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09.16.25 Town Council Meeting PresentationWelcome to the September 16, 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 Presentations. Agenda Item 1. Proclamation declaring September 17-23, 2025, as Constitution Week. (MLS) Presentations. Agenda Item 2. Recognize members of the Prosper Police Department for recent life-saving awards. (DK) Consent Agenda Agenda Item 3. Consider and act upon the minutes of the August 19, 2025, Town Council Special meeting. (MLS) Agenda Item 4. Consider and act upon the minutes of the August 26, 2025, Town Council Work Session meeting. (MLS) Agenda Item 5. Consider and act upon the minutes of the August 26, 2025, Town Council Regular meeting. (MLS) Agenda Item 6. Consider and act upon a Resolution designating The Frisco Enterprise as the official newspaper of the Town of Prosper and The Dallas Morning News as an alternative advertising source for FY 2025-2026. (MLS) Agenda Item 7. Consider and act upon an Ordinance amending Division 2, “Library Board,” of Article 1.04, "Boards, Commissions, and Committees” within Chapter 1 of the Town’s Code of Ordinances by amending Section 1.04.032, "Number of Members." (MLS) Agenda Item 8. Consider and act upon an Ordinance repealing Section 4.02.031, “Permit Required; Fee,” of Division 2, “Permits and Licenses,” of Article 4.02, “Alcoholic Beverages,” of Chapter 4, “Business Regulations,” of the Town’s Code of Ordinances. (MLS) Agenda Item 9. Consider and act upon adopting the FY 2025-2026 Prosper Economic Development Corporation Budget. (SB) Agenda Item 10. Consider and act upon awarding RFP No. 2025-16-A for ASO Medical, Pharmacy Benefits Manager, and Insurance Benefits to Lincoln for Life/AD&D coverage, Symetra Life for Short-Term & Long-Term Disability, UMR/OptumRx for Medical/Pharmacy and authorizing the Town Manager to execute all documents for the same. (TL) Medical & Benefits RFP Quoted Services •Medical & PBM •Basic Life •Voluntary Life/ AD&D •Short-term Disability (STD) •Long-term Disability (LTD) Medical & Benefits RFP Proposing Vendors Medical Pharmacy UMR*X X Atena X X BCBSTX X X Cigna X X TXHB X X ProAct X X Services Quoted * Incumbent Proposing Vendors Life STD LTD Mutual of Omaha*X X X Lincoln X X X New York Life X X X Ochs X X X Prudential X X X Symetra X X X The Hartford X X X Services Quoted RFP Recommendations Award •Medical & PBM – UMR W/ OptumRx •Basic & Voluntary/AD&D – Lincoln •STD & LTD - Symetra Future Considerations •Stop Loss RFP •Stop Loss Increases •Fund Balance Agenda Item 11. Consider and act upon authorizing the Town Manager to enter into an agreement with DynaTen Comfort Systems for the replacement of one rooftop air conditioning unit at Town Hall in the amount of $61,933. (CE) Agenda Item 12. Consider and act upon authorizing the Town Manager to enter into an agreement with WOPAC Construction, Inc., to install an underground drainage system in the north parking lot of Town Hall in the amount of $237,358.44. (CE) Agenda Item 13. Consider and act upon the approval of a Purchase Order for vehicle equipment and installation in six (6) 2025 Chevrolet Tahoe’s (FY25 VERF Replacement) from DANA Safety Supply, Inc. utilizing BuyBoard Contract #698-23 in the amount of $153,887. (DK) Agenda Item 14. Consider and act upon a request for a Waiver for Lot Frontage on Teel 380 Addition, Block A, Lot 7, located on the northwest corner of Teel Parkway and University Drive (US 380). (WAIV-25-0004) (DH) Teel 380 Addition, Block A, Lot 7 (WAIV-25-0004) Information Purpose: •Allow Lot 7 to have frontage onto a fire lane, access, utility, and drainage easement (F.A.U.D.E) instead of public right-of-way. History: •Approved Preliminary Site Plan (D22-0021) showed 13 lots with four not having frontage onto public right-of-way. •Approved Conveyance Plat (D22-0070) showed nine lots with one lot (Lot 7) not have frontage onto public right-of-way. Information Subdivision Ordinance: •Per Article 10.03, Section 137 (§ 10.03.137) of the Subdivision Ordinance, a waiver may be approved for lots in nonresidential developments that can not achieve access to a public street provided there is adequate access through public access easements from a public street. Criterion: •The following criterion should be considered when evaluating a waiver request. •The nature of the proposed land use involved and existing uses of the land in the vicinity. •The number of persons who will reside or work in the proposed development. •The effect such subdivision waiver might have upon traffic conditions and upon the public health, safety, convenience, and welfare in the vicinity. Findings: •The