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08.11.26 Town Council Meeting PresentationWelcome to the August 11, 2026, 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 the month of August 2026 as Gun Safety Awareness Month. (MLS) Agenda Item 2. Recognize Prosper High School student, Zoe Zogleman. (MLS) Consent Agenda Agenda Item 3. Consider and act upon the minutes from the July 28, 2026, Town Council Regular meeting. (MLS) Agenda Item 4. Receive the Quarterly Investment Report for the Third Quarter. (CL) Agenda Item 5. Consider and act upon authorizing the Town Manager to execute a Construction Agreement with American Landscape Systems for the Mahard Parkway Medians in the amount of $482,505.50. (DA) •8 Qualifying Bid Responses •American Landscape Systems was the low bid and scored the highest in total evaluation criteria •Includes improvement to all four medians between US380 and Prairie Dr. Agenda Item 6. Consider and act upon approving the purchase of water meters from Core & Main in the amount of $119 ,828; and authorize the Town Manager to execute the same. (CJ) Agenda Item 7. Consider and act upon a request for the utilization of two existing temporary buildings for church administration purposes through August of 2028 at St. Martin de Porres, Block A, Lot 2R, on 39.8± acres, located 315± feet north of University Drive and 870± feet west of Teel Parkway. (DH) 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 8. Discuss and consider submission of the Preliminary Fiscal Year 2026- 2027 Budget. (CL) Town of Prosper Annual Budget STRATEGIC VISIONING PRIORITIES •Provide Excellent Municipal Services •Accelerate Infrastructure Delivery •Develop Downtown Prosper as a Destination •Ensure the Town’s Commercial Corridors are Ready for Development •Grow and Diversify the Tax Base Budget Timeline February 13, 2026 Finance Sub-committee meets on Initial Projects February 24, 2026 Multi-Year Budget Projections to Full Council April 28, 2026 Budget Workshop at Council Work Session July 2, 2026 Finance Sub-committee meets on Capital Project Prioritization, Debt Issuance, Market Adjustments and other items to direct Budget balancing July 24, 2026 Certified Tax Rolls provided by Central Appraisal Districts Budget Timeline August 3, 2026 Finance Sub-committee Budget preview and Tax Rate direction; Utility Rate direction August 11, 2026 Presentation of Preliminary Budget, Passage of all items needed to begin Budget Adoption Process. Before August 21, 2026 Sub-Committee Meetings per Council Direction September 3, 2026 Budget Town Hall Meeting September 8, 2026 Budget Public Hearing, Final Changes (if any) and Adoption; Tax Rate Public Hearing and Adoption; Tax Increase Ratification Budget in Brief Total FY 2026-2027 Preliminary Budget Operating Appropriations $139,179,150 including: •$72,292,656 for General Fund operations and maintenance, •$3,775,144 for the Crime Control and Prevention Special Purpose District, •$3,745,070 for the Fire Control, and Emergency Medical Services Special Purpose District, •$59,366,280 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 $21,373,297. Governmental Capital Projects added for the year total $70.7 million. Key General Fund Revenue Drivers For FY 2026-2027, General Fund revenues are expected to total $72,186,612 which is an increase of 5.8% over the previous year’s original budget. This increase in additional revenue is driven mostly from new construction property tax, sales tax, and franchise fees. The Preliminary Budget reflects 3.6% growth from the FY 2025-2026 Original Budget in Sales Tax. This is the eighth year for the Special Purpose Districts that receive sales tax in their respective funds. Currently we transfer those receipts into the General Fund to pay for the Public Safety Personnel they support. The General Fund is projecting sales tax revenue of $13,677,166 for FY 2026-2027. Key General Fund Expenditure Drivers