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09.08.26 Town Council Meeting PresentationWelcome to the September 8, 2026, Prosper Town Council Meeting Call to Order/Roll Call Invocation, Pledge of Allegiance, and Pledge to the Texas Flag. Pledge to the Texas Flag Honor the Texas flag; I pledge allegiance to thee, Texas, one state under God, one and indivisible. Announcements Presentations. Agenda Item 1. Proclamation declaring September 17-23, 2026, as Constitution Week. (MLS) Agenda Item 2. Recognize Prosper High School student, Prisha Srivastava. (MLS) Consent Agenda Agenda Item 3. Consider and act upon the minutes from the August 25, 2026, Town Council Work Session meeting. (MLS) Agenda Item 4. Consider and act upon the minutes from the August 25, 2026, Town Council Regular meeting. (MLS) Agenda Item 5. Consider and act upon a resolution approving the Town of Prosper Investment Policy and Investment Strategy and approving the list of qualified brokers/dealers and financial institutions that are authorized to engage in investment transactions with the Town of Prosper. (CL) Agenda Item 6. Consider and act upon adopting the FY 2026-2027 Prosper Economic Development Corporation budget. (MC) Agenda Item 7. Consider and act upon an Ordinance establishing the tax year 2026 certified appraisal roll. (CL) Agenda Item 8. Consider and act upon a Resolution designating The Frisco Enterprise as the official newspaper of the Town of Prosper and The Dallas Morning News as an alternative advertising source for FY 2026-2027. (MLS) Agenda Item 9. Consider and act upon the appointment of a Municipal Judge for a two-year term and authorize the Mayor to execute an agreement for same. (JJ) Agenda Item 10. Consider and act upon authorizing the Town Manager to execute a Construction Agreement with Niyam Construction, LLC for Raymond Park Fencing in the amount of $209,197.50. (DA) Raymond Park Fencing This contract provides for the installation of six-foot-tall aluminum fencing with a concrete mow strip along portions of the southern and eastern edges of Raymond Park to create a safe boundary between the playing fields adjacent to First Street and Coit Road.The $209,197.50 project is being completed in partnership with the Prosper Area Soccer Association (PASO),which is contributing $153,000 toward the construction cost. Agenda Item 11. Consider and act upon authorizing the Town Manager to execute a Construction Agreement awarding CSP No. 2026-22-B to O & J Coatings, Inc., related to construction services for the Craig Road Elevated Storage Tank Rehabilitation project in the amount of $1,825,320 and authorize $180,000 for construction phase contingencies. The total purchase order amount is $2,005,320. (LH) Bids Received: Six (6) – August 18, 2026 CSP Percentages: •Cost Proposal =65% •Project Timeline =25% •Qualifications/Exp =10% Range of Proposals (Cost): $1,759,976.38 - $2,500,550 Engineers Estimate: $2,216,754 Budget: $2,540,000 Range of Proposals (Time): 181 days - 270 days Recommendation: O & J Coating, Inc. $1,825,320 182 days Agenda Item 12. Consider and act upon remanding back to the Planning and Zoning Commission for consideration at a future meeting a request to rezone a portion of Planned Development-31 to create a new Planned Development on Saddle Creek Commercial, Block A, Lots 2R and 3, for non-residential uses (office, restaurant, retail), on 13.6± acres, located on the west side of Preston Road, 225± feet north of Prosper Trail. (ZONE-25-0003) (DH) This item is being remanded back to a future meeting of the Planning and Zoning Commission. Agenda Item 13. Consider and act upon authorizing the Town Manager to execute a Development Agreement between Urban Heights at Frontier LLC and the Town of Prosper relative to Frontier Gateway. (DEVAGRE- 26-0007) (DH) Agenda Item 14. Consider and act upon whether to direct staff to submit a written notice of appeals on behalf of the