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Budget - FY 2025-2026ADOPTED BUDGET FISCAL YEAR 2025 - 2026 OCTOBER 1, 2025 - SEPTEMBER 30, 2026 Town of Prosper Fiscal Year 2025-2026 Budget Cover Page This budget will raise more revenue from property taxes than last year's budget by an amount of $5,715,955, which is a 12.04 percent increase from last year's budget. The property tax revenue to be raised from new property added to the tax roll this year is $3,831,840. The members of the governing body voted on the budget as follows: FOR: David F. Bristol, Mayor Amy Bartley, Mayor Pro-Tem Chris Kern, Deputy Mayor Pro-Tem Marcus E. Ray, Councilmember Craig Andres, Councilmember Jeff Hodges, Councilmember Cameron Reeves, Councilmember AGAINST: PRESENT and not voting: ABSENT: Property Tax Rate Comparison 2025-2026 2024-2025 Property Tax Rate: $0.505000/100 $0.505000/100 No-New-Revenue Tax Rate: $0.482348/100 $0.466941/100 No-New-Revenue Maintenance & Operations Tax Rate: $0.311164/100 $0.313631/100 Voter-Approval Tax Rate: $0.505000/100 $0.522075/100 Debt Rate: $0.182946/100 $0.180392/100 Total debt obligation for Town of Prosper secured by property taxes: $211,120,434 HB 1495: Lobby Reporting/Budgeting The 86th Legislature passed HB 1495 to increase the transparency of local government lobbying. In accordance with Section 104.0045 of the Texas Local Government Code as amended by HB 1495 – Itemization of Certain Expenditures Required in Certain Political Subdivision Budgets - expense line items for public notices and lobbying efforts are provided below: Adopted FY 2024-2025 Amended FY 2024-2025 Estimated FY 2024-2025 Adopted FY 2025-2026 Lobbying Services $48,000 $48,000 $48,000 $48,000 Legal Public Notices $27,050 $26,050 $9,935 $23,050 FISCAL YEAR 2025 – 2026 ADOPTED VERSION October 1, 2025 – September 30, 2026 Prepared By: Chris Landrum, Finance Director Colin Ashby, Budget Officer & Grants Administrator Submitted to the Town Council on September 16, 2025 David F. Bristol, Mayor Amy Bartley, Mayor Pro-Tem Chris Kern, Deputy Mayor Pro-Tem Marcus E. Ray, Council Member Craig Andres, Council Member Jeff Hodges, Council Member Cameron Reeves, Council Member “Prosper is a place where everyone matters.” TOWN COUNCIL Mayor David F. Bristol Term: May 2028 Council Member Place 3 Mayor Pro-Tem Amy Bartley Term: May 2026 Council Member Place 1 Marcus E. Ray Term: May 2028 Council Member Place 5 Jeff Hodges Term: May 2026 Council Member Place 6 Cameron Reeves Term: May 2027 Council Member Place 2 Craig Andres Term: May 2027 Council Member Place 4 Deputy Mayor Pro-Tem Chris Kern Term: May 2028 The Mayor and each of the six (6) Council Member places are elected at large according to the Town Charter. Table of Contents INTRODUCTION Budget Message ................................................................................................................................................1 Reporting Entity Profile .................................................................................................................................. 14 Demographics ................................................................................................................................................ 15 Prosper on the map ....................................................................................................................................... 16 Budget Process ............................................................................................................................................... 17 Summary of Financial Policies ........................................................................................................................ 18 Budget Calendar ............................................................................................................................................. 21 Basis of Accounting-Budgeting....................................................................................................................... 22 Fund Structure Overview ............................................................................................................................... 24 Consolidated Fund Summaries ...................................................................................................................... 25 Strategic Planning Process ............................................................................................................................. 28 Strategic Visioning Priorities .......................................................................................................................... 29 Organization Chart ......................................................................................................................................... 30 Authorized Positions ...................................................................................................................................... 31 Combined Graphs........................................................................................................................................... 32 Property Tax Distribution ............................................................................................................................... 33 Property Valuation & AV Taxes ...................................................................................................................... 34 Tax Levy Analysis ............................................................................................................................................ 35 Analysis of Assessed Valuation ...................................................................................................................... 36 Taxable Values by Type .................................................................................................................................. 37 Sales Tax ......................................................................................................................................................... 38 Impact Fee Revenues ..................................................................................................................................... 39 Water and Wastewater Revenues ................................................................................................................. 40 GENERAL FUND Fund Description ...............................................................................................................................................1 Fund Balance .....................................................................................................................................................2 Fund Revenues ..................................................................................................................................................3 Fund Appropriations .........................................................................................................................................4 Fund Summary Table ........................................................................................................................................5 Fund Overview Chart ........................................................................................................................................6 UTILITY FUNDS Funds Description .............................................................................................................................................1 Funds Revenue ..................................................................................................................................................2 Fund Appropriations .........................................................................................................................................3 Water & Wastewater Net Assets ......................................................................................................................4 Water & Wastewater Summary .......................................................................................................................5 Water & Wastewater Overview Chart .............................................................................................................6 DEBT SERVICE FUND Fund Description ...............................................................................................................................................1 Fund Summary Table ........................................................................................................................................2 Debt Margin Projections ...................................................................................................................................3 Debt Issuance Details ........................................................................................................................................4 Outstanding Principal on Debt ..........................................................................................................................9 Principal and Interest Debt Schedule ...............................................................................................................10 OTHER FUNDS Other Funds Revenue .......................................................................................................................................1 TIRZ 1 ................................................................................................................................................................2 TIRZ 2 ................................................................................................................................................................4 Crime Control and Prevention District Fund ....................................................................................................6 Fire Control, Prevention, and Emergency Medical Services Fund ...................................................................8 Parks Fund ..................................................................................................................................................... 10 Impact Fee Fund Description ........................................................................................................................ 12 Water Impact Fee Fund ................................................................................................................................. 13 Wastewater Impact Fee Fund ....................................................................................................................... 14 East Thoroughfare Impact Fee Fund ............................................................................................................ 15 West Thoroughfare Impact Fee Fund .......................................................................................................... 16 Hotel Occupancy Tax Fund ........................................................................................................................... 17 Special Revenue Fund ................................................................................................................................... 19 Vehicle and Equipment Replacement Fund (VERF) Description ................................................................... 21 VERF Replacements ....................................................................................................................................... 23 Health Insurance Trust Fund Description ...................................................................................................... 24 Health Insurance Fund Summary ................................................................................................................. 25 CAPITAL PROJECT FUNDS Funds Description .............................................................................................................................................1 Governmental Capital Projects ........................................................................................................................2 Enterprise Capital Projects ...............................................................................................................................4 MULTI-YEAR CAPITAL PLAN Five-Year Capital Improvement Program (CIP) ................................................................................................1 CIP Summary ....................................................................................................................................................2 APPENDIX Supplemental Descriptions ..............................................................................................................................1 Package Summaries .........................................................................................................................................2 Financial Policies ...............................................................................................................................................5 Charter Article VII ......................................................................................................................................6 Financial Management Policy ................................................................................................................ 11 Debt Management Policy ....................................................................................................................... 21 Post Debt Issuance Policy ...................................................................................................................... 30 Town Staff and Consultants .......................................................................................................................... 34 Tax Rate Calculation Sheet ........................................................................................................................... 36 Glossary .......................................................................................................................................................... 45 INTRODUCTION September 16, 2025 To The Honorable Mayor and Town Council Re: The FY 2025-2026 Adopted Budget In accordance with the Town Charter and the State of Texas statutes governing home rule municipalities, please accept this letter as my budget transmittal and executive summary of the Adopted Annual Budget for the operating, capital and debt service funds of the Town. The Town’s Adopted Budget is developed through an extensive process of reviewing requests received by various Town departments and then prioritizing those requests in a manner that utilizes resources effectively, within fiscal constraints, while working to achieve the Town Council’s strategic vision. As prepared and submitted, the Adopted Budget is intended to: Serve as an operating and fiscal plan for the new fiscal year, Provide a basis of accountability to the taxpayers for the investment of their tax dollars, Serve as a basis for measuring the performance for those individuals charged with the management of the Town’s operations; and Demonstrate compliance with financial related policies passed by the Town Council. The annual operating, capital and debt service funds budgets combined with the multi- year capital plan contained herein represent the single most important management tool of the governing body and the staff. BUDGET OVERVIEW This budget was prepared based on the Town Council Strategic Vision adopted in May 2024 of: 1.Acceleration of infrastructure. 2.Development of Downtown Prosper as a destination. 3. Ensure that the Town’s commercial corridors are ready for development. 4.Continue to provide excellent municipal services. 5.Work towards a growing and diversified tax base. Introduction Page 1 In the first five years of the originally ten-year $210 million November 2020 bond program 79% of the authorized bonds will have been issued with $43.5 million of authorized but unissued bonds remaining. A 2025 bond election which includes propositions for infrastructure, a library, various park improvements, and other critical facilities will be called for November 2025. Regarding the development of Downtown Prosper as a destination, multiple businesses including several restaurants have opened during the year and a new multi-family development is now open. The Downtown Advisory Committee has been actively programming Town funding for improved aesthetics and walkability. A new Downtown Plaza is underway on Broadway, and the design phase for a new Downtown Monumentation project is complete. The Communications team and the EDC have created new websites to promote Downtown Prosper as a destination, and several Downtown events are planned, including the Prosper on Tap series and the annual Christmas Festival. For readying commercial corridors, the Town is progressing with the updating of its Comprehensive Plan to guide development over the next several years. A consultant has been hired to fully realize the vision along the Dallas North Tollway Corridor. Infrastructure, including roads, water lines, and wastewater lines, to support these corridors continue to be a major emphasis. Excellence in municipal services begins with public safety. Construction on a fourth fire station is well underway, and benchmarking of public safety staffing levels compare well with surrounding cities. While quality of life starts with public safety, it cannot stop there, and the current budget includes the operating costs for service Raymond Community Park currently under construction with expected completion this Fall. Regarding a diversified tax base, this element of the vision is supported by the other four and the Town is quickly transitioning from simply a bedroom community by adding a growing commercial base that includes two pediatric hospitals, a significant and growing retail base that includes the most prominent national chains, three car dealerships and two hotels currently under construction with two more planned. Despite the Town’s current and future growth potential and general optimism, this budget has been prepared with conservative revenue assumptions in mind and budget challenges related to the Town’s rapid growth continue. Introduction Page 2 BUDGET IN BRIEF Total FY 2025-2026 Adopted Budget Operating Appropriations $124,847,464 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,  $49,749,787 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. VALUE OF TAXABLE PROPERTY AND GROWTH The growth in taxable value of real property corresponds to a significant increase in residential growth and population over the past year. According to the most recent population estimates published by the North Central Texas Council of Governments (NCTCOG), the Town of Prosper’s new population as of January 1, 2025, was 46,087. The Town has 13 active residential subdivision phases with a total of 1,182 lots that are either shovel ready, under construction, or have plans under review. The Town experienced an overall 12.3% increase in assessed values for the 2025 tax roll with 2/3rds of the increase (7.9%) new construction and 1/3rd (4.4%) from increases in existing valuations. The Town is also seeing an 8.4% increase in homestead property values that qualify for the over 65 and disabled persons exemption and freeze and is expecting this trend to continue. PROPERTY VALUES Certified property valuations increased by $1,184,390,312 (12.3%) for FY 2025-2026. Property values increased from $9,622,101,595 to $10,806,491,907. These totals exclude value of properties subject to the tax freeze. Of the increase, $758,780,238, or 7.9%, resulted from new construction, compared with $870,449,826 last year. New value added to the tax roll will continue to be primarily from residential growth, however, commercial growth continues to expand at a strong rate. Introduction Page 3 PROPERTY TAX RATE The Adopted FY 2025-2026 Budget proposes a property tax rate of $0.505 per $100 of taxable assessed valuation. The total tax rate is divided between Maintenance and Operations (M & O) and the Debt Service Fund. Of the total tax rate, the $0.322054 cents maintenance and operations levy is split between $0.224854 for the General Fund, $0.0972 for the Capital Dedicated Fund with a $0.182946 levy for general obligation debt service. Even with carving out 9.72 cents of the M & O levy for Capital Dedicated purposes, property taxes are 38.4% of the Proposed revenue in the General Fund. The portion of the tax rate dedicated to debt service is approximately 36% of the overall Town tax rate well within policy guidelines of no more than 40% specified by the debt management policy. SALES TAXES The Town of Prosper levies a 1.50% tax on all taxable items sold within its borders (the Economic Development Corporation’s 0.50% tax is in addition to the Town’s 1.00% tax). In May 2023, the citizens renewed the Crime Control and Prevention District and the Fire Control, Prevention, and Emergency Medical Services District through 2043 with each collecting 0.25% of dedicated sales and use tax. Each district is reported as a special revenue fund and sales and use tax is 99% of revenue in these funds. As sales tax revenues have become a prominent funding source, this will help dedicate more resources to the public safety needs of the Town. This budget reflects the seventh year since the districts were created. Overall, the Adopted Budget includes $13,199,055 in sales tax revenues, compared to $12,308,897 in the FY 2024-2025 revised year end estimate. This is largely attributable to the continuing retail and commercial development growth in Prosper. The one percent sales and use tax reported to the General Fund comprises 19.2% of total revenue in the Adopted Budget. See the table below labeled Commercial Taxable Property and Growth which reflects major retail developments coming online during the next budget cycle. The Adopted Budget reflects a sales tax estimate of 7% growth from the current year end projection. COMMERCIAL TAXABLE PROPERTY AND GROWTH EXPECTED FY 2025-2026 Name Square Feet Gates Phase 3 (commercial) 136,075 Prosper Business Park Phase 4 & 5 (office) 99,987 One United Volleyball 73,645 Eagle Crossing Phase 2 (retail/warehouse/office) 72,700 Marriott Hotel 55,200 Prosper Tollway office park 28,500 Broadway Retail 29,120 Other >25,000 each 190,560 Introduction Page 4 EMPLOYEE PAY AND BENEFITS Sworn Fire and Police personnel are on a step plan and civilian pay is based on a performance merit system. The Town employees can receive up to a 3% merit increase based on their annual performance. Employees will continue to see their steps or annual merit adjustments based on performance. The FY 2025-2026 Adopted Budget includes salary changes according to a comprehensive market study. This market study adjusts sworn personnel by a market rate averaging over 4.5%. For non-sworn personnel adjustments include a market rate averaging 2.5%. The total impact included in the budget is $706,000. The Town has historically provided a competitive and innovative benefits package to employees, offering a selection which best suits employees’ individual and family needs. Providing these options has benefitted not only recruitment efforts, but also retention of employees. The Town’s estimated contribution for employee healthcare benefits is $5,732,137, for fiscal year 2025-2026. With insurance premiums rising, the town has increased their contributions by 24%, with the employee picking up a 5 or 10% increase depending on their plan. The Town currently offers high deductible and PPO medical plans. PROGRAM AND STAFFING LEVELS The Town of Prosper currently has 410.75 authorized full-time equivalent (FTE) staff members allocated among the various operating departments, excluding EDC. The Proposed budget includes an increase of 23 full-time equivalent positions. Details of all requested positions can be found in the Authorized Positions page of this document. The Adopted Budget includes the following staffing additions by department and changes to occur shortly after the beginning of October 2025 for non-General Fund Positions and February 2026 for General Fund Positions: Fund Department FTE General Finance 1.0 General Police 6.0 General Fire 9.0 General Traffic 1.0 General Parks and Recreation 2.0 General Library 1.0 Water/Sewer Public Works 2.0 Stormwater Drainage Public Works 1.0 Total FTE 23.0 Introduction Page 5 UTILITY RATES Water and Wastewater. During this time of rapid growth for both the Town and its regional suppliers, the Town has committed to annual rate studies conducted by an outside rate consultant with a great deal of familiarity with the region and is also obtaining frequent updates of its water and wastewater masterplan. Charges from its regional suppliers represent approximately 50% of the operating costs of the utility fund and are expected to rise significantly in future years due to expansion of both potable water and wastewater treatment capacity. The financial goal for the utility is to operate on a breakeven basis over time while complying with all adopted financial standards, maintaining its water and wastewater infrastructure in good condition and meeting or exceeding required debt coverage ratios. In fiscal year 2024-2025 a blended 10.4% increase was approved. Now however, the most recent rate study recommends, and Town staff has included a blended 8.8% increase comprised of water (6.26%) and wastewater (15.08%) rate increase for the current year. Given projections of our regional suppliers and planned debt issuance to fund the Town’s share of the Doe Branch wastewater plant expansion future annual increases are expected the actual size of the increases will be evaluated annually. Solid Waste. With the transition to a new provider complete, the Solid Waste Fund is now self-sufficient and building towards its Fund Balance target of $250,000. The new contract for all commercial and residential solid waste services is for an initial seven-year period ending January 31, 2031. Rates are adjusted each February 1st based on CPI, fuel, and disposal rate adjustments. The goals for the new contract were: • Greater contract monitoring and contract remedies to improve quality of service. • Owning the residential collection carts improving flexibility in changing providers and promoting the Town’s “brand”. • Creating a self-supporting solid waste operation with all costs offset by user fees. These goals are consistent with the Strategic Vision of “Excellence in Municipal Services” with early feedback from citizens being overwhelmingly positive. Stormwater Drainage. Storm Drainage rates will increase by $1 across all rate categories, resulting in an estimated revenue increase of $558,305. This is the first rate adjustment since FY 2017–2018. Under the proposed rates, residential Tier 1 customers will pay $4.00 per month, and Tier 2 customers will pay $6.15. Commercial customers will be charged $2.00 per 1,000 square feet of impervious surface. Introduction Page 6 GENERAL FUND The FY 2025-2026 Adopted Budget, as presented, is based on using a tax rate of 22.4854 cents per $100 of assessed value. Each additional penny of the tax rate generates approximately $1,080,649 in property tax revenue. The target reserve level (Fund Balance) is set at 21% (approximately 75 days) of total appropriations. Target Fund Balance is based on a Town Charter requirement of 20% and a Town Council policy of an additional 1%. Budget estimates project fund balance to be at 21% at the end of FY 2025-2026. At the end of FY 2025-2026, the projected total Fund Balance reflects an increase of $31,542 to $11,823,851. The Town continues to focus on utilizing recurring revenues to fund enhancements with a one-time cost, rather than funding items with a recurring cost. This practice allows the Town to gain these dollars back in future years to be utilized in a similar manner. GENERAL FUND REVENUES 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 additional revenue is from increased property and sales tax, and franchise fees. The growth of this fund is largely the result of continuing residential and commercial development and population growth in Prosper. It is the Town’s preference to take a conservative approach in budgeting these major revenue sources. Sales Tax revenues continue to increase. Historically, the Town has conservatively forecasted the sales tax revenues. The Adopted Budget reflects 7.2% growth from FY 2024-2025 year-end projected sales tax receipts. The General Fund is projecting sales tax revenue of $13,199,055 for FY 2025-2026. This proposal also contains a plan to transfer the sales tax revenue received in the Special Purpose Districts transferred to the General Fund to pay for police and fire salaries that would normally be paid within the Special Purpose Districts. License, Fees and Permits Revenues are projected at $7,864,747 for FY 2025-2026, an increase from the previous year. The Budget still reflects steady new residential and non- residential construction, albeit at a slower pace. It is assumed the Town will issue approximately 800 new residential permits in the coming year. Additionally, fee adjustments have been proposed to be consistent with other communities in the area. This includes increases to Engineering Fees, Building Fees, Planning Fees, and Health Fees. Introduction Page 7 Licenses and Franchise Fees are projected to rise with population. Municipal Court Fines are projected to increase in FY 2025-2026. General Fund Revenues by Source: GENERAL FUND APPROPRIATIONS Total General Fund Appropriations for the FY 2025-2026 Adopted Budget are $68,209,022. Personnel costs make up approximately 70% of the General Fund budget. The Adopted budget includes 20 additional staff members for the General Fund. The major Program Enhancement and Capital Expenditures included in the Proposed appropriations and planned for FY 2025-2026 by department are as follows: Administration: Enhancements Amount Comprehensive Compensation and Benefits Study and Funding $706,000 ERP System Maintenance $309,408 Digital Plan Review Platform Migration $95,799 Risk Management Consultant $25,000 Police: Enhancements Amount Flock Safety Program Expansion (Grant) $1,954,539 Parks and Recreation: Enhancements Amount Raymond Park Water Charges $370,000 A complete summary listing of the Proposed enhancements with a detailed explanation can be found in the Appendix section of this document. Revenue Category FY 2025-2026 % of Total Property Tax $26,277,088 38.5% Sales Tax 13,199,055 19.3% Franchise Fees 4,685,174 6.9% License, Fees & Permits 7,834,247 11.5% Transfer In from SPD 6,885,055 10.1% Transfer In from CIP 1,479,216 2.2% Other 7,880,729 11.5% Revenue Total $68,240,564 100.0% Introduction Page 8 DEBT SERVICE (Interest & Sinking [I&S]) FUND With the planned August 2025 issuance, the Town of Prosper will hold just under $268.4 million in outstanding tax supported debt. $19.45 million of new money will be issued for road, public safety and parks projects, and $23.3 million in new money is planned to be issued for water infrastructure projects and is paid from water, sewer revenues. In the past; to obtain a more favorable interest rate, the debt also had a tax pledge. Last year the Town issued Revenue Bonds whose sole repayment source is water and wastewater revenues. These bonds have a rating of AA- (stable) from Standard & Poor and AA (stable) from Fitch Ratings. The Town’s $203.95 million of tax supported debt, issued for roads, public safety and parks has a debt rating of Aa1 from Moody and AA+ from S&P. For the FY 2025-2026 General Obligation debt issuance, S&P rated us at AA+ (stable) and the Town received a AAA (stable) rating from Fitch Ratings marking a culmination of hard work to improve the Town’s credit rating for future debt issuances. Appropriations for FY 2025-2026 in the Debt Service Fund will total $21,165,328. This represents a 12.32% increase from the prior year’s budget. This increase is a result of a planned issuance of $19.45 million from the $210 million approved bond package which will be 2025 General Obligation Bonds in FY 2025-2026. WATER AND SEWER FUND The Water and Sewer Fund’s principal source of revenues are charges to customers for water use, wastewater treatment, and fees related to providing consumers with new water and wastewater services. Total fund revenues for FY 2025-2026 are estimated to increase to $47,336,191 (an increase of 19.41%) over the previous year’s amended budget. The increase is due to an increase in the number of accounts along with customer rate increases to keep pace with the passthrough charges from the regional water providers and funding the Town’s share of wastewater treatment expansion. The adopted business plan for the Water and Sewer Utility Fund identifies the need for revenue growth to cover existing and future operations and maintenance costs as well as debt service and contracted water and sewer costs with the Upper Trinity Regional Water District and North Texas Municipal Water District. Introduction Page 9 Water & Sewer Fund Revenues by Source: Revenue Category FY 2026 Adopted % of Total Water Charges $27,821,398 58.8% Wastewater Charges 18,074,593 38.2% License, Fees & Permits 193,000 0.4% Penalties 205,500 0.4% Investment Income 350,000 0.7% Miscellaneous 691,700 1.5% Revenue Total $47,336,191 100.0% The Town of Prosper along with other surrounding municipalities’ purchases treated surface water from the North Texas Municipal Water District (NTMWD). The Adopted budget reflects increased water consumption due to growth in customers and demand. Rates from NTMWD will increase by 14.9% from $3.96 to $4.24 per 1,000 gallons of water purchased. The Adopted budget includes an increase of 2 additional staff members for the Water and Sewer Fund. The major Program Enhancement and Capital item expenses budgeted in the Water/Sewer Utility Fund by department include: Water: Enhancements Amount Water Meter Replacements $449,981 Increased Smoke Testing $90,000 Automatic Transfer Switch $65,000 Currently, the Water and Sewer Fund holds just over $71.82 million in outstanding debt. The Town recognizes that in this time of fast growth significant additional debt is required and has developed a strong set of financial policies that it believes will serve the Town well into the future. With the growth and maturing of the Water and Sewer Fund, Revenue Bond ratings were sought and obtained as a conformation of the long-term strategy. In addition to the financial policy requirement to maintain debt service coverage ratios of 1.25 times average annual debt service, the Town’s debt covenants for Revenue debt also specify a coverage ratio of 1.10 times maximum annual debt service and 1.2 times next annual debt service and a debt service reserve. DRAINAGE UTILITY FUND Currently, the Drainage Utility Fund holds $2.24 million in outstanding debt. The Town will implement the first fee increase since FY 2017-2018. Under the proposed rates, residential Tier 1 customers will pay $4.00 per month, and Tier 2 customers will pay $6.15. Commercial customers will be charged $2.00 per 1,000 square feet of impervious surface. Introduction Page 10 CAPITAL PROJECT FUNDS The Town continues to strengthen management of its capital program. Multi-year capital budgets are adopted in the Capital Project Funds. The Capital Improvement Sub- Committee of the Town Council prioritizes projects for the current year and future years, The Capital Project Funds account for financial resources to be used for the acquisition or construction of major capital facilities. The budget for these projects is independent of the operating budget and are typically funded with bonds, grants, fund balance, special restricted revenue, or other sources of capital from developers or other private investment. Appropriations are adopted on a “Project” basis and continue until the project is completed which typically spans fiscal years. The table below summarizes the capital projects added for FY 2025-2026. Street Projects First St. Whitley Place Open Space 250,000 Gee Road (US 380 - FM 1385) - 2 NB Lanes 1,100,000 Coleman (Gorgeous - Prosper Trail) - 4 Lanes 15,500,000 Coleman (Prosper Trail – Talon) - 2 SB Lanes 5,000,000 Craig Street (Preston - Fifth) 4,400,000 Godwin Parkway (DNT – BNSF RR) 2,000,000 Traffic Signal - First & Artesia 140,000 Traffic Signal - Teel & Prairie 140,000 Traffic Improvement Projects 1,500,000 Traffic Signal - Legacy & Prairie 140,000 Traffic Signal – Legacy & Prosper Trail 85,000 Traffic Signal – Legacy & Starwood 85,000 Unprogrammed Streets Projects 320,098 Parks Projects Raymond Community Park Dam Repair 350,000 Downtown Park 200,000 Rec Center Strategic Implementation 100,000 Playgr. Shade Struct. - Lakewood, Hackberry 200,000 Security Cameras – RCP, Lakewood 250,000 Pecan Gr. & Whitley Pl. HOA Irrigation Separation 125,000 Mirabella Park (Tellus) 500,000 Creekside Park (Shaddock) 445,000 Prairie Park Restroom Enclosure 250,000 Downtown Monumentation 255,000 Raymond Community Park 128,000 Dream Park 3,000,000 Prairie, Richland, Mahard Medians 900,000 Unprogrammed Parks Projects 350,000 Introduction Page 11 Facility Projects Parks and Public Works, Phase 1 5,397,062 Facility Improvement Projects 300,000 Unprogrammed Future Public Safety 300,000 Water & Wastewater Projects First Street (DNT – Coleman) - 12” Water Line 2,500,000 6MG Ground Storage Tank - Construction 5,695,000 Craig St 2MG EST Rehabilitation - Design 2,540,000 US 380 30” Water/8” WW Line Relocation 1,800,000 Unprogrammed Water/Sewer Projects 131,069 Drainage Projects Old Town Regional Detention Pond #2 200,000 Unprogrammed Drainage Projects 56,690 REGIONAL PARTNERSHIPS Continued partnerships with other entities have produced multiple saving opportunities for shared services or improving our customer service to residents and visitors alike. •The Town has an Interlocal Agreement with PISD to access their fueling facility for emergency purposes and to use specified PISD facilities for recreation and other programs. •The Town renews its agreements along with several area cities to contract with Collin County for Animal Control and Sheltering Service. •The Town has Interlocal agreements with Frisco for the Police and Fire Departments to access their radio system. •The Town has Interlocal Agreements for landscape services with the City of McKinney and City of Frisco. GENERAL DISCUSSION ITEMS/COUNCIL POLICY GUIDANCE The five elements of the council strategic vision all complement each other, and all contribute to the ultimate quality of life and a thriving community at build-out. This does not mean, however, that the elements do not compete against each other for funding, with the greatest competition existing between Acceleration of Infrastructure and Excellent Municipal Services. Three years ago, (FY 2022-2023), the Council created a Capital Dedicated portion of property tax that is budgeted for 9.72 cents of rate and $10.5 million of funding. This capital dedicated levy would otherwise be used to provide General Fund services and is creating pressure to keep the General Fund budget lean. On the expenditure side multiple discretionary budget requests have been reduced or eliminated. In addition, non-recurring requests that exceeded a $250,000 threshold and were clearly capital in nature were removed and will be considered for Capital Dedicated or other capital project funding. Introduction Page 12 CONCLUSION While budgets are always a challenge, we have worked diligently to propose a budget that accomplishes Council goals to expand services and competitively compensate staff while holding the line on the tax rate. We have also presented a future five-year financial plan to help manage the decisions made for the next fiscal year and the impact it has on future fiscal responsibilities. The Town’s Adopted Budget addresses the current and future growth and infrastructure expansion demands while recognizing the current service needs of its residents. I would also like to compliment and thank the entire Town staff for their dedication, diligence, and fiscal accountability in providing their respective services to the Town Council and the residents of Prosper. Sincerely, Mario Canizares Town Manager Introduction Page 13 Entity Profile The Town is a political subdivision and a home rule municipality under the law of the state. A Home Rule Charter was approved by the voters of the Town at an election held November 7, 2006, and revised on May 14, 2011, and May 6, 2017. The Town operates as a Council-Manager form of government with the Town Council comprised of the Mayor and six Council Members. The term of office is three years. The Town Manager is chief executive officer of the Town. Services the Town provides include public safety (police, fire protection, and dispatch), and municipal court, public streets, water/wastewater, solid waste and storm drainage utilities, parks and recreation, library, public improvements, engineering, planning and zoning, building inspections and code compliance, economic development and general administrative services. Some services, such as legal and solid waste/recycling, are outsourced in full or in part to the private sector. The Town is located in North Central Texas and covers approximately twenty-seven square miles of the Dallas/Fort Worth Metroplex (“DFW”). Prosper includes areas in Collin and Denton Counties, with most of the Town’s population residing in Collin County. The Town is located at the crossroads of Preston Road and US Highway 380 and is just five minutes north of the bustling Dallas North Tollway cities of Frisco and Plano. Prosper is home to nationally recognized educational opportunities. The Fire and Police Departments have received excellent marks for exemplary service and response times. The community has over 634 acres of open space and parks and is providing connectivity to all of them. Most neighborhoods boast larger lots and have active Homeowners Associations which protect quality and aesthetics. The Dallas-Fort Worth airport is within 45 minutes of the community with easy access to interstate and tollway systems. Prosper was chosen as the North Campuses for Children’s Hospital and Cook Children’s Hospital. In 2019, Prosper was recognized in two publications as one of the top 25 “greatest small towns to live in the U.S.” With a median income of $214,000, the community is one of affluence, with access to numerous amenities, excellent health care, and opportunities for business growth. The 2010 Census population for the Town was 9,423, the 2020 Census population was 30,174, and the 2025 population is estimated at 46,087. 9,462 12,190 14,710 17,790 22,650 28,390 31,100 35,430 38,540 46,087 - 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 2010 2012 2014 2016 2018 2020 2021 2022 2023 2024 Town of Prosper Population Estimates Introduction Page 14 2024 Estimated Population: 46,087** 2025 Assessed Valuation: $10,806,491,907 Median Age: 36.22* Median Household Income: $214,000** Number of Households (includes renter-occupied apartments): 13,702* Square Miles: 27 Unemployment Rate: 4.9%* Prosper ISD Public Education 3,334 HEB Grocery Store 570 Cook Children's Campus Medical 510 Kroger Grocery Store 500 Town of Prosper Municipality 411 Walmart Grocery/Retail Store 270 Chick-Fil-A Restaurant 240 Home Depot Home Improvement Store 185 Target Retail 160 Lowe's Home Improvement Store 150 Texas Health Resources Medical 120 Dick's/Field & Stream Sporting Goods Retail 95 Percentage of Total 380 & 289 LP GOP #2 LLC Orion Prosper Lakes LLC DD Bluestem LLC GOP Multifamily LLC Orion Prosper LLC 289 (Preston) & 380 LP & Prosper Residences LLC Crossland Texas Industrial LLC Ryse Up Sports Nutrition LLC * Data retrieved from Placer.AI ** Data retrieved from Prosper Economic Development Corporation *** Data retrieved from Denton County CAD and Collin County CAD $35,378,312 0.33% $31,921,150 0.30% $61,499,384 0.57% $49,879,759 0.46% $38,432,617 $53,637,255 0.50% 0.36% Taxable Assessed Value Taxable Assessed Value $97,243,028 0.90% $68,400,000 0.63% $86,459,564 0.80% $68,610,636 0.63% Demographics and Economic Statistics Major Employers: Major Taxpayers: Introduction Page 15 Introduction Page 16 The Budget Process PURPOSE OF AN ANNUAL BUDGET The Town of Prosper Budget serves multiple purposes. It is: The legally adopted and binding financial and spending plan of the Town. A communication tool to residents, businesses, and employees regarding the Town's priorities and initiatives. A demonstration of financial stewardship including compliance with all applicable laws and regulations. BUDGET OVERVIEW The Town's fiscal year is from October 1st to September 30th. The Budget is regulated by both Town Charter, Town financial policies and by State statute. Each fund within the Town has its own budget. Budgetary control is defined by the Town charter and is at the department level meaning that each department’s appropriations cannot be exceeded or increase without formal action of the Town Council. Budget changes if made are by ordinance and shall become an attachment to the original budget. Final adoption of the budget by the Town Council shall constitute the official appropriations as proposed for expenditures in the current year and shall constitute the basis of official levy of the property tax as the amount of tax to be assessed and collected for the corresponding tax year. PREPARATION OF THE ANNUAL BUDGET DOCUMENT Budget preparation begins with the strategic vision and priorities of the Town Council. In the spring, staff will present to the Council a multi-year budget forecast to provide a preview of the upcoming budget year and to identify any items or programs that the Council would like additional information. Internally, Department heads are provided worksheets and forms for submission. April, the Budget Preparation Manual is distributed to departments for review. Submissions include funding requests for personnel, improvements to public services, capital outlays and enhancement projects. Once received from departments, the Finance Department carefully reviews and evaluates each department's budget submissions for completion and line-item consistency. The overall picture of estimated revenues and proposed expenditures is studied. Focusing on the Town Council's vision for Prosper and providing the most efficient and effective services to the Prosper citizens. These budget requests are reviewed by the Town Manager and his or her Executive Team. The last week in July, certified property tax rolls are received from the two county appraisal districts serving the Town providing management a clearer picture of the revenue available to fund programs. Final adjustments are made, and the Preliminary Budget is presented to the Town Council the first Council meeting in August. The Preliminary Budget is a staff document that following changes and approval by Town Council becomes the Proposed Budget, which starts the required due process procedures including legal notice and posting and the scheduling of a public hearing. This eventually culminates into Town Council public hearing in September. At this time, the Town Council may further revise the proposed budget as it deems necessary. The final adoption of the Annual Budget takes place in September when the budget is legally enacted through the passage of an ordinance. As required by charter, the Town Manager also submits a five-year capital plan as an attachment to the annual budget. This plan is prepared in conjunction with the Capital Project Fund budget. Each year new capital projects are added to the fund and the appropriations for these projects carry over from year to year until the project is completed. BUDGET ADMINISTRATION The Fiscal Year begins, and the approved budgets are then under the management of the responsible Department Head and ultimately the Town Manager. The Town Manager submits monthly financial reports as required by Town Charter and actively manages any shortfalls in revenues or overages in expenditures. Unless known to be immediately necessary or significant in value, budget amendments will be done towards the close of the fiscal year, taking into account other possible savings within the fund. Encumbered amounts are charged to the budget year in which the appropriation was created provided that the invoice for the good or service is received within two months of year end. On November 30th all purchase orders related to operations lapse. Purchase orders related to multi-year capital projects are recorded in the capital projects fund and do not lapse. Introduction Page 17 1 Summary of Financial Policies The Town’s Administrative Regulations includes 22 chapters with six chapters having the greatest impact on day-to-day financial management and resulting financial position of the Town. These are: Chapter 12-Vehicle Equipment and Replacement Fund, Chapter 13-Fund Balance, Chapter 15-Debt Management Policy, Chapter 16-Debt Post Issuance Policy, Chapter 17-Financial Management Policy, and Chapter 21-Capital Project Management Policy Brief summaries of each policy are included below with the complete policy included as an appendix to this book. To facilitate a logical topic flow, policies will not necessarily be discussed in chapter number order. Chapter 17-Financial Management Policy The rapid growth of the Town has required rapid expansion of personnel, infrastructure, facilities and finances. To address these issues the following policies are designed to promote strong financial management. Annual Audit and External Financial Reporting. Requires annual issuance of a Annual Comprehensive Financial Report (ACFR) and audit. Establishes criteria to ensure that the external auditor hired will be sufficiently experienced in state and local government audits to provide a quality audit. Requires all auditor findings regarding internal controls to be addressed. Operating Budgets. Sets the timing for the budget process and level of budgetary control. Requires a structurally balanced budget in which recurring expenditures may not exceed recurring revenues. Non-recurring expenditures may be funded from recurring revenues, non-recurring revenues and fund balance in excess of policy reserves. Budgets that draw reserves below policy requirements are deficit budgets and a plan must be established to replenish policy reserves. System of Internal Controls. Town Management and the Finance Director are responsible for Town- wide written guidelines for accounting, reporting and compliance. All Department Directors are responsible for ensuring these policies are followed in their respective departments. Tax Rate Management. Establishes a capital dedicated portion of the M & O levy that can be used fund pay as you go projects and reduce debt issuance in the short-term and then as capital facilities are built but revenue growth has slowed, can be rediverted to fund operations required for the new facilities. Revenue Management. Does not permit dedication of general revenues for specific purposes. User based fees should be cost based and may be classified as “full” “partial” or “minimal” cost recovery. Impact fees for water, wastewater and roadways will be reassessed every five years. Utility rates will be self-supporting. Expenditure Control. All expenditures must be appropriated by budget. Operating appropriations that are not expended or encumbered at year end lapse. Financial Condition and Reserves. Reinforces the requirement for no operating deficits. Establishes General Fund Reserve at the 20% charter reserve as restricted fund balance and unassigned fund balance of 1% for a total of 21% (2 ½ months of expenditures). Establishes $25,000 cash reserve for both Fire and Crime Control Special Purpose Districts. Requires enterprise funds to be self- sufficient. Introduction Page 18 2 Capital Improvement Program. Requires annual updates of the five-year capital improvement program including projected operating costs of new facilities and improvements. Chapter 13- Fund Balance Policy Establishes the basis and need for maintaining minimum fund balance reserves, defines categories of fund balance for financial reporting and references GFOA Best Practices for determining adequate fund balance. Fund Balance is set at a total of 21% (21/2 months expenditures) for the General Fund, 3-5% for Debt Service Fund, 25% (3 months expenses) for the Water and Sewer Fund, $250,000 for the Solid Waste Fund and 17% (2 months expenses) for the Stormwater Utility Fund. Chapter 21- Capital Projects Management Policy The rapid growth of the Town has created oversized capital budgets relative to operating budgets including long-term agreements with developers for construction of infrastructure that may not be completed for many years following the agreement. From a materiality standpoint infrastructure is often the largest single item in a government’s financial statement and must be properly accounted for. The policy requires departments to furnish to finance all developer related agreements and contracts. Upon receipt, finance will analyze the contract for proper accounting treatment including the specific “triggers” that must occur before the transaction is recognized. Annual closing procedures include review of all open agreements and their status. Chapter 12-Vehicle Equipment and Replacement Fund (VERF) Creates an internal service fund of the Town for the purpose of smoothing the budget impact of large vehicle and equipment purchases. This approach has the advantage of avoiding debt financing allowing the Town to avoid deferring maintenance during times of economic downturn and tight budgets. Key provisions include: 1)All equipment and vehicle are owned by the VERF. 2)Using departments are charged a monthly fee that is accumulated towards replacement. 3)All items replaced are surrendered by the department with disposal proceeds retained by VERF. 4)New items due to new programs or positions must be included as part of the annual budget process and then are donated to VERF. 5)VERF cash balances should approximately equal (defined as +/- 10%) accumulated depreciation in the fund. Chapter 15- Debt Management Describes the type of debt issuance available to the Town and the circumstances in which each type of debt may be used. Preference is given to alternate financing means such as PAYGO programs or capital grants. When debt issuance is necessary, preference is given to voter-approved governmental debt vs. non-voter approved debt. For capital assets for enterprise activities, the intent is to pay all debt service from the revenues of the enterprise operation. Debt issuance should be limited to the acquisition or construction of long-lived capital assets and never be issued to fund current operations. The maximum final maturity for governmental fund and enterprise fund debt is 20 and 30 years respectively. Introduction Page 19 3 For general obligation governmental debt, the debt service tax levy should never exceed 40% of the total tax levy. Total tax supported debt should also not exceed 4% of taxable assessed valuation. It is the Town’s intent that enterprise fund debt service be paid from the revenues generated from the enterprise activities. If Revenue Bonds are issued, the Town will maintain a coverage ratio of at least 1.25% of net operating revenue available for debt service to maximum annual debt service. Chapter 16-Debt Post Issuance Policy Details the process following debt issuance including tax certificates, Attorney General filing, SEC Continuing Disclosure (15C2-12), recordkeeping, use of proceeds and Arbitrage Rebate and Yield calculations. Compliance Staff has made every effort to comply with these policies in their entirety and it is our belief that the budget meets or exceeds all legal and policy requirements except for the Solid Waste Fund. The reserve requirement of $250,000 will comply by the fiscal year 2026-2027. This fund was created in the fiscal year 2022-2023 and requires a few years to accumulate the reserve required by policy. Introduction Page 20 Town of Prosper Annual Budget Calendar Budget Calendar Actions Planning January - March Department’s Budget April - May May 2 - Town staff completes revenue and expenditure projections through the end of the current fiscal year; prepares discretionary and non-discretionary budget requests and related forms. May 9 - Begin compilation and discussions with Department Heads. Town Manager’s Budget June - July June 24 - Strategic Planning/Budget Work Session with Town Council and Department Heads. July 25 - Chief Appraiser certifies appraisal rolls for taxing units. July 25 - Certification of anticipated collection rate by collector Town Council’s Budget August - September August 8 - Calculation of no-new-revenue and voter-approval tax rates. 72-hour notice for meeting (Open Meetings Notice). August 12 - Town Council meeting to discuss tax rate; if proposed tax rate will exceed the no-new-revenue tax rate or the voter-approval tax rate (whichever is lower), take record vote and schedule Public Hearings. Town Manager presents proposed budget for FY 2024-2025. Proposed budget must be posted on website from this date until adopted. August 21 - Finance Committee reviews Proposed Budget. August 22 - 72-hour notice for Budget Town Hall (Open Meetings Notice). August 28 - Budget Town Hall September 3 - “Notice of FY 2024-2025 Budget Public Hearing” notice in newspaper and on Town website published at least seven days before the Public Hearing. September 10 - 72-Hour notice for Public Hearing at which governing body will adopt tax rate (Open Meetings Notice). September 16 - Town Council meeting to consider passing ordinances adopting the FY 2024-2025 budget and tax rate. Public Hearing for Tax Rate. Budget must be adopted before the tax rate, and both must be record votes. Taxing unit must adopt tax rate before September 30 or 60 days after receiving certified ap- praisal roll, whichever is later. September 17 - Final approved budget to be filed with Town Secretary. Submit ordinances to Collin and Denton County Tax Offices. Tax Assessor/Collector and Appraisal District notified of current year tax rates. October 1 - New fiscal year begins and taxes are billed by the Assessor/Collector. Introduction Page 21 Basis of Accounting/Budgeting  The budgetary and accounting policies contained in the budget document conform to generally accepted  accounting principles (GAAP) as established by the Governmental Accounting Standards Board (GASB).  