parkway (US 380 - Parvin Road) Design: 2 lanes to be designed to expand the current 4 lanes to the ultmate 6-lane divided roadway.1,000,000$ SUBTOTAL DESIGN 3,200,000.00$ Traffic Signals Design & Construction: 10 traffic signals at $600,000/each 6,000,000$ SUBTOTAL TRAFFIC SIGNALS 9,200,000.00$ Street Lights Coit Road (Lakewood - Frontier)3,000,000$ Street Lights First Street (Gee - DNT)5,000,000$ Street Lights First Street (DNT - Coleman)1,500,000$ Street Lights First Street (Craig - Custer)5,000,000$ Street Lights Prosper Trail (DNT - Custer)7,500,000$ Street Lights Teel Parkway (US 380 - Parvin)4,500,000$ Street Lights Legacy Drive (US 380 - Parvin)4,500,000$ SUBTOTAL STREET LIGHTS 31,000,000.00$ ID ROADWAY DESCRIPTION COST* 1 Legacy Drive (Prosper Trail - Parvin) Reimbursement to PISD: 2 lanes of ultimate 6-lane divided roadway with concrete, curb and underground drainage from Prosper Trail to Parvin Road. Includes oversize participation of 16" water line. 10,000,000$ 2 Coleman Road (First - Gorgeous) ROW & Construction: 2-lane ultimate divided roadway and on-street parking with concrete, curb and underground drainage from First Street to Gorgeous.9,000,000$ 3 Gee Road (US 380 - FM 1385) Construction: Denton County Bond Project for ultimate 6-lane divided roadway with concrete, curb and underground drainage from US 380 to east of proposed intersection of FM 1385. 20,000,000$ 4 Teel Parkway (First - Freeman) ROW & Construction: 2 lanes on west side of divided roadway with concrete, curb and underground drainage from First Street to Freeman Road to complete 4 lanes. Teel Parkway to be a 6-lane ultimate divided roadway. 9,500,000$ 5 First Street (Craig - Coleman) Construction: 3-lane undivided roadway with concrete, curb and underground drainage from Craig Street to Coleman Road. Includes 8' trail on south side. 10,500,000$ 6 Prosper Trail (Legacy - DNT) Construction: 2 lanes on north side of divided roadway with concrete, curb and underground drainage from Legacy Road to Dallas North Tollway to complete 4 lanes 10,000,000$ 7 Legacy Drive (Star Trail - Legacy MS) Design, ROW & Construction: 2 lanes on west side of divided roadway with concrete, curb and underground drainage from Star Trail to Legacy Middle School to complete the 4 lanes. Legacy Drive to be a 6-lane divided roadway. 5,800,000$ 8 Prosper Trail (Teel - Legacy) Design, ROW & Construction: 2 lanes on north side of divided roadway with concrete, curb and underground drainage from east of Teel Parkway to Legacy Road to complete 4 lanes 12,000,000$ 9 Gorgeous (LIV - Coleman) ROW & Construction: 2 lanes concrete, curb and underground drainage from the LIV development to Coleman road to complete the connection with McKinley Drive.2,500,000$ 10 Broadway (Coleman - Preston) Design and Construction: 2-lane ultimate divided roadway and on-street parking with concrete, curb and underground drainage from Coleman Road to Preston Road.10,000,000$ 11 Business Park Drive (Lovers Lane/Godwin - First) Design, ROW & Construction: 2 lanes concrete, curb and underground drainage from Lovers Lane/Godwin Parkway to First Street.6,300,000$ 12 Teel Parkway (Prosper Trail - Parvin) Design, ROW & Construction: 2 lanes on west side of divided roadway with concrete, curb and underground drainage from Prosper Trail to Parvin Road to complete the 4 lanes. Teel Parkway to be a 6-lane ultimate divided roadway. 9,700,000$ 13 Frontier Parkway (Legacy - DNT) ROW & Construction: 2 lanes of sourth side of divided roadway with concrete, curb and underground drainage from Legacy Drive to Dallas North Tollway. 