Town Council to the Development Services Department, pursuant to Article 2.03(H)(8) and 2.03(I)(3)(g) of the Town’s Unified Development Code, regarding action taken by the Planning and Zoning Commission on Preliminary Site Plans and Site Plans. (DH) Preliminary Site Plan Frontier Gateway Block A, Lots 1-12 (DEVAPP-24-0110) Proposal Purpose: •Construct 12 commercial buildings (office, restaurant, and retail uses) totaling 214,822 square feet and associated parking. Updates: •Development Agreement •Increased Landscaping (Dallas Parkway and Frontier Parkway) •Modification of Lot 5 (Restaurant/Retail instead of Pharmacy with a drive-through) Site Layout Lot Breakdown: •Lot 1: Restaurant (2,400 SF) •Lot 2: Retail (10,850 SF) •Lot 3: Restaurant (2,400 SF) •Lot 4: Retail (7,800 SF) •Lot 5: Restaurant/Retail (14,972 SF) •Lot 6: Restaurant/Retail (15,655 SF) •Lot 7: Retail (35,724 SF) •Lot 8: Retail (16,773 SF) •Lot 9: Restaurant/Retail (13,650 SF) •Lot 10: Restaurant/Retail (13,650 SF) •Lot 11: Office/Retail (40,118 SF) •Lot 12: Office/Retail (40,830 SF) Phasing and Open Space Phasing: •Phase 1: Lots 1-8 (North of East-West Drive Aisle) •Phase 2: Lots 9-12 (South of East-West Drive Aisle) Open Space: •Centrally located retention pond with pathways that connect to surrounding lots. Recommendation: •Town Staff recommends approval of the Preliminary Site Plan subject to Town Council approval to execute the proposed Development Agreement. Site Plan Prosper Flex Park Block A, Lot 1 (DEVAPP-26-0018) Proposal Purpose: •Construct four office/warehouse buildings totaling 154,000 square feet and associated parking. •Each Building is 38,500 SF Recommendation: •Town Staff recommends approval of the Site Plan. Site Plan Park Place Block C, Lot 1X (DEVAPP-26-0038) Proposal Purpose: •Construct a 5,250 square foot amenity center and associated parking to serve Park Place subdivision. Recommendation: •Town Staff recommends approval of the Site Plan. Citizen Comments Regular Agenda Pursuant to Section 551.007 of the Texas Government Code, individuals wishing to address the Council for items listed as public hearings will be recognized when the public hearing is opened. Agenda Item 15. Consider and act upon an Ordinance amending Appendix A, "Fee Schedule" of the Town's Code of Ordinances. (CA) September 8, 2026 Fee Schedule Adjustments Library Fee Adjustments 3D Printing Current: $1.00 per hour Authorized by Council: $0.20 per gram •Connects fee directly to material used •Supports 3D printing as an educational service Printing and Copying Current: $0.20 per page Authorized by Council: $0.15 B&W / $0.50 color per side •Keeps basic B&W printing affordable •Better reflects higher cost of color printing Utility Customer Service Fee Adjustments Overview •Utility service fees have remained unchanged since before 2013. •To better align with fees charged by comparable survey cities, staff recommends updating the following fees: •Service initiation fees •Reconnection fees •After-hours reconnection fees •Insufficient funds (NSF) fees Fee Type Current Fee Proposed Fee Residential Initiation Fee $65.00 $75.00 Commercial Initiation Fee $75.00 $100.00 Reconnection Fee $50.00 $75.00 After-Hours Reconnection Fee (In addition to reconnection fee)$75.00 $100.00 Insufficient Funds (NSF) Fee $25.00 $35.00 Why an adjustment is needed 2022 Last comprehensive update to the Public Works fee structure SINCE 2022 Material costs associated with providing Public Works services have continued to rise PROPOSED UPDATE Adjust applicable fees to reflect the current cost of materials The proposed fee adjustments are intended to recover increased material costs and maintain appropriate cost recovery—not to generate additional revenue. Includes water meters and related material components. Public Works Fee Update © 2026 NEWGEN STRATEGIES AND SOLUTIONS,LLC TOWN OF PROSPER,TX WATER AND WASTEWATER RATE STUDY September 8,2026 ©2026 