01.26.21 TIRZ 1&2 Meetings and Town Council Regular Meeting Packet
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Prosper is a place where everyone matters.
Notice Regarding Public Participation
Governor Greg Abbott has granted a temporary suspension of certain rules to allow for telephone
or videoconference public meetings in an effort to reduce in-person meetings that assemble large
groups of people, due to the COVID-19 public health emergency.
Individuals may attend the Prosper Town Council meeting in person, or access the meeting via
videoconference, or telephone conference call.
Join the Zoom Meeting by clicking on the following link:
https://us02web.zoom.us/j/87047432329
Enter Meeting ID: 87047432329
To request to speak, click on “Participants” at the bottom of the screen, and click “Raise Hand.”
The meeting moderator will acknowledge your request and allow you to speak.
To join the meeting by phone, dial (346) 248-7799
Enter Meeting ID: 87047432329
To request to speak, enter *9, and *6 to mute/unmute yourself. The meeting moderator will
acknowledge your request and allow you to speak.
If you encounter any problems joining or participating in the meeting, please call our help
line at 972-569-1191 for assistance.
MEETING OF THE TOWN OF PROSPER TAX INCREMENT REINVESTMENT ZONE (TIRZ)
NO. 1 BOARD OF DIRECTORS
TIME: 5:45 P.M.
Call to Order/ Roll Call.
Invocation, Pledge of Allegiance and Pledge to the Texas Flag.
1. Consider and act upon the minutes from the January 28, 2020, TIRZ No. 1 Board
Meeting. (ML)
2. Receive the 2020 Annual Report. (BP)
Adjourn.
MEETING OF THE TOWN OF PROSPER TAX INCREMENT REINVESTMENT ZONE (TIRZ)
NO. 2 BOARD OF DIRECTORS
Agenda
Prosper TIRZ No. 1 Board of Directors
Prosper TIRZ No. 2 Board of Directors
Prosper Town Council Meeting
Council Chambers
Prosper Town Hall
250 W. First Street, Prosper, Texas
Tuesday, January 26, 2021
5:45 PM
Page 1
Page 2 of 4
TIME: IMMEDIATELY FOLLOWING THE MEETING OF THE TIRZ NO. 1 BOARD OF
DIRECTORS
Call to Order/ Roll Call.
3. Consider and act upon the minutes from the January 28, 2020, TIRZ No. 2 Board
Meeting. (ML)
4. Receive the 2020 Annual Report. (BP)
Adjourn.
MEETING OF THE PROSPER TOWN COUNCIL
TIME: IMMEDIATELY FOLLOWING THE MEETING OF THE TIRZ NO. 2 BOARD OF
DIRECTORS
Call to Order/ Roll Call.
Announcements of recent and upcoming events.
Presentations.
5. Presentation and Annual Service Update by Community Waste Disposal. (CS)
CONSENT AGENDA:
Items placed on the Consent Agenda are considered routine in nature and non-controversial. The
Consent Agenda can be acted upon in one motion. Items may be removed from the Consent
Agenda by the request of Council Members or staff.
6. Consider and act upon the minutes from the December 16, 2020, Town Council Joint
Meeting. (ML)
7. Consider and act upon the minutes from the January 12, 2021, Town Council
Meeting. (ML)
8. Consider and act upon the 2021 Prosper Town Council Regular Meeting
Schedule. (ML)
9. Consider and act upon a resolution approving the Town of Prosper and Prosper
Economic Development Corporation (PEDC) 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 and
the PEDC. (BP)
10. Consider and act upon authorizing the Town Manager to execute a Professional
Engineering Services Agreement between Freese and Nichols, Inc., and the Town of
Prosper, Texas, for the America’s Water Infrastructure Act of 2018 Risk and Resilience
Assessment and Emergency Response Plan Project. (FJ)
11. Consider and act upon a resolution authorizing the Town to submit a grant application
to the Office of the Governor (OOG) for Prosper Police Department SWAT equipment
enhancement grant. (DK)
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12. Consider and act upon approving Change Order Number 01 for Bid 2020-81-B to
Accelerated Critical Path, Inc., related to construction services for the Prosper
Trail/DNT Intersection Improvements project; and authorizing the Town Manager to
execute Change Order Number 01 for same. (HW)
13. Consider and act upon authorizing the Town Manager to execute Amendment
Fourteen to the Interlocal Agreement between Collin County and the Town of Prosper,
extending the agreement through FY 2020-2021, relating to Animal Control
Services. (AG)
14. Consider and act upon authorizing the Town Manager to execute Amendment
Fourteen to the Interlocal Agreement between Collin County and the Town of Prosper
for Animal Shelter Services. (AG)
15. Consider and act upon whether to direct staff to submit a written notice of appeal on
behalf of the Town Council to the Development Services Department, pursuant to
Chapter 4, Section 1.5(C)(7) and 1.6(B)(7) of the Town’s Zoning Ordinance, regarding
action taken by the Planning & Zoning Commission on any Site Plan or Preliminary
Site Plan. (AG)
CITIZEN COMMENTS:
The public is invited to address the Council on any topic. However, the Council is unable to
discuss or take action on any topic not listed on this agenda. Please complete a “Public Meeting
Appearance Card” and present it to the Town Secretary prior to the meeting, or request to address
the Council via videoconference or telephone.
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.
For individuals wishing to speak on a non-public hearing item, they may either address the
Council during the Citizen Comments portion of the meeting or when the item is considered by
the Town Council.
Items for Individual Consideration:
16. Conduct a Public Hearing, and consider and act upon a request to rezone 58.1± acres,
from Planned Development-86 (PD-86) to Planned Development (PD), to allow for a
Funeral Home with Crematorium and Cemetery, located on the west side of Custer
Road, north of US 380. (Z20-0020). (AG)
17. Conduct a Public Hearing, and consider and act upon a request to rezone 55.8± acres,
located on the west side of Good Hope Road, south of Parvin Road, from Agricultural
(A) to Planned Development-40 (PD-40), generally to incorporate tracts of land into
the Windsong Ranch development. (Z20-0023). (AG)
EXECUTIVE SESSION:
Recess into Closed Session in compliance with Section 551.001 et seq. Texas Government Code,
as authorized by the Texas Open Meetings Act, to deliberate regarding:
Section 551.087 – To discuss and consider economic development incentives.
Section 551.072 – To discuss and consider purchase, exchange, lease or value of real
property for municipal purposes and all matters incident and related thereto.
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Section 551.074 - To discuss and consider personnel matters and all matters
incident and related thereto.
Section 551.074 - To discuss and review the Town Manager's performance
evaluation.
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, and Planning & Zoning Commission.
Reconvene in Regular Session and take any action necessary as a result of the Closed
Session.
Possibly direct Town staff to schedule topic(s) for discussion at a future meeting.
Adjourn.
CERTIFICATION
I, the undersigned authority, do hereby certify that this Notice of Meeting was posted at Prosper
Town Hall, located at 250 W. First Street, Prosper, Texas 75078, a place convenient and readily
accessible to the general public at all times, and said Notice was posted by 5:00 p.m., on Friday,
January 22, 2021, and remained so posted at least 72 hours before said meeting was convened.
_______________________________ _________________________
Melissa Lee, Town Secretary Date Notice Removed
Pursuant to Section 551.071 of the Texas Government Code, the Town Council reserves the right to consult
in closed session with its attorney and to receive legal advice regarding any item listed on this agenda.
NOTICE
Pursuant to Town of Prosper Ordinance No. 13-63, all speakers other than Town of Prosper staff are limited
to three (3) minutes per person, per item, which may be extended for an additional two (2) minutes with
approval of a majority vote of the Town Council.
NOTICE OF ASSISTANCE AT PUBLIC MEETINGS: The Prosper Town Council meetings are wheelchair
accessible. For special services or assistance, please contact the Town Secretary’s Office at (972) 569 -
1011 at least 48 hours prior to the meeting time.
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Prosper is a place where everyone matters.
MEETING OF THE TOWN OF PROSPER TAX INCREMENT REINVESTMENT ZONE (TIRZ)
NO. 1 BOARD OF DIRECTORS
Call to Order/ Roll Call.
The meeting was called to order at 5:47 p.m.
Board Members Present:
Mayor Ray Smith
Mayor Pro-Tem Curry Vogelsang, Jr.
Councilmember Marcus E. Ray
Councilmember Craig Andres
Councilmember Meigs Miller
Councilmember Jeff Hodges
Commissioner Susan Fletcher, Collin County Commissioners Court
David Bristol, Prosper Economic Development Corporation
Council Members Absent:
Deputy Mayor Pro-Tem Jason Dixon
Staff Members Present:
Harlan Jefferson, Town Manager
Terry Welch, Town Attorney
Robyn Battle, Town Secretary/Public Information Officer
Chuck Springer, Executive Director of Administrative Services
Betty Pamplin, Finance Director
January Cook, Purchasing Manager
Hulon Webb, Engineering Services Director
Pete Anaya, Assistant Director of Engineering Services – Capital Projects
John Webb, Development Services Director
Alex Glushko, Planning Manager
Doug Kowalski, Police Chief
Scott Brewer, Assistant Police Chief
Stuart Blasingame, Fire Chief
Invocation, Pledge of Allegiance and Pledge to the Texas Flag.
Carl Rau, retired Chaplin with the United States Army, led the invocation. The Pledge of
Allegiance and the Pledge to the Texas Flag were recited.
1. Consider and act upon the minutes from the January 22, 2019, TIRZ No. 1 Board
Meeting. (RB)
Minutes
Town of Prosper TIRZ No. 1
Board of Directors Meeting
Council Chambers
Prosper Town Hall
250 W. First Street, Prosper, Texas
Tuesday, January 28, 2020
Page 5
Item 1.
Page 2 of 2
Commissioner Fletcher made a motion and Mayor Pro-Tem Vogelsang seconded the
motion to approve the minutes from the January 22, 2019, TIRZ No. 1 Board Meeting.
The motion was approved by a vote of 8-0.
2. Receive the 2019 Annual Report. (BP)
Hulon Webb, Director of Engineering, presented this item before the Board. Mr. Webb
reviewed the businesses within the TIRZ that have received Certificates of Occupancy
during the reporting period. The Town received reimbursement request No. 5 on June
1, 2019, in the amount of approximately $3.1 million. Approximately $15 million has
been billed to date. Finance Director Betty Pamplin continued the presentation. TIRZ
No. 1 received $1.4 million in revenue during the reporting period through property tax,
sales tax, impact fees, and interest. After expenses, the ending balance on September
30, 2019, for TIRZ No. 1 was $256,466. Ms. Pamplin reviewed the rollback tax
revenue for each taxing entity in the TIRZ, and the appraised value.
Mayor Pro-Tem Vogelsang made a motion and Commissioner Fletcher seconded the
motion to approve the 2019 Annual Report as presented. The motion was approved
by a vote of 8-0.
Adjourn.
The meeting was adjourned at 5:58 p.m. on Tuesday, January 28, 2020.
These minutes approved on the 26th day of January 2021.
APPROVED:
Ray Smith, Mayor
ATTEST:
Melissa Lee, Town Secretary
Page 6
Item 1.
Town of Prosper, Texas
Tax Increment Reinvestment Zone #1
As of September 30, 2020
Prosper TIRZ #1 Annual Report 2020
‐1‐
Town of Prosper, Texas
Tax Increment Reinvestment Zone #1
(TIRZ #1)
ANNUAL REPORT
2020
Page 7
Item 2.
Town of Prosper, Texas
Tax Increment Reinvestment Zone #1
As of September 30, 2020
Prosper TIRZ #1 Annual Report 2020
-2-
INDEX
1) Cover
2) Index
3) Year End Summary of Meetings/Town Council/Board Actions
4) Public Infrastructure/Building Projects
5) Capital Improvement Plan Budget
6) Annual Report
7) TIRZ Fund Financial Statement
8) Revenue & Expenditures
a) TIRZ Rollback Tax Map
b) Rollback Tax Revenue
c) Property Tax Revenue
d) Impact Fee Revenue
e) Payment Summaries
Page 8
Item 2.
Town of Prosper, Texas
Tax Increment Reinvestment Zone #1
As of September 30, 2020
Prosper TIRZ #1 Annual Report 2020
-3-
YEAR END SUMMARY OF MEETINGS/TOWN COUNCIL/BOARD ACTIONS
In December 2015, the Town of Prosper Town Council appointed members for the first Tax Increment
Reinvestment Zone #1 (TIRZ #1) Board of Directors. In the latter part of 2015 Blue Star Land commenced
construction on its Gates of Prosper development at the northeast corner of US 380 and Preston Road
with the installation of a large sanitary sewer line from the west, thus marking the first improvements
made to the TIRZ #1 site. The first annual TIRZ Board of Directors meeting was held on January 26, 2016.
The second annual TIRZ Board of Directors meeting was held on April 11, 2017. The third annual TIRZ
Board of Directors meeting was held on January 23, 2018. The fourth annual TIRZ Board of Directors
meeting was held on January 22, 2019. The fifth annual TIRZ Board of Directors meeting was held on
January 28, 2020. This is the sixth year that the board has reviewed the annual report.
Board members appointed and currently serving are: Town—Mayor Ray Smith, Mayor Pro‐Tem Jason
Dixon, Deputy Mayor Pro‐Tem Craig Andres, and Councilmembers Marcus E. Ray, Amy Bartley, Meigs
Miller, and Jeff Hodges. Collin County – County Commissioner Susan Fletcher. Prosper Economic
Development Corporation – Vice President David Bristol.
During this reporting period, the following buildings received Certificate of Occupancy:
Business Name Address Area CO Issued Date
JAMES AVERY 1141 S PRESTON ROAD, SUITE 30 2,887 3/19/2020
GATES OF PROSPER, PHASE 2 - BUILDING B 930, 940, 950, 960, 970, & 980 S PRESTON ROAD 71,356 6/25/2020
GATES OF PROSPER, PHASE 2 - BUILDING D 1070 S PRESTON ROAD 17,376 6/25/2020
GATES OF PROSPER, PHASE 2 - BUILDING E 1100 S PRESTON ROAD 7,752 6/25/2020
GATES OF PROSPER, PHASE 2 - BUILDING F 1110 S PRESTON ROAD 7,752 6/25/2020
GATES OF PROSPER, PHASE 2 - BUILDING C 900 S PRESTON ROAD 17,595 6/25/2020
KOHL'S - SHELL BUILDING 920 S PRESTON ROAD 55,222 6/25/2020
GATES OF PROSPER, PHASE 2 - BUILDING I 880 S PRESTON ROAD 8,069 6/25/2020
GATES OF PROSPER, PHASE 2 - BUILDING A 1000 S PRESTON ROAD 34,600 9/29/2020
PROSPER POLICE STATION AND DISPATCH 801 SAFETY WAY 23,159 6/29/2020
Page 9
Item 2.
Town of Prosper, Texas Tax Increment Reinvestment Zone #1 As of September 30, 2020 Prosper TIRZ #1 Annual Report 2020 ‐4‐ Page 10Item 2.
Town of Prosper, Texas Tax Increment Reinvestment Zone #1 As of September 30, 2020 Prosper TIRZ #1 Annual Report 2020 -5- PUBLIC INFRASTRUCTURE / BUILDING PROJECTS Page 11Item 2.
Town of Prosper, Texas Tax Increment Reinvestment Zone #1 As of September 30, 2020 Prosper TIRZ #1 Annual Report 2020 -6- Page 12Item 2.
Town of Prosper, Texas Tax Increment Reinvestment Zone #1 As of September 30, 2020 Prosper TIRZ #1 Annual Report 2020 -7- THOROUGHFARE PLAN Page 13Item 2.
Town of Prosper, Texas Tax Increment Reinvestment Zone #1 As of September 30, 2020 Prosper TIRZ #1 Annual Report 2020 -8- WASTEWATER PLAN Page 14Item 2.
Town of Prosper, Texas Tax Increment Reinvestment Zone #1 As of September 30, 2020 Prosper TIRZ #1 Annual Report 2020 -9- OFF-SITE WASTEWATER PLAN Page 15Item 2.
Town of Prosper, Texas Tax Increment Reinvestment Zone #1 As of September 30, 2020 Prosper TIRZ #1 Annual Report 2020 -10- WATER PLAN Page 16Item 2.
Town of Prosper, Texas Tax Increment Reinvestment Zone #1 As of September 30, 2020 Prosper TIRZ #1 Annual Report 2020 -11- DRAINAGE PLAN Page 17Item 2.
Town of Prosper, Texas Tax Increment Reinvestment Zone #1 As of September 30, 2020 Prosper TIRZ #1 Annual Report 2020 -12- ELECTRIC DUCT BANK PLAN Page 18Item 2.
Town of Prosper, Texas Tax Increment Reinvestment Zone #1 As of September 30, 2020 Prosper TIRZ #1 Annual Report 2020 -13- MISC. IMPROVEMENTS PLAN Page 19Item 2.
Town of Prosper, Texas Tax Increment Reinvestment Zone #1 As of September 30, 2020 Prosper TIRZ #1 Annual Report 2020 -14- PHASING EXHIBIT Page 20Item 2.
Town of Prosper, Texas
Tax Increment Reinvestment Zone #1
As of September 30, 2020
Prosper TIRZ #1 Annual Report 2020
‐15‐
PUBLIC INFRASTRUCTURE/BUILDING PROJECTS
Page 21
Item 2.
Town of Prosper, Texas
Tax Increment Reinvestment Zone #1
As of September 30, 2020
Prosper TIRZ #1 Annual Report 2020
-16-
Page 22
Item 2.
Town of Prosper, Texas
Tax Increment Reinvestment Zone #1
As of September 30, 2020
Prosper TIRZ #1 Annual Report 2020
-17-
Page 23
Item 2.
Town of Prosper, Texas
Tax Increment Reinvestment Zone #1
As of September 30, 2020
Prosper TIRZ #1 Annual Report 2020
-18-
Page 24
Item 2.
Town of Prosper, Texas
Tax Increment Reinvestment Zone #1
As of September 30, 2020
Prosper TIRZ #1 Annual Report 2020
-19-
Page 25
Item 2.
Town of Prosper, Texas
Tax Increment Reinvestment Zone #1
As of September 30, 2020
Prosper TIRZ #1 Annual Report 2020
-20-
Page 26
Item 2.
Town of Prosper, Texas
Tax Increment Reinvestment Zone #1
As of September 30, 2020
Prosper TIRZ #1 Annual Report 2020
-21-
CAPITAL IMPROVEMENT PLAN BUDGET
Reimbursement Request No. 6 - June 22, 2020
Payee Project Purpose Amount
Durable Specialties, Inc. Gates Phase 1 Traffic Signal at Preston and Richland 14,367.44
Durable Specialties, Inc. Gates Phase 1 Traffic Signal at Lovers and Hwy 380 122,305.50
Durable Specialties, Inc. Gates Phase 1 Traffic Signal at Lovers and Hwy 380 2,305.97
Durable Specialties, Inc. Gates Phase 1 Traffic Signal at Preston and Richland 3,328.80
Total Gates Phase I $142,307.71
Rone Engineering Gates Phase II Testing - Detention pond, Richland, Lovers, Coleman 4,725.20
Rone Engineering Gates Phase II Testing - Detention pond, Richland, Lovers, Coleman 7,307.07
Rone Engineering Gates Phase II Testing - Detention pond, Richland, Lovers, Coleman 4,178.08
Rone Engineering Gates Phase II Testing - Detention pond, Richland, Lovers, Coleman 2,757.80
Rone Engineering Gates Phase II Testing - Detention pond, Richland, Lovers, Coleman 1,011.75
Rone Engineering Gates Phase II Testing - Detention pond, Richland, Lovers, Coleman 203.20
Rone Engineering Gates Phase II Testing - Detention pond, Richland, Lovers, Coleman 1,593.05
Rone Engineering Gates Phase II Testing - Detention pond, Richland, Lovers, Coleman 4,310.85
Rone Engineering Gates Phase II Testing - Detention pond, Richland, Lovers, Coleman 1,452.25
Rone Engineering Gates Phase II Testing - Detention pond, Richland, Lovers, Coleman 2,280.82
Rone Engineering Gates Phase II Testing - Detention pond, Richland, Lovers, Coleman 1,623.55
Mario Sinacola & Sons Excav. Gates Phase II Detention pond, Richland, Lovers, Coleman 35,627.40
Mario Sinacola & Sons Excav. Gates Phase II Public Grading 32,220.00
Mario Sinacola & Sons Excav. Gates Phase II Detention pond, Richland, Lovers, Coleman 560,795.49
Mario Sinacola & Sons Excav. Gates Phase II Detention pond, Richland, Lovers, Coleman 289,104.89
Mario Sinacola & Sons Excav. Gates Phase II Detention pond, Richland, Lovers, Coleman 147,144.60
Mario Sinacola & Sons Excav. Gates Phase II Detention pond, Richland, Lovers, Coleman 354,625.65
Mario Sinacola & Sons Excav. Gates Phase II Detention pond, Richland, Lovers, Coleman 153,266.71
Mario Sinacola & Sons Excav. Gates Phase II Detention pond, Richland, Lovers, Coleman 275,686.17
Mario Sinacola & Sons Excav. Gates Phase II Detention pond, Richland, Lovers, Coleman 220,733.88
Mario Sinacola & Sons Excav. Gates Phase II Detention pond, Richland, Lovers, Coleman 129,224.70
Mario Sinacola & Sons Excav. Gates Phase II Detention pond, Richland, Lovers, Coleman 3,434,994.80
Mario Sinacola & Sons Excav. Gates Phase II Detention pond, Richland, Lovers, Coleman 449,128.65
Mario Sinacola & Sons Excav. Gates Phase II Detention pond, Richland, Lovers, Coleman 168,796.71
SMR(Offsite Landscape Dsgn) Gates Phase II Median Landscape Design 9,200.00
White Construction Inc. (ATT) Gates Phase II ATT relo Infrastructure 112,700
Atmos/Utilitex Gates Phase II Franchise gas Infrastructure and relo 45,716.50
Atmos/Mission Gates Phase II Franchise gas Infrastructure and relo 45,908.73
Atmos/MIsson Gates Phase II Franchise gas Infrastructure and relo 32,109.45
Superscapes-Median Landsc. Gates Phase II Town Requirement 6,044.89
HLM Construction Mgmt. LLC. Gates Phase II TIRZ Infrastructure construction mgmt. services 55,865.00
HLM Construction Mgmt. LLC Gates Phase II TIRZ Infrastructure construction mgmt. services 87,726.00
HLM Construction Mgmt. LLC Gates Phase II TIRZ Infrastructure construction mgmt. services 79,939.00
Total Gates Phase 2 $7,064,255.55
Interest 3.5% $373,827.14
Total Due Reimbursement #6 $7,580,390.40
Reimbursement No. 1 FY15 4,110,750.63
Reimbursement No. 2 FY16 2,867,876.09
Reimbursement No. 3 FY17 2,118,275.54
Reimbursement No. 4 FY18 2,809,767.19
Reimbursement No. 5 FY19 3,125,024.60
Total Billed To Date $22,612,084.45
Page 27
Item 2.
Town of Prosper, Texas
Tax Increment Reinvestment Zone #1
As of September 30, 2020
Prosper TIRZ #1 Annual Report 2020
-22-
ANNUAL FINANCIAL REPORT
Chapter 311.016 of V.C.T.A. requires the following information as part of the annual report on the status of the TIRZ
District. Information is contained in detail on the financial statement.
1. Amount and source of revenue in the tax increment fund established for the zone:
$ 3,147,962 Total Revenue
2. Amount and purpose of expenditures from the fund:
$ 3,125,728 Total Expenditures
3. Amount of Principal and Interest due on outstanding indebtedness is as follows:
A. Contributions /Advances from developers— $14,951,090.37
B. Bonds issued and payment schedule to retire bonds— none
4. Tax Increment base and current captured appraised value retained by the zone:
A. Tax Increment base and current captured appraised value retained for Tax Year 2019:
Taxing
Jurisdiction
Net Taxable Value
Tax Year
2019
Base Year*
Value (with AG)
Jan. 1, 2008
Captured App. Value
Fiscal Year
2019-2020
Town of Prosper $110,997,781 $4,507,850 $106,489,931
Collin County $110,997,781 $4,507,850 $106,489,931
B. Tax Increment base and expected captured appraised value for Tax Year 2020:
Taxing
Jurisdiction
Net Taxable Value
Tax Year
2020
Base Year*
Value (with AG)
Jan. 1, 2008
Captured App. Value
Fiscal Year
2020-2021
Town of Prosper $156,835,545 $4,507,850 $152,327,695
Collin County $156,835,545 $4,507,850 $152,327,695
* Base Year Value as of January 1, 2008, is for Fiscal Year 2007-2008.
5. Captured appraised value by the municipality and other taxing units, the total amount of the tax increment
received, and any additional information necessary to demonstrate compliance with the tax increment-
financing plan adopted by the governing body of the municipality.
A. Captured appraised value shared by the municipality and other participating taxing jurisdictions received in
Fiscal Year 2019-2020:
Taxing
Jurisdiction
Participation
Per $100/Value
Amount of
Fiscal Year
2019-2020
Increment
Town of Prosper (70%) $ 0.520000 $ 386,349
Collin County (50%) $ 0.174951 $ 92,846
Total $ 0.694951 $ 479,195
B. Amount of tax increment received in 2020 from the municipality and the other taxing jurisdictions based on
2019 valuations: $ 479,195.
Page 28
Item 2.
Town of Prosper, Texas
Tax Increment Reinvestment Zone #1
As of September 30, 2020
Prosper TIRZ #1 Annual Report 2020
-23-
ANNUAL FINANCIAL REPORT
C. Expected appraised value shared by the municipality and other participating taxing jurisdictions to be received
in Fiscal Year 2020-2021:
Taxing
Jurisdiction
Participation
Per $100/Value
Amount of
Fiscal Year
2020-2021
Increment
Town of Prosper (70%) $ 0.520000 $ 554,473
Collin County (50%) $ 0.172531 $ 131,406
Total $ 0.692531 $ 685,879
D. Other information: None
Page 29
Item 2.
Town of Prosper, Texas
Tax Increment Reinvestment Zone #1
As of September 30, 2020
Prosper TIRZ #1 Annual Report 2020
-24-
TIRZ FUND FINANCIAL STATEMENT
Page 30
Item 2.
Town of Prosper, Texas
Tax Increment Reinvestment Zone #1
As of September 30, 2020
Prosper TIRZ #1 Annual Report 2020
-25-
Page 31
Item 2.
Town of Prosper, Texas
Tax Increment Reinvestment Zone #1
As of September 30, 2020
Prosper TIRZ #1 Annual Report 2020
‐26‐
TIRZ #1 STATUS
Page 32
Item 2.
Town of Prosper, Texas
Tax Increment Reinvestment Zone #1
As of September 30, 2020
Prosper TIRZ #1 Annual Report 2020
-27-
REVENUES & EXPENDITURES
ROLLBACK TAX REVENUE
Collected in Fiscal Year 2017
Page 33
Item 2.