The accounts of the Town are organized on the basis of funds and account groups, each of which is  considered a separate budgetary and accounting entity. Within the budget, the Town's various funds are  grouped into the following categories of fund types:  Governmental Fund Types ‐ Include the General Fund, Debt Service Fund, Capital Project  Funds, and Special Revenue Funds. The budget is organized and operated on a modified accrual  basis of accounting. A financial measurement focus is utilized here as well. Under the modified  accrual  basis  of  accounting,  revenues  are  recorded  when  susceptible  to  accrual  (i.e.,  both  measurable  and  available).  Available  revenues  collected  within the  current  period  or  soon  thereafter are used to pay liabilities of the current period.  Expenditures represent a decrease in  net financial resources, and other than interest on general long‐term debt, are recorded when  the fund liability is incurred, if measurable. Interest on general long‐term debt is recorded when  due.   Proprietary Fund Types – Include the Enterprise Funds and Internal Service Funds. These are  accounted and budgeted for on a cost of services or “capital maintenance” measurement focus,  using  the  accrual  basis  of  accounting.  Under  the  accrual  basis of  accounting,  revenues  are  recognized when earned and expenses are recognized when incurred. For purposes of this budget  presentation, depreciation is not displayed and capital expenditures and bond principal payments  are shown as utilized by each fund.   Governmental Fund Types  Government Fund types are those through which most governmental functions of the Town are financed.  The acquisition, use, and balances of the Town’s expendable financial resources and the related liabilities  (except those accounted for in the Proprietary and Fiduciary Fund types) are accounted for through the  Governmental Fund Types.   General Fund – The General Fund is the general operating fund of the Town. It is used to account  for all revenues and expenditures except for those required to be accounted for in other funds.  Major functions financed by the General Fund include: Administration, Public Safety, Community  Services, Financial Services, HR, IT, Library, Building and Planning, and Parks and Recreation.   Special Revenue Funds – Special Revenue Funds are used to account for the proceeds of  specific revenue sources other than expendable trusts or major capital projects. The Special  Revenue Funds include, but are not limited to, TIRZ #1; TIRZ #2; Crime Control and Prevention  Special Purpose District; Fire Control, Prevention and Emergency Medical Services Special Purpose  District; Park Dedication/Improvement Fund; Impact Fee Funds; and Special Revenue Fund.   Debt Service Fund – The Debt Service Fund is used to account for the accumulation of resources  for, and the payment of, general long‐term debt principal, interest, and related costs.   Introduction Page 22 Capital Projects Funds – The Capital Projects Funds are used to account for financial resources  to be used for the acquisition or construction of major capital items or facilities.    Proprietary Fund Types  Enterprise Funds are used to account for operations that are either financed or operated in a manner  similar  to  private  business  enterprises,  or  where  the  governing  body  has  decided  that  periodic  determination of revenues earned, expenses incurred, and/or net income is appropriate for capital  maintenance, public policy, management, control, accountability, or other purposes.   Utility Fund – This fund accounts for water and wastewater services  for the residents of the  Town. All activities necessary to provide such services are accounted for in  the  fund,  including  administration,  operation,  maintenance,  financing  and  related  debt  service, and billing and  collection.  Solid Waste Fund – This fund accounts for solid waste collection services for the residents of the Town. All activities necessary to provide such services are accounted for in the fund, including administration, operation, maintenance, and billing and collection. Stormwater Utility Fund – This fund accounts for the costs associated with the implementation and  ongoing  administration  of  stormwater  and  drainage  management  needs  of  the  Town.  All  activities  necessary  to  provide  such  services  are  accounted  for  in  the  fund,  including administration,  operation  maintenance,  financing  and  related  debt  service,  and  billing  and  collection.  Internal  Service  Funds  – The  Internal  Service  Funds  include  the  Health  Insurance  Trust  Fund  that  accounts  for  the  Town’s  self‐insurance  activities,  and  the  Town’s  Vehicle  and  Equipment  Replacement Fund which accounts for vehicle and equipment replacements.   Introduction Page 23 Fund Overview Non ‐ Major Funds Major Funds Town of  Prosper Funds Governmental  Funds General Fund Impact Fee  Funds Debt Service  Fund Capital Projects  Fund Special  Revenue Funds Court  Technology  Fund Court Security  Fund Escrow Fund Park Dedication  Fund Park  Improvement  Fund Contributions  Fund TIRZ #1 Fund TIRZ #2 Fund Crime Control and  Prevention Special  Purpose District Fund Fire Control, Prevention,  and Emergency Medical  Services Special Purpose  District Fund Proprietary  Funds Enterprise  Funds Water/Sewer  Fund Storm Drainage  Fund Internal Service  Funds Vehicle and  Equipment  Replacement Fund Health Insurance  Trust Fund Solid Waste Fund Introduction Page 24 ACTUAL 2023-2024 ADOPTED AMENDED 2024-2025 ADOPTED 2025-2026 ESTIMATED RESOURCES REVENUES: Taxes 57,467,324 64,425,928 71,849,899 Inter-governmental 239,848 14,848 1,799,663 License, Fees & Permits 12,287,884 13,491,653 15,376,821 Charges for Services 44,963,598 50,601,695 62,833,765 Fines & Warrants 651,123 545,050 783,144 Investment Income 4,885,284 2,837,833 2,253,350 Miscellaneous Revenue 2,678,720 3,129,075 1,784,629 Impact Fees 13,674,019 12,006,476 11,750,000 Subtotal-Revenues 136,847,800$ 147,052,558$ 168,431,271$ OTHER RESOURCES: Transfers In 4,640,467 1,478,696 11,099,929 141,488,266$ 148,531,254$ 179,531,200 ESTIMATED USES Direct Expenditures by Function: General Government/Central Services 17,818,895 23,724,127 26,113,344 Public Safety 27,346,963 28,149,965 37,295,335 Community Services 7,482,892 10,454,471 9,346,688 Streets & Highways 3,504,624 4,775,945 4,292,139 Development Services 3,286,655 4,182,379 4,083,700 Utility Services 31,731,809 32,054,272 39,710,404 Engineering 2,657,992 2,541,854 2,708,971 Debt Service 21,468,543 23,759,352 28,135,730 Economic Infrastructure Development 4,270,105 6,198,660 5,965,387 Impact Fee Infrastructure Development 10,508,090 7,981,536 2,150,000 Subtotal-Expenditures 130,076,566$ 143,822,561$ 159,801,698$ Transfers Out 8,563,865 12,005,734 15,854,036 138,640,431$ 155,828,295$ 175,655,734$ EXCESS (DEFICIENCY)2,847,836$ (7,297,041)$ 3,875,466$ BEGINNING FUND BALANCE 69,026,803$ 65,201,826$ 56,475,293$ EXCESS (DEFICIENCY)2,847,836$ (7,297,041)$ 3,875,466$ ENDING FUND BALANCE 71,874,638$ 57,904,784$ 60,350,759$ TOTAL ESTIMATED RESOURCES: TOTAL ESTIMATED USES: CONSOLIDATED FUND SUMMARY BY YEAR Introduction Page 25 GENERAL FUND DEBT SERVICE FUND IMPACT FEE FUNDS UTILITY FUNDS ESTIMATED RESOURCES REVENUES: Taxes 39,476,143 20,799,204 - - Inter-governmental 1,796,663 - - - License, Fees & Permits 12,533,821 - - 193,000 Charges for Services 2,278,693 - - 51,756,363 Fines & Warrants 581,144 - - 202,000 Investment Income 750,000 145,000 600,000 361,500 Miscellaneous Revenue 434,171 - 300,000 524,565 Impact Fees - - 10,950,000 - Subtotal-Revenues 57,850,635$ 20,944,204$ 11,850,000$ 53,037,428$ OTHER RESOURCES: Transfers In 10,389,929 - - - 68,240,564$ 20,944,204$ 11,850,000$ 53,037,428$ ESTIMATED USES Direct Expenditures by Function: General Government/Central Services 13,397,308 - - 1,043,323 Public Safety 33,670,216 - - - Community Services 9,346,688 - - - Streets & Highways 4,292,139 - - - Development Services 4,083,700 - - - Utility Services - - - 39,710,404 Engineering 2,708,971 - - - Debt Service - 21,165,328 - 6,970,402 Economic Infrastructure Development - -- - Impact Fee Infrastructure Development - -- - Subtotal-Expenditures 67,499,022$ 21,165,328$ -$ 47,724,129$ Transfers Out 710,000 - 12,268,378 2,025,658 68,209,022$ 21,165,328$ 12,268,378$ 49,749,787$ EXCESS (DEFICIENCY)31,542$ (221,124)$ (418,378)$ 3,287,641$ BEGINNING FUND BALANCE 11,792,309$ 838,442$ 16,225,148$ 15,857,601$ EXCESS (DEFICIENCY)31,542$ (221,124)$ (418,378)$ 3,287,641$ ENDING FUND BALANCE 11,823,851$ 617,318$ 15,806,770$ 19,145,242$ TOTAL ESTIMATED RESOURCES: TOTAL ESTIMATED USES: CONSOLIDATED FUND SUMMARY FISCAL YEAR 2025-2026 Introduction Page 26 SPECIAL REVENUE FUNDS INTERNAL SERVICE FUNDS COMBINED FUNDS ESTIMATED RESOURCES REVENUES: Taxes 11,574,552 -71,849,899 Inter-governmental 3,000 -1,799,663 License, Fees & Permits 2,650,000 -15,376,821 Charges for Services - 8,798,709 62,833,765 Fines & Warrants - -783,144 Investment Income 126,850 270,000 2,253,350 Miscellaneous Revenue 75,893 450,000 1,784,629 Impact Fees 800,000 -11,750,000 Subtotal-Revenues $ 15,230,295 9,518,709$ 168,431,271$ OTHER RESOURCES: Transfers In - 710,000 11,099,929 15,230,295$ 10,228,709$ 179,531,200$ ESTIMATED USES Direct Expenditures by Function: General Government/Central Services 28,060 11,644,653 26,113,344 Public Safety 3,625,119 - 37,295,335 Community Services - - 9,346,688 Streets & Highways - - 4,292,139 Development Services - - 4,083,700 Utility Services - - 39,710,404 Engineering - - 2,708,971 Debt Service - - 28,135,730 Economic Infrastructure Development 5,965,387 - 5,965,387 Impact Fee Infrastructure Development 2,150,000 - 2,150,000 Subtotal-Expenditures 11,768,566$ 11,644,653$ 159,801,698$ Transfers Out 850,000 - 15,854,036 12,618,566$ 11,644,653$ 175,655,734$ EXCESS (DEFICIENCY)2,611,729$ (1,415,944)$ 3,875,466$ BEGINNING FUND BALANCE 5,969,906$ 5,791,887$ 56,475,293$ EXCESS (DEFICIENCY)2,611,729$ (1,415,944)$ 3,875,466$ ENDING FUND BALANCE 8,581,635$ 4,375,943$ 60,350,759$ TOTAL ESTIMATED RESOURCES: TOTAL ESTIMATED USES: FISCAL YEAR 2025-2026 CONSOLIDATED FUND SUMMARY Introduction Page 27 Strategic Visioning Process The Town Council conducted a Strategic Visioning exercise in spring of 2023 to identify a set of long-term strategic objectives that could be accomplished in a five to ten-year planning horizon, as the Town approaches build-out. The exercise yielded five Strategic Visioning Priorities. These five priorities form the basis of the Town’s operations, budget priorities, and work plan. Introduction Page 28 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. 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 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. Prioritize infrastructure to meet demand, using incentives when appropriate. ENSURE THE TOWN’S COMMERCIAL CORRIDORS ARE READY FOR 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. 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. 1 2 3 ACCELERATION OF INFRASTRUCTURE DEVELOPMENT OF DOWNTOWN PROSPER AS A DESTINATION 4 2024 TOWN COUNCIL STRATEGIC VISIONING SUMMARY APPROVED BY THE TOWN COUNCIL ON MAY 28, 2024 WORK TOWARDS A GROWING AND DIVERSIFIED TAX BASE5 Introduction Page 29 Citizens Mayor and Town Council Town Manager Fire Chief Fire Marshal Fire Operations Police Chief Police Operations Lieutenant (Investigations) Lieutenant (Support Services) 911 Comm Unit Division Assistant Town Manager Engineering Engineering Division Stormwater Construction Inspections Public Works Streets Water Wastewater Traffic Facilities Management Development Services Building Inspections Health & Code Compliance Planning Executive Director Town Secretary Communications Parks & Recreation Park Administration Parks Operations Recreation Special Events Library Deputy Town Manager Finance Municipal Court Utility Customer Service Human Resources Information Technology Municipal Court Judge Town Attorney Boards and Commissions ORGANIZATIONAL CHART Introduction Page 30 GENERAL FUND ACTUAL 2023-2024 ADOPTED 2024-2025 REVISED 2024-2025 CHANGES 2025-2026 ADOPTED 2025-2026 Town Manager 2.00 5.00 5.00 -5.00 Town Secretary 3.00 3.00 3.00 -3.00 Finance 11.50 12.50 12.50 (0.50)12.00 Human Resources 4.75 4.75 4.75 -4.75 Information Technology 11.50 11.50 11.50 0.50 12.00 Communications & Community Engagement 5.50 5.00 5.00 -5.00 Municipal Court 3.50 4.50 4.50 -4.50 Police Operations 41.00 46.00 46.00 36.00 82.00 9-1-1 Communications 17.00 17.00 17.00 -17.00 Fire Operations 50.00 44.00 44.00 41.00 85.00 Fire Marshal 4.00 5.00 5.00 -5.00 Inspections 20.00 20.00 20.00 -20.00 Code Compliance 5.00 5.00 5.00 -5.00 Planning 7.00 7.00 7.00 -7.00 Streets 11.00 13.00 13.00 2.00 15.00 Facilities 4.00 5.00 5.00 -5.00 Parks 41.00 43.00 43.00 2.00 45.00 Library 9.50 10.00 10.00 1.00 11.00 Engineering 16.50 16.50 16.50 -16.50 Total General Fund 267.75 277.75 277.75 82.00 359.75 Crime Control 27.00 30.00 30.00 (30.00)- Fire Control 26.00 32.00 32.00 (32.00)- Water & Wastewater 62.00 65.00 65.00 2.00 67.00 Solid Waste 1.00 1.00 1.00 -1.00 Stormwater Drainage 4.00 5.00 5.00 1.00 6.00 Total Town of Prosper Employees, All Funds 387.75 410.75 410.75 23.00 433.75 All positions are shown as full-time equivalents. (FTE) Revised 2024-2025 No positions were moved between departments Adopted 2025-2026 Fire - Transfer 32 FTE from Fire Control to General Fund; Add 9.0 FTE Firefigheter/Paramedic Streets - Transfer 1.0 FTE Fleet Coordinator from Finance; Add 1.0 FTE Traffic Signal Technician Library - Add 1.0 FTE, Circulation Supervisor Stormwater Drainage - Add 1.0 FTE Heavy Equipment Operator Finance - Transfer Fleet Coordinator 1.0 FTE from Finance to Streets; Transfer Admin. Assistant 0.5 FTE from Finance to Information Technology; Add Financial Services Specialist 1.0 FTE Parks - Add 1.0 FTE, Irrigation Technician; Add 1.0 FTE, Chemical Technician Staffing Summary Water & Wastewater - Add 1.0 FTE Water System Technicians/SCADA; Add 1.0 FTE Utility Compliance Superintendent Police - Transfer 30 FTE from Crime Control to General Fund; Add 4.0 FTE Police Officers; Add 1.0 FTE MVCPA Sworn position; Add 1.0 FTE Crime Analyst Introduction Page 31 Combined Graphs Taxes $71,849,899 Inter-governmental $1,799,663 License, Fees & Permits $15,376,821 Charges for Services $62,833,765 Fines & Warrants $783,144 Investment Income $2,253,350 Miscellaneous $1,784,629 Impact Fees $11,750,000 All Funds Revenues by Type General Government $26,113,344 Public Safety $37,295,335 Community Services $9,346,688 Streets & Highways $4,292,139 Development Services $4,083,700 Utility Services $39,710,404 Engineering $2,708,971 Debt Service $28,135,730 Economic Infrastructure Development $5,965,387 Impact Fee Infrastructure Development $2,150,000 All Funds Expenditures by Type Introduction Page 32 Fiscal Year M&O Funds I&S Fund Total M&O Percentage I&S Percentage 2020-21 0.367500 0.152500 0.520000 71%29% 2021-22 0.328000 0.182000 0.510000 64%36% 2022-23 0.329830 0.180170 0.510000 65%35% 2023-24 0.332742 0.177258 0.510000 65%35% 2024-25 0.324608 0.180392 0.505000 64%36% 2025-26 0.322054 0.182946 0.505000 64%36% Property Tax Rate Distribution M & O and I & S Funds 0.0 0.1 0.2 0.3 0.4 0.5 0.6 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 Tax RateFiscal YearTax Rate Distribution M&O Funds I&S Fund Introduction Page 33 Times Adopted Tax Rate (Per $100) 0.505 Certified Taxable Value (excluding freeze values) Increased 12.3% New Construction Totaled $758,780,238 Ad Valorem Taxes Total Freeze Adjusted Taxable Value $ 10,806,491,907 One Penny on the Tax Rate $1,080,649 Times Anticipated Tax Collections 100% Plus Actual Tax on Freeze $4,140,847 Property Valuations & Ad Valorem Taxes General and I & S Funds TOTAL TAX LEVY $58,713,631 2,546,144 3,114,007 3,666,923 4,209,0674,601,196 5,437,211 6,616,008 8,335,297 9,622,102 10,806,492 $- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025Thousands Tax Year Certified Assessed Valuation Source: Collin CAD and Denton CAD Certified Totals Tax Years 2016-2025 Introduction Page 34 Market value: Real property: Land 5,654,778,748$ Improvements 10,348,339,370 Business personal property 425,824,381 16,428,942,499 Less property exemptions: Type Homestead Exemption (1,580,579,741) Over 65 (16,524,800) Disabled (225,000) Disabled veterans (227,210,929) Totally exempt (1,570,653,716) Productivity Loss (1,104,564,816) Freeport (703,499) Leased vehicles (57,717,943) HS capped value (603,821,663) Non-HS capped value (44,871,243) Other exemptions (994,563) (5,207,867,913) Certified Assesed Valuation 11,221,074,586 Property Under Protest 637,303,877 Freeze Market Value (1,051,886,556) Net Taxable Value 10,806,491,907 Total Estimated Taxable Value 10,806,491,907 Rate per $100.00 0.505000 Total Tax Levy 54,572,784 Estimated Percent Collection 100% Estimated Current Tax Collection 54,572,784 Estimated Freeze Tax Collection 4,140,847 Estimated Total Tax Collection 58,713,631 Fund Percent Rate Amount Debt Service 36.23%0.182946 19,770,045 General Fund 41.73%0.210713 22,770,696 TIRZ 2.80%0.014141 1,528,133 Capital Dedicated 19.25%0.097200 10,503,910 TOTAL 100%0.505000 54,572,784 Debt Service Freeze 1,924,384 General Fund Freeze 2,216,463 TOTAL FREEZE 4,140,847 Tax Levy Analysis Introduction Page 35 FISCAL YEAR CERTIFIED ASSESSED VALUE EST. VALUE PROTESTED PROPERTY FREEZE MARKET VALUE TOTAL % CHANGE IN VALUE TAX RATE TAX REDUCTION 2016 2,251,503,609 51,445,331 (173,637,822) 2,129,311,118 21.45%0.52$ -$ 2017 2,647,375,470 95,133,943 (196,365,692) 2,546,143,721 19.58%0.52$ -$ 2018 3,310,573,869 37,521,811 (234,088,457) 3,114,007,223 22.30%0.52$ -$ 2019 3,875,459,512 67,288,252 (275,824,991) 3,666,922,773 17.76%0.52$ -$ 2020 4,345,431,730 198,730,513 (335,094,744) 4,209,067,499 14.78%0.52$ -$ 2021 4,631,235,138 272,443,697 (302,482,534) 4,601,196,301 9.32%0.52$ -$ 2022 5,829,301,102 97,937,130 (490,027,668) 5,437,210,564 18.17%0.51$ (0.01)$ 2023 6,966,662,893 227,376,068 (578,031,097) 6,616,007,864 21.68%0.51$ -$ 2024 8,762,965,980 266,856,267 (694,525,568) 8,335,296,679 25.99%0.51$ -$ 2025 10,207,870,571 256,534,035 (842,303,011) 9,622,101,595 15.44%0.505$ (0.005)$ 2026 11,221,074,586 637,303,877 (1,051,886,556) 10,806,491,907 12.31%0.505$ -$ Analysis of Assessed Valuation $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026MillionsAnalysis of Assessed Valuation CERTIFIED ASSESSED VALUE EST. VALUE PROTESTED PROPERTY Introduction Page 36 FY 25 to FY 26 % Total % of Total Total % of Total Total % of Total Change Change REAL: RESIDENTIAL SINGLE FAMILY, MOBILE HOMES 2,252,964,757$ 62.14%7,273,419,436$ 75.59%8,536,895,138$ 79.00%1,263,475,702$ 17.37% REAL: COMMERCIAL, INDUSTRIAL AND OTHER 1,303,002,596$ 35.94%2,092,674,698$ 21.75%1,991,160,837$ 18.43%(101,513,861)$ -4.85% BPP: COMMERCIAL AND INDUSTRIAL 69,951,283$ 1.93%256,007,461$ 2.66%278,435,932$ 2.58%22,428,471$ 8.76% GRAND TOTALS 3,625,918,636$ 100.00%9,622,101,595$ 100.00%10,806,491,907$ 100.00%1,184,390,312$ 12.31% TAX RATE 0.520000$ 0.505000$ 0.505000$ -$ 0.00% AVERAGE HOMESTEAD MARKET VALUE 445,813$ 896,891$ 916,840$ 19,949$ 2.22% AVERAGE HOMESTEAD TAXABLE VALUE 403,971$ 642,906$ 696,676$ 53,770$ 8.36% AVERAGE HOMESTEAD TAX BILL 2,101$ 3,247$ 3,518$ 272$ 8.36% TAX BILL PER $100,000 MARKET VALUE OF HOMESTEAD 520$ 417$ 417$ -$ 0.00% Generally, the higher the percentage of commercial and business personal property (BPP) in a government's tax base, the lower the property tax rate. This is due to residents requiring a higher level of service than their property tax typically provides. Tracking changes in tax values by type over time also shows shifts in tax burdens between categories of taxpayers. Taxable Values by Type FY2025FY2016 FY2026 Introduction Page 37 Source: The Texas State Comptrollers Website The Town's three major categories (Retail trade, General Services,and Food) make up approximately 79% of the Town's sales tax collections. Sales taxes contribute approximately 25.1% of General Fund revenues and are the second largest source of revenue for the General Fund budget.The Town examines the market conditions in Prosper and the Metroplex in budgeting sales tax conservatively year to year. Notes:The Town held an election May,2018 to create two Special Purpose Districts for Crime and Fire that are supported by a quarter of a percent of sales tax collected in the Town.The initial approval was for five years.In May of 2023, voters approved a twenty year extention on the Special Purpose Districts. Sales Taxes General, Special Purpose Districts, and EDC Funds $5,071 $6,849 5,374 6,618 8,902 10,343 11,077 12,904 13,605 $14,588 2,606 3,229 4,376 5,094 5,494 6,033 6,440 $6,887 $1,755 $2,283 $2,687 $3,309 $4,451 $5,171 $5,538 $6,122 $6,800 $6,352 $- $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 ThousandsEDC Sales Tax SPDs Sales Tax Town Sales Tax & TIRZ Introduction Page 38 Impact Fee Revenues Impact Fee Funds Texas Local Government Code Chapter 395 requires an impact fee analysis before impact fees are set. Chapter 395 requires that land use assumptions and capital improvement plans be updated at least every five years, and the Town of Prosper last completed an impact fee analysis in 2017.In 2023,the Town began an updated Impact Fee Study and the analysis is currently being performed. During FY 2016- 2017, Council adopted land use assumptions and a capital improvements plan establishing impact fees for water, wastewater, and roadways by amending Article,10.02 "Capital Improvements and Impact Town of Prosper's Code of Ordinances, Section 10.02.001 purpose of impact fees is to assure the provision of adequate public facilities to serve new development in the Town by requiring each such development to pay its share of the costs of such improvements by and attributable to such new development. The budget reflects a conservative revenue forecast for impact fees based on growth that is taking place, but not at the rate reflected in previous years. $13,674,019 $12,006,476 $11,750,000 $10,500,000 $11,000,000 $11,500,000 $12,000,000 $12,500,000 $13,000,000 $13,500,000 $14,000,000 2023-2024 Actual 2024-2025 Amended 2025-2026 Adopted Introduction Page 39 Consumption % of Total Customer Type of Business (gallons)Usage Windsong Ranch Community Assoc.Homeowners Association 38,845,509 1.43% Gates of Prosper Shopping Center 22,025,100 0.81% Prosper Independent School District School District 21,820,450 0.80% Town of Prosper Government 15,559,300 0.57% SiteOne Landscape Supply Multi-Family Housing 14,217,500 0.52% Super Splash LLC Car Wash 11,973,600 0.44% Gentle Creek Homeowners Assoc.Homeowners Association 11,170,790 0.41% Cook Children's Hospital Medical 9,220,740 0.34% Lattimore Materials Ready-Mix Concrete Mfg 7,952,030 0.29% Ladera Prosper Condos Multi-Family Housing 7,839,700 0.29% Water and Wastewater Revenues Water & Sewer Fund The Council has approved increases in water and wastewater rates starting in Fiscal Year 2024-2025, marking the first rise for Town customers since 2020. Water rates for Fiscal Year 2024-2025 are projected to go up by 6.35%, even as water costs have surged by 13.8%. Wastewater rates are expected to increase by 16%to address an 11.8%rise in treatment costs and to expand wastewater treatment capacity by an additional three million gallons per day,which is essential for supporting the Town’s projected growth.Town staff,in collaboration with a professional rate consultant, review these rates annually. The Town is also investing in water system technology and a meter replacement program to better manage costs and will continue monitoring rates to maintain adequate fund balance reserves. Ten Largest Water Customers 24,478,951 27,821,398 31,507,624 13,568,257 18,074,593 21,770,494 $- $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 2024-2025 Amended 2025-2026 Adopted Budget 2026-2027 Planning Year Water Wastewater Introduction Page 40 GENERAL FUND General Fund Description The General Fund is the operating fund of the Town. The General Fund receives and accounts for all general tax revenues and other receipts that are not restricted by law or contractual agreement to some other designated fund. The General Fund includes a greater variety and amount of revenues, and finances a wider range of governmental activities than any other fund. The primary revenue sources for the General Fund are property taxes, sales taxes, franchise fees, license and permit fees, fines and warrants, and miscellaneous general revenues. The General Fund accounts for general purpose expenditures for most government functions. Operations in the General Fund provide basic services such as Administration, Police Services, Fire Services, Public Works, Community Services, Development Services, and Engineering. Included for each operational area is an organizational chart, program description, goals and objectives, personnel summary, and an expenditure summary.  General Fund Page 1 Fiscal Year Days Over Minimum Reserve Value of Each Day 2020-2021 121 95,839$ 2021-2022 67 120,830$ 2022-2023 38 150,837$ 2023-2024 3 138,237$ 2024-2025 7 142,242$ 2025-2026 0 179,606$ General Fund Fund Balance The Town Charter proposes a legal restriction on a Contingent Reserve of the General Fund in the amount of twenty percent (20%).It is the goal of the Town to achieve and maintain an unassigned fund balance in the General Fund equal to five percent (5%) of budgeted expenditures for unanticipated expenditures, unforeseen revenue fluctuations, or other adverse circumstances. This percent was revised to one percent (1%) for FY 2022-2023 and future years. This amount is in addition to the twenty percent (20%) restricted fund balance amount required by the Town Charter.In FY 2021-2022, Council approved one-time capital expenditures by utilizing a strong unrestricted fund balance. This helped fund roads and equipment versus issuing debt, while still maintaining the required reserves per charter and policy. $- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 $16,000,000 $18,000,000 $20,000,000 2021-2022 Actual 2022-2023 Actual 2023-2024 Actual 2024-2025 Budget 2024-2025 Amended 2025-2026 Adopted Unrestricted Contingency per Charter 5% Reserve 1% Reserve Over Minimum Reserve General Fund Page 2 Revenue Category FY 2026 Adopted % of Total Property Tax 26,277,088 38.5% Sales Tax 13,199,055 19.3% Franchise Fees 4,685,174 6.9% License, Fees & Permits 7,834,247 11.5% Charges for Services 1,577,152 2.3% Fines & Warrants 581,144 0.9% Grants 1,796,663 2.6% Investment Income 750,000 1.1% Transfers In 2,025,658 2.9% Miscellaneous 332,071 0.5% Park Fees 818,041 1.2% Transfer In from SPD 6,885,055 10.1% Transfer In from CIP 1,479,216 2.2% Revenue Total $68,240,564 100.0% Other $818,041 General Fund Revenues By Source 38.5% Property Tax 19.3% Sales Tax 6.9% Franchise Fees 11.5% License, Fees & Permits 2.3% Charges for Services 0.9% Fines & Warrants 2.6% Grants 1.1% Investment Income 2.9% Transfers In 0.5% Miscellaneous 1.2% Park Fees Transfer In from SPD 10% Transfer In from CIP 2% General Fund Page 3 Department FY 2026 Adopted % of Total Administration 12,887,072 18.9% Police Services 17,724,406 26.0% Fire Services 15,945,810 23.4% Public Works 5,512,375 8.1% Community Services 9,346,688 13.7% Development Services 4,083,700 6.0% Engineering 2,708,971 4.0% Expense Total $68,209,022 100.0% General Fund Appropriations By Department FY 2026 Adopted - $68,209,022 FY 2025 Amended - $52,825,545 Administration 18.9% Police Services 26.0% Fire Services 23.4% Public Works 8.1% Community Services 13.7% Development Services 6.0% Engineering 4.0% Administration 22.6% Police Services 20.9% Fire Services 19.3% Public Works 9.0% Community Services 15.4% Development Services 7.9% Engineering 4.8% General Fund Page 4 FUND ACCOUNT TYPE ACTUAL 2023-2024 ORIGINAL 2024-2025 PROPOSED AMENDED 2024-2025 ADOPTED BUDGET 2025-2026 PLANNING YEAR 2026-2027 PLANNING YEAR 2027-2028 PLANNING YEAR 2028-2029 PLANNING YEAR 2029-2030 RECURRING REVENUES Property Tax 20,579,403 23,332,018 23,370,581 26,277,088 28,724,723 31,239,489 33,711,953 35,856,445 Sales Tax 11,251,905 12,903,535 12,308,897 13,199,055 13,596,893 14,277,251 14,991,758 15,742,134 Franchise Fees 3,623,599 3,334,932 3,614,869 4,685,174 4,843,880 5,016,580 5,206,544 5,385,485 License, Fees & Permits 6,304,399 5,990,720 6,020,241 7,834,247 7,868,245 7,903,264 7,939,332 7,973,753 Charges for Services 1,558,705 1,342,524 1,608,835 1,577,152 1,577,841 1,578,547 1,579,209 1,579,209 Fines & Warrants 422,745 352,050 545,050 581,144 581,144 581,144 581,144 581,144 Investment Income 991,413 950,000 800,000 750,000 750,000 750,000 750,000 750,000 Transfers In 1,297,102 1,478,696 1,478,696 2,025,658 2,025,658 2,025,658 2,025,658 2,025,658 Miscellaneous 905,691 747,183 839,860 329,071 279,071 279,071 279,071 279,071 Park Fees 859,583 761,300 789,038 818,041 818,041 818,041 728,041 728,041 Transfer In from SPD - - - 6,885,055 7,098,148 7,453,145 7,825,892 8,217,277 Transfer In from CIP - - - 1,479,216 1,479,216 1,479,216 1,479,216 1,479,216 TOTAL RECURRING REVENUES 47,794,545$ 51,192,958$ 51,376,067$ 66,440,901$ 68,163,644$ 71,922,190$ 75,618,602$ 79,118,217$ RECURRING EXPENDITURES Administration 10,311,244 10,506,487 11,514,189 12,131,498 12,825,794 13,076,491 13,339,392 13,583,640 Police Services 9,440,359 10,779,230 10,638,811 12,258,606 12,831,405 13,069,458 13,315,706 13,542,006 Police SPD Personnel - - - 3,364,036 3,532,238 3,708,850 3,894,292 4,089,007 Fire Services 10,282,824 10,236,399 10,051,593 12,424,504 12,780,293 12,994,075 13,119,067 13,338,444 Fire SPD Personnel - - - 3,397,819 3,567,710 3,746,095 3,933,400 4,130,070 Public Works 4,475,308 4,994,174 4,661,243 5,497,866 5,606,156 5,678,496 5,752,012 5,827,787 Community Services 7,327,870 8,003,896 7,962,680 8,822,050 9,075,194 9,223,420 9,084,820 9,246,369 Development Services 3,286,655 3,795,129 3,857,537 4,072,427 4,184,942 4,290,069 4,398,284 4,512,392 Engineering 2,657,992 2,552,112 2,521,168 2,689,307 2,773,118 2,852,381 2,934,020 3,018,110 New Police Positions - - - - 898,600 905,480 1,183,613 1,124,793 New Fire Positions - - - - 470,375 700,894 146,555 1,108,245 All other Town Departments New Positions - - - - 938,176 939,182 1,195,287 793,119 TOTAL RECURRING EXPENDITURES 47,782,252$ 50,867,427$ 51,207,221$ 64,658,113$ 69,484,001$ 71,184,891$ 72,296,448$ 74,313,982$ NET RECURRING FUNDS 12,293$ 325,531$ 168,846$ 1,782,788$ (1,320,357)$ 737,299$ 3,322,154$ 4,804,235$ NON-RECURRING "ONE-TIME" REVENUES Grants 14,848 14,848 1,796,663 - - - - Miscellaneous - - 3,000 - - - - TOTAL NON-RECURRING "ONE-TIME" REVENUES -$ 14,848$ 14,848$ 1,799,663$ -$ -$ -$ -$ NON-RECURRING "ONE-TIME" EXPENDITURES One-Time Expenditures*1,983,223 1,952,201 1,618,324 3,550,909 1,700,000 1,700,000 1,700,000 1,700,000 TOTAL NON-RECURRING "ONE-TIME"EXPENDITURES 1,983,223$ 1,952,201$ 1,618,324$ 3,550,909$ 1,700,000$ 1,700,000$ 1,700,000$ 1,700,000$ NET NON-RECURRING "ONE-TIME" FUNDS (1,983,223)$ (1,937,353)$ (1,603,476)$ (1,751,246)$ (1,700,000)$ (1,700,000)$ (1,700,000)$ (1,700,000)$ NET CHANGE IN FUND BALANCE (1,970,930)$ (1,611,822)$ (1,434,630)$ 31,542$ (3,020,357)$ (962,701)$ 1,622,154$ 3,104,235$ BEGINNING FUND BALANCE 15,197,869$ 12,689,509$ 13,226,939$ 11,792,309$ 11,823,851$ 8,803,494$ 7,840,793$ 9,462,947$ ENDING FUND BALANCE 13,226,939$ 11,077,687$ 11,792,309$ 11,823,851$ 8,803,494$ 7,840,793$ 9,462,947$ 12,567,182$ BALANCE OF UNRESTRICTED FUNDS 13,226,939$ 11,077,687$ 11,792,309$ 11,823,851$ 8,803,494$ 7,840,793$ 9,462,947$ 12,567,182$ Less: Contingency per Charter 9,556,450 10,173,485 10,241,444 11,258,768 12,477,171 12,746,349 12,894,111 13,219,341 1% Reserve 477,823 508,674 512,072 562,938 623,859 637,317 644,706 660,967 AMOUNT OVER (UNDER) MINIMUM RESERVE TARGE 3,192,666$ 395,527$ 1,038,792$ 2,144$ (4,297,535)$ (5,542,875)$ (4,075,872)$ (1,313,129)$ % AMOUNT OVER MINIMUM RESERVE TARGET 0.064154237 1%2%0%-6%-8%-6%-2% AMOUNT OVER (UNDER) IN DAYS OPERATING COST 23 3 7 0 (22)(28)(20)(6) General Fund Summary General Fund Page 5 General Fund Overview General Fund Administration Town Manager's Office Town Secretary's Office Finance Human Resources Information Technology Communications Municipal Court Non- Departmental Police Services Operations 9-1-1 Communications Fire Services Operations Marshal Public Works Streets Facilities Management Community Services Park Administration Park Operations Park Recreation Library Development Services Building Inspections Code Compliance Planning Engineering Engineering Traffic Special Events General Fund Page 6 • • • • • ACTUAL 2023-2024 REVISED 2024-2025 BUDGET 2025-2026 20.9%21.5%22.5% 18.1%18.0%16.2% ACTUAL 2023-2024 REVISED 2024-2025 BUDGET 2025-2026 Certified Tax Roll - percentage change from prior year 26.0%14.3%12.3% New property value as a percentage of taxable value growth 51.7%68.3%64.1% ACTIVITY DEMAND / ACTIVITY WORKLOAD Commercial taxable value as a percentage of total taxable value Percentage change in taxable commercial property values EFFICIENCY / EFFECTIVENESS MEASURES ALIGNMENT TO TOWN COUNCIL’S VISIONING PRIORITIES AND OBJECTIVES TOWN OF PROSPER DIVISION: PROGRAM DESCRIPTION DEPARTMENT: Administration Town Manager's Office Explore innovative strategies to support a growing and diversified tax base, ensuring the Town’s long-term fiscal sustainability and continued delivery of high-quality municipal services for Prosper residents - (SVP 5) Collaborate with the Capital Improvement Subcommittee to ensure that public infrastructure is strategically planned and constructed to meet the needs of Prosper’s growing population. Leverage all available financial tools to fund critical capital projects - (SVP 1) Foster the continued growth and vibrancy of Downtown Prosper by partnering with local business owners, the Citizen Engagement Committee,and the Prosper Economic Development Corporation (EDC) to enhance its appeal as a community gathering place and visitor destination - (SVP 2) Proactively position Prosper’s main commercial corridors—U.S.Highway 380 and the Dallas North Tollway (DNT)—for high- quality development through thoughtful planning, infrastructure readiness, and strategic engagement with stakeholders - (SVP 3) Commit to being a high-performing organization by continuously improving service delivery.Foster a culture of excellence that welcomes residents, visitors,and employees, and provides the tools, resources,and support needed to achieve outstanding municipal outcomes - (SVP 4) The Town Manager’s Office oversees all community functions and services by providing leadership and direction to the Town’s various departments.The Town Manager provides administrative guidance to the Town Council and is responsible for managing all the affairs of the Town, except where otherwise specified in the Town Charter.The Town Manager and Executive Team act as key liaisons among the Town Council, residents, and staff to: •Deliver excellence in municipal services to our community •Effectively communicate and implement Town Council priorities and objectives •Foster a strong, vibrant, and sustainable future for Prosper General Fund Page 7 ACTUAL 2023-2024 REVISED 2024-2025 BUDGET 2025-2026 644,789 1,343,820 1,297,908 151,036 165,168 195,897 66 300 - 795,891 1,509,288 1,493,805 ACTUAL 2023-2024 REVISED 2024-2025 BUDGET 2025-2026 -1.00 1.00 1.00 1.00 1.00 -1.00 1.00 Management Analyst -1.00 1.00 1.00 1.00 1.00 2.00 5.00 5.00 Executive Director Town Manager TOTAL VERF Charges for Services TOTAL PERSONNEL SUMMARY Assistant Town Manager Deputy Town Manager Operations TOWN OF PROSPER DIVISION: EXPENDITURE SUMMARY Personnel DEPARTMENT: Administration Town Manager's Office Management AnalystPoliceChiefFireChiefExecutive DirectorAssistantTownManagerDeputyTown Manager Town Manager General Fund Page 8 • • • • • • • • • ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 35 57 40 25,430 26,072 26,423 576 618 725 ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 100%100%100% N/A N/A 15% 60%61%58% 100%100%100% Post meeting notices and other legally required public notices in accordance with the Open Meetings Act, the Election Code, and state law - (SVP 4) TOWN OF PROSPER DEPARTMENT:DIVISION: Administration Town Secretary PROGRAM DESCRIPTION ALIGNMENT TO TOWN COUNCIL’S VISIONING PRIORITIES AND OBJECTIVES Provide professional, timely, and courteous administrative support to the Town Council - (SVP 4) Publish legal notices to satisfy state law and inform the public through print media - (SVP 4) Meeting notices and other public notices posted on the Town bulletin board and website in accordance with Open Meetings Act Maintain official Town records in accordance with the Public Information Act and the Texas State Library guidelines for records management - (SVP 4) Continue professional development and networking opportunities through appropriate professional organizations - (SVP 4) Establish and maintain positive relationships with elected officials, Town staff, and the public - (SVP 4) Provide outstanding customer service to the public and to Town of Prosper staff - (SVP 4) ACTIVITY DEMAND / ACTIVITY WORKLOAD Create and promote the use of door hangers for High Weeds and Grass as an educational tool to increase awareness and voluntary compliance - (SVP 4) Coordinate all aspects of Town elections, including managing contracts through Collin and Denton Counties for election services - (SVP 4) Board and Commission Applications Processed Registered Voters Public Information Requests (PIRs) processed EFFICIENCY / EFFECTIVENESS MEASURES Voter turnout in Town of Prosper General/Special Election Registered voters as a percentage of population Responses to PIR’s within 10 business days The Town Secretary is responsible for providing comprehensive administrative support to the Mayor and the Town Council.Key duties include posting meeting notices in compliance with the Texas Open Meetings Act,preparing and publishing the final Town Council Meeting Packet, administering municipal elections, and responding to Public Information Requests in accordance with the Texas Public Information Act.In addition, the Town Secretary serves as the Town’s Records Management Officer,overseeing the town-wide records management program.This includes coordinating the storage and disposition of inactive records, supporting and training Town staff on records management procedures, and maintaining the Town’s historical records.The Town Secretary reports directly to the Executive Director.Support staff include a Deputy Town Secretary and an Executive Assistant,who also provides support to the Town Manager's Office,including the Deputy Town Manager and, occasionally, the Executive Director. General Fund Page 9 ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 302,248 313,674 372,458 223,765 291,533 293,310 -117 - 526,013 605,324 665,768 ACTUAL 2023-2024 REVISED 2024-2025 BUDGET 2025-2026 1.00 1.00 1.00 --1.00 1.00 1.00 1.00 1.00 1.00 - 3.00 3.00 3.00 TOTAL TOWN OF PROSPER DEPARTMENT: Administration Town Secretary EXPENDITURE SUMMARY Personnel Operations VERF Charges for Services DIVISION: Deputy Town Secretary Executive Assistant Records Management Specialist TOTAL PERSONNEL SUMMARY Town Secretary Town Secretary Deputy Town Secretary Executive Assistant General Fund Page 10 • • • ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 8,616 9,200 9,500 4,668 4,700 5,000 4,620 5,000 5,500 9,889 10,668 11,310 750 3,000 3,000 85 85 93 6,151 7,200 8,000 ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 82%100%100% 33%33%38% ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 1,346,919 1,429,967 1,479,224 1,372,289 789,034 958,998 1,250 167 - 2,720,458 2,219,168 2,438,222 DIVISION: FINANCE TOWN OF PROSPER ACTIVITY DEMAND / ACTIVITY WORKLOAD Invoices processed Accounts Payable payments processed Journal entries processed Payroll payments processed DEPARTMENT: ADMINISTRATION PROGRAM DESCRIPTION ALIGNMENT TO TOWN COUNCIL’S VISIONING PRIORITIES AND OBJECTIVES Bids/Contracts processed P-card Transactions Invoices paid within 30 days of receiving Vendors on ACH/Wire payments Purchase orders/change orders issued EXPENDITURE SUMMARY EFFICIENCY / EFFECTIVENESS MEASURES Personnel Operations VERF Charges for Services Continue to maintain our current bond credit rating, Moody's AA1 and S&P AA+. - (SVP 4) Receive the Certificate of Achievement from GFOA for the Annual Comprehensive Financial Report. – (SVP 4) Maximize use of e-procurement system. - (SVP 4) TOTAL The Finance Department is responsible for all financial management of the Town including:cash receipt, cash disbursements, procurement,payroll,deposits and investments, grant management, financial projects, budget and the issuance of the annual audited financial statements.In addition, Finance must ensure compliance with Federal and State statutes,debt covenants and grant requirements. General Fund Page 11 ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 1.00 1.00 1.00 1.00 1.00 1.00 0.50 0.50 - 1.00 1.00 1.00 1.00 1.00 - -1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 --1.00 -1.00 - 1.00 -- 1.00 1.00 1.00 --1.00 1.00 1.00 1.00 2.00 2.00 2.00 11.50 12.50 12.00 Finance DIVISION: Assistant Purchasing Manager Budget Officer & Grants Administrator Buyer DEPARTMENT: Administration PERSONNEL SUMMARY Accounting Manager Accounts Payable Specialist Purchasing Administrator Purchasing Manager Senior Accountant TOTAL TOWN OF PROSPER Finance Director Fiscal Services Specialist Fleet Coordinator Grants Administrator Payroll Administrator Administrative Assistant Assistant Finance Director Finance Director Assistant Finance Director Accounting Manager Senior Accountant (2) Accounts Payable Specialist Payroll Administrator Fiscal Services Specialist Budget Officer & Grants Administrator Purchasing Manager Purchasing Administator Buyer General Fund Page 12 • • • ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 119 68 110 62 31 38 3,330 3,422 4,107 ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 20.5%8.0%9.0% 62 67 53 65% (196)51% (200)61% (240) ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 592,641 557,705 623,882 153,167 228,306 257,201 354 434 - 746,162 786,445 881,083 Maintain a quality workforce through effective recruitment and retention efforts - (SVP 4) Support positive Town culture through delivering HR services in a timely manner which meet the needs of employees - (SVP 4) Facilitate leadership and employee development through providing educational tools, resources, and training to support employee growth - (SVP 4) ALIGNMENT TO TOWN COUNCIL’S VISIONING PRIORITIES AND OBJECTIVES Number of employees hired Terminations Applications Received Full-Time Turnover Time to hire (days) Employee participation in wellness benefits EFFICIENCY / EFFECTIVENESS MEASURES ACTIVITY DEMAND / ACTIVITY WORKLOAD EXPENDITURE SUMMARY Personnel Operations VERF Charges for Services TOTAL TOWN OF PROSPER DIVISION: Human Resources PROGRAM DESCRIPTION DEPARTMENT: Administration The Human Resources Department assists departments in hiring and managing great talent to support the goals of the Town.Specific services offered include training and development,a comprehensive benefit program, performance review and improvement, employee engagement, and recognition. General Fund Page 13 ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 0.75 0.75 0.75 4.75 4.75 4.75 HR Manager Human Resources HR Specialist Payroll Specialist TOTAL HR Director DEPARTMENT: Administration PERSONNEL SUMMARY HR Generalist TOWN OF PROSPER DIVISION: Human Resources Director Human Resources Generalist Human Resources Specialist Human Resources Manager Payroll Specialist General Fund Page 14 • • • • • • • • • • • ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 304 295 350 211 114 200 515 409 550 32 35 40 2,750 3,000 3,200 8,730 9,000 9,200 1,937 2,000 2,050 Refine and enforce SLA thresholds for Help Desk and GIS services - (SVP 4 ) Continue rollout of formal cybersecurity program - (SVP 4) ACTIVITY DEMAND / ACTIVITY WORKLOAD Average help desk tickets opened per month (Operations) Tyler EP&L Webmap average daily hits Cityworks Web Map average daily hits Average help desk tickets opened per month (Data & GIS) Average help desk tickets opened per month (Combined) TOWN OF PROSPER DEPARTMENT: Administration DIVISION: Information Technology PROGRAM DESCRIPTION ALIGNMENT TO TOWN COUNCIL’S VISIONING PRIORITIES AND OBJECTIVES Integrate data transmission (fiber) and data center infrastructure (server duster & networking hardware) into the CIP - (SVP 1) Integrate the Capital Improvement Program (CIP) into the GIS - (SVP 1) Continued to manage the Tyler ERP implementation and help to ensure project success - (SVP 4) Public Web map average daily views Internal Web map average daily views Provide field staff training and access to GIS tools and platforms - (SVP 4) Open data portal with interactive maps and dashboards - (SVP 4) Completion of onboarding Facilities to Cityworks - (SVP 4) GIS integration with Disaster/Emergency Preparedness & Resilience plans - (SVP 4) Complete migration of department and user folders to SharePoint / OneDrive - (SVP 4) Establish data governance program and policies - (SVP 4) The Information Technology Department supports key systems for all Town departments including critical public safety operations as well as directing, planning, supporting, and coordinating all activities related to the acquisition, installation, maintenance, and administration of the Town's technical infrastructure, information, asset management, location intelligence and analytics, telephone, network, and records management resources and systems. General Fund Page 15 ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 280 301 350 198 121 200 99%99%99% ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 1,236,625 1,391,115 1,519,005 1,360,471 1,846,462 1,529,925 127,781 160,850 - 33,090 37,334 12,745 2,757,967 3,435,761 3,061,675 ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 1.00 1.00 1.00 0.50 0.50 1.00 1.00 1.00 1.00 3.00 3.00 3.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 11.50 11.50 12.00 Information Technology Manager Help Desk Technician I Help Desk Technician II TOTAL Technical Project Manager/Business Systems Analyst GIS Analyst I GIS Analyst II GIS & Data Manager Business Systems Analyst Director of Information Technology Administrative Assistant Administration PERSONNEL SUMMARY Operations Capital VERF Charges for Services TOTAL Personnel EXPENDITURE SUMMARY DIVISION: EFFICIENCY / EFFECTIVENESS MEASURES Average help desk tickets closed per month (Operations) DEPARTMENT: Information Technology TOWN OF PROSPER Average help desk tickets closed per month (Data & GIS) I.T. Systems availability (uptime) General Fund Page 16 TOWN OF PROSPER DEPARTMENT:DIVISION: Administration Information Technology Director of Information Technology GIS & Data Manager Business Systems Analyst GIS Analyst I GIS Analyst II Administrative Assistant Assistant Director Help Desk Technicians (3) Help Desk Technician II Technical Project Manager/Business Analyst General Fund Page 17 • • • • • ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 5,388 5,514 5,789 388 599 628 101 108 113 170 180 189 4,411 5,098 5,352 189 200 210 1,227 1,062 1,115 1,871 1,924 2,020 Citizens Academy: 11 meetings | Avg. 20 participants Teen Government Academy: 11 meetings | Avg. 15 participants Mayor’s Youth Advisory Council: 9 meetings | Avg. 20 participants Legislative Advocacy: Develop and implement strategies to effectively engage with local, state, and federal elected officials, conveying the Town's legislative priorities and influencing the legislative process. - (SVP 4) 88 92 92 MyProsper Mobile App Downloads (per year) Community Engagement Opportunities: Resident Update Subscribers Graphic Design Requests MyProsper Mobile App Service Requests Submitted ACTIVITY DEMAND / ACTIVITY WORKLOAD Social Media Posts Communication Help Tickets Resolved Videos Produced Digital Publications Created External Communication: Deliver relevant, accurate, and timely information to residents and stakeholders through a multi-channel communication approach. - (SVP 4) Internal Communication: Establish and enhance effective communication tools for the Town Council and staff to ensure seamless internal operations. - (SVP 4) Crisis Communication: Ensure residents are informed and the Town's organizational stability is protected during emergencies - (SVP 4) Community Engagement: Foster a strong sense of connection and involvement among residents and stakeholders by encouraging active participation in local government programs and activities. - (SVP 4) ALIGNMENT TO TOWN COUNCIL’S VISIONING PRIORITIES AND OBJECTIVES TOWN OF PROSPER DEPARTMENT: Administration PROGRAM DESCRIPTION Communications & Community Engagement DIVISION: The Communications &Community Engagement (CCE)Department is committed to delivering exceptional service to residents,staff, media, and the broader community by sharing accurate and timely information across a variety of platforms.Our mission is to promote transparency and foster public trust by keeping the Prosper community informed about Town news,services,programs, and events. The CCE department leads both internal and external communication efforts, overseeing media relations, newsletters, social media, photo and video content, the Town website, printed and digital publications,and community engagement initiatives.Through these channels, the CCE team ensures consistent and effective messaging that reflects the values and priorities of the Town of Prosper and the Town Council. General Fund Page 18 ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 618,487 792,006 831,606 66%68%69% 8 9 9 ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 657,408 487,231 541,575 172,504 207,836 207,836 346 834 - 830,258 695,901 749,411 ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 -1.00 1.00 1.00 -- 1.00 1.00 1.00 0.50 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 4.50 5.00 5.00 MyProsper Mobile App Requests - Average Number of Days to Close TOWN OF PROSPER DEPARTMENT: Administration Communications & Community Engagement EFFICIENCY / EFFECTIVENESS MEASURES Resident Update Enews Open Rate Social Media Engagement Rate (Likes, Comments, Shares, Retweets) DIVISION: Administration Assistant TOTAL PERSONNEL SUMMARY EXPENDITURE SUMMARY Personnel Operations VERF Charges for Services TOTAL Community Engagement Coordinator Communications Director Communications Manager Senior Communications Specialist Communications Specialist - Graphic Design Communications Director Administrative Assistant Sr. Communications Specialist Communications Specialist Community Engagement Coordinator General Fund Page 19 • • • • ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 3,414 4,100 4,300 778 800 900 ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 3,817 3,900 4,000 404 500 600 ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 300,796 384,322 415,306 126,941 171,876 226,776 -1,134 - 427,737 557,332 642,082 Timely file, disposition and dispose of matters pending before the court - (SVP 4) Responsible for accurate revenue collection and reporting - (SVP 4) Efficient record management and activity reporting to a number of state agencies - (SVP 4) Handling and processing delinquent cases for warrant and collections - (SVP 4) EXPENDITURE SUMMARY Personnel Operations VERF Charges for Services TOTAL Cases Closed (citations, citizen complaints, incident reports) EFFICIENCY / EFFECTIVENESS MEASURES Warrants Closed/Cleared (arrests and Capias pro fine) ACTIVITY DEMAND / ACTIVITY WORKLOAD Cases Filed Warrants Issued ALIGNMENT TO TOWN COUNCIL’S VISIONING PRIORITIES AND OBJECTIVES TOWN OF PROSPER DEPARTMENT:DIVISION: Administration Municipal Court PROGRAM DESCRIPTION The Municipal Court processes criminal class C misdemeanors filed by the Prosper Police Department and code enforcement.Civil matters such as property hearings to determine ownership of recovered stolen property are also handled by the Court.The Court is responsible for ensuring that all persons with matters before the judge are treated professionally, courteously, and most importantly,fairly.Court staff is available to assist customers by providing knowledge and quality information to defendants pertaining to court procedures, hearings and/or trials.The Court is a legal forum used to protect the legal rights of defendants and victims by following the laws of the United States, the State of Texas, and laws implemented by the Town of Prosper. General Fund Page 20 ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 1.00 1.00 1.00 1.00 2.00 2.00 1.00 1.00 0.50 0.50 0.50 1.00 -- 3.50 4.50 4.50TOTAL PERSONNEL SUMMARY Court Administrator Court Clerk Judicial Clerk/Youth Diversion Coordinator Marshal (Part-Time) Senior Court Clerk TOWN OF PROSPER DEPARTMENT:DIVISION: Administration Municipal Court Finance Director Assistant Finance Director Court Administrator Judicial Clerk/Youth Diversion Coordinator Court Clerk (2) Marshal (PT) General Fund Page 21 ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 58 (551,803) (113,017) 1,004,249 938,702 1,371,902 750,232 571,270 986,141 -1,125,000 710,000 1,754,539 2,083,169 2,955,026 EXPENDITURE SUMMARY Personnel/(Projected Fund Salary Savings)* The Non-Departmental budget supports the Town's property insurance and estimated Chapter 380 economic development agreements. Projected salary savings for the General Fund are also accounted for in this division. TOWN OF PROSPER DEPARTMENT:DIVISION: Administration Non-Departmental PROGRAM DESCRIPTION *Includes assumption of 2.5% of salary savings budgeted in this division TOTAL Operations Developer Agreements Transfers General Fund Page 22 • • • • ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 24,281 28,720 31,054 11,875 12,802 13,843 12,406 15,925 17,219 1,831 2,125 2,298 277 239 258 469 440 476 1,023 1,005 986 3,498 4,416 4,775 ALIGNMENT TO TOWN COUNCIL’S VISIONING PRIORITIES AND OBJECTIVES ACTIVITY DEMAND / ACTIVITY WORKLOAD Calls for service (Police Dept. calls only) The Prosper Police Department’s top priority is to reduce crime and disorder through prevention and/or apprehensive, intelligence-led policing, and proactive field operations. We accomplish this by leveraging crime analysis, a structured and tiered response model, and real-time data to guide our decisions and deployments. Utilizing the Stratified Policing framework, our officers are equipped with actionable intelligence and supported by advanced technology such as ALPRs, Realtime Crime Center Software, and drones, allowing them to respond to incidents with greater precision and awareness. Internal dashboards provide ongoing analytical insights and facilitate improved internal communications across command and operational teams. PROGRAM DESCRIPTION TOWN OF PROSPER DEPARTMENT:DIVISION: Administration Felony Offenses resulting in arrest Misdemeanor Offenses resulting in arrest Our Department is committed to forging strong interagency partnerships and fostering community collaboration. We conduct thorough post-incident investigations, ensuring swift apprehensions and successful prosecutions. Our resource deployment is both strategic and responsive, aimed at minimizing the impact of crime and maintaining public confidence. Guided by the core values of Character, Competence, Compassion, Courage, and Commitment, we continually strive to make Prosper a secure and welcoming place to live, work, and visit—delivering public safety services that reflect both innovation and accountability. Citizen initiated calls Officer initiated calls Criminal investigations (reported/investigated) Major & Minor crashes Citations The Prosper Police Department delivers comprehensive law enforcement and community policing services to the residents, businesses, organizations, and visitors of Prosper.Our mission remains the protection of life and property,the preservation of public peace, and the consistent delivery of community service with the utmost professionalism, integrity, and ethical standards. These goals are achieved through our dedicated personnel, strategic deployment of resources, and forward thinking use of technology. We provide 24-hour law enforcement and emergency communication services,ensuring rapid response and high visibility in the community.Under the leadership of Chief Doug Kowalski,the Department maintains its status as an accredited agency under the Texas Police Chiefs Association Foundation (TPCAF)Best Practices Recognition Program, demonstrating our commitment to excellence in law enforcement. The Prosper Police Department has embraced a data-driven, evidence-based crime reduction model known as Stratified Policing. This model underpins our operational and strategic efforts,guiding how we prioritize and respond to crime trends using real-time information.To support this model,we employ a suite of modern technologies including Automatic License Plate Readers (ALPRs), a Realtime Crime Center Software platform, unmanned aerial systems (drones), and internal dashboard systems that enhance interdepartmental communication, transparency, and situational awareness.These technologies enable us to act proactively, reduce crime,and strengthen community trust. Administration, Criminal Investigations, Support Services General Fund Page 23 ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 6:24 6:30 6:00 689 576 463 161 164 167 528 412 296 16.17 12.50 10.05 3.78 3.56 3.62 12.39 8.94 6.42 ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 6,027,861 6,874,755 11,574,609 1,559,998 1,791,352 3,427,515 1,053,498 319,815 289,354 258,634 280,510 444,883 8,899,991 9,266,432 15,736,361 ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 1.00 1.00 1.00 1.00 2.00 2.00 6.00 6.00 6.00 11.00 11.00 11.00 8.00 8.00 8.00 --1.00 7.00 8.00 8.00 