NEWGEN STRATEGIES AND SOLUTIONS,LLC •The Town’s continued growth requires further capital investment to provide continuous and adequate service to customers. ̶The Town plans to issue an additional ~$33M in debt between FY 2026 and FY 2027 to fund the expansion to the Doe Branch Wastewater Treatment Plant to accommodate growth. •The Town intends to issue Revenue Bonds to fund Capital Projects,which requires a reserve to be established. •The Town receives Water from NTMWD and Wastewater Treatment from both NTMWD and UTRWD, which account for 47% of total expenses on average. Key Drivers ©2026 NEWGEN STRATEGIES AND SOLUTIONS,LLC •Overall Decrease in FY 2026 Starting Billing Determinants ̶Water:431 units lower than projection ̶Sewer:435 units lower than projection •Decrease in Growth Estimates ̶Water:327 connections per year on average ̶Sewer:327 connections per year on average •Change in Rate Structure Notable Changes Since Last Study PROJECTED GROWTH ©2026 NEWGEN STRATEGIES AND SOLUTIONS,LLC Annual Growth FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 # of Water Units 1,046 912 884 810 790 771 #of Sewer Units 889 756 726 700 671 643 0 200 400 600 800 1000 1200 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 Water Sewer CAPITAL INVESTMENT ©2026 NEWGEN STRATEGIES ANDSOLUTIONS,LLC 1 –An additional 2.5% of the total projected debt displayed will be added to each issuance for the Revenue Bond Reserve Water FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 Existing Debt $3,000,000 $0 $0 $0 $0 $0 Projected Debt1 0 0 15,300,000 0 0 0 Cash 1,800,000 0 0 0 0 0 Impact Fees 6,300,000 0 0 0 0 0 Grants 0 0 0 0 0 0 Other 2,456,980 300,000 0 0 2,150,000 0 Total $13,556,980 $300,000 $15,300,000 $0 $2,150,000 $0 Wastewater FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 Existing Debt $16,571,950 $0 $0 $0 $0 $0 Projected Debt1 0 16,571,950 0 0 0 0 Cash 0 0 0 0 0 0 Impact Fees 1,000,000 0 0 0 0 0 Grants 0 0 0 0 0 0 Other 200,000 200,000 0 0 0 0 Total $17,771,950 $16,771,950 $0 $0 $0 $0 ©2026 NEWGEN STRATEGIES AND SOLUTIONS,LLC •The Town anticipates to issue debt over the next two years to fund the Doe Branch WWTP Expansion and potentially the 380 Water Line Relocation. FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 Interest Rate 4.28%4.28%4.28%4.28%4.28%4.28% Issue Amount1 $0 $16,986,249 $15,682,500 $0 $0 $0 Note: 1 –The issue amount for FY 2027-2028 contain an additional 2.5%of all project costs to cover the revenue bond reserve requirement. Projected Debt ©2026 NEWGEN STRATEGIES AND SOLUTIONS,LLC FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 Personnel $251,370 $341,727 $665,250 $686,977 $766,023 One-Time Equipment Purchases 502,846 0 0 0 0 One-Time Personnel 184,097 0 0 0 0 Total New Program O&M Expenses $686,943 $341,726 $665,250 $686,977 $766,023 •An average of 2–3 new positions are anticipated to be added to utility-related departments each year. •The upcoming budget adds 3 new positions as well as several items of equipment for better quality of service such as the mini-excavator. New Program O&M ©2026 NEWGEN STRATEGIES AND SOLUTIONS,LLC FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 Water NTMWD Annual Cost $16,097,093 $18,205,859 $21,441,737 $25,523,289 $27,758,208 $31,008,723 % Annual Increase 13.1%17.8%19.0%8.8%11.7% % of Water Budget 56.7%60.7%64.7%65.5%66.7%68.5% Sewer1 NTMWD Annual Cost $4,331,378 $4,814,391 $4,644,688 $3,720,880 $4,182,344 $4,684,283 UTRWD Annual Cost 2,175,244 2,342,283 4,390,958 6,233,250 6,526,742 6,833,845 Total Sewer Annual Costs $6,506,622 $7,156,674 $9,035,646 $9,954,129 $10,709,086 $11,518,128 % Annual Increase 10.0%26.3%10.2%7.6%7.6% % of Sewer Budget 41.7%38.0%40.8%42.5%44.2%45.6% 1 –In FY 2029,an additional 3.0 MGD from Doe Branch is anticipated to come online, allowing more flow to be directed to UTRWD rather than NTMWD. Wholesale Expenses RATE STRUCTURE ANALYSIS 62©2026 NEWGEN STRATEGIES AND