Town of Prosper, Texas
Tax Increment Reinvestment Zone #1
As of September 30, 2020
Prosper TIRZ #1 Annual Report 2020
-28-
REVENUES & EXPENDITURES
ROLLBACK TAX REVENUE
Collected in Fiscal Year 2019
Collin County Collin College Prosper ISDTown of Prosper Total
2013 3,797.76 1,337.50 26,704.27 8,315.10 40,154.63
2014 3,563.16 1,242.71 25,321.12 7,884.42 38,011.41
2015 4,147.60 1,510.83 30,784.42 9,585.57 46,028.42
2016 3,618.79 1,410.42 28,999.65 9,029.84 43,058.70
2017 3,481.92 1,445.51 30,246.73 9,418.14 44,592.30
TOTAL BY
ENTITY 18,609.23 6,946.97 142,056.19 44,233.07 211,845.46
Page 34
Item 2.
Town of Prosper, Texas
Tax Increment Reinvestment Zone #1
As of September 30, 2020
Prosper TIRZ #1 Annual Report 2020
-29-
REVENUES & EXPENDITURES
ROLLBACK TAX REVENUE
Collected in Fiscal Year 2020
Collin County Collin College Prosper ISD Town of Prosper Total
2014 2,321.47 809.65 16,497.27 5,136.88 24,765.27
2015 2,102.91 766.02 15,608.31 4,860.08 23,337.32
2016 2,204.35 859.15 17,664.79 5,500.41 26,228.70
2017 2,548.35 1,057.94 22,137.02 6,892.96 32,636.27
2018 2,242.24 1,007.38 20,712.67 6,449.45 30,411.74
TOTAL BY
ENTITY 11,419.32 4,500.14 92,620.06 28,839.78 137,379.30
Page 35
Item 2.
Town of Prosper, Texas
Tax Increment Reinvestment Zone #1
As of September 30, 2020
Prosper TIRZ #1 Annual Report 2020
-30-
REVENUES & EXPENDITURES
PROPERTY TAX REVENUE
Property Taxes (Town)‐70%
Date Appraised Value Less Base Value Tax Rate Amount TIRZ Total
2/13/2020 110,647,781 4,507,850 0.520000 551,928 386,349
*Prosper ISD tax revenue is not remitted to TIRZ—information only
Property Taxes (County)‐50%
Date Appraised Value Less Base Value Tax Rate Amount TIRZ Total
2/13/2020 110,647,781 4,507,850 0.174951 185,693 92,846
Prosper ISD
Date Appraised Value Tax Rate Total
2/13/2020 110,647,781 1.568350 1,735,344
Page 36
Item 2.
Town of Prosper, Texas
Tax Increment Reinvestment Zone #1
As of September 30, 2020
Prosper TIRZ #1 Annual Report 2020
-31-
REVENUES & EXPENDITURES
Project Permit Number Site Address Amount Paid Date
GATES OF PROSPER, PHASE 2 - BUILDING B SH19-0019 930, 940, 950, 960, 970, & 980 S PRESTON ROAD $268,441.27 10/17/2019
GATES OF PROSPER, PHASE 2 - BUILDING C SH19-0020 900 S PRESTON RO AD $66,192.39 10/17/2019
GATES OF PROSPER, PHASE 2 - BUILDING E SH19-0022 1100 S PRESTON ROAD $29,163.02 10/31/2019
GATES OF PROSPER, PHASE 2 - BUILDING F SH19-0023 1110 S PRESTON ROAD $29,163.02 10/31/2019
GATES OF PROSPER, PHASE 2 - BUILDING G SH19-0024 1140 S PRESTON ROAD $28,824.44 10/31/2019
GATES OF PROSPER, PHASE 2 - BUILDING H SH19-0025 1150 S PRESTON ROAD $28,824.44 10/31/2019
GATES OF PROSPER, PHASE 2 - BUILDING D SH19-0021 1070 S PRESTON ROAD $65,368.51 11/19/2019
JAMES AVERY FO19-0040 1141 S PRESTON ROAD, SUITE 30 $0.00 12/12/2019
KOHL'S SH19-0026 920 S PRESTON ROAD $207,745.16 12/20/2019
GATES OF PROSPER, PHASE 2 - BUILDING I SH19-0030 880 S PRESTON RO AD $36,837.36 2/7/2020
GATES OF PROSPER, PHASE 2 - BUILDING A SH19-0027 1000 S PRESTON ROAD $130,165.20 2/25/2020
FIRST WATCH RESTAURANT FO20-0001 1111 S PRESTON ROAD, SUITE 10 $2,418.00 3/16/2020
HOBBY LOBBY COM19-0042 1050 S PRESTON ROAD $206,910.00 7/21/2020
TIFFS TREATS FO20-0019 1070 S PRESTON ROAD, SUITE 10 $0.00 8/19/2020
T-MOBILE FO20-0020 880 S PRESTON ROAD, SUITE 40 $0.00 9/16/2020
GATES OF PROSPER, PHASE 2 - BUILDING L SH20-0011 820 S PRESTON RO AD $65,996.27 9/18/2020
GATES OF PROSPER FOUNTAIN COM20-0033 1100 S PRESTON ROAD $0.00 9/30/2020
Total $1,166,049.08
Project Permit Number Site Address Amount Paid Date
GATES OF PROSPER, PHASE 2 - BUILDING B SH19-0019 930, 940, 950, 960, 970, & 980 S PRESTON ROAD $95,515.00 10/17/2019
GATES OF PROSPER, PHASE 2 - BUILDING C SH19-0020 900 S PRESTON RO AD $49,667.00 10/17/2019
GATES OF PROSPER, PHASE 2 - BUILDING E SH19-0022 1100 S PRESTON ROAD $12,226.00 10/31/2019
GATES OF PROSPER, PHASE 2 - BUILDING F SH19-0023 1110 S PRESTON ROAD $12,226.00 10/31/2019
GATES OF PROSPER, PHASE 2 - BUILDING G SH19-0024 1140 S PRESTON ROAD $27,508.00 10/31/2019
GATES OF PROSPER, PHASE 2 - BUILDING H SH19-0025 1150 S PRESTON ROAD $12,226.00 10/31/2019
GATES OF PROSPER, PHASE 2 - BUILDING D SH19-0021 1070 S PRESTON ROAD $12,226.00 11/19/2019
JAMES AVERY FO19-0040 1141 S PRESTON ROAD, SUITE 30 $0.00 12/12/2019
KOHL'S SH19-0026 920 S PRESTON ROAD $12,226.00 12/20/2019
GATES OF PROSPER, PHASE 2 - BUILDING I SH19-0030 880 S PRESTON RO AD $27,508.00 2/7/2020
GATES OF PROSPER, PHASE 2 - BUILDING A SH19-0027 1000 S PRESTON ROAD $24,452.00 2/25/2020
FIRST WATCH RESTAURANT FO20-0001 1111 S PRESTON ROAD, SUITE 10 $0.00 3/16/2020
HOBBY LOBBY COM19-0042 1050 S PRESTON ROAD $12,226.00 7/21/2020
TIFFS TREATS FO20-0019 1070 S PRESTON ROAD, SUITE 10 $0.00 8/19/2020
T-MOBILE FO20-0020 880 S PRESTON ROAD, SUITE 40 $0.00 9/16/2020
GATES OF PROSPER, PHASE 2 - BUILDING L SH20-0011 820 S PRESTON RO AD $24,452.00 9/18/2020
GATES OF PROSPER FOUNTAIN COM20-0033 1100 S PRESTON ROAD $0.00 9/30/2020
Total $322,458.00
Project Permit Number Site Address Amount Paid Date
GATES OF PROSPER, PHASE 2 - BUILDING B SH19-0019 930, 940, 950, 960, 970, & 980 S PRESTON ROAD $70,548.00 10/17/2019
GATES OF PROSPER, PHASE 2 - BUILDING C SH19-0020 900 S PRESTON RO AD $25,398.00 10/17/2019
GATES OF PROSPER, PHASE 2 - BUILDING E SH19-0022 1100 S PRESTON ROAD $9,030.00 10/31/2019
GATES OF PROSPER, PHASE 2 - BUILDING F SH19-0023 1110 S PRESTON ROAD $9,030.00 10/31/2019
GATES OF PROSPER, PHASE 2 - BUILDING G SH19-0024 1140 S PRESTON ROAD $9,030.00 10/31/2019
GATES OF PROSPER, PHASE 2 - BUILDING H SH19-0025 1150 S PRESTON ROAD $9,030.00 10/31/2019
GATES OF PROSPER, PHASE 2 - BUILDING D SH19-0021 1070 S PRESTON ROAD $9,030.00 11/19/2019
JAMES AVERY FO19-0040 1141 S PRESTON ROAD, SUITE 30 $0.00 12/12/2019
KOHL'S SH19-0026 920 S PRESTON ROAD $9,030.00 12/20/2019
GATES OF PROSPER, PHASE 2 - BUILDING I SH19-0030 880 S PRESTON RO AD $9,030.00 2/7/2020
GATES OF PROSPER, PHASE 2 - BUILDING A SH19-0027 1000 S PRESTON ROAD $18,060.00 2/25/2020
FIRST WATCH RESTAURANT FO20-0001 1111 S PRESTON ROAD, SUITE 10 $0.00 3/16/2020
HOBBY LOBBY COM19-0042 1050 S PRESTON ROAD $9,030.00 7/21/2020
TIFFS TREATS FO20-0019 1070 S PRESTON ROAD, SUITE 10 $0.00 8/19/2020
T-MOBILE FO20-0020 880 S PRESTON ROAD, SUITE 40 $0.00 9/16/2020
GATES OF PROSPER, PHASE 2 - BUILDING L SH20-0011 820 S PRESTON RO AD $9,030.00 9/18/2020
GATES OF PROSPER FOUNTAIN COM20-0033 1100 S PRESTON ROAD $0.00 9/30/2020
Total $195,276.00
Grand Total $1,683,783.08
THOROUGHFARE IMPACT FEES
WATER IMPACT FEES
WASTEWATER IMPACT FEES
Page 37
Item 2.
Town of Prosper, Texas
Tax Increment Reinvestment Zone #1
As of September 30, 2020
Prosper TIRZ #1 Annual Report 2020
-32-
REVENUES & EXPENDITURES
PAYMENT SUMMARIES
By Project:
By Payment Request:
By Payments Made:
TIRZ 1 Totals MDB Sewer
Richland &
Lovers Gates Phase 1 Gates Phase 2 Lovers Lane
SH289 Median
Openings Interest Construction
Total Totals
Amount 5,802,881.59 371,316.79 5,022,242.02 9,725,280.16 3,355.75 335,233.80 1,351,774.34 21,260,310.11 22,612,084.45
Paid 735,203.43 371,316.79 4,855,109.97 9,000.00 3,355.75 335,233.80 1,351,774.34 6,309,219.74 7,660,994.08
Remaining 5,067,678.16 ‐ 167,132.05 9,716,280.16 ‐ ‐ ‐ 14,951,090.37 14,951,090.37
MDB Sewer Richland &
Lovers Gates Phase 1 Gates Phase 2 Lovers Lane
SH289 Median
Openings Interest
Amount 3,636,320.41 139,196.42 ‐ ‐ ‐ 335,233.80 ‐ 4,110,750.63
Reimbursement #1 Totals Paid 735,203.43 139,196.42 ‐ ‐ ‐ 335,233.80 ‐ 1,209,633.65
Remaining 2,901,116.98 ‐ ‐ ‐ ‐ ‐ ‐ 2,901,116.98
Amount 2,127,917.68 47,549.09 545,177.30 ‐ 3,355.75 ‐ 143,876.27 2,867,876.09
Reimbursement #2 Totals Paid ‐ 47,549.09 545,177.30 ‐ 3,355.75 ‐ 143,876.27 739,958.41
Remaining 2,127,917.68 ‐ ‐ ‐ ‐ ‐ ‐ 2,127,917.68
Amount 38,643.50 26,549.41 1,804,866.36 9,000.00 ‐ ‐ 239,216.27 2,118,275.54
Reimbursement #3 Totals Paid ‐ 26,549.41 1,804,866.36 9,000.00 ‐ ‐ 239,216.27 2,079,632.04
Remaining 38,643.50 ‐ ‐ ‐ ‐ ‐ ‐ 38,643.50
Amount ‐ 132,461.49 2,378,999.15 21,075.20 ‐ ‐ 277,231.35 2,809,767.19
Reimbursement #4 Totals Paid ‐ 132,461.49 2,378,999.15 ‐ ‐ ‐ 277,231.35 2,788,691.99
Remaining ‐ ‐ ‐ 21,075.20 ‐ ‐ ‐ 21,075.20
Amount ‐ 25,560.38 293,199.21 2,488,641.70 ‐ ‐ 317,623.31 3,125,024.60
Reimbursement #5 Totals Paid ‐ 25,560.38 126,067.16 ‐ ‐ ‐ 317,623.31 469,250.85
Remaining ‐ ‐ 167,132.05 2,488,641.70 ‐ ‐ ‐ 2,655,773.75
Amount ‐ ‐ 142,307.71 7,064,255.55 ‐ ‐ 373,827.14 7,580,390.40
Reimbursement #6 Totals Paid ‐ ‐ ‐ ‐ ‐ ‐ 373,827.14 373,827.14
Remaining ‐ ‐ 142,307.71 7,064,255.55 ‐ ‐ ‐ 7,206,563.26
Total Charges 2017 2018 2019 2020 2021 Total Payments Remaining Balance
Total Payment 1,176,006.57 1,846,744.76 1,512,514.84 3,125,727.91 7,660,994.08
Interest 1,351,774.34 383,092.54 468,265.03 310,937.13 189,479.64 1,351,774.34 ‐
Construction Costs 21,260,310.11 792,914.03 1,378,479.73 1,201,577.71 2,936,248.27 6,309,219.74 14,951,090.37
Page 38
Item 2.
Page 1 of 2
]
Prosper is a place where everyone matters.
MEETING OF THE TOWN OF PROSPER TAX INCREMENT REINVESTMENT ZONE (TIRZ)
NO. 2 BOARD OF DIRECTORS
Call to Order/ Roll Call.
The meeting was called to order at 5:58 p.m.
Board Members Present:
Mayor Ray Smith
Mayor Pro-Tem Curry Vogelsang, Jr.
Councilmember Marcus E. Ray
Councilmember Craig Andres
Councilmember Meigs Miller
Councilmember Jeff Hodges
Commissioner Susan Fletcher, Collin County Commissioners Court
David Bristol, Prosper Economic Development Corporation
Council Members Absent:
Deputy Mayor Pro-Tem Jason Dixon
Staff Members Present:
Harlan Jefferson, Town Manager
Terry Welch, Town Attorney
Robyn Battle, Town Secretary/Public Information Officer
Chuck Springer, Executive Director of Administrative Services
Betty Pamplin, Finance Director
January Cook, Purchasing Manager
Hulon Webb, Engineering Services Director
Pete Anaya, Assistant Director of Engineering Services – Capital Projects
John Webb, Development Services Director
Alex Glushko, Planning Manager
Doug Kowalski, Police Chief
Scott Brewer, Assistant Police Chief
Stuart Blasingame, Fire Chief
1. Consider and act upon the minutes from the January 22, 2019, TIRZ No. 2 Board
Meeting. (RB)
Councilmember Hodges made a motion and Commissioner Fletcher seconded the
motion to approve the minutes from the January 22, 2019, TIRZ No. 2 Board Meeting.
The motion was approved by a vote of 8-0.
2. Receive the 2019 Annual Report. (BP)
Hulon Webb, Director of Engineering, presented this item before the Board. Mr. Webb
reported that there was no construction activity during the reporting period, but
Minutes
Town of Prosper TIRZ No. 2
Board of Directors Meeting
Council Chambers
Prosper Town Hall
250 W. First Street, Prosper, Texas
Tuesday, January 28, 2020
Page 39
Item 3.
Page 2 of 2
mentioned the upcoming Children’s Hospital and the overpass at the Dallas North
Tollway and U.S. Highway 380. Reimbursement number 5 for FY 2018-2019 in the
amount of $74,163 was for interest only. Approximately $2.3 million has been billed
to date. Finance Director Betty Pamplin continued the presentation. TIRZ No. 2
received approximately $19,000 in revenue during the reporting period through
property tax, sales tax, and interest. After expenses, the ending balance on
September 30, 2019, for TIRZ No. 2 was approximately $25,000. Responding to a
question from the Board, Town Manager Harlan Jefferson stated that the terms of the
TIRZ agreement require the Town to calculate and pay interest on the outstanding
balance of the TIRZ. Ms. Pamplin confirmed that the Children’s Hospital property will
not be subject to rollback tax in the next reporting year.
Mayor Pro-Tem Vogelsang made a motion and Commissioner Fletcher seconded the
motion to approve the 2019 Annual Report as presented. The motion was approved
by a vote of 8-0.
Responding to a question from the Board, Town Manager Harlan Jefferson stated that
the Town sent a notice of default letter on January 15, 2020. The developer has 90
days to cure any deficiencies. At that time, the Town may take steps to terminate the
development agreement; however, the TIRZ No. 2 would remain in place for future
projects.
Adjourn.
The meeting was adjourned at 6:08 p.m. on Tuesday, January 28, 2020.
These minutes approved on the 26th day of January 2021.
APPROVED:
Ray Smith, Mayor
ATTEST:
Melissa Lee, Town Secretary
Page 40
Item 3.
Prosper TIRZ #2 Annual Report 2020
-1-
Town of Prosper, Texas
Tax Increment Reinvestment Zone #2
(TIRZ #2)
ANNUAL REPORT
2020
Page 41
Item 4.
Town of Prosper, Texas
Tax Increment Reinvestment Zone #2
As of September 30, 2020
Prosper TIRZ #2 Annual Report 2020
-2-
INDEX
1) Cover
2) Index
3) Year End Summary of Meetings/Town Council/Board Actions
4) Public Infrastructure/Building Projects
5) Capital Improvement Plan Budget
6) Annual Report
7) TIRZ Fund Financial Statement
8) Revenue & Expenditures
a) TIRZ Rollback Tax Map
b) Payment Summaries
Page 42
Item 4.
Town of Prosper, Texas
Tax Increment Reinvestment Zone #2
As of September 30, 2020
Prosper TIRZ #2 Annual Report 2020
-3-
YEAR END SUMMARY OF MEETINGS/TOWN COUNCIL/BOARD ACTIONS
In December 2015, the Town of Prosper Town Council appointed members for the Tax Increment
Reinvestment Zone #2 (TIRZ #2) Board of Directors. In the latter part of 2015 Matthews Southwest
commenced construction on its Prosper West development at the northwest corner of US 380 and Dallas
North Tollway with the installation of a large sanitary sewer line from the west, thus marking the first
improvements made to the TIRZ #2 site. The first annual TIRZ Board of Directors meeting was held on
January 26, 2016. The second annual TIRZ Board of Directors meeting was held on April 11, 2017. The
third annual board meeting was held on January 23, 2018. The fourth annual TIRZ Board of Directors
meeting was held on January 22, 2019. The fifth annual Board of Directors meeting was held on January
28, 2020. This is the sixth year that the board has reviewed the annual report.
During this reporting period, there has been no development or construction activity within TIRZ #2. As
such, the developer did not submit a request for reimbursement prior to the June 1, 2020 deadline, for
the 2020 reporting period. This development agreement was determined to be in default and the Town’s
obligation is to pay all amounts due at the time of default which is currently $1,653,764. No interest will
be calculated from the date of default, September 22, 2020, and forward. However, the Annual Report
does note the accrued interest during the reporting period under Reimbursement No. 6, and the final
accrued interest amount for the period of June 2, 2020 to September 22, 2020.
Board members appointed and currently serving are: Town—Mayor Ray Smith, Mayor Pro‐Tem Jason
Dixon, Deputy Mayor Pro‐Tem Craig Andres, and Councilmembers Marcus E. Ray, Amy Bartley, Meigs
Miller, and Jeff Hodges. Collin County – County Commissioner Susan Fletcher. Prosper Economic
Development Corporation – Vice President David Bristol.
Page 43
Item 4.
Town of Prosper, Texas
Tax Increment Reinvestment Zone #2
As of September 30, 2020
Prosper TIRZ #2 Annual Report 2020
-4-
PUBLIC INFRASTRUCTURE / BUILDING PROJECTS
Non-project Costs Total TIRZ for Public Improvements Public Improvements
STREETS AND DRAINAGE SYSTEMS $11, 146 ,567 $2,001,748 $13,148,315
STREET ENHANCEMENTS $0 $1,775,577 $1,775,577
WATER SYSTEM $1,367,721 $1,116,778 $2,484,499
SANITARY SEWER SYSTEM $641,669 $358,204 $999,873
OFFSITE SANITARY SEWER SYSTEM $1,479,282 $0 $1,479,282
DETENTION/RETENTION PONDS & MASS EXCAVATION $0 $2,882,560 $2,882,560
SITEWORK FOR DEVELOPMENT PARCELS $0 $15,750,000 $15,750,000
PARKING DECKS $0 $73,497,600 $73,497,600
STREET LIGHTS $174,000 $210,000 $384,000
TRAFFIC SIGNALS (4 budgeted) $1,200,000 $0 $1,200,000
LOVERS LANE LOOP OFFSITE - STREET K6 $1, 174,992 $0 $1,174,992
PRIMARY ELECTRIC SERVICE LOOP $0 $3,600,000 $3,600,000
ELECTRIC $0 $640,150 $640,150
GAS $0 $448, 105 $448,105
STREET N2 - WESTSIDE ONT SERVICE ROAD, LOVERS LN. TO FIRST ST. $1,687,005 $0 $1,687,005
BRAIDED RAMP AT U.S. 380 $4,000,000 $0 $4,000,000
CIVIL ENGINEERING & SURVEYING (10%) $1,887, 124 $10,228,072 $12,115,196
CONSTRUCTION STAKING (2%) $377,425 $2,045,614 $2,423,039
CONSTRUCTION MANAGEMENT (TOTAL = 3%) $477,093 $3,157,466 $3,634,559
GEOTECHNICAL STUDY (1%) $188,712 $1,022,807 $1,211,520
LEGAL (1%) $188,712 $1,022,807 $1,211,520
CONTINGENCY (8%) $1,509,699 $8, 182,458 $9,692,157
Longo Toyota Roadway Impact Fee Credit ($280,779) $0 ($280,779)
Subtotal $27,219,221 $127,939,947 $155,159,168
TOWN EXPENSE FOR TIRZ ADMINISTRATION $1,346,836 $0 $1,346,836
Subtotal TIRZ Project Costs Before Finance Expenses $28,566,057 $127,939,947 $156,506,004
Page 44
Item 4.
Town of Prosper, Texas
Tax Increment Reinvestment Zone #2
As of September 30, 2020
Prosper TIRZ #2 Annual Report 2020
-5-
THOROUGHFARE PLAN
Page 45
Item 4.
Town of Prosper, Texas
Tax Increment Reinvestment Zone #2
As of September 30, 2020
Prosper TIRZ #2 Annual Report 2020
-6-
WATER PLAN
Page 46
Item 4.
Town of Prosper, Texas
Tax Increment Reinvestment Zone #2
As of September 30, 2020
Prosper TIRZ #2 Annual Report 2020
-7-
WASTEWATER PLAN
Page 47
Item 4.
Town of Prosper, Texas
Tax Increment Reinvestment Zone #2
As of September 30, 2020
Prosper TIRZ #2 Annual Report 2020
-8-
PUBLIC INFRASTRUCTURE/BUILDING PROJECTS
(Per Original RIRZ Agreement)
Page 48
Item 4.
Town of Prosper, Texas
Tax Increment Reinvestment Zone #2
As of September 30, 2020
Prosper TIRZ #2 Annual Report 2020
-9-
Page 49
Item 4.
Town of Prosper, Texas
Tax Increment Reinvestment Zone #2
As of September 30, 2020
Prosper TIRZ #2 Annual Report 2020
-10-
Page 50
Item 4.
Town of Prosper, Texas
Tax Increment Reinvestment Zone #2
As of September 30, 2020
Prosper TIRZ #2 Annual Report 2020
-11-
Page 51
Item 4.
Town of Prosper, Texas
Tax Increment Reinvestment Zone #2
As of September 30, 2020
Prosper TIRZ #2 Annual Report 2020
-12-
Page 52
Item 4.
Town of Prosper, Texas
Tax Increment Reinvestment Zone #2
As of September 30, 2020
Prosper TIRZ #2 Annual Report 2020
-13-
Page 53
Item 4.
Town of Prosper, Texas
Tax Increment Reinvestment Zone #2
As of September 30, 2020
Prosper TIRZ #2 Annual Report 2020
-14-
Page 54
Item 4.
Town of Prosper, Texas
Tax Increment Reinvestment Zone #2
As of September 30, 2020
Prosper TIRZ #2 Annual Report 2020
-15-
Page 55
Item 4.
Town of Prosper, Texas
Tax Increment Reinvestment Zone #2
As of September 30, 2020
Prosper TIRZ #2 Annual Report 2020
-16-
Page 56
Item 4.
Town of Prosper, Texas
Tax Increment Reinvestment Zone #2
As of September 30, 2020
Prosper TIRZ #2 Annual Report 2020
-17-
Page 57
Item 4.
Town of Prosper, Texas
Tax Increment Reinvestment Zone #2
As of September 30, 2020
Prosper TIRZ #2 Annual Report 2020
-18-
Page 58
Item 4.
Town of Prosper, Texas
Tax Increment Reinvestment Zone #2
As of September 30, 2020
Prosper TIRZ #2 Annual Report 2020
-19-
Page 59
Item 4.
Town of Prosper, Texas
Tax Increment Reinvestment Zone #2
As of September 30, 2020
Prosper TIRZ #2 Annual Report 2020
-20-
Page 60
Item 4.
Town of Prosper, Texas
Tax Increment Reinvestment Zone #2
As of September 30, 2020
Prosper TIRZ #2 Annual Report 2020
-21-
Page 61
Item 4.
Town of Prosper, Texas
Tax Increment Reinvestment Zone #2
As of September 30, 2020
Prosper TIRZ #2 Annual Report 2020
-22-
Page 62
Item 4.
Town of Prosper, Texas
Tax Increment Reinvestment Zone #2
As of September 30, 2020
Prosper TIRZ #2 Annual Report 2020
-23-
Page 63
Item 4.
Town of Prosper, Texas
Tax Increment Reinvestment Zone #2
As of September 30, 2020
Prosper TIRZ #2 Annual Report 2020
-24-
CAPITAL IMPROVEMENT PLAN BUDGET
* Reimbursement No. 4 request submitted to Engineering was denied due to ineligible costs.
This is accrued interest.
** Reimbursement No. 4A is payable to Longo Toyota for remaining balance on Mahard
Parkway.
*** Accrued interest only.
****Accrued interest for final period of 6/1/2020 – 09/22/2020.
Page 64
Item 4.
Town of Prosper, Texas
Tax Increment Reinvestment Zone #2
As of September 30, 2020
Prosper TIRZ #2 Annual Report 2020
-25-
ANNUAL FINANCIAL REPORT
Chapter 311.016 of V.C.T.A. requires the following information as part of the annual report on the status of the
TIRZ District. Information is contained in detail on the financial statement.
