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06.18.2020 Town Council Minutes SpecialPISPER OWN OF Prosper is a place where everyone matters. Call to Order/ Roll Call. The meeting was called to order at 5:34 p.m. Council Members Present: Mayor Ray Smith Mayor Pro-Tem Curry Vogelsang, Jr. Deputy Mayor Pro-Tem Jason Dixon Councilmember Marcus E. Ray Councilmember Jeff Hodges Councilmember Meigs Miller Council Members Absent: Councilmember Craig Andres Minutes Special Meeting of the Prosper Town Council Council Chambers Prosper Town Hall 250 W. First Street, Prosper, Texas Thursday, June 18, 2020 Staff Members Present: Harlan Jefferson, Town Manager Melissa Lee, Town Secretary Robyn Battle, Executive Director of Community Services Chuck Springer, Executive Director of Administrative Services Betty Pamplin, Finance Director Rebecca Zook, Executive Director of Development & Infrastructure Services Hulon Webb, Engineering Services Director John Webb, Development Services Director Doug Kowalski, Police Chief Stuart Blasingame, Fire Chief Leigh Johnson, Director of Information Technology Dudley Raymond, Director of Parks and Recreation Leslie Scott, Director of Library Services AGENDA: 1. Budget Calendar and Strategies (BP) Betty Pamplin, Finance Director, began by reviewing the key budget calendar dates and discussed budget strategies for the current economic environment. 2. FY 2019-2020 Budget Highlights (BP) Director Pamplin provided FY 2019-2020 Budget Highlights that included no increase in the property tax rate, increased property valuations and new growth to the tax roll. FY 2019-2020 General Fund Budget highlights include an increased workforce from 183 to 199 full-time positions and funding of $1.25 million towards street construction projects. FY 2019-2020 Water -Sewer Fund Budget highlights include an increased Page 1 of 4 workforce from 40 to 47 full-time positions and the funding of $850,000 in various water capital projects. 3. FY 2020-2021 Budget Projections (BP) Director Pamplin continued with the various growth pressures that affect the Town. The preliminary estimate for the FY 2020-2021 General Fund total revenues is projected at $31,996,453. The 2020 preliminary property valuations were discussed with a final estimated value of $4,632,260,717 which is a 7.54% increase from last year. Director Pamplin reviewed Senate Bill 2, also known as Texas Property Tax Reform, which limits Texas governments' ability to raise maintenance and operations property tax revenues above 3.5% without voter approval. After the assessor submits the appraisal roll to the governing body, an officer or employee designated by the Town will calculate the no -new -revenue tax rate, and the voter -approval tax rate. The Town Council may direct the designated officer or employee to calculate the voter -approval tax rate in the manner provided for a special taxing unit (8%) if any part of the Town is located in an area declared a disaster area during the current tax year. An officer will be designated at the July 14, 2020, Town Council Meeting and a calculation rate will be determined at that time. The Town's Debt policy remains the same, targeting not to exceed 6% of taxable assessed value tax rolls. Regarding the Town's bond ratings, Moody's current rating on the 2019 GO Bonds and CO's are stable at Aa1. The S&P current rating on the 2019 GO Bonds and CO's is AA+. Sales tax projections were provided with a FY 2020-2021 current collections estimate at $5,584,361. Water & Sewer Fund revenue projections were provided with a FY 2020-2021 preliminary estimate of total revenues at $24,504,693. 4. Council Budget Priorities for FY 2020-2021 (BP) Director Pamplin asked for feedback from Council regarding priorities for FY 2020- 2021, Councilmember Ray responded public safety, infrastructure, and prudent spending on special projects. Mayor Pro-Tem Vogelsang responded personnel and public safety. Councilmember Ray requested an analysis of the Vehicle Equipment and Replacement Fund and a breakdown of professional consulting services. Councilmember Hodges requested to continue to be conservative and avoid unnecessary expenditures. Councilmember Miller stated infrastructure is a priority. Mayor Smith requested additional information on the use of surplus revenues. Mayor Pro-Tem Vogelsang requested additional information on infrastructure spending. 5. CIP Update (HW/DR) Hulon Webb, Engineering Services Director, presented information on Capital Improvement Projects with $189,024,041 in projects recently completed and under design. Notable projects include the southbound DNT frontage road, the DNT overpass at Hwy 380, and the lower pressure plane water line. There will be $717,721,866 in projects completed in the next 5 years. Major projects include the DNT expansion, Hwy 380 in Denton County expanded to six lanes and Custer Road. There will be $14,000,000 in projects with a completion of beyond 5 years. Page 2 of 4 Dudley Raymond, Director of Parks and Recreation, provided and overview of park projects with a total of $2,654,500. Notable projects include the Lakewood Preserve and Hays Park. 6. Strategic Planning Update (HJ) Harlan Jefferson, Town Manager, reviewed the Major Initiatives included in the Strategic Panning Update provided to Council on May 23, 2020. 7. CARES Act (RB) Robyn Battle, Executive Director of Community Services, discussed the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Passed by Congress on March 27th, 2020, it is a $2 trillion economic relief package due to COVID-19 that is intended to provide fast and direct economic assistance to workers, families, and small businesses. There is $150 billion allocated to the Coronavirus Relief Fund (CRF) for state, local, and tribal governments. Total Town of Prosper CARES Act allocations, from both Collin and Denton counties, total $1,344,150.23. Executive Director Battle provided a list of potential expenses determined by staff. Council discussed the list of potential expenses, Councilmember Ray had questions on the criteria for the priority ranking of the items. The Council concurred with the proposed Priority 1 projects, with the understanding that expenses over $50,000 would be brought back for Council consideration and approval. 8. Retention Pond Fountains (DR) Dudley Raymond, Director of Parks and Recreation, provided an overview of pond fountains and aerators. Benefits include increased pond health, a reduction of non - beneficial aquatic plant growth, and aesthetics. Director Raymond noted several disadvantages of pond fountains including operational and maintenance expenses, a limited amount of oxygenated water and increased evaporation. The advantages of pond aerators was discussed including reduced operational and maintenance costs, a higher level of oxygenated water and lower level of chemicals required to treat algae. Staff recommends the use of fountains where a visual effect is desired and the use of aerators in ponds to improve pond health. EXECUTIVE SESSION: Council did not recess into Executive Session. Adiourn. The meeting was adjourned at 7:59 p.m. on Tuesday, June 18, 2020. These minutes approved on the 14th day of July 2020. ATTEST: APPROVED: Ray Smith, Mayor Page 3 of 4 Melissa Lee, T wn Secretary Page 4 of 4