08.12.25 Town Council Meeting PresentationWelcome to the August 12, 2025,
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
Consent Agenda
Agenda Item 1.
Consider and act upon the minutes of the July 22, 2025, Town
Council Work Session meeting. (MLS)
Agenda Item 2.
Consider and act upon the minutes of the July 22, 2025, Town
Council Regular meeting. (MLS)
Agenda Item 3 .
Receive the Quarterly Investment Report for the Third Quarter.
(CL)
Agenda Item 4.
Consider and act upon an ordinance amending Division 7,
"Addressing the Town Council," of Article 1.02 of Chapter 1 of
the Town's Code of Ordinances by adding Section 1.02.194,
"Addressing the Town Council." (TW)
Agenda Item 5.
Consider and act upon authorizing the Town Manager to
execute an Interlocal Cooperation Agreement between the Town
of Litle Elm and the Town of Prosper for the Coordination of the
Ironman Competition route. (MC)
Agenda Item 6.
Consider and act upon authorizing the Town Manager to execute
a Construction Agreement awarding Competitive Sealed Bid No.
2025-11 -B to Ratliff Hardscape, Ltd. for the Doe Branch
Pedestrian Trail and Bridge in the amount of $1,458,730. (DB)
Agenda Item 7.
Consider and act upon authorizing the Town Manager to execute
the Roadway Design, Construction and Reimbursement
Agreement between Prosper Economic Development
Corporation, Blue Star Land L.P., and the Town of Prosper,
Texas, related to the design and construction of Godwin Parkway.
(HW)
Agenda Item 8.
Consider and act upon authorizing the Town Manger to execute
Contract Amendment No. 1 to the Professional Engineering
Services Agreement between Freese and Nichols, Inc., and the
Town of Prosper, Texas, related to the design of the Custer Road
6MG Ground Storage Tank project for $164,750. (PA)
Agenda Item 9.
Consider and act upon an ordinance to rezone 0.6± acre from
Planned Development to Single Family-15 on Haiman Addition,
Block A, Lot 1, on 0.6± acre, located on the north side of Seventh
Street and 120± feet west of Church Street. (ZONE-24-0002)
(DH)
Agenda Item 10.
Consider and act upon authorizing the Town Manager to execute
a Development Agreement between Haiman Family Wealth Trust
and the Town of Prosper relative to Haiman Addition, Block A, Lot
1, on 0.6± acre, located on the north side of Seventh Street and
120± feet west of Church Street. (DEVAGRE-25-0001) (DH)
Agenda Item 11.
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)
Preston and Frontier,
Block A, Lots 1-4
(DEVAPP-23-0183)
Information
Purpose:
•Construct nine commercial buildings on four lots totaling 138,733 square feet and associated parking.
•Lot 1: Grocery Store (78,517 SF)
•Lot 2: Convenience Store with Gas Pumps (3,128 SF)
•Only permitted in association with grocery store on Lot 1 as noted in the Site Data Summary
Table.
•Lot 3: Bank (4,261 SF), Restaurant (3,001 SF)*, and Two Restaurant/Retail Buildings (24,860 SF)
•Lot 4: Two Restaurants (8,008 SF)* and a Restaurant/Retail Building (16,958 SF)
* All drive-through restaurants will require approval of a Specific Use Permit. *
Information Cont.
History:
•Project submitted in October of 2023
•Prior to Zoning Ordinance Amendment for Drive-Through Regulations
Property Owners’ Association (POA):
•Prior to platting the property into separate lots, a POA will be finalized to establish duties and
responsibilities for the lots within the development.
Information Cont.
Staff Conditions:
•Drive-Through Restaurants subject to approval of a Specific Use Permit.
•Convenience Store with Gas Pumps to be associated with Grocery Store.
•Creation of Property Owner’s Association prior to recordation of a plat to subdivide the property.
August 5, 2025: Planning & Zoning Commission approved the item by a vote of 4 -0, subject to Town Staff’s
recommendations including the clarification that the convenience store with gas pumps being associated
with the grocery store means one may not be constructed without the other.
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.
Consider and act upon an ordinance calling a Bond Election to be
held on November 4, 2025, and providing for the administration of
the Election. (RBS/CL)
Bond Committee To Date
❑On September 24, 2024, Town Council appointed a bond committee
of ten citizens and three council liaisons
❑The committee was given the following charges:
❑Present a recommendation for a “No Tax Rate Increase” Bond Election
❑Capacity was determined to be $165 million (later revised to $184
million
❑Projects initially considered included infrastructure, parks, library, police
expansion
❑Projects reflective of the Town’s Strategic Vision and community values
❑As a starting point capacity was split 55%/45% Infrastructure to all other
projects
Bond Committee To Date
❑The committee met seven times to:
❑Hear presentations from Town staff and consultants
❑Tour current Town facilities
❑Tour similar facilities in nearby communities
❑Prioritize and reprioritize projects to stay within budget and best
balance needs and community values
❑On July 22, 2025 Council Meeting, Chair Kevin Greene presented the
committee’s final recommendation and each Director with referendum
questions reviewed in detail the projects comprising their referendum
question.