following findings should be presented when proposing a waiver request. •There are special circumstances or conditions affecting the land involved or other physical conditions of the property such that the strict application of the provisions of this subdivision ordinance would deprive the applicant of the reasonable use of his or her land. •That the subdivision waiver is necessary for the preservation and enjoyment of a substantial property right of the applicant, and that the granting of the subdivision waiver will not be detrimental to the public health, safety or welfare or injurious to other property in the area. •That the granting of the subdivision waiver will not have the effect of preventing the orderly subdivision of other lands in the area in accordance with the provisions of this subdivision ordinance. Information Finding One: •There are special circumstances or conditions affecting the land involved or other physical conditions of the property such that the strict application of the provisions of this subdivision ordinance would deprive the applicant of the reasonable use of his or her land. •Lot 7 was approved on the Preliminary Site Plan without lot frontage. •Subsequently, both the Site Plan and Final Plat were approved without lot frontage. •The property is currently under construction. •Adequate fire lane access is provided to the site. Information Finding Two: •That the subdivision waiver is necessary for the preservation and enjoyment of a substantial property right of the applicant, and that the granting of the subdivision waiver will not be detrimental to the public health, safety or welfare or injurious to other property in the area. •The property would be able to be final platted in the configuration that was approved prior to construction. Information Finding Three: •That the granting of the subdivision waiver will not have the effect of preventing the orderly subdivision of other lands in the area in accordance with the provisions of this subdivision ordinance. •This lot is centered in the development and will not affect the orderly subdivision of other lands. Recommendation: •Town Staff recommends approval of the lot frontage waiver. •The Planning & Zoning Commission unanimously recommended approval of this item by a vote of 6-0 (Chair Daniel absent) at their meeting on September 2, 2025. Agenda Item 15. [TABLE TO OCTOBER 14] Conduct a Public Hearing and consider and act upon a request to rezone 373.5± acres from Agricultural to a Planned Development allowing for both Single- Family and Age-Restricted Single-Family Residences, located on the south side of Parvin Road and 2,070± feet east of FM 1385. (ZONE-24-0022) (DH) The applicant has requested this item to be tabled. Agenda Item 16. [TABLE TO OCTOBER 14] Conduct a Public Hearing and consider and act upon a request to amend the Future Land Use Plan from Medium Density Residential to High Density Residential, on 191.7± acres, located on the south side of Parvin Road and 2,070± feet east of FM 1385. (COMP-24-0002) (DH) The applicant has requested this item to be tabled. Agenda Item 17. 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) Hunter Gateway Centre, Block A, Lot 9 (DEVAPP-24-0170) Information Purpose: •A site plan to construct a one-story indoor commercial amusement building with a mezzanine totaling 40,738 square feet and associated parking. HCA Medical City Addition, Block A, Lot 1 (DEVAPP-25-0024) Information Purpose: •Construct two medical office buildings, one free-standing emergency room, and one hospital totaling 573,000 square feet. •Free-Standing Emergency Room (11,000 SF) •Hospital (442,300 SF) •Medical Office (30,000 SF) •Medical Office (30,000 SF) Information Phasing: •Preliminary Site Plan will be constructed in two phases. •Phase One: Free-Standing Emergency Room •Phase Two: Hospital & Medical Offices Windsong Ranch Marketplace, Block A, Lot 14 (DEVAPP-24-0146) Purpose: •Modify an existing 4,998 square foot drive-through restaurant and associated parking. •Widen Drive-Through Entrance •Widen Drive-Through Lanes on Interior Side (Additional Maneuvering Room for Employees) •No Impact on Existing Landscape Buffer •Reconfigure Southern Drive Aisle (Easier Turn for Exiting Vehicles & Adequate Turning Radius) •Remove Southern Row of Parking (Along University Drive) •Add Three Parking Spaces (Southeast Corner) Frontier Retail Center Revised, Block A, Lot 1 (DEVAPP-25-0051) Information Purpose: •Construct a 5,385 square foot drive-through restaurant with a 459 square foot patio and associated parking. History: •A Specific Use Permit (S-51) for a drive-through restaurant was approved by Town Council on April 22, 2025. Landscaping: •Enhanced landscaping provided along Dallas Parkway as approved in the Specific Use Permit (S-51). 