1. Amount and source of revenue in the tax increment fund established for the zone:
$ 16,086 Total Revenue
2. Amount and purpose of expenditures from the fund:
$ 16,504 Total Expenditures
3. Amount of Principal and Interest due on outstanding indebtedness is as follows:
A. Contributions /Advances from developers— $2,256,699.08
B. Bonds issued and payment schedule to retire bonds— none.
4. Tax Increment base and current captured appraised value retained by the zone:
A. Tax Increment base and current captured appraised value retained for Tax Year 2019:
Taxing
Jurisdiction
Net Taxable Value
Tax Year
2019
Base Year*
Value (with AG)
Jan. 1, 2014
Captured App. Value
Fiscal Year
2019- 2020
Town of Prosper $3,499,902 $29,413 $3,470,489
Collin County $3,499,902 $29,413 $3,470,489
B. Tax Increment base and expected captured appraised value for Tax Year 2020:
Taxing
Jurisdiction
Net Taxable Value
Tax Year
2020
Base Year*
Value (with AG)
Jan. 1, 2014
Captured App. Value
Fiscal Year
2020-2021
Town of Prosper $2,872,948 $29,413 $2,843,535
Collin County $2,872,948 $29,413 $2,843,535
* Base Year Value as of January 1, 2014, is for Fiscal Year 2013-2014.
5. Captured appraised value by the municipality and other taxing units, the total amount of the tax
increment received, and any additional information necessary to demonstrate compliance with the
tax increment-financing plan adopted by the governing body of the municipality.
A. Captured appraised value shared by the municipality and other participating taxing jurisdictions
received in Fiscal Year 2019-2020:
Taxing
Jurisdiction
Participation
Per $100/Value
Amount of
Fiscal Year
2019-2020
Increment
Town of Prosper (70%) $ 0.520000 $ 12,633
Collin County (50%) $ 0.174951 $ 3,137
Total $ 0.694951 $ 15,770
Page 65
Item 4.
Town of Prosper, Texas
Tax Increment Reinvestment Zone #2
As of September 30, 2020
Prosper TIRZ #2 Annual Report 2020
-26-
ANNUAL FINANCIAL REPORT
B. Amount of tax increment received in 2020 from the municipality and the other taxing jurisdictions
based on 2019 valuations: $ 15,770
C. Expected appraised value shared by the municipality and other participating taxing jurisdictions to be
received in Fiscal Year 2020-2021:
Taxing
Jurisdiction
Participation
Per $100/Value
Amount of
Fiscal Year
2020-2021
Increment
Town of Prosper (70%) $ 0.520000 $ 10,350
Collin County (50%) $ 0.172531 $ 2,453
Total $ 0.692531 $ 12,803
D. Other information: None
Page 66
Item 4.
Town of Prosper, Texas
Tax Increment Reinvestment Zone #2
As of September 30, 2020
Prosper TIRZ #2 Annual Report 2020
-27-
TIRZ FUND FINANCIAL STATEMENT
CAPITAL DEBT
PROJECTS SERVICE TOTAL
Beginning Balance:
10/1/19 25,415$ -$ 25,415$
Revenues:
Property Tax:
Town 12,633$ - 12,633$
Delinquent - - -
County 3,137 - 3,137
Property Rollback Taxes - - -
Sales Tax 16 - 16
Impact Fees:
Water Impact Fees - - -
Wastewater Impact Fees - - -
Thoroughfare Impact Fees - - -
380 Construction Sales Office - - -
Interest 300 - 300
TOTAL REVENUES 16,086$ -$ 16,086$
Expenditures:
Land Purchases -$ -$ -$
Professional Services - - -
Construction/Improvements:
Lower DB Sewer - - -
Mahard Parkway - - -
Interest Expense 16,504 - 16,504
TOTAL EXPENDITURES 16,504$ -$ 16,504$
Ending Balance:
9/30/20 24,997$ -$ 24,997$
Page 67
Item 4.
Town of Prosper, Texas
Tax Increment Reinvestment Zone #2
As of September 30, 2020
Prosper TIRZ #2 Annual Report 2020
-28-
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Item 4.
Town of Prosper, Texas
Tax Increment Reinvestment Zone #2
As of September 30, 2020
Prosper TIRZ #2 Annual Report 2020
-29-
REVENUES & EXPENDITURES
PAYMENT SUMMARIES
By Project:
By Payment Request:
By Payments Made:
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]
Prosper is a place where everyone matters.
Call to Order/ Roll Call of the Town Council, Economic Development Corporation.
The meeting was called to order at 4:05 p.m.
Council Members Present:
Mayor Ray Smith
Mayor Pro-Tem Jason Dixon
Deputy Mayor Pro-Tem Craig Andres
Councilmember Marcus E. Ray
Councilmember Amy Bartley
Councilmember Jeff Hodges
Councilmember Meigs Miller
Prosper Economic Development Board Members Present:
President Jim Wicker
Vice President David Bristol
Treasurer Roger Thedford
Secretary Jordan Simms
Board Member Don Perry
Prosper Economic Development Board Members Absent:
Board Member Reno Jones
Staff Members Present:
Harlan Jefferson, Town Manager
Melissa Lee, Town Secretary
Robyn Battle, Executive Director of Community Services
Mary Ann Moon, Prosper Economic Development Corporation Executive Director
Jordyn Williams, Prosper Economic Development Corporation Director of Marketing
Susanne Barney, Economic Development Specialist
Discussion Item.
1. Presentation on the Downtown Master Plan.
Prosper Economic Development Corporation (PEDC) Executive Director Mary Ann
Moon began by thanking the Prosper Downtown Development Master Plan Committee
members for their dedication on the Prosper Downtown development project.
Shia Roos, Stantec Project Manager, continued with an overview of the Stantec staff.
Mark Maldonado, Landscape Architecture & Planning Lead for Stantec, presented
Minutes
Joint Work Session of the
Town Council and
Economic Development Corporation
Council Chambers
Prosper Town Hall
250 W. First Street, Prosper, Texas
Wednesday, December 16, 2020
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information on the proposed Downtown Master Plan. Included was the Stantec
process consisting of three primary categories: Imagine, Plan and Act. Mr. Maldonado
discussed the Stantec Engagement Toolbox that utilizes online surveys and
community events to engage the public. Anne Ricker, Principal and Owner at Ricker-
Cunningham, provided information on current real estate market trends and the
changes that have occurred due to COVID-19. Bill Cunningham, Principal and Owner
at Ricker-Cunningham, discussed funding resource identification and reviewed the
implementation process.
The Town Council and the PEDC had questions on funding resource identification,
project completion timeframes and discussed business cultivation.
Town Staff will include a budget amendment to secure funding for the Stantec
Professional Services Agreement at the January 12, 2021, Town Council meeting.
Upon approval, the cost will be shared equally between the Town and the PEDC. The
agreement will be presented at the January 20, 2021, Prosper Economic Development
Board meeting for consideration.
Adjourn.
The meeting was adjourned at 5:15 p.m. on Wednesday, December 16, 2020.
These minutes approved by the Prosper Economic Development Corporation on the 20th day of
January 2021.
APPROVED:
Jordan Simms, Secretary
These minutes approved by Town Council on the 26th day of January 2021.
APPROVED:
Ray Smith, Mayor
ATTEST:
Melissa Lee, Town Secretary
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]
Prosper is a place where everyone matters.
Call to Order/ Roll Call.
The meeting was called to order at 5:46 p.m.
Council Members Present:
Mayor Ray Smith
Mayor Pro-Tem Jason Dixon
Deputy Mayor Pro-Tem Craig Andres
Councilmember Marcus E. Ray
Councilmember Amy Bartley
Councilmember Jeff Hodges
Councilmember Meigs Miller
Staff Members Present:
Harlan Jefferson, Town Manager
Terry Welch, Town Attorney
Melissa Lee, Town Secretary
Robyn Battle, Executive Director of Community Services
Chuck Springer, Executive Director of Administrative Services
Betty Pamplin, Finance Director
January Cook, Purchasing Manager
Rebecca Zook, Executive Director of Development & Infrastructure Services
Hulon Webb, Engineering Services Director
Dan Heischman, Assistant Director of Engineering Services - Development
Alex Glushko, Planning Manager
Frank Jaromin, Director of Public Works
Leigh Johnson, Director of Information Technology
Dudley Raymond, Director of Parks and Recreation
Doug Kowalski, Police Chief
Stuart Blasingame, Fire Chief
Invocation, Pledge of Allegiance and Pledge to the Texas Flag.
Police Chaplain John Herring led the invocation. The Pledge of Allegiance and the Pledge to the
Texas Flag were recited.
Announcements of recent and upcoming events.
Councilmember Bartley read the announcements.
The Town Council would like to congratulate Lexie Bell and Tommy Wainwright, two young people
in Prosper who have fought and won their battle with cancer. Lexie and Tommy both got the
chance to ring the bell at their hospital to celebrate that they are now cancer-free. A blood drive
honoring Lexie and Tommy will be held in the Prosper Walmart parking lot on February 27 for
Minutes
Prosper Town Council Meeting
Council Chambers
Prosper Town Hall
250 W. First Street, Prosper, Texas
Tuesday, January 12, 2021
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those who are able to donate. The Council joins the community in celebrating this wonderful
news with Lexie, Tommy and their families.
The Prosper Community Library is offering Giant Games in the Program Room for families to
enjoy through the month of January. Oversize versions of checkers, dice and other favorites are
available for groups of up to ten to enjoy while visiting the Library. Learn more on the Library
page of the Town website. The Library has also launched Dial-A-Story, where patrons may call
in for a pre-recorded story read by staff. Call 972-569-1099 to hear a new children’s story each
week.
Adult fitness programs like tennis, bowling, yoga, and outdoor Zumba are available through the
Parks and Recreation Department. Visit prosperparksandrec.org or the Parks & Recreation
Facebook page for more information.
Town offices will be closed on Monday, January 18, in observance of Martin Luther King, Jr. Day.
Residents are encouraged to Join the annual Mayor’s Fitness Challenge and walk or run at least
100 miles or bike at least 300 miles in 90 days. Turn in your completed tracking sheet for a free
t-shirt and the opportunity to win a Fitbit. The Mayor's Fitness Challenge begins January 18 and
continues through April 18, with tracking sheets due by April 23.
The public is invited to join the Town of Prosper, Prosper ISD, and the Prosper Chamber of
Commerce for our virtual State of the Community 2021 event. Prosper ISD Superintendent Dr.
Holly Ferguson and Town of Prosper Mayor Ray Smith will discuss the exciting things that are
happening in our community via Facebook Live on the Town of Prosper Facebook page at 6:00
p.m. on January 21, 2021. Attendees are encouraged to submit questions prior to the presentation
by emailing soc@prospertx.gov. This event is free to watch online; however, donations to the
Prosper Education Foundation and the We Prosper Together charitable giving campaign are
encouraged. Please visit the Town Facebook page for more information.
CONSENT AGENDA:
Items placed on the Consent Agenda are considered routine in nature and non-controversial. The
Consent Agenda can be acted upon in one motion. Items may be removed from the Consent
Agenda by the request of Council Members or staff.
1. Consider and act upon the minutes from the December 8, 2020, Town Council
meeting. (ML)
2. Receive the November financial report. (BP)
4. Consider and act upon awarding CSP No. 2021-09-B to North Rock Construction,
LLC, related to construction services for the Whitley Place Trail Powerline
Easement (1926-PK); and authorizing the Town Manager to execute a
construction agreement for same. (DR)
5. Consider and act upon Ordinance No. 2021-01 for a Specific Use Permit (SUP)
for a Day Care Center (Prosper United Methodist Church), on 42.6± acres,
located on the northwest corner of Coleman Street and Preston Road. The
property is zoned Single Family-12.5 (SF-12.5). (S20-0001). (AG)
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6. Consider and act to authorize the Town Manager to execute a Development
Agreement between Prosper United Methodist Church (UMC) and the Town of
Prosper, Texas, related to the Prosper UMC development. (AG)
7. Consider and act upon whether to direct staff to submit a written notice of
appeal on behalf of the Town Council to the Development Services Department,
pursuant to Chapter 4, Section 1.5(C)(7) and 1.6(B)(7) of the Town’s Zoning
Ordinance, regarding action taken by the Planning & Zoning Commission on any
Site Plan or Preliminary Site Plan. (AG)
Mayor Pro-Tem Dixon removed Item 3 from the Consent agenda.
Councilmember Hodges made a motion and Councilmember Ray seconded the
motion to approve Items 1 – 2 and 4 – 7 on the Consent agenda.
The motion was approved by a vote of 7 – 0.
3. Consider and act upon approving a contract between NewEdge Services, L.L.C.,
and the Town of Prosper, Texas, related to Cityworks and ESRI ArcGIS hosting
services; and authorizing the Town Manager to execute same. (LJ)
Mayor Pro-Tem Dixon questioned the annual cost for GIS hosting services of
$25,000.00 and the services included. Leigh Johnson, Director of Information
Technology, discussed the services provided by CityWorks under this proposal and
confirmed that implementation was included.
Mayor Pro-Tem Dixon made a motion and Councilmember Hodges seconded the
motion to approve the contract between NewEdge Services, L.L.C., and the Town of
Prosper, Texas, related to Cityworks and ESRI ArcGIS hosting services; and
authorizing the Town Manager to execute same.
The motion was approved by a vote of 7 – 0.
CITIZEN COMMENTS
Cary Carroll, 4271 Fisher Rd, addressed the Town Council on Town of Prosper Ordinance
enforcement and lot-to-lot drainage issues regarding his lot.
REGULAR AGENDA:
Items for Individual Consideration:
8. Consider and act to authorize the Town Manager to execute a Development
Agreement between Founders Classical Academy of Prosper and the Town of
Prosper, Texas, related to the Founders Classic Academy Charter School
development on the southwest corner of First Street and Custer Road. (AG)
Alex Glushko, Planning Manager, provided an overview of the Development
Agreement between Founders Classical Academy of Prosper and the Town of
Prosper. On June 2, 2020, the Planning & Zoning Commission approved the Site Plan
for Founders Classic Academy located on the southwest corner of First Street and
Custer Road. The approved Site Plan showed an athletic playing field without field
lights west of the proposed school. Following approval, the applicant made a request
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to add field lights for evening activities associated with the school. Staff reviewed the
request and confirmed with the Town Attorney that the Zoning Ordinance does allow
Prosper ISD to have field lights, requires commercial businesses to obtain a Specific
Use permit in order to have field lights, but not specifically address charter schools.
The determination was made that a charter school is not considered part of PISD, but
it is a school recognized by the State, and further it is not considered a commercial
business. To address this matter, Founders Classic Academy agreed to enter into a
Development Agreement in order to limit levels generated by the field lights in a
manner consistent with the regulations for commercial businesses. In addition,
Founders Classic Academy agreed to include the proposed building elevations and
architectural standards along with the Agreement. Exhibit B as presented, depicted
the proposed Building Elevations and Exhibit C as presented, depicted the proposed
photometric plan demonstrating zero (0) light spill over along the northern property line
(Whitley Place), southern property line (proposed senior living development), and
western property line (future Malabar Hill subdivision).
Although this item is intended to address overspill of lighting from field lights onto
adjacent properties, staff would like to inform Council of the building layouts and
orientation of the primary entrances to those buildings and building materials as it
relates to the approved Site Plan for the Founders Classic Academy (Founders). The
site plan consists of an elementary school, a high school, a gym/cafeteria, parking and
drive aisles. Building “A” is the Elementary School and is oriented to the South, away
from First St. Building “B”, is the gym/cafeteria and has doors on the north, the west
and the south faces. The last building, “C” (south of the gym/cafeteria), is the High
School and the building faces to the West. Staff was informed that the building
orientations were intentional and based on the school’s operations and desires.
Founders wanted the elementary school to face to the south for drop off/pick -up
purposes and wanted those functions located as far from First Street as possible. As
it relates to the architecture of the 3 buildings, Founders has included masonry on all
four sides of each building without the requirement to do so.
The applicant Austin Tull, Senior Project Manager for ResponsiveED, discussed with
the Town Council the proposed color palette for building materials and the use of
portable buildings at this site. The Town Council discussed their preference of using
berms along Custer Road and noted the lack of such with this Development
Agreement.
The Town Council was in favor of the proposed field lighting; however, it was
requested to table this item to a future meeting date to address possible building
façade changes, roof line articulation on the northern side and the addition of portable
building language to the Development Agreement.
After discussion, Mayor Pro-Tem Dixon made a motion and Councilmember Ray
seconded the motion to table indefinitely the Development Agreement between
Founders Classical Academy of Prosper and the Town of Prosper, Texas, related to
the Founders Classic Academy Charter School development on the southwest corner
of First Street and Custer Road.
The motion was approved by a vote of 7 – 0.
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9. Conduct a Public Hearing and consider and act upon Ordinance No. 2021-02 for
an extension of a Specific Use Permit (SUP) for a Concrete Batching Plant on
5.0± acres, located on the west side of Dallas Parkway, south of First Street. The
property is zoned Planned Development-19-Commercial Corridor (PD-19-CC)
and Specific Use Permit-6 (S-6). (S20-0002). (AG)
Alex Glushko, Planning Manager, provided an overview of the extension of a Specific
Use Permit (SUP) for a Concrete Batching Plant on 5.0± acres, located on the west
side of Dallas Parkway, south of First Street. On December 14, 2004, the Town
Council adopted an ordinance rezoning the property to Planned Development-19 (PD-
19). PD-19 permitted a Concrete Batching Plant by right, with the condition that an
on-site billing office is included on the property and allowed the plant to operate for
five years following the adoption date of PD-19. At the end of the five-year period, a
SUP was required to allow for the continued operation. In December of 2009, the
Town Council granted a SUP with a two-year expiration. In December of 2011, the
Town Council extended the SUP for two (2) years. In January of 2014, the Town
Council extended the SUP for three (3) years. In May of 2016, the Town Council
extended the SUP for two (2) years. In November of 2018, the Town Council extended
the SUP for two (2) years.
In November of 2018, the Town Council adopted the current SUP (Ordinance No. 18-
97) granting a SUP permitting the Concrete Batching Plant to continue in operation
subject to the following conditions:
1. The SUP expires January 14, 2021, two (2) years after the adoption of the
ordinance. The applicant may seek a renewal term to the SUP in order to continue
the Concrete Batching Plant use.
2. An on-site billing office is required to continue the Concrete Batching Plant use.
All concrete deliveries from the physical Prosper location shall be billed as taxable
to the Town of Prosper.
3. The Town of Prosper reserves the right to audit books to ensure that Prosper is
the primary HUB for tax revenue and upon inspections, if there are any failures to
correct errors, the Town of Prosper reserves the right to revoke the SUP.
The Town has received an application for an SUP from Nelson Bros Reay Mix (NBR)
requesting a final SUP extension to allow for continued use of the batch plant facility
and will cease operations on the property on or before October 1, 2024, and shall
remove all operations equipment from the property within 90 days of the date it ceases
operations.
This request is consistent with the cessation dates established in the amortization and
settlement agreements which were approved by the Town Council on December 8,
2020 with the Lattimore Batch Plant and the Argos/Southern Batch Plant. Staff
recommends the Town Council approve the request, subject to the following:
1. Nelson Bros Ready Mix (NBR) shall cease operations on the property on or before
October 1, 2024 and shall remove all operations equipment from the property within
90 days of the date it ceases operations.
2. An on-site billing office is required to continue the Concrete Batching Plant use. All
concrete deliveries from the physical Prosper location shall be billed as taxable to
the Town of Prosper.
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3. The Town of Prosper reserves the right to audit books to ensure that Prosper is the
primary HUB for tax revenue and upon inspections, if there are any failures to
correct errors, the Town of Prosper reserves the right to revoke the SUP.
Mayor Smith opened the public hearing.
Tony Strickland, Senior Vice President for Nelson Bros Ready Mix, addressed the
Town Council and confirmed they are in agreement with Town Staff recommendations.
With no one else speaking, Mayor Smith closed the public hearing.
The Town Council discussed zoning ordinance enforcement regarding the cessation
of operations on the property.
After discussion, Mayor Pro-Tem Dixon made a motion and Councilmember Miller
seconded the motion to approve Ordinance No. 2021-02 for an extension of a Specific
Use Permit (SUP) for a Concrete Batching Plant on 5.0± acres, located on the west
side of Dallas Parkway, south of First Street subject to the following:
1. Nelson Bros Ready Mix (NBR) shall cease operations on the property on or before
October 1, 2024 and shall remove all operations equipment from the property
within 90 days of the date it ceases operations.
2. An on-site billing office is required to continue the Concrete Batching Plant use.
All concrete deliveries from the physical Prosper location shall be billed as taxable
to the Town of Prosper.
3. The Town of Prosper reserves the right to audit books to ensure that Prosper is
the primary HUB for tax revenue and upon inspections, if there are any failures to
correct errors, the Town of Prosper reserves the right to revoke the SUP.
The motion was approved by a vote of 7 – 0.
10. Consider and act upon Ordinance No. 2021-03 amending Ordinance No. 2020-71
(FY 2020-2021 Annual Budget and Capital Improvement Program). (BP)
Betty Pamplin, Finance Director, provided information on Ordinance No. 2021-03
amending Ordinance No. 2020-71 (FY 2020-2021 Annual Budget and Capital
Improvement Program). The proposed budget amendments to include:
Capital Improvement Plan - $40,000,000
Added first year of projects approved with the passage of bond election.
General Fund
Purchase/rehab of real property (Silos) - $236,000
Downtown Master Plan - $95,000
Fire Station 3 Apparatus - $1,810,000
CARES Act Fund
Additional funds awarded by Collin County - $662,567.23
PO Roll Forward
Various funds
The General Fund expenditures will increase by $2,264,263.60; Water-Sewer Utility
Fund expenditures will increase by $184,242.30; Stormwater Drainage Utility Fund
expenditures will increase by $100,000.00; Park Improvement Fund expenditures will
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increase by $456,089.75; Water Impact Fee Fund expenditures will increase by
$54,662.74; East Thoroughfare Impact Fee Fund expenditures will increase by
$475,876.15; Special Revenue Fund expenditures will increase by $4,157.20; CARES
Act Fund expenditures will increase by $1,288,031.44; and West Thoroughfare Impact
Fee Fund expenditures will increase by $154,185.00 in FY 2020-2021.
Councilmember Miller made a motion and Mayor Pro-Tem Dixon seconded the motion
to approve Ordinance No. 2021-03 amending Ordinance No. 2020-71 (FY 2020-2021
Annual Budget and Capital Improvement Program) to provide funding increased
expenditures in the General Fund, Water-Sewer Utility Fund, Stormwater Drainage
Utility Fund, Park Improvement Fund, Water Impact Fee Fund, East Thoroughfare
Impact Fee Fund, Special Revenue Fund, CARES Act Fund, and West Thoroughfare
Impact Fee Fund and CIP.
The motion was approved by a vote of 7 – 0.
11. Consider and act upon Resolution No. 2021-04 expressing official intent to
reimburse costs of Town capital improvement program projects that may be
funded with proceeds of bonds or other obligations, if those costs are paid prior
to the issuance of such bonds or obligations. (BP)
Betty Pamplin, Finance Director, briefed the Town Council on Resolution No. 2021-04
expressing official intent to reimburse costs of Town capital improvement program
projects that may be funded with proceeds of bonds or other obligations, if those costs
are paid prior to the issuance of such bonds or obligations. The resolution allows the
Town to pay for the projects listed in the Fiscal Year 2020-2021 Amended CIP, which
is also on this meeting’s agenda. This includes costs associated with the design,
planning, acquisition and construction of certain public safety facilities ($18,000,000),
parks and recreational facilities ($2,200,000) and streets, roads, bridges and
intersections ($19,800,000). These are the first projects planned to be funded from the
2020 Bond Election. Federal law requires that the reimbursement resolution be
approved for the full amount currently planned to be issued in the fiscal year regardless
of whether the contracts will be let prior to issuance. The Town does not plan to enter
into contracts for the construction of Central Fire Station ($16,400,000) or for the
construction of Fishtrap Road (Elem - DNT) ($17,300,000) prior to the issuance of the
bonds. A reimbursement resolution (Resolution No. 2020-76) was passed October 13,
2020, covering the planned issuance of Certificates of Obligation in the amount of
$10,000,000.
Councilmember Hodges made a motion and Deputy Mayor Pro-Tem Andres seconded
the motion to approve Resolution No. 2021-04 expressing official intent to reimburse
costs of Town capital improvement program projects that may be funded with proceeds
of bonds or other obligations, if those costs are paid prior to the issuance of such
bonds or obligations.
The motion was approved by a vote of 7 – 0.
EXECUTIVE SESSION:
Recess into Closed Session in compliance with Section 551.001 et seq. Texas Government
Code, as authorized by the Texas Open Meetings Act, to deliberate regarding:
Section 551.087 - To discuss and consider economic development incentives.
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Section 551.072 - To discuss and consider 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, and Planning &
Zoning Commission.
The Town Council recessed into Executive Session at 7:00 p.m.
Reconvene in Regular Session and take any action necessary as a result of the Closed
Session.
The Town Council reconvened the Regular Session at 8:45 p.m.
Councilmember Bartley made a motion and Councilmember Hodges seconded the motion to
approve a Real Estate Sales Contract with Blue Star Land, LP, for the purchase of a 2.8738-acre
tract of land being a part of Block Nos. 27 and 29, out of Survey No. 12 of Collin County School
Lands, Abstract No. 147, Town of Prosper, Collin County, Texas, and authorize the Mayor to
execute same and take all necessary actions incident and related thereto.
The motion passed by a vote of 7 – 0.
Councilmember Bartley made a motion and Councilmember Hodges seconded the motion to
authorize the Mayor to execute the Fourth Amended Economic Development Incentive
Agreement with Northeast 423/380 Ltd. And Northwest 423/380 LP and take all necessary actions
incident and related thereto.
The motion passed by a vote of 7 – 0.
Councilmember Bartley made a motion and Councilmember Hodges seconded the motion to
authorize the Mayor to execute a Lease Agreement with the Prosper Economic Development
Corporate for the lease of property locate at 121 W. Broadway Street, and take all necessary
actions incident and related thereto.
The motion passed by a vote of 7 – 0.
Possibly direct Town staff to schedule topic(s) for discussion at a future meeting.
12. 2021 Town Council Meeting Schedule (RB)
Robyn Battle, Executive Director of Community Services, briefed the Town Council
on the 2021 Town Council Meeting Schedule. Staff will present the 2021 Town
Council Meeting Schedule for consideration at the January 26, 2021, Town Council
meeting.
13. Discuss the Community Engagement Committee. (RB)
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Robyn Battle, Executive Director of Community Services, discussed the proposed
structure of the Community Engagement Committee. The Council had previously
proposed the new Committee for the purpose of providing residents an opportunity to
enhance the Town’s interaction with the public. The initial committee membership will
be comprised of eleven residents who were appointed at the December 8, 2020, Town
Council meeting, three Councilmembers (Councilmember Bartley, Councilmember
Hodges, and Councilmember Ray), and Ms. Battle, as staff support. Town staff was
directed to schedule the first meeting sometime in February. The Committee will
discuss the scope of activities, meeting schedule, and desired outcomes at the first
meeting.