Bond Committee Members
•Committee Members •Council Liaisons
•Mayor Pro-Tem Bartley
•Deputy Mayor Pro-Tem Kern
•Councilmember Reeves
•Kevin Greene, Chair
•Brett Butler
•Shane Funk
•Yvette Leslie
•Rory Conley
•Thomas Crystal
•Jason Browning
•Valerie Rodriguez
•Leigh Gressett
•Bob Benson
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.
Committee Recommendation
•Ultimately the Committee decided on a 46/54% split between
Infrastructure and Other Needs with the recommending:
•Streets $ 84,300,000
•Police Building Expansion 29,000,000
•Library 34,200,000
•Parks and Recreation 24,000,000
•Public Works/Parks Service Center 10,000,000
•Historic Silo Renovation 2,300,000
•Total $183,800,000
Summary of Recommended Questions
Referendum Question 1-Streets $84,300,000 for the purpose of designing, constructing, reconstructing, improving,
extending, expanding, upgrading and developing streets, roads, sidewalks, thoroughfares and related improvements
in the Town.
Referendum Question 2-Police $29,000,000 for the purpose of constructing, installing, acquiring and equipping
additions, extensions, renovations and improvements to the police headquarters.
Referendum Question 3-Library $34,200,000 for the purpose of constructing and equipping a new library facility
separate from Town Hall.
Referendum Question 4-Parks and Recreation $24,000,000 for the purpose of enhancing current Parks and
Recreation offerings by designing, constructing, improving, equipping of parks, trails, bridges and sports fields and
courts and other recreational facilities
Referendum Question 5- Public Works/Parks Service Center $10,000,000 for the purpose of designing, constructing
and equipping a permanent public works and parks service center at the current service center location
Referendum Question 6- Silo Renovations $2,300,000 for the purpose of repairing, preserving and improving the
three historic silos located west of the railroad tracks and to the southwest of the end of Broadway Street
Ballot Wording
•See the proposed ordinances in the agenda packet for the full
wording for each proposed referendum question.
•State law requires that each referendum question begin with the
statement: THIS IS A PROPERTY TAX INCREASE;
•The Town has adopted the Senior and Disabled tax freeze. Those
individuals qualifying for this freeze will see no tax property increase
•It is the Town’s intent to issue new debt only if it will not require raising
the current DS tax rate so property owners will only see their taxes
increase if their respective appraisal district increases values.
New Developments
•Since the committee formed their recommendation:
•Certified roll has been received and Finance staff calculated
issuance capacity at $190 million.
•Development services has requested the extra capacity be used to
renovate the worse parts of north bound access road of the future
DNT at $8.5 million
•Staff has been asked if it is possible to find alternatives other than
bond funding to renovate and preserve the Town owned silos.
•To accommodate these requests, staff requested Bond
Counsel to draft three alternative ordinances:
New Developments:
•Staff requested Bond Counsel to draft three alternative
ordinances:
•Option 1: $183.8 million with six questions per the original
Committee recommendation
•Option 2: $192.3 million with same six questions but Question 1-
Infrastructure has been increased by $8.5 million to $92.8 million
to include NB access road
•Option 3: $190 million starts with Option 2 but drops Question 6-
Silos $2.3 million given request to staff explore alternatives
•Bond Counsel will also be present to further modify any
Option.
Agenda Item 13.
Discuss and consider submission of the Preliminary Fiscal Year
2025-2026 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.
Budget Timeline
February 28, 2025 Multi-Year Budget Projections
Spring/Summer 2025 Sub-Committee Meetings on Capital Project
Prioritization, Debt Issuance, Market Adjustments
June 24, 2025 Budget Workshop at Council Work Session
July 25, 2025 Certified Rolls
August 12, 2025 Presentation of Preliminary Budget,
Passage of all items needed to begin
Budget Adoption Process.
Budget Timeline
Before August 22, 2025 Sub-Committee Meetings per Council Direction
August 28, 2025 Budget Town Hall Meeting
September 16, 2025 Budget Public Hearing, Final Changes (if any)
and Adoption; Tax Rate Public Hearing and
Adoption; Tax Increase Ratification
Budget in Brief
Total FY 2025-2026 Preliminary Budget Operating Appropriations $124,569,796
including:
•$68,131,354 for General Fund operations and maintenance,
•$3,427,736 for the Crime Control and Prevention Special Purpose District,
•$3,460,919 for the Fire Control, and Emergency Medical Services Special
Purpose District,
•$49,549,787 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 $19,264,147.
Governmental Capital Projects added for the year total $59.6 million.