SOLUTIONS,LLC •NewGen was engaged by the Town to evaluate the volumetric rate structure. •After discussions with Staff,NewGen was directed to proceed with a volumetric rate structure that promotes conservation of water. •The tiered structure was adjusted so the bands of Volumetric amounts are split as you go up the tier to have a top tier of 35,000 gallons rather than 80,000 gallons Current Proposed 0 - 10,000 0 - 10,000 10,001 - 40,000 10,001 - 20,000 40,001 – 80,000 20,001 – 35,000 >80,000 >35,000 In Gallons RATE DESIGN 63©2026 NEWGEN STRATEGIES AND SOLUTIONS,LLC •Water and Sewer rates designed to achieve self-sufficiency by FY 2031 •Transition to new rate structure beginning FY 2027 •Due to the increased frequency of outside rates being challenged at the PUC, outside-city rates are held to a minimal increase. •Proposed rates assume an October 15th implementation with November being the first month billed each year on the new rates. FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 %Water Increase 13.95%7.10%6.75%5.02%4.80% %Wastewater Increase 17.96%8.89%8.17%3.25%3.15% MONTHLY BILL IMPACTS ©2026 NEWGEN STRATEGIES ANDSOLUTIONS,LLC 64 1”Residential – 13,000 Gallons Water &7,000 Gallons Wastewater REGIONAL BILL COMPARISON Notes: -Comparison City rates utilized in the bill calculations were the publicly available rates as of July 2026. -Prosper is Customer City of NTMWD for Water and a Member City for Wastewater ©2026 NEWGEN STRATEGIES AND SOLUTIONS,LLC NewGen’s understanding and interpretation of this data. 65 1”Residential – 13,000 Gallons Water&7,000 Gallons Wastewater Regional Bill Comparison is based on publicly available data and REGIONAL BILL COMPARISON Notes: -Comparison City rates utilized in the bill calculations were the publicly available rates as of July 2026. -Prosper is Customer City of NTMWD for Water and a Member City for Wastewater ©2026 NEWGEN STRATEGIES AND SOLUTIONS,LLC NewGen’s understanding and interpretation of this data. 66 1”Residential – 6,000 Gallons Water & Wastewater Regional Bill Comparison is based on publicly available data and Notes: -Comparison City rates utilized in the bill calculations were the publicly available rates as of July 2025.interpretation of this data.-Prosper is Customer City of NTMWD for Water and a Member City for Wastewater ©2025 NEWGEN STRATEGIES AND SOLUTIONS,LLC 67 REGIONAL BILL COMPARISON 1”Residential – 30,000 Gallons Water & 7,000 Gallons Wastewater Winter Average Regional Bill Comparison is based on publicly available data and NewGen’s understanding and Agenda Item 16. Conduct a Public Hearing to receive public input, consider such input, and consider and act upon an Ordinance adopting the Fiscal Year (FY) 2026-2027 Annual Operating and Capital Project Funds budgets and five-year Capital Improvement Program for the fiscal year beginning October 1, 2026, and ending September 30, 2027. (CL) Town of Prosper Budget Presentation September 8, 2026 STRATEGIC VISIONING PRIORITIES •Provide Excellent Municipal Services •Accelerate Infrastructure Delivery •Develop Downtown Prosper as a Destination •Ensure the Town’s Commercial Corridors are Ready for Development •Grow and Diversify the Tax Base Budget Timeline February 13, 2026 Finance Sub-committee meets on Initial Projects February 24, 2026 Multi-Year Budget Projections to Full Council April 28, 2026 Budget Workshop at Council Work Session July 2, 2026 Finance Sub-committee meets on Capital Project Prioritization, Debt Issuance, Market Adjustments and other items to direct Budget balancing July 24, 2026 Certified Tax Rolls provided by Central Appraisal Districts Budget Timeline August 3, 2026 Finance Sub-committee Budget preview and Tax Rate direction; Utility Rate direction August 11, 2026 Presentation of Preliminary Budget, Passage of all items needed to begin Budget Adoption Process. Before August 21, 2026 Sub-Committee Meetings per Council Direction September 