27.00 31.00 35.00 61.00 67.00 72.00 1.00 1.00 1.00 1.00 1.00 2.00 1.00 1.00 1.00 1.00 1.00 1.00 -1.00 1.00 2.00 2.00 2.00 -1.00 1.00 1.00 1.00 1.00 7.00 9.00 10.00 TOWN OF PROSPER DEPARTMENT:DIVISION: Administration TOTAL CIVILIAN PERSONNEL EXPENDITURE SUMMARY Corporal Auto Theft Prevention Coordinator VERF Charges for Services TOTAL EFFICIENCY / EFFECTIVENESS MEASURES Response time (minutes) Capital Total Part 1 Crimes per capita 1,000 Violent crimes per capita 1,000 Property crimes per capita 1,000 Personnel Operations Administrative Assistant Records Clerk Crime Analyst Case Manager/Records Coordinator Total Part 1 Crimes Violent crimes Property Crimes SWORN TOTAL SWORN PERSONNEL CIVILIAN Police Chief Assistant Police Chief Lieutenant Sergeant PERSONNEL SUMMARY Detective Police Officer Crime Victim Advocate Senior Administrative Assistant Case Management Specialist Public Safety Officer Administration, Criminal Investigations, Support Services General Fund Page 24 TOWN OF PROSPER DEPARTMENT:DIVISION: Administration Police Chief Assistant Police Chief Bureau of Field of Operations Administrative Assistant Crime Analyst Lieutenant (4) Sergeant (8) Corporal (8) Police Officers (24) Police Officers -Traffic Unit (4) Assistant Police Chief Bureau of Specialized Services Lieutenant Criminal Investigations Crime Victim Advocate Case Manager/ Records Coordinator Case Management Specialist Sergeant (3) Detective (7) Police Officers K9/DICE Unit (2) Lieutenant Support Services Detective Police Officer Community Public Safety Officer Records Clerk Reserve Officers, Chaplains, Volunteers 9-1-1Communications Manager Senior Administrative Assistant Administration, Criminal Investigations, Support Services General Fund Page 25 • ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 28,883 33,078 36,385 50,732 51,129 56,242 ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 97%99%99% ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 1,448,988 1,596,525 1,785,490 144,877 201,297 202,093 -308 462 1,593,865 1,798,130 1,988,045 ALIGNMENT TO TOWN COUNCIL’S VISIONING PRIORITIES AND OBJECTIVES Diligently and systematically gather information necessary to ensure a safe and effective response for callers and first responders - (SVP 4) TOWN OF PROSPER DEPARTMENT:DIVISION: Administration 9-1-1 Communications PROGRAM DESCRIPTION ACTIVITY DEMAND / ACTIVITY WORKLOAD Calls for Service Total Telephone Calls 9-1-1 + Non-Emergency calls EFFICIENCY / EFFECTIVENESS MEASURES Answering all 9-1-1 Calls within 10 seconds EXPENDITURE SUMMARY Personnel Operations VERF Charges for Services TOTAL The 9-1-1 Communications Division contributes to the safety and well-well being of Prosper with efficient and professional communication services. General Fund Page 26 ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 1.00 1.00 1.00 -1.00 1.00 4.00 4.00 4.00 4.00 4.00 4.00 6.00 7.00 7.00 15.00 17.00 17.00TOTAL TOWN OF PROSPER DEPARTMENT:DIVISION: Administration 9-1-1 Communications PERSONNEL SUMMARY 9-1-1 Communications Manager 9-1-1 Communications CAD Supervisor 9-1-1 Communications Supervisor 9-1-1 Communications Lead 9-1-1 Communications Officer Assistant Chief of Police Bureau of Specialized Services 9-1-1Communications Manager 9-1-1Communications CAD Supervisor 9-1-1Communications Supervisor (4) 9-1-1Communications Lead (4) 9-1-1Communications Officer (7) General Fund Page 27 • • • • •Enhance core competencies and skills through advanced training – (SVP 4) • •Ensure Fiscal Responsibility – (SVP 4) ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 4,485 4,850 5,100 ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 0:45 0:45 1:00 6:08 6:10 4:00 3:53 3:56 10:00 13:59 14:00 20:00 15:33 14:39 20:00 100%100%100% 100%100%100% Average Response Time to Emergency Scene EMS Chest Pain at Patient to 12-lead ECG EMS Average Scene Time for Stroke Patients EMS Average Scene Time for MI/STEMI Patients Percent of Minimum 20 Training Hours per Month per Member EFFICIENCY / EFFECTIVENESS MEASURES Average Turnout Time Percent of Outdoor Warning Sirens Successfully Tested Monitor and plan accordingly for the rapid growth while meeting the immediate needs and planning for the future to maintain the highest level of excellence – (SVP 4) Continue to meet and exceed community expectation – (SVP 4) Achieve operational excellence by providing adequate deployment – (SVP 4) Continuing our commitment to a culture that is built on excellence, honesty, integrity, values, respect, accountability, and family – (SVP 4) ACTIVITY DEMAND / ACTIVITY WORKLOAD Calls for Service to Emergency Incidents ALIGNMENT TO TOWN COUNCIL’S VISIONING PRIORITIES AND OBJECTIVES Protection of lives and property by providing a timely response to emergency incidents – (SVP 4) TOWN OF PROSPER DEPARTMENT:DIVISION: Fire Services Operations PROGRAM DESCRIPTION The mission of the Prosper Fire Department is to be a model of a successful fire department, focusing on the protection of life, property, and the environment. The Prosper Fire Department is a group of dedicated professionals working together through our commitment to service and excellence. We dedicate ourselves to the safety of our community by providing the highest level of service possible. We strive for constant improvement to better serve the community and each other. General Fund Page 28 ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 8,060,657 7,422,736 12,787,590 1,164,207 1,471,416 1,705,855 195,273 91,628 91,629 615,907 361,253 556,045 10,036,044 9,347,033 15,141,119 ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 1.00 1.00 1.00 1.00 1.00 1.00 3.00 3.00 3.00 12.00 12.00 15.00 1.00 1.00 1.00 1.00 1.00 1.00 12.00 12.00 15.00 1.00 1.00 1.00 1.00 1.00 1.00 37.00 37.00 45.00 5.00 5.00 - 1.00 1.00 1.00 76.00 76.00 85.00 Firefighter/EMT-Basics TOTAL Capital Senior Administrative Assistant Administrative Assistant PERSONNEL SUMMARY Division Chief of Training Driver/Engineer Emergency Management Coordinator Fire Chief Firefighter/Paramedic Assistant Fire Chief Battalion Chief Captain Division Chief of EMS EXPENDITURE SUMMARY Personnel Operations VERF Charges for Services TOTAL DEPARTMENT: Fire Services Operations TOWN OF PROSPER DIVISION: Fire Chief Assistant Fire Chief Division Chief EMS Division Chief Training Battalion Chief (3) Captain (15)Driver/Engineer (15) Firefighter/Paramedic (45) Senior Administrative Assistant Administrative Assistant Emergency Management Coordinator General Fund Page 29 • • • • • ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 3,105 3,530 4,100 13,200 11,900 14,500 522 405 490 ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 98%85%90% 100%100%100% 100%100%100% ALIGNMENT TO TOWN COUNCIL’S VISIONING PRIORITIES AND OBJECTIVES Provide fire prevention services through public education programs and regular life safety inspections of businesses and places of assembly - (SVP 4) TOWN OF PROSPER DEPARTMENT:DIVISION: Fire Services Marshal PROGRAM DESCRIPTION Businesses Inspected Annually Fire Prevention, Total Students and Staff Total Permits Issued Provide public education services emphasizing fire safety - (SVP 4) ACTIVITY DEMAND / ACTIVITY WORKLOAD Fire Prevention, Total Students and Staff EFFICIENCY / EFFECTIVENESS MEASURES Provide fire investigative services to determine the origin and cause of fires - (SVP 4) Enforce fire and life safety codes through plan reviews for new construction, remodeling, and occupancy changes in commercial buildings - (SVP 4) Monitor and plan accordingly for the rapid growth while meeting the immediate needs and planning for the future to maintain the highest level of excellence - (SVP 4) Inspections (FM=Fire Marshal's Office / BV=Bureau Veritas) Total Permits Issued The Prosper Fire Marshal's office exists to prevent and reduce the incidents of fire by increasing the awareness and knowledge of the citizens of Prosper through fire prevention and life safety. General Fund Page 30 ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 546,338 625,496 718,537 85,680 126,302 73,614 -87,917 - 10,035 8,360 12,540 642,053 848,075 804,691 ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 2.00 2.00 4.00 5.00 5.00 TOWN OF PROSPER DEPARTMENT: Fire Services Marshal EXPENDITURE SUMMARY DIVISION: TOTAL Administrative Assistant Deputy Fire Marshal Fire Marshall Fire Inspector/Investigator Personnel Operations Capital VERF Charges for Services TOTAL PERSONNEL SUMMARY Fire Chief Fire Marshal Deputy Fire Marshal Fire Inspector/Investigator (2) Administrative Assistant General Fund Page 31 • • • ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 4,293 3,826 3,700 781 641 600 32,821 28,876 25,000 3,957 4,071 3,600 ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 30%27%30% 100%100%100% 58%54%70% ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 1,825,234 2,159,637 1,994,583 100,583 533,265 246,120 28,248 14,044 24,554 1,954,065 2,706,946 2,265,257 PROGRAM DESCRIPTION TOWN OF PROSPER DEPARTMENT:DIVISION: Development Services Building Inspections ACTIVITY DEMAND / ACTIVITY WORKLOAD Total Permits Issued Single Family Permits Issued Plan Reviews Completed ALIGNMENT TO TOWN COUNCIL’S VISIONING PRIORITIES AND OBJECTIVES Continue to complete all requested inspections on a daily basis - (SVP 4) Work to increase the number of first time approvals during plan review by providing contractors with the necessary tools and information to be successful - (SVP 4) Strive to increase the number of ICC certified personnel on staff - (SVP 4) EXPENDITURE SUMMARY Personnel EFFICIENCY / EFFECTIVENESS MEASURES Percent of residential reviews that are re-reviews Ensure that all inspections are completed on a daily basis (no roll overs) Have ICC certified or TSBPE licensed staff completing tasks at each step in permitting process (inspections, plan review, and front-counter services) Inspections Performed Capital VERF Charges for Services TOTAL Building Inspections is a Division of the Department of Development Services.The Division provides professional services to ensure the safety and welfare of the general public by enforcing building,electrical,plumbing and mechanical codes and ordinances within the Town.The Division’s personnel conduct plan review prior to the issuance of permits and on-site inspections to verify code compliance throughout the construction process. General Fund Page 32 ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 7.00 7.00 7.00 1.00 1.00 1.00 1.00 1.00 1.00 3.00 3.00 3.00 1.00 1.00 1.00 1.00 1.00 1.00 3.00 3.00 3.00 1.00 1.00 1.00 2.00 2.00 2.00 20.00 20.00 20.00 Development Services Building Inspections TOWN OF PROSPER DIVISION: Plans Examiner Senior Building Inspector TOTAL Building Inspector Building Official Chief Building Inspector Permit Technician Plans Examiner Manager PERSONNEL SUMMARY Permit Technician Manager Plans Coordinator DEPARTMENT: Director of Development Services Building Official Chief Building Inspector Senior Building Inspector (2) Building Inspector (7) Permit Technician Manager Plans Coodinator Permit Technician (3) Plans Examiner Manager Plans Examiner (3) General Fund Page 33 • • • • • • • • ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 1,080 1,500 1,800 50 50 95 650 680 680 ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 90%90%90% 95%95%95% 95%95%95% 85%90%95% PROGRAM DESCRIPTION TOWN OF PROSPER DEPARTMENT:DIVISION: Development Services Health & Code Compliance EFFICIENCY / EFFECTIVENESS MEASURES ALIGNMENT TO TOWN COUNCIL’S VISIONING PRIORITIES AND OBJECTIVES Strive to ensure fundamental codes are enforced that will enhance and increase appeal for residents, visitors, and businesses - (SVP 2) Maintain an equitable, expeditious, and effective common-sense approach of enforcing town codes and ordinances - (SVP 2) Continue to recommend modifications and enhancements to town codes and ordinances that will improve beautification efforts - (SVP 2) Achieve operational excellence by providing adequate deployment – (SVP 4) Continue to provide onsite food safety training, pool operation, safety and education during various types of Health Inspections and Follow Ups - (SVP 4) ACTIVITY DEMAND / ACTIVITY WORKLOAD Courtesy notices sent to property owners Inspect all annual food establishments twice per year Respond to and investigate complaints within same day or within 24 hours As part of the annual registration and inspection program, require abatement/corrections of multifamily inspection issues within 15 days Proactively notify all property owners along major and minor thoroughfares seeking compliance of the high grass and weeds ordinance Prioritizing main corridors and thoroughfares to promote pride, cleanliness and enhance landscaping improvements through inspections - (SVP 3) Create and promote the use of door hangers for High Weeds and Grass as an educational tool to increase awareness and voluntary compliance - (SVP 4) Maintain customer friendly and personal Town services - (SVP 4) Citations Issued Heath Inspections, including new and reinspection's Code Compliance is a division of the Department of Development Services and provides services to maintain and promote the health, safety, welfare, and property values in Prosper.Staff strives to achieve voluntary compliance of the various land use and nuisance codes through consistent education with all stakeholders while applying codes fairly.The Health component of the Division works with all food establishments, childcare facilities,schools,mobile food vendors and operators of public/semi-public pools, spas, and PIWF's to ensure the safety and cleanliness of the facilities.Eliminating risk factors that contribute to food borne illness is the goal of performing regular risk- based health inspections. General Fund Page 34 ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 382,414 363,314 481,614 147,791 421,090 365,542 (12)-- 11,638 10,216 15,324 541,831 794,620 862,480 ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 1.00 1.00 1.00 1.00 1.00 1.00 3.00 3.00 3.00 5.00 5.00 5.00 DEPARTMENT: Development Services Health & Code Compliance EXPENDITURE SUMMARY DIVISION: TOTAL Health and Code Compliance Manager Health and Code Compliance Officer Code Compliance Officer Personnel Operations Capital VERF Charges for Services TOTAL PERSONNEL SUMMARY TOWN OF PROSPER Director of Development Services Health and Code Compliance Manager Health and Code Compliance Officer Code Compliance Officer (3) General Fund Page 35 • • • • • • • • • • • • • ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 152 111 125 20 14 15 -1 - 33 32 45 176 111 100 1 1 5 PROGRAM DESCRIPTION TOWN OF PROSPER DEPARTMENT:DIVISION: Development Services Planning Ensure that new development is attractive and creates or enhances Prosper's sense of place - (SVP 3) Establish an overlay within the Unified Development Code - (SVP 2) Maintain high-quality development consistent with Town's standards and codes - (SVP 2) Encourage redevelopment within the Downtown - (SVP 2) Ensure that new development is attractive and creates or enhances Prosper's sense of place - (SVP 2) Develop corridors linking major development nodes - (SVP 3) Planning is a division of the Department of Development Services and provides professional expertise in the areas of planning, zoning, land use and strategic decision-making to elected and appointed officials, Town management, citizens, and developers to ensure the future quality of life in the Town of Prosper. Primary responsibilities of the Planning staff include implementing the Comprehensive Plan, the Zoning Ordinance, and the Subdivision Ordinance to achieve the desired objectives of the Town. The division responds to development-related requests, facilitates the development application process, and is responsible for developing reports and recommendations to the Town Council, the Planning & Zoning Commission, and the Board of Adjustment. These requests include applications for Zoning changes, Subdivision Plats, Site Plans and Variances. ALIGNMENT TO TOWN COUNCIL’S VISIONING PRIORITIES AND OBJECTIVES Revitalize Prosper Downtown consistent with the Vision and Master Plan - (SVP 2) Develop the Dallas North Tollway corridor consistent with the Vision and Master Plan - (SVP 3) Provide exceptional reviews on any new development - (SVP 4) Have a strong working partnership with Prosper ISD - (SVP 4) Update Town's standards and codes to upkeep with current trends - (SVP 4) Continuous improvement based on best practices and benchmarking in accordance with the Matrix recommendations - (SVP 4) ACTIVITY DEMAND / ACTIVITY WORKLOAD Number of pre-apps on future development Number of incomplete submittals due to completeness and quality review Number of amendments to the zoning and subdivision ordinance, and other ordinances and plans to stay current with trends and desired standards. Maintain high-quality development consistent with Town's standards and codes - (SVP 3) Development Cases Zoning Cases Comprehensive Plan Amendments General Fund Page 36 ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 80%50%85% 85%85%85% 55%30%80% 25%25%25% 25%20%30% 85%85%95% 80%100%100% ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 719,734 757,104 845,127 69,080 103,450 109,450 1,945 924 1,386 790,759 861,478 955,963 ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 7.00 7.00 7.00 Return phones calls/emails within 24 hours Continuing education/training for staff development to provide enhanced services to other departments/public. EXPENDITURE SUMMARY Personnel TOWN OF PROSPER DEPARTMENT:DIVISION: EFFICIENCY / EFFECTIVENESS MEASURES Review completeness and quality applications within 48 hours of submittal Director of Development Services Senior Administrative Assistant Planning Manager Operations VERF Charges for Services TOTAL TOTAL Review all 1st round of submittals within 10 days. Return pre-app meetings notes within a week. Place Development submittals on Planning & Zoning Commission agenda within 30 days of receipt of application Place Zoning submittals on Planning & Zoning Commission agenda within 60 days of receipt of application Landscape Development Planner Senior Planner Planner Planning Technician Development Services Planning PERSONNEL SUMMARY Director of Development Services Senior Administrative Assistant Planning Manager Landscape Development Planning Senior Planner Planner Planning Technician General Fund Page 37 • • • • ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 1,258 798 1,120 ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 90%95%95% 100%100%100% ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 1,038,180 1,133,820 1,476,236 2,089,951 2,137,650 2,455,204 131,649 -- 62,856 39,940 68,716 3,322,636 3,311,410 4,000,156 Operate under an organizational culture that values innovation, productivity, responsibility, and accountability that empowers managers and employees - (SVP 4) PROGRAM DESCRIPTION ALIGNMENT TO TOWN COUNCIL’S VISIONING PRIORITIES AND OBJECTIVES Maintain a top quality workforce with competitive compensation - (SVP 4) TOWN OF PROSPER DEPARTMENT:DIVISION: Public Works Streets ACTIVITY DEMAND / ACTIVITY WORKLOAD Number of Work Orders Provide traffic control during special events and provide public services messages - (SVP 4) Ensure proper operation of school zone flashers and speed boards by maintenance and repair - (SVP 4) EFFICIENCY / EFFECTIVENESS MEASURES Repair street signs & regulatory signage within four hours of initial contact Respond to icy road conditions within two hours EXPENDITURE SUMMARY Personnel Operations VERF Charges for Services Capital TOTAL The Streets Division is responsible for the repair and maintenance of streets,sidewalks, alleys,and signage.The Division rebuilds asphalt streets,makes minor street and alley repairs, builds and repairs sections of sidewalk and curbs, sweeps streets,and sands driving surfaces during icy weather.The Streets Division also provides the electrical expenditures associated with providing street lights and traffic signals within Town limits. General Fund Page 38 ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 2.00 2.00 2.00 2.00 2.00 2.00 4.00 4.00 4.00 1.00 1.00 1.00 1.00 1.00 1.00 -1.00 1.00 --1.00 --1.00 1.00 1.00 1.00 1.00 1.00 1.00 12.00 13.00 15.00 Streets TOWN OF PROSPER DEPARTMENT:DIVISION: Streets Supervisor TOTAL PERSONNEL SUMMARY Crew Leader - Streets Heavy Equipment Operator Utility Worker Signals/Signs Supervisor Public Works Crew Leader - Traffic Traffic Signals Technician Signs and Markings Technician Fleet Coordinator Streets Superintendent Director of Public Works Streets Superintendent Streets Supervisor Crew Leader -Streets (2) Heavy Equipment Operator (2) Utility Worker (4) Traffic Supervisor Crew Leader -Traffic Signs and Markings Technician Traffic Signal Technician Fleet Coordinator General Fund Page 39 • • • • • • • ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 100%100%100% 100%100%100% ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 100%100%100% 100%100%100% Work with Town staff and other groups to make sure that parking is available in the Town Hall parking lot for Downtown events - (SVP 2) TOWN OF PROSPER DEPARTMENT:DIVISION: Public Works Facilities PROGRAM DESCRIPTION ALIGNMENT TO TOWN COUNCIL’S VISIONING PRIORITIES AND OBJECTIVES Work to improve the use and development of the Town's facilities through planning and building new structures to meet town needs, such as Fire Station #4 and the Public Works/Parks buildings - (SVP 1) Work to properly maintain and manage current buildings with improved environmental systems including rooftop A/C units on Town Hall, and repairs among other departments such as the Parks roof and parking area - (SVP 1) Maintain internal systems so they are always functioning properly as well as minimizing breakdowns - (SVP 4) Ensure inspections of elevators and other life safety devices making sure they are up to date such as fire sprinkler systems - (SVP 4) ACTIVITY DEMAND / ACTIVITY WORKLOAD Completion of scheduled preventative maintenance like filters and belts. Completion of maintenance requests and planned projects. EFFICIENCY / EFFECTIVENESS MEASURES Completing construction projects and assignments under budget and within timeframes. Tracking and completing workorders in a timely manner. Maintain parking lots so they are safe and clean with proper lighting - (SVP 2) Providing safe, clean, and comfortable buildings for the public and staff - (SVP 4) Facilities Management provides for the maintenance and construction of the Town of Prosper facilities.Facilities core functions include construction, maintenance and operations:Overseeing HVAC,electrical,plumbing and other building systems to ensure they function properly.Optimizing space and ensuring safe and healthy operations in office spaces, workstations and common areas.Janitorial and other services as needed, waste management and sanitation.Managing security and access controls and other asset security. Managing venders and facilities contracts and costs.Initiating and managing construction of new and existing facilities including ground up and remodels. General Fund Page 40 ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 248,847 488,626 492,833 1,030,580 971,986 1,013,502 4,894 3,923 5,884 1,284,321 1,464,535 1,512,219 ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 1.00 1.00 1.00 -1.00 1.00 1.00 2.00 2.00 1.00 1.00 1.00 3.00 5.00 5.00 Personnel TOWN OF PROSPER Facilities Construction Manager Facilities Maintenance Technician Facilities Manager TOTAL Operations VERF Charges for Services TOTAL PERSONNEL SUMMARY Facilities Advanced Maintenance Technician DEPARTMENT:DIVISION: Public Works Facilities EXPENDITURE SUMMARY Assistant Town Manager Facilities Construction Manager Facilities Manager Facilities Advanced Maintenance Technician Facilities Maintenance Technician (2) General Fund Page 41 • • • • ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 17 18 18 825 100 - ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 634 655 741 ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 660,790 880,237 985,245 545,530 559,046 432,743 3,774 2,370 3,555 1,210,094 1,441,653 1,421,543 PROGRAM DESCRIPTION TOWN OF PROSPER DEPARTMENT:DIVISION: Community Services Park Administration Work with the developing community and other organizations to develop our park system - (SVP 4) ACTIVITY DEMAND / ACTIVITY WORKLOAD Provide adequate park land to meet Towns existing and future needs (Master Plan LOS 11.25- 20.5 acres per 1,000 population) ALIGNMENT TO TOWN COUNCIL’S VISIONING PRIORITIES AND OBJECTIVES Provide long range planning as well as implementation of the Parks and Recreation Master Plan to meet the parks,trails, and facility needs of the Towns residents - (SVP 4) Provide park design and construction of parks that meets the needs of the community as well as enhances the value ofthe property surrounding the park - (SVP 4) Continue to pursue funding assistance and grants for park CIP projects - (SVP 4) EXPENDITURE SUMMARY Personnel Review of private development Landscape Plans and Tree Preservation plans (Parks Admin is no longer responsible for this review work; it’s now done by Development Services) EFFICIENCY / EFFECTIVENESS MEASURES Total acres of park land within the Town both developed and undeveloped Operations VERF Charges for Services TOTAL The Park Administration Division oversees and administers all of the Parks and Recreation departmental activities.The division is also responsible for marketing of the department, programs,activities and special events.They also manage the planning and construction of parks and trails.The division reviews the landscape,irrigation and tree preservation plans to ensure compliance with Town ordinances. General Fund Page 42 ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 --1.00 1.00 1.00 - 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 -0.50 0.50 1.00 -- 1.00 -- -1.00 1.00 6.00 5.50 5.50 Senior Administrative Assistant DEPARTMENT:DIVISION: Community Services Park Administration PERSONNEL SUMMARY TOWN OF PROSPER Park Planner Park Planning Manager/Assistant Director Park Planning Manager TOTAL Administrative Assistant Assistant Director of Parks and Recreation Director of Parks and Recreation Marketing Coordinator Senior Park Planner Director of Parks and Recreation Park Planner -PT Senior Administrative Assistant Marketing Coordinator Assistant Director Park Planning Manager General Fund Page 43 • • ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 10,200 10,300 11,288 335 439 540 ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 100%100%100% 4 3 4 ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 2,086,206 2,530,361 2,750,331 2,269,923 2,271,235 2,798,103 155,022 103,312 96,000 125,864 79,538 129,971 4,637,015 4,984,446 5,774,405 Continuing to support Town events - (SVP 4) TOWN OF PROSPER DEPARTMENT:DIVISION: Community Services Park Operations PROGRAM DESCRIPTION ALIGNMENT TO TOWN COUNCIL’S VISIONING PRIORITIES AND OBJECTIVES Continuing to maintain the Town’s landscape and open space at a high level - (SVP 4) VERF Charges for Services ACTIVITY DEMAND / ACTIVITY WORKLOAD Maintain and prepare game and practice facilities to meet the local sports league needs for available space (number of participants) Acres of park land maintained EFFICIENCY / EFFECTIVENESS MEASURES Maintain playgrounds that meet the latest American Society for Testing and Materials (ASTM) and Consumer Product Safety Commission (CPSC) guidelines EXPENDITURE SUMMARY Personnel Operations Capital TOTAL Work with outside groups who perform service projects to minimize staff time or provide additional items (Goal: 2 projects per year) The Park Operations Division manages the maintenance of the Town's parks, medians,trails,and open spaces.The Division also prepares sports fields for practices, games, tournaments and assists with special events. General Fund Page 44 ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 1.00 1.00 1.00 4.00 4.00 5.00 3.00 3.00 3.00 1.00 1.00 1.00 5.00 5.00 5.00 1.00 1.00 1.00 1.00 -1.00 10.00 10.00 10.00 1.00 1.00 1.00 -1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 30.00 30.00 32.00 TOWN OF PROSPER DEPARTMENT:DIVISION: Community Services Park Operations Playground Technician Administrative Assistant TOTAL Heavy Equipment Operator Irrigation Crew Leader Irrigation Technician Maintenance Worker PERSONNEL SUMMARY Chemical Crew Leader Chemical Technician Crew Leader Crew Leader/Shop Mechanic Parks Operations Supervisor Parks Superintendent Assistant Parks Superintendent Director of Parks and Recreation Park Superintendent Assistant Superintendent Crew Leader/Shop Mechanic Heavy Equipment Operator (5) Maintenance Worker Chemical Crew Leader Chemical Technician (5) Landscape Crew Leader Playground Technician Maintenance Worker (2) Supervisor Crew Leader (2) Maintenance Worker (5) Irrigation Crew Leader Irrigation Technician Maintenance Worker (2) Administrative Assitant General Fund Page 45 • • • • • • • • • • ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 $327,457 $315,000 $345,000 134 142 160 111 116 122 ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 86%89%90% ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 321,714 292,011 282,139 476,303 447,386 226,801 798,017 739,397 508,940 PROGRAM DESCRIPTION TOWN OF PROSPER DEPARTMENT:DIVISION: Community Services Park Recreation ALIGNMENT TO TOWN COUNCIL’S VISIONING PRIORITIES AND OBJECTIVES Number of classes and programs offered throughout the year Increase participation in programs and recreation opportunities - (SVP 4) Offer indoor programming in Town Hall and the 407 Rec Center - (SVP 4) Creating partnerships to offer additional programming space for growing programs - (SVP 4) Offer well attended community events, with new and original activities to increase participation. Adding an active adult’s expo, P-Town Throwdown pickleball tournament, and enhancing current events - (SVP 4) Working together with the local school district and youth sports associations, to ensure the community needs are being met - (SVP 4) ACTIVITY DEMAND / ACTIVITY WORKLOAD Recreation revenue Enhance the health and wellness of our community with the yearlong Mayor's Fitness Challenge and an inner-city competition with the Town of Little Elm. - (SVP 4) Offer new opportunities for active adult programming. - (SVP 4) Offer Downtown community events to help increase foot traffic to the Downtown businesses. - (SVP 2) Offer adaptive programs and events for families with children with special needs. - (SVP 4) Working together with Downtown businesses to provide recreation programs for the community. - (SVP 2) Personnel Operations TOTAL Annual Pavilion Rentals EFFICIENCY / EFFECTIVENESS MEASURES Percent of classes/programs that meet attendance requirement EXPENDITURE SUMMARY The Park Recreation Division provides programs,activities,and special events that meet the needs of the residents.They also manage field and pavillion rentals and assist sports groups in scheduling. General Fund Page 46 ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 - -1.00 - 1.00 1.00 1.00 1.00 0.50 0.50 5.00 5.50 3.50 Recreation Attendant - Seasonal TOTAL PERSONNEL SUMMARY TOWN OF PROSPER DEPARTMENT:DIVISION: Community Services Park Recreation Recreation Coordinator - Programs Recreation Coordinator - Events Recreation Manager - Events Recreation Manager Recreation Specialist Director of Parks and Recreation Recreation Manager -Events Recreation Manager Recreation Coordinator -Programs Recreation Specialist Recreation Attendant General Fund Page 47 • • • • • • ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 12,500 13,600 15,500 ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 --161,223 --385,275 - - 546,498 ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 --1.00 --1.00 0.00 0.00 2.00 Pursue sponsorship opportunities to increase financial sustainability and community investment in events - (SVP 4) TOWN OF PROSPER DEPARTMENT:DIVISION: Community Services Special Events PROGRAM DESCRIPTION ALIGNMENT TO TOWN COUNCIL’S VISIONING PRIORITIES AND OBJECTIVES Increase Community Participation in events through marketing and targeted outreach - (SVP 4) Develop mutually beneficial partnerships with local businesses, nonprofits, and civic organizations to enchance event offerings - (SVP 2) Reimagine traditional events by incorporating innovative elements, interactive programming, and culturally relevant themes - (SVP 4) Ensure all events are welcoming and accessible, with specific accommodations for families and children with special needs - (SVP 4) ACTIVITY DEMAND / ACTIVITY WORKLOAD Attendance of annual Town events (Contract partnered events not included) EXPENDITURE SUMMARY Personnel Special Events Specialist TOTAL Operations TOTAL PERSONNEL SUMMARY Special Events Manager Coordinate with downtown business and the Prosper Economic Development Corporation to align event timing and offerings to maximize visibility, engagement, and economic benefit - (SVP 2) Director Special Events Manager Special Events Specialist The Special Events Division plans, coordinates, and manages community events that bring residents together.These events include seasonal festivals, concerts, holiday celebrations, and other public gatherings.The division works to foster community pride, support local businesses, and enhance the quality of life for Prosper residents through inclusive,safe, and memorable experiences • ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 64,197 72,600 77,000 166,635 167,000 171,000 --18,000 15,415 16,000 17,000 11,326 13,300 15,000 750,000 1,020,000 1,400,000 34,691 33,000 35,000 ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 41,660 44,992 46,087 27.2%29.6%32.5% 4.00 3.71 3.71 --0.39 1.54 1.61 1.67 18.00 22.7 30.4 0.83 0.73 0.76 ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 723,210 808,759 935,954 113,746 154,640 158,898 809 526 788 837,765 963,925 1,095,640 ALIGNMENT TO TOWN COUNCIL’S VISIONING PRIORITIES AND OBJECTIVES Continue to provide excellent municipal services. – (SVP 4) TOWN OF PROSPER DEPARTMENT:DIVISION: Community Services Library PROGRAM DESCRIPTION ACTIVITY DEMAND / ACTIVITY WORKLOAD Library Visits EFFICIENCY / EFFECTIVENESS MEASURES Physical items circulated E-books circulated* Program attendance Library card holders Collection Size (Digital Consortium) CollectionSize (Physical) *tracking started in Q3 of FY25 Holdings per capita (Digital Consortium) Holdings per capita (Physical) TOTAL Library visits per capita *Population *tracking started in Q3 of FY25 EXPENDITURE SUMMARY Personnel Operations VERF Charges for Services Library card holders as a % of population Physical item circulation per capita E-books circulated per capita* The Prosper Community Library serves as a cornerstone of learning, literacy, and community connection for all Prosper-area residents.The library provides equitable access to high-quality resources that support education, intellectual curiosity,and lifelong learning.Visitors will find a clean,well-organized, and welcoming environment designed for discovery and engagement.The library’s diverse collection includes books, audiobooks, and digital materials in multiple formats.Good lighting,comfortable seating, updated technology, and inviting spaces make exploration accessible and enjoyable.As a community hub, the library cultivates connection through social interaction,civic engagement, and a wide range of programs and cultural experiences for individuals and families. General Fund Page 49 ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 --1.00 1.00 1.00 1.00 1.50 1.50 1.50 1.00 1.00 1.00 1.00 1.00 - --1.00 2.00 3.00 3.00 5.00 4.50 4.50 11.50 12.00 13.00 Library Clerk TOTAL PERSONNEL SUMMARY Circulation Supervisor Library Director Youth Services Librarian Technical Services Coordinator Administrative Assistant TOWN OF PROSPER DEPARTMENT:DIVISION: Community Services Librarian Library Assistant Library Library Director Circulation Supervisor Library Clerk -PT (7) Library Assistant (3) Youth Services Librarian Librarian Youth Services Librarian -(PT)Technical Services Coordinator General Fund Page 50 • • • • • ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 720 700 650 7,500 7,500 7,500 -125 150 ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 70%85%95% 90%92%95% 98%98%98% 98%98%99% 100%100%100% -90%100% ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 2,496,790 2,415,611 2,555,792 147,843 117,235 153,179 13,359 9,008 - 2,657,992 2,541,854 2,708,971 Respond to contractors request for information within 3 working days - (SVP 4) TOWN OF PROSPER DEPARTMENT:DIVISION: Engineering Engineering PROGRAM DESCRIPTION ALIGNMENT TO TOWN COUNCIL’S VISIONING PRIORITIES AND OBJECTIVES Review all development plans submitted within 10-day turnaround - (SVP 1) Meet all benchmark schedules for design, land acquisition, utility relocation and construction for CIP projects - (SVP 1) Complete daily inspection reports on all Town CIP projects - (SVP 4) ACTIVITY DEMAND / ACTIVITY WORKLOAD Number of plan reviews for developments and subdivisions to construction Conduct and document daily inspection of all CIP and Town Infrastructure improvements* EFFICIENCY / EFFECTIVENESS MEASURES Review all development plans submitted within 10-day turnaround Complete daily inspection reports on all Town CIP projects EXPENDITURE SUMMARY Personnel Operations VERF Charges for Services TOTAL Approve monthly pay applications within 5 days of satisfactory submittal - (SVP 4) Number of Traffic engineering related requests, including signs, markings, signal operations and safety studies. *Estimate based on 10 inspections per person x 250 days per year. Actual number of inspections will be tracked with implementation of Energov software. Respond to traffic inquiries, complaints or other traffic related incidents within 24 hours Approve monthly pay applications within 5 days of satisfactory submittal Respond to contractors request for information within 3 working days Meet all benchmark schedules for design, land acquisition, utility relocation and construction for CIP projects The Town of Prosper Engineering Services Department provides full project management services for the planning, design, and construction of all Town-funded projects and provides review services for all privately funded projects. General Fund Page 51 ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 0.50 0.50 0.50 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 2.00 2.00 2.00 3.00 3.00 3.00 1.00 1.00 1.00 2.00 2.00 2.00 1.00 1.00 1.00 3.00 3.00 3.00 -1.00 1.00 16.50 17.50 17.50 Engineering Engineering TOWN OF PROSPER DEPARTMENT:DIVISION: Administrative Assistant Assistant Director of Engineering Services - Capital Projects Assistant Director of Engineering Services - Development CIP Facilitator CIP Program Manager TOTAL Civil Engineer Construction Superintendent Director of Engineering Services Assistant Town Manager Senior Engineer Senior Traffic Engineer Engineering Technician PERSONNEL SUMMARY Assistant Town Manager Director of Engineering Services Assistant Director -Capital Projects CIP Program Manager Construction Superintendent (3) Senior Engineer (2)Civil Engineer CIP Facilitator Administrative Assistant (PT) Assistant Director -Development Engineering Technician (2) Senior Engineer Civil Engineer Senior Traffic Engineer General Fund Page 52 UTILITY FUNDS Utility Funds Description The Water and Wastewater Fund accounts for all costs in providing water and wastewater services to residential and commercial utility customers. The operations necessary to provide such services include Administration, Debt Services, Water Purchases, and the treatment of wastewater. The operations of the Water and Wastewater Fund are financed and operated in a manner similar to a private business enterprise where expenses (including depreciation) of providing services are recovered primarily through user charges. The Solid Waste Fund accounts for all costs in providing solid waste services to residential and commercial customers. The operations necessary to provide such services include Administration and Trash Collection Services. The operations of the Solid Waste Fund are financed and operated in a manner similar to a private business enterprise where expenses (including depreciation) of providing services are recovered primarily through user charges. The Town's Stormwater Drainage Division is managed in a coordinated fashion by both the Town's Engineering and Public Works Departments. Engineering selects consultants and contractors to design and construct major repairs and improvements to the Town's stormwater systems, and reviews flood studies and drainage plans to ensure conformance with Federal, State and Town codes. Public Works' stormwater and drainage crews maintain all improved and unimproved drainage facilities within the Town to ensure the free flow of stormwater and to minimize the probability of structure flooding. The Stormwater Drainage Division also administers the Phase II Municipal Separate Stormwater System (MS4) Permit by implementing and managing programs to improve water quality in accordance with regulatory requirements through public education, eliminating illicit discharges, and control of construction site runoff. An annual cash transfer from the Utility Funds to the General Fund is made for payment of administrative overhead costs incurred. Administrative services, such as operations management, financial management, purchasing, and payroll are included in this overhead charge. Utility Funds Page 1 Revenue Category Water & Wastewater Solid Waste Stormwater Drainage Charges for Services 45,895,991 3,938,626 1,726,111 License, Fees & Permits 193,000 - - Penalties 205,500 - - Investment Income 350,000 3,500 8,000 Miscellaneous 691,700 - 25,000 Revenue Total $ 47,336,191 $ 3,942,126 $ 1,759,111 Other Utility Funds Revenues By Source Water & Wastewater 89% Solid Waste 8% Stormwater Drainage 3% Utility Funds Page 2 Category FY 2026 Adopted % of Total Administration 3,921,390 7.9% Public Works 10,776,413 21.7% Debt Service 7,227,903 14.5% Water Purchases 15,819,798 31.8% Sewer Management 6,035,065 12.1% Trash Collection Svcs.3,445,196 6.9% Transfers Out 2,055,658 4.1% Capital 467,374 0.9% Appropriation Total $49,748,797 100.0% Utility Funds Appropriations By Department FY 2026 Preliminary - $49,748,797 FY 2025 Amended - $40,676,366 Administration 7.9% Public Works 21.7% Debt Service 14.5%Water Purchases 31.8% Sewer Management 12.1% Trash Collection Svcs. 6.9% Transfers Out 4.1% Capital 0.9% Administration 6.9% Public Works 23.6% Debt Service 12.1%Water Purchases 33.3% Sewer Management 13.0% Trash Collection Svcs. 7.0% Transfers Out 3.5% Capital 0.7% Utility Funds Page 3 Fiscal Year Days Over Minimum Reserve Value of Each Day % 2020-2021 171 76,857$ 47.63% 2021-2022 112 94,564$ 31.01% 2022-2023 179 87,244$ 44.60% 2023-2024 160 76,326$ 37.96% 2024-2025 179 87,244$ 44.60% 2025-2026 180 103,095$ 43.71% Water and Wastewater Fund Net Assets The Town shall strive to maintain a minimum ending working capital balance (current assets minus current liabilities)of at least twenty-five percent (25%) of budgeted non-capital expenditures for each of the proprietary funds.Net assets fluctuate based on user based charges and one-time capital needs,while maintaining a minimum working capital. $- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 $16,000,000 $18,000,000 $20,000,000 2021-2022 Actual 2022-2023 Actual 2023-2024 Actuals 2024-2025 Amended 2025-2026 Adopted Utility Funds Page 4 FUND ACCOUNT TYPE ACTUAL 2023-2024 ORIGINAL 2024-2025 ADOPTED AMENDED 2024-2025 ADOPTED BUDGET 2025-2026 PLANNING YEAR 2026-2027 PLANNING YEAR 2027-2028 PLANNING YEAR 2028-2029 PLANNING YEAR 2029-2030 REVENUES Water Charges for Services 21,248,246 24,478,951 24,478,951 27,821,398 31,507,624 35,474,893 39,631,342 42,942,653 Wastewater Charges for Services 11,436,813 13,568,257 13,568,257 18,074,593 21,770,494 25,782,505 27,692,745 33,175,176 License, Fees & Permits 470,004 377,705 425,966 193,000 199,000 205,000 211,000 217,000 Water Penalties 234,715 186,900 214,083 205,500 205,500 205,500 205,500 205,500 Investment Income 1,627,438 450,000 450,000 350,000 350,000 350,000 350,000 350,000 Other 826,621 579,190 579,190 691,700 768,359 848,076 932,884 1,006,250 TOTAL REVENUES 35,843,838$ 39,641,003$ 39,716,447$ 47,336,191$ 54,800,977$ 62,865,974$ 69,023,471$ 77,896,579$ EXPENDITURES Administration 708,811 1,072,687 1,072,687 996,176 1,008,204 1,026,563 1,045,489 1,061,604 Debt Service 5,498,790 4,443,033 4,443,033 6,750,064 6,298,407 6,298,325 6,292,788 6,193,848 Franchise Fee Expense 990,801 1,136,854 1,136,854 2,172,380 2,393,844 2,633,222 2,815,223 3,110,720 Water Purchases 12,567,118 13,563,295 13,563,295 15,819,798 18,874,794 22,793,422 26,437,938 29,974,268 Sewer Management Fees 4,924,570 5,270,599 5,270,599 6,035,065 7,652,270 8,312,133 9,179,678 9,849,339 Public Works 7,484,128 9,601,940 9,582,340 10,776,413 10,796,408 10,987,818 11,174,811 11,372,559 TOTAL EXPENDITURES 32,174,218$ 35,088,408$ 35,068,808$ 42,549,896$ 47,023,927$ 52,051,483$ 56,945,927$ 61,562,338$ Net Income (Loss)3,669,620$ 4,552,595$ 4,647,639$ 4,786,295$ 7,777,050$ 10,814,491$ 12,077,544$ 16,334,241$ OTHER FINANCING Transfers In 2,093,694 - - - - - - - Transfers Out (11,372,517) - - - - - - - Transfer Out G&A (1,183,707) (1,218,340) (1,218,340) (1,829,753) 1,829,753 1,829,753 1,829,753 1,829,753 TOTAL OTHER FINANCING SOURCES (USES)(10,462,530)$ (1,218,340)$ (1,218,340)$ (1,829,753)$ 1,829,753$ 1,829,753$ 1,829,753$ 1,829,753$ CHANGE IN FUND BALANCE (6,792,910)$ 3,334,255$ 3,429,299$ 2,956,542$ 9,606,803$ 12,644,244$ 13,907,297$ 18,163,994$ BEGINNING FUND BALANCE 19,005,386$ 10,142,334$ 12,212,476$ 15,641,775$ 18,598,317$ 28,205,120$ 40,849,364$ 54,756,661$ ENDING FUND BALANCE 12,212,476$ 13,476,589$ 15,641,775$ 18,598,317$ 28,205,120$ 40,849,364$ 54,756,661$ 72,920,655$ 1.25 times Debt Service Reserve Limit 1.45 1.75 1.77 1.44 2.53 3.01 3.21 3.93 AMOUNT OVER (UNDER) IN DAYS OPERATING COST 160 154 179 180 265 339 409 497 Fund balance policy 25%38%38%45%44%60%78%96%118% Water and Wastewater Fund Summary Utility Funds Page 5 Water and Wastewater Fund Overview Water and Wastewater Fund Administration Utility Customer Service Non-Departmental Public Works Water Wastewater Construction Inspections Utility Funds Page 6 • • • ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 22,241 23,000 24,000 4,370 6,500 7,500 940 1,150 1,250 24,113 25,125 25,600 2,473 2,441 2,450 3,125 2,971 3,100 650 660 600 13,340 14,500 16,000 ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 100%100%100% 100%100%100% 0.01%0.01%0.01% Provide first rate utility customer service. - (SVP 4) Customer Service Representative will have all necessary information on hand to answer and meet our customer's needs. - (SVP 4) Keep accurate records of all water, wastewater, and solid waste accounts billed for the Town of Prosper. - (SVP 4) Online payments (annually) Lockbox payments (monthly) Utility bills created before the 20th of each month Disconnections at beginning of month (30 days past due) Average payments by auto draft (monthly) Average payments by credit card draft (monthly) Number of customers billed (monthly average) EFFICIENCY / EFFECTIVENESS MEASURES Manually entered utility billing payments without errors New connects (annually) Disconnections for non-payment (annually) Provide accurate monthly billing to Prosper residents and businesses for water, wastewater,solid waste, and recycling services.This department is also responsible for initiating, transferring,and terminating services, processing adjustment requests, winter average adjustment, account maintenance, and the processing of work orders and collection services.This includes posting payments to customer's account, organizing the annual Spring Clean Up and participating in the New Residential event every 6 months. ALIGNMENT TO TOWN COUNCIL’S VISIONING PRIORITIES AND OBJECTIVES ACTIVITY DEMAND / ACTIVITY WORKLOAD Create/process work orders (annually) PROGRAM DESCRIPTION TOWN OF PROSPER DEPARTMENT:DIVISION: Administration Utility Customer Service Utility Funds Page 7 ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 115,042 135,839 450,499 403,321 303,880 179,544 56,235 53,557 - 2,594 1,825 - 577,192 495,101 630,043 ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 1.00 1.00 1.00 1.00 1.00 1.00 3.00 3.00 3.00 5.00 5.00 5.00 Utility Customer Service Administrator Utility Customer Service Supervisor Utility Customer Service Clerk VERF Charges for Services TOTAL PERSONNEL SUMMARY TOTAL Administration Utility Customer Service EXPENDITURE SUMMARY Personnel Operations Transfers TOWN OF PROSPER DEPARTMENT:DIVISION: Finance Director Utility Customer Service Administrator Utility Customer Service Supervisor Utility Customer Service Clerk (3) Utility Funds Page 8 ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 426,254 412,300 163,810 752,402 1,355,697 2,374,703 1,001,877 -1,829,753 5,149,604 6,752,544 8,312,666 349,186 880 880 7,679,323 8,521,421 12,681,812 TOTAL The Non-Departmental budget supports the Town's property insurance,a franchise fee paid to the General Fund for cost of administrative services,and the debt service payments for the Water and Sewer fund.Projected salary savings for the Water and Sewer Fund are also accounted for in this division. TOWN OF PROSPER DEPARTMENT:DIVISION: Administration Non-Departmental PROGRAM DESCRIPTION Bond Issuance EXPENDITURE SUMMARY Personnel/(Projected Fund Salary Savings) Operations Transfers Debt Utility Funds Page 9 • • • • • • ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 13,438 14,781 16,259 240 226 226 5,357 3,593 3,952 458 539 592 ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 100%100%100% 100%100%100% 98%98%98% 8.6%15.0%15.0% Reduce the total time to repair water leaks to less than 5 hours and respond to leaks within 30 minutes of initial contact Maintain TCEQ mandated water sampling and testing Maintain the total unaccounted water under 12% ACTIVITY DEMAND / ACTIVITY WORKLOAD Work order total Overall water consumption (gallons per capita per day) Surface water pumped (in millions) Water flushed in million gallons EFFICIENCY / EFFECTIVENESS MEASURES Prvoide Superior Water System rating from TCEQ Provide a "Superior Quality" rate water system. - (SVP 4) Provide timely maintenance of water system by inspecting and repairing 50% of all fire hydrants annually - (SVP 4) Maintain efficient meter reading by completing repairs as needed. - (SVP 4) PROGRAM DESCRIPTION The Water Division is responsible for the operation, repair, and maintenance of all water lines, meters,valves, and fire hydrants. The Division performs daily water sampling required by the Texas Commission of Environmental Quality (TCEQ) to maintain a superior water quality rarting for the Prosper community and residents.The Town fo Prosper purchases treated water from North Texas Municipal Water District (NTMWD).The water is stored in two ground storage tanks and three elevated storage tanks until it is pumped through pipes to customers.The Prosper Water Education program involves a combination of water use reduction strategies. Initiatives of the program include workshops and training opportunities for homeowners ALIGNMENT TO TOWN COUNCIL’S VISIONING PRIORITIES AND OBJECTIVES Retain a top quality workforce with competitive compensation. - (SVP 4) Operate under an organizational culture that values innovation, productivity, responsibility, and accountability that empowers managers and employees. - (SVP 4) Offer free educational opportunities, including Sprkinkler Evaluations, plant life education, and irrigation education to our residents for water conservation. - (SVP 4) TOWN OF PROSPER DEPARTMENT:DIVISION: Public Works Water Utility Funds Page 10 ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 2,732,368 3,136,322 3,807,698 14,573,815 16,601,903 19,177,830 2,000,000 124,505 130,688 2,849,946 900,473 1,829,753 22,156,129 20,763,203 24,945,969 ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 1.00 -- 2.00 2.00 2.00 4.00 5.00 5.00 1.00 1.00 1.00 1.00 1.00 1.00 3.00 4.00 4.00 1.00 1.00 1.00 -4.00 4.00 1.00 1.00 1.00 -1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 2.00 --1.00 2.00 2.00 2.00 7.00 8.00 8.00 1.00 1.00 1.00 1.00 1.00 1.00 3.00 3.00 3.00 32.00 39.00 41.00 Utility Compliance Superintendent Utility Maintenance Supervisor Utility Worker Water and Wastewater Superintendent Water Education Coordinator Administrative Assistant Backflow Inspector Water Quality Technician TOTAL Systems Technician Crew Leader Director of Public Works Environmental Coordinator/Assistant to Director Heavy Equipment Operator Irrigation Specialist Meters Technician Public Works Right-Of-Way Inspector Senior Administrative Assistant Senior Backflow Inspector Senior Systems Technician Senior Water Quality Technician PERSONNEL SUMMARY EXPENDITURE SUMMARY TOWN OF PROSPER DEPARTMENT:DIVISION: Public Works Water Personnel Operations Capital Transfers TOTAL Public Works Director Sr. Administrative Assistant Utility Compliance Superintendent Sr. Backflow Inspector Backflow Inspector (2) Utility Maintenance Supervisor Public Works ROW Inspector Sr. Systems Technician Systems Technician (2) Sr. Water Quality Technician Water Quality Technician (3) Crew Leader HEO Utility Worker Asst. to Director/Envir. Coordinator Irrigation Specialist Water Education Coordinator Water/Wastewater Superintendent Utility Maintenance Supervisor Crew Leader -Utilities (4) HEO (3) Utility Worker (4) Crew Leader -Meter Meters Technician (4) Utility Funds Page 11 • • • • ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 2,301 1,950 1,600 184,536 176,006 200,000 2,965 3,000 3,200 5 2 - 770 791 857 ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 100%100%100% 100%100%100% Sanitary System Overflows (SSO) Minimize reportable wastewater discharges to TCEQ Work Orders/ Inspections/ Line Locates Fats, Oils, and Grease (FOG) Inspections EFFICIENCY / EFFECTIVENESS MEASURES Clean and camera 10% of the wastewater collection system Implement FOG policies to reduce SSO's and provide programs for citizen awareness. - (SVP 4) ACTIVITY DEMAND / ACTIVITY WORKLOAD Public works inspections Feet of wastewater lines inspected by camera The Wastewater Division is responsible for the collection of wastewater and its transmission to the wastewater treatment plants. This service includes the operation, maintenance, and repair of all wastewater lines,manholes, and lift stations connected to the system. North Texas Municipal Water District (NTMWD)and Upper Trinity Regional Water District (UTRWD)operate the wastewater treatment plants. The Prosper Fats, Oils,and Grease (FOG)Program involves the inspection of grease traps and the education of residents and businesses connected to our wastewater collection system. Initiatives of the program include educational materials,one-on-one interaction,and best management practices for business owners.Public Works Inspections include inspections of all infrastructure for private development prior to acceptance and Certificate of Occupancy issuance. ALIGNMENT TO TOWN COUNCIL’S VISIONING PRIORITIES AND OBJECTIVES Retain a top quality workforce with competitive compensation. - (SVP 4) Operate under an organizational culture that values innovation, productivity, responsibility, and accountability that empowers managers and employees. - (SVP 4) Reduce the number of Sanitary System Overflows (SSO) to less than five every year. - (SVP 4) PROGRAM DESCRIPTION TOWN OF PROSPER DEPARTMENT:DIVISION: Public Works Wastewater Utility Funds Page 12 ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 961,731 1,301,329 1,480,428 5,987,576 6,588,750 7,367,171 752,526 264,310 - 7,701,833 8,154,389 8,847,599 ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 4.00 4.00 4.00 1.00 1.00 1.00 3.00 3.00 3.00 2.00 2.00 2.00 1.00 1.00 1.00 6.00 6.00 6.00 17.00 17.00 17.00TOTAL Utility Worker PERSONNEL SUMMARY Crew Leader FOG Technician Heavy Equipment Operator Utility Line Locator Utility Maintenance Supervisor EXPENDITURE SUMMARY Personnel Operations Transfers TOTAL TOWN OF PROSPER DEPARTMENT:DIVISION: Public Works Wastewater Public Works Director Water/Wastewater Superintendent Utility Maintenance Supervisor Crew Leader -Utilities (4) Heavy Equipment Operator (3) Utility Worker (6) FOG Technician Utility Line Locator (2) Utility Funds Page 13 • • • • ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 13,200 13,200 13,200 40 20 30 34 30 30 54 60 50 3,446 2,500 3,000 6,000 6,000 6,000 ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 100%100%100% 90%95%95% 95%95%95% 0%0%0% ROW permits issued *Estimated based on (15 inspections per day per inspector x 250 days) x 3.5 + (10 weekend inspections x 40 days x 1 inspector Conduct private development inspections within 24 hours of request Process ROW permits within 5 working days Conduct ROW permitted inspections for private franchise utilities EFFICIENCY / EFFECTIVENESS MEASURES Respond to contractors request for information within 3 working days Infrastructure mapped on GPS before or during final walk Active Projects The Construction Inspection Division conducts inspections of all public infrastructure for private development and assists with capital improvement projects for general conformance with Town standards. The division also oversees right-of-way permitting and right-of-way inspections of private franchise utility construction ALIGNMENT TO TOWN COUNCIL’S VISIONING PRIORITIES AND OBJECTIVES Process Right-of-way (ROW) permits wihtin 5 working days. - (SVP 1) Respond to contractors request for information within 3 working days. - (SVP 4) Conduct private development inspections within 24 hours of request. - (SVP 4) Infrastructure mapped before or during final walk. - (SVP 4) ACTIVITY DEMAND / ACTIVITY WORKLOAD Conduct and document daily inspections of all private development and Town infrastructure improvements* Pre-construction meetings held Final Acceptance Certificates issues PROGRAM DESCRIPTION TOWN OF PROSPER DEPARTMENT:DIVISION: Engineering Construction Inspections Utility Funds Page 14 ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 557,703 605,681 617,806 100,549 57,744 76,655 658,252 663,425 694,461 ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 1.00 1.00 1.00 1.00 1.00 1.00 2.00 2.00 2.00 2.00 2.00 2.00 6.00 6.00 6.00 Construction Inspector Right-Of-Way Inspector TOTAL Operations TOTAL PERSONNEL SUMMARY Right-Of-Way and Construction Inspection Manager Senior Construction Inspector DEPARTMENT:DIVISION: Engineering Construction Inspections EXPENDITURE SUMMARY Personnel TOWN OF PROSPER Director of Engineering Services Assistant Director of Engineering Services -Development Right-Of-Way and Construction Inspection Manager Senior Construction Inspector Construction Inspector (2) Right-Of-Way Inspector (2) Utility Funds Page 15 FUND ACCOUNT TYPE ACTUAL 2023-2024 ORIGINAL 2024-2025 ADOPTED AMENDED 2024-2025 ADOPTED BUDGET 2025-2026 PLANNING YEAR 2026-2027 PLANNING YEAR 2027-2028 PLANNING YEAR 2028-2029 PLANNING YEAR 2029-2030 REVENUES Sanitation Charges for Services 2,961,117 3,295,173 3,295,173 3,938,626 4,153,186 4,367,746 4,582,306 4,796,866 Investment Income 6,762 4,500 6,135 3,500 3,500 3,500 3,500 3,500 TOTAL REVENUES 2,967,879$ 3,299,673$ 3,301,308$ 3,942,126$ 4,156,686$ 4,371,246$ 4,585,806$ 4,800,366$ EXPENDITURES Trash Collection Services 2,717,717 2,830,789 2,830,789 3,445,196 3,632,876 3,820,556 4,008,236 4,195,916 Debt Service 137,500 257,501 257,501 257,501 257,500 257,500 257,501 257,501 Administration 66,243 66,753 66,753 75,588 77,044 79,197 81,416 83,700 TOTAL EXPENDITURES 2,921,460$ 3,155,043$ 3,155,043$ 3,778,285$ 3,967,420$ 4,157,253$ 4,347,153$ 4,537,117$ Period Excess / (Deficit)46,419$ 144,630$ 146,265$ 163,841$ 189,266$ 213,993$ 238,653$ 263,249$ OTHER FINANCING Transfers Out - (30,000) (30,000) (195,951) (195,951) (195,951) (195,951) (195,951) TOTAL OTHER FINANCING SOURCES (USES)-$ (30,000)$ (30,000)$ (195,951)$ (195,951)$ (195,951)$ (195,951)$ (195,951)$ NET CHANGE IN FUND BALANCE 46,419$ 114,630$ 116,265$ (32,110)$ (6,685)$ 18,042$ 42,702$ 67,298$ BEGINNING FUND BALANCE 5,984$ 177,281$ 52,403$ 168,668$ 136,558$ 129,873$ 147,915$ 190,617$ ENDING FUND BALANCE 52,403$ 291,911$ 168,668$ 136,558$ 129,873$ 147,915$ 190,617$ 257,915$ Amount Above/(Below) Fund Balance Reserve of $250,000 (197,597)$ 41,911$ (81,332)$ (113,442)$ (120,127)$ (102,085)$ (59,383)$ 7,915$ Solid Waste Fund Summary Utility Funds Page 16 • • • ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 320 330 330 4,370 6,500 7,500 940 1,150 1,250 24,113 25,125 25,600 2,473 2,441 2,450 3,125 2,971 3,100 13,340 14,500 16,000 ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 100%100%100% 100%100%100%Utility bills created before the 20th of each month New connects (annually) Number of customers billed (monthly average) EFFICIENCY / EFFECTIVENESS MEASURES Manually entered utility billing payments without errors Lockbox payments (monthly) Provide accurate monthly billing to Prosper residents and businesses for solid waste and recycling services.Coordinate the ordering and delivery of new trash and recycle carts for residents moving into the Town of Prosper.Collaborate with Republic Services to ensure timely and consistent servicing of all residential and commercial trash/recycle carts. Process new service requests and final work orders for solid waste and recycling accounts.Participate in the annual Spring Clean event,assisting with logistics and resident engagement. Monitor Republic Services' performance to ensure fulfillment of all contractual obligations with the Town of Prosper. ALIGNMENT TO TOWN COUNCIL’S VISIONING PRIORITIES AND OBJECTIVES Provide first rate utility customer service. - (SVP 4) Customer Service Representative will have all necessary information on hand to answer and meet our customer's needs. - (SVP 4) Keep accurate records of all water, wastewater, and solid waste accounts billed for the Town of Prosper. - (SVP 4) ACTIVITY DEMAND / ACTIVITY WORKLOAD Create/process work orders on complaints for miss pickups (annually) Average payments by auto draft (monthly) Average payments by credit card draft (monthly) Online payments (annually) PROGRAM DESCRIPTION TOWN OF PROSPER DEPARTMENT:DIVISION: Administration Solid Waste Utility Funds Page 17 ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 60,207 63,733 71,668 2,723,753 2,863,809 3,479,116 137,500 257,501 257,501 - - 165,951 2,921,460 3,185,043 3,974,236 ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 1.00 1.00 1.00 1.00 1.00 1.00 PERSONNEL SUMMARY Solid Waste Clerk TOTAL EXPENDITURE SUMMARY Personnel Operations Debt Transfers TOTAL TOWN OF PROSPER DEPARTMENT:DIVISION: Administration Solid Waste Finance Director Utility Customer Service Administrator Utility Customer Service Supervisor Solid Waste Clerk Utility Funds Page 18 FUND ACCOUNT TYPE ACTUAL 2023-2024 ORIGINAL 2024-2025 ADOPTED AMENDED 2024-2025 ADOPTED BUDGET 2025-2026 PLANNING YEAR 2026-2027 PLANNING YEAR 2027-2028 PLANNING YEAR 2028-2029 PLANNING YEAR 2029-2030 REVENUES Stormwater Drainage Fees 940,739 950,000 988,440 1,726,111 1,933,244 2,165,234 2,316,800 2,386,304 Other 3,150 3,500 3,500 25,000 25,000 25,000 25,000 25,000 Transfer In 16,883 - - - - - - - Investment Income 23,145 8,000 8,000 8,000 8,000 8,000 8,000 8,000 TOTAL REVENUES 983,916$ 961,500$ 999,940$ 1,759,111$ 1,966,244$ 2,198,234$ 2,349,800$ 2,419,304$ EXPENDITURES Operating Expenses 374,128 524,949 518,499 677,246 697,563 718,490 740,045 762,246 Debt Service 231,944 215,263 215,263 220,338 215,263 220,338 219,338 218,113 Capital 575,596 288,750 288,750 467,374 225,000 225,000 225,000 225,000 Transfers Out 113,395 157,996 181,663 29,954 30,853 31,778 32,732 33,713 TOTAL EXPENDITURES 1,295,063$ 1,186,958$ 1,204,175$ 1,394,912$ 1,168,679$ 1,195,607$ 1,217,115$ 1,239,073$ Period Excess / (Deficit)(311,147)$ (225,458)$ (204,235)$ 364,199$ 797,565$ 1,002,627$ 1,132,685$ 1,180,231$ NET CHANGE IN FUND BALANCE (311,147)$ (225,458)$ (204,235)$ 364,199$ 797,565$ 1,002,627$ 1,132,685$ 1,180,231$ BEGINNING FUND BALANCE 593,296$ 702,594$ 251,393$ 47,158$ 411,357$ 1,208,922$ 2,211,549$ 3,344,235$ ENDING FUND BALANCE 251,393$ 477,136$ 47,158$ 411,357$ 1,208,922$ 2,211,549$ 3,344,235$ 4,524,466$ AMOUNT OVER (UNDER) IN DAYS OPERATING COST 70 145 14 106 372 666 989 1,315 Fund Balance Policy 17%21%46%5%30%106%190%282%375% Stormwater Drainage Utility Fund Summary Utility Funds Page 19 • • ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 176 180 200 7,173 5,000 6,000 55 63 70 88 75 80 80 80 95 Annually Annually Annually ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 100%100%100% 80%80%95% 75%80%95% Inspect and provide annual (educational) audits for drainage facilities to HOA's Home Building lots in compliance Inspect new development construction projects within the Town's jurisdiction monthly to verify compliance with TCEQ Stormwater requirements ACTIVITY DEMAND / ACTIVITY WORKLOAD New development construction projects, post-construction BMP's, FOG facilities, and residents complaints within the Town's jurisdiction to verify compliance with TCEQ Stormwater requirements Home Building Inspections (per individual lots) Number of developments requiring annual post-construction BMP audits Hours spent on education part of Stormwater program Hours spent on post-construction BMP audits and coordinator with HOA's on remedies Complete Annual MS4 permit update/Ensure that MS4 paperwork is in order EFFICIENCY / EFFECTIVENESS MEASURES Inspect and provide annual (educational) audits for drainage facilities to HOA's. - (SVP 4) TOWN OF PROSPER DEPARTMENT:DIVISION: Engineering Administration - Stormwater PROGRAM DESCRIPTION The core service of the Stormwater Drainage Division is to ensure compliance with the Phase II Municipal Separate Storm Sewer System (MS4) Permit by implementing and managing programs to improve water quality in accordance with regulator requirements, through public education, by eliminating illicit discharges, and rigorous construction site runoff control. ALIGNMENT TO TOWN COUNCIL’S VISIONING PRIORITIES AND OBJECTIVES Inspect new development construction projects within the Town's jurisdiction monthly to verify compliance with TCEQ. - (SVP 4) Utility Funds Page 20 ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 189,826 329,605 426,032 27,041 106,498 99,117 62,230 263,240 160,438 107,996 110,024 107,996 109,459 219,463 215,263 5,830 6,455 - 502,382 1,035,285 1,008,846 ACTUAL REVISED BUDGET 2023-2024 2024-2025 2025-2026 -1.00 1.00 --1.00 1.00 1.00 1.00 1.00 2.00 2.00 2.00 4.00 5.00TOTAL Engineering Administration - Stormwater EXPENDITURE SUMMARY Personnel Operations TOTAL Capital Transfers Debt Service VERF Charges for Service PERSONNEL SUMMARY Erosion Control Inspector Stormwater Crew Leader Stormwater Utility Administrator Utility Worker TOWN OF PROSPER DEPARTMENT:DIVISION: Director of Engineering Services Assistant Director of Engineering Services -Development Stormwater Utility Administrator Erosion Control Inspector Public Works Director Street Superintendent Street Supervisor Stormwater Crew Leader Utility Worker (2) Utility Funds Page 21 DEBT SERVICE FUNDS Debt Service Fund Description The Debt Service Fund accounts for the accumulation of resources and the payment of general long‐term debt principal and interest. General Obligation Bonds and Certificates of Obligation are issued to finance major improvements for the construction of streets, parks, libraries, recreation centers, fire stations, police stations, and other general governmental improvements. Property taxes are the principal source of revenue in the Debt Service Fund. The tax rate allocation for the Debt Service Fund is $0.182946, which is 36.2% of the fiscal year 2026 tax rate ($0.505). The purpose of this fund is to retire outstanding general obligation bond and payinterest on the indebtedness.   Debt Service Fund Page 1 FUND ACCOUNT TYPE ACTUAL 2023-2024 ORIGINAL 2024-2025 ADOPTED AMENDED 2024-2025 ADOPTED BUDGET 2025-2026 PLANNING YEAR 2026-2027 PLANNING YEAR 2027-2028 PLANNING YEAR 2028-2029 PLANNING YEAR 2029-2030 REVENUES Property Tax 15,429,085 18,228,251 18,241,765 20,799,204 22,335,374 24,263,342 26,144,748 27,860,342 Investment Income 251,540 195,000 195,000 145,000 145,000 145,000 145,000 145,000 TOTAL REVENUES 15,680,625$ 18,423,251$ 18,436,765$ 20,944,204$ 22,480,374$ 24,408,342$ 26,289,748$ 28,005,342$ EXPENDITURES Principal 8,885,722 8,640,966 8,640,966 9,488,512 8,632,894 9,055,313 9,496,469 10,190,097 Interest 6,842,143 6,663,697 6,663,697 8,506,816 8,082,431 7,565,681 7,020,388 6,473,049 Debt Service on Future Issuance - 3,518,892 3,518,892 3,150,000 4,843,240 7,321,040 10,476,760 11,342,560 Administrative Fees 10,049 20,000 20,000 20,000 20,000 20,000 20,000 20,000 TOTAL EXPENDITURES 15,737,914$ 18,843,555$ 18,843,555$ 21,165,328$ 21,578,565$ 23,962,034$ 27,013,617$ 28,025,706$ Period Excess / (Deficit)(57,288)$ (420,304)$ (406,790)$ (221,124)$ 901,809$ 446,308$ (723,869)$ (20,364)$ NET CHANGE IN FUND BALANCE (57,288)$ (420,304)$ (406,790)$ (221,124)$ 901,809$ 446,308$ (723,869)$ (20,364)$ BEGINNING FUND BALANCE 1,302,520$ 1,363,680$ 1,245,232$ 838,442$ 617,318$ 1,519,127$ 1,965,435$ 1,241,566$ ENDING FUND BALANCE 1,245,232$ 943,376$ 838,442$ 617,318$ 1,519,127$ 1,965,435$ 1,241,566$ 1,221,202$ Debt Reserve Policy 3-5% of Annual Debt Service 8%5%4%3%7%8%5%4% Debt Service Fund Summary Debt Service Fund Page 2 Actual Projected Projected Projected Projected Projected Position as of Position as of Position as of Position as of Position as of Position as of FYE 9.30.2024 FYE 9.30.2025 FYE 9.30.2026 FYE 9.30.2027 FYE 9.30.2028 FYE 9.30.2029 1. Assessed Value of taxable property 8,335,296,679$ 9,622,101,595$ 10,806,491,907$ 11,773,632,209$ 12,749,481,798$ 13,683,901,155$ (certified)(certified)(certified (projected)(projected)(projected) 2. Freeze Assessed Value Equivalent 150,728,256$ 176,987,350$ 209,112,774$ 235,251,871$ 258,777,058$ 284,654,764$ 3. Town's Target (4% limit)339,440,997$ 391,963,558$ 440,624,187$ 480,355,363$ 520,330,354$ 558,742,237$ Unreserved Debt Capacity 339,440,997$ 391,963,558$ 440,624,187$ 480,355,363$ 520,330,354$ 558,742,237$ 4. Beginning Outstanding Debt 178,910,618$ 203,949,897$ 211,120,434$ 223,681,922$ 236,340,924$ 246,821,827$ Less: Total Principal Payment (8,885,722) (12,279,463) (12,638,512) (11,335,998) (12,458,002) (13,585,555) 5. Authorized Proposed Issues 36,407,062 19,450,000 25,200,000 12,550,000 5,784,905 - 6. Future Proposed Issues - - 11,445,000 17,154,000 32,605,000 Total Debt Subject to Limit 206,431,958$ 211,120,434$ 223,681,922$ 236,340,924$ 246,821,827$ 265,841,272$ 7. Available Unreserved Debt Capacity ($)133,009,039$ 180,843,124$ 216,942,265$ 244,014,439$ 273,508,527$ 292,900,964$ 8. Available Unreserved Debt Capacity (%)39.18%46.14%49.24%50.80%52.56%52.42% 9. I&S Tax Rate 0.17726 0.180392 0.182946 0.18295 0.18295 0.18295 10. Town's target of 40% or less of 34.8%35.7%36.2%36.2%36.2%36.2% Total Tax Rate 11. Outstanding Debt as a percentage of 2.4%2.2%2.0%2.0%1.9%1.9% Assessed Value (4% or less) Notes: 1. Total Assessed valuation growth assumption is 11.75% in FY 2026, 9.49% in FY2027, 8.29% in FY2028, and 7.33% in FY2029. 2. The Freeze Assessed Value Equivalent is the calculated valuation needed to generate the levy collected on frozen property. 3. Town debt policy limits total principal amount of GO bonds together with the principle amount of all other outstanding tax indebtedness will be targeted to not exceed four percent (4%) of the total assessed valuation of the Town's tax rolls. 7. Debt capacity available after deducting the reserved capacity in dollars. 8. Debt capacity available after deducting the reserved capacity in percentage. 9. Percentage of debt capacity available after deducting the reserved capacity. 10. Town's FY 2024 I&S tax rate and projected I&S rates are calculated based on 100% collections. 11. Percentage of overall total tax rate ($0.505 - FYE 09.30.25 and beyond). 12. Outstanding Debt as a percentage of Total Assessed Value Current Rating AA+ AAA AA+ AA+ AA+ Aa1 AA+ Aa1 AA+ Aa1 Projection of Debt Margin Based on Town Policy 5. Debt issues subject to limit proposed are part of the Capital Improvements Plan and are anticipated to be issued during the referenced fiscal year. Sizing includes estimated cost of issuance. Authorized in the 2020 Bond Election 6. Includes debt issues that are currently not authorized by the voters. A bond election is anticipated in November of 2025 to seek authorization. BOND RATINGS The Town has utilized two different rating agencies over the years -Moody's Investor Services and Standard and Poor's. Moody has assigned the Town’s outstanding general obligation limited tax debt outlook as stable at Aa1 to the Town’s $8.535 million Combination Tax and Surplus Revenue Certificates of Obligation,Series 2023 and the Town's $41.895 million General Obligation Refunding &Improvement Bonds,Series 2023.Standard and Poor’s Global Ratings (“S&P”)also assigned its rating of AA+to the Town’s 2023 Combination Tax and Surplus Revenue Certificates of Obligation and the Town's 2023 General Obligation Bonds. The Aa1 and AA+ratings are the second highest ratings of each agency and reflect the Town’s healthy finanical position due to a rapidly expanding residential economy supported by significant ongoing development,and a growing and affluent population working in nearby employment centers.The chart below reflects ratings since June 2020. Rating Entity Prior Rating Prior Rating Period Standard & Poor's AA+August 2024 Standard & Poor's Fitch AA+ AA+ August 2025 August 2025 Fitch No prior rating August 2024 Standard & Poor's AA+August 2023 Moody's Aa1 August 2023 Standard & Poor's AA+September 2022 Moody's Aa1 September 2022 Moody's Aa1 August 2021 4. Current outstanding debt subject to limit at fiscal year end includes all debt in which property taxes are pledged. Excludes debt issued for water, sewer, and drainage projects Standard & Poor's AA+August 2021 Debt Service Fund Page 3 Debt Issuance Details General Obligation Refunding and Improvement Bonds, Series 2014 (Moody's Rated "Aa2" and S&P Rated "AA")-The proceeds of this $7.175M taxable issue will be used for (i)refunding a portion of the Town's outstanding debt; and (ii)design and land acquisition costs for Town fire stations and park improvements. The issue is 47% debt service fund related and 53% water and sewer fund related and was issued February 15, 2014, maturing February 15, 2034. Interest payable February 15 and August 15 at rates ranging from 2.0% to 5.0%. Certificates of Obligation, Series 2014 (Moody's Rated "Aa2" and S&P Rated "AA")-The proceeds of this $12.57M taxable issue will be used for (i) acquisition of sewage treatment capacity. The issue is 100% water and sewer fund related and was issued February 15, 2014, maturing February 15, 2034. Interest payable February 15 and August 15 at rates ranging from 2.0% to 4.0%. General Obligation Refunding and Improvement Bonds, Series 2015 (Moody's Rated "Aa2" and S&P Rated "AA")-The proceeds of this $16.135M taxable issue will be used for (i)refunding a portion of the Town's outstanding debt;(ii)improvements to streets and roads, bridges and intersections, and related infrastructure in the Town;(iii)to fund the construction and equipping of a fire station; and (iv) the acquisition and installation of a public safety radio system.The issue is 79% debt service fund related and 21% water and sewer fund related and was issued July 15, 2015, maturing February 15, 2035. Interest payable February 15 and August 15 at rates ranging from 2.0% to 5.0%. Certificates of Obligation, Series 2015 (Moody's Rated "Aa2" and S&P Rated "AA")-The proceeds of this $8.135M taxable issue will be used for (i)improvements to streets and roads, bridges and intersections, and related infrastructure in the Town;(ii)to fund the construction and equipping of a fire station; and (iii)the acquisition and installation of a public safety radio system.The issue is 100% debt service fund related and was issued July 15, 2015, maturing February 15, 2035. Interest payable February 15 and August 15 at rates ranging from 2.0% to 5.0%. General Obligation Refunding and Improvement Bonds, Series 2016 (Moody's Rated "Aa2" and S&P Rated "AA")-The proceeds of this $7.505M taxable issue will be used for (i)refunding a portion of the Town's outstanding debt;(ii)acquiring a site for, and designing a multi-purpose municipal facility to serve as Town Hall and for other municipal services,with any surplus bond proceeds to be used for the construction of such facility; (iii)designing, constructing, improving and equipping parks,trails and recreational facilities and a park administration facility,and the acquisition of land and interests in land for such purposes; and (iv)constructing, improving, extending, expanding, upgrading and developing streets and roads, bridges and intersections including utility relocation, landscaping, sidewalks,traffic safety and operational improvements, the purchase of any necessary rights-of-way, drainage and other related costs.The issue is 84% debt service fund related and 16% water and sewer fund related and was issued July 12, 2016, maturing February 15, 2036. Interest payable February 15 and August 15 at rates ranging from 2.0% to 4.0%. Debt Service Fund Page 4 Debt Issuance Details Certificates of Obligation, Series 2016 (Moody's Rated "Aa2" and S&P Rated "AA")-The proceeds of this $8.47M taxable issue will be used for (i)the construction and equipping of a multi- purpose municipal facility, (ii)the constructing, improving, extending, expanding, upgrading and developing parks and recreation facilities including fields, trails, utility relocation, landscaping, sidewalks, and operational improvements,installation of lighting,the purchase of any necessary rights- of-way, drainage and other related costs;and (iii)the constructing, improving, extending, expanding, upgrading, and developing storm drainage utility projects including utility relocation, landscaping, sidewalks,traffic safety and operation improvements, the purchase of necessary easements and the related costs.The issue is 84% debt service fund related and 16% stormwater drainage fund related and was issued July 12, 2016, maturing February 15, 2036. Interest payable February 15 and August 15 at rates ranging from 2.0% to 4.0%. Certificates of Obligation, Series 2017 (Moody's Rated "Aa1" and S&P Rated "AA+")-The proceeds of this $11.565M taxable issue will be used for (i)constructing and equipping of a facility to serve as Town Hall and to house other municipal offices;(ii)constructing, improving and developing parks and recreation facilities;and (iii)constructing and improving storm drainage utility projects in the Town. The issue is 91% debt service fund related and 9% stormwater drainage fund related and was issued June 27, 2017, maturing February 15, 2037. Interest payable February 15 and August 15 at rates ranging from 2.0% to 5.0%. General Obligation Bonds, Series 2018 (Moody's Rated "Aa1" and S&P Rated "AA+")-The proceeds of this $3.9M taxable issue will be used for (i)constructing and equipping public safety facilities,parks and park facilities and a public works facility;and (ii)constructing and improving streets, roads and other related infrastructure in the Town. The issue is 100% debt service fund related and was issued June 15, 2018, maturing February 15, 2038. Interest payable February 15 and August 15 at rates ranging from 4.0% to 5.0%. Certificates of Obligation, Series 2018 (Moody's Rated "Aa1" and S&P Rated "AA+")-The proceeds of this $22.225M taxable issue will be used for (i)constructing and equipping a multi-purpose municipal facility to serve as Town Hall and to house other municipal services;(ii)improving the Town's waterworks system;and (iii)constructing and improving streets, roads and other related infrastructure in the Town. The issue is 56% debt service fund related and 44% water and sewer fund related and was issued June 15, 2018, maturing February 15, 2038. Interest payable February 15 and August 15 at rates ranging from 3.125% to 5.0%. General Obligation Bonds, Series 2019 (Moody's Rated "Aa1" and S&P Rated "AA+")-The proceeds of this $4.065M taxable issue will be used for (i)constructing and improving streets, roads and other related infrastructure in the Town. The issue is 100% debt service fund related and was issued July 25, 2019, maturing February 15, 2039. Interest payable February 15, and August 15 at rates ranging from 3.0% to 4.0%. Debt Service Fund Page 5 Debt Issuance Details Certificates of Obligation, Series 2019 (Moody's Rated "Aa1" and S&P Rated "AA+")-The proceeds of this $17.49M taxable issue will be used for (i)acquiring, constructing,installing and equipping additions, improvements, extensions and equipment for the Town's waterworks and sewer system;(ii)constructing, improving, extending, expanding, upgrading and developing streets and roads and intersections, including utility relocation, landscaping, sidewalks,traffic safety and operational improvements and the purchase of any necessary rights-of-way and other related costs,(iii) constructing, improving, extending, expanding, upgrading and developing parks and recreation facilities, including fields, trails, utility relocation, landscaping, sidewalks and operational improvements, installation of lighting,the purchase of any necessary rights-of-way, and other related costs;(iv) designing, constructing, improving and equipping public safety facilities in the Town, including a police station and dispatch facility,and the acquisition of land and interests in land as necessary for such purposes; and (v)paying legal, fiscal,engineering and architectural fees in connection with these projects. The issue is 75% debt service fund related and 25% water and sewer fund related and was issued July 25, 2019, maturing February 15, 2039. Interest payable February 15 and August 15 at rates ranging from 3.0% to 5.0% Certificates of Obligation, Series 2020 (Moody's Rated "Aa1" and S&P Rated "AA+")-The proceeds of this $10.875M taxable issue will be used for (i)constructing, improving, extending, expanding, upgrading and developing streets and roads and intersections, including utility relocation, landscaping, sidewalks,traffic safety and operational improvements and the purchase of any necessary rights-of-way and other related costs;(ii)constructing, improving, extending, expanding, upgrading and developing parks and recreation facilities,including fields, trails, utility relocation, landscaping, sidewalks and operational improvements,installation of lighting,the purchase of any necessary rights- of-way, drainage and other related costs;and (iii)paying legal, fiscal,engineering and architectural fees in connection with these projects. The issue is 100% debt service fund related and was issued September 1, 2020, maturing February 15, 2035. Interest payable February 15 and August 15 at 4.0%. General Obligation Bonds, Series 2021 (Moody's Rated "Aa1" and S&P Rated "AA+")-The proceeds of this $36.255M taxable issue will be used for (i)constructing public safety facilities in the Town;(ii)equipping parks,trails and recreational facilities in the Town;(iii)constructing and improving streets, roads and other related infrastructure in the Town; and (iv)paying costs of issuing the Bonds. The issue is 100% debt service fund related and was issued August 18, 2021, maturing February 15, 2041. Interest payable February 15 and August 15 at rates ranging from 2.0% to 5.0%. Certificates of Obligation, Series 2021 (Moody's Rated "Aa1" and S&P Rated "AA+")-The proceeds of this $6.855M taxable issue will be used for (i)constructing, improving, extending, expanding, upgrading and developing streets and roads and intersections, including utility relocation, landscaping, sidewalks,traffic safety and operational improvements and the purchase of any necessary right-of-way and other related costs,specifically including improvements to Frontier Parkway from the Dallas North Tollway to Preston Road and Fishtrap Road from Teel Parkway to Stuber Elementary School;(ii)construction,acquisition and installation of the Westside communications radio tower and (iii)paying legal, fiscal,engineering and architectural fees in connection with these projects, including the costs of issuing the Certificates.The issue is 100% debt service fund related and was issued August 18, 2021, maturing February 15, 2041. Interest payable February 15 and August 15 at rates ranging from 2.0% to 5.0%. Debt Service Fund Page 6 Debt Issuance Details General Obligation Bonds, Series 2022 (Moody's Rated "Aa1" and S&P Rated "AA+") - The proceeds of this $31.600M taxable issue will be used for (i) public safety facilities in the Town, consisting of fire stations, an emergency operations center, a public safety training acility and administrative facilities relating thereto ; (ii) equipping parks, trails and recreational facilities in the Town and the acquisition of land and interests in land for such purposes; (iii) constructing, improving, extending, expanding, upgrading and developing streets and roads, bridges and intersections in the Town and related drainage improvements, utility relocations, landscaping, curbs and sidewalks, traffic safety and operational improvements, entryway signage and other street and road signage and costs associated with such projects, and interests in land as may be necessary for such purposes, and excluding certain road projects to be funded with other obligations; and (iv) paying costs of issuing the Bonds. The issue is 100% debt service fund related and was issued September 29, 2022, maturing February 15, 2042. Interest payable February 15 and August 15 at rates ranging from 4.0% to 5.0%. Certificates of Obligation, Series 2022 (Moody's Rated "Aa1" and S&P Rated "AA+") - The proceeds of this $12.925M taxable issue will be used for (i) acquiring, constructing, installing and equipping additions, improvements, extensions and equipment for the Town’s waterworks and sewer system and the acquisition of land and rights-of-way therefor; (ii) acquiring, constructing and installing stormwater drainage and flood control improvements in the Town, including dredging, channel improvements and related infrastructure and utility relocation and the acquisition of land and interests in land necessary for said improvements; and (iii) paying legal, fiscal, engineering and architectural fees in connection with these projects, including the costs of issuing the Certificates. The issue is 100% water and sewer fund related and was issued October 27,2022, maturing February 15, 2042. Interest payable February 15 and August 15 at rates ranging from 4.75% to 5.0%. General Obligation Refunding and Improvement Bonds, Series 2023 (Moody's Rated "Aa1" and S&P Rated "AA+") - Proceeds of this $36.958 taxable issue will be used for: (i) to refund a portion of the Town's outstanding debt (the "Refunded Obligations") for debt service savings (see "Schedule I – Schedule of Refunded Obligations"); (ii) constructing and equipping parks, trails and recreational facilities in the Town and the acquisition of land and interests in land for such purposes; (iii) constructing, improving, extending, expanding, upgrading and developing streets and roads, bridges and intersections in the Town and related drainage improvements, utility relocations, landscaping, curbs and sidewalks, traffic safety and operational improvements, entryway signage and other street and road signage and costs associated with such projects, and interests in land as may be necessary for such purposes, and excluding certain road projects to be funded with other obligations; and (iv) paying costs of issuing the Bonds. The issue is 100% debt service fund related and was issued September 28, 2023, maturing February 15, 2043. Interest payable February 15 and August 15 at rates ranging from 4.0% to 5.0%. Debt Service Fund Page 7 Debt Issuance Details Combination Tax and Surplus Revenue Certificates of Obligation, Series 2023 (Moody's Rated "Aa1" and S&P Rated "AA+") - The proceeds of this $8.535 taxable issue will be used for: (i) acquiring, constructing, installing and equipping additions, improvements, extensions and equipment for the Town’s waterworks and sewer system and the acquisition of land and rights-of-way therefor, and (ii) paying legal, fiscal, engineering and architectural fees in connection with these projects, including the costs of issuing the Certificates. The issue is 100% water and sewer fund related and was issued September 28,2022, maturing August 15, 2043. Interest payable February 15 and August 15 at rates ranging from 4.75% to 5.0%. General Obligation Bonds, Series 2024 (S&P Rated "AA+" and Fitch Rated "AA+”) - Proceeds from the sale of the Bonds will be used for: (i) public safety facilities in the Town, consisting of fire stations, an emergency operations center, a public safety training facility and administrative facilities relating thereto; (ii) constructing and equipping parks, trails and recreational facilities in the Town and the acquisition of land and interests in land for such purposes; (iii) constructing, improving, extending, expanding, upgrading and developing streets and roads, bridges and intersections in the Town and related drainage improvements, utility relocations, landscaping, curbs and sidewalks, traffic safety and operational improvements, entryway signage and other street and road signage and costs associated with such projects, and interests in land as may be necessary for such purposes, and excluding certain road projects to be funded with other obligations; and (iv) paying costs of issuing the Bonds. Waterworks and Sewer System Revenue Bonds, Series 2024 (S&P Rated "AA-" and Fitch Rated "AA”) - Proceeds from the sale of the Bonds will be used for: (i) the acquisition, construction, installation and equipment of additions, improvements and extensions to the System, and (ii) paying the costs associated with the issuance of the Bonds. Debt Service Fund Page 8 Principal Outstanding 2015 General Obligation Bonds 2015 General Obligation Refunding Bonds 2016 Certificates of Obligation 6,305,000 2036 2016 General Obligation Bonds 3,310,000 2036 2017 Certificates of Obligation 2018 General Obligation Bonds 2,915,000 2038 2018 Certificates of Obligation 9,225,000 2038 2019 General Obligation Bonds 3,125,000 2039 2019 Certificates of Obligation 2020 Certificates of Obligation 8,875,000 2040 2021 General Obligation Bonds 5,775,000 2041 2021 Certificates of Obligation 30,460,000 2041 2022 General Obligation Bonds 27,720,000 2042 2023 General Obligation Refunding Bonds 1,750,000 2033 2023 General Obligation Bonds 32,595,000 2043 2024 General Obligation Bonds 31,825,000 2044 2025 General Obligation Bonds 18,560,000 2045 2025 General Obligation Refunding Bonds 9,425,000 2035 Principal Outstanding 2027 2015 General Obligation Refunding Bonds 2026 2016 Certificates of Obligation 2036 2017 Certificates of Obligation 2037 2018 Certificates of Obligation 2038 2019 Certificates of Obligation 2039 2022 Certificates of Obligation 2042 2023 General Obligation Refunding Bonds 2033 2023 Certificates of Obligation 2043 2024 Revenue Bonds 31,250,000 2044 2025 General Obligation Refunding Bonds 5,370,000 2034 2025 Revenue Bonds 33,095,000 2045 Outstanding Principal on Debt Tax Supported Debt As of 9/30/2025 Issue Final Maturity Water/Sewer/Drainage Supported Debt As of 9/30/2025 175,000 2026 1,269,300 2026 7,745,000 2037 211,120,434$ 10,066,134 2039 2014 Certificates of Obligation 1,325,000 Issue Final Maturity 530,700 105,509,569$ 835,000 690,000 3,403,869 7,300,000 11,585,000 7,745,000 2,380,000 Debt Service Fund Page 9 8,120,000 649,538 8,769,538 6,095,000 350,959 6,445,959 2038 12,343,186 2,296,203 14,639,389 TOTALS 211,120,434$ 75,898,085$ 287,018,519$ 11,643,078 1,850,715 13,493,793 2041 10,535,000 1,018,081 11,553,081 2040 17,417,135 2035 13,602,192 3,815,857 17,418,049 2037 12,695,767 2,773,978 15,469,745 2034 13,059,773 4,357,362 2027 10,547,894 8,082,430 18,630,324 2032 12,274,935 5,419,784 17,694,719 2030 11,235,097 6,473,048 17,708,145 2031 11,761,253 5,940,627 17,701,880 2026 12,638,512 8,506,816 21,145,328 Principal and Interest Debt Schedule Tax Supported Debt Service As of 9/30/2025 Year Principal Interest Total 2043 2028 11,075,313 7,565,680 18,640,993 2029 11,611,469 7,020,387 18,631,856 2033 12,792,354 4,894,225 17,686,579 2036 13,264,611 3,283,139 16,547,750 2039 10,895,000 1,425,381 12,320,381 2042 2045 1,260,000 31,500 1,291,500 2044 3,670,000 142,375 3,812,375 Debt Service Fund Page 10 Principal and Interest Debt Schedule 2037 5,634,234 2,099,807 7,734,041 2038 5,821,815 1,841,804 7,663,619 5,653,656 4,680,000 341,050 5,021,050 TOTALS 102,904,572$ 49,510,980$ 152,415,552$ 2039 5,386,923 1,585,523 6,972,446 2042 5,835,000 832,406 6,667,406 2041 5,580,000 1,090,119 6,670,119 2040 5,335,000 1,333,881 6,668,881 2043 2044 5,085,000 568,656 2035 5,232,808 2,600,809 7,833,617 2036 5,475,389 2,355,417 7,830,806 2033 5,922,646 3,127,788 9,050,434 2034 5,850,227 2,855,720 8,705,947 2027 4,637,106 4,625,445 9,262,551 2028 4,769,687 4,387,295 9,156,982 2032 5,660,065 3,395,891 9,055,956 2030 5,164,903 3,906,602 9,071,505 2029 5,003,532 4,150,938 9,154,470 Water/Sewer/Drainage Supported Debt Service As of 9/30/2025 Year Principal Interest Total 2045 2,585,000 129,250 2,714,250 2026 3,831,489 4,627,756 8,459,245 2031 5,413,748 3,654,823 9,068,571 Debt Service Fund Page 11 OTHER FUNDS Revenue Category Parks Impact Fees Internal Service Special Revenue Hotel Property Tax - - - 1,832,441 - Sales Tax - - - 9,439,436 302,675 Investment Income 40,000 600,000 270,000 84,850 2,000 License, Fees & Permits - - - 300,000 - Impact Fees - 10,950,000 - 800,000 - Charges for Services 1,550,000 - 8,846,100 - - Contribution 800,000 - - - - Miscellaneous - 300,000 450,000 78,893 - Revenue Total $2,390,000 $11,850,000 $9,566,100 $12,535,620 $304,675 Other Other Funds Revenues By Source Parks 7% Impact Fees 32% Internal Service 26% Special Revenue 34% Hotel 1% Other Funds Page 1 TIRZ #1 Fund Description The Town of Prosper designated a certain area within the Town as Tax Increment Reinvestment Zone Number 1 in 2008. The Town Council desires to promote the development or redevelopment of said geographic area by designation of a reinvestment zone, as authorized by the Tax Increment Financing Act, Chapter 311 of the Texas Tax Code. This fund is to account for the restricted revenue sources detailed in the agreement along with the reimbursements to the developer for agreed upon expenditures. Other Funds Page 2 FUND ACCOUNT TYPE ACTUAL 2023-2024 ORIGINAL 2024-2025 ADOPTED AMENDED 2024-2025 ADOPTED BUDGET 2025-2026 PLANNING YEAR 2026-2027 PLANNING YEAR 2027-2028 PLANNING YEAR 2028-2029 PLANNING YEAR 2029-2030 REVENUES Impact Fee Revenue 2,450,253 800,000 906,476 800,000 800,000 800,000 800,000 800,000 Property Taxes-Town 1,108,174 1,269,687 1,269,687 1,376,961 1,835,361 2,205,620 2,649,931 2,649,931 Property Taxes-County 231,790 268,202 268,202 295,022 324,524 356,977 392,675 392,675 Property Taxes-Rollback Taxes 486,411 - - - - - - - Sales Taxes - Town 1,219,048 1,293,986 1,293,986 1,386,765 1,483,905 1,587,850 1,699,080 1,818,070 Sales Taxes - EDC 1,020,952 1,086,948 1,086,948 1,161,416 1,242,771 1,329,824 1,422,980 1,522,634 Investment Income 130,910 75,000 137,745 50,000 50,000 50,000 50,000 50,000 TOTAL REVENUES 6,647,537$ 4,793,823$ 4,963,044$ 5,070,164$ 5,736,561$ 6,330,272$ 7,014,666$ 7,233,310$ EXPENDITURES Developer Reimbursement 5,096,884 4,793,823 6,066,936 6,483,373 7,111,389 7,833,062 8,663,928 8,663,928 TOTAL EXPENDITURES 5,096,884$ 4,793,823$ 6,066,936$ 6,483,373$ 7,111,389$ 7,833,062$ 8,663,928$ 8,663,928$ Period Excess / (Deficit)1,550,656$ -$ (1,103,892)$ (1,413,209)$ (1,374,828)$ (1,502,790)$ (1,649,262)$ (1,430,618)$ NET CHANGE IN FUND BALANCE 1,550,656$ -$ (1,103,892)$ (1,413,209)$ (1,374,828)$ (1,502,790)$ (1,649,262)$ (1,430,618)$ BEGINNING FUND BALANCE 991,445$ 25,000$ 2,542,101$ 1,438,209$ 25,000$ (1,349,828)$ (2,852,618)$ (4,501,880)$ ENDING FUND BALANCE 2,542,101$ 25,000$ 1,438,209$ 25,000$ (1,349,828)$ (2,852,618)$ (4,501,880)$ (5,932,498)$ TIRZ # 1 Fund Summary Other Funds Page 3 TIRZ #2 Fund Description The Town of Prosper designated a certain area within the Town as Tax Increment Reinvestment Zone Number 2 in 2013. The Town Council desires to promote the development or redevelopment of said geographic area by designation of a reinvestment zone, as authorized by the Tax Increment Financing Act, Chapter 311 of the Texas Tax Code. This fund is to account for the restricted revenue sources detailed in the agreement along with the reimbursements to the developer for agreed upon expenditures. Other Funds Page 4 FUND ACCOUNT TYPE ACTUAL 2023-2024 ORIGINAL 2024-2025 ADOPTED AMENDED 2024-2025 ADOPTED BUDGET 2025-2026 PLANNING YEAR 2026-2027 PLANNING YEAR 2027-2028 PLANNING YEAR 2028-2029 PLANNING YEAR 2029-2030 REVENUES Property Taxes-Town 39,537 117,783 117,783 151,173 139,926 148,322 155,738 155,738 Property Taxes-County 8,270 8,441 24,217 9,285 10,028 10,630 11,161 11,161 Property Taxes-Rollback Taxes 44,560 - - - - - - - Sales Taxes - Town 7,391 2,000 2,000 2,200 2,420 2,662 2,928 3,188 Sales Taxes - EDC 7,391 2,000 2,000 2,200 2,420 2,662 2,928 3,188 Investment Income 3,224 1,500 2,737 1,500 1,500 1,500 1,500 1,500 TOTAL REVENUES 110,373$ 131,724$ 148,737$ 166,358$ 156,294$ 165,776$ 174,255$ 174,776$ EXPENDITURES Developer Reimbursement 110,272 131,724 131,724 184,122 140,730 145,505 150,553 151,073 TOTAL EXPENDITURES 110,272$ 131,724$ 131,724$ 184,122$ 140,730$ 165,776$ 174,255$ 174,776$ Period Excess / (Deficit)101$ -$ 17,013$ (17,764)$ 15,564$ -$ -$ -$ NET CHANGE IN FUND BALANCE 101$ -$ 17,013$ (17,764)$ 15,564$ -$ -$ -$ BEGINNING FUND BALANCE 25,650$ 25,000$ 25,751$ 42,764$ 25,000$ 40,564$ 40,564$ 40,564$ ENDING FUND BALANCE 25,751$ 25,000$ 42,764$ 25,000$ 40,564$ 40,564$ 40,564$ 40,564$ TIRZ # 2 Fund Summary Other Funds Page 5 Crime Control and Prevention District Description The Town of Prosper held a special election in 2018 that established a Crime Control and Prevention Special Purpose District allowed under Texas Local Government Code, Chapter 363 and Texas Tax Code, Section 323.105. The voters approved the Crime Control and Prevention District for five years, and in 2023, approved the District for an additional 20 years through 2043, at which time voters will have to reaffirm or repeal. Crime Control and Prevention District is dedicated to crime reduction programs and the dedication of a one-fourth of one percent sales and use tax. The sales and use tax collected will be used to support the cost of crime control and crime prevention including costs of personnel, administration, expansion, enhancement, and capital expenditures. The implementation of the Crime Control and Prevention District funded twelve and a half existing Police Officers plus additional personnel costs. In FY 2025-2026, the fund will be transfer revenue to the General Fund to cover personnel expenses for Police Officers that will now all be housed within the General Fund. Other Funds Page 6 FUND ACCOUNT TYPE ACTUAL 2023-2024 ORIGINAL 2024-2025 ADOPTED AMENDED 2024-2025 ADOPTED BUDGET 2025-2026 PLANNING YEAR 2026-2027 PLANNING YEAR 2027-2028 PLANNING YEAR 2028-2029 PLANNING YEAR 2029-2030 REVENUES Sales Taxes 3,018,090 3,478,456 3,203,844 3,426,536 3,532,238 3,708,850 3,894,292 4,089,007 Investment Income 268 1,200 7,605 1,200 1,200 1,200 1,200 1,200 TOTAL REVENUES 3,018,358$ 3,479,656$ 3,211,449$ 3,427,736$ 3,533,438$ 3,710,050$ 3,895,492$ 4,090,207$ EXPENDITURES Personnel 3,031,617 3,344,835 3,344,835 - - - - - Other 10,730 1,200 1,200 1,200 1,200 1,200 1,200 1,200 Transfer Out - - - 3,426,536 3,532,238 3,708,850 3,894,292 4,089,007 TOTAL EXPENDITURES 3,042,347$ 3,346,035$ 3,346,035$ 3,427,736$ 3,533,438$ 3,710,050$ 3,895,492$ 4,090,207$ Period Excess / (Deficit)(23,990)$ 133,621$ (134,586)$ -$ -$ -$ -$ -$ NET CHANGE IN FUND BALANCE (23,990)$ 133,621$ (134,586)$ -$ -$ -$ -$ -$ BEGINNING FUND BALANCE 422,055$ 415,972$ 398,065$ 263,479$ 263,479$ 263,479$ 263,479$ 263,479$ ENDING FUND BALANCE 398,065$ 549,593$ 263,479$ 263,479$ 263,479$ 263,479$ 263,479$ 263,479$ Crime Control and Prevention Special Purpose District Other Funds Page 7 Fire Control, Prevention, and Emergency Medical Services District Description The Town of Prosper held a special election in 2018 that established a Fire Control, Prevention, and Emergency Medical Services Special Purpose District allowed under Texas Local Government Code, Chapter 344 and Texas Tax Code, Section 321.106. Fire Control, Prevention and Emergency Medical Services District is dedicated to fire safety and emergency medical services programs and the dedication of a one-fourth of one percent sales and use tax. The voters approved the Fire Control, Prevention, and Emergency Medical Services District for the next five years, and in 2023, approved the District for an additional 20 years through 2043, at which time voters will have to reaffirm or repeal. The sales and use tax collected will be used to support the cost of fire control, prevention, and emergency services including costs of personnel, administration, expansion, enhancement, and capital expenditures. The implementation of the Fire Control, Prevention, and Emergency Medical Services District funded twelve and a half existing Firefighter/Paramedics plus additional personnel costs. In FY 2025-2026, the fund will be transfer revenue to the General Fund to cover personnel expenses for Firefighter/ Paramedics that will now all be housed within the General Fund. Other Funds Page 8 FUND ACCOUNT TYPE ACTUAL 2023-2024 ORIGINAL 2024-2025 ADOPTED AMENDED 2024-2025 ADOPTED BUDGET 2025-2026 PLANNING YEAR 2026-2027 PLANNING YEAR 2027-2028 PLANNING YEAR 2028-2029 PLANNING YEAR 2029-2030 REVENUES Sales Taxes 3,015,318 3,478,456 3,236,018 3,460,319 3,567,710 3,746,095 3,933,400 4,130,070 Investment Income 4,962 1,200 1,200 600 600 600 600 600 TOTAL REVENUES 3,020,280$ 3,479,656$ 3,237,218$ 3,460,919$ 3,568,310$ 3,746,695$ 3,934,000$ 4,130,670$ EXPENDITURES Personnel 3,081,905 3,541,860 3,541,860 - - - - - Other 10,730 2,400 2,400 2,400 2,400 2,400 2,400 2,400 Transfer Out - - - 3,458,519 3,565,910 3,744,295 3,931,600 4,128,270 TOTAL EXPENDITURES 3,092,635$ 3,544,260$ 3,544,260$ 3,460,919$ 3,568,310$ 3,746,695$ 3,934,000$ 4,130,670$ Period Excess / (Deficit)(72,355)$ (64,604)$ (307,042)$ -$ -$ -$ -$ -$ NET CHANGE IN FUND BALANCE (72,355)$ (64,604)$ (307,042)$ -$ -$ -$ -$ -$ BEGINNING FUND BALANCE 455,293$ 594,057$ 382,938$ 75,896$ 75,896$ 75,896$ 75,896$ 75,896$ ENDING FUND BALANCE 382,938$ 529,453$ 75,896$ 75,896$ 75,896$ 75,896$ 75,896$ 75,896$ Fire Control, Prevention and Emergency Medical Services Special Purpose District Other Funds Page 9 Park Improvement/Dedication Fund Description Park Improvement Fund ‐ This fund is to account for contributions to the Town for improvements to Town parks per development agreements. Developers are reimbursed for the reasonable costs of any park improvements constructed and accepted by the Town. For multi‐family development projects and for complete phases of a single‐family subdivision plat, the Developer may elect to apply the entire amount to be reimbursed under this section as a credit against park fees due for the residential development, provided that the application of the credit does not result in a partial fee for any dwelling unit, in accordance with guidelines established by the Town. The Town shall retain sole discretion to determine whether to accept proposed park improvements. Park Dedication Fund ‐ This fund is to account for contributions to the Town for the creation of parks within the Town per development agreements. Fund expenditures must be used for the acquisition, development, expansion, or upgrading of parks. Other Funds Page 10 FUND ACCOUNT TYPE ACTUAL 2023-2024 ORIGINAL 2024-2025 ADOPTED AMENDED 2024-2025 ADOPTED BUDGET 2025-2026 PLANNING YEAR 2026-2027 PLANNING YEAR 2027-2028 PLANNING YEAR 2028-2029 PLANNING YEAR 2029-2030 REVENUES Park Dedication Fees 909,971 600,000 1,303,972 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 Park Improvement Fees 761,210 800,000 1,123,484 800,000 800,000 800,000 800,000 800,000 Park Dedication-Interest 41,223 36,000 43,728 20,000 20,000 20,000 20,000 20,000 Park Improvement-Interest 40,764 38,000 38,000 20,000 20,000 20,000 20,000 20,000 TOTAL REVENUES 1,753,169$ 1,474,000$ 2,509,184$ 2,390,000$ 2,390,000$ 2,390,000$ 2,390,000$ 2,390,000$ EXPENDITURES General - Park Dedication 1,363,800 1,810,050 1,810,050 1,400,000 - - - - General - Park Improvement 1,492,455 515,000 515,000 750,000 - - - - TOTAL EXPENDITURES 2,856,255$ 2,325,050$ 2,325,050$ 2,150,000$ -$ -$ -$ -$ Period Excess / (Deficit)(1,103,086)$ (851,050)$ 184,134$ 240,000$ 2,390,000$ 2,390,000$ 2,390,000$ 2,390,000$ NET CHANGE IN FUND BALANCE (1,103,086)$ (851,050)$ 184,134$ 240,000$ 2,390,000$ 2,390,000$ 2,390,000$ 2,390,000$ BEGINNING FUND BALANCE 2,335,476$ 2,235,938$ 1,232,390$ 1,416,524$ 1,656,524$ 4,046,524$ 6,436,524$ 8,826,524$ PARK DEDICATION ENDING FUND BALANCE 1,175,203$ 51,880$ 712,853$ 882,853$ 2,452,853$ 4,022,853$ 5,592,853$ 7,162,853$ PARK IMPROVEMENT ENDING FUND BALANCE 57,187$ 1,333,008$ 703,671$ 773,671$ 1,593,671$ 2,413,671$ 3,233,671$ 4,053,671$ Park Dedication/Improvement Fund Summary Other Funds Page 11 Impact Fee Fund Description Impact Fees were established to assure the availability of funds for major capital projects needed as a result of development. They are broken out into the following four funds: East Thoroughfare, West Thoroughfare, Water, and Wastewater. The laws governing the collection and disbursement of impact fees require separate accounting and reporting of these funds. Additionally, an analysis and update of the fee structure is required every five years. Appropriations from these funds are being utilized to provide supplemental funding for eligible capital improvement projects. Other Funds Page 12 FUND ACCOUNT TYPE ACTUAL 2023-2024 ORIGINAL 2024-2025 ADOPTED AMENDED 2024-2025 ADOPTED BUDGET 2025-2026 PLANNING YEAR 2026-2027 PLANNING YEAR 2027-2028 PLANNING YEAR 2028-2029 PLANNING YEAR 2029-2030 REVENUES Impact Fees 3,467,614 3,500,000 3,500,000 3,250,000 3,250,000 3,250,000 3,250,000 3,250,000 Investment Income 391,660 290,000 290,000 200,000 200,000 200,000 200,000 200,000 TOTAL REVENUES 3,859,274$ 3,790,000$ 3,790,000$ 3,450,000$ 3,450,000$ 3,450,000$ 3,450,000$ 3,450,000$ EXPENDITURES Operations-Developer Agreements 27,508 1,790,533 2,099,188 1,790,533 245,000 145,000 145,000 145,000 Capital 56,557 - - - - - - - TOTAL EXPENDITURES 84,065$ 1,790,533$ 2,099,188$ 1,790,533$ 245,000$ 145,000$ 145,000$ 145,000$ Period Excess / (Deficit)3,775,209$ 1,999,467$ 1,690,812$ 1,659,467$ 3,205,000$ 3,305,000$ 3,305,000$ 3,305,000$ OTHER FINANCING Transfers Out (3,127,286) (2,000,000) (2,007,309) (4,300,000) (3,000,000) (3,000,000) (3,000,000) (3,000,000) TOTAL OTHER FINANCING SOURCES (USES)(3,127,286)$ (2,000,000)$ (2,007,309)$ (4,300,000)$ (3,000,000)$ (3,000,000)$ (3,000,000)$ (3,000,000)$ NET CHANGE IN FUND BALANCE 647,923$ (533)$ (316,497)$ (2,640,533)$ 205,000$ 305,000$ 305,000$ 305,000$ BEGINNING FUND BALANCE 7,234,881$ 7,647,030$ 7,882,804$ 7,566,307$ 4,925,774$ 5,130,774$ 5,435,774$ 5,740,774$ ENDING UNRESTRICTED FUND BALANCE 7,882,804$ 7,646,497$ 7,566,307$ 4,925,774$ 5,130,774$ 5,435,774$ 5,740,774$ 6,045,774$ Water Impact Fee Fund Summary Other Funds Page 13 FUND ACCOUNT TYPE ACTUAL 2023-2024 ORIGINAL 2024-2025 ADOPTED AMENDED 2024-2025 ADOPTED BUDGET 2025-2026 PLANNING YEAR 2026-2027 PLANNING YEAR 2027-2028 PLANNING YEAR 2028-2029 PLANNING YEAR 2029-2030 REVENUES Impact Fees 1,660,835 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 Equity Fees 285,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 Investment Income 193,818 125,000 130,065 100,000 100,000 100,000 100,000 100,000 TOTAL REVENUES 2,139,653$ 2,425,000$ 2,430,065$ 2,400,000$ 2,400,000$ 2,400,000$ 2,400,000$ 2,400,000$ EXPENDITURES Operations-Developer Reimbursements 439,518 558,726 558,726 558,726 273,274 273,274 273,274 273,274 TOTAL EXPENDITURES 439,518$ 558,726$ 558,726$ 558,726$ 273,274$ 273,274$ 273,274$ 273,274$ Period Excess / (Deficit)1,700,134$ 1,866,274$ 1,871,339$ 1,841,274$ 2,126,726$ 2,126,726$ 2,126,726$ 2,126,726$ OTHER FINANCING Transfers Out (162,599) (3,531,622) (3,538,931) (2,568,378) (2,000,000) (2,000,000) (2,000,000) (2,000,000) TOTAL OTHER FINANCING SOURCES (USES)(162,599)$ (3,531,622)$ (3,538,931)$ (2,568,378)$ (2,000,000)$ (2,000,000)$ (2,000,000)$ (2,000,000)$ NET CHANGE IN FUND BALANCE 1,537,535$ (1,665,348)$ (1,667,592)$ (727,104)$ 126,726$ 126,726$ 126,726$ 126,726$ BEGINNING FUND BALANCE 2,710,626$ 2,982,634$ 4,248,161$ 2,580,569$ 1,853,465$ 1,980,191$ 2,106,917$ 2,233,643$ -$ ENDING UNRESTRICTED FUND BALANCE 4,248,161$ 1,317,286$ 2,580,569$ 1,853,465$ 1,980,191$ 2,106,917$ 2,233,643$ 2,360,369$ Wastewater Impact Fee Fund Summary Other Funds Page 14 FUND ACCOUNT TYPE ACTUAL 2023-2024 ORIGINAL 2024-2025 ADOPTED AMENDED 2024-2025 ADOPTED BUDGET 2025-2026 PLANNING YEAR 2026-2027 PLANNING YEAR 2027-2028 PLANNING YEAR 2028-2029 PLANNING YEAR 2029-2030 REVENUES Impact Fees 1,005,046 1,000,000 1,100,000 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 Investment Income 163,177 120,000 120,000 100,000 100,000 100,000 100,000 100,000 TOTAL REVENUES 1,168,223$ 1,120,000$ 1,220,000$ 1,300,000$ 1,300,000$ 1,300,000$ 1,300,000$ 1,300,000$ EXPENDITURES Operations-Developer Reimbursements 314,940 237,074 237,074 250,000 250,000 250,000 250,000 250,000 Capital 48,763 - - - - - - - TOTAL EXPENDITURES 363,703$ 237,074$ 237,074$ 250,000$ 250,000$ 250,000$ 250,000$ 250,000$ Period Excess / (Deficit)804,520$ 882,926$ 982,926$ 1,050,000$ 1,050,000$ 1,050,000$ 1,050,000$ 1,050,000$ OTHER FINANCING Transfers Out - (2,500,000) (2,529,491) (2,400,000) (1,000,000) (1,000,000) (1,000,000) (1,000,000) TOTAL OTHER FINANCING SOURCES (USES)-$ (2,500,000)$ (2,529,491)$ (2,400,000)$ (1,000,000)$ (1,000,000)$ (1,000,000)$ (1,000,000)$ NET CHANGE IN FUND BALANCE 804,520$ (1,617,074)$ (1,546,565)$ (1,350,000)$ 50,000$ 50,000$ 50,000$ 50,000$ BEGINNING FUND BALANCE 2,572,328$ 2,690,574$ 3,376,848$ 1,830,283$ 480,283$ 530,283$ 580,283$ 630,283$ ENDING UNRESTRICTED FUND BALANCE 3,376,848$ 1,073,500$ 1,830,283$ 480,283$ 530,283$ 580,283$ 630,283$ 680,283$ East Thoroughfare Impact Fee Fund Summary Other Funds Page 15 FUND ACCOUNT TYPE ACTUAL 2023-2024 ORIGINAL 2024-2025 ADOPTED AMENDED 2024-2025 ADOPTED BUDGET 2025-2026 PLANNING YEAR 2026-2027 PLANNING YEAR 2027-2028 PLANNING YEAR 2028-2029 PLANNING YEAR 2029-2030 REVENUES Impact Fees 5,090,270 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 Investment Income 388,600 200,000 300,000 200,000 200,000 200,000 200,000 200,000 TOTAL REVENUES 5,478,870$ 4,700,000$ 4,800,000$ 4,700,000$ 4,700,000$ 4,700,000$ 4,700,000$ 4,700,000$ EXPENDITURES Operations-Developer Agreements 512,992 5,086,548 5,086,548 1,500,000 1,700,000 1,300,000 600,000 600,000 TOTAL EXPENDITURES 512,992$ 5,086,548$ 5,086,548$ 1,500,000$ 1,700,000$ 1,300,000$ 600,000$ 600,000$ Period Excess / (Deficit)4,965,878$ (386,548)$ (286,548)$ 3,200,000$ 3,000,000$ 3,400,000$ 4,100,000$ 4,100,000$ OTHER FINANCING Transfers In 167,514 - - - - - - - Transfers Out (300,000) (5,000,000) (5,029,491) (3,000,000) (2,000,000) (2,000,000) (2,000,000) (2,000,000) TOTAL OTHER FINANCING SOURCES (USES)467,514$ (5,000,000)$ (5,029,491)$ (3,000,000)$ (2,000,000)$ (2,000,000)$ (2,000,000)$ (2,000,000)$ NET CHANGE IN FUND BALANCE 4,498,364$ (5,386,548)$ (5,316,039)$ 200,000$ 1,000,000$ 1,400,000$ 2,100,000$ 2,100,000$ BEGINNING FUND BALANCE 5,065,664$ 8,273,700$ 9,564,028$ 4,247,989$ 4,447,989$ 5,447,989$ 6,847,989$ 8,947,989$ ENDING FUND BALANCE 9,564,028$ 2,887,152$ 4,247,989$ 4,447,989$ 5,447,989$ 6,847,989$ 8,947,989$ 11,047,989$ West Thoroughfare Impact Fee Fund Summary Other Funds Page 16 Hotel Occupancy Tax Fund The Hotel Occupancy Tax Fund collects revenue from a 7% tax on hotel rooms rented in Prosper. The revenue must be used to promote the town’s hotel industry. Eligible expenditures are subject to a two-part test. They must put “heads in beds” and be included as one of the nine categories allowed by state law. Other Funds Page 17 FUND ACCOUNT TYPE ACTUAL 2023-2024 ORIGINAL 2024-2025 ADOPTED AMENDED 2024-2025 ADOPTED BUDGET 2025-2026 PLANNING YEAR 2026-2027 PLANNING YEAR 2027-2028 PLANNING YEAR 2028-2029 PLANNING YEAR 2029-2030 REVENUES Hotel Occupancy Tax - 57,125 57,125 302,675 321,002 339,329 357,656 380,431 Investment Income - 2,000 2,000 2,000 2,000 2,000 2,000 2,000 TOTAL REVENUES -$ 59,125$ 59,125$ 304,675$ 323,002$ 341,329$ 359,656$ 382,431$ EXPENDITURES Development Agreement - 28,563 28,563 100,892 110,055 119,219 128,382 139,769 TOTAL EXPENDITURES -$ 28,563$ 28,563$ 100,892$ 110,055$ 119,219$ 128,382$ 139,769$ Period Excess / (Deficit)-$ 30,562$ 30,562$ 203,783$ 212,947$ 222,110$ 231,274$ 242,662$ NET CHANGE IN FUND BALANCE -$ 30,562$ 30,562$ 203,783$ 212,947$ 222,110$ 231,274$ 242,662$ BEGINNING FUND BALANCE -$ -$ -$ 30,562$ 234,345$ 447,292$ 669,402$ 900,676$ ENDING FUND BALANCE -$ 30,562$ 30,562$ 234,345$ 447,292$ 669,402$ 900,676$ 1,143,338$ Hotel Occupancy Tax Fund Other Funds Page 18 Special Revenue Funds Description Special Revenue Funds are used to account for the proceeds of specific revenue sources that are normally restricted to expenditures for specified purposes. The following funds have been consolidated and presented in one summary. Tree Mitigation Fee ‐ This fee is received from the development community in lieu of replanting trees, or preserving existing trees per the Town's Tree Preservation ordinance. Court Technology Fund ‐ This fund is to account for a misdemeanor offense and pay a technology fee of $4 as technology cost of the Court. These funds are used to finance the purchase of, or to maintain technology enhancements for the Municipal Court for the following: computer systems, networks, hardware and software, electric kiosks, electronic ticket writers, and docket management systems. Court Security Fund ‐ This fund is used to account for a misdemeanor offense and pay a $4.90 security fee as a cost of the court. These funds are used to finance security personnel, services and items related to the facility that house the operations of the municipal court.  Contributions Fund ‐ This fund is used to account for various special revenue sources. Typical revenues seen in this fund would include Police Department donations, Fire Department donations, Police Seized funds, Child Safety funds, and developer contributions. Coronavirus Aid, Relief, and Economic Security (CARES Act Fund) American Rescue Plan Act (ARPA) Fund ‐ These fund are used to account for grant funds awarded and expenditures related to the CARES act and the ARPA act. The first round of ARPA funds was received in fiscal year 20/21 and the second round was received in fiscal year 21/22. The funds were expended in fiscal year 23/24 on a wastewater infrastructure  project. This led to a decrease in fund balance in the Special Revenue Funds. Other Funds Page 19 FUND ACCOUNT TYPE ACTUAL 2023-2024 ORIGINAL 2024-2025 ADOPTED AMENDED 2024-2025 ADOPTED BUDGET 2025-2026 PLANNING YEAR 2026-2027 PLANNING YEAR 2027-2028 PLANNING YEAR 2028-2029 PLANNING YEAR 2029-2030 REVENUES Police Donations 19,721 15,500 23,810 15,500 15,500 15,500 15,500 15,500 Fire Donations 18,656 15,500 15,500 15,500 15,500 15,500 15,500 15,500 Child Safety Fees 29,403 28,000 28,000 28,000 28,000 28,000 28,000 28,000 Court Security Revenue 12,405 8,525 13,455 8,525 8,525 8,525 8,525 8,525 Municipal Jury Revenue 249 - 340 170 170 170 170 170 Court Technology Revenue 10,217 8,198 10,972 8,198 8,198 8,198 8,198 8,198 Tree Mitigation Revenue 204,694 300,000 300,000 300,000 300,000 300,000 300,000 300,000 Escrow Income 167,514 - - - - - - - Cash Seizures 16,378 - - - - - - - Miscellaneous 8,756 3,000 10,288 3,000 3,000 3,000 3,000 3,000 Interest Income 110,653 52,550 53,618 31,550 31,550 31,550 31,550 31,550 TOTAL REVENUES 598,646$ 431,273$ 455,983$ 410,443$ 410,443$ 410,443$ 410,443$ 410,443$ EXPENDITURES General Government 40,027 94,355 79,214 173,060 67,555 67,555 67,555 67,555 Transfers Out 200,000 1,150,000 1,150,000 850,000 - - - - TOTAL EXPENDITURES 40,027$ 94,355$ 79,214$ 1,023,060$ 67,555$ 67,555$ 67,555$ 67,555$ Period Excess / (Deficit)558,619$ 336,918$ 376,769$ (612,617)$ 342,888$ 342,888$ 342,888$ 342,888$ NET CHANGE IN FUND BALANCE 558,619$ 336,918$ 376,769$ (612,617)$ 342,888$ 342,888$ 342,888$ 342,888$ BEGINNING FUND BALANCE 1,797,646$ 515,371$ 2,356,265$ 2,733,034$ 2,120,417$ 2,463,305$ 2,806,193$ 3,149,081$ ENDING FUND BALANCE 2,356,265$ 852,289$ 2,733,034$ 2,120,417$ 2,463,305$ 2,806,193$ 3,149,081$ 3,491,969$ Special Revenue Fund Summary Other Funds Page 20 Vehicle and Equipment Replacement Fund Description The Town established the Vehicle and Equipment Replacement Fund (VERF) in Fiscal Year 2013‐2014 to accumulate sufficient resources to replace existing vehicles and equipment when they reach or exceed their useful life. The internal program was designed for departments to contribute annual payments to the fund based on the number, type, average life expectancy, and the projected replacement cost of the vehicles/equipment. The intent was for funds to be managed to purchase Town vehicles and equipment in a manner that would not create a burden on the Town budget. Annual contributions are determined by amortizing the replacement cost for the life expectancy of the vehicle/equipment and are allocated as charges for services from each department. Balances at the department level are calculated each year and adjustments are made to replacement values as needed. In addition to budgeted annual contributions, each department is credited for proceeds of auctioned vehicles/equipment, as well as interest earned for the year. These proceeds are considered when determining contribution needs for the following fiscal year.  