Councilmember Hodges requested a future agenda item for a traffic study regarding the
intersection of Coit Road and First Street and the designation of right turn only lanes on both
Coit Road and First Street.
Adjourn.
The meeting was adjourned at 9:33 p.m. on Tuesday, January 12, 2021.
These minutes approved on the 26th day of January 2021.
APPROVED:
Ray Smith, Mayor
ATTEST:
Melissa Lee, Town Secretary
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To: Mayor and Town Council
From: Melissa Lee, Town Secretary
Through: Harlan Jefferson, Town Manager
Robyn Battle, Executive Director of Community Services
Re: Town Council Meeting – January 26, 2021
Agenda Item:
Consider and act upon the 2021 Prosper Town Council Regular Meeting Schedule.
Description of Agenda Item:
At the January 12, 2021, Town Council meeting, the Council was presented with the Regular
Meeting dates for 2021. After receiving feedback from individual Councilmembers, Town staff is
proposing to cancel the December 28, 2021, Regular Town Council Meeting. A meeting schedule
is attached, and will be posted on the Town website. The proposed Regular Meeting Schedule
does not include any Special Called Meetings, which may be called at a later date. All Regular
and Special Called Meetings will continue to be posted on the Town bulletin board and Town
website in accordance with the Texas Open Meetings Act.
Attached Documents:
1. 2021 Prosper Town Council Regular Meeting Schedule
Town Staff Recommendation:
Town staff recommends the Council approve the 2021 Prosper Town Council Regular Meeting
Schedule.
Proposed Motion:
I move to approve the 2021 Prosper Town Council Regular Meeting Schedule.
Prosper is a place where everyone matters.
TOWN SECRETARY
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Item 8.
Unless otherwise posted, all Prosper Town Council Regular Meetings take place in the Council Chambers
of Prosper Town Hall, located at 250 W. First Street, Prosper, Texas 75078. Meetings begin at 5:45 p.m.
Regular Meeting Schedule
January 12
January 26
February 9
February 23
March 9
March 23
April 13
April 27
May 11
May 25
June 8
June 22
July 13
July 27
August 10
August 24
September 14
September 28
October 12
October 26
November 9
November 23
December 14
December 28 – Meeting canceled
2021 Prosper Town Council
Regular Meeting Schedule
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To: Mayor and Town Council
From: Betty Pamplin, Finance Director
Through: Harlan Jefferson, Town Manager
Chuck Springer, Executive Director of Administrative Services
Re: Town Council Meeting – January 26, 2021
Agenda Item:
Consider and act upon a resolution approving the Town of Prosper and Prosper Economic
Development Corporation (PEDC) 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 and the PEDC. (BP)
Description of Agenda Item:
In March 2006, the Prosper Town Council adopted an Investment Policy for the Town and PEDC.
This policy was last reviewed, revised, or adopted in January 2020. The Town recently engaged
Valley View Consulting, L.L.C. to act in the capacity of Investment Advisors. Valley View
thoroughly reviewed and updated the policy to include recommended best practices of the Public
Funds Investment Act (PFIA) and compliance with State law. The Town’s investment program and
investment strategy remains the same under the new policy and there are no changes to the
allowed investments, investment maturity limits or staff responsibilities for Town investments. The
Investment Policy has received Certification from the Government Treasurer’s Organization of
Texas for a two-year period ending January 31, 2021, and upon passage will again be submitted
for consideration of certification.
Under Section 2256.05(e) of the Texas Public Funds Investments Act, contained in Chapter 2256
of the Texas Government Code, the governing body of the investing entity shall review its
investment policy and investment strategies not less than annually and shall adopt by rule, order,
ordinance, or resolution stating that it has reviewed the investment policy and investment
strategies and that the written instrument so adopted shall record any changes made to either the
investment policy or investment strategies.
As noted above, the Investment Policy is to reflect the recommended best practices, PFIA
checklist requirements, legislative changes, and the designation of investment officers for the
Town and PEDC. Under the Public Funds Investment Act, investment officers must attend at least
eight hours of instruction relating to the treasurer's or officer's responsibilities not less than once
Prosper is a place where everyone matters.
FINANCE DEPARTMENT
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in a two-year period. Currently, the Executive Director of Administrative Services, Finance
Director, and Accounting Manager are designated for the Town.
Additionally, the PEDC Investment Policy currently calls for the PEDC Treasurer and the Finance
Director to serve as investment officers.
Vetting of Banks/Brokers:
Section 2256.005(k) of the Texas Public Funds Investment Act, contained in Chapter 2256 of the
Texas Government Code, requires broker/dealers to acknowledge receipt of the entity’s
investment policy, and the Town may require additional information in order for a bank/broker
dealer to qualify to be on the approved list.
The investment policy states the governing body shall, at least annually, review, revise and adopt
a list of qualified broker/dealers that are authorized to engage in investment transactions with the
Town and PEDC.
The investment policy has identified the qualifying items to be on the approved list as follows:
Eligibility
Competitive Environment
Attached is the list of vetted broker/dealers and financial institutions that have qualified to be on
the approved list. Samco Capital Markets, Inc is the only addition to the list.
Budget Impact:
N/A
Legal Obligations and Review:
Terrence Welch of Brown & Hofmeister, L.L.P., has reviewed the resolution as to form and legality.
Attached Documents:
1. Resolution for Investment Policy and Investment Strategy
2. Matrix of qualified brokers/dealers and financial institutions
Town Staff Recommendation:
Town staff recommends approval of a resolution approving the Town of Prosper and the PEDC
Investment Policy and Investment Strategy, and approve the list of qualified brokers/dealers and
financial institutions that are authorized to engage in investment transactions with the Town of
Prosper and the PEDC.
Proposed Motion:
I move to approve a resolution approving the Town of Prosper and the PEDC Investment Policy
and Investment Strategy, and approve the list of qualified brokers/dealers and financial institutions
that are authorized to engage in investment transactions with the Town of Prosper and the PEDC.
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TOWN OF PROSPER, TEXAS RESOLUTION NO. 2021-XX
A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF PROSPER,
TEXAS, REVIEWING, UPDATING AND ADOPTING THE TOWN OF PROSPER
AND PROSPER ECONOMIC DEVELOPMENT CORPORATION INVESTMENT
POLICY AND INVESTMENT STRATEGY; MAKING FINDINGS; AND
PROVIDING AN EFFECTIVE DATE.
WHEREAS, the Texas Public Funds Investment Act (“the Act”), contained in Chapter 2256
of the Texas Government Code, as amended, provides in Section 2256.005(e) thereof that the
governing body of an investing entity shall review its investment policy and investment strategies
not less than annually; and
WHEREAS, said section of the Act further provides that the governing body shall adopt a
written instrument by rule, order, ordinance, or resolution stating that it has reviewed the
investment policy and investment strategies; and
WHEREAS, the Act requires the written instrument so adopted shall record any changes
made to either the investment policy or the investment strategies.
NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF
PROSPER, TEXAS, THAT:
SECTION 1
The Prosper Town Council hereby confirms that it has reviewed the Town of Prosper and
Prosper Economic Development Corporation Investment Policy and Investment Strategy and
adopts the Investment Policy dated January 26, 2021, attached hereto as Exhibit “A”.
SECTION 2
This Resolution shall take effect from and after the date of its passage.
DULY PASSED, APPROVED, AND ADOPTED BY THE TOWN COUNCIL OF THE
TOWN OF PROSPER, TEXAS, ON THIS 26th DAY OF JANUARY, 2021.
APPROVED:
___________________________________
Ray Smith, Mayor
ATTEST:
_________________________________
Melissa Lee, Town Secretary
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APPROVED AS TO FORM AND LEGALITY:
_________________________________
Terrence S. Welch, Town Attorney
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PROSPER IS A PLACE WHERE EVERYONE MATTERS
TOWN OF PROSPER, TEXAS
and
PROSPER ECONOMIC DEVELOPMENT CORPORATION
INVESTMENT POLICY
JANUARY 26, 2021
Exhibit “A”
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APPENDIX “B” – TOWN OF PROSPER AUTHORIZED BROKER/DEALER LIST
APPENDIX “C” – RESOLUTION FOR ADOPTION OF INVESTMENT POLICY
APPENDIX “D” – PUBLIC FUNDS INVESTMENT ACT
INVESTMENT POLICY
Table of Contents
PREFACE
5
I. PURPOSE
6-7
A. FORMAL ADOPTION
6
B. SCOPE 6
C. REVIEW AND AMENDMENT 7
D. INVESTMENT STRATEGY 7
II. INVESTMENT OBJECTIVES 7-8
A. SAFETY OF PRINCIPAL
7
B. MAINTENANCE OF ADEQUATE LIQUIDITY 7
C. PUBLIC TRUST 7
D. YIELD 8
III. INVESTMENT POLICIES 8-20
A. AUTHORIZED INVESTMENTS
8-13
B. PROTECTION OF PRINCIPAL 13-16
C. INVESTMENT ADVISERS AND SECURITIES DEALERS 17
D. RESPONSIBILITY AND CONTROL 17-20
IV. INVESTMENT STRATEGY 19-20
A. GENERAL, ENTERPRISE, AND OPERATING-TYPE FUNDS
B. CAPITAL PROJECT AND SPECIAL PURPOSE FUNDS
C. DEBT SERVICE FUNDS
20
21
22
APPENDIX “A” – GLOSSARY OF TERMS 24-28
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PREFACE
The Town of Prosper and the Prosper Economic Development Corporation are separately
chartered, governed, and operated entities. Each ENTITY adheres to its own governing documents
and the Public Funds Investment Act. Each ENTITY additionally seeks to safely and effectively
manage the funds under its control. To achieve those requirements, the governing body of each
ENTITY has legally adopted this Investment Policy.
Throughout this Investment Policy, the two entities shall be singularly referred to as “ENTITY”
and collectively referred to as “PROSPER.”
It is the policy of PROSPER that, giving due regard to the safety and risk of investment, all
available funds shall be invested in conformance with State and Federal Regulations, applicable
Bond Resolution requirements, adopted Investment Policy and adopted Investment Strategy.
Effective cash management is recognized as essential to good fiscal management. A
comprehensive and effective cash management system will be pursued to optimize investment
interest earnings as viable and material revenue to all PROSPER funds. PROSPER’s portfolio
shall be designed and managed in a manner responsive to the public trust and consistent with all
Federal regulations, State of Texas statutes and other legal requirements, including the Town
Charter, Town Ordinances, Articles of Incorporation, and this Policy.
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I. PURPOSE
A. Formal Adoption
This Investment Policy is authorized by PROSPER in accordance with Chapter 2256,
Texas Government Code, the Public Funds Investment Act, herein referred to as
“PFIA”.
B. Scope
This Investment Policy applies to all of the investment activities of PROSPER. These
funds are accounted for in the Town’s Comprehensive Annual Financial Report
(CAFR) and include:
General Fund
Debt Service Funds
Special Revenue Funds
Capital Project Funds
Enterprise Funds
Internal Service Funds
Economic Development Corporation Funds
Any new fund created by the Town
The Town of Prosper may consolidate cash balances from multiple funds to maximize
investment earnings. Investment income will be allocated to the various funds based
on their respective participation and in accordance with generally accepted accounting
principles.
This Policy establishes guidelines for:
1. Who can invest PROSPER funds,
2. How PROSPER funds will be invested, and
3. When and how a periodic review of investments will be made.
In addition to this Policy, bond funds (as defined by the Internal Revenue Service) shall
be managed in accordance with their issuing documentation and all applicable State
and Federal Law.
All investments made with PROSPER funds prior to the adoption of this Investment
Policy shall be held or liquidated as determined to be in the best interest of the financial
well being of PROSPER. PROSPER will also monitor changes in the credit ratings of
its investments quarterly using a number of resources including rating agencies,
broker/dealers or financial publications. PROSPER shall take all prudent measures that
are consistent with its investment policy to liquidate an investment that does not have
the minimum rating.
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C. Review and Amendment
This Policy shall be reviewed annually by the ENTITY’s governing body. The
ENTITY’s governing body shall adopt a written document stating that it has reviewed
and recorded any changes made to the Investment Policy.
D. Investment Strategy
In conjunction with the annual Policy review, the ENTITY’s governing body shall
review the separate written Investment Strategy for each of PROSPER’s funds. The
Investment Strategy must describe the investment objectives for each particular fund
according to the following priorities:
1. Investment suitability,
2. Preservation and safety of principal,
3. Liquidity,
4. Marketability prior to maturity of each investment,
5. Diversification, and
6. Yield.
II. INVESTMENT OBJECTIVES
A. Safety of Principal
The primary objective of all investment activity is the preservation of capital and the
safety of principal in the overall portfolio. Each investment transaction shall seek to
ensure first that capital losses are avoided, whether they are from securities defaults or
erosion of the market value.
B. Maintenance of Adequate Liquidity
The investment portfolio will remain sufficiently liquid to meet the cash flow
requirements that might be reasonably anticipated. Liquidity shall be achieved by
matching investment maturities with forecasted cash flow requirements; investing in
securities with active secondary markets; and maintaining appropriate portfolio
diversification.
C. Public Trust
All participants in the investment process will seek to act responsibly as custodians of
the public trust. Investment officials will avoid any transactions that might impair
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public confidence in the Town’s ability to govern effectively. The governing body
recognizes that in a diversified portfolio, occasional measured losses due to market
volatility are inevitable, and must be considered within the context of the overall
portfolio’s investment return, provided that the adequate diversification has been
implemented and the terms of this policy have been followed.
D. Yield
The investment portfolio shall be designed with the objective of attaining a market rate
of return throughout budgetary and economic cycles, taking into account the
investment risk constraints and liquidity needs. Return on investment is of secondary
importance compared to the safety and liquidity objectives described above. Core
investments are limited to relatively low risk securities in anticipation of earning a fair
return relative to the risk being assumed.
III. INVESTMENT POLICIES
A. Authorized Investments
Investments described below are authorized by PFIA as eligible securities for
PROSPER. In the event an authorized investment loses its required minimum credit
rating, all prudent measures will be taken to liquidate said investment. Additionally,
PROSPER is not required to liquidate investments that were authorized at the time of
purchase in the event that subsequent legislation renders certain securities as no longer
authorized for purchase by the Town. PROSPER’s funds governed by this Policy may
be invested in:
1. Obligations of Governmental Entities (Section 2256.009). Except for the items
listed in 1.e. below, the following are authorized investments for obligations of
governmental agencies:
a. Obligations, including letters of credit, of the United States or its agencies and
instrumentalities, including the Federal Home Loan Banks;
b. Direct obligations of the State of Texas or its agencies and instrumentalities;
c. Other obligations, the principal and interest of which are unconditionally
guaranteed or insured by, or backed by the full faith and credit of, the State of
Texas or the United States or their respective agencies and instrumentalities,
including obligations that are fully guaranteed or insured by the Federal Deposit
Insurance Corporation or by the explicit full faith and credit of the United
States;
d. Obligations of states, agencies, counties, cities, and other political subdivisions
of any State having been rated as to investment quality by a nationally
recognized investment rating firm and having received a rating of not less than
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“A” or its equivalent;
e. The following are not authorized investments for PROSPER:
1. Obligations whose payments represent the coupon payments on the
outstanding principal balance of the underlying mortgage-backed security
collateral and pays no principal (Interest Only);
2. Obligations whose payments represent the principal stream of cash flow
from the underlying mortgage-backed security collateral and bear no
interest (Principal Only);
3. Collateralized mortgage obligations that have a stated final maturity date of
greater than 10 years; and
4. Collateralized mortgage obligations the interest rate of which is
determined by an index that adjusts opposite to the changes in a market
index (Inverse Floater).
2. Financial Institution Deposits (Section 2256.010).
a. Certificates of deposit, share certificates, or other forms of deposit provided
the deposit is issued by a depository institution that has its main office or a
branch office in Texas that is:
1. Guaranteed or insured by the Federal Deposit Insurance Corporation or its
successor or the National Credit Union Share Insurance Fund or its
successor; or
2. Secured by obligations that are described by 1. (Obligations of
Governmental Entities) above, which are intended to include all direct
Federal agency or instrumentality issued mortgage backed securities, but
excluding those mortgage-backed securities of the nature described in
1.e. above, that have a market value of not less than the uninsured amount
of the deposit; or
3. Secured in any other manner and amount provided by the law for deposits
of PROSPER.
b. In addition to the authority to invest funds in certificates of deposit under
Subsection “a”, an investment in certificates of deposit made in accordance
with the following conditions is an authorized investment:
1. The funds are invested through:
(a) a broker that has its main office or a branch office in this state and is
selected from a list adopted by the investing entity as required by
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Section 2256.025; or
(b) a depository institution that has its main office or a branch office in this
state and that is selected by the investing entity;
2. The broker or the depository institution selected by the investing entity
under Subdivision (1) arranges for the deposit of the funds in certificates of
deposit in one or more federally insured depository institutions, wherever
located, for the account of the investing entity;
3. The full amount of the principal and accrued interest of each of the
certificates of deposit is insured by the United States or an instrumentality
of the United States; and
4. The investing entity appoints the depository institution selected by the
investing entity under Subdivision (1), an entity described by Section
2257.041(d), or a clearing broker-dealer registered with the Securities and
Exchange Commission and operating pursuant to Securities and Exchange
Commission Rule 15c3-3 (17 C.F.R. Section 240.15c3-3) as custodian for
the investing entity with respect to the certificates of deposit issued for the
account of the investing entity.
3. Mutual Funds (2256.014).
a. A no-load money market mutual fund is an authorized investment under this
subchapter if the mutual fund:
1. Is registered with and regulated by the Securities and Exchange Commission;
2. Provides the investing entity with a prospectus and other information
required by the Securities Exchange Act of 1934 (15 U.S.C. Section 78a et
seq.) or the Investment Company Act of 1940 (15 U.S.C. Section 80a-1 et
seq.); and
3. Includes in its investment objectives the maintenance of a stable net asset
value of $1.0000 for each share.
b. In addition to a no-load money market mutual fund permitted as an authorized
investment in Subsection (a), a no-load mutual fund is an authorized investment
under this subchapter if the mutual fund:
1. Is registered with the Securities and Exchange Commission;
2. Has an average weighted maturity of less than two years;
3. Either:
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(a) Has a duration of one year or more and is invested exclusively in
obligations approved by this subchapter; or
4. Has a duration of less than one year and the investment portfolio is limited to
investment grade securities, excluding asset-backed securities.
c. An Entity is not authorized by this section to:
1. Invest in the aggregate more than 15 percent of its monthly average fund
balance, excluding bond proceeds and reserves and other funds held for debt
service, in mutual funds described in Subsection (b);
2. Invest any portion of bond proceeds, reserves and funds held for debt service,
in mutual funds described in Subsection (b); or
3. Invest its funds or funds under its control, including bond proceeds and
reserves and other funds held for debt service, in any one mutual fund
described in Subsection (a) or (b) in an amount that exceeds 10 percent of
the total assets of the mutual fund.
4. Local Government Investment Pools (2256.016). Eligible investment pools
organized and operating in compliance with PFIA described in section 2256.016
and 2256.019, have been authorized by the Town’s governing body, whose
investment philosophy and strategy include seeking to maintain a stable net asset
value of $1.00 per share, and are consistent with this Policy and PROSPER’s
ongoing investment strategy.
5. Commercial Paper (2256.013). Commercial paper is an authorized investment
under this policy if the commercial paper:
a. Has a stated maturity of 365 days or fewer from the date of its issuance; and
b. Is rated not less than A-1 or P-1 or an equivalent rating by at least:
1. two nationally recognized credit rating agencies; or
2. one nationally recognized credit rating agency and is fully secured by an
irrevocable letter of credit issued by a bank organized and existing under
the laws of the United States or any state.
6. Repurchase Agreements (2256.011). Repurchase agreements arranged in
compliance with PFIA, under the terms of an executed Repurchase Agreement, and
secured in accordance with this Policy.
a. A fully collateralized repurchase agreement is an authorized investment under
PFIA, Subchapter A, if the repurchase agreement:
1. has a defined termination date;
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2. is secured by a combination of cash and obligations described by PFIA,
section 2256.009(a)(1); and
3. requires the securities being purchased by the Town to be pledged to the
Town, held in the Town’s name, and deposited at the time the investment is
made with the Town or with the third-party selected and approved by the
Town; and
4. is placed through a primary government securities dealer, as defined by the
Federal Reserve, or a financial institution doing business in Texas.
b. In this section, “repurchase agreement” means a simultaneous agreement to
buy, hold for a specific time, and sell back, at a future date, obligations
described by Section 2256.009(a)(1), at market value at the time the funds are
disbursed of not less than the principal amount of the funds disbursed. The
term includes a direct security repurchase agreement and a reverse Security
repurchase agreement.
c. Notwithstanding any other law, the term of any reverse security repurchase
agreement may not exceed 90 days after the date the reverse security
repurchase agreement is delivered.
d. Money received by an entity under the terms of a reverse security repurchase
agreement shall be used to acquire additional authorized investments, but the
term of the authorized investments acquired must mature not later than the
expiration date stated in the reverse security repurchase agreement.
7. Guaranteed Investment Contracts (2256.015).
a. A guaranteed investment contract is an authorized investment for bond proceeds
under this subchapter if the guaranteed investment contract:
1. Has a defined termination date;
2. Is secured by obligations described by Section 2256.009(a)(1), excluding
those obligations described by Section 2256.009(b), in an amount at least
equal to the amount of bond proceeds invested under the contract; and
3. Is pledged to the entity and deposited with the Town or with a third party
selected and approved by the Town.
b. Bond proceeds, other than bond proceeds representing reserves and funds
maintained for debt service purposes, may not be invested under this subchapter
in a guaranteed investment contract with a term of longer than five years from
the date of issuance of the bonds.
c. To be eligible as an authorized investment:
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1. The governing body of the Town must specifically authorize guaranteed
investment contracts as an eligible investment in the order, ordinance, or
resolution authorizing the issuance of bonds;
2. The Town must receive bids from at least three separate providers with no
material financial interest in the bonds from which proceeds were received;
3. The Town must purchase the highest yielding guaranteed investment
contract for which a qualifying bid is received;
4. The price of the guaranteed investment contract must take into account the
reasonably expected drawdown schedule for the bond proceeds to be
invested; and
5. The provider must certify the administrative costs reasonably expected to
be paid to third parties in connection with the guaranteed investment
contract.
B. Protection of Principal
PROSPER shall seek to control the risk of loss due to failure of a security issuer or
grantor. Such risk shall be controlled by investing only in the safest types of securities
as defined in the Policy; by collateralization as required by law; and through portfolio
diversification by maturity and type.
The purchase of individual securities shall be executed “Delivery versus Payment”
(DVP) through PROSPER’s Safekeeping Agent. By so doing, PROSPER’s funds are
not released until PROSPER has received, through the Safekeeping Agent, the
securities purchased.
1. Diversification by Investment Type
Diversification by investment type shall be maintained by ensuring an active and
efficient secondary market in portfolio investments and by controlling the market
and opportunity risks associated with specific investment types.
Bond proceeds may be invested in a single security or investment if PROSPER
determines that such an investment is necessary to comply with Federal arbitrage
restrictions or to facilitate arbitrage record keeping and calculation.
2. Diversification by Investment Maturity
In order to minimize risk of loss due to interest rate fluctuations, investment
maturities will not exceed the anticipated cash flow requirements of the funds.
Generally, PROSPER will not directly invest in securities maturing more than five
years from the date of purchase.
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Maturity guidelines by fund type are discussed in Section IV, Investment Strategy
Statement.
3. Ensuring Liquidity
Liquidity shall be achieved by anticipating cash flow requirements, by investing in
securities with active secondary markets and by investing in eligible financial
institution deposit accounts, money market mutual funds, and local government
investment pools.
A security may be liquidated to meet unanticipated cash requirements, to redeploy
cash into other investments expected to outperform current holdings, or otherwise
to adjust the portfolio.
4. Depository Agreements
Consistent with the requirements of State Law, PROSPER requires all bank
deposits to be federally insured or collateralized with eligible securities. Financial
institutions serving as PROSPER’s Depositories will be required to sign a
Depository Agreement with PROSPER and PROSPER’s safekeeping agent. The
safekeeping portion of the Agreement shall define PROSPER’s rights to the
collateral in case of default, bankruptcy, or closing and shall establish a perfected
security interest in compliance with Federal and State regulations, including:
The Agreement must be in writing;
The Agreement has to be executed by the Depository and PROSPER
contemporaneously with the acquisition of the asset;
The Agreement must be approved by the Board of Directors or the designated
committee of the Depository and a copy of the meeting minutes must be
delivered to PROSPER;
The Agreement must be part of the Depository’s “official record” continuously
since its execution.
a. Allowable Collateral
Eligible securities for collateralization of PROSPER deposits are defined by
Chapter 2257, Texas Government Code, the Public Funds Collateral Act, as
amended and meet the constraints of this Section III. A. 2.
b. Collateral Levels
The market value of pledged collateral must at all times be equal to or greater
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than 105% of the principal and accrued interest for PROSPER balances, less
the applicable level of FDIC insurance.
Letters of Credit shall at all times be equal to or greater than 100% of the total
value of the deposits and accrued interest for PROSPER balances, less the
applicable level of FDIC insurance. Non-renewable Letters of Credit shall
expire not less than two business days after the anticipated deposit withdrawal.
c. Monitoring Collateral Adequacy
PROSPER shall require monthly reports of pledged securities marked to market
using quotes by a recognized market pricing service quoted on the valuation
date from all financial institutions with which PROSPER has collateralized
deposits. Additionally, a monthly collateral report shall be provided by the
custodian for verification of the pledged securities. The Investment Officers
will monitor adequacy of collateralization levels to verify market values and
total collateral positions.
d. Additional Collateral
If the collateral pledged for a deposit falls below adequate levels, as defined
above in Section 4.b., the institution holding the deposit will be notified by the
Investment Officers and will be required to pledge additional securities no later
than the end of the next succeeding business day.
e. Security Substitution
Collateralized deposits often require substitution of securities. Any financial
institution requesting substitution must contact an Investment Officer for
approval and settlement. The substituted security’s value will be calculated and
substitution approved if the substitution maintains a pledged value equal to or
greater than the required security level. An Investment Officer must provide
written notification of the decision to the bank or the safekeeping agent holding
the security prior to any security release. Substitution is allowable for all
transactions, but should be limited, if possible, to minimize potential
administrative problems and transfer expense. The Investment Officers may
limit substitution and assess appropriate fees if substitution becomes excessive
or abusive.
5. Safekeeping
a. Safekeeping Agreement
PROSPER shall contract with a bank or banks for the safekeeping of securities
either owned by PROSPER as a part of its investment portfolio or as a part of
its depository agreements.
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b. Safekeeping of Deposit Collateral
All marketable security collateral securing bank deposits must be held by a
third-party custodian eligible under the Public Funds Collateral Act, and
acceptable to PROSPER, or by a Federal Reserve Bank.