For FY 2026-2027, General Fund Recurring Expenditures are expected to total $70,076,361 which is an increase of 11.5% over the previous year’s amended budget. Including non-recurring total budget growth for the General Fund is 5.9% Addition Amount 3% merit increase inc. Benefits $1,929,122 Phase 2 of Compensation & Classification Study $1,100,000 Budget Hangover from Public Safety Positions (FY26 Additions were budgeted to start in February, 2026) $434,906 Increase to Overtime incl. Benefits $325,066 Increase to Health Fund Contributions $882,827 Full Year of Costco Reimbursement $260,000 Increase to VERF Contributions $600,000 Non-Discretionary Items $1,620,859 Total Increase to Recurring Exp.$7,191,210 General Fund (non-discretionary) Enhancements to Maintain Current Service Levels Administration: Ongoing Compensation Monitoring - $20,000 IT software - $377,334 Police: Community Reporting Software - $25,000 MVCPA Task Force Grant (80% Reimbursed) - $533,500 MVCPA Catalytic Converter Grant (80% Reimbursed) - $377,200 Fire: Air Cylinder Replacements - $51,552 Community Services: Raymond Park Operating Costs - $206,130 Mowing Contracts for new parks and medians - $336,340 Engineering: Traffic Light Software - $53,000 General Fund Cost Avoidance Measures Administration: •Transfer 1 Marketing Coordinator from Communications to the Hotel Occupancy Fund. Development Services: •Transfer 1 Sr. Building Inspector to Code and Reclass to Environmental Health Specialist. •Move Mosquito Abatement costs from Code Compliance to the Drainage Fund. Staffing Additions Stormwater Drainage Fund Department Title Start Date FTE Recurring One-time Public Works Heavy Equipment Operator – Street Sweeper 10/1/2026 1 127,677 314,000 Total Stormwater Drainage Fund 1 127,677 314,000 A total of 4 positions are proposed in the Utility Funds only. In the Water & Sewer Fund, 2 positions related to Meters to improve span of control, and 1 position for SCADA to provide near 24/7 coverage of the system. For the Stormwater Drainage Fund, 1 Street Sweeper Heavy Equipment Operator is proposed to allow for additional street sweeping maintenance. Water & Sewer Fund Department Title Start Date FTE Recurring One-time Public Works Utility Maintenance Supervisor – Meters 10/1/2026 1 131,535 53,500 Public Works Crew Leader – Meters 10/1/2026 1 113,099 72,577 Public Works SCADA Operator 10/1/2026 1 124,738 53,500 Total Stormwater Drainage Fund 3 369,372 179,577 Fund Recurring General Fund - Police-Sworn 459,867 General Fund - Fire-Sworn 518,444 General Fund – Non Public Safety 84,689 Water/Wastewater 37,000 Total Market Study 1,100,000 Market Study •Public Safety Market Methodology •Increase to adjacent market average and consider staffing levels •Non-Public Safety Market Methodology •Increase to minimum market average for select positions History: Pay Plan Adjustments FY-24 10/1/2023 •Police 7% •Dispatch 1-3% •Fire 5% •Fire all Positions to Market Avg. 4.85% •PD all Positions to Market Avg. 3.08% •Dispatch all Positions to Market Avg. 4.1% *Police, Fire, and Dispatch adjustments are in addition to step plan increases or top out lump sums. FY-25 10/1/24 •Fire FF & Driver Positions to Market Avg. 4.92% •PD Officer, Corporal, Detective to Market Avg. 3.5% •Dispatch Entry level Positions to Market Avg. 1.93% FY-27 10/1/26FY-26 10/1/25 •Fire all Positions to Adjacent Market Avg. 5.67% •PD all Positions to Adjacent Market Avg. 6.03% •Dispatch all Positions to Market Avg. 3.11% •As claims have leveled off consistent with the previous year, we are expecting a 1.2 months claims expense in Fund Balance with the increase in contribution rate. •This affects the FY 2026-27 Budget that we are diligently working with our consultant to maintain that Fund Balance until claims steady. •Staff has budgeted for a 18% increase to the Town’s premiums and will ask employees to pick up a 5 to 10% increase depending on their plan. •Plan