Other Funds Page 21 FUND ACCOUNT TYPE ACTUAL 2023-2024 ORIGINAL 2024-2025 ADOPTED AMENDED 2024-2025 ADOPTED BUDGET 2025-2026 PLANNING YEAR 2026-2027 PLANNING YEAR 2027-2028 PLANNING YEAR 2028-2029 PLANNING YEAR 2029-2030 REVENUES Charges for Services 1,478,966 1,572,064 1,048,042 1,566,797 1,566,797 1,566,797 1,566,797 1,566,797 Auction Proceeds - 150,000 150,000 150,000 150,000 150,000 150,000 150,000 Interest Income 294,584 250,000 250,000 250,000 250,000 250,000 250,000 250,000 TOTAL REVENUES 1,773,550$ 1,972,064$ 1,448,042$ 1,966,797$ 1,966,797$ 1,966,797$ 1,966,797$ 1,966,797$ EXPENDITURES Technology Expenses 59,925 145,200 - 1,089,094 - - - - Equipment Expenses - 526,908 548,142 77,706 - - - - Vehicle Expenses 220 1,866,493 1,745,631 1,972,462 767,936 1,415,000 2,540,000 - TOTAL EXPENDITURES 60,145$ 2,538,601$ 2,293,773$ 3,139,262$ 767,936$ 1,415,000$ 2,540,000$ -$ Period Excess / (Deficit)1,713,405$ (566,537)$ (845,731)$ (1,172,465)$ 1,198,861$ 551,797$ (573,203)$ 1,966,797$ NET CHANGE IN FUND BALANCE 1,713,405$ (566,537)$ (845,731)$ (1,172,465)$ 1,198,861$ 551,797$ (573,203)$ 1,966,797$ BEGINNING FUND BALANCE 4,342,492$ 8,803,250$ 6,055,897$ 5,210,166$ 4,037,701$ 5,236,562$ 5,788,359$ 5,215,156$ ENDING FUND BALANCE 6,055,897$ 8,236,713$ 5,210,166$ 4,037,701$ 5,236,562$ 5,788,359$ 5,215,156$ 7,181,953$ Vehicle and Equipment Replacement Fund Summary Other Funds Page 22 DEPARTMENT MODEL YEAR MAKE MODEL ESTIMATED REPLACEMENT COST Vehicles Fire Operations 2017 Chevy Tahoe 121,901 Fire Operations 2017 Horton Ambulance 429,122 * Fire Operations 2015 Ford F550 Quick Attack Brush Truck 338,814 * Fire Operations 2015 Pierce Aeiral Buck Truck Velocity 100'2,540,000 * Fire Operations 2013 Pierce Puc Pumper 1,415,000 * Parks Operations 2018 Chevy 2500 Silverado Extended Cab 50,000 Public Works/Water 2018 Chevy 1500 Silverado 2WD 51,844 Public Works/Water 2018 Chevy 1500 Silverado 4WD 51,844 Public Works/Wastewater 2017 Freightliner 114SD 4x2 540,882 Public Works/Wastewater 2018 Ford F350 93,991 Police Operations 2020 Chevrolet Tahoe 118,000 ** Police Operations 2020 Chevrolet Tahoe 118,000 ** Police Operations 2020 Chevrolet Tahoe 118,000 ** Police Operations 2020 Chevrolet Tahoe 118,000 ** Police Operations 2020 Chevrolet Tahoe 118,000 ** Police Operations 2020 Chevrolet Tahoe 118,000 ** Police Operations 2020 Chevrolet Tahoe 118,000 *** Police Operations 2020 Chevrolet Tahoe 118,000 *** Police Operations 2020 Chevrolet Tahoe 118,000 *** Total cost of vehicle replacements 6,695,398$ Equipment Parks Operations 2017 Toro 60" Zero Turn Mower 16,000 Parks Operations 2020 Toro 60" Zero Turn Mower 16,000 Parks Operations 2018 Toro 305-D 3-Gang Mower 30,000 Parks Operations 2019 Toro Toro LCE Turboforce Deck 15,706 Total cost of equipment replacements 77,706$ Technology Town Hall Network Equipment 431,170 Police Department Network Equipment 279,272 Public Works Network Equipment 114,006 Fire Station #2 Network Equipment 106,864 Fire Station #3 Network Equipment 83,915 Central Fire Network Equipment 53,833 Parks & Recreation Admin Building Network Equipment 20,034 Total cost of Technology replacements 1,089,094$ Total cost of all replacements 7,862,198$ *Expected to be paid in FY27 or later **Previously Deferred From FY25 ***Deferred from FY25 General Fund Budget Vehicle and Equipment Replacement Listing Items to be replaced in Fiscal Year 2025-2026 Other Funds Page 23 Health Insurance Trust Fund Description The Town of Prosper initiated a self‐funded health and dental plan effective January 1, 2017 for Town employees and their dependents. The Town maintains the Employee Health Insurance Trust Fund to account for the Town's employee health and dental care coverage. In addition, excess insurance has been obtained for an individual unit health and prescription drug claims exceeding $125,000. The Town's claim administrator is UMR for medical claims and Pro-Act for pharmacy claims. Other Funds Page 24 FUND ACCOUNT TYPE ACTUAL 2023-2024 ORIGINAL 2024-2025 ADOPTED AMENDED 2024-2025 ADOPTED BUDGET 2025-2026 PLANNING YEAR 2026-2027 PLANNING YEAR 2027-2028 PLANNING YEAR 2028-2029 PLANNING YEAR 2029-2030 REVENUES Employer Contributions 3,467,157 4,136,107 4,136,107 5,732,137 5,988,942 6,164,285 6,344,889 6,530,911 Employee Contributions 1,013,114 1,006,410 1,477,890 1,499,775 1,574,763 1,653,502 1,736,176 1,822,986 Investment Income 34,341 20,000 4,000 20,000 20,000 20,000 20,000 20,000 Cobra and Stop Loss Reimbursements 368,619 300,000 854,160 300,000 300,000 300,000 300,000 300,000 Transfer In - - 1,100,000 710,000 - - - - TOTAL REVENUES 4,883,230$ 5,462,517$ 7,572,157$ 8,261,912$ 7,883,706$ 8,137,786$ 8,401,064$ 8,673,897$ EXPENDITURES Operating Expenses 426,228 450,000 420,408 453,129 486,361 504,283 523,102 542,861 Claims 4,543,025 4,497,525 6,440,888 7,560,895 7,938,939 8,335,886 8,752,681 9,190,315 Insurance 375,411 419,423 423,176 485,367 509,635 535,116 561,871 589,966 Wellness Program - 6,000 - 6,000 6,000 6,000 6,000 6,000 TOTAL EXPENDITURES 5,344,663$ 5,372,948$ 7,284,472$ 8,505,391$ 8,940,935$ 9,381,285$ 9,843,654$ 10,329,142$ Period Excess / (Deficit)(461,433)$ 89,569$ 287,685$ (243,479)$ (1,057,230)$ (1,243,499)$ (1,442,589)$ (1,655,245)$ NET CHANGE IN FUND BALANCE (461,433)$ 89,569$ 287,685$ (243,479)$ (1,057,230)$ (1,243,499)$ (1,442,589)$ (1,655,245)$ BEGINNING FUND BALANCE 609,567$ 708,756$ 148,134$ 435,819$ 192,340$ (864,889)$ (2,108,387)$ (3,550,977)$ ENDING FUND BALANCE 148,134$ 798,325$ 435,819$ 192,340$ (864,889)$ (2,108,387)$ (3,550,977)$ (5,206,222)$ Months of Claims Expense in Reserve 0.39 2.13 0.81 0.31 (1.31) (3.04) (4.87) (6.80) Health Insurance Fund Summary Other Funds Page 25 CAPITAL PROJECTS FUNDS Capital Projects Funds The Capital Project Funds account for financial resources to be used for the acquisition or construction of major capital assets, infrastructure, and facilities. The Governmental Capital Projects Fund consists of Streets, Parks, and Public Safety projects. The Enterprise Capital Projects Fund consists of Water, Wa stewater, and Drainage projects. These funds are budgeted on a project basis as the project expenditures normally cross over fiscal years and the appropriation stay open until the project is complete. Capital Project Funds Page 1 CAPITAL IMPROVEMENTS PROGRAM GOVERNMENTAL CAPITAL PROJECTS FUND FISCAL YEAR 2026 Resources: Current FY 25 Resources as of 7/31/25 Cash 35,065,112$ Liabilities (2,830,254) Unspent Prior Year Bond Funds 34,059,428 Pending Interest 910,076 Collin County Intersection Improvement Grant 2,800,000 Denton County Bond Program 3,900,000 TxDOT Reimbursement 2,200,000 NTCOG Grant 720,000 Escrow Funds to be Received 75,300 Pending Impact Fee Transfer 300,000 Arestia Reimbursement 230,000 Collin County Open Spaces Grant 448,000 PASO Contribution 950,000 Blue Star Development Contribution 1,035,322 2025 GO Bonds 19,450,000 Remaining unspent budget amount for projects in process (108,849,885) Net unobligated balances and contingencies (9,536,902) Preliminary FY25 Resources: West Thoroughfare Impact Fee Transfers 3,000,000 East Thoroughfare Impact Fee Transfers 2,500,000 Park Improvement Fee Transfers 750,000 Park Development Fee Transfers 1,400,000 Tree Mitigation Fee Transfers 850,000 EDC Contributions 2,500,000 Denton County Bond Program 1,100,000 Interest Income 3,000,000 Capital Dedicated Funds 10,500,000 Projected 2026 GO Bonds 23,297,062 Total Future Resources 48,897,062 Funds available to be committed 39,360,160 Capital Project Funds Page 2 Additional Projects: Streets Projects: Gee Road (US 380-FM 1385) - 2 NB lanes 1,100,000 Coleman (Gorgeous - Prosper Trail) - 4 lanes 15,500,000 Craig Street (Preston - Fifth)4,400,000 Godwin Parkway (DNT - BNSF RR)2,000,000 First St Whitley Place Open Space 250,000 Traffic Signal - Fishtrap & Artesia Boulevard 140,000 Traffic Signal - Teel Pkway & Prairie Drive 140,000 Traffic Improvement Projects 1,500,000 Traffic Signal - Legacy & Prairie 140,000 Traffic Signal - Legacy & Prosper Trail 85,000 Traffic Signal - Legacy & Starwood 85,000 CIP Employee Salaries 400,000 Parks Projects: Downtown Park - Parvin (Broadway/Parvin)200,000 Raymond Community Park Dam Repair 350,000 Playground Shade Structures - Lakewood and Hackberry Parks 200,000 Security Cameras - Raymond Community and Lakewood Parks 250,000 Pecan Grove & Whitley Place HOA Irrigation Seperation 125,000 Mirabella Park (Tellus)500,000 Creekside Park (Shaddock)445,000 Downtown Monumentation, Broadway & Main 255,000 Raymond Community Park, Phase 1 128,000 Dream Park 3,000,000 CIP Employee Salaries 300,000 Prairie Medians 250,000 Richland Medians 150,000 Mahard Medians 500,000 Facility Projects: Parks & Public Works, Phase 1 5,397,062 Facility Improvement Projects 300,000 CIP Employee Salaries 300,000 Unprogrammed: Unprogrammed Streets Projects 320,098 Unprogrammed Parks Projects 350,000 Unprogrammed Public Safety Projects 300,000 Total Additional Projects 39,360,160 PROJECTED REMAINING UNOBLIGATED FUND BALANCE 0 Capital Project Funds Page 3 CAPITAL IMPROVEMENTS PROGRAM WATER/WASTEWATER CAPITAL PROJECTS FUND FISCAL YEAR 2026 Resources: Current FY 25 Resources as of 7/31/25 Cash 16,589,968$ Liabilities (1,259,225) Revenue Bond Required Reserve (571,944) Unspent Prior Year Bond Funds 10,944,108 Pending Interest 396,057 Pending Impact Fee Transfer 1,499,905 EDA Grant 214,081 Escrow Funds 25,000 TxDOT Reimbursement 2,520,000 2025 CO Bonds 33,896,633 Remaining unspent budget amount for projects in process (111,094,130) Net unobligated balances and contingencies (46,839,547) Preliminary FY25 Resources: Interest Income 800,000 Water Impact Fee Transfers 4,300,000 Wastewater Impact Fee Transfers 2,568,378 Projected 2026 Revenue Bonds 26,538,619 Intent to Reimburse Future Bond Issuance 25,798,619 Total Future Resources 60,005,616 Funds available to be committed 13,166,069 Additional Projects: Water Projects: 2312wa 6MG Ground Storage Tank 5,695,000 Craig St 2MG EST Rehabilitation 2,540,000 First Street (DNT - Coleman) - 12" Water Line 2,500,000 US 380 30-inch Water/8" WW Line Relocation 1,800,000 CIP Employee Salaries 300,000 Sewer Projects: CIP Employee Salaries 200,000 Unprogrammed: Unprogrammed Water/Sewer Projects 131,069 Total Additional Projects 13,166,069 PROJECTED REMAINING UNOBLIGATED FUND BALANCE (0) Capital Project Funds Page 4 CAPITAL IMPROVEMENTS PROGRAM DRAINAGE CAPITAL PROJECTS FUND FISCAL YEAR 2026 Resources: Current FY 25 Resources as of 7/31/25 Cash 97,884$ Liabilities - Pending Interest 1,300 Remaining unspent budget amount for projects in process (50,294) Net unobligated balances and contingencies 48,890 Preliminary FY25 Resources: Interest Income 7,800 Transfer from Drainage Fund 200,000 Total Future Resources 207,800 Funds available to be committed 256,690 Additional Projects: Drainage Projects: 2312wa Old Town Regional Detention Pond #2 200,000 Unprogrammed: Unprogrammed Drainage Projects 56,690 Total Additional Projects 256,690 PROJECTED REMAINING UNOBLIGATED FUND BALANCE 0 Capital Project Funds Page 5 MULTI-YEAR CAPITAL PLAN Five‐Year Capital Improvement Program The five‐year CIP is an integral part of the Town’s strategic project planning process related to capital infrastructure for streets, traffic improvements, parks, Town facilities, water, wastewater and drainage lines. Working in conjunction with community officials and community stakeholders, Town staff periodically evaluates the various capital infrastructure needs of the community for inclusion in the annual update of the Capital Improvement Program. Based on the needs identified, the recommended timing and funding for each project is prioritized by the CIP Subcommittee and by Town Council annually during the budget process. Upon direction by the Town Council, the final Capital Improvement Program is adopted with the annual operating and capital budgets. Operating budgets are funded by current revenues, while the capital budgets are funded from various sources, including impact fees, developer contributions, one‐time uses of surplus fund balance or from debt proceeds. Debt service payments for the retirement of debts are built into the operating budgets by allocating I&S property taxes and transfers from other sources.  The following pages  outline the projected needs for the Town. Multi-Year Capital Plan Page 1 CIP Project Prior Yrs FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 TOTAL STREET: Preston Road / First Street Dual Left Turns $ 900 900$ Safety Way (Cook - Technology) 800 800 Gorgeous/McKinley: (LIV Development Agreement) 700 700 First Street (DNT - Coleman) 24,758 24,758 First Street (Elem - DNT) 32,230 32,230 Coit Road (First - Frontier) - 4 Lanes 27,790 27,790 DNT Main Lanes (US 380 - FM 428)7,671 5,500 13,171 Legacy (Prairie - Fishtrap) - 4 lanes 10,000 10,000 US 380 Decelerations Lanes - Denton County 500 900 1,400 Fifth Street Quiet Zone 500 500 Prosper Trail (Coit - Custer) - 2 WB Lanes 1,400 18,000 19,400 Gee Road (US 380 - FM 1385) - 2 WB Lanes 3,900 1,100 20,000 25,000 Coleman (Gorgeous - Prosper Trail) - 4 Lanes 4,022 15,500 19,522 Legacy (First St. - Prosper Trail) 2 SB Lanes (Park Place DA) 200 200 Legacy (First St. - Prosper Trail) 2 SB Lanes (Star Trail DA) 550 550 Frontier Parkway (Legacy - DNT) 300 1,000 6,000 7,300 First Street (Coleman - Craig) 2,500 2,500 Craig Street (Preston - Fifth) 750 4,400 5,150 Parvin (FM 1385 - Legacy) 500 500 Coleman (First - Gorgeous) - 4 Lanes 660 660 Teel Parkway (First - Freeman) 855 855 Prosper Trail (Legacy - DNT) 1,200 1,200 Legacy Drive (Prosper Trail - Parvin) - PISD Reimbursement 10,000 10,000 Gorgeous (LIV - Coleman) 230 230 Godwin Parkway (DNT - BNSF RR) 2,000 2,000 Whitley Place / First St.- Open Space 250 250 Unprogrammed Future Projects 308 308 CIP Summaries 400 400 TOTAL STREET 122,916$ 23,958$ 45,400$ -$ -$ 16,000$ 208,274$ TRAFFIC: Median Lighting US 380 (Mahard - Lovers Ln) $ 300 300$ Traffic Signal - First & Artesia 525 140 665 Traffic Signal - DNT & Frontier Parkway 282 282 Traffic Signal - Teel & Prairie 525 140 665 Traffic Signal First Street/Legacy Drive 992 992 Opticom Repair/Installation 85 85 School Zone Flashers 141 141 Traffic Signal Communications Program Phase 2 of 2 495 495 Traffic Equipment 16 16 Traffic Improvement Projects 767 1,500 2,267 Traffic Signal - Legacy & Prairie 525 140 665 Traffic Signal - Legacy & Prosper Trail 85 650 735 Traffic Signal - Legacy & Starwood 85 650 735 Traffic Signal - First Street & La Cima 525 525 Traffic Signal - Richland Blvd & Walmart/Pandera 525 525 TOTAL TRAFFIC 4,653$ 2,090$ 1,300$ -$ 1,050$ -$ 8,043$ FY 2026 - FY 2030 Capital Improvement Program ($000's) General Fund Projects Multi-Year Capital Plan Page 2 CIP Project Prior Yrs FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 TOTAL PARK: Windsong Park #3 350$ 350$ Lakewood Preserve, Phase 2 (22 Acres/Lights)6 6 Downtown Park (Broadway/Parvin)1,158 200 1,358 Raymond Community Park Dam Repair 350 350 Rec Center Strategic Implementation Plan 100 100 Playground Shade Structures - Lakewood & Hackberry Parks 200 200 Security Cameras - Raymond Community & Lakewood Parks 250 250 Pecan Grove Park Pond Dredging 325 325 Pecan Grove & Whitley Place HOA Irrigation Seperation 125 125 Mirabella Park (Tellus)500 500 Creekside Park (Shaddock)445 445 Doe Branch Trail Connections 2,184 2,184 Downtown Improvements 329 329 Downtown Monumentation 165 165 Downtown Monumentation, Broadway & Main 370 255 625 Downtown Monumentation, First & Main 465 465 Prosper Parking Lot and Alley Improvements 553 553 Raymond Community Park, Phase 1 25,057 128 25,185 Raymond Community Park, Trail / Bridge - Grant Matching 916 916 Frontier Park Pond Repairs 473 350 823 Frontier Park Concrete Repairs 120 120 Parks & Recreation Admin Facility Parking Lot Paving 80 80 Doe Branch Property Masterplan 140 140 Dream Park 3,000 3,000 US 380 Green Ribbon Lndscp- Irrigation (Lovers - Mahard)2,295 2,295 Mahard Median Lndscp (US 380 - S of Prairie)500 500 Prairie Median Lndscp (W of Legacy - Mahard)250 1,000 1,250 Richland Median Lndscp (Prosper Commons - Coit Rd)150 150 Unprogrammed Future Projects 350 350 CIP Salaries 300 300 Prosper Trail Screening (Preston - Deer Run)550 550 Doe Branch Creek Erosion Control 225 225 Parks, Recreation, and Open Space Master Plan Update 140 140 TOTAL PARK 35,111$ 7,003$ 2,240$ -$ -$ -$ 44,354$ FACILITY: Fire Station #4: (Design)951$ 951$ Fire Station #4: (Oher Development Costs)413 413 Fire Station #4: (Construction)11,610 11,610 Fire Station #4: (FF&E)700 700 Town Hall Repairs - N. Parking Lot & Front Steps & Fountain 291 291 Parks and Public Works, Phase 1 5,803 5,397 11,200 Public Safety Fiber Ring 1,000 1,000 Facility Improvement Projects 300 300 Unprogrammed Future Projects 300 300 CIP Salaries 300 300 TOTAL FACILITY 20,768$ 6,297$ -$ -$ -$ -$ 27,065$ TOTAL GENERAL FUND PROJECTS 183,448$ 39,348$ 48,940$ -$ 1,050$ 16,000$ 287,736$ FY 2025 - FY 2029 Capital Improvement Program ($000's) General Fund Projects (continued) Multi-Year Capital Plan Page 3 CIP Project Prior Yrs FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 TOTAL WATER: FM 1461 12-inch Water Line Relocation 6,900$ 6,900$ Parks and Public Works, Phase 1 5,600 5,600 Ground Storage 6 MG Tank 8,100 5,695 13,795 Craig Street 2 MG EST Rehabilitation 460 2,540 3,000 First Street (DNT - Coleman) - 12" Water Line 2,500 2,500 LPP Elevated Storage Tank #2 750 750 LPP Ground Storage Tank, Pumps and NTMWD Meter 1,400 1,400 Godwin Parkway (DNT - BNSF RR)250 250 US 380 30-inch Water/8" WW Line Relocation 1,800 15,300 17,100 CIP Salaries 300 300 TOTAL WATER 21,310$ 12,835$ 15,300$ -$ -$ 2,150$ 51,595$ WASTEWATER: Doe Branch Parallel Interceptor 16,253$ 16,253$ Upper Doe Branch WW Line (Teel - PISD Stadium)8,025 8,025 Doe Branch, Phase 3 WWTP 104,946 104,946 Denton ISD WW Line Reimbursement 532 532 CIP Salaries 200 200 TOTAL WASTEWATER 129,756$ 200$ -$ -$ -$ -$ 129,756$ TOTAL WATER and WASTEWATER 151,066$ 13,035$ 15,300$ -$ -$ 2,150$ 181,351$ Drainage: Old Town Regional Detention Pond # 2 98$ 200$ $ 1,800 2,098$ TOTAL DRAINAGE 98$ 200$ 1,800$ -$ -$ -$ 2,098$ TOTAL ENTERPRISE FUND PROJECTS 151,164$ 13,235$ 17,100$ -$ -$ 2,150$ 183,449$ FY 2024 - FY 2028 Capital Improvement Program ($000's) Enterprise Fund Projects Multi-Year Capital Plan Page 4 Issued FY 26 FY 27 FY 28 FY 29 FY 30 FY 31-35 Total FY 25 FY 26 FY 27 FY 28 FY 29 FY 30 FY 31-35 Prior Years 2025-2026 2026-2027 2027-2028 2028-2029 2029-2030 2030-2035 Cost 2024-2025 2025-2026 2026-2027 2027-2028 2028-2029 2029-2030 2030-2035 01 2118-ST Preston Road / First Street Dual Left Turns: (Design)100,000 100,000 100,000 01 02 2118-ST Preston Road / First Street Dual Left Turns: (Construction)800,000 800,000 800,000 B 02 03 2303-ST Safety Way (Cook - Technology): (MOU approved July 19, 2022)800,000 800,000 800,000 L 03 04 2304-ST Gorgeous/McKinley: (LIV Development Agreement)700,000 700,000 700,000 L 04 05 1512-ST First Street (DNT - Coleman): (Design)2,758,067 2,758,067 2,758,067 A,D 05 06 1512-ST First Street (DNT - Coleman): (Land/Esmt)3,000,000 3,000,000 1,500,000 1,500,000 D 06 07 1512-ST First Street (DNT - Coleman): (Construction)19,000,000 19,000,000 18,000,000 1,000,000 L 9,000,000 07 08 2012-ST Fishtrap (Elem - DNT) - 4 lanes: (Design)1,057,380 1,057,380 857,380 200,000 A,D,L 08 09 2012-ST Fishtrap (Elem - DNT) - 4 lanes: (Land/Esmt)1,700,000 1,700,000 1,700,000 09 10 2012-ST Fishtrap (Elem - DNT) - 4 lanes: (Construction)29,473,352 29,473,352 29,332,871 140,481 A,K,L 10 11 1710-ST Coit Road (First - Frontier) - 4 lanes: (Design)1,334,900 1,334,900 1,334,900 A,X 11 12 1710-ST Coit Road (First - Frontier) - 4 lanes: (Land/Esmt)2,455,000 2,455,000 2,455,000 12 13 1710-ST Coit Road (First - Frontier) - 4 lanes: (Construction)24,000,000 24,000,000 21,909,000 2,091,000 B,I,L 8,950,000 7,797,062 13 14 1937-ST DNT Main Lane (US 380 - FM 428): (Construction)7,671,186 5,500,000 13,171,186 9,862,560 3,308,626 L,X,Z 14 15 2143-ST Legacy (Prairie - Fishtrap) - 4 lanes: (Construction)10,000,000 10,000,000 8,850,000 1,150,000 L,D 15 16 2302-ST US 380 Deceleration Lanes - Denton County: (Construction)500,000 900,000 1,400,000 1,400,000 L 16 17 1925-TR Fifth Street Quiet Zone 500,000 500,000 500,000 L 17 18 2326-ST Prosper Trail (Coit - Custer) - 2 WB lanes: (Design)900,000 900,000 500,000 400,000 A,L,Z 18 19 2326-ST Prosper Trail (Coit - Custer) - 2 WB lanes: (Land/Esmt)500,000 500,000 500,000 A 19 20 2326-ST Prosper Trail (Coit - Custer) - 2 WB lanes: (Construction)18,000,000 18,000,000 18,000,000 14,767,843 20 21 2310-ST Gee Road (US 380 - FM 1385) - 2 NB lanes: (Design)2,200,000 2,200,000 2,200,000 B 21 22 2310-ST Gee Road (US 380 - FM 1385) - 2 NB lanes: (Land/Esmt)1,700,000 1,100,000 2,800,000 2,800,000 B,Z 22 23 2310-ST Gee Road (US 380 - FM 1385) - 2 NB lanes: (Construction)20,000,000 20,000,000 10,000,000 10,000,000 B,Z 23 24 2141-ST Coleman (Gorgeous - Talon) - 4 lanes: (Design)1,202,856 1,202,856 305,712 897,144 D,I 24 25 2141-ST Coleman (Gorgeous - Talon) - 4 lanes: (Land/Esmt)2,819,740 2,819,740 2,794,740 25,000 D 1,500,000 25 26 2141-ST Coleman (Gorgeous - Talon) - 4 lanes: (Construction)15,500,000 15,500,000 15,500,000 15,500,000 26 27 2314-ST Legacy (Fishtrap - Prosper Trail) - 2 SB lanes: (Park Place DA)200,000 200,000 200,000 A 27 28 2315-ST Legacy (Fishtrap - Prosper Trail) - 2 SB lanes: (Star Trail DA)550,000 550,000 550,000 A 28 29 2311-ST Frontier Parkway (Legacy - DNT): (Design)300,000 300,000 300,000 29 30 2311-ST Frontier Parkway (Legacy - DNT): (Construction)6,000,000 6,000,000 6,000,000 30 31 2311-ST Frontier Parkway (Legacy - DNT): (Construction) (DNT Intersection)1,000,000 1,000,000 1,000,000 L 31 32 2305-ST First Street (Coleman - Craig): (Design)500,000 500,000 500,000 L 32 33 2305-ST First Street (Coleman - Craig): (Land/Esmt)2,000,000 2,000,000 2,000,000 A 33 34 2305-ST First Street (Coleman - Craig): (Construction)10,500,000 10,500,000 10,500,000 34 35 2140-ST Craig Street (Preston - Fifth): (Design)369,600 369,600 369,600 35 36 2140-ST Craig Street (Preston - Fifth): (Land/Esmt)380,400 380,400 380,400 36 37 2140-ST Craig Street (Preston - Fifth): (Construction)4,400,000 4,400,000 3,000,000 1,400,000 A,Z 37 38 2208-ST Parvin (FM 1385 - Legacy): (Design)500,000 500,000 500,000 38 39 2208-ST Parvin (FM 1385 - Legacy): (Land/Esmt)2,000,000 2,000,000 2,000,000 39 40 2208-ST Parvin (FM 1385 - Legacy): (Construction)31,000,000 31,000,000 31,000,000 B,Z 40 41 2411-ST Coleman (First - Gorgeous): (Design)660,000 660,000 660,000 41 42 2411-ST Coleman (First - Gorgeous): (Land/Esmt)1,000,000 1,000,000 1,000,000 42 43 2411-ST Coleman (First - Gorgeous): (Construction)8,000,000 8,000,000 8,000,000 43 44 2415-ST Teel Parkway (First - Freeman): (Design)855,510 855,510 855,510 44 45 2415-ST Teel Parkway (First - Freeman): (Land/Esmt)500,000 500,000 500,000 45 46 2415-ST Teel Parkway (First - Freeman): (Construction)9,000,000 9,000,000 9,000,000 46 47 2506-ST Prosper Trail (Legacy - DNT): (Design)1,200,000 1,200,000 1,200,000 A 47 48 2506-ST Prosper Trail (Legacy - DNT): (Land/Esmt)2,000,000 2,000,000 2,000,000 A 48 49 2506-ST Prosper Trail (Legacy - DNT): (Construction)8,000,000 8,000,000 8,000,000 49 50 Legacy Drive (Prosper Trail - Parvin) - PISD Reimbursement 10,000,000 10,000,000 10,000,000 50 51 Legacy Drive (Star Trail - Legacy MS): (Design)800,000 800,000 800,000 51 52 Legacy Drive (Star Trail - Legacy MS): (Land/Esmt)500,000 500,000 500,000 52 53 Legacy Drive (Star Trail - Legacy MS): (Construction)4,500,000 4,500,000 4,500,000 53 54 Prosper Trail (Teel - Legacy): (Design)1,000,000 1,000,000 1,000,000 54 55 Prosper Trail (Teel - Legacy): (Land/Esmt)1,000,000 1,000,000 1,000,000 55 56 Prosper Trail (Teel - Legacy): (Construction)10,000,000 10,000,000 10,000,000 56 57 2529-ST Gorgeous (LIV - Coleman): (Design)230,000 230,000 230,000 Z 57 58 Gorgeous (LIV - Coleman): (Land/Esmt)750,000 750,000 750,000 58 59 Gorgeous (LIV - Coleman): (Construction)1,750,000 1,750,000 1,750,000 59 60 Godwin Parkway (DNT - BNSF RR)2,000,000 2,000,000 2,000,000 A,X 60 61 Whitley Place / First St.- Open Space 250,000 250,000 250,000 L 61 62 CIP Salaries 400,000 400,000 400,000 L 62 63 Remaining Proposition 3: GO Bond Funds 0 63 64 Unprogrammed Future Projects 307,938 64 PARTNER ENTITY PROJECTS NOT PAID BY TOWN AND EXCLUDED FROM TOTAL 01 US 380 (US 377 - Denton County Line)178,105,000 178,105,000 178,105,000 D,X 01 02 FM 1461 (SH 289 - CR 165)525,000 45,190,870 45,715,870 45,715,870 A,X 02 03 DNT Main Lane (US 380 - FM 428): (Design)312,821,815 312,821,815 312,821,815 X 03 122,917,991 23,957,938 45,400,000 0 0 16,000,000 92,300,000 300,267,991 239,605,740 60,662,251 19,450,000 23,297,062 14,767,843 0 0 0 0 Design 14,168,313 0 0 0 0 0 1,800,000 15,968,313 CO Bond Debt 0 0 0 0 0 0 0 Construction 91,944,538 19,900,000 45,400,000 0 0 6,000,000 82,750,000 245,994,538 GO Bond Debt 19,450,000 23,297,062 14,767,843 0 0 0 0 Design & Construction 2,250,000 2,957,938 0 0 0 10,000,000 0 14,900,000 2025 GO Bond Debt Land/Easements 14,555,140 1,100,000 0 0 0 0 7,750,000 23,405,140 Revenue Bond Debt 0 0 0 0 0 0 0 Description Codes - Other Sources ##A Impact Fees D General Fund G Park Development Fund J TIRZ #2 X Non-Cash Contributions ##B Grant and Interlocal Funds E Water / Wastewater Fund H TIRZ #1 K Escrows Z Other Sources (See Detail) ##C Developer Agreements F Stormwater Drainage Fund I Interest L Capital Dedicated General Fund Projects IndexIndexStreet Projects Subtotal Unissued Debt ScheduleFunding Sources Restricted 01Summary of Capital Improvement Program - 2025-09-05 PROPOSED Un-Restricted Multi-Year Capital Plan Page 5 Issued FY 26 FY 27 FY 28 FY 29 FY 30 FY 31-35 Total FY 25 FY 26 FY 27 FY 28 FY 29 FY 30 FY 31-35 Prior Years 2025-2026 2026-2027 2027-2028 2028-2029 2029-2030 2030-2035 Cost 2024-2025 2025-2026 2026-2027 2027-2028 2028-2029 2029-2030 2030-2035 01 2211-TR Median Lighting US 380 (Mahard - Lovers Ln): (Construction)300,000 300,000 300,000 A 01 02 2101-TR Traffic Signal - Fishtrap & Artesia Boulevard: (Design)65,000 65,000 32,500 32,500 B,L 02 03 2101-TR Traffic Signal - Fishtrap & Artesia Boulevard: (Construction)460,000 140,000 600,000 230,000 370,000 B,L 03 04 2317-TR Traffic Signal - DNT/Frontier: (Design)81,500 81,500 81,500 L,Z 04 05 2317-TR Traffic Signal - DNT/Frontier: (Construction)200,000 200,000 200,000 L,Z 05 06 2318-TR Traffic Signal - Teel Pkway & Prairie Drive: (Design)65,000 65,000 65,000 L 06 07 2318-TR Traffic Signal - Teel Pkway & Prairie Drive: (Construction)460,000 140,000 600,000 600,000 L 07 08 2404-TR Traffic Signal First Street/Legacy Drive (Construction)992,259 992,259 992,259 L 08 09 2501-TR Traffic Improvement Projects 767,160 1,500,000 2,267,160 1,500,000 767,160 L 09 10 2414-TR Opticom Repair/Installation 85,000 85,000 85,000 L 10 11 2530-TR School Zone Flashers 140,544 140,544 140,544 L 11 12 2502-TR Traffic Signal Communications Program Phase 2 of 2 495,000 495,000 495,000 L 12 13 2531-TR Traffic Equipment 15,928 15,928 15,928 L 13 14 2503-TR Traffic Signal - Legacy & Prairie: (Design)65,000 65,000 65,000 L 14 15 2503-TR Traffic Signal - Legacy & Prairie: (Construction)460,000 140,000 600,000 600,000 L 15 16 Traffic Signal - Legacy & Prosper Trail: (Design)85,000 85,000 85,000 L 16 17 Traffic Signal - Legacy & Prosper Trail: (Construction)650,000 650,000 650,000 L 17 18 Traffic Signal - Legacy & Starwood: (Design)85,000 85,000 85,000 L 18 19 Traffic Signal - Legacy & Starwood: (Construction)650,000 650,000 650,000 L 19 20 Traffic Signal - First Street & La Cima: (Design)65,000 65,000 65,000 20 21 Traffic Signal - First Street & La Cima: (Construction)460,000 460,000 460,000 21 22 Roundabout (La Cima/First Street): (Design)500,000 500,000 500,000 22 23 Roundabout (La Cima/First Street): (Construction)2,000,000 2,000,000 2,000,000 23 24 Roundabout (Richland/Lakewood): (Design)500,000 500,000 500,000 24 25 Roundabout (Richland/Lakewood): (Construction)2,000,000 2,000,000 2,000,000 25 26 Traffic Signal - Richland Blvd & Walmart/Pandera: (Design)65,000 65,000 65,000 A 26 27 Traffic Signal - Richland Blvd & Walmart/Pandera: (Construction)460,000 460,000 460,000 A 27 4,652,391 2,090,000 1,300,000 0 1,050,000 0 5,000,000 14,092,391 7,587,500 6,504,891 0 0 0 0 0 0 0 Design 276,500 170,000 0 0 130,000 0 1,000,000 1,576,500 CO Bond Debt 0 0 0 0 0 0 0 Construction 2,872,259 420,000 1,300,000 0 920,000 0 4,000,000 9,512,259 GO Bond Debt 0 0 0 0 0 0 0 Design & Construction 1,503,632 1,500,000 0 0 0 0 0 3,003,632 2025 GO Bond Debt Land/Easements 0 0 0 0 0 0 0 0 Revenue Bond Debt 0 0 0 0 0 0 0 Description Codes - Other Sources ##A Impact Fees D General Fund G Park Development Fund J TIRZ #2 X Non-Cash Contributions ##B Grant and Interlocal Funds E Water / Wastewater Fund H TIRZ #1 K Escrows Z Other Sources (See Detail) ##C Developer Agreements F Stormwater Drainage Fund I Interest L Capital Dedicated Index02 Subtotal Traffic ProjectsIndex Restricted Un-Restricted Unissued Debt Schedule Summary of Capital Improvement Program - 2025-09-05 PROPOSEDGeneral Fund Projects Funding Sources Multi-Year Capital Plan Page 6 Issued FY 26 FY 27 FY 28 FY 29 FY 30 FY 31-35 Total FY 25 FY 26 FY 27 FY 28 FY 29 FY 30 FY 31-35 Prior Years 2025-2026 2026-2027 2027-2028 2028-2029 2029-2030 2030-2035 Cost 2024-2025 2025-2026 2026-2027 2027-2028 2028-2029 2029-2030 2030-2035 Neighborhood Park 01 2245-PK Windsong Park #3: (Design)100,000 100,000 100,000 G 01 02 2245-PK Windsong Park #3: (Construction)250,000 250,000 250,000 G 02 03 2107-PK Lakewood Preserve, Phase 2 (22 Acres/Lights): (Construction)5,587,255 5,587,255 4,042,255 1,545,000 D,G,I,Z 03 03 2319-PK Downtown Park (Broadway/Parvin): (Design)50,000 50,000 50,000 G 03 04 2319-PK Downtown Park (Broadway/Parvin): (Construction)1,108,240 200,000 1,308,240 752,810 555,430 D,G,I 04 05 Downtown Event Space: (Design)1,250,000 1,250,000 1,250,000 05 06 Downtown Event Space: (Construction)11,250,000 11,250,000 11,250,000 06 07 Rutherford Park: (Design)500,000 500,000 500,000 07 08 Rutherford Park: (Construction)4,500,000 4,500,000 4,500,000 08 09 Remaining Proposition B: GO Bond Funds 4,270,000 4,270,000 4,270,000 4,270,000 09 10 Raymond Community Park Dam Repair 350,000 350,000 5,180 344,820 L 10 11 Rec Center Strategic Implementation Plan 100,000 100,000 100,000 L 11 12 Playground Shade Structures - Lakewood and Hackberry Parks 200,000 200,000 200,000 G 12 13 Security Cameras - Raymond Community and Lakewood Parks 250,000 250,000 250,000 L 13 16 Pecan Grove Park Pond Dredging 325,000 325,000 325,000 16 18 Pecan Grove & Whitley Place HOA Irrigation Seperation 125,000 125,000 125,000 18 19 Mirabella Park (Tellus)500,000 500,000 500,000 G 19 20 Creekside Park (Shaddock)445,000 445,000 445,000 G 20 21 Pickleball and Tennis Courts 3,800,000 3,800,000 3,800,000 21 22 Playground Development and Replacement 2,500,000 2,500,000 2,500,000 22 Trails 23 2120-PK Doe Branch Trail Connections 2,184,000 2,184,000 2,000,000 184,000 D 23 24 Prosper Center Park Trail Connection 900,000 900,000 900,000 Z 24 25 Park Amenities/Bridge/Trails 2,700,000 2,700,000 2,700,000 25 Downtown Improvements 26 2420-PK Downtown Improvements 329,383 329,383 329,383 D,I 26 27 2416-PK Downtown Monumentation: (Design)164,700 164,700 164,700 D 27 28 Downtown Monumentation, Broadway & Coleman (Construction)465,000 465,000 465,000 28 29 Downtown Monumentation, Broadway & Main (Construction)370,000 255,000 625,000 625,000 Z 29 30 Downtown Monumentation, First & Main (Construction)465,000 465,000 465,000 30 31 2403-ST Prosper Parking Lot and Alley Improvements (Design)122,500 122,500 122,500 D 31 32 2403-ST Prosper Parking Lot and Alley Improvements (Construction)430,000 430,000 307,499 122,501 D 32 Community Park 33 2122-PK Raymond Community Park, Phase 1: (Design)1,200,000 1,200,000 1,124,621 75,379 33 34 2122-PK Raymond Community Park, Phase 1: (Construction)23,857,000 128,000 23,985,000 22,985,000 1,000,000 I, L 34 35 2510-PK Raymond Community Park, Trail / Bridge - Grant Matching 916,802 916,802 848,122 68,680 B,I,G 35 36 2327-PK Frontier Park Pond Repairs 473,000 350,000 823,000 350,000 473,000 L 36 37 2511-PK Frontier Park Concrete Repairs 120,000 120,000 120,000 G 37 38 2517-PK Parks & Recreation Admin Facility Parking Lot Paving 80,000 80,000 80,000 Z 38 39 Community Park - Prosper Trail 55 acres: (Design)3,000,000 3,000,000 3,000,000 39 40 Community Park - Prosper Trail 55 acres: (Construction)27,000,000 27,000,000 27,000,000 40 41 2513-PK Doe Branch Property Masterplan 140,000 140,000 140,000 G 41 42 Dream Park 3,000,000 3,000,000 3,000,000 G,X 42 43 Doe Branch - 161 acres: (Design)2,500,000 2,500,000 2,500,000 43 44 Doe Branch - 161 acres: (Construction)22,500,000 22,500,000 22,500,000 44 45 Raymond Community Park, Phase 2: (Design)1,000,000 1,000,000 1,000,000 45 46 Raymond Community Park, Phase 2: (Construction)9,000,000 9,000,000 9,000,000 46 47 Future Community Park - Activation (Design)1,500,000 1,500,000 1,500,000 47 48 Future Community Park - Activation (Construction)13,500,000 13,500,000 13,500,000 48 Funding Sources Unissued Debt Schedule Restricted Un-Restricted IndexIndexPark Projects 03Summary of Capital Improvement Program - 2025-09-05 PROPOSEDGeneral Fund Projects Multi-Year Capital Plan Page 7 Medians/Landscape Screening 49 2150-PK US 380 Green Ribbon Lndscp- Irrigation (Lovers - Mahard): (Design)95,000 95,000 95,000 D 49 50 2150-PK US 380 Green Ribbon Lndscp-Irrigation (Lovers - Mahard): (Constr.)2,200,000 2,200,000 2,200,000 B 50 51 Mahard Median Lndscp (US 380 - S of Prairie): (Design)250,000 250,000 250,000 I 51 52 Mahard Median Lndscp (US 380 - S of Prairie): (Construction)250,000 250,000 250,000 I 52 53 Prairie Median Lndscp (W of Legacy - Mahard): (Design)250,000 250,000 7,503 242,497 I 53 54 Prairie Median Lndscp (W of Legacy - Mahard): (Construction)1,000,000 1,000,000 1,000,000 54 55 Richland Median Lndscp (Prosper Commons - Coit Rd): (Design)150,000 150,000 150,000 L 55 56 Richland Median Lndscp (Prosper Commons - Coit Rd): (Constr.)600,000 600,000 600,000 56 57 Frontier Median Lndscp (DNT - Preston): (Design)200,000 200,000 200,000 57 58 Frontier Median Lndscp (DNT - Preston): (Constr.)1,500,000 1,500,000 1,500,000 58 59 Legacy Median Lndscp (First - Prosper Trail): (Design)175,000 175,000 175,000 59 60 Legacy Median Lndscp (First - Prosper Trail): (Constr.)1,250,000 1,250,000 1,250,000 60 61 Prosper Trail Median Lndscp (Teel - 2,000' East of Teel): (Design)150,000 150,000 150,000 61 62 Prosper Trail Median Lndscp (Teel - 2,000' East of Teel): (Constr.)600,000 600,000 600,000 62 63 First Median Lndscp (Stuber Elementary - DNT): (Design)200,000 200,000 200,000 63 64 First Median Lndscp (Stuber Elementary - DNT): (Constr.)1,500,000 1,500,000 1,500,000 64 65 Legacy Median Lndscp (In Front of Middle School #7): (Design)150,000 150,000 150,000 65 66 Legacy Median Lndscp (In Front of Middle School #7): (Constr.)600,000 600,000 600,000 66 67 CIP Salaries 300,000 300,000 300,000 L 67 68 2328-PK Prosper Trail Screening (Preston - Deer Run): (Design & Construction)550,000 550,000 550,000 L 68 69 2408-DR Doe Branch Creek Erosion Control 225,000 225,000 225,000 F 69 70 2401-PK Parks, Recreation, and Open Space Master Plan Update 140,000 140,000 140,000 D 70 71 Unprogrammed Future Projects 350,000 350,000 71 40,692,880 7,003,000 2,240,000 0 0 0 119,060,000 168,995,880 156,137,990 12,507,890 0 0 0 0 0 0 4,270,000 Design 1,732,200 650,000 0 0 0 0 10,625,000 13,007,200 CO Bond Debt 0 0 0 0 0 0 0 Construction 33,802,495 833,000 1,465,000 0 0 0 94,265,000 130,365,495 GO Bond Debt 0 0 0 0 0 0 4,270,000 Design & Construction 5,158,185 5,520,000 775,000 0 0 0 14,170,000 25,623,185 2025 GO Bond Debt Land/Easements 0 0 0 0 0 0 0 0 Revenue Bond Debt 0 0 0 0 0 0 0 Description Codes - Other Sources ##A Impact Fees D General Fund G Park Development Fund J TIRZ #2 X Non-Cash Contributions ##B Grant and Interlocal Funds E Water / Wastewater Fund H TIRZ #1 K Escrows Z Other Sources (See Detail) ##C Developer Agreements F Stormwater Drainage Fund I Interest L Capital Dedicated Subtotal Multi-Year Capital Plan Page 8 Issued FY 26 FY 27 FY 28 FY 29 FY 30 FY 31-35 Total FY 25 FY 26 FY 27 FY 28 FY 29 FY 30 FY 31-35 Prior Years 2025-2026 2026-2027 2027-2028 2028-2029 2029-2030 2030-2035 Cost 2024-2025 2025-2026 2026-2027 2027-2028 2028-2029 2029-2030 2030-2035 01 2137-FC Fire Station #4: (Design)950,680 950,680 950,680 Z 01 02 2203-FC Fire Station #4: (Other Development Costs)413,422 413,422 275,929 137,493 L 02 03 2205-FC Fire Station #4: (Construction)11,610,003 11,610,003 11,220,000 390,003 I,L 03 04 2206-FC Fire Station #4: (FF&E)700,000 700,000 700,000 L 04 05 2519-FC Town Hall Repairs - N. Parking Lot & Front Steps and Fountain 290,892 290,892 290,892 I 05 06 2123-FC Parks & Public Works, Phase 1: (Design)1,200,000 1,200,000 1,200,000 I,L,Z 06 07 2123-FC Parks & Public Works, Phase 1: (Construction)4,602,938 5,397,062 10,000,000 20,000,000 15,397,062 4,602,938 I,L,Z 07 08 2516-FC Public Safety Fiber Ring 1,000,000 1,000,000 1,000,000 I 08 09 Facility Improvement Projects 300,000 300,000 300,000 L 09 10 Public Safety Training Facility, Phase 1: (Design)750,000 750,000 750,000 750,000 10 11 Public Safety Training Facility, Phase 1: (Construction)6,750,000 6,750,000 4,300,000 2,450,000 D 450,000 11 12 Fueling Facility: (Design and Construction)455,000 455,000 455,000 12 13 Fire Station #5 14,000,000 14,000,000 14,000,000 13 14 Fire Engine - Fire Station #5 1,600,000 1,600,000 1,600,000 14 15 Multigenerational Recreational Center: (Design)4,000,000 4,000,000 4,000,000 15 16 Multigenerational Recreational Center: (Construction)30,000,000 30,000,000 30,000,000 16 17 Municipal Library: (Design) 4,000,000 4,000,000 4,000,000 17 18 Municipal Library: (Construction) 30,200,000 30,200,000 30,200,000 18 19 Parks & Public Works, Phase 2: (Design) - TBD TBD 0 19 20 Parks & Public Works, Phase 2: (Construction) - TBD TBD 0 20 21 Public Safety Facility, Phase 2 (Design)3,000,000 3,000,000 3,000,000 21 22 Public Safety Facility, Phase 2: (Construction)26,000,000 26,000,000 26,000,000 22 23 Silo Renovations 2,300,000 2,300,000 2,300,000 23 24 Town Hall Remodel - Library Conversion - TBD TBD 0 24 25 CIP Salaries 300,000 300,000 300,000 L 25 26 Unprogrammed Future Public Safety 300,000 300,000 300,000 26 20,767,935 6,297,062 0 0 0 0 133,055,000 160,119,997 149,748,671 10,371,326 0 0 0 0 0 0 1,200,000 Design 2,150,680 0 0 0 0 0 11,750,000 13,900,680 CO Bond Debt 0 0 0 0 0 0 0 Construction 17,326,363 5,397,062 0 0 0 0 102,950,000 125,673,425 GO Bond Debt 0 0 0 0 0 0 1,200,000 Design & Construction 1,290,892 900,000 0 0 0 0 18,355,000 20,545,892 2025 GO Bond Debt Land/Easements/Equipment 0 0 0 0 0 0 0 0 Revenue Bond Debt 0 0 0 0 0 0 0 (0) 189,031,197 39,348,000 48,940,000 0 1,050,000 16,000,000 349,415,000 643,476,259 553,079,900 90,046,358 19,450,000 23,297,062 14,767,843 0 0 0 5,470,000 Design 18,327,693 820,000 0 0 130,000 0 25,175,000 44,452,693 CO Bond Debt -$ 0 0 0 0 0 0 Construction 145,945,654 26,550,062 48,165,000 0 920,000 6,000,000 283,965,000 511,545,716 GO Bond Debt 19,450,000 23,297,062 14,767,843 0 0 0 5,470,000 Design & Construction 10,202,709 10,877,938 775,000 0 0 10,000,000 32,525,000 64,072,709 2025 GO Bond Debt Land/Easements 14,555,140 1,100,000 0 0 0 0 7,750,000 23,405,140 Revenue Bond Debt 0 0 0 0 0 0 0 36,958,033 31,950,000 19,155,000 30,500,000 26,800,000 18,650,000 Description Codes - Other Sources ##A Impact Fees D General Fund G Park Development Fund J TIRZ #2 X Non-Cash Contributions ##B Grant and Interlocal Funds E Water / Wastewater Fund H TIRZ #1 K Escrows Z Other Sources (See Detail) ##C Developer Agreements F Stormwater Drainage Fund I Interest L Capital Dedicated Funding Sources Summary of Capital Improvement Program - 2025-09-05 PROPOSEDGeneral Fund Projects IndexIndex04 Subtotal Grand Total General Fund Restricted Un-RestrictedFacility Projects Unissued Debt Schedule Multi-Year Capital Plan Page 9 Issued FY 26 FY 27 FY 28 FY 29 FY 30 FY 31-35 Total FY 25 FY 26 FY 27 FY 28 FY 29 FY 30 FY 31-35 Prior Years 2025-2026 2026-2027 2027-2028 2028-2029 2029-2030 2030-2035 Cost 2024-2025 2025-2026 2026-2027 2027-2028 2028-2029 2029-2030 2030-2035 01 2114-WA FM 1461 12-inch Water Line Relocation: (Design)400,000 400,000 400,000 E 01 02 2114-WA FM 1461 12-inch Water Line Relocation: (Easements)500,000 500,000 500,000 E 02 03 2114-WA FM 1461 12-inch Water Line Relocation: (Construction)6,000,000 6,000,000 2,520,000 3,480,000 E 03 04 2123-WA Parks & Public Works, Phase 1: (Design)600,000 600,000 600,000 E 04 05 2123-WA Parks & Public Works, Phase 1: (Construction)5,000,000 5,000,000 4,000,000 1,000,000 E,B,I 2,646,633 05 06 2412-WA Ground Storage 6 MG Tank (Design)600,000 195,000 795,000 795,000 E 06 07 2412-WA Ground Storage 6 MG Tank (Construction)7,500,000 5,500,000 13,000,000 4,349,128 8,650,872 A,E,I 07 08 2520-WA Craig Street 2 MG EST Rehabilitation (Design)460,000 460,000 460,000 08 09 2520-WA Craig Street 2 MG EST Rehabilitation (Construction)2,540,000 2,540,000 1,913,378 626,622 A,I 740,000 09 10 First Street (DNT - Coleman) - 12" Water Line 2,500,000 2,500,000 1,647,306 852,694 I 10 11 LPP Elevated Storage Tank #2: (Design)750,000 750,000 750,000 11 12 LPP Elevated Storage Tank #2: (Construction)8,500,000 8,500,000 8,500,000 12 13 LPP Ground Storage Tank, Pumps and NTMWD Meter: (Design)1,400,000 1,400,000 1,400,000 13 14 Godwin Parkway (DNT - BNSF RR)250,000 250,000 250,000 I 14 15 LPP Ground Storage Tank, Pumps and NTMWD Meter: (Construction)12,600,000 12,600,000 4,000,000 8,600,000 15 16 US 380 30-inch Water/8" WW Line Relocation: (Design)1,800,000 1,800,000 1,800,000 E 16 17 US 380 30-inch Water/8" WW Line Relocation: (Easements)7,000,000 7,000,000 7,000,000 E 17 18 US 380 30-inch Water/8" WW Line Relocation: (Construction)8,300,000 8,300,000 8,300,000 E 18 19 CIP Salaries 300,000 300,000 300,000 I 19 20 Unprogrammed Future Water/Wastewater 0 20 21,310,000 12,835,000 15,300,000 0 0 2,150,000 21,100,000 72,695,000 19,139,812 53,555,188 2,646,633 740,000 0 0 0 0 0 Design 2,060,000 1,995,000 0 0 0 2,150,000 0 6,205,000 CO Bond Debt 0 0 0 0 0 0 0 Construction 18,500,000 8,040,000 8,300,000 0 0 0 21,100,000 55,940,000 GO Bond Debt 0 0 0 0 0 0 0 Design & Construction 250,000 2,800,000 0 0 0 0 0 3,050,000 Revenue Bond Debt 2,646,633 740,000 0 0 0 0 0 Land/Easements 500,000 0 7,000,000 0 0 0 0 7,500,000 Issued FY 26 FY 27 FY 28 FY 29 FY 30 FY 31-35 Total FY 25 FY 26 FY 27 FY 28 FY 29 FY 30 FY 31-35 Prior Years 2025-2026 2026-2027 2027-2028 2028-2029 2029-2030 2030-2035 Cost 2024-2025 2025-2026 2026-2027 2027-2028 2028-2029 2029-2030 2030-2035 01 2103-WW Doe Branch Parallel Interceptor: (Design & Construction)16,253,327 16,253,327 15,253,327 1,000,000 A,I 3,750,000 3,876,664 3,876,664 01 02 2152-WW Upper Doe Branch WW Line (Teel-PISD Stadium): (Design)875,000 875,000 875,000 A 02 03 2152-WW Upper Doe Branch WW Line (Teel-PISD Stadium): (Easements)100,000 100,000 100,000 A 03 04 2152-WW Upper Doe Branch WW Line (Teel-PISD Stadium): (Construction)7,050,000 7,050,000 7,050,000 A,K 04 05 2322-WW Doe Branch, Phase 3 WWTP: (Design & Construction)104,946,277 104,946,277 104,946,277 B 27,500,000 21,921,955 21,921,955 05 06 Denton ISD WW Line Reimbursement: (Design & Construction)531,622 531,622 531,622 A 06 07 CIP Salaries 200,000 200,000 200,000 I 07 129,756,226 200,000 0 0 0 0 0 129,956,226 128,756,226 1,200,000 31,250,000 25,798,619 25,798,619 0 0 0 0 Design 875,000 0 0 0 0 0 0 875,000 CO Bond Debt 0 0 0 0 0 0 0 Construction 7,050,000 0 0 0 0 0 0 7,050,000 GO Bond Debt 0 0 0 0 0 0 0 Design & Construction 121,731,226 200,000 0 0 0 0 0 121,931,226 Revenue Bond Debt 31,250,000 25,798,619 25,798,619 0 0 0 0 Land/Easements 100,000 0 0 0 0 0 0 100,000 Issued FY 26 FY 27 FY 28 FY 29 FY 30 FY 31-35 Total FY 25 FY 26 FY 27 FY 28 FY 29 FY 30 FY 31-35 Prior Years 2025-2026 2026-2027 2027-2028 2028-2029 2029-2030 2030-2035 Cost 2024-2025 2025-2026 2026-2027 2027-2028 2028-2029 2029-2030 2030-2035 01 2024-DR Old Town Regional Detention Pond #2: (Design)98,386 200,000 298,386 298,386 F 01 02 2024-DR Old Town Regional Detention Pond #2: (Construction)1,800,000 1,800,000 1,800,000 F 02 98,386 200,000 1,800,000 0 0 0 0 2,098,386 0 2,098,386 0 0 0 0 0 0 0 Design 98,386 200,000 0 0 0 0 0 298,386 CO Bond Debt 0 0 0 0 0 0 0 Construction 0 0 1,800,000 0 0 0 0 1,800,000 GO Bond Debt 0 0 0 0 0 0 0 Design & Construction 0 0 0 0 0 0 0 0 Revenue Bond Debt 0 0 0 0 0 0 0 Land/Easements 0 0 0 0 0 0 0 0 151,164,612 13,235,000 17,100,000 0 0 2,150,000 21,100,000 204,749,612 147,896,038 56,853,574 33,896,633 26,538,619 25,798,619 0 0 0 0 Design 3,033,386 2,195,000 0 0 0 2,150,000 0 7,378,386 CO Bond Debt 0 0 0 0 0 0 0 Construction 25,550,000 8,040,000 10,100,000 0 0 0 21,100,000 64,790,000 GO Bond Debt 0 0 0 0 0 0 0 Design & Construction 121,981,226 3,000,000 0 0 0 0 0 124,981,226 Revenue Bond Debt 33,896,633 26,538,619 25,798,619 0 0 0 0 Land/Easements 600,000 0 7,000,000 0 0 0 0 7,600,000 Description Codes - Other Sources ##A Impact Fees D General Fund G Park Development Fund J TIRZ #2 X Non-Cash Contributions ##B Grant and Interlocal Funds E Water / Wastewater Fund H TIRZ #1 K Escrows Z Other Sources (See Detail) ##C Developer Agreements F Stormwater Drainage Fund I Interest L Capital Dedicated Funding Sources Funding Sources Subtotal IndexWater Projects IndexUn-Restricted Restricted Un-Restricted Funding SourcesIndexRestricted Subtotal IndexSubtotal Grand Total Enterprise Funds IndexIndexUnissued Debt Schedule Unissued Debt Schedule Wastewater Projects Drainage Projects Unissued Debt Schedule Restricted Un-Restricted 05Summary of Capital Improvement Program - 2025-09-05 PROPOSEDEnterprise Fund Projects Multi-Year Capital Plan Page 10 Issued FY 25 FY 26 FY 27 FY 28 FY 29 FY 30-34 Total FY 24 FY 25 FY 26 FY 27 FY 28 FY 29 FY 30-34 Prior Years 2024-2025 2025-2026 2026-2027 2027-2028 2028-2029 2029-2034 Cost 2023-2024 2024-2025 2025-2026 2026-2027 2027-2028 2028-2029 2029-2034 189,031,197 39,348,000 48,940,000 0 1,050,000 16,000,000 349,415,000 643,476,259 553,079,900 90,046,358 19,450,000 23,297,062 14,767,843 0 0 0 5,470,000 151,164,612 13,235,000 17,100,000 0 0 2,150,000 21,100,000 204,749,612 147,896,038 56,853,574 33,896,633 26,538,619 25,798,619 0 0 0 0 340,195,809 52,583,000 66,040,000 0 1,050,000 18,150,000 370,515,000 848,225,871 700,975,938 146,899,932 53,346,633 49,835,681 40,566,462 0 0 0 5,470,000 CO Bond Debt 33,896,633 26,538,619 25,798,619 0 0 0 0 GO Bond Debt 19,450,000 23,297,062 14,767,843 0 0 0 5,470,000 Design 21,361,079 3,015,000 0 0 130,000 2,150,000 25,175,000 51,831,079 2025 GO Bond Debt Construction 171,495,654 34,590,062 58,265,000 0 920,000 6,000,000 305,065,000 576,335,716 Revenue Bond Debt 0 0 0 0 0 0 0 Design & Construction 132,183,935 13,877,938 775,000 0 0 10,000,000 32,525,000 189,053,935 Land/Easements 15,155,140 1,100,000 7,000,000 0 0 0 7,750,000 31,005,140 Funding Sources Grand Total Capital Improvement Program Enterprise Funds General Fund Summary of Capital Improvement Program - 2025-09-05 PROPOSEDCapital Improvement Program Summary Restricted Un-RestrictedCapital Improvement Program Summary Unissued Debt Schedule Multi-Year Capital Plan Page 11 APPENDIX Supplemental Budget Requests Each year departments are provided with a base operating budget for their department. Any additional funding requests are made as supplemental requests. There are two categories of supplemental request:  Non‐Discretionary ‐ These are considered necessary for maintaining service delivery at current levels, and are usually the result of goods or services required by the Town. These requests are considered higher priority than Discretionary packages, as denial of these requests would reduce the level of service currently provided to the citizens of Prosper. Non‐Discretionary packages might include increased costs for maintenance contracts, electricity, paper and printing, postage, phone rates, internet access, etc. Discretionary ‐ These should be completed for new personnel or other increases or additions to current service levels. The Executive Team will rank all new Discretionary packages from each fund. The Town Manager will determine if the requests are funded in the budget submission to the Town Council. Every discretionary package will be presented to Town Council regardless of the funding status.  