C. Investment Advisers and Securities Dealers
Investment Advisers shall adhere to the spirit, philosophy and specific terms of this
Policy and shall invest within the same “Standard of Care” as defined in Section E. 3.
below. Securities Dealers shall avoid recommending or suggesting transactions
outside that “Standard of Care.”
1. Selection of Investment Advisers
The selection of Investment Advisers will be performed by the Investment Officers.
The Investment Officers will establish criteria to evaluate Investment Advisers
including:
a. Adherence to PROSPER’s policies and strategies,
b. Investment performance and transaction pricing within accepted risk
constraints,
c. Responsiveness to PROSPER’s request for services, information and open
communication,
d. Understanding of the inherent fiduciary responsibility of investing public funds,
and
e. Similarity in philosophy and strategy with PROSPER’s objectives.
Selected Investment Advisers must be registered under the Investment Advisers
Act of 1940 or with the State Securities Board. A contract with an Investment
Adviser may not be for a term longer than two years and any contract, renewal or
extension must be approved by Town Council.
2. Selection of Authorized Securities Dealers
The ENTITY’s governing body shall, at least annually, review, revise, and adopt
a list of qualified broker/dealers (Appendix B) that are authorized to engage in
investment transactions with the ENTITY.
a. Eligibility
Authorized firms may include primary dealers or regional dealers that qualify
under Securities & Exchange Commission Rule 15C3-1 (Uniform Net Capital
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Rule), and qualified depositories.
b. Competitive Environment
It is the policy of PROSPER to require a competitive environment for all
investment activities. Individual investment quotes will be solicited orally, in
writing, electronically, or any combination of these methods.
3. Policy Certification
All local government investment pools and discretionary investment
management firms (business organizations) offering to engage in an investment
transaction with PROSPER will be required to acknowledge in writing that the
firm has received and reviewed PROSPER’s Investment Policy. This
Certification also acknowledges that the business organization has implemented
reasonable procedures and controls in an effort to preclude investment
transactions conducted between PROSPER and the organization that are not
authorized by PROSPER’s investment policy, except to the extent that this
authorization is dependent on an analysis of the makeup of PROSPER’s entire
portfolio, requires an interpretation of subjective investment standards, or relates
to investment transactions of PROSPER that are not made through accounts or
other contractual arrangements over which the business organization has
accepted discretionary investment authority, as required by PFIA.
D. Responsibility and Control
1. Authority to Invest
The Executive Director of Administrative Services, Finance Director, and the
Accounting Manager are the “Investment Officers” of the Town of Prosper.
The PEDC Treasurer and the Finance Director are the “Investment Officers”
of the PEDC. The Investment Officers are authorized to deposit, withdraw,
invest, transfer, execute documentation, and otherwise manage PROSPER’s funds
according to this Policy. The Investment Officers may authorize one or more
Investment Officers to deposit, withdraw or transfer funds out of or into an
investment pool or money market mutual fund in order to meet daily operating
needs of PROSPER in compliance with the established Internal Controls.
2. Prudent Investment Management
The designated Investment Officers shall perform their duties in accordance with
the adopted Investment Policy and internal procedures. In determining whether an
Investment Officer has exercised prudence with respect to an investment decision,
the investment of all funds over which the Investment Officer had responsibility,
rather than the prudence of a single investment shall be considered.
Investment Officers acting in good faith and in accordance with these policies and
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procedures shall be relieved of personal liability.
3. Standard of Care
The standard of care used by PROSPER shall be that as defined in PFIA, Section
2256.006. It states:
“Investments shall be made with judgment and care, under prevailing
circumstances, that a person of prudence, discretion and intelligence would exercise
in the management of the person’s own affairs, not for speculation, but for
investment, considering the probable safety of capital and the probable income to
be derived.”
4. Standards of Ethics
The designated Investment Officers shall act as custodians of the public trust
avoiding any transactions which might involve a conflict of interest, the appearance
of a conflict of interest, or any activity which might otherwise discourage public
confidence. Investment Officers shall refrain from personal business activity that
could conflict with proper execution of the investment program, or which could
impair their ability to make impartial investment decisions. Additionally, all
Investment Officers shall file with the Texas Ethics Commission and the ENTITY’s
governing body a statement disclosing any personal business relationship with a
business organization seeking to sell investments to PROSPER or any relationship
within the second degree by affinity or consanguinity to an individual seeking to
sell investments to PROSPER. For purposes of this subsection, an Investment
Officer has a personal business relationship with business organization if:
a. The Investment Officer owns 10 percent or more of the voting stock or shares
of the business organization or owns $5,000 or more of the fair market value of
the business organization;
b. Funds received by the Investment Officer from the business organization
exceed 10 percent of the Investment Officer’s gross income for the previous
year; or
c. The Investment Officer has acquired from the business organization during the
previous year investments with a book value of $2,500 or more for the personal
account of the Investment Officer.
5. Establishment of Internal Controls
PROSPER’s Investment Officers will maintain a system of internal controls over
the investment activities of PROSPER.
6. Reporting
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Investment performance will be monitored and evaluated by the Investment
Officers. The weighted average yield to maturity will be the standard for calculating
portfolio rate of return. The Investment Officers will provide a quarterly
comprehensive report signed by all Investment Officers to the ENTITY’s
governing body. This investment report shall:
a. Describe in detail the investment position of PROSPER,
b. Contain a summary statement, prepared in compliance with generally accepted
accounting principles, of each pooled fund group that states the:
1. beginning market value of the reporting period;
2. ending market value for the period; and
3. fully accrued interest for the reporting period;
c. State the book value and market value of each separately invested asset at the
end of the reporting period by the type of asset and fund type invested;
d. State the maturity date of each separately invested asset that has a maturity date;
e. State the account or fund or pooled group fund for which each individual
investment was acquired; and
f. State the compliance of the investment portfolio with PROSPER’s Investment
Policy, strategy, and PFIA.
In defining market value, sources independent of the investment provider will
determine valuations and consideration will be given to GASB Statement No. 31.
PROSPER, in conjunction with its annual financial audit, shall perform a
compliance audit of the management controls on investments and adherence to
PROSPER’s Investment Policy. If PROSPER invests in other than money market
mutual funds, investment pools or accounts offered by its depository bank in the
form of certificates of deposits, or money market accounts or similar accounts, the
reports prepared by the Investment Officers shall be formally reviewed at least
annually by an independent auditor, and the result of the review shall be reported
to the ENTITY’s governing body by that auditor.
7. Training
In order to ensure the quality and capability of PROSPER’s investment personnel
making investment decisions, PROSPER shall provide periodic training in
investments for the investment personnel through courses and seminars offered by
approved independent training sources, including: the Government Finance
Officers Association (GFOA), Government Finance Officers Association of Texas
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(GFOAT), Government Treasurers’ Organization of Texas (GTOT), Texas
Municipal League (TML), North Central Texas Council of Governments
(NCTCOG), International City/County Management Association (ICMA), Texas
Society of Certified Public Accountants (TSCPA), American Institute of Certified
Public Accountants (AICPA), and University of North Texas (UNT).
a. The Investment Officers shall:
1. attend at least 10 hours of training relating to the Investment Officers’
responsibilities within 12 months after taking office or assuming duties; and
2. attend an investment training session not less than once in a two-year period
that begins on the first day of the Town’s fiscal year and consists of the two
consecutive fiscal years after that date and receive not less than 8 hours of
instruction relating to investment responsibilities under this subchapter.
b. Training under this section must include education in investment controls,
security risks, strategy risks, market risks, diversification of investment
portfolio and compliance with PFIA.
IV. INVESTMENT STRATEGY STATEMENT
The investment portfolio shall be designed with the objective of attaining a reasonable
market yield at all times, taking into account the investment risk constraints and liquidity
needs of the Town. Return on investment is of lesser importance compared to the safety and
liquidity objectives described in Section II. In order to minimize risk of loss due to interest
rate fluctuations, investment maturities will not exceed the anticipated cash flow
requirements of the fund. Investment guidelines by fund-type are as follows:
A. General, Enterprise, or Operating-type Funds
Operating funds shall have their primary objective to assure that anticipated cash
outflows are matched with the adequate investment liquidity. The secondary objective
is to create a portfolio structure that will experience minimal volatility during changing
economic cycles.
a. Suitability - Any investment eligible in the Investment Policy is suitable for
General, Enterprise, or Operating-type funds.
b. Safety of Principal - All investments shall be of high quality with no perceived
default risk. Market price fluctuations will occur. However, managing the
weighted average days to maturity of each fund’s portfolio to less than one year
and restricting the maximum allowable maturity to two years will minimize the
price volatility of the portfolio.
c. Liquidity - General, Enterprise, or Operating-type Funds require the greatest
short-term liquidity of any of the fund-types. Financial institution deposit
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accounts, short-term investment pools and money market mutual funds will
provide daily liquidity and may be utilized as a competitive yield alternative to
fixed maturity investments.
d. Marketability - Securities with active and efficient secondary markets are
necessary in the event of an unanticipated cash flow requirement.
e. Diversification - Investment maturities should be staggered throughout the
budget cycle to provide cash flow based on the anticipated operating needs of
the Town. Diversifying the appropriate maturity structure up to the two-year
maximum will reduce interest rate risk.
f. Yield - Attaining a competitive market yield for comparable security-types and
portfolio restrictions is the desired objective. The yield of an equally weighted,
rolling three-month Treasury-Bill portfolio will be the minimum yield objective.
B. Capital Project Funds and Special Purpose Funds
Capital project funds and special purpose funds shall have as their primary objective to
assure that anticipated cash outflows are matched with adequate investment liquidity.
The portfolios shall be invested based on cash flow estimates. Funds invested for
capital projects may be from bond proceeds that are subject to arbitrage rebate
regulations.
a. Suitability - Any investment eligible in the Investment Policy is suitable for
Capital Projects Funds.
b. Safety of Principal - All investments will be of high quality with no perceived
default risk. Market price fluctuations will occur. However, by managing
Capital Projects Funds to not exceed the anticipated expenditure schedule, the
market risk of the overall portfolio will be minimized. No stated final investment
maturity shall exceed the shorter of the anticipated expenditure schedule or three
years.
c. Liquidity - Most capital projects programs have reasonably predictable draw
down schedules. Therefore, investment maturities should generally follow the
anticipated cash flow requirements. Financial institution deposit accounts, short
term investment pools and money market mutual funds will provide readily
available funds generally equal to one month’s anticipated cash flow needs, or a
competitive yield alternative for short-term fixed maturity investments. A
singular repurchase agreement may be utilized if disbursements are allowed in
the amount necessary to satisfy any expenditure request. This investment
structure is commonly referred to as a flexible repurchase agreement.
d. Marketability - Securities with active and efficient secondary markets are
necessary in the event of an unanticipated cash flow requirement.
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e. Diversification - Market conditions and arbitrage regulations influence the
attractiveness of staggering the maturity of fixed rate investments for bond
proceeds. Generally, if investment rates exceed the applicable cost of borrowing,
the Town is best served by locking in most investments. If the cost of borrowing
cannot be exceeded, then current market conditions will determine the
attractiveness of diversifying maturities or investing in shorter and larger
amounts. At no time shall the anticipated expenditure schedule be exceeded in
an attempt to bolster yield.
f. Yield - Achieving a positive spread to the cost of borrowing is the desired
objective, within the limits of the Investment Policy’s risk constraints. The yield
of an equally weighted, rolling six-month Treasury-Bill portfolio will be the
minimum yield objective for non-borrowed funds.
C. Debt Service Funds
Debt service funds shall have as the primary objective the assurance of investment
liquidity adequate to cover the debt service obligation on the required payment
date. Investments purchased shall not have a stated final maturity date which exceeds
the debt service payment date.
a. Suitability - Any investment eligible in the Investment Policy is suitable for
Debt Service Funds.
b. Safety of Principal - All investments shall be of high quality with no perceived
default risk. Market price fluctuations will occur. However, by managing Debt
Service Funds to not exceed the debt service payment schedule the market risk
of the overall portfolio will be minimized.
c. Liquidity - Debt Service Funds have predictable payment schedules. Therefore,
investment maturities should not exceed the anticipated cash flow requirements.
Financial institution deposit accounts, short term investments pools and money
market mutual funds may provide a competitive yield alternative for short-term
fixed maturity investments. A singular repurchase agreement may be utilized if
disbursements are allowed in the amount necessary to satisfy any debt service
payment. This investment structure is commonly referred to as a flexible
repurchase agreement.
d. Marketability - Securities with active and efficient secondary markets are not
necessary as the event of an unanticipated cash flow requirement is not probable.
e. Diversification - Market conditions influence the attractiveness of fully
extending maturity to the next “unfunded” payment date. Generally, if
investment rates are anticipated to decrease over time, the Town is best served
by locking in most investments. If the interest rates are potentially rising, then
investing in shorter and larger amounts may provide advantage. At no time shall
the debt service schedule be exceeded in an attempt to bolster yield.
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f. Yield - Attaining a competitive market yield for comparable security-types and
portfolio restrictions is the desired objective. The yield of an equally weighted,
rolling three-month Treasury-Bill portfolio shall be the minimum yield
objective.
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Appendix “A”
Glossary of Cash Management Terms
Accretion – Common investment accounting entry in which the book value of securities purchased
at a discount are gradually written up to the par value. The process has the effect of recording the
discount as income over time.
Accrued Interest – Interest earned, but not yet paid, on an investment.
Active Management – (also called active investing) refers to a portfolio management strategy
where the manager makes specific investments with the goal to time the investment based on
market conditions, monitor the volatility (or risk), and allow for parameters for liquidity. This
will be performed by projecting cash flows to determine liquidity needs and actively monitoring
market conditions for advantageous risk/return options.
Agency – See Federal Agency.
Amortization – Common investment accounting entry in which the book value of securities
purchased at a premium are gradually written down to the par value. The process has the effect of
recording the premium as a reduction to income over time.
Arbitrage – Dealing simultaneously in two markets to take advantage of temporary price
distortions at minimal risk. Also related to IRS regulations governing tax-exempt debt proceeds.
Basis Point – A unit of measurement used in the valuation of fixed-income securities equal to
1/100 of 1 percent of yield; e.g., “1/4” of 1 percent is equal to 25 basis points.
Benchmark – Index used to compare risk and performance to a managed portfolio.
Bid – The indicated price at which a buyer is willing to purchase a security or commodity.
Book Value – The original acquisition cost of an investment plus or minus the accrued accretion
or amortization.
Broker – A financial firm that brings securities buyers and sellers together in return for a fee. The
term “broker” is often used interchangeably with “dealer” to refer to a seller of investment
securities.
Callable Bond – A bond issue in which all or part of its outstanding principal amount may be
redeemed before maturity by the issuer under specified conditions.
Cash Settlement – A transaction which calls for delivery and payment of securities on the same
day that the transaction is initiated.
Collateralization – Process by which a borrower pledges securities, property, or other
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obligations for the purpose of securing the repayment of a loan, deposit and/or security.
Collateralized Mortgage Obligation (CMO) – A derivative mortgage-backed security (MBS)
created from pools of home mortgage loans. A single MBS is divided into multiple classes, each
class containing unique risk profile and security characteristics. A number of CMO classes are
expressly prohibited by Texas State law. Also know as a Real Estate Mortgage Conduit (REMIC).
Commercial Paper – An unsecured short-term promissory note issued by corporations, with
maturities ranging from 1 to 366 days. Commercial paper must carry a minimum rating of A1/P1
in order to be eligible under the Texas Public Funds Investment Act.
Constant Maturity Treasury (CMT) – A calculated average released by the Federal Reserve of
all Treasury yields along a specific maturity point. This calculation is frequently used as a
benchmark for conservative government portfolios.
Coupon Rate – The annual rate of interest received by an investor from the issuer of certain types
of fixed-income securities. Also known as the “interest rate.”
Credit Risk – The risk to an investor that an issuer will default in the payment of interest and/or
principal on a security.
Derivative – Financial instruments whose value is derived from the movement of an underlying
index or security.
Dealer – A dealer, as opposed to a broker, sets as a principal in all securities transactions, buying
and selling for their own account. Often times, the terms “broker” and “dealer” are used
interchangeably to refer to a seller of investments securities.
Delivery Versus Payment (DVP) – A type of securities transaction in which the purchaser pays
for securities at the time of delivery either to the purchaser or his/her security
clearance/safekeeping agent.
Derivative Security – Financial instrument created from, or whose value depends upon, one or
more underlying assets or indices of asset values.
Discount – The amount by which the par value of a security exceeds the price paid for the security.
Diversification – A process of investing assets among a range of investment types by sector,
maturity, and quality rating.
Dollar Weighted Average Maturity (WAM) – The average maturity of all the investments
that comprise a portfolio weighted by the dollar value of each investment.
Fair Market Rate – A documented and verifiable rate of interest which approximates the average
rate which could have been earned on similar investments at the time of the transaction.
Federal Agency – A sub-division of the Federal Government.
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Federal Deposit Insurance Corporation (FDIC) – A federal agency that insures bank deposits,
currently up to $250,000 per account. Texas Public Funds deposits that exceed this amount must
be properly collateralized.
Financial Industry Regulatory Authority (FINRA) - the successor to the National Association
of Securities Dealers, Inc. (NASD). FINRA is a private corporation that focuses on regulatory
oversight of all securities firms that do business with the public; professional training, testing and
licensing of registered persons; arbitration and mediation; market regulation by contract for the
New York Stock Exchange, the NASDAQ Stock Market, Inc., the American Stock Exchange LLC,
and the International Securities Exchange.
Interest Rate – See “Coupon Rate.”
Internal Controls – An internal control structure designed to ensure that the assets of the entity
are protected from loss, theft, or misuse. The internal control structure is designed to provide
reasonable assurance that these objectives are met.
Interlocal Cooperation Act – Law permitting joint participation by local governments providing
one or more government functions within the State. This law [Section 891.001 et seq. of the Texas
Government Code (the “Act”)] has allowed for the creation of investment pools in Texas.
Investment Advisers Act of 1940 – Law which requires all Investment Advisers to be registered
with the SEC or State-specific regulatory agency in order to protect the public from fraud.
Investment Policy – A concise and clear statement of the objectives and parameters formulated
by an investor or investment manager for a portfolio of investment securities. The Texas Public
Funds Investment Act requires that public entities have a written and approved investment policy.
Investment Pool – An entity created under the Interlocal Cooperation Act to invest public funds
jointly on behalf of the entities that participate in the pool.
Liquidity – A liquid investment is one that can be easily and quickly converted to cash without
substantial loss of value. Investment pools, financial institution deposits and money market funds,
which allow for same day withdrawal of cash, are considered extremely liquid.
Local Government Investment Pool (LGIP) – An investment by local governments in which
their money is pooled as a method for managing local funds.
Market Risk - The risk that the value of an investment will rise or decline as a result of changes
in market conditions.
Market Value – An investment’s par amount multiplied by its market price.
Maturity – The date on which payment of a financial obligation is due. The final stated maturity
is the date on which the issuer must retire a debt and pay the face value to the debtholder.
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Money Market Mutual Fund – Mutual funds that invest in accordance with SEC regulations
and guidelines.
Mortgage-Backed Security (MBS) – Security backed by pools of mortgages.
Net Asset Value (NAV) – The value of a mutual fund or investment pool at the end of the business
day. NAV is calculated by adding the market value of all investments in a fund or pool, deducting
expenses, and dividing by the number of shares in the fund or pool.
Offer – An indicated price at which market participants are willing to sell a security. Also referred
to as the “Ask Price.”
Par Value – Face value or principal value of a bond, typically $1,000 per bond. A security’s par
value is multiplied by its coupon rate to determine coupon payment amount.
Passive Management – Involves the creation of a portfolio allocation that is the same as a specific
index to generate a return that is the same as the chosen index instead of outperforming it
Premium – The amount by which the price paid for a security exceeds the security’s par value.
Primary Government Securities Dealer (Primary Dealer) – Large government securities
dealers who are required to submit daily reports of market activity and monthly financial
statements to the New York Federal Reserve Bank. Primary Dealers are required to
continually “make a market” in Treasury securities, buying or selling when asked, thereby
creating a liquid secondary market for US debt obligations.
Principal – The face value or par value of a debt instrument. Also may refer to the amount of
capital invested in a given investment.
Prudent Investor Rule – Refers to an investment principle in the Public Funds Investment Act
outlining the fiduciary responsibilities of Investment Officers.
Repurchase Agreement (repo or RP) – An agreement of one party to sell securities at a specified
price to a second party and a simultaneous agreement of the first party to repurchase the securities
at a specified price or at a specified later date.
Reverse Repurchase Agreement (Reverse Repo) – An agreement of one party to purchase
securities at a specified price from a second party and a simultaneous agreement by the first party
to resell the securities at a specified price to the second party on demand or at a specified date.
Safekeeping – Holding of assets (e.g., securities) by a financial institution on behalf of a client.
Total Return – The sum of all investment income plus changes in the market value of the portfolio.
For mutual funds, return on an investment is composed of share price appreciation plus any
realized dividends or capital gains. This is calculated by taking the following components during
a certain time period: (Price Appreciation) + (Dividends Paid) + (Capital Gains) = (Total Return).
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Treasury Bills – Short term U.S. government non-interest bearing, debt securities with maturities
of one year or shorter . T -Bills pay interest only at maturity. The interest is equal to the face
value minus the purchase price.
Treasury Notes – Intermediate U.S. government debt securities with maturities of one to 10 years.
Treasury notes, or T-notes, are generally issued in terms of 2, 3, 5, 7, and 10 years, and pay interest
every six months until they mature.
Uniform Net Capital Rule – SEC Rule 15C3-1 outlining capital requirements for brokers/dealers.
Volatility – A degree of fluctuation in the price or valuation of securities.
Yield – The current rate of return on an investment generally expressed as an annual percentage.
Yield-to-Call (YTC) – The rate of return an investor earns from a bond assuming the bond is
redeemed (called) prior to its nominal maturity date.
Yield Curve – A graphic representation that depicts the relationship at a given point in time
between yields and maturity for bonds that are identical in every way except maturity. A normal
yield curve may be alternatively referred to as a positive yield curve.
Yield-to-Maturity – The rate of return yielded by an investment held to maturity when both
interest payments and the investor’s purchase price discount or premium are included in the
calculation of return.
Zero-coupon Securities – Security that is issued at a discount and makes no periodic interest
payments. The rate of return consists of a gradual accretion of the principal of the security and is
payable at par upon maturity.
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Appendix “B”
Town of Prosper Authorized Broker/Dealer List
FHN Financial
Financial Northeastern Securities
Great Pacific Securities
Hilltop Securities, Inc.
Multi-Bank Securities, Inc.
Oppenheimer & Co., Inc.
SAMCO Capital Markets
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PROSPER IS A PLACE WHERE EVERYONE MATTERS
TOWN OF PROSPER, TEXAS
and
PROSPER ECONOMIC DEVELOPMENT CORPORATION
INVESTMENT POLICY
JANUARY 286, 20201
Exhibit “A”
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APPENDIX “B” – BANKS/BROKER DEALER QUESTIONAIRE
APPENDIX “C” – RESOLUTION FOR ADOPTION OF INVESTMENT POLICY
APPENDIX “D” – PUBLIC FUNDS INVESTMENT ACT
INVESTMENT POLICY
Table of Contents
PREFACE
5
I. PURPOSE
6-7
A. FORMAL ADOPTION
6
B. SCOPE 6
C. REVIEW AND AMENDMENT 7
D. INVESTMENT STRATEGY 7
II. INVESTMENT OBJECTIVES 7‐8
A. SAFETY OF PRINCIPAL 7
B. MAINTENANCE OF ADEQUATE LIQUIDITY 7
C. RISK OF LOSS 7
D. YIELD 8
III. INVESTMENT POLICIES 8-20
A. AUTHORIZED INVESTMENTS
8-13
B. PROTECTION OF PRINCIPAL 13-16
C. INVESTMENT ADVISERS AND SECURITIES DEALERS 16-18
D. RESPONSIBILITY AND CONTROL 18-20
IV. INVESTMENT STRATEGY 19-20
A. ACTIVE VS. PASSIVE STRATEGY
B. OPERATING FUNDS
C. CONSTRUCTION AND CAPITAL IMPROVEMENT FUNDS
D. DEBT SERVICE FUNDS
21
21
21
22
APPENDIX “A” – GLOSSARY OF TERMS 23-27
Commented [EU1]: Update when finalized.
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PREFACE
The Town of Prosper and the Prosper Economic Development Corporation are separately
chartered, governed, and operated entities. Each ENTITY adheres to its own governing documents
and the Public Funds Investment Act. Each ENTITY additionally seeks to safely and effectively
manage the funds under its control. To achieve those requirements, the governing body of each
ENTITY has legally adopted this Investment Policy.
Throughout this Investment Policy, the two entities shall be singularly referred to as “ENTITY”
and collectively referred to as “PROSPER.”
It is the policy of PROSPER that, giving due regard to the safety and risk of investment, all
available funds shall be invested in conformance with State and Federal Regulations, applicable
Bond Resolution requirements, adopted Investment Policy and adopted Investment Strategy.
Effective cash management is recognized as essential to good fiscal management. A
comprehensive and effective cash management system will be pursued to optimize investment
interest earnings as viable and material revenue to all PROSPER funds. PROSPER’s portfolio
shall be designed and managed in a manner responsive to the public trust and consistent with all
Federal regulations, State of Texas statutes and other legal requirements, including the Town
Charter, Town Ordinances, Articles of Incorporation, and this Policy.
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I. PURPOSE
A. Formal Adoption
This Investment Policy is authorized by PROSPER in accordance with Chapter 2256,
Texas Government Code, the Public Funds Investment Act, herein referred to as
“PFIA”.
B. Scope
This Investment Policy applies to all of the investment activities of PROSPER. These
funds are accounted for in the Town’s Comprehensive Annual Financial Report
(CAFR) and include:
General Fund
Debt Service Funds
Special Revenue Funds
Capital Project Funds
Enterprise Funds
Internal Service Funds
Economic Development Corporation Funds
Any new fund created by the Town
The Town of Prosper may consolidate cash balances from multiple funds to maximize
investment earnings. Investment income will be allocated to the various funds based
on their respective participation and in accordance with generally accepted accounting
principles.
This Policy establishes guidelines for:
1. Who can invest PROSPER funds,
2. How PROSPER funds will be invested, and
3. When and how a periodic review of investments will be made.
In addition to this Policy, bond funds (as defined by the Internal Revenue Service) shall
be managed in accordance with their issuing documentation and all applicable State
and Federal Law.
All investments made with PROSPER funds prior to the adoption of this Investment
Policy shall be held or liquidated as determined to be in the best interest of the financial
well being of PROSPER. PROSPER will also monitor changes in the credit ratings of
its investments quarterly using a number of resources including rating agencies,
broker/dealers or financial publications. PROSPER shall take all prudent measures that
are consistent with its investment policy to liquidate an investment that does not have
the minimum rating.
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C. Review and Amendment
This Policy shall be reviewed annually by the ENTITY’s governing body. The
ENTITY’s governing body shall adopt a written document stating that it has reviewed
and recorded any changes made to the Investment Policy.