3, 2026 Budget Town Hall Meeting September 8, 2026 Budget Public Hearing, Final Changes (if any) and Adoption; Tax Rate Public Hearing and Adoption; Tax Increase Ratification Budget in Brief Total FY 2026-2027 Preliminary Budget Operating Appropriations $139,179,150 including: •$72,292,656 for General Fund operations and maintenance, •$3,775,144 for the Crime Control and Prevention Special Purpose District, •$3,745,070 for the Fire Control, and Emergency Medical Services Special Purpose District, •$59,366,280 for the Town’s Enterprise Funds including Solid Waste, Water, and Sewer utilities as well as the Storm Drainage Utility Fund. General Debt Service Appropriations for the coming fiscal year are $21,373,297. Governmental Capital Projects added for the year total $74.7 million. Key General Fund Revenue Drivers For FY 2026-2027, General Fund revenues are expected to total $72,186,612 which is an increase of 5.8% over the previous year’s original budget. This increase in additional revenue is driven mostly from new construction property tax, sales tax, and franchise fees. The Preliminary Budget reflects 3.6% growth from the FY 2025-2026 Original Budget in Sales Tax. This is the eighth year for the Special Purpose Districts that receive sales tax in their respective funds. Currently we transfer those receipts into the General Fund to pay for the Public Safety Personnel they support. The General Fund is projecting sales tax revenue of $13,677,166 for FY 2026-2027. Key General Fund Expenditure Drivers For FY 2026-2027, General Fund Recurring Expenditures are expected to total $70,076,361 which is an increase of 11.5% over the previous year’s amended budget. Including non-recurring total budget growth for the General Fund is 5.9% Addition Amount 3% merit increase inc. Benefits $1,929,122 Phase 2 of Compensation & Classification Study $1,100,000 Full Year Funding of FY26 Public Safety Positions (FY26 Additions were budgeted to start in February, 2026) $434,906 Increase to Overtime incl. Benefits $325,066 Increase to Health Fund Contributions $882,827 Full Year of Chapter 380 Agreement Reimbursement $260,000 Increase to VERF Contributions $600,000 Non-Discretionary Items $1,620,859 Total Increase to Recurring Exp.$7,191,210 General Fund (non-discretionary) Enhancements to Maintain Current Service Levels Administration: Ongoing Compensation Monitoring - $20,000 IT software - $377,334 Police: Community Reporting Software - $25,000 MVCPA Task Force Grant (80% Reimbursed) - $533,500 MVCPA Catalytic Converter Grant (80% Reimbursed) - $377,200 Fire: Air Cylinder Replacements - $51,552 Community Services: Raymond Park Operating Costs - $206,130 Mowing Contracts for new parks and medians - $336,340 Engineering: Traffic Light Software - $53,000 General Fund Cost Shifting Measures Staff took the opportunity to move positions and programs to where the funding is more apt, as well as moving positions to where service demands are higher Administration: •Transfer 1 Marketing Coordinator from Communications to the Hotel Occupancy Fund. Development Services: •Transfer 1 Sr. Building Inspector to Code and Reclass to Environmental Health Specialist. •Move Mosquito Abatement costs from Code Compliance to the Drainage Fund. Staffing Additions Stormwater Drainage Fund Department Title Start Date FTE Recurring One-time Public Works Heavy Equipment Operator – Street Sweeper 10/1/2026 1 127,677 314,000 Total Stormwater Drainage Fund 1 127,677 314,000 There are no additional staffing requests in the General Fund. A total of 4 positions are proposed in the Utility Funds only. In the Water & Sewer Fund, 2 positions related to Meters to improve span of control, and 1 position for SCADA to provide near 24/7 coverage of the system. For the Stormwater Drainage Fund, 1 Street Sweeper Heavy Equipment Operator is proposed to allow for additional street sweeping maintenance. Water & Sewer Fund Department Title