Discretionary packages are separated into three priority rankings: Discretionary 1 ‐ Must do Discretionary 2 ‐ Should do Discretionary 3 ‐ Nice to do Appendix Page 1 NET NET TOTAL DIV / DEPT PACKAGE TITLE FTEs ONE-TIME ONGOING REVENUE NET COST Administration Tyler ERP SaaS & Maintenance Fees - - 309,408 309,408 - 309,408 Town Manager Placer.AI Contract - - 32,000 32,000 - 32,000 Town Secretary Election Services - - 13,000 13,000 - 13,000 Town Secretary Reclass Records Management Specialist to Deputy Town Secretary - - 18,842 18,842 - 18,842 Finance 1 Financial Services Specialist 1 970 82,502 83,472 - 83,472 Human Resources HR Consultant for Benefits & Insurance - - 50,000 50,000 - 50,000 Information Technology Digital Plan Review Platform Migration - 22,299 73,500 95,799 - 95,799 Information Technology New Copier Fleet Lease Agreement - - 20,000 20,000 - 20,000 Information Technology Maintenance Renewal for Public Safety In-Vehicle Routers - 20,745 - 20,745 - 20,745 Information Technology Fiber Connectivity for Fire Station #4 - - 13,800 13,800 - 13,800 Information Technology Milestone Maintenance - - 3,115 3,115 - 3,115 Information Technology SMS for myProsper - - 7,645 7,645 - 7,645 Information Technology ZTNA VPN Renewal - - 25,272 25,272 - 25,272 Information Technology Reclass IT Manager to Assistant Director - IT Operations - - - - - - Police Operations 4 Police Officers 4 388,584 623,570 1,012,154 - 1,012,154 Police Operations Vehicle Expense - - 171,949 171,949 - 171,949 Police Operations MVCPA Task Force Grant 2 $1,308,113.00 274,626 1,582,739 1,320,829 261,910 Police Operations MVCPA Catalytic Converter Grant - 371,800 - 371,800 309,834 61,966 Fire Operations Apparatus Maintenance - - 75,000 75,000 - 75,000 Fire Operations Fire Station #4 Minimum Staffing 9 87,406 1,068,555 1,155,961 - 1,155,961 Code Compliance Contracted Services - - 189,400 189,400 - 189,400 Planning Vehicle Maintenance & Fuel - - 7,000 7,000 - 7,000 Streets Base Budget Increase - Equipment & Vehicle Expense - - 25,000 25,000 - 25,000 Traffic School Zone Flasher Modem Renewals - - 25,000 25,000 - 25,000 Traffic Damage Claim Contingency - - - - - - Traffic Fund Traffic Division - - 24,500 24,500 - 24,500 Traffic Traffic Signal Technician 1 3,665 99,642 103,307 - 103,307 Parks Operations 1 Irrigation Technician 1 73,000 74,505 147,505 - 147,505 Parks Operations Raymond Park Water Replacement - 370,000 - 370,000 - 370,000 Parks Operations Electricity Cost Increases - - 25,123 25,123 - 25,123 Parks Operations Custodial Supplies for Raymond Park - - 4,000 4,000 - 4,000 Parks Operations Irrigation Parts for New Properties - - 7,000 7,000 - 7,000 Parks Operations 1 Chemical Technician 1 23,000 72,878 95,878 - 95,878 Parks Operations Fire Station #4 Grounds Maintenance - - 10,000 10,000 - 10,000 Parks Recreation Increase to Base Budget - Credit Card Fees - - 1,830 1,830 - 1,830 Library 1 Circulation Supervisor 1 3,230 74,675 77,905 - 77,905 TOTAL FUNDED 20.0 2,672,812 3,503,337 6,176,149 1,630,663 4,545,486 TOTAL COSTS TOWN OF PROSPER FY 2025-2026 FUNDED PACKAGES GENERAL FUND Appendix Page 2 NET NET TOTAL DIV / DEPT PACKAGE TITLE FTEs ONE-TIME ONGOING REVENUE NET COST Utility Customer Service Increase Base Budget - Postage & Delivery - - 21,000 21,000 - 21,000 Water 1 Water System Technician/SCADA 1 57,814 115,254 173,068 - 173,068 Water 1 Utility Compliance Superintendent 1 57,167 136,116 193,283 - 193,283 Water Custer Pump Station Preventative Maintenance - - 41,040 41,040 - 41,040 Water Increase Meter Purchases - - 449,981 449,981 - 449,981 Water Increase Base Budget - Vehicle Expense - - 25,000 25,000 - 25,000 Water Increase Base Budget - System Improvements - - 50,000 50,000 - 50,000 Water Tree Replacement at First Street Water Tower - 12,000 - 12,000 - 12,000 Water Increase Base Budget - Copier Expense - - 1,000 1,000 - 1,000 Water Increase Base Budget - Dues, Fees, & Subscriptions - - 5,000 5,000 - 5,000 Wastewater Conduct Smoke Testing - - 90,000 90,000 - 90,000 Wastewater Automatic Transfer Switch at La Cima Lift Station - 65,000 - 65,000 - 65,000 Wastewater Increase Base Budget - Fuel - - 5,000 5,000 - 5,000 TOTAL FUNDED 2.0 191,981 939,391 1,131,372 - 1,131,372 TOTAL COSTS TOWN OF PROSPER FY 2025-2026 FUNDED PACKAGES WATER/SEWER FUND Appendix Page 3 NET NET TOTAL DIV / DEPT PACKAGE TITLE FTEs ONE-TIME ONGOING REVENUE NET COST Public Works 1 Heavy Equipment Operator 1 - 92,797 92,797 - 92,797 Public Works Increase to Base Budget - Vehicle Expense - - 2,000 2,000 - 2,000 TOTAL FUNDED 1.0 - 94,797 94,797 - 94,797 TOTAL COSTS TOWN OF PROSPER FY 2025-2026 FUNDED PACKAGES STORMWATER DRAINAGE FUND Appendix Page 4 Purpose of Financial Policies A strategic visioning priority of the Town Council is to continue to provide excellent municipal services. The Town of Prosper has a responsibility to its citizens to not only protect public funds, but to also be prudent in the management of government finances while providing adequate funding for the services desired by the public and the maintenance of public facilities. The Town of Prosper has adopted several financial policies in addition to the Town Charter to guide the Finance Department and staff in financial matters. The Town strives to adhere to  and follow all of the financial policies that have been adopted. Appendix Page 5 Charter ArƟcle VII - Financial Procedure SecƟons As Revised May 6, 2017 Financial Procedures ARTICLE VII SECTION 7.01 Fiscal Year The fiscal year of the Town shall begin on the first day of October and end on the last day of September on the next succeeding year. Such fiscal year shall also constitute the budget and accounting year. SECTION 7.02 Submission of Budget and Budget Message On or before the fifteenth (15th) day of August of the fiscal year, the Town Manager shall submit to the Town Council a budget for the ensuing fiscal year and an accompanying budget message. SECTION 7.03 Budget Message The Town Manager's message shall explain the budget both in fiscal terms andintermsofthework programs. It shall outline the proposed financial policies of the Town for the ensuing fiscal year, describe the important features of the budget, indicate any major changes from the current year in financial policies, expenditures, and revenues together with the reasons for such changes, summarize the Town's debt position and include such other material as the Town Manager deems desirable. SECTION 7.04 Budget a Public Record The budget and all supporting schedules shall be filed with the person performing the duties of Town Secretary when submitted to the Town Council and shall be open to public inspection by anyone interested. SECTION 7.05 Public Hearing on Budget At the Town Council meeting when the budget is submitted, the Town Council shall name the date and place of a public hearing, which shall be scheduled and published in accordance with the requirements of Chapter 102, Local Government Code, as amended. At this hearing, interested citizens may express their opinions concerning items of expenditures, giving their reasons for wishing to increase or decrease any items of expense. SECTION 7.06 Proceeding on Adoption of Budget After public hearing, the Town Council shall analyze the budget, making any additions or deletions which they feel appropriate, and shall, prior to the beginning of the next fiscal year, adopt the budget by the affirmative vote of a majority of the full membership of the Town Council. Should the Town Council take no final action on or prior to such day, the current budget shall be in force on a month-to-month basis until a new budget is adopted. SECTION 7.07 Budget, Appropriation and Amount to be Raised by Taxation On final adoption, the budget shall be in effect for the budget year. Final adoption of the budget by the Town Council shall constitute the official appropriations as proposed by expenditures for the current year and shall constitute the basis of official levy of the property tax as the amount of tax to be assessed and collected for the corresponding tax year. Estimated expenditures will in no case exceed proposed revenue plus the undesignated fund balance from the previous fiscal year. Unused appropriations may be transferred to any item required for the same general purpose. Appendix Page 6 Charter ArƟcle VII - Financial Procedure SecƟons As Revised May 6, 2017 SECTION 7.08 Contingent Reserve Provision shall be made in the annual budget maintaining a contingency reserve fund balance designation in an amount not less than twenty percent (20%) of the total general fund expenditures, to be used in case of unforeseen items of expenditure or revenue shortfalls. This shall apply to current operating expenses and shall not overlap with any other amount of reserves maintained by the Town. Such contingency reserve appropriation shall be under the control of the Town Manager and distributed by him or her only in the event of an emergency or after supplemental appropriation by the Town Council. The proceeds of the contingency reserves shall be disbursed only by transfer to departmental appropriation, the spending of which shall be charged to the departments or activities for which the appropriations are made. SECTION 7.09 Amending the Budget Under conditions which may arise and which could not reasonably have been foreseen in the normal process of planning the budget, the Town Council may, by the affirmative vote of a majority of the full membership of the Town Council, amend or change the budget to provide for any additional expense in which the general welfare of the citizenry is involved. These amendments shall be by ordinance, and shall become an attachment to the original budget. SECTION 7.10 Certification; Copies Made Available A copy of the budget, as finally adopted, shall be filed with the person performing the duties of Town Secretary and such other places required by state law or as the Town Council shall designate. The final budget shall be printed or otherwise reproduced and sufficient copies shall be made available for the use of all offices, agencies, and for the use of interested persons and civic organizations. SECTION 7.11 Capital Program The Town Manager shall submit a five-year (5-year) capital program as an attachment to the annual budget. The program as submitted shall include: (1) A clear general summary of its contents; (2) A list of all capital improvements which are proposed to be undertaken during the five (5) fiscal years succeeding the budget year, with appropriate supporting information as to the necessity for such improvements; (3) Cost estimates, method of financing, and recommended time schedules for each improvement; and (4) The estimated annual cost of operating and maintaining the facilities to be constructed or acquired. The above information may be revised and extended each year with regard to capital improvements still pending or in process of construction or acquisition. The Capital program will be updated and presented to the Town Council annually. SECTION 7.12 Defect Shall Not Invalidate the Tax Levy Errors or defects in the form or preparation of the budget or the failure to perform any procedural requirements shall not nullify the tax levy or the tax rate. Appendix Page 7 Charter ArƟcle VII - Financial Procedure SecƟons As Revised May 6, 2017 SECTION 7.13 Lapse of Appropriations Every appropriation, except an appropriation for a capital expenditure,shall lapse at the close of the fiscal year to the extent that it has not been expended or encumbered. An appropriation for a capital expenditure shall continue in force until the purpose for which it was made had been accomplished or abandoned. The purpose of any such appropriation shall be deemed abandoned if three (3) years pass without any disbursement from or encumbrance of the appropriation. Any funds not expended, disbursed or encumbered shall be deemed excess funds. SECTION 7.14 Borrowing The Town shall have the power to borrow money on the credit of the Town and also to issue or incur bonds and other evidences of indebtedness, and such powers may be exercised to finance public improvements or for any other public purpose not prohibited by the Constitution and the laws of the State of Texas, and the Town may issue refunding bonds to refund outstanding bonds and other evidences of indebtedness of the Town previously issued or incurred. All such bonds and other evidences of indebtedness shall be issued in conformity with the laws of the State of Texas and may be secured by or paid, in whole or in part, from ad valorem tax revenues, revenues derived from other taxing powers of the Town, revenues derived by the Town from any fee or service charge, including revenues derived from the operations of any public utilities, utility systems, recreational facilities or any other municipal function to the extent not prohibited by the Constitution and laws of the State of Texas. Such bonds or evidences of indebtedness may be a charge upon and payable from the properties, or interest therein pledged, or the income therefrom, or both to the extent not prohibited by the Constitution or laws of the State of Texas. The proceeds of bonds or other evidences of indebtedness issued or incurred by the Town shall be used only for the purpose for which the bonds or other indebtedness was issued or incurred. SECTION 7.15 Purchasing (1) The Town Council may by ordinance, give the Town Manager general authority to contract for expenditure without further approval of the Town Council for all budgeted items not exceeding limits set by the Town Council within the ordinance. (2) All contracts for expenditures or purchases involving more than the limits must be expressly approved in advance by the Town Council. All contracts or purchases involving more than the limits set by the Town Council shall be awarded by the Town Council in accordance with state law. (3) Emergency contracts as authorized by law and this Charter may be negotiated by the Town Council or Town Manager if given authority by the Town Council, without competitive bidding, and in accordance with State law. Such emergency may be declared by the Town Manager and approved by the Town Council or declared by the Town Council. Appendix Page 8 Charter ArƟcle VII - Financial Procedure SecƟons As Revised May 6, 2017 SECTION 7.16 Administration of Budget (1) No payment shall be made or obligation incurred against any allotment or appropriation except in accordance with appropriations duly made, unless the Town Manager, or the Town Manager's designee, first certifies that there is a sufficient unencumbered balance in such allotment or appropriation and that sufficient funds therefrom are or will be available to cover the claim or meet the obligation when it becomes due and payable. (2) Any authorization of payment or incurring of obligation in violation of the provisions of this Charter shall be void and any payment so made illegal. Such action shall be cause for removal of any officer who knowingly authorized or made such payment or incurred such payment or obligation, and the officer shall also be liable to the Town for any amount so paid. (3) This prohibition shall not be construed to prevent the making or authorizing of payments, or making of contracts for capital improvements to be financed wholly or partly by the pledge of taxes, the issuance of bonds, time warrants, certificates of indebtedness, or certificates of obligation, or to prevent the making of any contract or lease providing for payments beyond the end of the fiscal year, providing that such action is made or approved by ordinance. (4) The Town Manager shall submit to the Town Council each month a report covering the revenues and expenditures of the Town in such a form as requested by the Town Council. SECTION 7.17 Depository All monies received by any person, department or agency of the Town for or in connection with the affairs of the Town shall be deposited promptly in the Town depository or depositories. The Town depositories shall be designated by the Town Council in accordance with such regulations and subject to the requirements as to security for deposits and interest thereon as may be established by ordinance and law. Procedures for withdrawal of money or the disbursement of funds from the Town depositories shall be prescribed by ordinance. SECTION 7.18 Independent Audit At the close of each fiscal year, and at such other times as may be deemed necessary, the Town Council shall call for an independent audit to be made of all accounts of the Town by a certified public accountant. No more than five (5) consecutive annual audits shall be completed by the same firm. The certified public accountant selected shall have no personal interest, directly or indirectly, in the financial affairs of the Town or any of its officers. The report of audit, with the auditor's recommendations will be made to the Town Council. Upon completion of the audit,the Independent Auditor's Report and Annual Financial Report shall be published on the Town's website and copies of the audit placed on file in the office of the person performing the duties of Town Secretary, as a public record. Appendix Page 9 Charter ArƟcle VII - Financial Procedure SecƟons As Revised May 6, 2017 SECTION 7.19 Power to Tax (1) The Town shall have the power to levy, assess and collect taxes of every character and type for any municipal purpose not prohibited by the Constitution and laws of the State of Texas as now written or hereafter amended. (2) The Town shall have the power to grant tax exemptions in accordance with the laws of the State of Texas. SECTION 7.20 Office of Tax Collector There shall be an office of taxation to collect taxes, the head of which shall be the Town Tax Collector. The Town Council may contract for such services. SECTION 7.21 Taxes; When Due and Payable (1) All taxes due in the Town shall be payable at the office of the Town Tax Collector, or at such location or locations as may be designated be the Town Council, and may be paid at any time after the tax rolls for the year have been completed and approved. Taxes for each year shall be paid before February 1 of the next succeeding year, and all such taxes not paid prior to that date shall be deemed delinquent, and shall be subject to penalty and interest as the Town Council shall provide by ordinance. The Town Council may provide discounts for the payment of taxes prior to January 1 in an amount not to exceed those authorized by the laws of the State of Texas. (2) Failure to levy and assess taxes through omission in preparing the appraisal rolls shall not relieve the person, firm or corporation so omitted from obligation to pay such current or past due taxes as shown to be payable by recheck of the rolls and receipts for the years in question, omitting penalty and interest. SECTION 7.22 Tax Liens, Liabilities and Suits (1) All taxable property located in the Town on January 1 of each year shall stand charged from that date with a special lien in favor of the Town for taxes due. All persons purchasing any such property on or after January 1 in any year shall take the property subject to the liens provided above. In addition to the liens herein provided, on January 1 of any year, the owner of property subject to taxation by the Town shall be personally liable for the taxes due for that year. (2) The Town shall have the power to sue for and recover personal judgement for taxes without foreclosure, or to foreclose its lien or liens, or to recover both personal judgement and foreclosure. In any such suit where it appears that the description of any property in the Town appraisal rolls is insufficient to identify such property, the Town shall have the right to plead a good description of the property to be assessed, to prove the same, and to have its judgement foreclosing the tax lien or for personal judgement against the owners for such taxes. Appendix Page 10 TOWN OF PROSPER ADMINISTRATIVE REGULATIONS CHAPTER 17: FINANCIAL MANAGEMENT POLICY SECTION 17.01: PURPOSE AND OVERVIEW This policy is developed to help guide the Finance Department, and staff in financial management and budgeting matters. The overriding goal of the Financial Management Policy is to enable the Town to achieve a long-term stable and positive financial condition while accomplishing the Town’s long-term strategic goals. All financial operations will be under the direction of the Town Manager, consistent with the council-manager form of government established in the Town Charter. The rapid growth experienced by the Town produces both financial opportunities and challenges. Often many years of sustained growth must occur before major capital expenditures for new facilities and infrastructure are justified and affordable. Often by the time needed improvements are made growth has slowed and only a limited amount of new revenue is available. If property tax revenues are not reserved for those future improvements including related staffing increases, significant financial stress and the need for major tax rate increases will occur. SECTION 17.02: SCOPE The scope of the Town’s Financial Management Policies spans accounting, auditing, financial reporting, internal controls, annual operating and multi-year capital budgeting, revenue management, cash management, expenditure control, and debt management. SECTION 17.03: ACCOUNTING, AUDITING, AND FINANCIAL REPORTING A. Accounting The Town’s Accounting Manager is responsible for establishing and maintaining the chart of accounts, and for properly recording financial transactions. B. Funds Self-balancing groups of accounts are used to account for the Town’s financial transactions in accordance with generally accepted accounting principles. Each fund is created for a specific purpose except for the General Fund, which is used to account for all transactions not accounted for in other funds. In essence, the General Fund is intended for governmental tax supported operations of the Town. Funds are created and fund names are changed by Town Council approval through resolution either during the year or in the Town Council’s approval of the annual operating budget ordinances. (See Fund Balance Policy) C. External Auditing Appendix Page 11 At the close of each fiscal year, and at such other times as may be deemed necessary, the Town Council shall call for an independent audit to be made of all accounts of the Town. The auditors must be a certified public accounting firm capable of conducting the Town’s audit in accordance with generally accepted auditing standards, generally accepted government auditing standards, and contractual requirements. No more than five (5) consecutive annual audits shall be completed by the same firm. The certified public accountant selected shall have no personal interest, directly or indirectly, in the financial affairs of the Town or any of its officers, be a member of the Government Audit Quality Center of the AICPA and have a minimum of ten other government audit and single audit clients. The report of the audit, with the auditor’s recommendations will be made to the Town Council. Upon completion of the audit, the Independent Auditor’s Report and Annual Financial Report shall be published on the Town’s website and copies of the audit placed on file in the office of the person performing the duties of Town Secretary, as public record. (See Town Charter Article VII, Section 7.18 Independent Audit) D. External Financial Reporting The Town will prepare and publish a Annual Comprehensive Financial Report (ACFR). The ACFR will be prepared in accordance with generally accepted accounting principles, and will be presented annually to the Government Finance Officers Association (GFOA) for evaluation and awarding of the Certification of Achievement for Excellence in Financial Reporting. The ACFR will include the General Fund Budget and Actual information as a basic financial statement and therefore included in the audit opinion. It will be published and presented to Town Council within 180 days after the end of the fiscal year. E. Internal Financial Reporting The Finance Department will prepare internal financial reports sufficient for management to plan, monitor, and control the Town’s financial affairs throughout the year. SECTION 17.04: INTERNAL CONTROLS A. Written Procedures The Finance Director is responsible for developing town-wide written guidelines on accounting, cash handling, grant management, and other financial matters. B. Department Directors Responsibilities Each department director is responsible to the Town Manager to ensure that good internal controls are followed throughout his or her department, that all guidelines on accounting and internal controls are implemented, and that all independent auditor internal control recommendations are addressed. SECTION 17.05: OPERATING BUDGET A. Preparation Appendix Page 12 The Town’s annual “Operating Budget” is legally adopted by ordinance and may only be amended by similar action. It consists of governmental and proprietary funds, including the general obligation and revenue supported Debt Service Fund, but excluding Capital Projects Funds which are adopted on a multi-year project basis. The budget is prepared by the Finance Department with the cooperation of all Town departments and is submitted to the Town Manager who makes any necessary changes and transmits the document on or before the fifteenth (15th) day of August of the fiscal year to Town Council. The proposed budget and all supporting schedules shall be filed with the Town Secretary when submitted to the Town Council and shall be open to public inspection by anyone interested. Thereafter, the Town Council should enact the final budget prior to fiscal year end. Balanced Budget The final adoption of the operating budget by the Town Council shall constitute the official appropriations as proposed by expenditures for the current year and shall constitute the basis of official levy of the property tax as the amount of tax to be assessed and collected for the corresponding tax year. Estimated recurring expenditures will not exceed proposed recurring revenue. Non-recurring expenditures may be funded from recurring revenues, non-recurring revenues and other sources or from undesignated fund balance in excess of the contingency reserve. Unused appropriations may be transferred during the year by the Town Manager within the level of budgetary control to any item required for the same general purpose. Items ordered during the year but not yet received will be encumbered and carried over for two months following year end at which they will expire unless carried over to the new year, Budgetary Display Formatting of the annual operating budget shall be done in a way so that readers can easily distinguish between: a) A structurally balanced “breakeven” budget in which recurring revenues are equal or greater than recurring expenditures and total expenditures and other uses are equal to total revenues and other uses resulting in an unchanged projected ending fund balance b) A surplus budget in which recurring revenues are equal or greater than recurring expenditures and total expenditures and other uses are less than total revenues and other sources resulting in a projected increase in fund balance. This budget should generally only be used when previous year fund balance has fallen below policy guidelines creating a need to rebuild fund balance. c) A structurally balanced budget in which recurring revenues are equal or greater than recurring expenditures but total expenditures and other uses including non-recurring expenditures and uses are greater than total revenues and other sources resulting in a planned drawdown of fund balance that is within policy guidelines. d) A deficit budget that is either unbalanced because recurring expenditures exceed recurring revenues or a budget that draws fund balance below policy guidelines. This type of budget is prohibited by this policy. B. Budgetary Control Appendix Page 13 The level of budgetary control is the department level budget in the General Fund, Utility Fund, and the fund level in all other funds. Under conditions which may arise and which could not reasonably have been foreseen in the normal process of planning the budget, the Town Council may, by the affirmative vote of a majority of the full membership of the Town Council, amend or change the budget to provide for any additional expense in which the general welfare of the citizenry is involved. These amendments shall be by ordinance, and shall become an attachment to the original budget. C. Tax Rate Management The property tax rate is divided into two categories by state law: Maintenance & Operations (M & O) and Debt Service (also referred to as the Interest & Sinking Fund or I & S). Debt service tax rate is strictly limited to payment of principal and interest on general obligation debt. Maintenance and operations can be used for a wider range of purposes but is limited by state law regarding how much revenue may increase before triggering a mandatory election. For this reason, once reduced, it is very difficult to increase. Recognizing the need to manage its debt levels and to have adequate revenue capacity to staff and operate future facilities without requiring a tax rate increase the Town will determine annually how much of the M & O rate can be designated a “Capital Dedicated/Future Facility Staffing". This levy will be used to reduce needed debt issuance but will ultimately be available to transfer back to the General Fund once growth has slowed but new facilities are still being brought on-line. D. Contingency Reserve Provisions shall be made in the annual budget maintaining a contingency reserve fund balance designation in an amount not less than twenty percent (20%) of the total general fund expenditures, to be used in case of unforeseen items of expenditure or revenue shortfalls. (See Town Charter Article VII, Section 7.08). It is also the goal of the Town to achieve and maintain an unassigned fund balance in the General Fund equal to five percent (5%) of budgeted expenditures for unanticipated expenditures, unforeseen revenue fluctuations, or other adverse circumstances. These contingency reserves are further detailed in the Town’s Fund Balance Policy. E. Planning The budget process will be coordinated in concert with the Town Council’s major strategic planning objectives. A one-year budget is adopted each year and a four-year financial plan is presented to help manage the decisions made for the next fiscal year and the impact it has on future fiscal responsibilities. F. Reporting Periodic financial reports will be prepared to enable the department directors to manage their budgets and to enable the Finance Department to monitor and control the budget as authorized by the Town Council. Summary financial reports will be presented to the Town Council each month. Such reports will include current year revenue and expenditures in comparison to budget and prior year actual revenues and expenditures. Performance Measures and Productivity Indicators Appendix Page 14 Where appropriate, performance measures and productivity indicators will be used as guidelines and reviewed for efficiency and effectiveness. This information will be included in the annual budgeting processes. SECTION 17.06: CAPITAL IMPROVEMENT PROGRAM A. Preparation The Town’s Capital Improvement Program will include all capital projects. The Capital Improvement Program will be prepared annually to be a comprehensive five-year (5) capital program as an attachment to the annual budget. B. Program Planning The program as submitted shall include: 1. A clear general summary of its contents; 2. A list of all capital improvements which are proposed to be undertaken during the five (5) fiscal years succeeding the budget year, with appropriate supporting information as to the necessity for such improvements; 3. Cost estimates, method of financing, and recommended time schedules for each improvement; and 4. The estimated annual cost of operating and maintaining the facilities to be constructed or acquired. The above information may be revised and extended each year with regard to capital improvements still pending or in process of construction or acquisition. The Capital Improvement Program will be updated and presented to the Town Council, annually. C. Alternate Resources Where applicable, assessments, impact fees, or other user-based fees should be used to fund capital projects, which have a primary benefit to certain property owners. D. Debt Financing Recognizing that debt is usually a more expensive financing method, alternative financing sources will be explored before debt is issued. When debt is issued, it will be used to acquire major assets with expected lives, which equal or exceed the average life of the debt issued. The exceptions to this requirement are the traditional costs of marketing and issuing the debt, capitalized labor for design and construction of capital projects, and small component parts, which are attached to major equipment purchases. E. Reporting Appendix Page 15 Periodic financial reports will be prepared to enable the department managers to manage their capital budgets and to enable the Finance Department to monitor the capital budget as authorized by the Town Council. SECTION 17.07: REVENUE MANAGEMENT A. Simplicity The Town will strive to keep the revenue system simple, which will result in a decrease of compliance costs for the taxpayer or service recipient and a corresponding decrease in avoidance to pay. B. Administration The benefits of revenue will exceed the cost of producing the revenue. The cost of collection will be reviewed annually for cost effectiveness. Where appropriate, the Town will use the administrative processes of state or federal collection agencies in order to reduce administrative costs. C. Dedication of Revenues Revenues will not be dedicated for specific purposes unless required by law or contractual provisions.. All non-restricted revenues will be deposited into the General Fund and appropriated by the budget process. D. Financial Stability Current revenues will fund current expenditures and one-time revenues will not be used for ongoing operations. Non-recurring revenues will be used only for non-recurring expenditures. Care will be taken not to use these revenues for budget balancing purposes. E. Property Tax Revenues Property shall be assessed at 100% of the fair market value as appraised by the Collin and Denton Appraisal Districts. Reappraisal and reassessment shall be done regularly, as required by state law. All delinquent taxes will be pursued and turned over to a private attorney. A penalty will be assessed to compensate the attorney as allowed by state law, and in accordance with the attorney’s contract. F. User-Based Fees For services associated with a user fee or a fee to offset charge, the direct and indirect costs of that service will be imposed. There will be a periodic review of fees and charges to ensure that Appendix Page 16 fees provide adequate coverage of costs of services. User charges may be classified as “full cost recovery,” “partial cost recovery,” and “minimal cost recovery,” based on Town Council policy. G. Impact Fees Impact fees are currently imposed for water, wastewater, and roadway in accordance with applicable Town ordinances and state law. Impact fees will be re-evaluated at least every five years, as required by law. H. Utility Rates The Town will review utility rates periodically, and if necessary, adopt new rates that will generate revenues required to fully cover operating expenses, meet the legal restrictions of all applicable bond covenants, and provide for an adequate level of working capital needs and debt service requirements. This policy does not preclude drawing down cash balance to finance current operations. However, it is best that any extra cash balance be used instead to finance capital projects. I. Interest Income Interest earned from investment of available cash resources, whether pooled or not, will be distributed to the funds in accordance with the average monthly cash balances. J. Revenue Monitoring Revenues actually received will be regularly compared to budgeted revenues and variances will be investigated. This process will be summarized in the appropriate budget report. SECTION 17.08: EXPENDITURE CONTROL A. Appropriations The level of budgetary controls is explained in Section 17.05.C. Budgetary Control. When budget amendments between departments and/or funds are necessary, Town Council must approve these. Budget appropriation amendments at lower levels of control shall be made in accordance with the applicable administrative procedures. B. Purchasing All purchases shall be in accordance with the Town’s Purchasing Policy. C. Lapse of Appropriations Every appropriation, except an appropriation for capital expenditures, shall lapse at the close of the fiscal year to the extent that it has not been expended or encumbered. An appropriation for a capital expenditure shall continue in force until the purpose for which it was made has been Appendix Page 17 accomplished or abandoned. The purchase of any such appropriation shall be deemed abandoned if three (3) years pass without any disbursement form or encumbrance of the appropriation. Any funds not expended, disbursed or encumbered shall be deemed excess funds. SECTION 17.09: ASSET MANAGEMENT A. Investments The Town’s investment practices will be conducted in accordance with the Public Funds Investment Act (PFIA) and the Town Council approved Investment Policy and Strategy. B. Cash Management The Town’s cash flow will be managed to maximize the cash available to invest. C. Investment Performance A quarterly report on investment performance will be provided by the Finance Director for presentation to the Town Council. D. Fixed Assets and Inventory These assets will be reasonably safeguarded and properly accounted for, and prudently insured. SECTION 17.10: FINANCIAL CONDITION AND RESERVES A. No Operating Deficits Current expenditures will be paid with current revenues and prior year surplus. Deferrals, short-term loans, or one-time resources will be avoided as budget balance techniques. Reserves will be used only for emergencies or non-recurring expenditures. B. Operating Reserves In accordance with GASB-54, it is the policy of the Town to classify fund balances as Non-spendable, Restricted, Committed, Assigned, or Unassigned and develop policy for establishment and activity of each classification. See Fund Balance Policy that defines such categories. C. Minimum Unassigned Fund Balance It is the goal of the Town to achieve and maintain an unassigned fund balance in the General Fund equal to five percent (5%) of budgeted expenditures for unanticipated expenditures, unforeseen revenue fluctuations, or other adverse circumstances. This amount is in addition to the twenty percent (20%) restricted fund balance amount required by the Town Charter. Appendix Page 18 D. Risk Management Program The Town will aggressively pursue every opportunity to provide for the public’s and Town employees’ safety and to manage its risks. E. Loss Financing All reasonable options will be investigated to finance losses. Such options may include risk transfer, insurance, and risk retention. F. Enterprise Fund Self-Sufficiency The Town’s enterprise funds’ resources will be sufficient to fund operating and capital expenditures. The enterprise funds will pay (where applicable) their fair share of general and administrative expenses in lieu of property taxes and/or franchise fees. If an enterprise fund is temporarily unable to pay all expenses, then the Town Council may waive general and administrative expenses in lieu of property taxes and/or franchise fees until the fund is able to pay them. G. Special Purpose Districts Cash Reserves The Town has two Special Purpose Districts: Crime Control and Prevention Special Purpose District; and Fire Control, Prevention and Emergency Medical Services Special Purpose District. It is the desire of the Town to maintain a cash reserve balance equal to twenty-five thousand dollars in each of the Special Purpose Districts beginning in fiscal year 20-21 and future fiscal years. H. Contingent Budget Measures Economic downturns including recessions are inevitable even in a rapidly growing community. The dynamic economy of both Texas and Dallas Fort Worth metroplex and Prosper’s location in the northern growth path make it likely that even recessions will be more a “pause” rather than a “stop”. However, the town must ensure that a structurally balanced budget is maintained even if debt issuance and staffing additions must be paused until the economy recovers. SECTION 17.11: DEBT MANAGEMENT A. General The Town’s borrowing practices will be conducted in accordance with the Town Council approved Debt Management and Debt Post Issuance Policies. B. Self-Supporting Debt When appropriate, self-supporting revenues will pay debt services in lieu of tax revenues. Appendix Page 19 C. Analysis of Financing Alternatives The Town will explore all financing alternatives in addition to long-term debt including leasing, grants and other aid, developer contributions, impact fees, and use of reserves. D. Voter Authorization The Town shall obtain voter authorization before issuing General Obligation Bonds as required by law. In general, voter authorization is not required for the issuance of Revenue Bonds and Certificates of Obligation. SECTION 17.12: STAFFING AND TRAINING A. Adequate Staffing Staffing levels will be adequate for the fiscal functions of the Town to function effectively. Comparison of workload and staffing levels of comparison cities will be explored before adding staff. B. Training The Town will support the continuing education efforts of all financial staff including the investment in time and materials for maintaining a current perspective concerning financial issues. Staff will be held accountable for communicating, teaching, and sharing with other staff members all information and training materials acquired from seminars, conferences, and related education efforts. C. Awards, Credentials The Town will support efforts and involvements which result in meeting standards and receiving exemplary recitations on behalf of any of the Town’s fiscal policies, practices, processes, products, and personnel. Staff certifications may include Certified Public Accountant, Certified Management Accountant, Certified Internal Auditor, Certified Payroll Professional, Certified Government Finance Officer, Professional Public Buyer, Certified Cash Manager, PFIA investment training, and others as approved by the Town Manager upon recommendation of the Finance Director. SECTION 17.13: GRANT MANAGEMENT A. General The Town’s grant management practices will be conducted in accordance with the Town’s Grant Management Policy. Appendix Page 20 TOWN OF PROSPER ADMINISTRATIVE REGULATIONS CHAPTER 15:C DEBT MANAGEMENT POLICY SECTION 15.01: PURPOSE AND OVERVIEW The Town of Prosper recognizes that the foundation of any well-managed debt program are comprehensive debt management and post issuance policies that are fully integrated with the long-term capital plan and related five-year operating budget forecasts. This policy outlines the need to identify all possible non-debt capital plan funding sources first, and then establishes parameters for issuing new debt and managing the existing debt portfolio. It identifies permissible and preferred types, structures and amounts of debt; providing guidance to decision makers regarding the purposes for which debt may be issued. This policy is aligned and compliments Chapter 16: Debt Post Issuance-Monitoring and Compliance Policy. Adherence to a debt management policy helps ensure that the Town maintains the current or an improved bond rating in order to minimize borrowing costs and preserve access to credit. The Town’s Debt Management Policy (“the Debt Policy”) provides guidance for staff to promote: 1.High quality debt management decisions;2.Support for debt issuances both internally and externally;3.Order and discipline in the debt issuance process;4.Consistency and continuity in the decision making process;5.A positive perception of the debt management program by rating agencies, investmentcommunity and taxpayers; and6.A commitment to long-term financial planning objectives. SECTION 15.02: SCOPE This Policy applies to all debt instruments issued by the Town regardless of the funding source. Funding sources can be derived from, and debt secured by, ad valorem taxes, general Town revenues, enterprise fund revenues or any other identifiable source of revenue that may be identified for appropriate pledging for bonded indebtedness. SECTION 15.03: OBJECTIVES The primary objective of this Policy is to ensure that the Town establishes and maintains a solid position with respect to its debt service and bond proceed funds and that proceeds from long-term Appendix Page 21 debt will not be used for current operations but rather for capital improvements, and related expenses, and other long-term assets in accordance with state law and Town ordinances. The Town will seek all possible federal and state reimbursement for mandated projects and/or programs. The Town will pursue a balanced relationship between issuing debt and pay-as-you-go financing as dictated by prevailing economic factors and as directed by the Town Council. Other objectives include: 1.Bonds shall be paid back within a period not to exceed, and preferably sooner than, theexpected useful life of the capital project;2.Decisions shall be made based on a number of factors and will be evaluated against long- term goals rather than a short-term fix; and3.Debt service and bond proceed funds shall be managed and invested in accordance with allfederal, state and local laws and in conjunction with the Tax Compliance Certificate of eachbond issue to assure availability to cover project costs and debt service payments when due. SECTION 15.04: IMPLEMENTATION The Policy requires: 1.Payment of principal and interest on all outstanding debt in full and timely manner;2.Incurrence of debt for those purposes permissible under State law and the home-rule charterof the Town;3. Development, approval and financing of capital improvements in accordance with Town Codeand the capital improvement budgeting process;4.Structuring of principal and interest retirement schedules to: 1) achieve a low borrowing costfor the Town, 2) accommodate the debt service payments of existing debt, and 3) respond toperceptions of market demand. Shorter maturities shall always be encouraged todemonstrate to rating agencies that debt is being retired at a sufficiently rapid pace;5.Selection of a method of sale that shall maximize the financial benefit to the Town;6.Effective communication with bond rating agencies to ensure complete and clearunderstanding of the credit worthiness of the Town; and7.Full, complete, and accurate disclosure of financial conditions and operating results in everyfinancial report, bond prospectus and Annual Information Statement ("AIS"). All reports shallconform to guidelines issued by the Government Finance Officers Association ("GFOA"),Securities and Exchange Commission ("SEC"), and the Internal Revenue Service (IRS) to meetthe disclosure needs of rating agencies, underwriters, investors, and taxpayers. Appendix Page 22 SECTION 15.05: STRUCTURE OF DEBT Debt service shall be structured to the greatest extent possible to: 1.Target projected cash flows and pledged revenues;2.Minimize the impact on future tax levies;3.Target a consistent and as rapid as feasible payment of principal;4.Maintain a level overall annual debt service payment structure; and5.Target the equal or the lesser of the useful life of the asset being financed, or the maximumlegal maturity for the obligations issued to finance the acquisition and construction of theasset. A.Fixed Interest versus Variable InterestThe Town generally issues fixed rate bonds primarily to protect the Town against interest raterisk. The Town has the option to issue variable rate bonds if market conditions warrant andCouncil approves it. B.Other ConsiderationsBonds are generally issued such that:1.The final maturity is 20 years or less for general obligation bonds and revenue bonds, theTown may choose a longer term for revenue bonds for projects whose lives are greater than20 years.2.Debt service interest is paid in the first fiscal year after a bond sale, and principal is targetedto commence no later than the second fiscal year after the debt is issued. However, the Townmay defer principal for a longer period of time in order to maintain a specific I&S tax rate ora certain level of debt service.3.Call provisions for bond issues shall be made as short as possible consistent with the lowestinterest cost to the Town. The targeted maximum length to call is 10 years. SECTION 15.06: FINANCING ALTERNATIVES The Town shall develop a level of cash and debt funded capital improvement projects that provide the citizens with the desired amount of Town services at the lowest cost. Town staff shall assess all financial alternatives for funding capital improvements prior to issuing debt. Appendix Page 23 Long-term general obligation debt, including certificates of obligation, or revenue bonds shall be issued to finance significant and desirable capital improvements. Proceeds of general obligation debt will be used only for the purposes approved by voters in bond elections or set forth in the notices of intent for certificates of obligation or to refund previously issued general obligation bonds, certificates of obligation or revenue bonds. All bonds shall be sold in accordance with applicable law. A.Pay-As-You-Go FinancingPay-as-you-go financing should be considered before issuing any debt. Pay-as-you go financingmay include: intergovernmental grants from federal, state and other sources, current revenuesor fund balances, private sector contributions, and public/private partnerships. Once the Townhas determined that pay-as-you-go is not a feasible or sufficient financing option, the Town mayuse bonds, loans, or other debt financing sources as deemed appropriate by Town staff andapproved by Council. B.General Obligation BondsGeneral obligation bonds may be used if the following criteria are met:1.The size of the issuance is $1 million or above;2.The GO bond funds are used for new and expanded facilities, major repair or renovations toexisting facilities, or quality-of-life projects;3.The useful life of the capital asset acquired/constructed/improved will be ten (10) years ormore, or the funds will extend the useful life of an asset for more than ten (10) years; and4.Voter authorization is given through approval in a bond election in accordance with State law.GO bonds may be used to fund quality-of-life projects that include, but are not limited to, the Town’s parks, libraries, non-public safety facilities, internet and entertainment, sports and amusement-type facilities. C.Certificates of ObligationCOs will be issued for the following projects/acquisitions:1.Finance permanent improvements and land acquisition;2.Acquire equipment/vehicles;3.Leverage grant funding;4.Renovate, acquire, construct facilities and facility improvements;5.Construct street improvements;6.Provide funding for master plans/studies; Appendix Page 24 7.Infrastructure projects (including street, water and sewer and drainagework)8.Emergency Town facilities rehabilitation (storm water drainage, etc.)9.Major core service facilities (police, fire, streets, etc.)Notwithstanding the policy set forth herein, certificates of obligation or other long-term debt may be considered if the following criteria are met: 1.The need for the project is urgent and immediate;2.The project(s) is necessary to prevent an economic loss to the Town;3.Source of revenue is specific and can be expected to cover the additional debt;4.The expected debt is the most cost effective financing option available.In addition, the final maturity of non-voter approved debt shall not exceed the average life of the project financed. Capital items shall have a value of at least $5,000 and a life of at least four years. D.Reimbursement ResolutionsReimbursement resolutions, if required for funds to be advanced prior to issuance of generalobligation debt, may be used for projects funded through General Obligation Bonds andCertificates of Obligation. E.Certificates of Obligations - Enterprise FundCertificates of obligation for an enterprise system will be limited to only those projects, whichcan demonstrate the capability to support the certificate debt either though its own revenues, oranother pledged source other than ad valorem taxes and meet the same criteria as outlined above. F.Revenue BondsRevenue bonds may be issued for projects that generate revenues that are sufficient to repay thedebt. Except where otherwise required by state statutes, revenue bonds may be issued withoutvoter approval and only in accordance with the laws of Texas. G.Other debt obligationsThe use of other debt obligations, permitted by law, including but not limited to public propertyfinance act contractual obligations, pension obligation bonds; tax notes and lease purchaseobligations will be reviewed on a case-by-case basis. The findings above will be considered forthe use of these obligations. Appendix Page 25 SECTION 15.07: METHODS OF SALE The Town’s debt obligations may be sold by competitive or negotiated sale methods. The selected method of sale depends upon the option which is expected to result in the lowest cost and most favorable terms to the Town given the financial structure used, market conditions, and prior experience. When considering the method of sale, the Town may consider the following issues: 1.Financial conditions;2.Market conditions;3.Transaction-specific conditions;4.Town-related conditions;5.Risks associated with each method;6.Complexity of the Issue – Municipal securities with complex security features require greatermarketing and buyer education efforts on the part of the underwriter, to improve theinvestors’ willingness to purchase;7.Volatility of Bond Yields – If municipal markets are subject to abrupt changes in interest rates,there may be a need to have some flexibility in the timing of the sale to take advantage ofpositive market changes or to delay a sale in the face of negative market changes;8.Familiarity of Underwriters with the Town’s Credit Quality – If underwriters are familiar withthe Town’s credit quality, a lower True Interest Cost (TIC) may be achieved. Awareness of the credit quality of the Town has a direct impact on the TIC an underwriter will bid on an issue.Therefore, where additional information in the form of presale marketing benefits theinterest rate, a negotiated sale may be recommended. The Town strives to maintain anexcellent bond rating. As a result, the Municipal Bond Market is generally familiar with theTown’s credit quality; and9.Size of the Issue – The Town may choose to offer sizable issues as negotiated sales so thatpre-marketing and buyer education efforts may be done to more effectively promote the bondsale. A.Competitive SaleIn a competitive sale, bonds are awarded in a sealed bid sale to an underwriter or syndicate ofunderwriters that provides the lowest TIC bid. TIC is defined as the rate, which will discount theaggregate amount of debt service payable over the life of the bond issue to its present value onthe date of delivery. It is customary for bids to be submitted electronically through a securewebsite. Appendix Page 26 B.Negotiated SaleIn a negotiated sale, the Town chooses an underwriter or underwriting syndicate that isinterested in reoffering a particular series of bonds to investors. The terms of the sale, includingthe size of the underwriter’s discount, date of sale, and other factors, are negotiated between thetwo parties. Although the method of sale is termed negotiated, individual components of the salemay be competitively bid. The components are subject to a market analysis and reviewed priorto recommendation by staff. Negotiated sales are more advantageous when flexibility in the saledate is needed or when less conventional bond structures are being sold. Negotiated sales arealso often used when the issue is particularly large or if the sale of the debt issuance would beperceived to be more successful with pre-marketing efforts. C.Private PlacementA private placement is a negotiated sale of debt securities to a limited number of selectedinvestors including financial institutions, government agencies, or authorities. The Town mayengage a placement agent to identify likely investors if deemed necessary. A private placementmay be beneficial when the issue size is small, when the security of the bonds is somewhatweaker, or when a governmental lending agency or authority can provide beneficial interestrates or terms compared to financing in the public market. SECTION 15.08: REFUNDING OF DEBT All forms of refunding debt shall be approved by Council in accordance with Town ordinances and the Department of Finance and Administration in accordance with state law. A.Advance RefundingAdvanced refunding and forward delivery refunding transactions for savings may be consideredwhen the net present value savings as a percentage of the par amount of refunded bonds isapproximately three percent. B.Current RefundingCurrent refunding transactions issued for savings maybe considered when the net present valuesavings as a percentage of the par amount of refunded bonds is approximately three percent. C.Refunding for Debt RestructuringFrom time to time, the Town may also issue refunding debt for other purposes, rather than netpresent value savings, such as restructuring debt, changing covenants, or changing the repayment source of the bonds. Appendix Page 27 SECTION 15.09: DEBT LIMITS The total principal amount of general obligation bonds together with the principal amount of all other outstanding tax indebtedness of the Town to be repaid from the Debt Service Fund will be targeted to not exceed four percent of the total assessed valuation of the Town's tax rolls. The Town will target an I&S tax rate that makes up 40% or less of the Town’s total tax rate (M&O tax rate plus I&S tax rate). The Enterprise Fund will target the net revenues available for debt service to exceed 125 times the outstanding revenue-backed debt service payments. SECTION 15.10: MATURITY LEVELS A.Revenue DebtThe maximum maturity of revenue debt shall not exceed the expected useful life of the capitalasset being financed and in no case shall it exceed thirty years. B.General Obligation DebtThe maximum maturity of general obligation debt shall be targeted not to exceed twenty years. SECTION 15.11: MANAGEMENT OF DEBT SERVICE FUND A.Interest EarningsInterest earnings on bond and loan proceeds shall be used solely to fund direct or related capitalexpenditures, or to service current and future debt payments. B.Debt Service Reserves – General Obligation BondsDebt service reserves for general obligation bonds shall not be required. C.Debt Service Reserves – Revenue BondsDebt service reserves for revenue bonds shall be maintained at levels required by controllingbond ordinances. D.Legal Regulatory and Covenant RequirementsThe Town shall comply with all Federal and State laws, SEC regulations and related contractualand covenant requirements. See Chapter 16: Debt Post Issuance Monitoring and Compliance. Appendix Page 28 SECTION 15.12: RATINGS Adherence to a debt management policy helps insure that the Town maintains the current or an improved bond rating in order to minimize borrowing costs and preserve access to credit. Toward that end, the Town will take the following steps. 1.Strive to maintain good relationships with bond rating agencies as well as disclose financialreports and information to these agencies and to the public.2.Obtain a rating from at least one nationally recognized bond-rating agency on all issues beingsold in the public market.3.Make timely disclosure of annual financial information or other requested information to therating agencies. SECTION 15.13: CONTINUING DISCLOSURE The Town will take all appropriate steps to comply with federal securities laws, including, but not limited to, Securities and Exchange Commission Rule 15c2-12 (the "Rule"). The Town will make annual and event disclosure filings to the MSRB via EMMA, as required by the Rule and its continuing disclosure undertakings. SECTION 15.14: SELECTION OF FINANCIAL ADVISOR The Town shall retain an independent financial advisor for advice on the structuring of new debt, financial analysis of various options, including refunding opportunities, the rating review process, the marketing and marketability of Town debt obligations, issuance and post- issuance services, the preparation of offering documents (each, an "Official Statement") and other services, as necessary. The Town will seek the advice of the financial advisor on an ongoing basis. The financial advisor will perform other services as defined by the agreement approved by the Town Council. The financial advisor will not bid on nor underwrite any Town debt issues in accordance with MSRB rules. SECTION 15.15: SELECTION OF BOND COUNSEL The Town shall retain bond counsel for legal and procedural advice on all debt issues. Bond counsel shall advise the Town Council in all matters pertaining to its bond ordinance(s) and /or resolution(s). No action shall be taken with respect to any obligation until a written instrument (e.g., Certificate for Ordinance or other legal instrument) has been prepared by the bond attorneys certifying the legality of the proposal. The bond attorneys shall prepare all ordinances and other legal instruments required for the execution and sale of any bonds issued which shall then be reviewed by the Town Attorney and the Director of Finance. The Town will also seek the advice of bond counsel on all other types of debt and on any other questions involving state law and federal tax or arbitrage law. Special counsel may be retained to protect the Town's interest in complex negotiations. Appendix Page 29 TOWN OF PROSPER ADMINISTRATIVE REGULATIONS CHAPTER 16: DEBT POST ISSUANCE POLICY SECTION 16.01: PURPOSE AND OVERVIEW The Town of Prosper will establish all necessary debt post issuance procedures to ensure compliance with all federal, state, contractual and covenant requirements. SECTION 16.02: GENERAL PROCEDURES A.The Tax Compliance Certificate1.The Tax Compliance Certificate ("Tax Certificate") issued for each bond issue describing therequirements and provisions of the Code must be followed in order to maintain the tax-exempt status of the interest on such bonds.2.The Tax Certificate will contain the reasonable expectations of the Town at the time ofissuance of the related bonds with respect to the use of the gross proceeds of such bonds and the assets to be financed or refinanced with the proceeds thereof.3.Procedures put in place by the Town supplement and support the covenants andrepresentations made by the Town in the Tax Certificate related to specific issues of tax-exempt bonds. In order to comply with the covenants and representations set forth in thebond documents and in the Tax Certificate, the Town will monitor all Town bond issues using the post issuance compliance requirements. B.State ComplianceThe local government code and other state statutes contain various requirements related tofiling a debt issuance for review by the attorney general and filing debt related information withthe Comptroller of Public Accounts. C.Federal- SEC Continuing Disclosure RequirementsThe Securities and Exchange Commission has promulgated various requirementsfor underwriters of municipal debt requiring issuers to file specified continuingdisclosures on an annual basis as well as event notices of a material nature withinten business days of the occurrence of the event. Specific financial and operatingdata to be included in the annual continuing disclosure filings are listed in each ofthe Town’s Official Statements. It should be noted that once a disclosure iscommitted to in an official statement that requirement remains in effect until alldebt from that specific official statements is retired even if less stringent Appendix Page 30 requirements are included in future official statements. SECTION 16.03: DESIGNATION OF RESPONSIBLE PERSON The Finance Director shall maintain an inventory of bonds and assets financed which contain the pertinent data to satisfy the Town's monitoring responsibilities. Any transfer, sale or other disposition of bond-financed assets shall be reviewed and approved by the Town Council in accordance with state law, federal tax law and the Town’s ordinances. SECTION 16.04: EXTERNAL ADVISORS/DOCUMENTATION The Town shall consult with bond counsel and other legal counsel and advisors, as needed, throughout the issuance process to identify requirements and to establish procedures necessary or appropriate so that the bonds will continue to qualify for tax-exempt status. Those requirements and procedures shall be documented in the Tax Certificate and/or other documents finalized at or before issuance of the bonds. Those requirements and procedures shall include future compliance with applicable arbitrage rebate requirements and all other applicable post-issuance requirements of federal tax law throughout (and in some cases beyond) the term of the bonds. 