D. Investment Strategy
In conjunction with the annual Policy review, the ENTITY’s governing body shall
review the separate written Investment Strategy for each of PROSPER’s funds. The
Investment Strategy must describe the investment objectives for each particular fund
according to the following priorities:
1. Investment suitability,
2. Preservation and safety of principal,
3. Liquidity,
4. Marketability prior to maturity of each investment,
5. Diversification, and
6. Yield.
II. INVESTMENT OBJECTIVES
A. Safety of Principal
The primary objective of all investment activity is the preservation of capital and the
safety of principal in the overall portfolio. Each investment transaction shall seek to
ensure first that capital losses are avoided, whether they are from securities defaults or
erosion of the market value.
B. Maintenance of Adequate Liquidity
C. Risk of Loss
The investment portfolio will remain sufficiently liquid to meet the cash flow
requirements that might be reasonably anticipated. Liquidity shall be achieved by
matching investment maturities with forecasted cash flow requirements; investing in
securities with active secondary markets; and maintaining appropriate portfolio
diversification.
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D.C. Yield Public Trust
All participants in the investment process will seek to act responsibly as custodians of
the public trust. Investment officials will avoid any transactions that might impair
public confidence in the Town’s ability to govern effectively. The governing body
recognizes that in a diversified portfolio, occasional measured losses due to market
volatility are inevitable, and must be considered within the context of the overall
portfolio’s investment return, provided that the adequate diversification has been
implemented and the terms of this policy have been followed.
D. Yield
The investment portfolio shall be designed with the objective of attaining a market rate
of return throughout budgetary and economic cycles, taking into account the
investment risk constraints and liquidity needs. Return on investment is of secondary
importance compared to the safety and liquidity objectives described above. Core
investments are limited to relatively low risk securities in anticipation of earning a fair
return relative to the risk being assumed.
III. INVESTMENT POLICIES
A. Authorized Investments
Investments described below are authorized by PFIA as eligible securities for
PROSPER. In the event an authorized investment loses its required minimum credit
rating, all prudent measures will be taken to liquidate said investment. Additionally,
PROSPER is not required to liquidate investments that were authorized at the time of
purchase in the event that subsequent legislation renders certain securities as no longer
authorized for purchase by the Town. PROSPER’s funds governed by this Policy may
be invested in:
1. Obligations of Governmental Entities (Section 2256.009). Except for the items
listed in 1.e. below, the following are authorized investments for obligations of
governmental agencies:
a. Obligations, including letters of credit, of the United States or its agencies and
instrumentalities, including the Federal Home Loan Banks;
b. Direct obligations of the State of Texas or its agencies and instrumentalities;
c. Other obligations, the principal and interest onf which are unconditionally
guaranteed or insured by, or backed by the full faith and credit of, the State of
Texas or the United States or their respective agencies and instrumentalities,
including obligations that are fully guaranteed or insured by the Federal Deposit
Insurance Corporation or by the explicit full faith and credit of the United
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States;
d. Obligations of states, agencies, counties, cities, and other political subdivisions
of any State having been rated as to investment quality by a nationally
recognized investment rating firm and having received a rating of not less than
“A” or its equivalent;
e. The following are not authorized investments for PROSPER:
1. Obligations whose payments represent the coupon payments on the
outstanding principal balance of the underlying mortgage-backed security
collateral and pays no principal (Interest Only);
2. Obligations whose payments represent the principal stream of cash flow
from the underlying mortgage-backed security collateral and bear no
interest (Principal Only);
3. Collateralized mortgage obligations that have a stated final maturity date of
greater than 10 years; and
4. Collateralized mortgage obligations the interest rate of which is
determined by an index that adjusts opposite to the changes in thea
market index (Inverse Floater).
2. Financial Institution Deposits (Section 2256.010). Certificates of deposit or
share certificates provided the certificate is
a. Certificates of deposit, share certificates, or other forms of deposit provided
the deposit is Iissued by a depository institution that has its main office or a
branch office in Texas that is:
1. Guaranteed or insured by the Federal Deposit Insurance Corporation or its
successor or the National Credit Union Share Insurance Fund or its
successor; or
2. Secured by obligations that are described by 1. (Obligations of
Governmental Entities) above, which are intended to include all direct
Federal agency or instrumentality issued mortgage backed securities, but
excluding those mortgage-backed securities of the nature described in
1.e. above, that have a market value of not less than the uninsured amount
of the deposit; or
3. Secured in any other manner and amount provided by the law for deposits
of PROSPER.
b. In addition to the authority to invest funds in certificates of deposit under
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Subsection “a”, an investment in certificates of deposit made in accordance
with the following conditions is an authorized investment:
1. The funds are invested through:
(a) a broker that has its main office or a branch office in this state and is
selected from a list adopted by the investing entity as required by
Section 2256.025; or
(b) a depository institution that has its main office or a branch office in this
state and that is selected by the investing entity;
2. The broker or the depository institution selected by the investing entity
under Subdivision (1) arranges for the deposit of the funds in certificates of
deposit in one or more federally insured depository institutions, wherever
located, for the account of the investing entity;
3. The full amount of the principal and accrued interest of each of the
certificates of deposit is insured by the United States or an instrumentality
of the United States; and
4. The investing entity appoints the depository institution selected by the
investing entity under Subdivision (1), an entity described by Section
2257.041(d), or a clearing broker-dealer registered with the Securities and
Exchange Commission and operating pursuant to Securities and Exchange
Commission Rule 15c3-3 (17 C.F.R. Section 240.15c3-3) as custodian for
the investing entity with respect to the certificates of deposit issued for the
account of the investing entity.
3. Mutual Funds (2256.014).
a. A no-load money market mutual fund is an authorized investment under this
subchapter if the mutual fund:
1. Is registered with and regulated by the Securities and Exchange Commission;
2. Provides the investing entity with a prospectus and other information
required by the Securities Exchange Act of 1934 (15 U.S.C. Section 78a et
seq.) or the Investment Company Act of 1940 (15 U.S.C. Section 80a-1 et
seq.); and
3. Has a dollar-weighted average stated maturity of 90 days or fewer; and
4.3.Includes in its investment objectives the maintenance of a stable net asset
value of $1.0000 for each share.
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b. In addition to a no-load money market mutual fund permitted as an authorized
investment in Subsection (a), a no-load mutual fund is an authorized investment
under this subchapter if the mutual fund:
5.1.Is registered with the Securities and Exchange Commission;
6.2. Has an average weighted maturity of less than two years;
3. Either:
(a) Is Has a duration of one year or more and is invested exclusively in
obligations approved by this subchapter; or
(b) Has a duration of less than one year and the investment portfolio is
limited to investment grade securities, excluding asset-backed
securities.Is continuously rated as to investment quality by at least
one nationally recognized investment rating firm of not less than AAA
or its equivalent; and
(c)
7.4.Conforms to the requirements set forth in Sections 2256.016(b) and (c)
relating to the eligibility of investment pools to receive and invest funds of
investing entities.
b.c. An Entity is not authorized by this section to:
1. Invest in the aggregate more than 15 percent of its monthly average fund
balance, excluding bond proceeds and reserves and other funds held for debt
service, in mutual funds described in Subsection (b);
2. Invest any portion of bond proceeds, reserves and funds held for debt service,
in mutual funds described in Subsection (b); or
3. Invest its funds or funds under its control, including bond proceeds and
reserves and other funds held for debt service, in any one mutual fund
described in Subsection (a) or (b) in an amount that exceeds 10 percent of
the total assets of the mutual fund.
4. Local Government Investment Pools (2256.016). Eligible investment pools
organized and operating in compliance with PFIA described in section 2256.016
and 2256.019, have been authorized by the Town’s governing body; and, whose
investment philosophy and strategy include seeking to maintain a stable net asset
value of $1.00 per share, and are consistent with this Policy and PROSPER’s
ongoing investment strategy.
5. Commercial Paper (2256.013). Commercial paper is an authorized investment
under this policy if the commercial paper:
a. Has a stated maturity of 270 365 days or fewer from the date of its issuance;
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and
b. Is rated not less than A-1 or P-1 or an equivalent rating by at least:
1. two nationally recognized credit rating agencies; or
2. one nationally recognized credit rating agency and is fully secured by an
irrevocable letter of credit issued by a bank organized and existing under
the laws of the United States or any state.
6. Repurchase Agreements (2256.011). Repurchase agreements arranged in
compliance with PFIA, under the terms of an executed Repurchase Agreement, and
secured in accordance with this Policy.
a. A fully collateralized repurchase agreement is an authorized investment under
PFIA, Subchapter A, if the repurchase agreement:
1. has a defined termination date;
2. is secured by a combination of cash and obligations described by PFIA,
section 2256.009(a)(1); and
3. requires the securities being purchased by the Town to be pledged to the
Town, held in the Town’s name, and deposited at the time the investment is
made with the Town or with the third-party selected and approved by the
Town; and
4. is placed through a primary government securities dealer, as defined by the
Federal Reserve, or a financial institution doing business in this stateTexas.
b. In this section, “repurchase agreement” means a simultaneous agreement to
buy, hold for a specific time, and sell back, at a future date, obligations
described by Section 2256.009(a)(1), at market value at the time the funds are
disbursed of not less than the principal amount of the funds disbursed. The
term includes a direct security repurchase agreement and a reverse Security
repurchase agreement.
c. Notwithstanding any other law, the term of any reverse security repurchase a
agreement may not exceed 90 days after the date the reverse security
repurchase agreement is delivered.
d. Money received by an entity under the terms of a reverse security repurchase
agreement shall be used to acquire additional authorized investments, but the
term of the authorized investments acquired must mature not later than the
expiration date stated in the reverse security repurchase agreement.
7. Guaranteed Investment Contracts (2256.015).
a. A guaranteed investment contract is an authorized investment for bond proceeds
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under this subchapter if the guaranteed investment contract:
1. Has a defined termination date;
2. Is secured by obligations described by Section 2256.009(a)(1), excluding
those obligations described by Section 2256.009(b), in an amount at least
equal to the amount of bond proceeds invested under the contract; and
3. Is pledged to the entity and deposited with the Town or with a third party
selected and approved by the Town.
b. Bond proceeds, other than bond proceeds representing reserves and funds
maintained for debt service purposes, may not be invested under this subchapter
in a guaranteed investment contract with a term of longer than five years from
the date of issuance of the bonds.
c. To be eligible as an authorized investment:
1. The governing body of the Town must specifically authorize guaranteed
investment contracts as an eligible investment in the order, ordinance, or
resolution authorizing the issuance of bonds;
2. The Town must receive bids from at least three separate providers with no
material financial interest in the bonds from which proceeds were received;
3. The Town must purchase the highest yielding guaranteed investment
contract for which a qualifying bid is received;
4. The price of the guaranteed investment contract must take into account the
reasonably expected drawdown schedule for the bond proceeds to be
invested; and
5. The provider must certify the administrative costs reasonably expected to
be paid to third parties in connection with the guaranteed investment
contract.
B. Protection of Principal
PROSPER shall seek to control the risk of loss due to failure of a security issuer or
grantor. Such risk shall be controlled by investing only in the safest types of securities
as defined in the Policy; by collateralization as required by law; and through portfolio
diversification by maturity and type.
The purchase of individual securities shall be executed “Delivery versus Payment”
(DVP) through PROSPER’s Safekeeping Agent. By so doing, PROSPER’s funds are
not released until PROSPER has received, through the Safekeeping Agent, the
securities purchased.
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1. Diversification by Investment Type
Diversification by investment type shall be maintained by ensuring an active and
efficient secondary market in portfolio investments and by controlling the market
and opportunity risks associated with specific investment types.
Bond proceeds may be invested in a single security or investment if PROSPER
determines that such an investment is necessary to comply with Federal arbitrage
restrictions or to facilitate arbitrage record keeping and calculation.
2. Diversification by Investment Maturity
In order to minimize risk of loss due to interest rate fluctuations, investment
maturities will not exceed the anticipated cash flow requirements of the funds.
Generally, PROSPER will not directly invest in securities maturing more than five
years from the date of purchase.
Maturity guidelines by fund type are discussed in Section IV, Investment Strategy
Statement.
3. Ensuring Liquidity
Liquidity shall be achieved by anticipating cash flow requirements, by investing in
securities with active secondary markets and by investing in eligible financial
institution deposit accounts, money market mutual funds, and local government
investment pools.
A security may be liquidated to meet unanticipated cash requirements, to redeploy
cash into other investments expected to outperform current holdings, or otherwise
to adjust the portfolio.
4. Depository Agreements
Consistent with the requirements of State Law, PROSPER requires all bank
deposits to be federally insured or collateralized with eligible securities. Financial
institutions serving as PROSPER’s Depositories will be required to sign a
Depository Agreement with PROSPER and PROSPER’s safekeeping agent. The
safekeeping portion of the Agreement shall define PROSPER’s rights to the
collateral in case of default, bankruptcy, or closing and shall establish a perfected
security interest in compliance with Federal and State regulations, including:
The Agreement must be in writing;
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The Agreement has to be executed by the Depository and PROSPER
contemporaneously with the acquisition of the asset;
The Agreement must be approved by the Board of Directors or the designated
committee of the Depository and a copy of the meeting minutes must be
delivered to PROSPER;
The Agreement must be part of the Depository’s “official record” continuously
since its execution.
a. Allowable Collateral
Eligible securities for collateralization of PROSPER deposits are defined by
Chapter 2257, Texas Government Code, the Public Funds Collateral Act, as
amended and meet the constraints of this Section III. A. 2.
b. Collateral Levels
The market value of pledged collateral must at all times be equal to or greater
than 105% of the principal and accrued interest for PROSPER balances, less
the applicable level of FDIC insurance.
Letters of Credit shall at all times be equal to or greater than 100% of the total
value of the deposits and accrued interest for PROSPER balances, less the
applicable level of FDIC insurance. Non-renewable Letters of Credit shall
expire not less than two business days after the anticipated deposit withdrawal.
c. Monitoring Collateral Adequacy
PROSPER shall require monthly reports of pledged securities marked to market
using quotes by a recognized market pricing service quoted on the valuation
date from all financial institutions with which PROSPER has collateralized
deposits. Additionally, a monthly collateral report shall be provided by the
custodian for verification of the pledged securities. The Investment Officers
will monitor adequacy of collateralization levels to verify market values and
total collateral positions.
d. Additional Collateral
If the collateral pledged for a deposit falls below adequate levels, as defined
above in Section 4.b., the institution holding the deposit will be notified by the
Investment Officers and will be required to pledge additional securities no later
than the end of the next succeeding business day.
e. Security Substitution
Collateralized deposits often require substitution of securities. Any financial
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institution requesting substitution must contact an Investment Officer for
approval and settlement. The substituted security’s value will be calculated and
substitution approved if the substitution maintains a pledged value equal to or
greater than the required security level. An Investment Officer must provide
written notification of the decision to the bank or the safekeeping agent holding
the security prior to any security release. Substitution is allowable for all
transactions, but should be limited, if possible, to minimize potential
administrative problems and transfer expense. The Investment Officers may
limit substitution and assess appropriate fees if substitution becomes excessive
or abusive.
5. Safekeeping
a. Safekeeping Agreement
PROSPER shall contract with a bank or banks for the safekeeping of securities
either owned by PROSPER as a part of its investment portfolio or as a part of
its depository agreements.
b. Safekeeping of Deposit Collateral
All marketable security collateral securing bank deposits must be held by a
third-party custodian bank eligible under the Public Funds Collateral Act, and
acceptable to and under contract with PROSPER, or by a Federal Reserve Bank.
C. Investment Advisers and Securities Dealers
Investment Advisers shall adhere to the spirit, philosophy and specific terms of this
Policy and shall invest within the same “Standard of Care” as defined in Section E. 3.
below. Securities Dealers shall avoid recommending or suggesting transactions
outside that “Standard of Care.”
1. Selection of Investment Advisers
The selection of Investment Advisers will be performed by the Investment Officers.
The Investment Officers will establish criteria to evaluate Investment Advisers
including:
a. Adherence to PROSPER’s policies and strategies,
b. Investment performance and transaction pricing within accepted risk
constraints,
c. Responsiveness to PROSPER’s request for services, information and open
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communication,
d. Understanding of the inherent fiduciary responsibility of investing public funds,
and
e. Similarity in philosophy and strategy with PROSPER’s objectives.
Selected Investment Advisers must be registered under the Investment Advisers
Act of 1940 or with the State Securities Board. A contract with an Investment
Adviser may not be for a term longer than two years and any contract, renewal or
extension must be approved by Town Council.
2. Selection of Authorized Securities Dealers
The ENTITY’s governing body or its Investment Officers acting as the ENTITY’s
Investment Committee shall, at least annually, review, revise, and adopt a list of
qualified broker/dealers (Appendix B)and financial institutions that are authorized
to engage in investment transactions with the ENTITY.
a. Eligibility
Authorized firms may include primary dealers or regional dealers that qualify
under Securities & Exchange Commission Rule 15C3-1 (Uniform Net Capital
Rule), and qualified depositories.
b. Documentation Requirements
Brokers/dealers and financial institutions requesting to become qualified to
transact investment business with PROSPER shall be required to provide:
1. a completed Broker/Dealer Questionnaire (Appendix B) that provides
information regarding creditworthiness, experience and reputation; and
2. a Certification stating the firm has received, reviewed, understood and
agrees to comply with PROSPER’s investment policy. This Certification
also acknowledges that the business organization has implemented
reasonable procedures and controls in an effort to preclude investment
transactions conducted between PROSPER and the organization that are not
authorized by PROSPER’s investment policy, except to the extent that this
authorization is dependent on an analysis of the makeup of PROSPER’s
entire portfolio or requires an interpretation of subjective investment
standards; and
3. Provide an audited financial statement for the most recent period; and
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4. Proof of certification by the National Association of Securities Dealers
(NASD); and
5. Proof of current registration with the State of Texas Securities
Commission.
PROSPER shall not enter into an investment transaction with a business
organization prior to receiving the written instruments described above.
c.b.Competitive EnvironmentBids
It is the policy of PROSPER to require a competitive bidding environment for
all investment activities. Individual investment quotes will be solicited orally, in
writing, electronically, or any combination of these methods for all individual
security purchases and sales except for: transactions
with money market mutual funds and local government investment pools.
3. Policy Certification
All local government investment pools and discretionary investment
management firms (business organizations) offering to engage in an investment
transaction with PROSPER will be required to acknowledge in writing that the
firm has received and reviewed PROSPER’s Investment Policy. This
Certification also acknowledges that the business organization has implemented
reasonable procedures and controls in an effort to preclude investment
transactions conducted between PROSPER and the organization that are not
authorized by PROSPER’s investment policy, except to the extent that this
authorization is dependent on an analysis of the makeup of PROSPER’s entire
portfolio, requires an interpretation of subjective investment standards, or relates
to investment transactions of PROSPER that are not made through accounts or
other contractual arrangements over which the business organization has
accepted discretionary investment authority, as required by PFIA.
D. Responsibility and Control
1. Authority to Invest
The Executive Director of Administrative Services, Finance Director, and the
Accounting Manager are the “Investment Officers” of the Town of Prosper.
The PEDC Treasurer and the Finance Director are the “Investment Officers”
of the PEDC. The Investment Officers are authorized to deposit, withdraw,
invest, transfer, execute documentation, and otherwise manage PROSPER’s funds
according to this Policy. The Investment Officers may authorize one or more
Investment Officers to deposit, withdraw or transfer funds out of or into an
investment pool or money market mutual fund in order to meet daily operating
needs of PROSPER in compliance with the established Internal Controls.
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2. Prudent Investment Management
The designated Investment Officers shall perform their duties in accordance with
the adopted Investment Policy and internal procedures. In determining whether an
Investment Officer has exercised prudence with respect to an investment decision,
the investment of all funds over which the Investment Officer had responsibility,
rather than the prudence of a single investment shall be considered.
Investment Officers acting in good faith and in accordance with these policies and
procedures shall be relieved of personal liability.
3. Standard of Care
The standard of care used by PROSPER shall be that as defined in PFIA, Section
2256.006. It states:
“Investments shall be made with judgment and care, under prevailing
circumstances then prevailing, that a person of prudence, discretion and
intelligence would exercise in the management of the person’s own affairs, not for
speculation, but for investment, considering the probable safety of capital and the
probable income to be derived.”
4. Standards of Ethics
The designated Investment Officers shall act as custodians of the public trust
avoiding any transactions which might involve a conflict of interest, the appearance
of a conflict of interest, or any activity which might otherwise discourage public
confidence. Investment Officers shall refrain from personal business activity that
could conflict with proper execution of the investment program, or which could
impair their ability to make impartial investment decisions. Additionally, all
Investment Officers shall file with the Texas Ethics Commission and the ENTITY’s
governing body a statement disclosing any personal business relationship with a
business organization seeking to sell investments to PROSPER or any relationship
within the second degree by affinity or consanguinity to an individual seeking to
sell investments to PROSPER. For purposes of this subsection, an Investment
Officer has a personal business relationship with business organization if:
a. The Investment Officer owns 10 percent or more of the voting stock or shares
of the business organization or owns $5,000 or more of the fair market value of
the business organization;
b. Funds received by the Investment Officer from the business organization
exceed 10 percent of the Investment Officer’s gross income for the previous
year; or
c. The Investment Officer has acquired from the business organization during the
previous year investments with a book value of $2,500 or more for the personal
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account of the Investment Officer.
5. Establishment of Internal Controls
PROSPER’s Investment Officers will maintain a system of internal controls over
the investment activities of PROSPER.
6. Reporting
Investment performance will be monitored and evaluated by the Investment
Officers. The weighted average yield to maturity will be the standard for calculating
portfolio rate of return. The Investment Officers will provide a quarterly
comprehensive report signed by all Investment Officers to the ENTITY’s
governing body. This investment report shall:
a. Describe in detail the investment position of PROSPER,
b. Contain a summary statement, prepared in compliance with generally accepted
accounting principles, of each pooled fund group that states the:
1. beginning market value of the reporting period;
2. ending market value for the period; and
3. fully accrued interest for the reporting period;
c. State the book value and market value of each separately invested asset at the
end of the reporting period by the type of asset and fund type invested;
d. State the maturity date of each separately invested asset that has a maturity date;
e. State the account or fund or pooled group fund in the state agency or local
government for which each individual investment was acquired; and
f. State the compliance of the investment portfolio with PROSPER’s Investment
Policy, strategy, and PFIA.
In defining market value, sources independent of the investment provider will
determine valuations and consideration will be given to GASB Statement No. 31.
PROSPER, in conjunction with its annual financial audit, shall perform a
compliance audit of the management controls on investments and adherence to
PROSPER’s Investment Policy. If PROSPER invests in other than money market
mutual funds, investment pools or accounts offered by its depository bank in the
form of certificates of deposits, or money market accounts or similar accounts, the
reports prepared by the Investment Officers shall be formally reviewed at least
annually by an independent auditor, and the result of the review shall be reported
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to the ENTITY’s governing body by that auditor.
7. Training
In order to einsure the quality and capability of PROSPER’s investment personnel
making investment decisions, PROSPER shall provide periodic training in
investments for the investment personnel through courses and seminars offered by
approved independent training sources, including: the Government Finance
Officers Association ( GFOA), Government Finance Officers Association of Texas
(GFOAT), Government Treasurers’ Organization of Texas (GTOT), Texas
Municipal League (TML), North Central Texas Council of Governments
(NCTCOG), International City/County Management Association (ICMA), Texas
Society of Certified Public Accountants (TSCPA), American Institute of Certified
Public Accountants (AICPA), orand University of North Texas (any
independent source or institute of higher learning approved by the Finance
DirectorUNT).
a. The Investment Officers shall:
1. attend at least 10 hours of training relating to the Investment Officers’
responsibilities within 12 months after taking office or assuming duties; and
2. attend an investment training session not less than once in a two-year period
that begins on the first day of the Town’s fiscal year and consists of the two
consecutive fiscal years after that date and receive not less than 8 hours of
instruction relating to investment responsibilities under this subchapter
from an independent source approved by the governing body of the local
government or a designated investment committee advising the investment
officer as provided for in the investment policy of the local government.
b. Training under this section must include education in investment controls,
security risks, strategy risks, market risks, diversification of investment
portfolio and compliance with PFIA.
IV. INVESTMENT STRATEGY STATEMENT
The investment portfolio shall be designed with the objective of attaining a reasonable market
yield at all times, taking into account the investment risk constraints and liquidity needs of
the Town. Return on investment is of lesser importance compared to the safety and liquidity
objectives described in Section II. In order to minimize risk of loss due to interest rate
fluctuations, investment maturities will not exceed the anticipated cash flow requirements
of the fund. Investment guidelines by fund-type are as follows:
Formatted: Condensed by 0.05 pt
Formatted: Condensed by 0.05 pt
Formatted: Condensed by 0.05 pt
Formatted: Condensed by 0.05 pt
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E. Active vs. Passive Strategy
Prosper intends to pursue an active vs. passive portfolio management philosophy.
Active management means that the financial markets will be monitored by
investment officials and investments will be purchased and sold based on the Town’s
parameters for liquidity and based on market conditions. All marketable securities
purchased shall have active secondary markets, unless a specific cash outflow is
being matched with an investment that will be held to maturity to meet that obligation.
Securities may be purchased as a new issue or in the secondary markets. Securities may
be sold before they mature if market conditions present an opportunity to benefit
from the trade or if changes in the market warrant the sale of securities to avoid future
losses. Securities may be purchased with the intent from the beginning to sell them
prior to maturity or with the expectation that the security would likely be called prior
to maturity under the analyzed market scenario. Market and credit risk shall be
minimized by diversification. Diversification by market sector and security types,
as well as maturity, will be used to protect Prosper from credit and market risk in
order to meet liquidity requirements. The portfolio will be structured to benefit from
anticipated market conditions and to achieve a reasonable return.
F.A. General, Enterprise, or Operating-type Funds
Operating funds shall have their primary objective to assure that anticipated cash
outflows are matched with the adequate investment liquidity. The secondary objective
is to create a portfolio structure that will experience minimal volatility during changing
economic cycles. These objectives may be accomplished by purchasing high quality,
short to medium term securities in a laddered (maturities coming due regularly and
staggered to match cash outflows) or barbell (maturities that are placed very short term
and maturities that are longer term, such that the average achieves cash flows and
income similar to buying in the middle of those maturity spectrums) maturity
structure and by diversification among market sectors. The dollar-weighted average
maturity of the operating funds, based on the stated final maturity date of each security,
will be calculated and limited to one year or less.
a. Suitability - Any investment eligible in the Investment Policy is suitable for
General, Enterprise, or Operating-type funds.
b. Safety of Principal - All investments shall be of high quality with no perceived
default risk. Market price fluctuations will occur. However, managing the
weighted average days to maturity of each fund’s portfolio to less than one year
and restricting the maximum allowable maturity to two years will minimize the
price volatility of the portfolio.
c. Liquidity - General, Enterprise, or Operating-type Funds require the greatest
short-term liquidity of any of the fund-types. Financial institution deposit
accounts, short-term investment pools and money market mutual funds will
provide daily liquidity and may be utilized as a competitive yield alternative to
fixed maturity investments.