Start Date FTE Recurring One-time Public Works Utility Maintenance Supervisor – Meters 10/1/2026 1 131,535 53,500 Public Works Crew Leader – Meters 10/1/2026 1 113,099 72,577 Public Works SCADA Operator 10/1/2026 1 124,738 53,500 Total Stormwater Drainage Fund 3 369,372 179,577 Fund Recurring General Fund - Police-Sworn 459,867 General Fund - Fire-Sworn 518,444 General Fund – Non Public Safety 84,689 Water/Wastewater 37,000 Total Market Study 1,100,000 Market Study •Public Safety Market Methodology •Increase to adjacent market average and consider staffing levels •Non-Public Safety Market Methodology •Increase to minimum market average for select positions History: Pay Plan Adjustments FY-24 10/1/2023 •Police 7% •Dispatch 1-3% •Fire 5% •Fire all Positions to Market Avg. 4.85% •PD all Positions to Market Avg. 3.08% •Dispatch all Positions to Market Avg. 4.1% *Police, Fire, and Dispatch adjustments are in addition to step plan increases or top out lump sums. FY-25 10/1/24 •Fire FF & Driver Positions to Market Avg. 4.92% •PD Officer, Corporal, Detective to Market Avg. 3.5% •Dispatch Entry level Positions to Market Avg. 1.93% FY-27 10/1/26FY-26 10/1/25 •Fire all Positions to Adjacent Market Avg. 5.67% •PD all Positions to Adjacent Market Avg. 6.03% •Dispatch all Positions to Market Avg. 3.11% •As claims have leveled off consistent with the previous year, we are expecting a 1.2 months claims expense in Fund Balance with the increase in contribution rate. •This affects the FY 2026-27 Budget that we are diligently working with our consultant to maintain that Fund Balance until claims steady. •Staff has budgeted for an 18% increase to the Town’s premiums and will ask employees to pick up a 5 to 10% increase depending on their plan. •Plan structure changes will occur where required by law or acceptable changes proposed by the Health Consultants Health Fund Debt Service Fund •Add Series 2026 - $31.3 Million •Authority from the 2020 Bond Election •Approximately $12 Million remaining in the 2020 Authorization • The full $95.1 million available from the 2025 Bond Election •Decreases I&S Rate from 0.182946 to 0.174000 supplemented with interest earnings from the General Fund •35% I&S percentage of total Tax Rate (below 40%) •Outstanding Total Debt of $231,974,026 at end of FY26-27 •2.02% Outstanding Total Debt as a percentage of TAV (below 4%) •$4,700 Outstanding Total Debt per Capita (Projected) Debt Service Fund Outstanding Total Debt FY 2022-2023 FY 2023-2024 FY 2024-2025 FY 2025-2026 FY 2026-2027 % of TAV 2.96%2.23%2.23%1.95%2.02% Per Capita $5,528 $4,683 $5,033 $4,581 $4,700 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 0 1000 2000 3000 4000 5000 6000 FY 2022-2023 FY 2023-2024 FY 2024-2025 FY 2025-2026 FY 2026-2027 Historical Debt Metrics Debt per Capita % of TAV Linear (Debt per Capita) Governmental Capital Projects •$74.7 million Total in Projects •$60.6 million in Streets Projects •$6.8 million Available for Projects Awaiting Allocation •$8.0 million Anticipated for Projects Awaiting Allocation •$9.3 million in Parks Projects •$2.6 million Available •$1.8 million Anticipated •$4.8 million in Facility Projects •$219k Available Projects Awaiting Allocation will be funded as Impact Fees and other development fees are transferred and are received to allow Council to continue to Accelerate Infrastructure Delivery Multi-Year Capital Program/Debt Issuance Recently Approved Bonds Series 2026 Street and Transportation Projects ($7,717,843 Authorization Remaining of $150 million) •Coit Road (First – Frontier) – 4 lanes (Construction) $7,797,062 •Coleman (Gorgeous – Talon) – 4 Lanes (Construction) $15,500,000 •Frontier Parkway (Legacy – DNT) (Construction) $2,000,000 •Coleman (First – Gorgeous) (Land/Est) $1,000,000 •Teel Parkway (First – Freeman) (Construction) $500,000 •Legacy (Star Trail – Legacy MS) (Design/Land Est) $800,000 •Prosper Trail (Teel – Legacy) (Design/Land