structure changes will occur where required by law or acceptable changes proposed by the Health Consultants Health Fund Debt Service Fund •Add Series 2026 - $31.3 Million •Authority from the 2020 Bond Election •Approximately $12 Million remaining in the 2020 Authorization • The full $95.1 million available from the 2026 Bond Election •Decreases I&S Rate from 0.182946 to 0.174000 supplemented with interest earnings from the General Fund •35% I&S percentage of total Tax Rate (below 40%) •Outstanding Total Debt of $231,974,026 at end of FY26-27 •2.02% Outstanding Total Debt as a percentage of TAV (below 4%) •$4,700 Outstanding Total Debt per Capita Debt Service Fund Outstanding Total Debt FY 2022-2023 FY 2023-2024 FY 2024-2025 FY 2025-2026 FY 2026-2027 % of TAV 2.96%2.23%2.23%1.95%2.02% Per Capita $5,528 $4,683 $5,033 $4,581 $4,700 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 0 1000 2000 3000 4000 5000 6000 FY 2022-2023 FY 2023-2024 FY 2024-2025 FY 2025-2026 FY 2026-2027 Historical Debt Metrics Debt per Capita % of TAV Linear (Debt per Capita) Governmental Capital Projects •$70.7 million Total in Projects •$60.2 million in Streets Projects •$6.8 million Available for Planned Projects •$8.0 million Anticipated for Planned Projects •$8.0 million in Parks Projects •$2.6 million Available •$1.8 million Anticipated •$2.5 million in Facility Projects •$219k Available Multi-Year Capital Program/Debt Issuance Recently Approved Bonds Series 2026 Street and Transportation Projects ($7,717,843 Authorization Remaining of $150 million) •Coit Road (First – Frontier) – 4 lanes (Construction) $7,797,062 •Coleman (Gorgeous – Talon) – 4 Lanes (Construction) $15,500,000 •Frontier Parkway (Legacy – DNT) (Construction) $2,000,000 •Coleman (First – Gorgeous) (Land/Est) $1,000,000 •Teel Parkway (First – Freeman) (Construction) $500,000 •Legacy (Star Trail – Legacy MS) (Design/Land Est) $800,000 •Prosper Trail (Teel – Legacy) (Design/Land Est) $1,000,000 •Gorgeous (McKinley – Coleman) (Land/Est) $750,000 •Roundabout (La Cima/First St) (Design) $500,000 •Roundabout (Richland/Lakewood) (Design) $500,000 TOTAL $31,347,062 Parks and Recreation Projects ($3,270,000 Authorization Remaining of $30 million) • Frontier Park Improvements $1,000,000 Multi-Year Capital Program/Capital Dedicated Transfer to GF Construction Personnel •Transfer to GF CIP Personnel $1,200,000 Parks •Prairie Median Landscaping (W of Legacy to Mahard) $1,000,000 TOTAL $10,896,257 Facilities •Parks and Public Works Facility, Phase 1 $8,096,257 •Parks and Public Works Facility, FF&E $500,000 •Whitley Place / First St. Open Space $100,000 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 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% 2026-2027 11,495,554,112 6.4%607,241,178 5.6%81,821,037 0.8% 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 2026-2027 2025-2026 No-New-Revenue Tax Rate $0.500622 $0.482348 Voter -Approval Tax Rate $0.509936 $0.505000 Debt Rate (I&S Rate)$0.174000 $0.182946 Adopted Rate -$0.505 Proposed Rate $0.505 - Historical Property Tax Rate Tax Rate 2022- 2023 2023- 2024 2024- 2025 2025- 2026 2026- 2027 FY26 to FY27 Change General Fund 0.221830 0.230742 0.224608 0.224854 0.236213 0.011359 Capital Dedicated 0.108000 0.102000 0.100000 0.097200 0.094787 (0.002413) Debt Service 0.180170 0.177258 0.180392 0.182946 0.174000 (0.008946) Total 0.510000 0.510000 0.505000 0.505000 0.505000 - Benchmarking Proposed Fiscal Year Tax Rates Entity Homestead Exemption Rate General Fund Capital Dedicated I&S Total Tax Rate Equivalent Tax Rate for Homestead Freeze Anna 3.00%0.356071 -0.169002 0.525073 0.509320 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%0.323875 -0.063402 0.387277 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 0.441390 -0.108511 0.549901 0.549901 Yes McKinney None 0.276012 -0.136272 0.412284 0.412284 No Southlake 20%0.240000 -0.055000 0.295000 0.236000 Yes Average of