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d. Marketability - Securities with active and efficient secondary markets are
necessary in the event of an unanticipated cash flow requirement.
e. Diversification - Investment maturities should be staggered throughout the
budget cycle to provide cash flow based on the anticipated operating needs of
the Town. Diversifying the appropriate maturity structure up to the two-year
maximum will reduce interest rate risk.
a.f. Yield - Attaining a competitive market yield for comparable security-types and
portfolio restrictions is the desired objective. The yield of an equally weighted,
rolling three-month Treasury-Bill portfolio will be the minimum yield objective.
G.B. Capital Project Funds and Special Purpose Funds
Capital project funds and special purpose funds shall have as their primary objective to
assure that anticipated cash outflows are matched with adequate investment liquidity.
These portfolios should have liquid securities to allow for unanticipated project
expenditures or accelerated project outlays due to a better than expected or changed
construction schedule. The portfolios shall be invested based on cash flow estimates.
The dollar-weighted average life of the portfolio should be matched to that of the
duration of the liabilities. Funds invested for capital projects may be from bond
proceeds that are subject to arbitrage rebate regulations.
a. Suitability - Any investment eligible in the Investment Policy is suitable for
Capital Projects Funds.
b. Safety of Principal - All investments will be of high quality with no perceived
default risk. Market price fluctuations will occur. However, by managing
Capital Projects Funds to not exceed the anticipated expenditure schedule, the
market risk of the overall portfolio will be minimized. No stated final investment
maturity shall exceed the shorter of the anticipated expenditure schedule or three
years.
c. Liquidity - Most capital projects programs have reasonably predictable draw
down schedules. Therefore, investment maturities should generally follow the
anticipated cash flow requirements. Financial institution deposit accounts, short
term investment pools and money market mutual funds will provide readily
available funds generally equal to one month’s anticipated cash flow needs, or a
competitive yield alternative for short-term fixed maturity investments. A
singular repurchase agreement may be utilized if disbursements are allowed in
the amount necessary to satisfy any expenditure request. This investment
structure is commonly referred to as a flexible repurchase agreement.
d. Marketability - Securities with active and efficient secondary markets are
necessary in the event of an unanticipated cash flow requirement.
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e. Diversification - Market conditions and arbitrage regulations influence the
attractiveness of staggering the maturity of fixed rate investments for bond
proceeds. Generally, if investment rates exceed the applicable cost of borrowing,
the Town is best served by locking in most investments. If the cost of borrowing
cannot be exceeded, then current market conditions will determine the
attractiveness of diversifying maturities or investing in shorter and larger
amounts. At no time shall the anticipated expenditure schedule be exceeded in
an attempt to bolster yield.
f. Yield - Achieving a positive spread to the cost of borrowing is the desired
objective, within the limits of the Investment Policy’s risk constraints. The yield
of an equally weighted, rolling six-month Treasury-Bill portfolio will be the
minimum yield objective for non-borrowed funds.
H.C. Debt Service Funds
Debt service funds shall have as the primary objective the assurance of investment
liquidity adequate to cover the debt service obligation on the required payment
date. Securities Investments purchased shall not have a stated final maturity date
which exceeds the debt service payment date.
a. Suitability - Any investment eligible in the Investment Policy is suitable for
Debt Service Funds.
b. Safety of Principal - All investments shall be of high quality with no perceived
default risk. Market price fluctuations will occur. However, by managing Debt
Service Funds to not exceed the debt service payment schedule the market risk
of the overall portfolio will be minimized.
c. Liquidity - Debt Service Funds have predictable payment schedules. Therefore,
investment maturities should not exceed the anticipated cash flow requirements.
Financial institution deposit accounts, short term investments pools and money
market mutual funds may provide a competitive yield alternative for short-term
fixed maturity investments. A singular repurchase agreement may be utilized if
disbursements are allowed in the amount necessary to satisfy any debt service
payment. This investment structure is commonly referred to as a flexible
repurchase agreement.
d. Marketability - Securities with active and efficient secondary markets are not
necessary as the event of an unanticipated cash flow requirement is not probable.
e. Diversification - Market conditions influence the attractiveness of fully
extending maturity to the next “unfunded” payment date. Generally, if
investment rates are anticipated to decrease over time, the Town is best served
by locking in most investments. If the interest rates are potentially rising, then
investing in shorter and larger amounts may provide advantage. At no time shall
the debt service schedule be exceeded in an attempt to bolster yield.
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f. Yield - Attaining a competitive market yield for comparable security-types and
portfolio restrictions is the desired objective. The yield of an equally weighted,
rolling three-month Treasury-Bill portfolio shall be the minimum yield
objective.
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Appendix “A”
Glossary of Cash Management Terms
Accretion – Common investment accounting entry in which the book value of securities purchased
at a discount are gradually written up to the par value. The process has the effect of recording the
discount as income over time.
Accrued Interest – Interest earned, but not yet paid, on an investment bond.
Active Management – (also called active investing) refers to a portfolio management strategy
where the manager makes specific investments with the goal to time the investment based on
market conditions, monitor the volatility (or risk), and allow for parameters for liquidity. This
will be performed by preparing 30 dayprojecting cash flows to determine the liquidity needs and
actively bid out types of investments the Town will invest in based on the marketmonitoring
market conditions for advantageous risk/return options. Awarding the bid to the highest yield
while monitoring the risk.
Agency – See Federal Agency.
Amortization – Common investment accounting entry in which the book value of securities
purchased at a premium are gradually written down to the par value. The process has the effect of
recording the premium as a reduction to income over time.
Arbitrage – Dealing simultaneously in the same product in two markets to take advantage of
temporary price distortions at minimal risk. Also related to IRS regulations governing tax-exempt
debt proceeds.
Basis Point – A unit of measurement used in the valuation of fixed-income securities equal to
1/100 of 1 percent of yield; e.g., “1/4” of 1 percent is equal to 25 basis points.
Benchmark – Index used to compare risk and performance to a managed portfolio.
Bid – The indicated price at which a buyer is willing to purchase a security or commodity.
Book Value – The original acquisition cost of an investment plus or minus the accrued
amortization or accretion or amortization.
Broker – A financial firm that brings securities buyers and sellers together in return for a fee. The
term “broker” is often used interchangeably with “dealer” to refer to a seller of investment
securities.
Callable Bond – A bond issue in which all or part of its outstanding principal amount may be
redeemed before maturity by the issuer under specified conditions.
Cash Settlement – A transaction which calls for delivery and payment of securities on the same
day that the transaction is initiated.
Page 137
Item 9.
Resolution No. 2021- , Page 27
Collateralization – Process by which a borrower pledges securities, property, or other
obligationsdeposits for the purpose of securing the repayment of a loan, deposit and/or security.
Collateralized Mortgage Obligation (CMO) – A derivative mortgage-backed security (MBS)
created from pools of home mortgage loans. A single MBS is divided into multiple classes, each
class containing unique risk profile and security characteristics. A number of CMO classes are
expressly prohibited by Texas State law. Also know as a Real Estate Mortgage Conduit (REMIC).
Commercial Paper – An unsecured short-term promissory note issued by corporations, with
maturities ranging from 1 to 270 366 days. Commercial paper must carry a minimum rating of
A1/P1 in order to be eligible under the Texas Public Funds Investment Act.
Constant Maturity Treasury (CMT) – A calculated average released by the Federal Reserve of
all Treasury yields along a specific maturity point. This calculation is frequently used as a
benchmark for conservative government portfolios.
Coupon Rate – The annual rate of interest received by an investor from the issuer of certain types
of fixed-income securities. Also known as the “interest rate.”
Credit Risk – The risk to an investor that an issuer will default in the payment of interest and/or
principal on a security.
Derivative – Financial instruments whose value is derived from the movement of an underlying
index or security.
Dealer – A dealer, as opposed to a broker, sets as a principal in all securities transactions, buying
and selling for their own account. Often times, the terms “broker” and “dealer” are used
interchangeably to refer to a seller of investments securities.
Delivery Versus Payment (DVP) – A type of securities transaction in which the purchaser pays
for securities at the time of delivery either to the purchaser or his/her security
clearance/safekeeping agentcustodian.
Derivative Security – Financial instrument created from, or whose value depends upon, one or
more underlying assets or indices of asset values.
Discount – The amount by which the par value of a security exceeds the price paid for the security.
Diversification – A process of investing assets among a range of security investment types by sector,
maturity, and quality rating.
Dollar Weighted Average Maturity (WAM) – The average maturity of all the
investmentssecurities that comprise a portfolio weighted by the dollar value of each
investmentsecurity.
Page 138
Item 9.
Resolution No. 2021- , Page 28
Fair Market Rate – A documented and verifiable rate of interest which approximates the average
rate which could have been earned on similar investments at the time of the transaction.
Federal Agency – A sub-division of the Federal Governmentdebt instrument that carries a
rating of AAA because it is government sponsored.
Federal Deposit Insurance Corporation (FDIC) – A federal agency that insures bank deposits,
currently up to $250,000 per account. Texas Public Funds deposits that exceed this amount must
be properly collateralized with investment securities or insured through a surety bond.
Financial Industry Regulatory Authority (FINRA) - the successor to the National Association
of Securities Dealers, Inc. (NASD). FINRA is a private corporation that focuses on regulatory
oversight of all securities firms that do business with the public; professional training, testing and
licensing of registered persons; arbitration and mediation; market regulation by contract for the
New York Stock Exchange, the NASDAQ Stock Market, Inc., the American Stock Exchange LLC,
and the International Securities Exchange.
Interest Rate – See “Coupon Rate.”
Internal Controls – An internal control structure designed to ensure that the assets of the entity
are protected from loss, theft, or misuse. The internal control structure is designed to provide
reasonable assurance that these objectives are met.
Interlocal Cooperation Act – Law permitting joint participation by local governments providing
one or more government functions within the State. This law [Section 891.001 et seq. of the Texas
Government Code (the “Act”)] has allowed for the creation of investment pools in Texas.
Investment Advisers Act of 1940 – Law which requires all Investment Advisers to be registered
with the SEC or State-specific regulatory agency in order to protect the public from fraud.
Investment Policy – A concise and clear statement of the objectives and parameters formulated
by an investor or investment manager for a portfolio of investment securities. The Texas Public
Funds Investment Act requires that public entities have a written and approved investment policy.
Investment Pool – An entity created under the Interlocal Cooperation Act to invest public funds
jointly on behalf of the entities that participate in the pool.
Liquidity – A liquid investment is one that can be easily and quickly converted to cash without
substantial loss of value. Investment pools, financial institution deposits and money market funds,
which allow for same day withdrawal of cash, are considered extremely liquid.
Local Government Investment Pool (LGIP) – An investment by local governments in which
their money is pooled as a method for managing local funds.
Market Risk - The risk that the value of an investment security will rise or decline as a result
of changes in market conditions.
Page 139
Item 9.
Resolution No. 2021- , Page 29
Market Value – An investment’ssecurity’s par amount multiplied by its market price.
Master Repurchase Agreement – A written contract covering all future transactions between the
two parties to a repurchase agreement.
Maturity – The date on which payment of a financial obligation is due. The final stated maturity
is the date on which the issuer must retire a bond debt and pay the face value to the
bondholderdebtholder. See “Weighted Average Maturity.”
Money Market Mutual Fund – Mutual funds that invest in accordance with SEC regulations
and guidelines.solely in money market instruments (short term debt instruments, such as Treasury
bills, commercial paper, bankers’ acceptance, repos and federal funds).
Mortgage-Backed Security (MBS) – Security backed by pools of home loan mortgages.
Net Asset Value (NAV) – The value of a mutual fund or investment pool at the end of the business
day. NAV is calculated by adding the market value of all securities investments in a fund or pool,
deducting expenses, and dividing by the number of shares in the fund or pool.
Offer – An indicated price at which market participants are willing to sell a security. Also referred
to as the “Ask Price.”
Par Value – Face value or principal value of a bond, typically $1,000 per bond. A security’s par
value is multiplied by its coupon rate to determine coupon payment amount.
Passive Management – Involves the creation of a portfolio allocation that is the same as a specific
index to generate a return that is the same as the chosen index instead of outperforming it. Passive
investing involves leaving high cash balance in banks or pools and not taking advantage of spreads
in the market through other investment types.
Premium – The amount by which the price paid for a security exceeds the security’s par value.
Primary Government Securities Dealer (Primary Dealer) – One of 20 (as of 02/2011 ) lLarge
government securities dealers who are required to submit daily reports of market activity and
monthly financial statements to the New York Federal Reserve Bank. Primary Dealers are
required to continually “make a market” in Treasury securities, buying or selling when asked,
thereby creating a liquid secondary market for US debt obligations.
Principal – The face value or par value of a debt instrument. Also may refer to the amount of
capital invested in a given investmentsecurity.
Prudent Investor Rule – Refers to an investment principle in the Public Funds Investment Act
outlining the fiduciary responsibilities of Investment Officers.
Regular Way Delivery – Securities settlement that calls for delivery and payment on the third
Page 140
Item 9.
Resolution No. 2021- , Page 30
business day following the trade date (T + 3); payment on a T + 1 basis is currently under
consideration. Mutual funds are settled on a same day basis; government securities are settled on
the next business day.
Repurchase Agreement (repo or RP) – An agreement of one party to sell securities at a specified
price to a second party and a simultaneous agreement of the first party to repurchase the securities
at a specified price or at a specified later date.
Reverse Repurchase Agreement (Reverse Repo) – An agreement of one party to purchase
securities at a specified price from a second party and a simultaneous agreement by the first party
to resell the securities at a specified price to the second party on demand or at a specified date.
Safekeeping – Holding of assets (e.g., securities) by a financial institution on behalf of a client.
Total Return – The sum of all investment income plus changes in the capital market value of the
portfolio. For mutual funds, return on an investment is composed of share price appreciation
plus any realized dividends or capital gains. This is calculated by taking the following components
during a certain time period: (Price Appreciation) + (Dividends Paid) + (Capital Gains) = (Total
Return).
Treasury Bills – Short term U.S. government non-interest bearing, debt securities with maturities
of no longer than one year or shorterand issued with a minimum purchase of $100. T-Bills pay
interest only at maturity. The interest is equal to the face value minus the purchase price.
Auctions of four week, 13 week and 26 week bills are every week, while auctions of 52 week
bills are done every four weeks. The yields on these bills are monitored closely in the money
markets for signs of interest rate trends.
Treasury Notes – Intermediate U.S. government debt securities with maturities of one to 10 years
and issued with a minimum purchase of $100. Treasury notes, or T-notes, are generally issued in
terms of 2, 3, 5, 7, and 10 years, and pay interest every six months until they mature.
Uniform Net Capital Rule – SEC Rule 15C3-1 outlining capital requirements for brokers/dealers.
Volatility – A degree of fluctuation in the price and or valuation of securities.
Yield – The current rate of return on an investment security generally expressed as an annual
percentage of the security’s face value.
Yield-to-Call (YTC) – The rate of return an investor earns from a bond assuming the bond is
redeemed (called) prior to its nominal maturity date.
Yield Curve – A graphic representation that depicts the relationship at a given point in time
between yields and maturity for bonds that are identical in every way except maturity. A normal
yield curve may be alternatively referred to as a positive yield curve.
Yield-to-Maturity – The rate of return yielded by an investment debt security held to maturity
when both interest payments and the investor’s potential capital gain or losspurchase price discount
Page 141
Item 9.
Resolution No. 2021- , Page 31
or premium are included in the calculation of return.
Zero-coupon Securities – Security that is issued at a discount and makes no periodic interest
payments. The rate of return consists of a gradual accretion of the principal of the security and is
payable at par upon maturity.
Page 142
Item 9.
Resolution No. 2021- , Page 32
Appendix “B”
Town of Prosper Authorized Broker/Dealer List
FHN Financial
Financial Northeastern Securities
Great Pacific Securities
Hilltop Securities, Inc.
Multi-Bank Securities, Inc.
Oppenheimer & Co., Inc.
SAMCO Capital Markets
Page 143
Item 9.
Matrix of Qualified Brokers/Dealers and Financial Institutions1000 Town Center, Ste. 2300920 Memorial City Way, 11th Fl 50 S. 6th St., Ste. 1300 100 Passaic Avenue 700 Milam, Suite 500 151 Kalmus Drive, Ste. H8 1700 Pacofoc Ave Ste 200Southfield, MI 48075Houston, TX 77024 Minneapolis, MN 55402 Fairfield, NJ 07004 Houston, TX 77002 Costa Mesa, CA 92626 Dallas, TX 75201Phone(800) 967-9045(901) 435-8080 (612) 337-2700 (973) 396-1043 (713) 654-8606 (714) 619-3000 (800) 817-3466Account RepresentativeDamien GrantZachery Brewer Paul Sullivan Steven Azzato Gilbert Ramon Garrett NgRobert PhillipsCRD # 4601565Texas OfficeYESYES YES YES YES NO YESNature of OfficeN/APrimary Dealer status with Federal ReserveNONO NO NO NO NO NORegistered with FINRAYESNO YES YES YES YES YESCRD # 22098Division of First Tennessee Bank CRD # 1047426 CRD # 4698196 CRD # 2135146 CRD#29251 CRD # 136532Read Prosper's Investment PolicyYES YES YES YES YES YES YESSIPC Insurance CoverageYESNO YES YES YES YES YESBuy/Sell Securities?YESYES YES NO YES YES YESYESYES YES YES YES YES YESN/A Austin, Dallas, Ft. Worth, 1364 Hackberry Road 7000 N MoPac, Ste 400 N/A6805 Capital of Texas Highway, Ste 350Houston and The Woodlands Van Alstyne, TX 75495 Austin, TX 78731 Austin, TX 78731Samco Capital Markets, IncGov't Agency sectorInstitutional & Retail SalesFederal AgenciesOppenheimer & Co., Inc.Financial Northeastern SecuritiesHilltop Securities, Inc. Great Pacific SecuritiesWealth Management, Institutional , Public FinanceFixed Income: US Gov't & Agencies, Municipal Bonds, Commercial Paper and CDsHarris County, TX; Port Authority of Houston, TX; Collin County, TXUS Treasuries, Agencies, Texas State Bonds, Muni Bonds, Negotiable CDs.City of Bastrop, City of Allen, Dallas CountyBranchName of FirmAddressMarket Sector specializationMulti-Bank Securities, Inc. [MBS]Fixed Income Securities, MUNIs, and SBA Loans & PoolsFixed Income Securities, CDsFTN FinancialBank DealerBrokerageTown of Flower MoundCity of Farmers BranchCity of BenbrookCity of McKinney, City of Plano, City of RichardsonOther Office Address - Texas325 N St. Paul St. Ste. 3107 Dallas, TX 75201Rep Registered with Texas State SecuritiesDirectly comparable public sector clientsCounty of Tarrant, TX; City of Weatherford, OK; City of Huntsville, TXFinancial ServicesTreasuries and AgenciesCity of Arlington, City of Grand Prairie, City of CorinthCity of San Antonio, Harris County, Collin County, Grand Prairie, ArlingtonPage 144Item 9.
Page 1 of 2
To: Mayor and Town Council
From: Frank E. Jaromin, P.E., Director of Public Works
Through: Harlan Jefferson, Town Manager
Rebecca Zook, P.E., Executive Director of Development & Infrastructure
Services
Re: Town Council Meeting – January 26, 2021
Agenda Item:
Consider and act upon authorizing the Town Manager to execute a Professional Engineering
Services Agreement between Freese and Nichols, Inc., and the Town of Prosper, Texas, for the
America’s Water Infrastructure Act of 2018 Risk and Resilience Assessment and Emergency
Response Plan Project.
Description of Agenda Item:
This request is in response to an EPA requirement involving America’s Water Infrastructure Act of
2018 that mandates community water systems serving 3,300 persons or more in population to
develop a Risk and Resilience Assessment and Emergency Response Plan. A survey of our
qualified firms list was completed, and staff chose Freese and Nichols, who was most experienced
and qualified for the project.
Budget Impact:
This project was approved in the FY 2020-2021 budget, in the amount of $130,000.00. The total
amount of this project is $100,000.00 and will be funded from 200-5410-50-02.
Legal Obligations and Review:
Terrence Welch of Brown & Hofmeister, L.L.P., has approved the standard professional service
agreement as to form and legality.
Attached Documents:
1. Services Agreement
Town Staff Recommendation:
Town staff recommends authorizing the Town Manager to execute a Professional Engineering
Services Agreement between Freese and Nichols, Inc., and the Town of Prosper, Texas, for the
Prosper is a place where everyone matters.
PUBLIC WORKS
Page 145
Item 10.
Page 2 of 2
America’s Water Infrastructure Act of 2018 Risk and Resilience Assessment and Emergency
Response Plan Project.
Proposed Motion:
I move to authorize the Town Manager to execute a Professional Engineering Services Agreement
between Freese and Nichols, Inc., and the Town of Prosper, Texas, for the America’s Water
Infrastructure Act of 2018 Risk and Resilience Assessment and Emergency Response Plan
Project.
Page 146
Item 10.
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Page 1 of 2
To: Mayor and Town Council
From: Doug Kowalski, Police Chief
Through: Harlan Jefferson, Town Manager
Re: Town Council Meeting – January 26, 2021
Agenda Item:
Consider and act upon a resolution of the Town Council of the Town of Prosper, Texas, authorizing
the Town to submit a grant application to the Office of the Governor (OOG) for Prosper Police
Department SWAT equipment enhancement grant.
Description of Agenda Item:
FY 2021 State Homeland Security Program (SHSP) grant was pre-approved to the Town of
Prosper Police Department through the North Central Texas Council of Governments (NCTCOG)
SWAT working group which ranks regional projects to be awarded by the state. We are seeking
ratification of the grant application per the Town Administrative Regulations, Chapter 9 (Grant
Management) and Town of Prosper Ordinance No. 16-75 authorizing the town manger to sign the
application and thereafter seek ratification by the Town Council. Once the formality of signing the
resolution is complete, the state approves the NCTCOG working group project list. Once we
upload the resolution into the state grant portal, the state will send us the official award letter.
The period of performance will be 12 months and starts October 1, 2021. 100% reimbursement
will be made to the Town of Prosper by the State of Texas, Office of the Governor, after the
equipment has been purchased and implemented. The grant will fund the purchase of SWAT
equipment to include 9 monocular night vision goggles and 1 thermal camera in Fiscal Year 2021-
2022.
The following chart represents federal-local cost sharing totals.
Fiscal Year 2021-2022
Federal Share-100%
$33,000
Local Share
$0
Total
$33,000
Prosper is a place where everyone matters.
POLICE
DEPARTMENT
Page 163
Item 11.
Page 2 of 2
Budget Impact:
Total requested amount: $33,000 with no match requirements. This is a reimbursement grant and
will be refunded after purchase. If awarded, town staff will present a budget amendment to reflect
the revenue and expense in next fiscal year 21/22. Equipment will be purchased after October 1,
2021.
Legal Obligations and Review:
This resolution and grant funding opportunity has been previously reviewed and there have been
no changes to the term and conditions.
Attached Documents:
Resolution
Town Staff Recommendation:
Town staff recommends that the Town Council approve a resolution authorizing the Town to
submit a grant application to the Office of the Governor (OOG) for Prosper Police Department
SWAT equipment enhancement grant.
Proposed Motion:
I move to approve a resolution authorizing the Town to submit a grant application to the Office of
the Governor (OOG) for Prosper Police Department SWAT equipment enhancement grant.
Page 164
Item 11.
fro
TOWN OF PROSPER, TEXAS RESOLUTION NO. 2021-__
A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF PROSPER,
TEXAS, AUTHORIZING THE TOWN TO SUBMIT A GRANT APPLICATION TO
THE OFFICE OF THE GOVERNOR (OOG) FOR PROSPER POLICE
DEPARTMENT SWAT EQUIPMENT ENHANCEMENT GRANT NUMBER
4213801.
WHEREAS, the Town of Prosper finds it in the best interest of the citizens of the Town of
Prosper that the 2021 SHSP-Prosper Town-SWAT Equipment Enhancements be operated for the
2022 calendar year; and
WHEREAS, the Town agrees to provide applicable matching funds for said project as
required by the Office of the Governor State Homeland Security Program grant application; and
WHEREAS, the Town agrees that in the event of loss or misuse of the funds from the
Office of the Governor, the Town assures that the funds will be returned to the Office of the
Governor in full; and
WHEREAS, the Town designates the Town Manager, Harlan Jefferson, as the grantee’s
authorized official. The authorized official is given the power to apply for, accept, reject, alter or
terminate the grant on behalf of the Town.
NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF
PROSPER, TEXAS, THAT:
SECTION 1
The findings set forth above are incorporated into the body of this Resolution as if fully set
forth herein.
SECTION 2
The Town Council of the Town of Prosper does hereby approve the submission of the
grant application for the 2021 SHSP-Prosper-SWAT Equipment Enhancement to the Office of the
Governor.
SECTION 3
This Resolution shall be effective from and after its passage by the Town Council.
DULY PASSED AND APPROVED BY THE TOWN COUNCIL OF THE TOWN OF
PROSPER, TEXAS, ON THIS ___________________, 2021.
___________________________________
Ray Smith, Mayor
Page 165
Item 11.
ATTEST:
____________________________________
Melissa Lee, Town Secretary
APPROVED AS TO FORM AND LEGALITY:
____________________________________
Terrence S. Welch, Town Attorney
Page 166
Item 11.
Page 1 of 2
To: Mayor and Town Council
From: Hulon Webb, Jr., Director of Engineering Services
Through: Harlan Jefferson, Town Manager
Rebecca Zook, Executive Director of Development and Infrastructure Services
Re: Town Council Meeting – January 26, 2021
Agenda Item:
Consider and act upon approving Change Order Number 01 for Bid 2020-81-B to Accelerated
Critical Path, Inc., related to construction services for the Prosper Trail/DNT Intersection
Improvements project; and authorizing the Town Manager to execute Change Order Number 01
for same.
Description of Agenda Item:
At the September 8, 2020, Town Council meeting, Accelerated Critical Path, Inc., was awarded
the bid for the Prosper Trail/DNT Intersection Improvements project in the amount of
$1,953,811.70.
While staff was working with the design consultant on the Fishtrap Road (Stuber Elementary –
DNT) project, it was discovered that the design for that project needed to include the extension of
the inside third through lane past the intersection of the DNT to the west where the roadway was
being constructed to its ultimate 4-lane section. By extending the inside third through lane, the
westbound outside through lane would serve a dual purpose. First, the length of the outside
through lane would accommodate a much more efficient transition from the 3-lane westbound
section under the DNT, to the ultimate 2-lane westbound section of Fishtrap Road west of the
DNT. In addition, when the property on the northwest corner of the intersection develops, the
outer through lane could also serve as a deceleration lane to that development if a driveway is
constructed on Fishtrap Road near the intersection.
To accommodate this same change in design on the Prosper Trail/DNT Intersection Improvements
project in the eastbound direction where 4 lanes of Prosper Trail exist, Change Order Number 01,
in the amount of $70,864.42, includes the following, and adds 20 calendar days to the project:
Construction of the inside third through lane east of the DNT intersection for vehicles
traveling eastbound to allow the outside lane to become the transition lane as well as
potential dedicated deceleration lane into the future development at the southeast corner
of the intersection without future modification and disruption to the intersection.