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 18. Consider and act upon an Ordinance amending Water and Wastewater Rates. (CL) 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 Proposed Rate Increase Rate Comparison Agenda Item 19. Consider and act upon an Ordinance amending Appendix A, "Fee Schedule," of the Town's Code of Ordinances. (CL) FY 2025 – 2026 Fee Schedule Adjustment Departments Updating Fees •Development Services •Parks and Recreation •Engineering Development Services - Planning The last update to the development fees was in September of 2015. The project types include plats, site plans, and zoning cases, among others. A comparison was done between Prosper's fees and several surrounding municipalities, and an evaluation of staff time spent on these cases was made.Based on this information, it is proposed to modify almost all fees, as well as add new project fees for open space and landscape plans. Development Services – Health and Code This proposed update evaluates and justifies issues with the current fee schedule including: • Better aligning fees with comparison cities • Reflects time to conduct inspections annually • Increases existing fees only to the extent necessary to offset actual costs Development Services – Building Inspections Residential Permit Fees: •Changing from a $300 non-refundable deposit to a $300 application fee for new homes •Moving from a tiered fee structure to a flat rate of $1 per square foot for all new homes. •Increasing fence permits, foundation repair permits, single-trade MEP permits, and irrigation permits to $100 each Development Services – Building Inspections Commercial Permit Fees: •Changing from a $300 non-refundable deposit to a $300 application fee for commercial shells, stand-alone projects, and finish outs •Moving from a tiered fee structure to a flat rate of $6.25 per $1,00 of project valuation for all non-multifamily projects •Increase in multifamily permits from $5 per $1,000 of project valuation to $9.375 per $1,000 of project valuation Parks and Recreation Park Development Fees Parkland Dedication Fees: •Current – 1 ac. / 35 units or 5% of total acreage (whichever is larger) •Propose – 1 ac. / 30 units or 5% of total acreage (whichever is larger) •The Town has the option to take the land or a cash equivalent of the land value Park Improvement Fees: •Current - $1500 / single family unit, $2000 / multi family unit •Proposed - $2000 / single family unit, $3000 / multi family unit Parks and Recreation Recreation Fees Pavilion Reservation Fees: •Decrease non-resident flat price from $500 / 4 hrs to the following: •$100 / 4 hrs (1-100 people); $200 / 4 hrs (101 – 200 people) •We have not had any reservations at the $500 level. •By making the rate more reasonable, we should be able to capture more non-resident reservations at the higher rate. Parks and Recreation Synthethic Turf Field Reservation Fees: •Currently residents and non-residents can reserve the synthetic turf fields at Frontier MP1 and MP2 locations for $70/hr. •Leave resident rate at $70/hr. •Increase non-resident rate from $70/hr to $125/hr. •Grass Field Reservation Fees: •Currently residents reserve grass fields at $35/hr and non-residents reserve grass fields at $45/hr. •Increase non-resident rate from $45/hr to $70/hr. Parks and Recreation Tournament Reservation Fees: •Currently the Town charges $50 per team for up to two days and $30 per team for each additional day. There is also a $100 deposit per field that is due at the time of booking. Minimum fees for a tournament is $1,000. •Tournament organizers typically charge a gate / entrance fee. •Staff propose to keep the current fees the same with the addition of the Town receiving 10% of the tournament gate fee. INSPECTION FEE CURRENT RATE PROPOSED RATE Single Family Residential $1,000 base fee plus $600 per platted lot $2,000 base fee plus $1,000 per platted lot Non-Residential Development $1,000 base fee plus $1,500 per final platted acreage $2,000 base fee plus $2,000 per final platted acreage Non-Residential Infrastructure $1,000 base fee plus $1,200 per conveyance platted ac $2,000 base fee plus $2,000 per conveyance platted ac Multi-Family Development $2,000 base fee plus $2,500 per final platted acreage Linear Utility Infrastructure $1,000 base fee** plus Wastewater — $3.00/LF; Water — $3.00/LF; Storm Sewer — $4.00/LF $2,000 base fee** plus Wastewater — $5.00/LF; Water — $5.00/LF; Storm Sewer — $5.00/LF Development Road $1,000 base fee plus $3.00 per SY of concrete surface $2,000 