Key General Fund Revenue Drivers
For FY 2025-2026, General Fund revenues are expected to total $68,322,095
which is an increase of 29.6% over the previous year’s amended budget. This
large increase in additional revenue is driven mostly from the transfer in of the
Special Purpose Districts to pay for Public Safety personnel that are now located in
the General Fund. Other increases come from property tax, sales tax, and
franchise fees.
The Preliminary Budget reflects 7.2% growth from FY 2024-2025 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 $13,199,055 for FY
2025-2026.
Fee Increases
Proposed Fee Increases Include:
•PILOT Revenue from 2% to 4% of gross water receipts - $833,000
•Development Fees - $1,400,000
•Building Inspections
•Multi-Family Registrations
•Health Permits
•Engineering Fees - $364,130
•Inspections
•Plan Review
•Land Disturbance
•Flood Study
General Fund Staffing
Department Title Start Date FTE Recurring One-time
Grant
Revenue Year 2
Finance Fiscal Services Specialist 10/1/2025 1 82,502 970 - 84,859
Police Crime Analyst 10/1/2025 1 107,127 4,162 111,289 109,766
Police Auto Theft Prevention Coordinator 10/1/2025 1 166,017 73,716 239,733 170,628
Police Police Officers 10/1/2025 4 623,570 388,584 - 667,304
Fire Firefighter/Paramedic 10/1/2025 9 1,376,339 87,406 -1,461,156
Public Works Traffic Signal Technician 10/1/2025 1 99,672 3,635 - 102,486
Parks Irrigation Technician 10/1/2025 1 74,505 73,000 - 76,740
Parks Chemical Technician 10/1/2025 1 72,878 23,000 - 75,064
Library Circulation Supervisor 10/1/2025 1 74,675 3,230 - 76,142
Total General Fund 20 2,677,285 657,703 351,022 2,824,145
Other Funds Staffing
Water/Wastewater Fund
Department Title Start Date FTE Recurring One-time
Grant
Revenue Year 2
Public Works Water System Technician/SCADA 10/1/2025 1 115,254 51,844 - 117,833
Public Works Utility Compliance Superintendent 10/1/2025 1 136,116 56,669 - 139,879
Total Water/Wastewater Fund 2 251,370 108,513 - 257,712
Stormwater Drainage Fund
Department Title Start Date FTE Recurring One-time
Grant
Revenue Year 2
Public Works Heavy Equipment Operator 10/1/2025 1 92,797 - - 96,181
Total Stormwater Drainage Fund 1 92,797 - - 96,181
Fund Recurring
General Fund - Police-Sworn 244,996
General Fund - Fire-Sworn 286,142
General Fund 174,683
Water/Wastewater 137,146
Stormwater Drainage 19,437
Total Market Study 862,403
Market Study
•Public Safety Market Methodology
•Increase to competitive market average
•Non-Public Safety Market Methodology
•Increase to minimum market average
•Adjust for salary compression within departments based on tenure in current
position
•As claims have significantly increased in the current year, we
are managing a shortfall through the Amended Budget with a
transfer of $1.1 million from the General Fund.
•This affects the FY 2025-26 Budget that we are diligently
working with our consultant to balance.
•It has been presented unbalanced to show how much ground
needs to be made up but will be balanced before Adoption.
•Staff has budgeted for a 24% increase to the Town’s premiums
and will ask employees to pick up a 5 to 10% increase
depending on their chosen plan.
Health Fund
Major General Fund Enhancements
Administration:
Comprehensive Compensation and Benefits Funding -
$706,000
ERP System Maintenance - $309,408
Fiscal Services Specialist - $83,472
Risk Management Consultant - $25,000
Police:
4 Police Officers - $1,012,154
Vehicle Expense Funding - $171,949
MVCPA Task Force Grant - $261,910
MVCPA Catalytic Converter Grant - $61,966
Fire:
Fire Station #4 Minimum Staffing - $1,463,745
Vehicle Maintenance - $75,000
Development Services:
Animal Services Contract Increase - $189,400
Streets and Facility Maintenance:
Traffic Signal Technician - $103,307
Community Services:
Irrigation Technician - $103,307
Raymond Park Water - $370,000
Chemical Technician - $95,878
Circulation Supervisor - $77,905
Debt Service Fund
•Add Series 2025 authorized by Council - $43.5 Million
•$190 million available for 2025 Bond Election for 8 years
•Increases I&S Rate from 0.180392 to 0.182946
•36% I&S percentage of total Tax Rate (below 40%)
•Outstanding Total Debt of $268,592,135 at end of FY25-26
•2.12% Outstanding Total Debt as a percentage of TAV (below 4%)
•$4,425 Outstanding Total Debt per Capita
Debt Service Fund
Governmental Capital Projects