1.The Town also shall consult with bond counsel and other legal counsel and advisors asneeded following issuance of the bonds to ensure that all applicable post-issuancerequirements are met. This shall include, without limitation, consultation in connection withfuture long-term contracts with private parties for the use of bond- financed or refinancedassets.2.The Town shall engage expert advisors (a "Rebate Service Provider") to assist in thecalculation of the arbitrage rebate payable with respect to the investment of the bondproceeds, unless the Tax Certificate documents that arbitrage rebate will not be applicableto an issue of bonds.3.Unless otherwise provided by the resolution or other authorizing documents relating to thebonds, unexpended bond proceeds shall be held in a segregated bond account. Theinvestment of bond proceeds shall be managed by the Town. The Town shall prepare regular, periodic statements regarding the investments and transactions involving bond proceeds. SECTION 16.05: ARBITRAGE REBATE AND YIELD Unless the Tax Certificate documents that arbitrage rebate will not be applicable to an issue of bonds, the Town shall be responsible for: 1.Engaging, by contract, the services of a Rebate Service Provider, procured in accordance with State law and Town ordinances.2.Providing to the Rebate Service Provider, as may be requested, additional documents andinformation pertaining to the expenditure of proceeds from each bond issue being annuallyreviewed.3.Monitoring the services of the Rebate Service Provider. Appendix Page 31 4.Assuring payment of the required rebate amounts, if any, no later than sixty (60) days aftereach five (5) year anniversary of the issue date of the bonds, and no later than sixty (60)days after the last bond of each issue is redeemed.5.During the construction period of each capital project financed in whole or in part by bonds,monitoring the investment and expenditure of bond proceeds and consulting with the Rebate Service Provider to determine compliance with the applicable exceptions with any arbitragerebate requirements.6.Retaining copies of all arbitrage reports and account statements as described below under"Record Keeping Requirements.” SECTION 16.06: USE OF BOND PROCEEDS AND BOND-FINANCED OR REFINANCED ASSETS The Town, in the Tax Certificate and/or other documents finalized at or before the issuance of the bond, shall be responsible for the following tasks: 1.Monitoring the use of bond proceeds and the use of bond-financed or refinanced assets (e.g.,facilities, furnishing or equipment) throughout the term of the bonds to ensure compliancewith covenants and restrictions set forth in the Tax Certificate.2.Maintaining records identifying the capital assets or portion of capital assets that arefinanced or refinanced with proceeds of the bonds, including a final allocation of bondproceeds, as described below under Record Keeping Requirements.3.Consulting with bond counsel and other legal counsel and advisors in the review of anycontracts or arrangements involving private use of bond-financed or refinanced assets toensure compliance with all covenants and restrictions s et forth in the Tax Certificate.4.Maintaining records for any contracts or arrangements involving the use of bond- financedor refinanced assets, as described below under Record Keeping Requirements.5.To the extent that the Town discovers that any applicable tax restrictions regarding use ofthe bond proceeds and bond-financed or refinanced assets may have or may be violated,consulting promptly with bond counsel and other legal advisors to determine a course ofaction to remediate all non-qualified bonds, if such counsel advises that a remedial action isnecessary. SECTION 16.07: RECORD KEEPING REQUIREMENT The Town shall be responsible for maintaining the following documents for the term of the issuance of bonds (including refunding bonds, if any) plus at least three years. 1.A copy of the bond closing transcript(s) and other relevant documentation delivered to theTown at or in connection with closing of the issuance of bonds, including any electionsmade by the Town in connection therewith.2.A copy of all material documents relating to capital expenditures financed or refinanced by Appendix Page 32 bond proceeds, including (without limitation) construction contracts, purchase orders, invoices, requisitions and payment records, draw requests for bond proceeds and evidence as to the amount and date for each draw down of bond proceeds, as well as documents relating to costs paid or reimbursed with bond proceeds and records identifying the asset or portion of assets that are financed or refinanced with bond proceeds, including a final allocation of bond proceeds. 3.A copy of all contracts and arrangements involving the use of bond-financed or refinancedassets.4.A copy of all records of investments, investment agreements, arbitrage reports andunderlying documents in connection with any investment agreements, and copies of allbidding documents, if any. [Paying agent account statements, bank statements for reservefunds, etc.] Appendix Page 33 Town Staff Town Manager's Office Town Secretary's Office Finance Human Resources Information Technology Communications Municipal Court Police Fire Infrastructure Services Development Services Public Works Parks and Recreation Library Engineering Consultants Auditors Bond Counsel Town Attorney Financial Advisors Risk Management Town Staff and Consultants Mario Canizares, Town Manager Bob Scott, Deputy Town Manager Michelle Lewis Sirianni, Town Secretary Chris Landrum, Finance Director Tony Luton, Human Resources Director Leigh Johnson, Information Technology Director Robyn Battle, Executive Director Judith Jacinto, Court Administrator Doug Kowalski, Police Chief Stuart Blasingame, Fire Chief Chuck Ewings, Assistant Town Manager David Hoover, Development Services Director Carrie Jones, Public Works Director Dan Baker, Parks and Recreation Director Gary Landeck, Library Director Hulon Webb, Director of Engineering Services Weaver & Tidwell, L.L.P. - Sara Dempsey McCall, Parkhurst & Horton, L.L.P. - Chris Settle Brown & Hofmeister, L.L.P. ‐ Terry Welch Hilltop Securities, Inc ‐ Jason Hughes TML Intergovernmental Risk Pool Appendix Page 34 Form developed by: Texas Comptroller of Public Accounts, Property Tax Assistance Division For additional copies, visit: comptroller.texas.gov/taxes/property-tax 50-856 • 3-25/12 Form 50-856 ____________________________________________________________________________ ________________________________ ____________________________________________________________________________ ________________________________ 2025 Tax Rate Calculation Worksheet Taxing Units Other Than School Districts or Water Districts Taxing Unit Name Phone (area code and number) Taxing Unit’s Address, City, State, ZIP Code Taxing Unit’s Website Address GENERAL INFORMATION: Tax Code Section 26.04(c) requires an officer or employee designated by the governing body to calculate the no-new-revenue (NNR) tax rate and voter-approval tax rate for the taxing unit. These tax rates are expressed in dollars per $100 of taxable value calculated. The calculation process starts after the chief appraiser delivers to the taxing unit the certified appraisal roll and the estimated values of properties under protest. The designated officer or employee shall certify that the officer or employee has accurately calculated the tax rates and used values shown for the certified appraisal roll or certified estimate. The officer or employee submits the rates to the governing body by Aug. 7 or as soon thereafter as practicable. School districts do not use this form, but instead use Comptroller Form 50-859 Tax Rate Calculation Worksheet, School District without Chapter 313 Agreements or Comptroller Form 50-884 Tax Rate Calculation Worksheet, School District with Chapter 313 Agreements. Water districts as defined under Water Code Section 49.001(1) do not use this form, but instead use Comptroller Form 50-858 Water District Voter-Approval Tax Rate Worksheet for Low Tax Rate and Developing Districts or Comptroller Form 50-860 Developed Water District Voter-Approval Tax Rate Worksheet. The Comptroller’s office provides this worksheet to assist taxing units in determining tax rates. The information provided in this worksheet is offered as technical assistance and not legal advice. Taxing units should consult legal counsel for interpretations of law regarding tax rate preparation and adoption. SECTION 1: No-New-Revenue Tax Rate The NNR tax rate enables the public to evaluate the relationship between taxes for the prior year and for the current year based on a tax rate that would produce the same amount of taxes (no new taxes) if applied to the same properties that are taxed in both years. When appraisal values increase, the NNR tax rate should decrease. The NNR tax rate for a county is the sum of the NNR tax rates calculated for each type of tax the county levies. While uncommon, it is possible for a taxing unit to provide an exemption for only maintenance and operations taxes. In this case, the taxing unit will need to calculate the NNR tax rate separately for the maintenance and operations tax and the debt tax, then add the two components together. Line No-New-Revenue Tax Rate Worksheet Amount/Rate 1. Prior year total taxable value. Enter the amount of the prior year taxable value on the prior year tax roll today. Include any adjustments since last year’s certification; exclude Tax Code Section 25.25(d) one-fourth and one-third over-appraisal corrections from these adjustments. Exclude any property value subject to an appeal under Chapter 42 as of July 25 (will add undisputed value in Line 6). This total includes the taxable value of homesteads with tax ceilings (will deduct in Line 2) and the captured value for tax increment financing (adjustment is made by deducting TIF taxes, as reflected in Line 17).1 $ _____________ 2. Prior year tax ceilings. Counties, cities and junior college districts. Enter the prior year total taxable value of homesteads with tax ceilings. These include the homesteads of homeowners age 65 or older or disabled. Other taxing units enter 0. If your taxing unit adopted the tax ceiling provision last year or a prior year for homeowners age 65 or older or disabled, use this step.2 $ _____________ 3. Preliminary prior year adjusted taxable value. Subtract Line 2 from Line 1. $ _____________ 4. Prior year total adopted tax rate. $ /$100 __________ 5. Prior year taxable value lost because court appeals of ARB decisions reduced the prior year’s appraised value. ....................................................................... $ _____________ ................................................ -$ _____________ $ _____________ 6. Prior year taxable value subject to an appeal under Chapter 42, as of July 25. ....................................................................... $ _____________ ............................................................................ -$ _____________ $ _____________ 7. Prior year Chapter 42 related adjusted values. Add Line 5C and Line 6C. $ _____________ 1 Tex. Tax Code §26.012(14) 2 Tex. Tax Code §26.012(14) 3 Tex. Tax Code §26.012(13) 4 Tex. Tax Code §26.012(13) N/A A. Original prior year ARB values: N/A B. Prior year values resulting from final court decisions: N/A C. Prior year value loss. Subtract B from A.3 N/A A. Prior year ARB certified value: N/A B. Prior year disputed value: N/A C. Prior year undisputed value. Subtract B from A. 4 N/A N/A N/A N/A N/A N/A Town of Prosper 972-346-2640 250 W. First Street, Prosper, TX 75078 www.prospertx.gov 10,308,950,425 868,551,225 9,440,399,200 0.505000 367,562,767 353,046,749 14,516,018 147,024,191 18,335,602 128,688,589 143,204,607 Appendix Page 35 2025 Tax Rate Calculation Worksheet – Taxing Units Other Than School Districts or Water Districts Form 50-856 For additional copies, visit: comptroller.texas.gov/taxes/property-tax Page 2 Line No-New-Revenue Tax Rate Worksheet Amount/Rate 8. Prior year taxable value, adjusted for actual and potential court-ordered adjustments. Add Line 3 and Line 7. $ _____________ 9. Prior year taxable value of property in territory the taxing unit deannexed after Jan. 1, 2024. Enter the prior year value of property in 5deannexed territory. $ _____________ 10. Prior year taxable value lost because property first qualified for an exemption in the current year. If the taxing unit increased an original exemption, use the difference between the original exempted amount and the increased exempted amount. Do not include value lost due to freeport, goods-in-transit, temporary disaster exemptions. Note that lowering the amount or percentage of an existing exemption in the current year does not create a new exemption or reduce taxable value. _____________ _____________ $ _____________ 11. Prior year taxable value lost because property first qualified for agricultural appraisal (1-d or 1-d-1), timber appraisal, recreational/ scenic appraisal or public access airport special appraisal in the current year. Use only properties that qualified for the first time in the current year; do not use properties that qualified in the prior year. _____________ _____________ $ _____________ 12. Total adjustments for lost value. Add Lines 9, 10C and 11C. $ _____________ 13.Prior year captured value of property in a TIF. Enter the total value of the prior year captured appraised value of property taxable by a taxing unit in a tax increment financing zone for which the prior year taxes were deposited into the tax increment fund. 8 If the taxing unit has no captured appraised value in line 18D, enter 0. $ _____________ 14. Prior year total value. Subtract Line 12 and Line 13 from Line 8. $ _____________ 15. Adjusted prior year total levy. Multiply Line 4 by Line 14 and divide by $100. $ _____________ 16. Taxes refunded for years preceding the prior tax year. Enter the amount of taxes refunded by the taxing unit for tax years preceding the prior tax year. Types of refunds include court decisions, Tax Code Section 25.25(b) and (c) corrections and Tax Code Section 31.11 payment errors. Do not include refunds for the prior tax year. This line applies only to tax years preceding the prior tax year. 9 $ _____________ 17. Adjusted prior year levy with refunds and TIF adjustment. Add Lines 15 and 16. 10 $ _____________ 18.Total current year taxable value on the current year certified appraisal roll today. This value includes only certified values or certified estimate of values and includes the total taxable value of homesteads with tax ceilings (will deduct in Line 20). These homesteads include homeowners age 65 or older or disabled. 11 _____________ _____________ _____________ .................... -$ _____________ $ _____________ 5 Tex. Tax Code §26.012(15) 6 Tex. Tax Code §26.012(15) 7 Tex. Tax Code §26.012(15) 8 Tex. Tax Code §26.03(c) 9 Tex. Tax Code §26.012(13) 10 Tex. Tax Code §26.012(13) 11 Tex. Tax Code §26.012, 26.04(c-2) 12 Tex. Tax Code §26.03(c) N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A A. Certified values:...................................................................................... $ N/A B. Counties: Include railroad rolling stock values certified by the Comptroller’s office: ....................... + $ N/A C. Pollution control and energy storage system exemption: Deduct the value of property exempted for the current tax year for the first time as pollution control or energy storage system property: ........... -$ N/A D. Tax increment financing: Deduct the current year captured appraised value of property taxable by a taxing unit in a tax increment financing zone for which the current year taxes will be deposited into the tax increment fund. Do not include any new property value that will be included in Line 23 below. 12 N/A E. Total current year value. Add A and B, then subtract C and D. N/A A. Prior year market value:.............................................................................. $ N/A B. Current year productivity or special appraised value: ................................................ -$ N/A C. Value loss. Subtract B from A. 7 N/A A. Absolute exemptions. Use prior year market value: .................................................... $ N/A B. Partial exemptions. Current year exemption amount or current year percentage exemption times prior year value: ................................................................................. + $ N/A C. Value loss. Add A and B. 6 9,583,603,807 0 8,330,481 56,850,276 65,180,757 0 0 0 65,180,757 271,482,181 9,246,940,869 46,697,051 433,892 47,130,943 11,051,272,709 0 276,578,864 10,774,693,845 Appendix Page 36 2025 Tax Rate Calculation Worksheet – Taxing Units Other Than School Districts or Water Districts Form 50-856 For additional copies, visit: Page 3 comptroller.texas.gov/taxes/property-tax Line No-New-Revenue Tax Rate Worksheet Amount/Rate 19. Total value of properties under protest or not included on certified appraisal roll. 13 A. Current year taxable value of properties under protest. The chief appraiser certifies a list of properties still under ARB protest. The list shows the appraisal district’s value and the taxpayer’s claimed value, if any, or an estimate of the value if the taxpayer wins. For each of the properties under protest, use the lowest of these values. Enter the total value under protest. 14 .................................................... $ _____________ B. Current year value of properties not under protest or included on certified appraisal roll. The chief appraiser gives taxing units a list of those taxable properties that the chief appraiser knows about but are not included in the appraisal roll certification. These properties also are not on the list of properties that are still under protest. On this list of properties, the chief appraiser includes the market value, appraised value and exemptions for the preceding year and a reasonable estimate of the market value, appraised value and exemptions for the current year. Use the lower market, appraised or taxable value (as appropriate). Enter the total value of property not on the certified roll. 15 .............................. + $ _____________ C. Total value under protest or not certified. Add A and B. $ _____________ 20. Current year tax ceilings. Counties, cities and junior colleges enter current year total taxable value of homesteads with tax ceilings. These include the homesteads of homeowners age 65 or older or disabled. Other taxing units enter 0. If your taxing unit adopted the tax ceiling provision in the prior year or a previous year for homeowners age 65 or older or disabled, use this step.16 $ _____________ 21. Current year total taxable value. Add Lines 18E and 19C. Subtract Line 20. 17 $ _____________ 22. Total current year taxable value of properties in territory annexed after Jan. 1, of the prior year. Include both real and personal property. Enter the current year value of property in territory annexed. 18 $ _____________ 23. Total current year taxable value of new improvements and new personal property located in new improvements. New means the item was not on the appraisal roll in the prior year. An improvement is a building, structure, fixture or fence erected on or affixed to land. New additions to existing improvements may be included if the appraised value can be determined. New personal property in a new improvement must have been brought into the taxing unit after Jan. 1, of the prior year and be located in a new improvement. New improvements do include property on which a tax abatement agreement has expired for the current year. 19 $ _____________ 24. Total adjustments to the current year taxable value. Add Lines 22 and 23. $ _____________ 25. Adjusted current year taxable value. Subtract Line 24 from Line 21. $ _____________ 26. Current year NNR tax rate. Divide Line 17 by Line 25 and multiply by $100. 20 $ $ __________/$100 27. COUNTIES ONLY. Add together the NNR tax rates for each type of tax the county levies. The total is the current year county NNR tax rate. 21 __________/$100 SECTION 2: Voter -Approval Tax Rate The voter-approval tax rate is the highest tax rate that a taxing unit may adopt without holding an election to seek voter approval of the rate. The voter-approval tax rate is split into two separate rates: 1. Maintenance and Operations (M&O) Tax Rate: The M&O portion is the tax rate that is needed to raise the same amount of taxes that the taxing unit levied in the prior year plus the applicable percentage allowed by law. This rate accounts for such things as salaries, utilities and day-to-day operations. 2. Debt Rate: The debt rate includes the debt service necessary to pay the taxing unit’s debt payments in the coming year. This rate accounts for principal and interest on bonds and other debt secured by property tax revenue. The voter-approval tax rate for a county is the sum of the voter-approval tax rates calculated for each type of tax the county levies. In most cases the voter-approval tax rate exceeds the no-new-revenue tax rate, but occasionally decreases in a taxing unit’s debt service will cause the NNR tax rate to be higher than the voter-approval tax rate. Line Voter-Approval Tax Rate Worksheet Amount/Rate 28. Prior year M&O tax rate. Enter the prior year M&O tax rate. $ /$100 __________ 29. Prior year taxable value, adjusted for actual and potential court-ordered adjustments. Enter the amount in Line 8 of the No-New-Revenue Tax Rate Worksheet. $ _____________ 13 Tex. Tax Code §26.01(c) and (d) 14 Tex. Tax Code §26.01(c) 15 Tex. Tax Code §26.01(d) 16 Tex. Tax Code §26.012(6)(B) 17 Tex. Tax Code §26.012(6) 18 Tex. Tax Code §26.012(17) 19 Tex. Tax Code §26.012(17) 20 Tex. Tax Code §26.04(c) 21 Tex. Tax Code §26.04(d) N/A N/A N/A N/A N/A N/A 807,105,754 0 807,105,754 1,051,886,556 10,529,913,043 0 758,780,238 758,780,238 9,771,132,805 0.482348 0.324608 9,583,603,807 Appendix Page 37 2025 Tax Rate Calculation Worksheet – Taxing Units Other Than School Districts or Water Districts Form 50-856 For additional copies, visit: comptroller.texas.gov/taxes/property-tax Page 4 Line Voter-Approval Tax Rate Worksheet Amount/Rate 30. Total prior year M&O levy. Multiply Line 28 by Line 29 and divide by $100. $ _____________ 31. Adjusted prior year levy for calculating NNR M&O rate. A. M&O taxes refunded for years preceding the prior tax year. Enter the amount of M&O taxes refunded in the preceding year for taxes before that year. Types of refunds include court decisions, Tax Code Section 25.25(b) and (c) corrections and Tax Code Section 31.11 payment errors. Do not include refunds for tax year 2024. This line applies only to tax years preceding the prior tax year............ +$ –$ +/-$ $ _____________ . ...................................................................................... _____________ .................................................................... _____________ .................................................... _____________ $ _____________ 32. Adjusted current year taxable value. Enter the amount in Line 25 of the No-New-Revenue Tax Rate Worksheet. $ _____________ 33. Current year NNR M&O rate (unadjusted). Divide Line 31E by Line 32 and multiply by $100. $ /$100 __________ 34. Rate adjustment for state criminal justice mandate. 23 $ –$ $ $ –$ $ _____________ ................_____________ . ........................................... __________/$100 N/A $ /$100 __________ 35. Rate adjustment for indigent health care expenditures. 24 .................................................................................._____________ .................................................................................. _____________ C. Subtract B from A and divide by Line 32 and multiply by $100. ........................................... __________/$100 D. Enter the rate calculated in C. If not applicable, enter 0. $ __________/$100 22 [Reserved for expansion] 23 Tex. Tax Code §26.044 24 Tex. Tax Code §26.0441 N/A N/A B. Prior year taxes in TIF. Enter the amount of taxes paid into the tax increment fund for a reinvestment zone as agreed by the taxing unit. If the taxing unit has no current year captured appraised value in Line 18D, enter 0 N/A C. Prior year transferred function. If discontinuing all of a department, function or activity and transferring it to another taxing unit by written contract, enter the amount spent by the taxing unit discontinuing the function in the 12 months preceding the month of this calculation. If the taxing unit did not operate this function for this 12-month period, use the amount spent in the last full fiscal year in which the taxing unit operated the function. The taxing unit discontinuing the function will subtract this amount in D below. The taxing unit receiving the function will add this amount in D below. Other taxing units enter 0. N/A D. Prior year M&O levy adjustments. Subtract B from A. For taxing unit with C, subtract if discontinuing function and add if receiving function. N/A E. Add Line 30 to 31D. N/A N/A N/A N/A N/A N/A N/A N/A N/A A. Current year state criminal justice mandate. Enter the amount spent by a county in the previous 12 months providing for the maintenance and operation cost of keeping inmates in county-paid facilities after they have been sentenced. Do not include any state reimbursement received by the county for the same purpose. N/A B. Prior year state criminal justice mandate. Enter the amount spent by a county in the 12 months prior to the previous 12 months providing for the maintenance and operation cost of keeping inmates in county-paid facilities after they have been sentenced. Do not include any state reimbursement received by the county for the same purpose. Enter zero if this is the first time the mandate applies. N/A C. Subtract B from A and divide by Line 32 and multiply by $100 N/A D. Enter the rate calculated in C. If not applicable, enter 0. N/A A. Current year indigent health care expenditures. Enter the amount paid by a taxing unit providing for the maintenance and operation cost of providing indigent health care for the period beginning on July 1, of the prior tax year and ending on June 30, of the current tax year, less any state assistance received for the same purpose. N/A B. Prior year indigent health care expenditures. Enter the amount paid by a taxing unit providing for the maintenance and operation cost of providing indigent health care for the period beginning on July 1, 2023 and ending on June 30, 2024, less any state assistance received for the same purpose. N/A N/A N/A N/A N/A N/A 31,109,144 282,780 987,586 0 -704,806 30,404,338 9,771,132,805 0.311164 0 0 0.000000 0.000000 0 0 0.000000 0.000000 Appendix Page 38 2025 Tax Rate Calculation Worksheet – Taxing Units Other Than School Districts or Water Districts Form 50-856 For additional copies, visit: comptroller.texas.gov/taxes/property-tax Page 5 Line Voter-Approval Tax Rate Worksheet Amount/Rate 36. Rate adjustment for county indigent defense compensation. 25 $ _____________ . .........................$ _____________ __________/$100 __________/$100 N/A $ __________/$100 37. Rate adjustment for county hospital expenditures. 26 $ _____________ .............................................................................. $ _____________ __________/$100 N/A __________/$100 N/A $ /$100 __________ 38.Rate adjustment for defunding municipality. This adjustment only applies to a municipality that is considered to be a defunding municipality for the current tax year under Chapter 109, Local Government Code. Chapter 109, Local Government Code only applies to municipalities with a population of more than 250,000 and includes a written determination by the Office of the Governor. See Tax Code Section 26.0444 for more information. ...................... $ _____________ ........................................................ $ _____________ __________/$100 N/A $ /$100 __________ 39. Adjusted current year NNR M&O rate. Add Lines 33, 34D, 35D, 36E, and 37E. Subtract Line 38D. $ /$100 __________ 40. Adjustment for prior year sales tax specifically to reduce property taxes. Cities, counties and hospital districts that collected and spent additional sales tax on M&O expenses in the prior year should complete this line. These entities will deduct the sales tax gain rate for the current year in Section 3. Other taxing units, enter zero. ...................................................................................... $ _____________ __________/$100 N/A $ /$100 __________ 41. Current year voter-approval M&O rate. Enter the rate as calculated by the appropriate scenario below. Special Taxing Unit. If the taxing unit qualifies as a special taxing unit, multiply Line 40C by 1.08. - or - Other Taxing Unit. If the taxing unit does not qualify as a special taxing unit, multiply Line 40C by 1.035. $ __________/$100 25 Tex. Tax Code §26.0442 26 Tex. Tax Code §26.0443 N/A A. Current year indigent defense compensation expenditures. Enter the amount paid by a county to provide appointed counsel for indigent individuals and fund the operations of a public defender’s office under Article 26.044, Code of Criminal Procedure for the period beginning on July 1, of the prior tax year and ending on June 30,of the current tax year, less any state grants received by the county for the same purpose. ......... N/A B. Prior year indigent defense compensation expenditures. Enter the amount paid by a county to provide appointed counsel for indigent individuals and fund the operations of a public defender’s office under Article 26.044, Code of Criminal Procedure for the period beginning on July 1, 2023 and ending on June 30, 2024, less any state grants received by the county for the same purpose N/A C. Subtract B from A and divide by Line 32 and multiply by $100. ........................................... $ N/A D. Multiply B by 0.05 and divide by Line 32 and multiply by $100............................................ $ N/A E. Enter the lesser of C and D. If not applicable, enter 0. N/A A. Current year eligible county hospital expenditures. Enter the amount paid by the county or municipality to maintain and operate an eligible county hospital for the period beginning on July 1, of the prior tax year and ending on June 30, of the current tax year. .............................................................. N/A B. Prior year eligible county hospital expenditures. Enter the amount paid by the county or municipality to maintain and operate an eligible county hospital for the period beginning on July 1, 2023 and ending on June 30, 2024. N/A C. Subtract B from A and divide by Line 32 and multiply by $100. ........................................... $ N/A D. Multiply B by 0.08 and divide by Line 32 and multiply by $100............................................ $ N/A E. Enter the lesser of C and D, if applicable. If not applicable, enter 0. N/A A. Enter the amount of additional sales tax collected and spent on M&O expenses in the prior year, if any. Counties must exclude any amount that was spent for economic development grants from the amount of sales tax spent N/A A. Amount appropriated for public safety in the prior year. Enter the amount of money appropriated for public safety in the budget adopted by the municipality for the preceding fiscal year N/A B. Expenditures for public safety in the prior year. Enter the amount of money spent by the municipality for public safety during the preceding fiscal year N/A C. Subtract B from A and divide by Line 32 and multiply by $100 ........................................... $ N/A D. Enter the rate calculated in C. If not applicable, enter 0. N/A B. Divide Line 40A by Line 32 and multiply by $100 ........................................................ $ N/A C. Add Line 40B to Line 39. N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 0 0 0.000000 0.000000 0.000000 0 0 0.000000 0.000000 0.000000 0 0 0.000000 0.000000 0.311164 0 0.000000 0.311164 0.322054 Appendix Page 39 2025 Tax Rate Calculation Worksheet – Taxing Units Other Than School Districts or Water Districts Form 50-856 For additional copies, visit: comptroller.texas.gov/taxes/property-tax Page 6 Line Voter-Approval Tax Rate Worksheet Amount/Rate D41. Disaster Line 41 (D41): Current year voter-approval M&O rate for taxing unit affected by disaster declaration. If the taxing unit is located in an area declared a disaster area and at least one person is granted an exemption under Tax Code Section 11.35 for property located in the taxing unit, the governing body may direct the person calculating the voter-approval tax rate to calculate in the manner provided for a special taxing unit. The taxing unit shall continue to calculate the voter-approval tax rate in this manner until the earlier of: 1) the first y ear in which total taxable value on the certified appraisal roll exceeds the total taxable value of the tax year in which the disaster occurred; or 2) the third tax year after the tax year in which the disaster occurred. If the taxing unit qualifies under this scenario, multiply Line 40C by 1.08. 27 If the taxing unit does not qualify, do not complete Disaster Line 41 (Line D41). $ /$100 __________ 42. Total current year debt to be paid with property taxes and additional sales tax revenue. Debt means the interest and principal that will be paid on debts that: (1) are paid by property taxes; (2) are secured by property taxes; (3) are scheduled for payment over a period longer than one year; and (4) are not classified in the taxing unit’s budget as M&O expenses. Enter debt amount .................................................................................... $ _____________ _____________ _____________ _____________ $ _____________ 43. Certified prior year excess debt collections. Enter the amount certified by the collector. 29 $ _____________ 44. Adjusted current year debt. Subtract Line 43 from Line 42E. $ _____________ 45. Current year anticipated collection rate. A. Enter the current year anticipated collection rate certified by the collector. 30 .............................. ____________% N/A ............................................................... ____________% N/A ................................................................... ____________% N/A . ................................................................... ____________% N/A ____________% 46. Current year debt adjusted for collections. Divide Line 44 by Line 45E. $ _____________ 47. Current year total taxable value. Enter the amount on Line 21 of the No-New-Revenue Tax Rate Worksheet. $ _____________ 48. Current year debt rate. Divide Line 46 by Line 47 and multiply by $100. $ /$100 __________ 49. Current year voter-approval M&O rate plus current year debt rate. Add Lines 41 and 48. $ /$100 __________ D49. Disaster Line 49 (D49): Current year voter-approval tax rate for taxing unit affected by disaster declaration. Complete this line if the taxing unit calculated the voter-approval tax rate in the manner provided for a special taxing unit on Line D41. Add Line D41 and 48. $ __________/$100 27 Tex. Tax Code §26.042(a) 28 Tex. Tax Code §26.012(7) 29 Tex. Tax Code §26.012(10) and 26.04(b) 30 Tex. Tax Code §26.04(b) 31 Tex. Tax Code §§26.04(h), (h-1) and (h-2) N/A B. Subtract unencumbered fund amount used to reduce total debt. ...................................... –$ N/A C. Subtract certified amount spent from sales tax to reduce debt (enter zero if none) .................... –$ N/A D. Subtract amount paid from other resources ............................................................ –$ N/A E. Adjusted debt. Subtract B, C and D from A. N/A A. Debt also includes contractual payments to other taxing units that have incurred debts on behalf of this taxing unit, if those debts meet the four conditions above. Include only amounts that will be paid from property tax revenue. Do not include appraisal district budget payments. If the governing body of a taxing unit authorized or agreed to authorize a bond, warrant, certificate of obligation, or other evidence of indebtedness on or after Sept. 1, 2021, verify if it meets the amended definition of debt before including it here. 28 N/A N/A N/A N/A N/A N/A B. Enter the prior year actual collection rate. N/A C. Enter the 2023 actual collection rate. N/A E. If the anticipated collection rate in A is lower than actual collection rates in B, C and D, enter the lowest collection rate from B, C and D. If the anticipated rate in A is higher than at least one of the rates in the prior three years, enter the rate from A. Note that the rate can be greater than 100%. 31 N/A D. Enter the 2022 actual collection rate 0.000000 19,695,302 0 0 0 19,695,302 431,155 19,264,147 100.00 99.10 103.70 103.75 100.00 19,264,147 10,529,913,043 0.182946 0.505000 0.000000 Appendix Page 40 2025 Tax Rate Calculation Worksheet – Taxing Units Other Than School Districts or Water Districts Form 50-856 For additional copies, visit: comptroller.texas.gov/taxes/property-tax Page 7 Line Voter-Approval Tax Rate Worksheet Amount/Rate 50.COUNTIES ONLY. Add together the voter-approval tax rates for each type of tax the county levies. The total is the current year county voter-approval tax rate. $ __________/$100 SECTION 3: NNR Tax Rate and Voter -Approval Tax Rate Adjustments for Additional Sales Tax to Reduce Property Taxes Cities, counties and hospital districts may levy a sales tax specifically to reduce property taxes. Local voters by election must approve imposing or abolishing the additional sales tax. If approved, the taxing unit must reduce its NNR and voter-approval tax rates to offset the expected sales tax revenue. This section should only be completed by a county, city or hospital district that is required to adjust its NNR tax rate and/or voter-approval tax rate because it adopted the additional sales tax. Line Additional Sales and Use Tax Worksheet Amount/Rate 51. Taxable Sales. For taxing units that adopted the sales tax in November of the prior tax year or May of the current tax year, enter the Comptroller’s estimate of taxable sales for the previous four quarters. 32 Estimates of taxable sales may be obtained through the Comptroller’s Allocation Historical Summary webpage. Taxing units that adopted the sales tax before November of the prior year, enter 0. $ _____________ 52.Estimated sales tax revenue. Counties exclude any amount that is or will be spent for economic development grants from the amount of estimated sales tax revenue. 33 Taxing units that adopted the sales tax in November of the prior tax year or in May of the current tax year. Multiply the amount on Line 51 by the sales tax rate (.01, .005 or .0025, as applicable) and multiply the result by .95. 34 - or - Taxing units that adopted the sales tax before November of the prior year. Enter the sales tax revenue for the previous four quarters. Do not multiply by .95. $ _____________ 53. Current year total taxable value. Enter the amount from Line 21 of the No-New-Revenue Tax Rate Worksheet. $ _____________ 54. Sales tax adjustment rate. Divide Line 52 by Line 53 and multiply by $100. $ /$100 __________ 55. Current year NNR tax rate, unadjusted for sales tax.35 Enter the rate from Line 26 or 27, as applicable, on the No-New-Revenue Tax Rate Worksheet. $ /$100 __________ 56. Current year NNR tax rate, adjusted for sales tax. Taxing units that adopted the sales tax in November the prior tax year or in May of the current tax year. Subtract Line 54 from Line 55. Skip to Line 57 if you adopted the additional sales tax before November of the prior tax year. $ /$100 __________ 57. Current year voter-approval tax rate, unadjusted for sales tax.36 Enter the rate from Line 49, Line D49 (disaster) or Line 50 (counties) as applicable, of the Voter-Approval Tax Rate Worksheet. $ /$100 __________ 58. Current year voter-approval tax rate, adjusted for sales tax. Subtract Line 54 from Line 57. $ __________/$100 SECTION 4: Voter -Approval Tax Rate Adjustment for Pollution Control A taxing unit may raise its rate for M&O funds used to pay for a facility, device or method for the control of air, water or land pollution. This includes any land, structure, building, installation, excavation, machinery, equipment or device that is used, constructed, acquired or installed wholly or partly to meet or exceed pollution control requirements. The taxing unit’s expenses are those necessary to meet the requirements of a permit issued by the Texas Commission on Environmental Quality (TCEQ). The taxing unit must provide the tax assessor with a copy of the TCEQ letter of determination that states the portion of the cost of the installation for pollution control. This section should only be completed by a taxing unit that uses M&O funds to pay for a facility, device or method for the control of air, water or land pollution. Line Voter-Approval Rate Adjustment for Pollution Control Requirements Worksheet Amount/Rate 59. Certified expenses from the Texas Commission on Environmental Quality (TCEQ). Enter the amount certified in the determination letter from TCEQ. 37 The taxing unit shall provide its tax assessor-collector with a copy of the letter. 38 $ _____________ 60. Current year total taxable value. Enter the amount from Line 21 of the No-New-Revenue Tax Rate Worksheet. $ _____________ 61. Additional rate for pollution control. Divide Line 59 by Line 60 and multiply by $100. $ __________/$100 32 Tex. Tax Code §26.041(d) 33 Tex. Tax Code §26.041(i) 34 Tex. Tax Code §26.041(d) 35 Tex. Tax Code §26.04(c) 36 Tex. Tax Code §26.04(c) 37 Tex. Tax Code §26.045(d) 38 Tex. Tax Code §26.045(i) 0.000000 0 0 10,529,913,043 0.000000 0.482348 0.482348 0.505000 0.505000 0 10,529,913,043 0.000000 Appendix Page 41 2025 Tax Rate Calculation Worksheet – Taxing Units Other Than School Districts or Water Districts Form 50-856 For additional copies, visit: comptroller.texas.gov/taxes/property-tax Page 8 Line Voter-Approval Rate Adjustment for Pollution Control Requirements Worksheet Amount/Rate 62. Current year voter-approval tax rate, adjusted for pollution control. Add Line 61 to one of the following lines (as applicable): Line 49, Line D49 (disaster), Line 50 (counties) or Line 58 (taxing units with the additional sales tax). $ __________/$100 SECTION 5: Voter -Approval Tax Rate Adjustment for Unused Increment Rate The unused increment rate is the rate equal to the sum of the prior 3 years Foregone Revenue Amounts divided by the current taxable value. 39 The Foregone Revenue Amount for each year is equal to that year’s adopted tax rate subtracted from that year’s voter-approval tax rate adjusted to remove the unused increment rate multiplied by that year’s current total value. 40 The difference between the adopted tax rate and adjusted voter-approval tax rate is considered zero in the following scenarios: • a tax year in which a taxing unit affected by a disaster declaration calculates the tax rate under Tax Code Section 26.042; 41 • a tax year in which the municipality is a defunding municipality, as defined by Tax Code Section 26.0501(a); 42 or • after Jan. 1, 2022, a tax year in which the comptroller determines that the county implemented a budget reduction or reallocation described by Local Government Code Section 120.002(a) without the required voter approval. 43 This section should only be completed by a taxing unit that does not meet the definition of a special taxing unit. 44 Line Unused Increment Rate Worksheet Amount/Rate 63. Year 3 Foregone Revenue Amount. Subtract the 2024 unused increment rate and 2024 actual tax rate from the 2024 voter-approval tax rate. Multiply the result by the 2024 current total value A. Voter-approval tax rate (Line 68) ..................................................................................................... ) ..................................................................................................... ................................................................................................................... .................................................................................................................. ................................................................................................................... .................................................................................................... ............................................... $ /$100 __________ $ /$100 __________ $ /$100 __________ $ /$100 __________ $ /$100 __________ $ _____________ $ _____________ 64. Year 2 Foregone Revenue Amount. Subtract the 2023 unused increment rate and 2023 actual tax rate from the 2023 voter-approval tax rate. Multiply the result by the 2023 current total value A. Voter-approval tax rate (Line 67) ..................................................................................................... ..................................................................................................... ................................................................................................................... ................................................................................................................... ................................................................................................................... .................................................................................................... . ............................................... $ /$100 __________ $ /$100 __________ $ /$100 __________ $ /$100 __________ $ /$100 __________ $ _____________ $ _____________ 65. Year 1 Foregone Revenue Amount. Subtract the 2022 unused increment rate and 2022 actual tax rate from the 2022 voter-approval tax rate. Multiply the result by the 2022 current total value A. Voter-approval tax rate (Line 67) ..................................................................................................... ..................................................................................................... ................................................................................................................... ................................................................................................................... .................................................................................................................. ................................................................................................... ............................................... $ /$100 __________ $ /$100 __________ $ /$100 __________ $ /$100 __________ $ /$100 __________ $ _____________ $ _____________ 66. Total Foregone Revenue Amount. Add Lines 63G, 64G and 65G $ /$100 __________ 67. 2025 Unused Increment Rate. Divide Line 66 by Line 21 of the No-New-Revenue Rate Worksheet. Multiply the result by 100 $ /$100 __________ 68. Total 2025 voter-approval tax rate, including the unused increment rate. Add Line 67 to one of the following lines (as applicable): Line 49, Line 50 (counties), Line 58 (taxing units with additional sales tax) or Line 62 (taxing units with pollution) $ __________/$100 39 Tex. Tax Code §26.013(b) 40 Tex. Tax Code §26.013(a)(1-a), (1-b), and (2) 41 Tex. Tax Code §§26.04(c)(2)(A) and 26.042(a) 42 Tex. Tax Code §§26.0501(a) and (c) 43 Tex. Local Gov’t Code §120.007(d) 44 Tex. Local Gov’t Code §26.04(c)(2)(B) N/A B. Unused increment rate (Line 67 N/A C. Subtract B from A N/A E. Subtract D from C N/A D. Adopted Tax Rate . N/A F. 2024 Total Taxable Value (Line 60) N/A G. Multiply E by F and divide the results by $100. If the number is less than zero, enter zero. N/A B. Unused increment rate (Line 66) N/A C. Subtract B from A N/A E. Subtract D from C N/A D. Adopted Tax Rate N/A F. 2023 Total Taxable Value (Line 60) N/A G. Multiply E by F and divide the results by $100. If the number is less than zero, enter zero N/A B. Unused increment rate (Line 66) N/A C. Subtract B from A N/A E. Subtract D from C . N/A D. Adopted Tax Rate N/A F. 2022 Total Taxable Value (Line 60) . N/A G. Multiply E by F and divide the results by $100. If the number is less than zero, enter zero. 0.505000 0.522075 0.017075 0.505000 0.505000 0.000000 9,365,511,347 0 0.510000 0.017336 0.492664 0.510000 -0.017336 8,140,263,860 0 0.527336 0.043161 0.484175 0.510000 -0.025825 6,621,990,520 0 0 0.000000 0.505000 Appendix Page 42 2025 Tax Rate Calculation Worksheet – Taxing Units Other Than School Districts or Water Districts Form 50-856 For additional copies, visit: comptroller.texas.gov/taxes/property-tax Page 9 SECTION 6: De Minimis Rate The de minimis rate is the rate equal to the sum of the no-new-revenue maintenance and operations rate, the rate that will raise $500,000, and the current debt rate for a taxing unit. 45 This section should only be completed by a taxing unit that is a municipality of less than 30,000 or a taxing unit that does not meet the definition of a special taxing unit. 46 Line De Minimis Rate Worksheet Amount/Rate 69. Adjusted current year NNR M&O tax rate. Enter the rate from Line 39 of the Voter-Approval Tax Rate Worksheet. $ /$100 __________ 70. Current year total taxable value. Enter the amount on Line 21 of the No-New-Revenue Tax Rate Worksheet. $ _____________ 71. Rate necessary to impose $500,000 in taxes. Divide $500,000 by Line 70 and multiply by $100. $ /$100 __________ 72. Current year debt rate. Enter the rate from Line 48 of the Voter-Approval Tax Rate Worksheet. $ /$100 __________ 73. De minimis rate. Add Lines 69, 71 and 72. $ /$100 __________ SECTION 7: Voter -Approval Tax Rate Adjustment for Emergency Revenue Rate In the tax year after the end of the disaster calculation time period detailed in Tax Code Section 26.042(a), a taxing unit that calculated its voter-approval tax rate in the manner provided for a special taxing unit due to a disaster must calculate its emergency revenue rate and reduce its voter-approval tax rate for that year.47 Similarly, if a taxing unit adopted a tax rate that exceeded its voter-approval tax rate, calculated normally, without holding an election to respond to a disaster, as allowed by Tax Code Section 26.042(d), in the prior year, it must also reduce its voter-approval tax rate for the current tax year. 48 This section will apply to a taxing unit other than a special taxing unit that: • directed the designated officer or employee to calculate the voter-approval tax rate of the taxing unit in the manner provided for a special taxing unit in the prior year; and • the current year is the first tax year in which the total taxable value of property taxable by the taxing unit as shown on the appraisal roll for the taxing unit submitted by the assessor for the taxing unit to the governing body exceeds the total taxable value of property taxable by the taxing unit on January 1 of the tax year in which the disaster occurred or the disaster occurred four years ago.This section will apply to a taxing unit in a disaster area that adopted a tax rate greater than its voter-approval tax rate without holding an election in the prior year. Note: This section does not apply if a taxing unit is continuing to calculate its voter-approval tax rate in the manner provided for a special taxing unit because it is still within the disaster calculation time period detailed in Tax Code Section 26.042(a) because it has not met the conditions in Tax Code Section 26.042(a)(1) or (2). Line Emergency Revenue Rate Worksheet Amount/Rate 74. 2024 adopted tax rate. Enter the rate in Line 4 of the No-New-Revenue Tax Rate Worksheet. $ /$100 __________ 75. Adjusted 2024 voter-approval tax rate. Use the taxing unit’s Tax Rate Calculation Worksheets from the prior year(s) to complete this line. 49 If a disaster occurred in 2024 and the taxing unit calculated its 2024 voter-approval tax rate using a multiplier of 1.08 on Disaster Line 41 (D41) of the 2024 worksheet due to a disaster, complete the applicable sections or lines of Form 50-856-a, Adjusted Voter-Approval Tax Rate for Taxing Units in Disaster Area Calculation Worksheet. - or - If a disaster occurred prior to 2024 for which the taxing unit continued to calculate its voter-approval tax rate using a multiplier of 1.08 on Disaster Line 41 (D41) in 2024, complete form 50-856-a, Adjusted Voter-Approval Tax Rate for Taxing Units in Disaster Area Calculation Worksheet to recalculate the voter-approval tax rate the taxing unit would have calculated in 2024 if it had generated revenue based on an adopted tax rate using a multiplier of 1.035 in the years following the disaster. 50 Enter the final adjusted 2024 voter-approval tax rate from the worksheet. - or - If the taxing unit adopted a tax rate above the 2024 voter-approval tax rate without calculating a disaster tax rate or holding an election due to a disaster, no recalculation is necessary. Enter the voter-approval tax rate from the prior year’s worksheet. $ /$100 __________ 76. Increase in 2024 tax rate due to disaster. Subtract Line 75 from Line 74. $ /$100 __________ 77. Adjusted 2024 taxable value. Enter the amount in Line 14 of the No-New-Revenue Tax Rate Worksheet. $ _____________ 78. Emergency revenue. Multiply Line 76 by Line 77 and divide by $100. $ _____________ 79. Adjusted 2024 taxable value. Enter the amount in Line 25 of the No-New-Revenue Tax Rate Worksheet. $ _____________ 80. Emergency revenue rate. Divide Line 78 by Line 79 and multiply by $100. 50 $ /$100 __________ 45 Tex. Tax Code §26.012(8-a) 46 Tex. Tax Code §26.063(a)(1) 47 Tex. Tax Code §26.042(b) 48 Tex. Tax Code §26.042(f ) 49 Tex. Tax Code §26.042(c) 50 Tex. Tax Code §26.042(b) 0.311164 10,529,913,043 0.004748 0.182946 0.000000 0.505000 0.000000 0.000000 9,246,940,869 0 9,771,132,805 0.000000 Appendix Page 43 2025 Tax Rate Calculation Worksheet – Taxing Units Other Than School Districts or Water Districts Form 50-856 For additional copies, visit: comptroller.texas.gov/taxes/property-tax Page 10 ____________________________________________________________ Line Emergency Revenue Rate Worksheet Amount/Rate 81. Current year voter-approval tax rate, adjusted for emergency revenue. Subtract Line 80 from one of the following lines (as applicable): Line 49, Line D49 (disaster), Line 50 (counties), Line 58 (taxing units with the additional sales tax), Line 62 (taxing units with pollution control) or Line 68 (taxing units with the unused increment rate). $ __________/$100 SECTION 8: Total Tax Rate Indicate the applicable total tax rates as calculated above. No-new-revenue tax rate. ................................................................................................................ As applicable, enter the current year NNR tax rate from: Line 26, Line 27 (counties), or Line 56 (adjusted for sales tax). Indicate the line number used: ______ Voter-approval tax rate ................................................................................................................... As applicable, enter the current year voter-approval tax rate from: Line 49, Line D49 (disaster), Line 50 (counties), Line 58 (adjusted for sales tax), Line 62 (adjusted for pollution control), Line 68 (adjusted for unused increment), or Line 81 (adjusted for emergency revenue). Indicate the line number used: ______ De minimis rate. .......................................................................................................................... If applicable, enter the current year de minimis rate from Line 73. $ __________/$100 $ __________/$100 $ __________/$100 SECTION 9: Taxing Unit Representative Name and Signature Enter the name of the person preparing the tax rate as authorized by the governing body of the taxing unit. By signing below, you certify that you are the designated officer or employee of the taxing unit and have accurately calculated the tax rates using values that are the same as the values shown in the taxing unit’s certified appraisal roll or certified estimate of taxable value, in accordance with requirements in the Tax Code. 51 Printed Name of Taxing Unit Representative ____________________________________________________________ ________________________________________ Taxing Unit Representative Date 51 Tex. Tax Code §§26.04(c-2) and (d-2) 0.505000 0.482348 26 0.505000 49 0.000000 Jayna Dean 8/06/2025 Appendix Page 44 Accounting System:  The total structure of records and procedures which discover, record, classify, and report  information on the financial position and operations of a governmental unit or any of its funds, balanced  account groups, and organizational components.  Sometimes referred to as Chart of Accounts and/or Account  Classification System. Accounts Receivable:  Amounts owing on open account from private persons, firms, or corporations for goods  and services furnished by a governmental unit (but not including amounts due from other funds of the same  governmental unit).   Accrual Basis:  The basis of accounting under which revenues are recorded when earned and expenditures are  recorded as soon as they result in liabilities for benefits received, notwithstanding that the receipt of the  revenue or the payment of the expenditure may take place, in whole or in part, in another accounting period.   See also Accrue and Levy. Accrue:  To record revenues when earned and to record expenditures as soon as they result in liabilities for  benefits received, notwithstanding that the receipt of the revenue or payment of the expenditure may take  place, in whole or in part, in another accounting period.  See also Accrual Basis, Accrued Expenses, and  Accrued Revenue. Accrued Expenses:  Expenses incurred during the current account period but which are not payable until a  subsequent accounting period.  See also Accrual Basis and Accrue. Accrued Interest on Investments Purchased:  Interest accrued on investments between the last interest  payment date and the date of purchase.  The account is carried as an asset until the first interest payment date  after date of purchase.  At that time an entry is made debiting cash and crediting the Accrued Interest on  Investments Purchased account for the amount of interest purchased and an Interest Earnings account for the  balance. Accrued Interest Payable:  A liability account which represents the amount of interest accrued at the balance  sheet date but which is not due until a later date. Accrued Revenue:  Revenue earned during the current accounting period but which is not collected until a  subsequent accounting period.  See also Accrual Basis and Accrue. Activity:  A specific and distinguishable line of work performed by one or more organizational components of a  governmental unit for the purpose of accomplishing a function for which the governmental unit is responsible.   For example, "Code Enforcement" is an activity performed in the discharge of the "Public Safety" function.  See  also Function. Activity Classification: A grouping of expenditures on the basis of specific lines of work performed by  organization units. Ad Valorem: In proportion to value.  