base fee plus $5.00 per SY of concrete surface Turn Lanes and Median Openings $1,000 base fee plus $3.00 per SY of concrete surface $2,000 base fee plus $5.00 per SY of concrete surface Creek Stabilization $1,000 base fee plus $0.50 per SY of disturbed area $2,000 base fee plus $0.50 per SY of disturbed area Saturday and After Hours $150 per day $500 per day PLAN REVIEW FEE CURRENT RATE PROPOSED RATE Residential Development $500 base fee plus $25 per platted lot $1,500 base fee plus $50 per platted lot Non-Residential Development $500 base fee plus $200 per acre $1,500 base fee plus $300 per acre Multi-Family Development $1,500 base fee plus $50 per unit After 3rd Submittal (4th or more)$0 $1,000 each resubmittal Engineering Services Single Family Residential Development Non-Residential: Large Commercial Non-Residential: Medium Commercial Non-Residential: Small Commercial Multi-Family Development Engineering Land Disturbance Without Development: •Increase tracts one acre or less from $50 to $100 •Increase tracts greater than one acre from $200 to $100 base fee plus $25 per acre •Increase floodplain reclamation only from $500 to $500 base fee plus $25 per acre With Development: •Flat fee of $200 for all development instead of $50 per single family residential lot and no fee for non-residential Engineering Floodplain Study Review •Increase from $3,000 deposit and $150 nonrefundable administrative fee to $3,500 deposit and $250 nonrefundable administrative fee Stormwater •Add new fees: •Re-inspection: $100 per re-inspection •Notice of Violation: $150 •Lot Hold: $150 •Stop Work Order: $150 Agenda Item 20. Conduct a Public Hearing to receive public input, consider such input, and consider and act upon an Ordinance adopting the Fiscal Year (FY) 2025-2026 Annual Operating and Capital Project Funds budgets and five-year Capital Improvement Program for the fiscal year beginning October 1, 2025, and ending September 30, 2026. (CL) Town of Prosper Annual Budget 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 Continuous Improvement •Operational Review Team - dedicated to evaluating organizational processes, identifying opportunities for improvement, and ensuring that operations align with strategic vision. By conducting thorough assessments, analyzing performance data, and engaging with staff across departments, the team provides actionable recommendations that enhance efficiency, strengthen accountability, and support long-term success. •Consolidated Fleet Function - centralizes the management, maintenance, and oversight of all non-public safety vehicles and equipment across the organization. By bringing these resources under one coordinated function, the team improves efficiency, reduces costs, and ensures consistent standards for safety, reliability, and service delivery. •Risk Management - focuses on identifying, assessing, and mitigating potential risks that could impact operations, assets, or personnel. Working with a consultant, the team is setting up programs that will strengthen safety practices, reduce exposures, ensure compliance, and build long-term resilience across the organization. Sensitivity Analysis Elastic revenue sources are those that grow (or shrink) in response to changes in the economy, population, or community activity. These revenues expand when the economy grows and contracts during downturns. •Sales Tax (19.8%) •Highly sensitive to local retail, economic factors, and consumer spending •Franchise Fees (7%) •Tied to consumption patterns impacted by rates and weather •Development Related Fees (11.9%) •Tied to construction and growth cycles •Court Fines & Fees (< 1%) •Influenced by law enforcement activities and ability to pay fines Mitigation Strategies •Pause on hiring vacant positions •Limit non-essential overtime •Delay new position start dates •Reduced Vehicle/Equipment Replacement Fund (VERF) contributions •Travel and training reduction or elimination •Pause or scale back professional services not immediately required •Defer non-essential maintenance •Discretionary spending freeze •Reduce service hours •Delay capital purchases/replacement purchases •Cancel or reduce the scope of community events Budget in Brief Total FY 2025-2026 Proposed Budget Operating Appropriations $124,647,464 including: •$68,209,022 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 $21,165,328. Governmental Capital Projects added for the year total $39.4 million. Key General Fund Revenue Drivers For FY 2025-2026, General Fund revenues are expected to total $68,240,564 which is an increase of 32.8% 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 Proposed 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 