•$59.6 million Total in Projects
•$43.4 million in Streets Projects
•$9.1 million in Parks Projects
•$7 million in Facility Projects
Multi-Year Capital Program/Debt Issuance
Recently Approved Bonds Series 2025
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 lanes: (Construction) $8,200,000
•Coleman (Prosper Trail – Talon) 2 SB Lanes (Land/Esmt) $1,500,000
•Legacy (First – Prosper Trail) 2 SB Lanes (Land/Esmt) $550,000
•Legacy (First – Prosper Trail) 2 SB Lanes (Construction) $200,000
TOTAL $19,450,000
Multi-Year Capital Program/Capital Dedicated
Transfer to GF Construction Personnel
•Transfer to GF Construction Personnel $1,479,216
Street
•Frontier Parkway/DNT(West Side Intersection) $1,000,000
Unprogrammed $2,427,632
TOTAL $10,503,910
Facilities
•Town Hall Open Space $200,000
•Parks and Public Works Facility, Phase 1 $5,397,062
Pay-as-you-go Funding
Historical Property Valuation
Fiscal Year
Valuation
Excluding Freeze Growth New Property
Growth
from New
Property
Reappraisal
Growth
Growth from
Reappraisal
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%870,499,826 10.5%416,305,090 4.9%
2025-2026 10,806,491,907 12.3%758,780,238 7.9%425,610,074 4.4%
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
2025-2026 2024-2025
No-New-Revenue Tax Rate $0.482348 $0.466941
Voter-Approval Tax Rate $0.505000 $0.522075
Debt Rate (I&S Rate)$0.182946 $0.180392
Adopted Rate -$0.505
Proposed Rate $0.505 -
Historical Property Tax Rate
Tax Rate 2021-
2022
2022-
2023
2023-
2024
2024-
2025
2025-
2026
FY25 to
FY26
Change
General
Fund
0.328000 0.221830 0.230742 0.224608 0.224854 0.000246
Capital
Dedicated
-0.108000 0.102000 0.100000 0.097200 (0.002800)
Debt Service 0.182000 0.180170 0.177258 0.180392 0.182946 0.002554
Total 0.510000 0.510000 0.510000 0.505000 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 3.00%0.360213 -0.146987 0.507200 0.491984 No
Celina None 0.287061 -0.311107 0.598168 0.598168 Yes
Coppell 5.00%0.392071 -0.070151 0.462222 0.439111 No
Flower Mound 12.50%0.348344 -0.038956 0.387300 0.338888 No
Frisco 20.00%0.283406 -0.142111 0.425517 0.340414 Yes
Keller 20.00%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 13.42%0.320568 -0.118766 0.439333 0.406947 -
Prosper (FY2024-2025)17.50%0.224608 0.100000 0.180392 0.505000 0.416625 Yes
Prosper (FY2025-2026)17.50%0.224854 0.097200 0.182946 0.505000 0.416625 Yes
Prosper
ISD
63%
Town of
Prosper
26%
Collin
County
7%
Collin
College
4%
Prosper
ISD
64%
Town of
Prosper
26%
Denton
County
10%
FY2024-2025 Total Tax Rate
Entity
FY2025-2026
Proposed Tax Rate
Prosper ISD 1.2376
Town of Prosper 0.505
Collin County 0.149343
Collin College 0.08122
TOTAL 1.973163
Entity
FY2024-2025
Proposed Tax Rate
Prosper ISD 1.2376
Town of Prosper 0.505
Denton County 0.187869
TOTAL 1.930469
Entity
FY2024-2025
Proposed Tax Rate
Denton ISD 1.1592
Town of Prosper 0.505
Denton County 0.187869
TOTAL 1.852069
Denton
ISD
63%
Town of
Prosper
27%
Denton
County
10%
Water and Wastewater Rates
Utility Fund-Distribution and Collection Utility
•Potable Water Supplier proposing over 14.9% 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 8.8% next year (6.26% water
and 15.08% wastewater)
Wholesale Expenses
Source: NewGen Strategies and Solutions, LLC
Proposed Rate Increase
Source: NewGen Strategies and Solutions, LLC
Rate Comparison
Other Funds
Solid Waste Fund
•Created in 2023, the fund is self-supporting through rates.
Stormwater Drainage
•Proposed rate increase of $1 across all rate categories . Proposed
rates are:
•Residential Tier 1 $4.00
•Residential Tier 2 $6.15
•Commercial $2 per 1,000 sqft. of impervious surface
•Last rate increase was in 2018.
CIP Funds
•Subject to change with CIP Subcommittee meeting
Agenda Item 14.
Consider and act upon accepting submission of the tax year
2025, fiscal year 2025-2026, no-new-revenue tax rate of
$0.482348 per $100 taxable value, voter-approval tax rate of
$0.505000 per $100 taxable value, and preliminary property tax
rate of $0.505000 per $100 taxable value. (CL)
Agenda Item 15.
Consider and act upon a proposed FY 2025-2026 property tax
rate. (CL)
Agenda Item 16.
Consider and act upon scheduling a Public Hearing on the FY
2025-2026 Proposed Budget. (CL)
Agenda Item 17.
Consider and act upon scheduling a Public Hearing on the
proposed Fiscal Year 2025-2026 tax rate. (CL)
Agenda Item 18.