Est) $1,000,000 •Gorgeous (McKinley – Coleman) (Land/Est) $750,000 •Roundabout (La Cima/First St) (Design) $500,000 •Roundabout (Richland/Lakewood) (Design) $500,000 TOTAL $31,347,062 Parks and Recreation Projects ($3,270,000 Authorization Remaining of $30 million) • Frontier Park Improvements $1,000,000 Multi-Year Capital Program/Capital Dedicated Transfer to GF Construction Personnel •Transfer to GF CIP Personnel $1,200,000 Parks •Prairie Median Landscaping (W of Legacy to Mahard) $1,000,000 TOTAL $10,896,257 Facilities •Parks and Public Works Facility, Phase 1 $8,096,257 •Parks and Public Works Facility, FF&E $500,000 •Whitley Place / First St. Open Space $100,000 Pay -as-you-go Funding Historical Property Valuation Fiscal Year Valuation Excluding Freeze Growth New Property Growth from New Property Reappraisal Growth Growth from Reappraisal 2021-2022 5,437,210,564 18.2%469,526,490 10.2%366,487,773 8.0% 2022-2023 6,616,007,870 21.7%596,431,779 11.0%582,365,527 10.7% 2023-2024 8,335,296,679 26.0%876,474,004 13.3%842,814,805 12.7% 2024-2025 9,622,101,595 15.4%870,499,826 10.5%416,305,090 4.9% 2025-2026 10,806,491,907 12.3%758,780,238 7.9%425,610,074 4.4% 2026-2027 11,495,554,112 6.4%607,241,178 5.6%81,821,037 0.8% No-New-Revenue Tax Rate •The “No-New-Revenue" rate is the highest property tax rate a local government can adopt that generates the same amount of revenue as the previous year, despite changes in property values. •The calculation excludes impact from new property and property in a TIRZ. •Compares like property year over year. Voter-Approval Tax Rate •The “voter approval” rate is the maximum property tax rate increase, 3.5% on M&O plus calculated I&S Rate, that local taxing units can implement without voter approval. •Mandated to adopt the calculated I&S rate. Property Tax Rate Comparison 2026-2027 2025-2026 No-New-Revenue Tax Rate $0.500622 $0.482348 Voter -Approval Tax Rate $0.509936 $0.505000 Debt Rate (I&S Rate)$0.174000 $0.182946 Adopted Rate -$0.505 Proposed Rate $0.505 - Historical Property Tax Rate Tax Rate 2022- 2023 2023- 2024 2024- 2025 2025- 2026 2026- 2027 FY26 to FY27 Change General Fund 0.221830 0.230742 0.224608 0.224854 0.236213 0.011359 Capital Dedicated 0.108000 0.102000 0.100000 0.097200 0.094787 (0.002413) Debt Service 0.180170 0.177258 0.180392 0.182946 0.174000 (0.008946) Total 0.510000 0.510000 0.505000 0.505000 0.505000 - Benchmarking Proposed Fiscal Year Tax Rates Entity Homestead Exemption Rate General Fund Capital Dedicated I&S Total Tax Rate Equivalent Tax Rate for Homestead Freeze Anna 3.00%0.356071 -0.169002 0.525073 0.509320 No Celina None 0.264928 -0.311473 0.576401 0.576401 Yes Coppell 5.00%0.376998 -0.067978 0.444976 0.422727 No Flower Mound 20.00%0.323875 -0.063402 0.387277 0.309822 No Frisco 20.00%0.292775 -0.132742 0.425517 0.340414 Yes Keller 20.00%0.245020 -0.041980 0.287000 0.229600 Yes Little Elm None 0.441390 -0.108511 0.549901 0.549901 Yes McKinney None 0.276012 -0.136272 0.412284 0.412284 No Southlake 20%0.240000 -0.055000 0.295000 0.236000 Yes Average of Comparison 14.66%0.313008 -0.120707 0.433714 0.398497 - Prosper (FY2025-2026)17.50%0.224854 0.097200 0.182946 0.505000 0.416625 Yes Prosper (FY2026-2027)17.50%0.236213 0.094787 0.174000 0.505000 0.416625 Yes Prosper ISD 62% Town of Prosper 26% Collin County 8% Collin College 4% Prosper ISD 64% Town of Prosper 26% Denton County 10% Total Tax Rate Entity FY2025-2026 Adopted Tax Rate Prosper ISD 1.2141 Town of Prosper 0.505 Collin County 0.149343 Collin College 0.08122 TOTAL 1.949663 Entity FY2025-2026 Adopted Tax Rate Prosper ISD 1.2141 Town of Prosper 0.505 Denton County 0.185938 TOTAL 1.905038 Entity FY2025-2026 Adopted Tax Rate Denton ISD 1.1922 Town of Prosper 0.505 Denton County 0.185938 TOTAL 1.883138 Denton ISD 63% Town of Prosper 27% Denton County 10% Water and Wastewater Rates Utility Fund-Distribution and Collection Utility •Potable Water Supplier proposing