2/1/2026 1 55,687 970 - 84,859 Police Crime Analyst 2/1/2026 1 71,775 4,162 111,289 109,766 Police Auto Theft Prevention Coordinator 2/1/2026 1 112,078 73,716 239,733 170,628 Police Police Officers 2/1/2026 4 423,213 388,584 - 667,304 Fire Firefighter/Paramedic 2/1/2026 9 955,833 87,406 -1,461,156 Public Works Traffic Signal Technician 2/1/2026 1 66,590 3,635 - 102,486 Parks Irrigation Technician 2/1/2026 1 50,520 73,000 - 76,740 Parks Chemical Technician 2/1/2026 1 49,159 23,000 - 75,064 Library Circulation Supervisor 2/1/2026 1 50,282 3,230 - 76,142 Total General Fund 20 1,835,137 657,703 351,022 2,824,145 *An adjustment was made from the proposed budget to fund positions for a February start date. 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 •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 care plan is to Council for consideration. Currently out to bid for stop loss. 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 in new and refunding •$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 •$39.4 million Total in Projects •$26 million in Streets Projects •$7.1 million in Parks Projects •$6.3 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 $800,000 •Unprogrammed $707,938 Streets/Traffic •Various Traffic Signals & Improvements $2,090,000 •First St./Whitley Place Open Space $250,000 Parks •Raymond & Lakewood Park Security Cameras $250,000 •Dream Park $300,000 •Downtown Monumentation – Broadway & Main $255,000 •Richland Median Improvements $150,000 TOTAL $10,500,000 Facilities •Facility Improvement Projects $300,000 •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 2025-2026 Tax Rates Entity Homestead Exemption Rate General Fund Capital Dedicated I&S Total Tax Rate Equivalent Tax Rate for Homestead Freeze Anna 5.00%0.356071 -0.169002 0.525073 0.498819 No Celina None 0.264928 -0.311473 0.576401 0.576401 Yes Coppell 5.00%0.376998 -0.067978 0.444976 0.422727 No Flower Mound 20.00%0.323876 -0.063402 0.387278 0.309822 No Frisco 20.00%0.292775 -0.132742 0.425517 0.340414 Yes Keller 20.00%0.245020 -0.041980 0.287000 0.229600 Yes Little Elm None 0.446653 -0.103247 0.549900 0.549900 Yes McKinney None 0.276012 -0.136272 0.412284 0.412284 No Southlake 20%0.24000 -0.055000 0.295000 0.236000 Yes Average of Comparison 10.00%0.313593 -0.120122 0.433714 0.397330 - 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 62% Town of Prosper 26% Collin County 8% Collin College 4% Prosper ISD 64% Town of Prosper 26% Denton County 10% FY2025-2026 Total Tax Rate Entity FY2025-2026 Proposed Tax Rate Prosper ISD 1.2141 Town of Prosper 0.505 Collin County 0.149343 Collin College 0.08122 TOTAL 1.949663 Entity FY2025-2026 Proposed Tax Rate Prosper ISD 1.2141 Town of Prosper 0.505 Denton County 0.185938 TOTAL 1.905038 Entity FY2025-2026 Proposed Tax Rate Denton ISD 1.1174 Town of Prosper 0.505 Denton County 0.185938 TOTAL 1.808338 Denton ISD 63% Town of Prosper 27% Denton County 10% Local Sales Tax (2¢) Year General Fund (1¢) TIRZ Funds Crime SPD (0.25 ¢) Fire SPD (0.25 ¢) Prosper EDC(0.5¢) 2020 5,852,590 510,086 1,616,291 1,613,198 3,181,338 2021 8,212,231 656,516 2,192,022 2,183,482 4,434,373 2022 9,464,641 854,284 2,548,594 2,545,621 5,159,463 2023 10,160,615 916,361 2,745,763 2,748,026 5,538,488 2024 11,053,794 1,226,439 3,018,090 3,015,318 6,140,116 2025R 12,099,065 1,295,986 3,203,844 3,236,018 6,697,526 2026P 12,983,112 1,388,965 3,426,536 3,460,319 7,186,039 Year General Fund (1¢) General Fund Sales Tax Growth 2020 5,852,590 12.0% 2021 8,212,231 40.3% 2022 9,464,641 15.3% 2023 10,160,615 7.4% 2024 11,053,794 8.8% 2025R 12,099,065 9.5% 2026P 12,983,112 7.3% General Fund Sales Tax 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 21. Conduct a Public Hearing to consider and act upon an Ordinance adopting a tax rate of $0.505 per $100 valuation for fiscal year 2025-2026. (CL) Agenda Item 22. Ratifying the property tax increase in the budget for fiscal year (FY) 2025-2026. (CL) Agenda Item 23. Consider and act upon a Resolution of the Town Council of the Town of Prosper, Texas, declaring the necessity to acquire certain properties for right-of-way and easements for the construction of the Legacy Drive (Prosper Trail – Parvin Road) 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 24. 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 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, and the Downtown Advisory Committee, and all matters incident and related thereto. Section 551.071 - Consultation with the Town Attorney to discuss legal issues associated with any Work Session or Council Meeting agenda item. 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.