Conduct a Public Hearing to receive public comments concerning
the amendment of the land use assumptions and capital
improvements plan, and the imposition of an impact fee for water,
wastewater, and roadway utilities. (DLH)
August 12, 2025
Roadway, Water & Wastewater
Impact Fee Update
Public Hearing
79
PRESENTATION OVERVIEW
Impact Fee Process & Land Use Assumptions
W/WW Impact Fee Analysis
Roadway Impact Fee Analysis
80
Comparison with Other Cities4
5 CIAC Involvement and Recommendation
IMPACT FEE BASICS
•A one-time charge against new development to pay
for all or a portion of costs associated with new or
expanded infrastructure needed to serve growth
•Mechanism to recoup funding for the infrastructure
necessary to accommodate new development
•Developed based on requirements in Chapter 395 of
the Texas Local Government Code
•Limited to water, wastewater, roadway, and drainage
infrastructure
An impact fee is…
81
IMPACT FEE BASICS
Items can be paid for through
impact fees:
•Construction of capital
improvements on Impact Fee
CIP
•Existing infrastructure with
excess capacity to serve growth
•Engineering and surveying fees
•Land acquisition costs
•Debt service on impact fee CIP
projects
Items cannot be paid for
through impact fees:
•Capital improvements not
identified in the Impact Fee CIP
•Operations and maintenance
costs
•Improvements to remedy
existing deficiencies
•Administrative costs to manage
the IF program
•Debt service on ineligible items
82
IMPACT FEE PROCESS
•Determine existing customer base
•Estimate residential and non-residential growth over next 10-years
•Develop water demand and wastewater flow projections
Develop Land Use
Assumptions
•Utilize Land Use Assumptions to determine required system improvements to serve 10-year
growth
Update Capital
Improvement Plans
•Determine 10-year capacity utilization for projects
•Establish growth in Service Unit Equivalents (SUEs)
•Calculate maximum allowable impact fee
Conduct Impact Fee
Calculations
•Three CIAC meetings
•One Town Council PresentationStakeholder Meetings
•One presentation to Town Council
•Public Hearing requires 30-day public notice
Public Hearing and
Adoption of Ordinance
83
SERVICE AREAS
84
•W/WW service
area is the town
limits plus ETJ
•Roadway service
area is the town
limits
DEVELOPED NON-RESIDENTIAL ACREAGE BY PLANNING AREA
85
Year Acres
Average
Annual
Growth in
Acres
2023 1,492 -
2028 2,324 166
2033 3,640 263
Buildout 4,829 -
POPULATION BY PLANNING AREA
86
Year Population
Population
Growth
Growth
Rate
2014 14,710 --
2015 15,970 1260 8.6%
2016 17,790 1820 11.4%
2017 20,160 2,370 13.3%
2018 22,650 2,490 12.4%
2019 25,630 2,980 13.2%
2020 30,165 4,535 17.7%
2021 31,090 925 3.1%
2022 35,410 4,320 13.9%
2023 38,843 3,433 9.7%
Average --11.5%
Year Population
Average
Annual
Population
Growth
Average
Annual
Growth Rate
2023 38,843 --
2028 53,393 2,910 7%
2033 64,437 2,209 4%
PRESENTATION OVERVIEW
Impact Fee Process & Land Use Assumptions
W/WW Impact Fee Analysis
Roadway Impact Fee Analysis
87
Comparison with Other Cities4
5 CIAC Involvement and Recommendation
WATER IMPACT FEE CAPITAL IMPROVEMENTS PLAN
88
WASTEWATER IMPACT FEE CAPITAL IMPROVEMENTS PLAN
89
IMPACT FEE CALCULATION
•Impact Fees Calculated by
Dividing Eligible CIP/Growth in
Service Units
•Credit of 50% for the portion
of ad-valorem taxes generated
by CIP improvements
•Fee collected can be less than
maximum
Eligible CIP CostImpact Fee Per Service Unit =New Service Units X 50%
90
WATER AND WASTEWATER SERVICE UNITS
•1” meter is the standard service unit for water and wastewater
•Dependent on meter type
•Larger meters converted using equivalency table
➢Based on proportion of flow to the standard service unit
➢SUE = Service Unit Equivalent
91
1” Meter
1.5”
Displacement
Meter
SUE = 1.5” Meter Capacity
1” Meter Capacity = 2
WATER AND WASTEWATER IMPACT FEE CALCULATIONS
92
•Current Impact Fee = $6,643 (adopted max allowable)
•2025 Maximum Allowable Impact Fee = $14,390
Water Wastewater
10-Year Capital Improvement Costs $102,611,265 $144,769,681
Financing Cost $34,131,730 $48,154,943
Total Eligible Costs $136,742,995 $192,924,624
10-year Projected Growth in
Service Units 11,454 11,454
Maximum Impact Fee per Service
Unit without Credit $11,938 $16,843
Impact Fee Credit per Service Unit $5,969 $8,421
Maximum Allowable Impact Fee
per Service Unit with Credit $5,969 $8,421
Current Impact Fee $3,821 $2,822
PRESENTATION OVERVIEW
Impact Fee Process & Land Use Assumptions
W/WW Impact Fee Analysis
Roadway Impact Fee Analysis
93
Comparison with Other Cities4
5 CIAC Involvement and Recommendation
ROADWAY IMPACT FEE CAPITAL IMPROVEMENTS PLAN (IFCIP)
•Based on official
plan of Town
•2022
Thoroughfare
Plan
•All Arterial or
Collectors
streets
•Enables system
flexibility
•State facilities
eligible (Town
costs only)
94
PROJECTED SERVICE UNITS
Service
Area
Residential
Growth
(veh-mi)
Basic Emp.