A basis for levy of taxes upon property. Allocate:  To divide a lump‐sum appropriation into parts which are designated for expenditure by specific  organization units and/or for specific purposes, activities, or objects.  See also Allocation. Allocation:  A part of a lump‐sum appropriation which is designated for expenditure by specific organization  units and/or for special purposes, activities, or objects.  See also Allocate. Glossary Appendix Page 45 Glossary Allot:  To divide an appropriation into amounts which may be encumbered or expended during an allotment  period.  See also Allotment and Allotment Period. Allotment:  A part of an appropriation which may be encumbered or expended during an allotment period.   See also Allot and Allotment Period. Allotment Period:  A period of time less than one fiscal year in length during which an allotment is effective.   Bimonthly and quarterly allotment periods are most common.  See also Allot and Allotment. Appraisal:  (1) The act of appraising.  See Appraise.  (2) The estimated value resulting from such action. Appraise:  To make an estimate of value, particularly of the value of property.   Note:  If the property is valued for purposes of taxation, the less inclusive term "assess" is substituted for the  above term. Appropriation:  An authorization granted by a legislative body to make expenditures and to incur obligations  for specific purposes.  An appropriation is limited in amount to the time it may be expended. Arbitrage:  The reinvestment of the proceeds of tax‐exempt securities in materially higher‐yielding taxable  securities. Assess:  To value property officially for the purpose of taxation. Note:  The term is also sometimes used to denote the levy of taxes, but such usage is not correct because it  fails to distinguish between the valuation process and the tax levy process. Assessed Valuation:  A valuation set upon real estate or other property by a government as a basis for levying  taxes. Assessment:  (1) The process of making the official valuation of property for purposes of taxation.  (2) The  valuation placed upon property as a result of this process. Assessment Roll: In the case of real property, the official list containing the legal description of each parcel of  property and its assessed valuation.  The name and address of the last known owner are also usually shown.   In the case of personal property, the assessment roll is the official list containing the name and address of the  owner, a description of the personal property, and its assessed value. Assets:  Property owned by a governmental unit, which has a monetary value. Audit:  The examination of documents, records, reports, systems of internal control, accounting and financial  procedures, and other evidence for one or more of the following purposes: (a) To ascertain whether the statements prepared from the accounts present fairly the financial posiƟon  and the results of financial operations of the constituent funds and balanced account groups of the  governmental unit in accordance with generally accepted accounting principals applicable to governmental  units and on a basis consistent with that of the preceding year. (b) To determine the propriety, legality, and mathemaƟcal accuracy of a governmental unit's financial  transactions. (c) To ascertain the stewardship of public officials who handle and are responsible for the financial  resources of a governmental unit. Audit Report:  The report prepared by an auditor covering the audit or investigation made by him or her.  As a  rule, the report should include:   Appendix Page 46 Glossary (a) a statement of the scope of the audit;  (b) explanatory comments (if any) concerning excepƟons by the auditor as to applicaƟon of generally  accepted auditing standards;  (c) opinions;  (d) explanatory comments (if any) concerning verificaƟon procedures;  (e) financial statements and schedules; and  (f) someƟmes staƟsƟcal tables, supplementary comments, and recommendaƟons.  The auditor's  signature follows item (c) or (d). Balanced Budget:  Annual financial plan in which expenses do not exceed revenues. Balance Sheet:  A statement which discloses the assets, liabilities, reserves, and equities of a fund or  governmental unit at a specified date, properly classified to exhibit financial position of the fund or unit at that  date. Note:  If a single balance sheet is prepared for several funds, it must be in columnar or sectional form so as to  exhibit the accounts of each fund and balanced account group, individually. Bond:  A written promise, generally under seal, to pay a specified sum of money, called the face value or  principal amount, at a fixed time in the future, called the date of maturity, and carrying interest at a fixed rate,  usually payable periodically.   Note:  The difference between a note and a bond is that the latter usually runs for a longer period of time and  requires greater legal formality. Bond Fund:  A fund formerly used to account for the proceeds of general obligation bond issues. Such  proceeds are now accounted for in a Capital Projects Fund. Bond Ordinance or Resolution:  An ordinance or resolution authorizing a bond issue. Bonded Debt:  The portion of indebtedness represented by outstanding bonds. Bonds Authorized and Un‐issued:  Bonds which have been legally authorized but not issued and which can be  issued and sold without further authorization. Note:  This term should not be confused with the term "margin of borrowing power" or "legal debt margin,"  either one of which represents the difference between the legal debt limit of a governmental unit and the debt  outstanding against it. Bonds Issued:  Bonds sold. Budget:  A plan of financial operation embodying an estimate of proposed expenditures for a given period and  the proposed means of financing them.  Used without any modifier, the term usually indicates a financial plan  for a single fiscal year. Note:  The term "budget" is used in two senses in practice.  Sometimes it designates the financial plan  presented to the appropriating body for adoption and sometimes the plan finally approved by that body.  It is  usually necessary to specify whether the budget under consideration is preliminary and tentative or whether it  has been approved by the appropriating body.  See also Current Budget, Capital Budget, and Capital Program. Appendix Page 47 Glossary Budget Document:  The instrument used by the budget‐making authority to present a comprehensive financial  program to the appropriating body.  The budget document usually consists of three parts.  The first part  contains a message from the budget‐making authority, together with a summary of the proposed expenditures  and the means of financing them.  The second part consists of schedules supporting the summary.  These  schedules show in detail the information as to past years' actual revenues, expenditures, and other data used  in making the estimates.  The third part is composed of drafts of the appropriation, revenue, and borrowing  measures necessary to put the budget into effect. Budget Message:  A general discussion of the proposed budget as presented in writing by the budget‐making  authority to the legislative body.  The budget message should contain an explanation of the principal budget  items, an outline of the governmental unit's experience during the past period and its financial status at the  time of the message, and recommendations regarding the financial policy for the coming period. Budgetary Accounts:  Those accounts which reflect budgetary operations and condition, such as estimated  revenues, appropriations, and encumbrances, as distinguished from proprietary accounts. See also  Proprietary Accounts. Budgetary Control:  The control or management of a governmental unit or enterprise in accordance with an  approved budget for the purpose of keeping expenditures within the limitation of available appropriations and  available revenues. Capital Budget: A plan of proposed capital outlays and the means of financing them for the current fiscal  period.  It is usually a part of the current budget.  If a Capital Program is in operation, it will be the first year  thereof.  A Capital Program is sometimes referred to as a Capital Budget.  See also Capital Program. Capital Expenditures: See Capital Outlays. Capital Improvement Program: See Capital Program. Capital Outlays: Expenditures in excess of $5,000 which result in the acquisition of or addition to fixed assets. Capital Program: A plan for capital expenditures to be incurred each year over a fixed period of years to meet  capital needs arising from the long‐term work program, or otherwise.  It sets forth each project or other  contemplated expenditure in which the government is to have a part and specifies the full resources estimated  to be available to finance the projected expenditures. Capital Projects Fund:  A fund created to account for financial resources to be used for the acquisition or  construction of major capital facilities and/or designated fixed assets (other than those financed by special  assessment, trust, special revenue, and enterprise funds).  See also Bond Fund. Cash:  Currency, coin, checks, postal and express money orders, and bankers' drafts, on hand or on deposit  with an official or agent designated as custodian of cash and bank deposits. Cash Basis:  The basis of accounting under which revenues are recorded when received in cash and  expenditures are recorded when paid. Chart of Accounts:  The classification system used to organize the accounting for various funds. Clearing Account:  An account used to accumulate total charges or credits for the purpose of distributing them  later among the accounts to which they are allocated or for the purpose of transferring the net differences to  the proper account. Appendix Page 48 Glossary Coding:  A system of numbering or otherwise designating accounts, entries, invoices, vouchers, etc., in such a  manner that the symbol used quickly reveals certain required information.  See also Symbolization. Combination Bond:  A bond issued by a governmental unit which is payable from the revenues of a  governmental enterprise, but which is also backed by the full faith and credit of the governmental unit. Combined Balance Sheet:  A single balance sheet which displays the individual balance sheets of each class of  funds and the balanced account groups of a governmental unit in separate, adjacent columns. Note:  There are no interfund elimination or consolidations in a combined balance sheet for a governmental  unit. Contingent Fund: Assets or other resources set aside to provide for unforeseen expenditures or for anticipated  expenditures of uncertain amounts. Note:  The term should not be used to describe a reserve for contingencies.  The latter is set aside out of the  fund balance of a fund but does not constitute a separate fund.  Similarly, an appropriation is not a fund. Coverage:  See Net Revenue Available for Debt Service.  Current:  A term which, when applied to budgeting and accounting, designates the operations of the present  fiscal period as opposed to past or future periods. Current Budget: The annual budget prepared for and effective during the present fiscal year; or, in the case of  some state governments, the budget for the present biennium. Current Funds:  Funds the resources of which are expended for operating purposes during the current fiscal  period.  In its usual application in plural form, it refers to General, Special Revenue, Debt Service, and  Enterprise Funds of a governmental unit.  In the singular form, the current fund is synonymous with the  general fund.  See also General Fund. Current Liabilities:  Liabilities which are payable within a relatively short period of time, usually no longer than  a year. Current Revenue: Revenues of a governmental unit that are available to meet expenditures of the current  fiscal year.  See Revenue. Current Taxes:  (1) Taxes levied and becoming due during the current fiscal period, from the time the amount  of the tax levy is first established to the date on which a penalty for nonpayment is attached.  (2) Taxes levied  in the preceding fiscal period but becoming due in the current fiscal period, from the time they become due  until a penalty for nonpayment is attached. Current Year's Tax Levy:  Taxes levied for the current fiscal period. Data Processing:  (1) The preparation and handling of information and data from source media through  prescribed procedures to obtain such end results as classification, problem solution, summarization, and  reports.  (2) Preparation and handling of financial information wholly or partially by mechanical or electronic  means.  See also Electronic Data Processing (EDP). Debt:  An obligation resulting from the borrowing of money or from the purchase of goods and services.  Debts  of governmental units include bonds, time warrants, notes, and floating debt.  See also Bond, Notes Payable,  Long‐Term Debt, and General Long‐Term Debt. Appendix Page 49 Glossary Debt Limit: The maximum amount of gross or net debt that is legally permitted. Debt Service Fund: A fund established to finance and account for the payment of interest and principal on all  general obligation debt, serial and term, other than that payable exclusively from special assessments and  revenue debt issued for and serviced by a governmental enterprise.  Formally called a Sinking Fund. Debt Service Fund Requirements:  The amounts of revenue which must be provided for a debt service fund so  that all principal and interest payments can be made in full on schedule. Deficit:  (1) The excess of the liabilities and reserves of a fund over its assets.  (2) The excess of expenditures  over revenues during an accounting period; or, in the case of Enterprise and Intragovernmental Service Funds,  the excess of expense over income during an accounting period. Delinquent Taxes: Taxes remaining unpaid on and after the date on which a penalty for nonpayment is  attached.  Even though the penalty may be subsequently waived and a portion of the taxes may be abated or  canceled, the unpaid balances continue to be delinquent taxes until abated, canceled, paid, or converted into  tax liens. Note:  The term is sometimes limited to taxes levied for the fiscal period or periods preceding the current one,  but such usage is not entirely correct.  See also Current Taxes, Current Year's Tax Levy, and Prior Years' Tax  Levies. Deposit:  (1) Money placed with a banking or other institution, or with a person either as a general deposit  subject to check or as a special deposit made for some specified purpose.  (2) Securities lodged with a banking  or other institution or with a person for some particular purpose.  (3) Sums deposited by customers for electric  meters, water meters, etc., and by contractors and others to accompany and guarantee their bids. Depreciation:  (1) Expiration of the service life of fixed assets, other than wasting assets, attributable to wear  and tear through use and lapse of time, obsolescence, inadequacy, or other physical elements for functional  causes. (2) The portion of the cost of a fixed asset charged as an expense during a particular period. Note:  The cost of a fixed asset is prorated over the estimated service life of such asset and each period is  charged with part of such cost so that ultimately the entire cost of the asset is charged off as an expense.  In  governmental accounting, depreciation may be recorded in proprietary funds and trust funds where expenses,  net income, and/or capital maintenance are measured. Direct Debt: The debt that a governmental unit has incurred in its own name, or assumed through the  annexation of territory or consolidation with another governmental unit.  See also Overlapping Debt. Direct Expense:  Those expenses which can be charged directly as a part of the cost of a product or service, or  of a department or operating unit, as distinguished from overhead and other indirect costs which must be  prorated among several products or services, departments, or operating units. Due to Fiscal Agent: Amounts due to fiscal agents, such as commercial banks, for servicing a governmental  unit's maturing interest and principal payments on indebtedness. Effective Interest Rate:  The rate of earning on a bond investment based on the actual price paid for the bond,  the coupon rate, the maturity date, and the length of time between interest dates, in contrast with the nominal  interest rate. Electronic Data Processing (EDP): Data processing by means of high‐speed electronic equipment.  See also  Data Processing. Appendix Page 50 Glossary Encumbrances:  Obligations in the form of purchase orders, contracts, or salary commitments which are  chargeable to an appropriation and for which a part of the appropriation is reserved.  They cease to be  encumbrances when paid or when the actual liability is set up. Enterprise Debt: Debt that is to be retired primarily from the earnings of publicly owned and operated  enterprises.  See also Revenue Bonds. Enterprise Fund: A fund established to finance and account for the acquisition, operation, and maintenance of  governmental facilities and services that are entirely or predominantly self‐supporting by user charges.   Examples of enterprise funds are those for water, gas, and electric utilities, swimming pools, airports, parking  garages, and transit systems. Equipment:  Tangible property of a more or less permanent nature (other than land, buildings, or  improvements other than buildings) which is useful in carrying on operations.  Examples are machinery, tools,  trucks, cars, furniture, and furnishings. Estimated Revenue:  For revenue accounts kept on an accrual basis, this term designates the amount of  revenue estimated to accrue during a given period regardless of whether or not it is all to be collected during  the period.  For revenue accounts kept on a cash basis, the term designates the amount of revenue estimated  to be collected during a given period.  Under the modified accrual basis recommended for some funds by the  Governmental Accounting Standards Board, estimated revenues include both cash and accrual basis revenues.   See also Cash Basis, Accrual Basis, and Modified Accrual Basis. Expenditures:  Where the accounts are kept on the accrual basis or the modified accrual basis, this term  designates the cost of goods delivered or services rendered, whether paid or unpaid, including expenses,  provision for debt retirement not reported as a liability of the fund from which retired, and capital outlays.  Where the accounts are kept on the cash basis, the term designates only actual cash disbursements for these  purposes. Note: Encumbrances are not expenditures. Expenses:  Charges incurred, whether paid or unpaid, for operation, maintenance, interest, and other charges  which are presumed to benefit the current fiscal period. Note: Legal provisions sometimes make it necessary to treat charges whose benefits extend over future  periods as expenses.  For example, purchase of materials and supplies which may be used over a period of  more than one year and payments for insurance which is to be in force for a period longer than one year  frequently must be charged in their entirety to the appropriation of the year in which they are incurred and  classified as expenses of that year, even though their benefits extend also to other periods. Fiduciary Fund Types:  The trust and agency funds used to account for assets held by a government unit in a  trustee capacity or as an agent for individuals, private organizations, other government units and/or other  funds. Fiscal Period:  Any period at the end of which a governmental unit determines its financial position and the  results of its operations. Fiscal Year: A twelve‐month period of time to which the annual budget applies and at the end of which a  governmental unit determines its financial position and the results of its operations. Fixed Assets:  Assets of a long‐term character which are intended to continue to be held or used, such as land,  buildings, machinery, furniture, and other equipment.   Note: The term does not indicate the immobility of an asset, which is the distinctive character of  "fixture." Appendix Page 51 Glossary Fixed Charges: Expenses (the amount of which is set by agreement).  Examples are interest, insurance, and  contributions to pension funds. Fixtures:  Attachments to buildings that are not intended to be removed and which cannot be removed  without damage to the latter.   Note: Those fixtures with a useful life presumed to be as long as that of the building itself, are considered a  part of such building; all others are classified as equipment. Force Account Method:  A method employed in the construction and/or maintenance of fixed assets whereby  a governmental unit's own personnel are used instead of an outside contractor.   Note: This method also calls for the purchase of materials by the governmental unit and the possible use of its  own equipment, but the distinguishing characteristic of the force account method is the use of the unit's own  personnel. Franchise:  A special privilege granted by a government permitting the continuing use of public property, such  as city streets, and usually involving the elements of monopoly and regulation. FTE (Full‐Time Equivalent):  A term used when developing personal services budgets; 2,080 hours worked  annually equates to 1.0 full‐time equivalent (FTE) position. Full Faith and Credit:  A pledge of the general taxing power for the payment of debt obligations.  Note: Bonds carrying such pledges are usually referred to as general obligation bonds or full faith and credit  bonds. Function:  A group of related activities aimed at accomplishing a major service or regulatory program for which  the Town is responsible.  For example, public safety is a function. Functional Classification:  A grouping of expenditures on the basis of the principal purposes for which they are  made.  Examples are public safety, public health, public welfare, etc.  See also Activity Classification and Object  Classification. Fund:  An independent fiscal and accounting entity with a self‐balancing set of accounts recording cash and/or  other resources, together with all related liabilities, obligations, reserves, and equities which are segregated for  the purpose of carrying on specific activities or attaining certain objectives in accordance with special  regulations, restrictions, or limitations. Fund Accounts:  All accounts necessary to set forth the financial operations and financial condition of a fund.   Note: Sometimes the term is used to denote budgetary accounts as distinguished from proprietary accounts,  but such usage is not recommended. Fund Balance: The excess of the assets of a fund over its liabilities and reserves, except in the case of funds  subject to budgetary accounting where, prior to the end of a fiscal period, it represents the excess of the fund's  assets and estimated revenues for the period over its liabilities, reserves, and appropriations for the period. Fund Balance Sheet:  A balance sheet for a single fund.  See Fund and Balance Sheet. Fund Group: A group of funds that are similar in purpose and character.  For example, several special revenue  funds constitute a fund group. Funding:  The conversion of floating debt or time warrants into bonded debt. Funding Bonds:  Bonds issued to retire outstanding floating debt and to eliminate deficits. Appendix Page 52 Glossary General Audit: An audit made at the close of a normal accounting period, which covers all of the funds and  balanced account groups of a governmental unit.  Such audits may involve some detailed verification, as  determined by the professional judgment of the auditor, but usually they are based on appropriate tests and  checks.  See also Special Audit. General Fixed Assets: Those fixed assets of a governmental unit that are not accounted for in Enterprise, Trust,  or Intragovernmental Service Funds. General Fixed Assets Group of Accounts:  A self‐balancing group of accounts set up to account for the general  fixed assets of a governmental unit.  See General Fixed Assets. General Fund: A fund used to account for all transactions of a governmental unit that are not accounted for in  another fund.   Note: The General Fund is used to account for the ordinary operations of a governmental unit that are  financed from taxes and other general revenues. General Long‐Term Debt:  Long‐term debt legally payable from general revenues and backed by the full faith  and credit of a governmental unit.  See Long‐Term Debt. General Obligation Bonds:  Bonds for whose payment the full faith and credit of the issuing body are pledged.   More commonly, but not necessarily, general obligation bonds are considered to be those payable from taxes  and other general revenues.  See also Full Faith and Credit. General Revenue:  The revenues of a governmental unit other than those derived from and retained in an  enterprise. Note: If a portion of the net income in an enterprise fund is contributed to another non‐enterprise fund, such  as the General Fund, the amounts transferred constitute general revenue of the governmental unit. Goal:  A statement of broad direction, purpose or intent based on the need of the community.  A goal is  general and timeless; that is, it is not concerned with a specific achievement in a given period. Governmental Accounting:  The composite activity of analyzing, recording, summarizing, reporting, and  interpreting the financial transactions of governmental units and agencies. Governmental Fund Types:  Funds used to account for the acquisition, use and balances of expendable  financial resources and the related current liabilities ‐ except those accounted for in proprietary funds and  fiduciary funds.  In essence, these funds are accounting segregations of financial resources.  Expendable assets  are assigned to a particular governmental fund type according to the purposes for which they may or must be  used.  Current liabilities are assigned to the fund type from which they are to be paid.  The difference between  the assets and liabilities of governmental fund types is referred to as fund balance.  The measurement focus in  these fund types is on the determination of financial position and changes in financial position (sources, uses  and balances of financial resources), rather than on net income determination.  The statement of revenues,  expenditures and changes in fund balance is the primary governmental fund type operating statement.  It may  be supported or supplemented by more detailed schedules of revenues, expenditures, transfers and other  changes in fund balance.   Grant:  A contribution by one governmental unit to another.  The contribution is usually made to aid in the  support of a specified function (for example, public safety), but it is sometimes also for general purposes. Gross Bonded Debt:  The total amount of direct debt of a governmental unit represented by outstanding  bonds before deduction of any assets available and earmarked for their retirement.  See also Direct Debt. Appendix Page 53 Glossary Improvements:  Buildings, other structures, and other attachments or annexations to land which are intended  to remain so aƩached or annexed, such as sidewalks, trees, drives, tunnels, drains, and sewers. Note:  Sidewalks, curbing, sewers, and highways are sometimes referred to as "betterments," but the term  improvements other than buildings is preferred. Improvements Other Than Buildings: A fixed asset account that reflects the acquisition value of permanent  improvements, other than buildings, which add value to land.  Examples of such improvements are fences,  retaining walls, sidewalks, pavements, gutters, tunnels, and bridges.  If the improvements are purchased or  constructed, this account contains the purchase or contract price.  If improvements are obtained by gift, it  reflects the appraised value at time of acquisition. Income:  A term used in accounting for governmental enterprises to represent the excess of revenues earned  over the expenses incurred in carrying on the enterprise's operations.  It should not be used without an  appropriate modifier, such as Operating, Non‐operating, or Net.   Note:  The term Income should not be used in lieu of Revenue in non‐enterprise funds. Interfund Accounts:  Accounts in which transactions between funds are reflected.  See Interfund Transfers. Interfund Transfers:  Amounts transferred from one fund to another. Intergovernmental Revenues: Revenue received from other governments in the form of grants, shared  revenues, or payments in lieu of taxes. Interim Borrowing:  (1) Short‐term loans to be repaid from general revenues during the course of a fiscal year.   (2) Short‐term loans in anticipation of tax collections or bond issuance. Internal Control:  A plan of organization under which employees' duties are so arranged and records and  procedures so designed as to make it possible to exercise effective accounting control over assets, liabilities,  revenues, and expenditures.  Under such a system, the work of employees is subdivided so that no single  employee performs a complete cycle of operations.  Thus, for example, an employee handling cash would not  post the accounts receivable records.  Moreover, under such a system, the procedures to be followed are  definitely laid down and require proper authorizations by designated officials for all actions to be taken. Internal Service Fund: A fund established to finance and account for services and commodities furnished by a  designated department or agency to other departments and agencies within a single governmental unit.   Amounts expended by the fund are restored thereto either from operating earnings or by transfers from other  funds, so that the original fund is kept intact.   Inventory:  A detailed list showing quantities, descriptions, and values of property, and frequently also lists  units of measure and unit prices. Inventory of Supplies:  The cost value of supplies on hand. Investments:  Securities and real estate held for the production of income in the form of interest, dividends,  rentals, or lease payments.  The term does not include fixed assets used in Town operations. Judgment:  An amount to be paid or collected by a governmental unit as the result of a court decision,  including a condemnation award in payment for private property taken for public use. Judgments Payable:  Amounts due to be paid by a governmental unit as the result of court decisions, including  condemnation awards in payment for private property taken for public use. Appendix Page 54 Glossary Land:  A fixed asset account that reflects the value of land owned by a governmental unit.  If land is purchased,  this account shows the purchase price and costs such as legal fees, filling and excavation costs, and the like,  which are incurred to put the land in condition for its intended use. If land is acquired by gift, the account  reflects the estimated fair value at the time of acquisition. Legal Investments:  Investments which governmental units are permitted to make by law. Levy:  (Verb) To impose taxes, special assessments, or service charges for the support of governmental  activities.  (Noun) The total amount of taxes, special assessments, or service charges imposed by a  governmental unit. Liabilities:  Debt or other legal obligations arising out of transactions in the past which must be liquidated,  renewed, or refunded at some future date.   Note: The term does not include encumbrances. Long‐Term Debt: Debt with a maturity of more than one year after the date of issuance. Machinery and Equipment:  See Equipment. Maintenance:  The upkeep of physical properties in condition for use or occupancy.  Examples are the  inspection of equipment to detect defects and the making of repairs. Major Fund:  Funds that the revenues, expenses, assets or liabilities are greater than 10% of corresponding totals and at least 5% of the aggregate amount for all governmental and enterprise funds.  Modified Accrual Basis: A system under which some accruals, usually costs, are recorded but others, usually  revenues, are not.  The extent of modification varies in practice, depending upon the accountant's judgment. Municipal:  In its broadest sense, an adjective that denotes the state and all subordinate units of government.   In a more restricted sense, an adjective that denotes a city or town, as opposed to other units of local  government. Municipal Bond: A bond issued by a state or local government unit.   Municipal Corporation:  A body politic and corporate established pursuant to state authorization for the  purpose of providing governmental services and regulations for its inhabitants.  A municipal corporation has  defined boundaries and a population, and is usually organized with the consent of its residents.  It usually has  a seal and may sue and be sued. Net Bonded Debt:  Gross bonded debt less any cash or other assets available and earmarked for its retirement. Net Income:  A term used in accounting for governmental enterprises to designate the excess of total revenues  over total expenses for an accounting period.   See also Income, Operating Revenues, Operating Expenses,  Non‐operating Income, and Non‐operating Expenses. Net Revenue Available for Debt Service:  Gross operating revenues of an enterprise, less operating and  maintenance expenses, yet exclusive of depreciation and bond interest.  "Net Revenue" as thus defined  computes "coverage" on revenue bond issues.   Note: Under the laws of some states and the provisions of some revenue bond indentures, net revenues used  for computation of coverage are required to be on a cash basis rather than an accrual basis. Nominal Interest Rate:  The contractual interest rate shown on the face and in the body of a bond and  representing the amount of interest to be paid, in contrast to the effective interest rate. Appendix Page 55 Glossary Non‐major Fund:  Funds that the revenues, expenses, assets or liabilities are less than 10% of corresponding totals and at less than 5% of the aggregate amount for all governmental and enterprise funds.  Non‐operating Expenses:  Expenses incurred for non‐operating properties or in the performance of activities  not directly related to supplying the basic services of a governmental enterprise.  An example of a non‐ operating expense is interest paid on outstanding revenue bonds.  See also Non‐operating Properties. Non‐operating Income: Income of governmental enterprises that is not derived from the basic operations of  such enterprises.  An example is interest on investments or on bank time deposits. Non‐operating Properties: Properties that are owned by a governmental enterprise but which are not used in  the provision of basic services for which the enterprise exists. Notes Payable:  In general, an unconditional written promise signed by the maker to pay a certain sum of  money on demand or at a fixed or determinable time either to the bearer or to the order of a person  designated therein. Notes Receivable: A note payable held by a governmental unit. Object:  As used in expenditure classification, this term applies to the article purchased or the service obtained  (as distinguished from the results obtained from expenditures).  Examples are personal services, contractual  services, materials, and supplies.  See also Activity Classification, Functional Classification, and Object  Classification. Objective:  Desired output oriented accomplishments that can be measured and achieved within a given time  frame.  Achievement of the objective advances the activity and organization toward a corresponding goal. Object Classification:  A grouping of expenditures on the basis of goods or services purchased; for example,  personal services, materials, supplies and equipment.  See also Functional Classification and Activity  Classification. Obligations:  Amounts that a governmental unit may be required legally to meet out of its resources.  They  include not only actual liabilities, but also unliquidated encumbrances. Obsolescence:  The decrease in the value of fixed assets resulting from economic, social, technological, or legal  changes. Operating Budget:  Operating budgets serve many purposes within a government entity, but they have two  primary purposes: (1) to plan the services that are going to be offered during the coming year and set  priorities; (2) to conform with legal requirements to ensure that expenditures do not exceed those  appropriated.  Operating budgets are also called Annual Budgets.  See Budget. Operating Expenses:  (1) As used in the accounts of governmental enterprises, the term means those costs  which are necessary to the maintenance of the enterprise, the rendering of services, the sale of merchandise,  the production and disposition of commodities produced, and the collection of enterprise revenues, and (2)  the term is also sometimes used to describe expenses for general governmental purposes. Operating Income: Income of a governmental enterprise that is derived from the sale of its goods and/or  services.  For example, income from the sale of water by a municipal water utility is operating income.  See also  Operating Revenues. Operating Revenues:  Revenues derived from the operation of governmental enterprises of a business  character. Appendix Page 56 Glossary Operating Statement:  A statement summarizing the financial operations of a governmental unit for an  accounting period as contrasted with a balance sheet which shows financial position at a given moment in  time. Ordinance:  A formal legislative enactment by the council or governing body of a municipality.  If it is not in  conflict with any higher form of law, such as a state statute or constitutional provision, it has the full force and  effect of law within the boundaries of the municipality to which it applies.  Note: The difference between an ordinance and a resolution is that the latter requires less legal formality and  has a lower legal status.  Ordinarily, the statutes or charter will specify or imply those legislative actions that  must be by ordinance and those which may be by resolution.  Revenue raising measures, such as the  imposition of taxes, special assessments and service charges, universally require ordinances. Original Cost:  The total of assets given and/or liabilities assumed to acquire an asset.  In utility accounting, the  original cost to the first owner who dedicated the plant to service of the public. Overhead:  Those elements of cost necessary in the production of an article or the performance of a service  which are of such a nature that the amount applicable to the product or service cannot be determined  accurately or readily.  Usually they relate to those objects of expenditures which do not become an integral  part of the finished product or service such as rent, heat, light, supplies, management, supervision, etc. Overlapping Debt:  The proportionate share of the debts of local governmental units located wholly or in part  within the limits of the reporting government which must be borne by property within each governmental unit. Note:  Except for special assessment debt, the amount of debt of each unit applicable to the reporting unit is  arrived at by (1) determining what percentage of the total assessed value of the overlapping jurisdiction lies  within the limits of the reporting unit, and (2) applying this percentage to the total debt of the overlapping  jurisdiction.  Special assessment debt is allocated on the basis of the ratio of assessments receivable in each  jurisdiction, which will be used wholly or in part to pay off the debt to total assessments receivable, which will  be used wholly or in part for this purpose. Pay‐As‐You‐Go:  A method of financing improvements that refers to the allocation of a significant portion of  operating revenues each year to a revenue fund.  The monies in this fund are to be used for annual  improvements or saved until they are sufficient for large projects.  A regular allocation made from the  operating budget to smooth budget allocations for expenditures and eliminate the need for bond financing.  Sometimes referred to as pay‐as‐you‐acquire financing. Pay‐As‐You‐Use:  A method of financing long‐term improvements by serial debt issues with maturities  arranged so that the retirement of debt coincides with the depreciation or useful life of the improvement.  In  theory, the interest and debt retirement charges paid by each generation of taxpayers or users coincide with  their use and enjoyment of the improvement.  Under pay‐as‐you‐use, each user group pays for its own  improvements.  No one is forced to provide free goods or services for a future generation or to contribute  toward facilities for a community in which he or she will not live, nor will new members of the community  derive benefits from improvements that they have not assisted in financing. Prior Years' Tax Levies:  Taxes levied for fiscal periods preceding the current one. Private Trust Fund: A trust fund that will ordinarily revert to private individuals or will be used for private  purposes; for example, a fund that consists of guarantee deposits. Program:  A group of related activities performed by one or more organization units for the purpose of  accomplishing a function for which the town is responsible. Project:  A plan of work, job, assignment, or task. Appendix Page 57 Glossary Proprietary Accounts: Those accounts which show actual financial position and operations, such as actual  assets, liabilities, reserves, fund balances, revenues, and expenditures, as distinguished from budgetary  accounts. Proprietary Fund Types:  Sometimes referred to as income determination or commercial‐type funds, the  classification used to account for a government's ongoing organizations and activities that are similar to those  often found in the private sector (i.e., enterprise and internal service funds).  All assets, liabilities, equities,  revenues, expenses, and transfers relating to the government's business and quasi‐business activities are  accounted for through proprietary funds.  The GAAP used are generally those applicable to similar businesses  in the private sector and the measurement focus is on determination of net income, financial position and  changes in financial position. Public Trust Fund: A trust fund whose principal, earnings, or both, must be used for a public purpose; for  example, a pension or retirement fund. Purchase Order: A document that authorizes the delivery of specified merchandise or the rendering of certain  services and the making of a charge for them. Special Purpose District:  allows for a dedicated sales tax resource. Rate Base:  The value of utility property used in computing an authorized rate of return as authorized by law or  a regulatory commission. Receipts:  This term, unless otherwise qualified, means cash received.  See also Revenue. Recoverable Expenditures:  An expenditure made for or on behalf of another governmental unit, fund, or  department, or for a private individual, firm, or corporation, which will subsequently be recovered in cash or  its equivalent. Refunding Bonds:  Bonds issued to retire bonds already outstanding.  The refunding bonds may be sold for  cash and outstanding bonds redeemed in cash, or the refunding bonds may be exchanged with holders of  outstanding bonds. Registered Bond:  A bond, the owner of which is registered with the issuing governmental unit, and which  cannot be sold or exchanged without a change of registration.  Such a bond may be registered as to principal  and interest or as to principal only. Reimbursement:  Cash or other assets received as a repayment of the cost of work or services performed or of  other expenditures made for or on behalf of another governmental unit or department or for an individual,  firm, or corporation. Replacement Cost:  The cost as of a certain date of a property which can render similar service (but need not  be of the same structural form) as the property to be replaced.  See also Reproduction Cost. Reproduction Cost: The cost as of a certain date of reproducing an exact new property in the same place.  Note: Sometimes this term is designated as "reproduction cost new" to distinguish it from "depreciated  reproduction cost," which is the reproduction cost of a given property less the estimated amount of  accumulated depreciation applicable to it.  In the absence of any modifier, however, the term "reproduction  cost" is understood to be synonymous with "reproduction cost new."  See also Replacement Cost.    Requisition:  A written demand or request, usually from one department to the purchasing officer or to  another department, for specified articles or services. Appendix Page 58 Glossary Reserve:  An account which records a portion of the fund balance which must be segregated for some future  use and which is, therefore, not available for further appropriation or expenditure.  A Reserve for Inventories  equal in amount to the Inventory of Supplies on the balance sheet of a General Fund is an example of such a  reserve. Reserve for Revenue Bond Debt Service:  A reserve in an Enterprise Fund which represents the segregation of a  portion of retained earnings equal to current assets that are restricted to current servicing of revenue bonds in  accordance with the terms of a bond indenture. Reserve for Revenue Bond Retirement:  A reserve in an Enterprise Fund which represents the segregation of a  portion of retained earnings equal to current assets that are restricted for future servicing of revenue bonds in  accordance with the terms of a bond indenture. Resolution:  A special or temporary order of a legislative body; an order of a legislative body requiring less legal  formality than an order or statute.  See also Ordinance. Resources:  The actual assets of a governmental unit, such as cash, taxes receivable, land, buildings, etc.,  plus  contingent assets such as estimated revenues applying to the current fiscal year not accrued or collected, and  bonds authorized and unissued. Retained Earnings: The accumulated earnings of an Enterprise or Internal Service Fund which have been  retained in the fund and which are not reserved for any specific purpose. Retirement Fund:  A fund out of which retirement annuities and/or other benefits are paid to authorized and  designated public employees.  A retirement fund is accounted for as a Trust Fund. Revenue:  For those revenues which are recorded on the accrual basis, this term designates additions to assets  which: (a) do not increase any liability; (b) do not represent the recovery of an expenditure; (c) do not  represent the cancellation of certain liabilities without a corresponding increase in other liabilities or a  decrease in assets; and (d) do not represent contributions of fund in Enterprise and Internal Service Funds.   The same definition applies to those cases where revenues are recorded on the modified accrual or cash basis,  except that additions would be partially or entirely to cash.  See also Accrual Basis, Modified Accrual Basis,  Cash Basis, Net Revenue Available for Debt Service, and Receipts. Revenue Bonds: Bonds whose principal and interest are payable exclusively from earnings of a public  enterprise.  In addition to a pledge of revenues, such bonds sometimes contain a mortgage on the enterprise's  property and are then known as mortgage revenue bonds. Schedules:  (1) The explanatory or supplementary statements that accompany the balance sheet or other  principal statements periodically prepared from the accounts.  (2) The accountant's or auditor's principal work  papers covering his examination of the books and accounts.  (3) A written enumeration or detailed list in  orderly form.  See also Statements. Securities:  Bonds, notes, mortgages, or other forms of negotiable or non‐negotiable instruments. See also  Investments. Self‐Supporting or Self‐Liquidating Debt:  Debt obligations whose principal and interest are payable solely from  the earnings of the enterprise for the construction or improvement of which they were originally issued.  See  also Revenue Bonds. Serial Annuity Bonds:  Serial bonds in which the annual installments of bond principal are so arranged that the  combined payments for principal and interest are approximately the same each year. Serial Bonds:  Bonds the principal of which is repaid in periodic installments over the life of the issue. Appendix Page 59 Glossary Shared Revenue:  Revenue which is levied by one governmental unit but shared, usually in proportion to the  amount collected, with another unit of government or class of governments. Short‐Term Debt:  Debt with a maturity of one year or less after the date of issuance.  Short‐term debt usually  includes floating debt, bond anticipation notes, tax anticipation notes, and interim warrants. Special Assessment:  A compulsory levy made by a local government against certain properties to defray part  or all of the cost of a specific improvement or service which is presumed to be of general benefit to the public  and of special benefit to such properties.   Note:  The term should not be used without a modifier (for example, "special assessments for street paving,"  or "special assessments for street sprinkling") unless the intention is to have it cover both improvements and  services, or unless the particular use is apparent from the context. Special Assessment Bonds:  Bonds payable from the proceeds of special assessments.  If the bonds are payable  only from the collections of special assessments, they are known as "special assessment bonds."  If, in addition  to the assessments, the full faith and credit of the governmental unit are pledged, they are known as "general  obligation special assessment bonds." Special Assessment Fund: A fund set up to finance and account for the construction of improvements or  provision of services which are to paid for, wholly or in part, from special assessments levied against benefited  property.  See also Special Assessment and Special Assessment Bonds. Special Assessment Roll: The official list showing the amount of special assessments levied against each  property presumed to be benefited by an improvement or service. Special Audit: An audit which is limited to some particular phase of a governmental unit's activity, such as the  examination of a Projects Fund, or an audit which covers all of the governmental unit's activities for a shorter  or longer period of time than the usual accounting period of one fiscal year. Such audits may involve some  detailed verifications as determined by the professional judgment of the auditor, but usually they are based on  appropriate tests and checks.  See General Audit. Special District: An independent unit of local government organized to perform a single governmental function  or a restricted number of related functions.  Special districts usually have the power to incur debt and levy  taxes; however, certain types of special districts are entirely dependent upon enterprise earnings and cannot  impose taxes.  Examples of special districts are water districts, drainage districts, flood control districts,  hospital districts, fire protection districts, transit authorities, port authorities, and electric power authorities. Special Fund: Any fund that must be devoted to some special use in accordance with specific regulations and  restrictions.  Generally, the term applies to all funds other than the General Fund. Special Revenue Fund:  A fund used to account for revenues from specific taxes or other earmarked revenue  sources which by law are designated to finance particular functions or activities of government. Includes  intergovernmental revenue in the form of state and federal grant funds. Statements: (1) Used in a general sense, statements are all of those formal written presentations that set forth  financial information.  (2) In technical accounting usage, statements are those presentations of financial data  that show the financial position and the results of financial operations of a fund, a group of accounts, or an  entire governmental unit for a particular accounting period.  See also Schedules. Statute:  A written law enacted by a duly organized and constituted legislative body.  See also Ordinance and  Resolution. Stores:  Goods on hand in storerooms, subject to requisition and use. Appendix Page 60 Glossary Straight Serial Bonds:  Serial Bonds in which the annual installments of a bond principal are approximately  equal. Surety Bond:  A written promise to pay damages or to indemnify against losses caused by the party or parties  named in the document, through nonperformance or through defalcation.  An example is a surety bond given  by a contractor or by an official handling cash or securities. Surplus:  The excess of the assets of a fund over its liabilities, or if the fund has other resources and  obligations, the excess of resources over the obligations.  The term should not be used without a properly  descriptive adjective unless its meaning is apparent from the context.  See also Fund Balance, and Retained  Earnings. Symbolization:  The assignment of letters, numbers, or other marks or characters to the ordinary titles of the  ledger accounts.  Each letter or number should have the same meaning wherever used and should be selected  with great care so that it will indicate, immediately and with certainty, the title of the account, as well as its  place in the classification.  The use of proper symbols saves much time and space in making the book record  and adds to its precision and accuracy.  See also Coding. Tax Levy:  The total amount to be raised by general property taxes for purposes specified in the Tax Levy  Ordinance. Tax Levy Ordinance:  An ordinance by means of which taxes are levied. Tax Liens: Claims which governmental units have upon properties until taxes levied against them have been  paid.   Note:  The term is sometimes limited to those delinquent taxes for the collection of which legal action has been  taken through the filing of liens. Tax Rate: The amount of tax levied for each $100 of assessed valuation. Tax Rate Limit: The maximum rate at which a governmental unit may levy a tax.  The limit may apply to taxes  raised for a particular purpose, or to taxes imposed for all purposes; and may apply to a single government, to  a class of governments, or to all governmental units operating in a particular area.  Overall, tax rate limits  usually restrict levies for all purposes and of all governments, state and local, having jurisdiction in a given  area. Tax Roll:  The official list showing the amount of taxes levied against each taxpayer or property. Frequently, the  tax roll and the assessment roll are combined, but even in these cases the two can be distinguished. Tax Supplement:  A tax levied by a local unit of government which has the same base as a similar tax levied by  a higher level of government, such as a state or province.  The local tax supplement is frequently administered  by the higher level of government along with its own tax.  A locally imposed, state‐administered sales tax is an  example of a tax supplement. Taxes:  Compulsory charges levied by a governmental unit for the purpose of financing services performed for  the common benefit.   Note:  The term does not include specific charges made against particular persons or property for current or  permanent benefits such as special assessments.  Neither does the term include charges for services rendered  only to those paying such charges as, for example, water and sewer charges. Taxes Receivable‐Current: The uncollected portion of taxes that a governmental unit has levied, which has  become due but on which no penalty for nonpayment attaches. Appendix Page 61 Glossary Taxes Receivable‐Delinquent:  Taxes remaining unpaid on and after the date on which a penalty for  nonpayment is attached.  Even though the penalty may be subsequently waived and a portion of the taxes  may be abated or canceled, the unpaid balances continue to be delinquent taxes until paid, abated, canceled,  or converted into tax liens. Term Bonds: Bonds that the entire principal of which matures on one date.  Also called sinking fund bonds. Trust and Agency Funds:  Funds used to account for assets held by a government in a trustee capacity or as an  agent for individuals, private organizations, other governments and/or other funds. Trust Fund:  A fund consisting of resources received and held by the governmental unit as trustee, to be  expended or invested in accordance with the conditions of a trust.  See also Private Trust Fund and Public  Trust Fund. Unappropriated Budget Surplus: Where the fund balance at the close of the preceding year is not included in  the annual budget, this term designates that portion of the current fiscal year's estimated revenues which has  not been appropriated.  Where the fund balance of the preceding year is included, this term designates the  estimated fund balance at the end of the current fiscal period. User Charges:  The payment of a fee for direct receipt of a public service by the party benefiting from the  service. Utility Fund:  See Enterprise Fund. Work Program:  A plan of work proposed to be done during a particular period by an administrative agency in  carrying out its assigned activities. Appendix Page 62 THANK YOU, BUDGET TEAM! The Town Budget truly takes teamwork, and I trust more hands went into this effort than are recognized here. I’d like to thank those listed below who were instrumental in preparation of the preliminary budget. Mario Canizares, Town Manager Bob Scott, Deputy Town Manager Chuck Ewings, Assistant Town Manager Robyn Battle, Executive Director Chief Blasingame, Fire Assistant Chief Eft, Fire Chief Kowalski, Police Assistant Chief Brewer, Police Assistant Chief Davis, Police Michelle Lewis Sirianni, Town Secretary Todd Rice, Communications Tony Luton, HR Gary Landeck, Library Carrie Jones, Public Works Leigh Johnson, IT Dan Baker, Parks Hulon Webb, Engineering David Hoover, Dev. Services Chris Landrum Finance Director