over 13.1% increase in rates •Wastewater treatment supplier subscription decreased from 4 MGD to 3 MGD providing savings in debt needing to be issued •However, growth slowed in new accounts offsetting this savings. •Rate Consultant projecting need for multiple year rate increases including a blended 15.36% next year (13.95% water and 17.96% wastewater) consistent with previous year’s rate study. Proposed Rate Increase Source: NewGen Strategies and Solutions, LLC Rate Comparison *Other Entities listed show FY26 Rates and their FY27 proposals are not included. VERF Vehicle & Equipment Replacement Fund •Rolling of already ordered Fire Vehicles to current year’s budget as delivery is expected in FY 2026-2027 •Brush Truck •Ambulance •Added: •2 Police Patrol Cruisers •1 Water Utility Pickup Truck •1 Code Compliance Pickup Truck •1 Ambulance to be ordered in FY 2027 then received in FY 2028 •Retain Orders on several items with multi-year lead times with expected delivery in FY 2027-2028 or later: •PUC (Pierce Ultimate Configuration) Pumper Truck •100’ Aerial Bucket Truck Other Funds Solid Waste Fund •Created in 2023, the fund is self-supporting through rates. •Anticipated to meet $250k Fund Balance Requirement at end of FY2026-2027 Stormwater Drainage •Adding Street Sweeper Position •Transferring Mosquito Abatement Contract •Expanded Contracted Street Sweeping •Added Stormwater Drainage Master Plan Funding Hotel Occupancy Tax Fund: •Removed Tax Abatement Cost •Added Marketing Coordinator from General Fund Public Hearing Questions/Comments Agenda Item 17. Conduct a Public Hearing to consider and act upon an Ordinance adopting a tax rate of $0.505 per $100 valuation for fiscal year 2026- 2027. (CL) Public Hearing Questions/Comments Agenda Item 18. Ratifying the property tax increase in the budget for fiscal year (FY) 2026-2027. (CL) Agenda Item 19. Conduct a Public Hearing and consider and act upon a request for a rezoning from Agricultural to a Planned Development for a Data Center on a portion of Parvin 1385 Addition, Block A, Lot 2, on 37.3± acres, located 1,590± feet south of Parvin Road and 855± feet east of FM 1385. (ZONE-26-0007) (DH) This item has been withdrawn by the applicant. No action will be taken. Agenda Item 20. Conduct a Public Hearing and consider and act upon a request to amend the Future Land Use Plan from Medium Density Residential and Retail and Neighborhood Services to Business Park, on 37.3± acres, located 1,590± feet south of Parvin Road and 855± feet east of FM 1385. (COMP-26-0001) (DH) This item has been withdrawn by the applicant. No action will be taken. Agenda Item 21. Discuss and consider Town Council Subcommittee reports. (DFB) Possibly direct Town Staff to schedule topic(s) for discussion at a future meeting. Executive Session •Section 551.087 – To discuss and consider economic development incentives and all matters incident and related thereto. •Section 551.072 – To discuss and consider the purchase, exchange, lease, or value of real property for municipal purposes and all matters incident and related thereto. •Section 551.074 – To discuss and consider personnel matters and all matters incident and related thereto. •Section 551.074 - To discuss appointments to the Board of Adjustment/Construction Board of Appeals, Parks & Recreation Board, Library Board, Prosper Economic Development Corporation Board, Planning & Zoning Commission, Community Engagement Committee, Downtown Advisory Committee, TIRZ I, and TIRZ 2, and all matters incident and related thereto. Executive Session •Section 551.071 – Consultation with the Town Attorney regarding pending or anticipated litigation. •Section 551.071 – Consultation with the Town Attorney to discuss legal issues associated with any agenda item. The Town Council will reconvene after Executive Session. Reconvene into Regular Session and take any action necessary as a result of the Closed Session. Adjourn.