Growth
(veh-mi)
Service Emp.
Growth
(veh-mi)
Retail Emp.
Growth
(veh-mi)
Total
Growth
(veh-mi)
1 37,043 3,701 34,150 4,253 79,146
2 15,602 1,911 18,567 2,077 38,157
Total 52,644 5,612 52,717 6,329 117,302
95
•Roadway: 10-year VMT
•Land Use Assumptions
Projected Ten-Year Growth
PROPOSED ROADWAY IFCIP
Service
Area Project Cost
1 $234,240,608
2 $122,944,632
Total $357,185,239
ROADWAY IMPACT FEE CALCULATIONS
97
Service Area 1 Service Area 2
Net Capacity Supplied by CIP (vehicle miles)59,716 33,060
Total Project Cost of CIP $234,240,608 $122,944,632
Cost of Net Capacity Supplied $183,483,058 $95,794,114
Projected 10-year Demand (vehicle miles)79,146 38,157
Percent of CIP Attributable to New Dev.100%100%
Cost of CIP and Financing Attributable to New
Development $213,316,102 $106,644,971
Pre-Credit Maximum Fee per Service Unit
($ per vehicle-mile)$2,668 $2,794
Maximum Assessable Fee per Service Unit (50%)
($ per vehicle-mile)$1,347 $1,397
COST PER SERVICE UNIT COMPARISON
*Current Collection Rate discounts specific land uses including,
•Land uses discounted to 25% of max
•Hotels
•Day Care
•All Office uses
•Non-Fast Food Restaurant
•Discount Store
•Land uses discounted to 40% of max
•Single Family Residential
** Collection rate replaced with 2016 rates.
•Home Improvement Superstore
•Shopping Center
•Supermarket
•Toy Superstore
•Department Store
98
Service
Area
2011 2016 2025
Credited
Cost / SU
Collection
Rate
Credited
Cost / SU
Collection
Rate
Credited
Cost / SU
Collection
Rate
1 $856 $856**$1,258 $1,258*$1,347 ??
2 $615 $615**$940 $940*$1,397 ??
ROADWAY COST PER SERVICE UNIT COMPARISON
PRESENTATION OVERVIEW
Impact Fee Process & Land Use Assumptions
W/WW Impact Fee Analysis
Roadway Impact Fee Analysis
99
Comparison with Other Cities4
5 CIAC Involvement and Recommendation
SINGLE FAMILY BENCHMARKING
100
Prosper 2017
Prosper 2025
Roadway: 1 Dwelling Unit
Water Meters: 1" Service
Wastewater Meters: 1" Service
RESTAURANT DRIVE-THRU BENCHMARKING
101
Prosper 2017Prosper 2025
GROCERY STORE BENCHMARKING
102
Prosper 2025 Prosper 2017
Roadway: 132,000 SF
Water Meters: 2" Service + 1" Service +
(2) 1.5" Irrigation
Wastewater Meters: 2" Service + 1" Service
SIT-DOWN RESTAURANT BENCHMARKING
103
Roadway: 8,000 SF
Water Meters: 2" Service +
1.5" Irrigation
Wastewater Meters: 2" Service
Prosper 2025 Prosper 2017
MEDICAL OFFICE BENCHMARKING
104
PRESENTATION OVERVIEW
Impact Fee Process & Land Use Assumptions
W/WW Impact Fee Analysis
Roadway Impact Fee Analysis
105
Comparison with Other Cities4
5 CIAC Involvement and Recommendation
CIAC INVOLVEMENT
106
•Advisory Committee Members
•Planning and Zoning Commission
•ETJ Resident
•Met with Consultants and Town
Staff in April 2024, October
2024, and June 2025 to discuss
Land Use Assumptions, Capital
Improvement Plans and Impact
Fee Calculations
Capital
Improvements
Advisory
Committee
Town Staff &
Consultant
Town
Council
CIAC RECOMMENDATION
107
•June 30th, by a unanimous vote, the CIAC made the
following actions:
•Accepted the land use assumptions, capital improvements plan, and
impact fee calculations as outlined in the draft impact fee study
•Recommended the Town Council set the water, wastewater, and
roadway impact fees at the maximum allowable fee per the impact fee
study
QUESTIONS &
DISCUSSION
CONTACT INFORMATION:
Eddie Haas, AICP| eh@freese.com | 214.217.2321 108
Agenda Item 19.