Comparison 14.66%0.313008 -0.120707 0.433714 0.398497 - Prosper (FY2025-2026)17.50%0.224854 0.097200 0.182946 0.505000 0.416625 Yes Prosper (FY2026-2027)17.50%0.236213 0.094787 0.174000 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% Total Tax Rate Entity FY2025-2026 Adopted 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 Adopted Tax Rate Prosper ISD 1.2141 Town of Prosper 0.505 Denton County 0.185938 TOTAL 1.905038 Entity FY2025-2026 Adopted Tax Rate Denton ISD 1.1922 Town of Prosper 0.505 Denton County 0.185938 TOTAL 1.883138 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 13.1% increase in rates •Wastewater treatment supplier subscription decreased from 4 MGD to 3 MGD providing savings in debt needing to be issued •However, growth slowed in new accounts offsetting this savings. •Rate Consultant projecting need for multiple year rate increases including a blended 15.36% next year (13.95% water and 17.96% wastewater) consistent with previous year’s rate study. Proposed Rate Increase Source: NewGen Strategies and Solutions, LLC Rate Comparison *Other Entities listed show FY26 Rates and their FY27 proposals are not included. VERF Vehicle & Equipment Replacement Fund •Rolling of already ordered Fire Vehicles to current year’s budget as delivery is expected in FY 2026-2027 •Brush Truck •Ambulance •Added: •2 Police Patrol Cruisers •1 Water Utility Pickup Truck •1 Code Compliance Pickup Truck •1 Ambulance to be ordered in FY 2027 then received in FY 2028 •Retain Orders on several items with multi-year lead times with expected delivery in FY 2027-2028 or later: •PUC (Pierce Ultimate Configuration) Pumper Truck •100’ Aerial Bucket Truck Other Funds Solid Waste Fund •Created in 2023, the fund is self-supporting through rates. •Anticipated to meet $250k Fund Balance Requirement at end of FY2026-2027 Stormwater Drainage •Adding Street Sweeper Position •Transferring Mosquito Abatement Contract •Expanded Contracted Street Sweeping •Added Stormwater Drainage Master Plan Funding Hotel Occupancy Tax Fund: •Removed Tax Abatement Cost •Added Marketing Coordinator from General Fund Agenda Item 9. Consider and act upon accepting submission of the tax year 2026, fiscal year 2026-2027, no-new-revenue tax rate of $0.496118 per $100 taxable value, voter-approval tax rate of $0.509433 per $100 taxable value, and preliminary property tax rate of $0.505000 per $100 taxable value. (CL) Receive No-new-revenue and Voter-approval Tax Rates “I move to accept the submission of the tax year 2026 no- new-revenue tax rate of $0.500622 per $100 taxable value, voter-approval tax rate of $0.509936 per $100 taxable value, and preliminary property tax rate of $0.505000 per $100 taxable value.” Agenda Item 10. Consider and act upon a proposed FY 2026-2027 property tax rate. (CL) Motion Setting Not-to-exceed Tax Rate Motion to set the highest tax rate to be considered by the Town Council “I move to place a proposal to adopt a FY2026-2027 tax rate of fifty and one-half cents ($0.505) per hundred dollars ($100) of valuation on the September 8, 2026, Town Council Agenda” Agenda Item 11. Consider and act upon scheduling a Public Hearing on the FY 2026- 2027 Proposed Budget. (CL) “I move to schedule a Public Hearing on the FY 2026-2027 Proposed Budget for September 8, 2026, at 6:15 p.m., with the meeting taking place in the Council Chambers of Prosper Town Hall, located at 250 W First St, Prosper, TX.” Agenda Item 12. Consider and act upon scheduling a Public Hearing on the proposed Fiscal Year 2026-2027 tax rate. (CL) “I move to set the Public Hearing on the proposed tax rate for September 8, 2026, at 6:15 p.m., with the meeting taking place in the Council Chambers of Prosper Town Hall, located at 250 W. First St, Prosper, TX. ” Agenda Item 13. 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 regarding pending or anticipated litigation. •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.