7,000,000$ 14 Parvin Road (FM1385 - Legacy Drive) ROW & Construction: Joint project with the City of Celina and possibly Denton County. 4 lane divided concrete, curb and underground drainage from FM 1385 to Legacy Drive. Parvin Road to be a 6-lane ultimate divided roadway. 25,000,000$ SUBTOTAL CONSTRUCTION 147,300,000.00$ Roundabout (La Cima/First Street)Design and Construction: 3 way intersection of (2) 4-lane minor thoroughfares 2,500,000$ Roundabout (Richland/Lakewood)Design and Construction: 4 way intersection of (2) collector roadways 2,500,000$ Roundabout (TBD) Possible location(s): Shawnee/Prosper Trail; Shawnee/First; Lovers Lane/Mahard; Lovers Lane/Business Park Drive; First/Mike Howard; Prosper Trail/Mike Howard 3,000,000$ SUBTOTAL ROUNDABOUT 8,000,000.00$ TOTAL PROPOSED 2025 - 2035 195,500,000$ ALTERNATE FUNDING: POTENTIAL REGIONAL FUNDING (50% PARTICIPATION): GEE ROAD 10,000,000$ POTENTIAL DEVELOPMENT AGREEMENTS 6,300,000$ POTENTIAL REGIONAL FUNDING (50% PARTICIPATION): PARVIN ROAD 12,500,000$ POTENTIAL ROADWAY IMPACT FEES 12,200,000$ TOTAL PROPOSED INFRASTRUCTURE BOND FUNDING 154,500,000$ FOR CONSIDERATION/DISCUSSION: REMOVE TOWN 50% PARTICIPATION FUNDING: PARVIN ROAD 12,500,000$ REMOVE PROJECT FUNDING 22,500,000$ DO NOT INCLUDE STREET LIGHTS 31,000,000$ REVISED TOTAL PROPOSED INFRASTRUCTURE BOND FUNDING 88,500,000$ ID ROADWAY DESCRIPTION COST* 1 Legacy Drive (Prosper Trail - Parvin) Reimbursement to PISD: 2 lanes of ultimate 6-lane divided roadway with concrete, curb and underground drainage from Prosper Trail to Parvin Road. Includes oversize participation of 16" water line. 10,000,000$ 2 Coleman Road (First - Gorgeous) ROW & Construction: 2-lane ultimate divided roadway and on-street parking with concrete, curb and underground drainage from First Street to Gorgeous.9,000,000$ 3 Gee Road (US 380 - FM 1385) Construction: Denton County Bond Project for ultimate 6-lane divided roadway with concrete, curb and underground drainage from US 380 to east of proposed intersection of FM 1385. (50% Funding Participation) 10,000,000$ 4 Teel Parkway (First - Freeman) ROW & Construction: 2 lanes on west side of divided roadway with concrete, curb and underground drainage from First Street to Freeman Road to complete 4 lanes. Teel Parkway to be a 6-lane ultimate divided roadway. 9,500,000$ 5 First Street (Craig - Coleman) Construction: 3-lane undivided roadway with concrete, curb and underground drainage from Craig Street to Coleman Road. Includes 8' trail on south side. 10,500,000$ 6 Prosper Trail (Legacy - DNT) Construction: 2 lanes on north side of divided roadway with concrete, curb and underground drainage from Legacy Road to Dallas North Tollway to complete 4 lanes 10,000,000$ 8 Prosper Trail (Teel - Legacy) Design, ROW & Construction: 2 lanes on north side of divided roadway with concrete, curb and underground drainage from east of Teel Parkway to Legacy Road to complete 4 lanes 12,000,000$ 9 Gorgeous (LIV - Coleman) ROW & Construction: 2 lanes concrete, curb and underground drainage from the LIV development to Coleman road to complete the connection with McKinley Drive.2,500,000$ 10 Broadway (Coleman - Preston) Design and Construction: 2-lane ultimate divided roadway and on-street parking with concrete, curb and underground drainage from Coleman Road to Preston Road.10,000,000$ SUBTOTAL CONSTRUCTION 83,500,000.00$ Roundabout (La Cima/First Street)Design and Construction: 3 way intersection of (2) 4-lane minor thoroughfares 2,500,000$ Roundabout (Richland/Lakewood)Design and Construction: 4 way intersection of (2) collector roadways 2,500,000$ SUBTOTAL ROUNDABOUT 5,000,000.00$ REVISED TOTAL PROPOSED INFRASTRUCTURE BOND FUNDING 88,500,000$