Conduct a Public Hearing and consider and act upon a request to
rezone 18.7± acres from Planned Development-14 (Retail) to
Planned Development-Retail on Netherly Survey, Abstract 962,
Tract 7, located on the northwest corner of Legacy Drive and First
Street. (ZONE-25-0004) (DH)
Planned Development
First Legacy Shopping Center
(ZONE-25-0004)
Agenda Item
Conduct a Public Hearing and consider and act upon a request to rezone 18.7± acres
from Planned Development-14 (Retail) to Planned Development-Retail on Netherly
Survey, Abstract 962, Tract 7, located on the northwest corner of Legacy Drive and First
Street. (ZONE-25-0004)
Proposal
Purpose:
•Construct a convenience store with gas pumps and other commercial buildings on an intersection of a
major and minor thoroughfare.
Background:
•Planned Development-14 allows for convenience stores with gas pumps by right.
•The Town’s Zoning Ordinance requires convenience stores with gas pumps to be located on the
intersection of major thoroughfares.
•Per the Master Thoroughfare Plan, First Street is considered a minor thoroughfare.
•Proposal would allow for a convenience store on the intersection of Legacy Drive and First Street.
Future Land Use Plan
Retail & Neighborhood Services:
•Recommends retail establishments that provide merchandise for retail sales, banks, neighborhood
offices, and small medical offices.
Zoning
Zoning Current Land Use Future Land Use Plan
Subject
Property
Planned Development-14
(Retail)Vacant Retail & Neighborhood
Services
North Planned Development-66
(Single Family-10)
Single-Family Residential
(Star Trail)High Density Residential
East Planned Development-66
(Single Family-10)
Single-Family Residential
(Star Trail)
Medium Density
Residential
South Planned Development-65
(Single-Family)Vacant Parks
West Planned Development-66
(Single Family-10)
Single-Family Residential
(Star Trail)
Medium Density
Residential
District Regulations
Previous Regulations
(Planned Development-14)
Proposed Regulations
(Development Standards)
Size of Yards Front:
25’
Side:
0’
12’ (Vehicular Access Req.)
24’ (Fire Lane Access Req.)
50’ (Adj. to Residential)
Rear:
0’
12’ (Vehicular Access Req.)
24’ (Fire Lane Access Req.)
50’ (Adj. to Residential)
Front:
30’
Side:
15’
30’ (One-Story Adj. to Res.)
60’ (Two-Story Adj. to Res.)
Rear:
15’
30’ (One-Story Adj. to Res.)
60’ (Two-Story Adj. to Res.)
Size of Lots Minimum Area:
10,000 SF
Minimum Lot Width:
50’
Minimum Lot Depth:
90’
Minimum Area:
10,000 SF
Minimum Lot Width:
50’
Minimum Lot Depth:
100’
Maximum Height Stories:
Two Stories or 40’
Stories:
Two Stories or 40’
Maximum Lot Coverage Lot Coverage:
40 Percent
Lot Coverage:
40 Percent
Floor Area Ratio Maximum:
0.4:1
Ratio:
0.4:1
Permitted Uses
By Right:
•Administrative/Medical and Professional Office
•Antique Shop and Used Furniture
•Art and Music Studio
•Artisan’s Workshop
•Bank/Savings and Loan/Credit Union
•Beauty Salon/Barber Shop
•Commercial Amusement, Indoor
•Diagnostic Lab or Urgent Care Center
•Dry Cleaning, Minor
Permitted Uses Cont.
By Right:
•Fraternal Organization/Lodge/Civic Club/Fraternity or Sorority
•Full-Service Hotel C
•Furniture Store
•Gymnastics/Dance Studio
•Health/Fitness Center
•Home Furnishings and Appliance Store
•House of Worship
•Nursery, Minor
•Pet Day Care C
•Print Shop, Minor
Permitted Uses Cont.
By Right:
•Public School
•Restaurant C
•Retail Stores and Shops
•Swim School
•Tanning Salon
•Veterinarian Clinic and/or Kennel, Indoor
•Wine Bar
Permitted Uses Cont.
By Specific Use Permit:
•Child Care Center, Licensed
•Convenience Store w/ Gas Pumps (On Intersecting Major and Minor Thoroughfares)
•Farmer’s Market
(Changed from a use by right to a specific use permit per the Planning & Zoning Commission’s motion)
•Meeting/Banquet/Reception Facility
•Private or Parochial School
•Restaurant, Drive-In
•Restaurant, Drive Through
Uses That Would Be Eliminated
•Accessory Buildings
•Assisted Living Facilities
•Auto Laundries/Car Wash Facilities (Incidental to Primary Business Use)
•Auto Parts Sales – No Outdoor Storage/Display
•Automobile Parking Lots and Parking Garages
•Automobile Repairs – Excluding Paint and Body Work
•Bed and Breakfast
•Civic Convention Center
•Concrete Batching Plants (Temporary and Incidental to On-Site Construction)
•Construction and Field Offices (Temporary)
Uses That Would Be Eliminated Cont.
•Convalescence Homes
•Dinner Theatres
•Equipment and Machinery Sales and Rental, Minor
•Frozen Food Lockers (Incidental to Primary Business Use)
•Golf Course and/or Country Club
•Governmental and Utility Agencies, Offices, Facilities and Service Yards
•Guard and Patrol Services
•Homebuilder
•Hospital
•Independent Living Facilities
Uses That Would Be Eliminated Cont.
•Indoor Storage Facilities
•Marketing Center
•Mass Commuter/Transit Stations
•Meat Markets (No Slaughterhouses or Packing Plants)
•Municipal Buildings and Facilities
•Museums, Libraries, Art Schools and Art Galleries
•Nursing Homes
•Parks, Playgrounds, Recreational Facilities and Community Centers
•Post Office Facilities
•Private Club Facilities
Uses That Would Be Eliminated Cont.
•Radio and Television Microwave Antennae/Towers (Incidental to Primary Use)
•Radio and Television Studios and Broadcasting Facilities
•Recycling Collection Centers
•Single Family Residential
•Small Engine Repairs (Under Roof and Enclosed)
•Telephone Exchange
•Temporary Buildings (Incidental to Primary Business Use)
•Theaters – Indoors
•Theatrical Centers
•Tire Dealers (No Outdoor Storage)
Uses That Would Be Eliminated Cont.
•Tool and Equipment Rental Stores (No Outdoor Storage Unless Screened)
•Utility Distribution Systems and Facilities
•Warehousing Facilities (Incidental to Primary Business Use)
•Water Treatment Facilities
Architectural Standards
Building Materials:
•Clay Fired Brick
•Granite
•Marble
•Stone (Natural, Precast, or Manufactured)
•Stucco (Three-Coat)
•Non-Masonry Materials (Max. of 20%)
•Other Materials as Approved by Director of Development Services
Landscaping
Previous Regulations
(Planned Development-14)
Proposed Regulations
(Development Standards)
Adjacent to Thoroughfares Easement:
30’ (Legacy Drive)
25’ (First Street)
Plantings:
One large tree, three-inch caliper minimum, every
30 linear feet.
Fifteen shrubs, five-gallon minimum, every 30
linear feet.
Easement:
30’ (Legacy Drive)
25’ (First Street)
Plantings:
One large tree, three-inch caliper minimum, every
30 linear feet.
Fifteen shrubs, five-gallon minimum, every 30
linear feet.
Adjacent to Commercial Development Buffer:
5’
Plantings:
One small tree every 15 linear feet.
One shrub, five-gallon minimum, every 15 linear
feet.
Buffer:
5’
Plantings:
One small tree every 15 linear feet.
One shrub, five-gallon minimum, every 15 linear
feet.
Adjacent to Residential Development Buffer:
15’
Plantings:
One large tree, three-inch caliper minimum, every
30 linear feet.
Buffer:
15’
Plantings:
One large tree, three-inch caliper minimum, every
30 linear feet.
Screening
Residential Adjacency:
•Six-foot (6’) masonry wall required adjacent to residential development.
Noticing
Notices:
•Friday, July 25th
Citizen Response:
•None
Staff Recommendation
Recommendation:
•Approval
•Elimination of many undesirable uses by right.
•Requirement of some uses previously allowed by right to be by Specific Use Permit.
•Development Agreement that ensures building materials.
P&Z Recommendation
Motion:
•Approval (7-0) subject to the following conditions:
•“Farmer’s Market” use permitted by Specific Use Permit rather than by right.
•A minimum of ten percent (10%) of the entire development to be usable open space.
•A minimum of three of the five listed amenities to be provided in the development.
•Gazebos or Pergolas
•Public Art Installations
•Seating Areas with Shade Structures
•Stone Terracing and Low Masonry Seating Walls
•Water Features (Fountains or Naturalized Stream Banks)
Applicant Request
Amend the recommendations made by the Planning & Zoning Commission regarding the following items:
•Recommendation: A minimum of ten percent (10%) of the entire development to be usable open
space.
•Request: Each individual lot to have a minimum of seven to ten percent (7% – 10%) of open
space.
•Recommendation: A minimum of three of the five listed amenities to be provided in the
development.
•Request: Each individual lot to provide one of the listed amenities.
Agenda Item 20.
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 evaluation of the Town Manager, and all matters incident and related thereto.
Section 551.071 - To consult with the Town Attorney regarding legal matters associated with Town liability issues, and all matters incident and related thereto.
Section 551.071 – Consultation with the Town Attorney regarding legal matters associated with any Work Session or Council Meeting agenda item.
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, and the Downtown Advisory 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.