Prosper is a place where everyone matters.
ENGINEERING
SERVICES
Page 167
Item 12.
Page 2 of 2
Replacing the proposed asphalt transition for the westbound to northbound right turn lane
with permanent concrete, and the construction of additional permanent concrete for the
transition of the eastbound to southbound right turn lane.
Budget Impact:
The total cost for Change Order Number 01 is $70,864.42 and increases the construction cost for
the project to $2,024,676.12. ($1,953,811.70 bid award + Change Order Number 01). The FY
2020-2021 Capital Improvement Program includes $2,000,000 for the construction of the Prosper
Trail/DNT Intersection Improvements project. An application of $25,000 from cost savings from
completed projects and interest earned on Bond funds has been allocated to this project to
increase the construction budget to $2,025,000. The funding source is Account No. 750-6610-
10-00-1830-ST.
Legal Obligations and Review:
Terrence Welch of Brown & Hofmeister, L.L.P., has approved the standard change order form as
to form and legality.
Attached Documents:
1. Change Order Number 01
2. Location Map
3. Additional Improvements Exhibit
Town Staff Recommendation:
Town staff recommends that the Town Council approve Change Order Number 01 for Bid 2020-
81-B to Accelerated Critical Path, Inc., related to construction services for the Prosper Trail/DNT
Intersection Improvements project; and authorize the Town Manager to execute Change Order
Number 01 for same.
Proposed Motion:
I move to approve Change Order Number 01 for Bid 2020-81-B to Accelerated Critical Path, Inc.,
related to construction services for the Prosper Trail/DNT Intersection Improvements project; and
authorize the Town Manager to execute Change Order Number 01 for same.
Page 168
Item 12.
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EXISTING PAVEMENT MARKINGS TO REMAIN
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1.
SIGN LOCATIONS.
SEE TRAFFIC SIGNAGE PLAN FOR PROPOSED TRAFFIC
(SBFR) PROJECT ARE SHOWN AS EXISTING.
NORTH TOLLWAY SOUTHBOUND FRONTAGE ROAD
PAVEMENT MARKINGS PROPOSED BY THE DALLAS
DRAWN
CHECKED
DESIGNED
SCALE
DATE
SHEET OF
OFUSER:34564ah1115OFFICE:FRCPROJECT #FILE:34564_002-PMRK01.dgnDATE:TIME:12/22/20206:05:10 PMNO.DATE REVISION APPROV.
TOWN OF PROSPER, TEXAS
AVO:34564.002
TBPELS ENGINEERING FIRM NO. F-312
FAX (214) 618-4574
TEL (214) 618-4570
FRISCO, TEXAS 75034-8641
3803 PARKWOOD BLVD, SUITE 800
Practice Act.
an offense under the Texas Engineering
notification to the responsible engineer is
of a sealed document without proper
PE#83317 on 12-23-2020. Alteration
authorized by Michael Miller Lesh,
The seal appearing on this document was
STATEOF
T
EXASLICENSEDPROFESSIONALENGINEER83317
MICHAEL M. LESH
DATE
DATE
PP
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PTS MMLMATCH LINE STA 28+00 MATCH LINE STA 28+00PROSPER TRAIL
11
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9027
1"=60'
PAVEMENT MARKINGS
MML10/9/2020 PAVEMENT ADDITION
MML 2 12/15/2020 PAVEMENT TRANSITION ADDITION
12/23/2020
12/23/202012/23/2020
Page 173
Item 12.
Page 1 of 2
To: Mayor and Town Council
From: Mary Branch, Health & Code Compliance Supervisor
Through: Harlan Jefferson, Town Manager
Rebecca Zook, P.E., Executive Director of Development & Infrastructure
Services
Re: Town Council Meeting – January 26, 2021
Agenda Item:
Consider and act upon authorizing the Town Manager to execute Amendment Fourteen to the
Interlocal Agreement between Collin County and the Town of Prosper, extending the agreement
through FY 2020-2021, relating to Animal Control Services.
Description of Agenda Item:
The Town of Prosper and Collin County entered into an Interlocal Agreement in 2006, authorizing
Collin County to provide Animal Control Services for the Town of Prosper. The initial term of the
agreement was one year, with automatic one-year renewal terms. This is amendment Number
Fourteen to the agreement for the period of October 1, 2020, to September 30, 2021, and the
associated fee for services.
The Animal Control Services provided by the County include, but are not limited to, vaccination of
animals, reporting of human exposure to rabies, quarantine and testing of biting animals, reduction
of the stray animal population, restraint of dangerous animals, prohibition of dogs running at large
and of inhumane treatment of animals, and to prescribe penalties for violation of such provisions
in accordance with Chapters 822, 825, and 826 of the Texas Health & Safety Code, and Chapter
142 of the Agriculture Code.
Local governments are authorized by the Interagency Cooperation Act, V.T.C.A. Government
Code, Title 7, Chapter 771, to agree or contract with another agency for the provision of necessary
and authorized services and resources. The Town of Prosper and nine (9) other municipalities
contract with Collin County for Animal Control Services.
Budget Impact:
The fee for Animal Control Services for FY 2020-2021 is $59,027.00 and is consistent with the
amount approved in the FY 2020-2021 Budget. The fee will be funded by Code Compliance
Contracted Services (100-5480-40-02).
Prosper is a place where everyone matters.
DEVELOPMENT
SERVICES
Page 174
Item 13.
Page 2 of 2
Legal Obligations and Review:
Terrence Welch of Brown & Hofmeister, L.L.P., has previously approved these amendments to
the ILA as to form and legality.
Attached Documents:
1. Collin County Contract Amendment Fourteen – Interlocal Agreement for Animal Control
Services
Town Staff Recommendation:
Town staff recommends the Town Council authorize the Town Manager to execute Amendment
Fourteen to the Interlocal Agreement between Collin County and the Town of Prosper, extending
the agreement through FY 2020-2021, relating to Animal Control Services.
Proposed Motion:
I move to authorize the Town Manager to execute Amendment Fourteen to the Interlocal
Agreement between Collin County and the Town of Prosper, extending the agreement through FY
2020-2021, relating to Animal Control Services.
Page 175
Item 13.
Office of the Purchasing Agent
Collin County Administration Building
Contract Amendment FOURTEEN (14)2300 Bloomdale Rd, Ste 3160
McKinney, TX 75071
972-548-4165
Vendor:Town of Prosper Effective Date 10/1/2020
P.O. Box 307 Contract No.10110-09
Prosper, TX 75078 Contract
Awarded by Court Order No.:
Contract Amendment No.:1 Court Order No.
Contract Amendment No.:2 Court Order No.
Contract Amendment No.:3 Court Order No.
Contract Amendment No.:4 Court Order No.
Contract Amendment No.:5 Court Order No.
Contract Amendment No.:6 Court Order No.
Contract Amendment No.:7 Court Order No.
Contract Amendment No.:8 Court Order No.
Contract Amendment No.:9 Court Order No.
Contract Amendment No.:10 Court Order No.
Contract Amendment No.:11 Court Order No.
Contract Amendment No.:12 Court Order No.
Contract Amendment No.:13 Court Order No.
Contract Amendment No.:14 Court Order No.
YOU ARE DIRECTED TO MAKE THE FOLLOWING AMENDMENT TO THIS CONTRACT
Item #1 Extension of agreement for a one (1) year period as provided for in section 5.0 of the contract documents.
Agreement shall be in effect from October 1, 2020, continuing through and including September 30, 2021.
Item #2 Total amount for fiscal year 2021:$59,027.00
Except as provided herein, all terms and conditions of the contract remain in full force and effect
and may only be modified in writing signed by both parties.
ACCEPTED BY:ACCEPTED AND AUTHORIZED BY
AUTHORITY OF COLLIN COUNTY
Harlan Jefferson (Print Name)COMMISSIONERS’ COURT
Town of Prosper Collin County Administration Building
P.O. Box 307 2300 Bloomdale Rd, Ste 3160
Prosper, TX 75078 McKinney, Texas 75071
SIGNATURE Michelle Charnoski, CPPB
TITLE:Town Manager Purchasing Agent
DATE: DATE:
Interlocal Agreement for Animal
Control Services
2009-852-10-12
2011-018-01-10
2014-012--01-06
2013-017-01-07
2011-684-09-19
2008-894-10-14
2006-879-09-26
2008-047-01-22
2016-030-01-04
2017-043-01-23
2019-893-10-07
2017-871-10-23
2014-1004-12-15
2019-016-01-07
Page 176
Item 13.
Page 1 of 2
To: Mayor and Town Council
From: Mary Branch, Health & Code Compliance Supervisor
Through: Harlan Jefferson, Town Manager
Rebecca Zook, P.E., Executive Director of Development & Infrastructure
Services
Re: Town Council Meeting – January 26, 2021
Agenda Item:
Consider and act upon authorizing the Town Manager to execute Amendment Fourteen to the
Interlocal Agreement between Collin County and the Town of Prosper for Animal Shelter Services.
Description of Agenda Item:
Collin County, the Town of Prosper, and the Cities and Towns of Anna, Celina, Fairview,
Farmersville, Frisco, Lowry Crossing, McKinney, Melissa, and Princeton identified a need for an
animal shelter in Collin County, for their mutual benefit. In 2006, the Parties entered into an
Interlocal Agreement (ILA) for the Facility Construction and Use of an Animal Shelter in Collin
County. The shelter was constructed, and the Parties pay an annual fee to Collin County for the
maintenance, operations, and use of the shelter. The Animal Sheltering Services provided by the
County include, but are not limited to, receiving stray animals, caring for impounded animals, and
coordinating adoptions and returns, when possible.
In 2019, the City of Frisco staff worked with McKinney, Celina, and Collin County to amend and extend
the Interlocal Agreement. The amended agreement extended the terms through 2023 and created an
automatic renewal term of five years, upon the same terms and conditions.
Staff believes it is in the best interest of the Town to retain this partnership with Collin County to provide
animal sheltering services due to the costs of building and operating a shelter.
Budget Impact:
Prosper’s fee for Animal Shelter Services for FY 2020-2021 is $28,610.00 and is consistent with
the amount approved in the FY 2020-2021 Budget. The fee assessed to the cities and towns is
based on their population proportionality. The fee will be funded by Code Compliance Contracted
Services (100-5480-40-02).
Prosper is a place where everyone matters.
DEVELOPMENT
SERVICES
Page 177
Item 14.
Page 2 of 2
Legal Obligations and Review:
Terrence Welch of Brown & Hofmeister, L.L.P., has previously approved the ILA as to form and
legality.
Attached Documents:
1. Collin County Contract Amendment Fourteen – Interlocal Agreement for Animal Shelter
Services
Town Staff Recommendation:
Town staff recommends the Town Council authorize the Town Manager to execute Amendment
Fourteen to the Interlocal Agreement between Collin County and the Town of Prosper for Animal
Shelter Services.
Proposed Motion:
I move to authorize the Town Manager to execute Amendment Fourteen to the Interlocal
Agreement between Collin County and the Town of Prosper for Animal Shelter Services.
Page 178
Item 14.
Office of the Purchasing Agent
Collin County Administration Building
Contract Amendment FOURTEEN (14)2300 Bloomdale Rd, Ste 3160
McKinney, TX 75071
972-548-4165
Vendor:Town of Prosper Effective Date 10/1/2020
P.O. Box 307 Contract No.10110-09
Prosper, TX 75078 Contract
Awarded by Court Order No.:
Contract Amendment No.:13 Court Order No.
Contract Amendment No.:14 Court Order No.
YOU ARE DIRECTED TO MAKE THE FOLLOWING AMENDMENT TO THIS CONTRACT
Item #1 Agreement shall be in effect from October 1, 2020, continuing through and including
September 30, 2021 at the below rate:
Item #2 Total amount for fiscal year 2021:$28,610.00
Except as provided herein, all terms and conditions of the contract remain in full force and effect
and may only be modified in writing signed by both parties.
ACCEPTED BY:ACCEPTED AND AUTHORIZED BY
AUTHORITY OF COLLIN COUNTY
Harlan Jefferson (Print Name)COMMISSIONERS’ COURT
Town of Prosper Collin County Administration Building
P.O. Box 307 2300 Bloomdale Rd, Ste 3160
Prosper, TX 75078 McKinney, Texas 75071
SIGNATURE Michelle Charnoski, CPPB
TITLE:Town Manager Purchasing Agent
DATE: DATE:
2006-891-09-26
Interlocal Agreement for the Facility
Construction and Use of an Animal
Shelter in Collin County
2019-1073-11-18
Page 179
Item 14.
Page 1 of 1
To: Mayor and Town Council
From: Alex Glushko, AICP, Planning Manager
Through: Harlan Jefferson, Town Manager
Rebecca Zook, P.E., Executive Director of Development & Infrastructure
Services
Re: Town Council Meeting – January 26, 2021
Agenda Item:
Consider and act upon whether to direct staff to submit a written notice of appeal on behalf of the
Town Council to the Development Services Department, pursuant to Chapter 4, Section 1.5(C)(7)
and 1.6(B)(7) of the Town’s Zoning Ordinance, regarding action taken by the Planning & Zoning
Commission on any Site Plan or Preliminary Site Plan.
Description of Agenda Item:
Attached are the Preliminary Site Plan and Site Plan that were acted on by the Planning & Zoning
Commission at their January 19, 2021, meetings. Per the Zoning Ordinance, the Town Council
has the ability to direct staff to submit a written notice of appeal on behalf of the Town Council to
the Development Services Department for any Preliminary Site Plan or Site Plan acted on by the
Planning & Zoning Commission.
Attached Documents:
1. Preliminary Site Plan for a Utility Distribution Facility (Oncor Prosper Substation)
2. Site Plan for Windsong Ranch Amenity Center #3
Town Staff Recommendation:
Town staff recommends the Town Council take no action on this item.
Prosper is a place where everyone matters.
PLANNING
Page 180
Item 15.
380380
G
D
G
W
D
G
G
S
S
OHEOHEOHEOHEOHEOHEOHEOHEOHEOHEOHEOHEOHEOHEOHEOHEOHEDRAINAGE EASEMENT
DOC. NO. 2005-0052275
O.P.R.C.C.T.
100' ONCOR ELECTRIC
TRANSMISSION EASEMENT
VOL. 493, PG. 96
VOL. 493, PG. 191
D.R.C.C.T.
RICHLAND BOULEVARD
(90' RIGHT-OF-WAY)
DOC. NO. 201706260100003050
O.P.R.C.C.T.
LOT 2, BLOCK B
LA CIMA CROSSING
CAB. 2018, PAGE 936
P.R.C.C.T
MUSTANG-MIDWAY PLANO LTD
DOC. NO. 20181214010005640
O.P.R.C.C.T.
SANITARY SEWER EASEMENT
VOL. 5481, PG. 6961
D.R.C.C.T.
10' SANITARY SEWER EASEMENT
DOC. NO. 2005-0052274
O.P.R.C.C.T.
UNKNOWN 12" RISER
ON CONCRETE PAD
S
FLOODWAY, DRAINAGE AND
DETENTION EASEMENT
EROSION HAZARD SETBACK
N89°31'10"E 629.95'S5°24'34"W205.91'N89°31'10"E
50.55'S5°25'04"W471.24'N88°45'52"W 313.14'
∆=17°44'47"
R=804.88'
L=249.30'
CB=N79°53'29"W
C=248.30'N0°47'50"W617.07'N88°46'47"W
50.48'
25' LANDSCAPE BUFFER
DRAINAGE EASEMENT
DOC. NO. 2005-0052275
O.P.R.C.C.T.
100' ONCOR ELECTRIC
TRANSMISSION
EASEMENT
VOL. 493, PG. 96
VOL. 493, PG. 191
D.R.C.C.T.
LOT 2, BLOCK B
LA CIMA CROSSING
CAB. 2018, PAGE 936
P.R.C.C.T
MUSTANG-MIDWAY PLANO LTD
DOC. NO. 20181214010005640
O.P.R.C.C.T.
LOT 3, BLOCK A
LA CIMA CROSSING
CAB. 2017, PG. 490
P.R.C.C.T
LOT 4, BLOCK A
LA CIMA CROSSING
CAB. 2017, PG. 490
P.R.C.C.T
RICHLAND BOULEVARD
(90' RIGHT-OF-WAY)
DOC. NO. 201706260100003050
O.P.R.C.C.T.
RICHLA
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(90' RI
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DOC. N
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O.P.R.C
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.
LOT 2, BLOCK B
LA CIMA CROSSING
CAB. 2018, PAGE 936
P.R.C.C.T
MUSTANG-MIDWAY PLANO LTD
DOC. NO. 20181214010005640
O.P.R.C.C.T.
LOT 2, BLOCK B
LA CIMA CROSSING ADDITION
CAB. 2020, PAGE 238
P.R.C.C.T
FAM SCHOOLS LLC.
DOC. NO. 20181219001538410
O.P.R.C.C.T
H. JAMISON SURVEYABSTRACT NO. 480D BRADLEY SURVEYABSTRACT NO. 86APPROXIMATE LOCATION
OF ABSTRACT LINE
N89°31'10"E 629.95'S5°25'04"W471.24'N88°45'52"W 313.14'
∆=17°44'47"
R=804.88'
L=249.30'
CB=N79°53'29"W
C=248.30'N0°47'50"W617.07'S5°24'34"W205.91'N89°31'10"E
50.55' SANITARY SEWER EASEMENT
VOL. 5481, PG. 6961
D.R.C.C.T.
10' SANITARY SEWER EASEMENT
DOC. NO. 2005-0052274
O.P.R.C.C.T.
N88°46'47"W
50.48'
FLOODWAY, DRAINAGE
AND DETENTION
EASEMENT
EROSION HAZARD SETBACK
25' LANDSCAPE BUFFER
LA CIMA CROSSING ADDITION
BLOCK A, LOT 1 AND LOT 2
DOC. NO. 201512160100004530
PLOTTED BYMYERS, ROB 1/12/2021 2:31 PMDWG NAMEK:\FRI_CIVIL\FRISCO SINGLE FAMILY PURSUITS\_2020\2020114 - ONCOR - PROSPER SUB\CAD\PRELIMINARY\XPPLANSHEETS\S-1_SITEPLAN-PRELIM.DWG [S-1 PRELIMINARY SITE PLAN]LAST SAVED1/12/2021 1:56 PMRICHLAND BOULEVARD
PROSPER, TX 750778
BEING 9.524 ACRES
OUT OF
LOT 2, BLOCK B, LA CIMA CROSSING
CABINET 2018, PAGE 936
IN THE
CITY OF PROSPER, COLLIN COUNTY, TEXAS
ONCOR PROSPER SUBSTATION
6160 Warren Parkway. Suite 210
Frisco, TX 75034
Tel: (972) 335-3580
Contact: Thomas L. Fletcher, P.E.
ENGINEER/SURVEYOR:
DESIGNED DRAWN CHECKED SCALE
AS SHOWN
DATE KH PROJECT NO.
OWNER/DEVELOPER:
FOR
Oncor
115 West 7th Street, Suite 505,
Fort Worth, TX 76102
Tel: (817) 215-6061
Contact: Jill L. Alvarez, P.E.
RJM TLF 12/21/2020 064424910SEC
CASE NO. D20-0103
SITE
VICINITY MAP
SCALE: 1" = 4,000'
PROPERTY LAYOUT
SCALE: 1"=100'
NORTH
SITE DATA TABLE
–
”
PRELIMINARY SITE PLAN
SUBSTATION PAD PAVEMENT
6" FIRE LANE CONCRETE PAVEMENT
9" HEAVY DUTY CONCRETE PAVEMENT
PROPOSED HIKE AND BIKE TRAIL
LEGEND
PROPERTY LINE
ADJACENT PROPERTY LINE
EXISTING CONTOUR
PROPOSED WALL
PROPOSED FIRE HYDRANT
PROPOSED TEE & VALVE
PROPOSED FIRE LANE
PROPOSED LANDSCAPE SCREENING
EXISTING OVERHEAD POWER LINE
EXISTING SANITARY SEWER LINE
EXISTING NATURAL GAS LINE
EXISTING WATER LINE
EXISTING POWER POLE
EXISTING FIRE HYDRANT
EXISTING WATER METER
EXISTING SANITARY SEWER MANHOLE
EXISTING STORM SEWER MANHOLE
EXISTING TREE
GAS
PAVING CRITERIA
WATER METER SCHEDULE
Page 181
Item 15.
S
N
WE
M A T C H L I N E SHT. 2
Scale: 1"=40' January, 2021 SEI Job No. 20-217
SITE PLAN
WINDSONG RANCH AMENITY
CENTER 3
BLOCK A, LOT 1
IN THE NETHERLY SURVEY ABST. 962 &
T. BUTTON SURVEY ABST. 88
567,184 Sq. Ft./13.021 Acres
Current Zoning: PD-40 SF
Town Case #D20-0106
OWNER / APPLICANT
VP WINDSONG OPERATIONS, LLC
2242 Good Hope Road
Prosper, TX 75078
Telephone: (469) 532-0681
Contact: David Blom
ENGINEER / SURVEYOR
Spiars Engineering, Inc.
765 Custer Road, Suite 100
Plano, TX 75075
Telephone: (972) 422-0077
TBPE No. F-2121
Contact: Joe Lehman
SITE
LOCATION MAP / KEY MAP
DOC. NO. ________
DOC. NO. ________
DOC. NO. ________
DOC. NO. ________
Page 182
Item 15.
S
N
WE
Scale: 1"=40' January, 2021 SEI Job No. 20-217
SITE PLAN
WINDSONG RANCH AMENITY
CENTER 3
BLOCK A, LOT 1
IN THE NETHERLY SURVEY ABST. 962 &
T. BUTTON SURVEY ABST. 88
567,184 Sq. Ft./13.021 Acres
Current Zoning: PD-40 SF
Town Case #D20-0106
OWNER / APPLICANT
VP WINDSONG OPERATIONS, LLC
2242 Good Hope Road
Prosper, TX 75078
Telephone: (469) 532-0681
Contact: David Blom
ENGINEER / SURVEYOR
Spiars Engineering, Inc.
765 Custer Road, Suite 100
Plano, TX 75075
Telephone: (972) 422-0077
TBPE No. F-2121
Contact: Joe Lehman
M A T C H L I N E SHT. 1
DOC. NO. ________
DOC. NO. ________
Page 183
Item 15.
Page 1 of 4
To: Mayor and Town Council
From: Alex Glushko, AICP, Planning Manager
Through: Harlan Jefferson, Town Manager
Rebecca Zook, P.E., Executive Director of Development & Infrastructure
Services
Re: Town Council Meeting – January 26, 2021
Agenda Item:
Conduct a Public Hearing, and consider and act upon a request to rezone 58.1± acres, from
Planned Development-86 (PD-86) to Planned Development (PD), to allow for a Funeral Home
with Crematorium and Cemetery, located on the west side of Custer Road, north of US 380. (Z20-
0020).
Description of Agenda Item:
The zoning and land use of the surrounding properties are as follows:
Zoning Current Land Use Future Land Use
Plan
Subject
Property
Planned Development-
86-Single Family
Undeveloped and
Single Family
Residential
Low Density
Residential
North Planned Development-
86-Single Family Undeveloped Low Density
Residential
East City of McKinney Single Family
Residential City of McKinney
South
Planned Development-
25-Single Family and
Commercial
Undeveloped and
Town Facility US 380 District
West Planned Development-
86-Single Family Undeveloped Low Density
Residential
Requested Zoning – This is a request to rezone 58.1± acres, from Planned Development-86 (PD-
86) to Planned Development (PD), in order to allow for the development of a Funeral Home with
Crematorium and Cemetery, called North Dallas Cemetery. In order to achieve their development
goals, the applicant is proposing the following amendments to the Zoning Ordinance:
Prosper is a place where everyone matters.
PLANNING
Page 184
Item 16.
Page 2 of 4
Land Use – The property is currently zoned PD-86 for residential uses, and does not permit a
funeral home, crematorium, or cemetery use by right. The proposed rezoning request would
remove the subject 58.1± acres from PD-86 and establish a new PD, with an underlying zoning
of Single Family-15 (SF-15), and permits a funeral home, crematorium, and cemetery by right,
in accordance with the proposed PD exhibits. The applicant has provided a letter, which is
attached for reference, detailing the crematorium operations and indicating there will not be
any adverse impact to the surrounding properties.
Landscaping – In September 2020, the Town Council adopted amendments to the Zoning
Ordinance for non-residential development, including the requirement for berms along Custer
Road, ranging in height from three feet (3’) to six feet (6’), with an average of four and a half
feet (4.5’). The applicant is proposing to develop the funeral home without providing the
required berms. Because of the nature of this type of development and the inherent open
space included, staff is supportive of waiving the requirement for berms adjacent to the
cemetery. However, staff has requested the applicant incorporate the required berms
immediately adjacent to the funeral home and parking lot. The applicant is requesting to not
provide the berms adjacent to the funeral home and parking lot.
Fencing/Wall/Screening – The Zoning Ordinance requires a masonry screening wall for a non-
residential use when it is developed adjacent to existing or residentially zoned property. In
lieu of a masonry screening wall adjacent to the residentially zoned property, the applicant is
proposing a wooden trestle-style fence with limestone columns spaced every 100 feet around
the perimeter of the property. Because of the significant open space, low intensity of the use,
and adjacency of floodplain, staff is supportive of the alternative fencing/wall/screening. A
picture of the proposed fencing shown below.
Fence Detail Fence Column
Architectural Standards – For non-residential development, PD-86 requires stone, stucco,
brick, tile, concrete, glass, wood or similar exterior building materials. The applicant is
proposing a funeral home constructed primarily of brick and stone. In addition, the applicant
is proposing a 2,000 square-foot maintenance facility in the rear of the property to be
constructed primarily of metal with stone wainscot. The maintenance building will generally
be concealed from view and surrounded by landscaping. Pictures of the funeral home and
maintenance building are below.
Page 185
Item 16.
Page 3 of 4
Funeral Home Maintenance Building
Future Land Use Plan – The Future Land Use Plan recommends Low Density Residential for the
property.
Thoroughfare Plan – The property is adjacent to Custer Road, a future six-lane divided major
thoroughfare.
Parks Master Plan – The Parks Master Plan identifies hike and bike trail in the general proximity
to the subject property. There is an agreement with the current property owner/surrounding
developer to construct the required hike and bike trails.
Legal Obligations and Review:
Notification was provided to neighboring property owners as required by state law. To date, staff
has received two (2) Public Hearing Reply Forms, not in opposition to the request.
Attached Documents:
1. Aerial and Zoning Maps
2. Proposed Zoning Exhibits
3. Project Renderings
4. Project Context Exhibit
5. Crematorium Operation Informational Letter
6. Public Hearing Notice Reply Forms
Planning & Zoning Commission Recommendation:
At their January 5, 2021 meeting, the Planning & Zoning Commission recommended the Town
Council approve the request, by a vote of 6-0
1. Incorporation of berms in accordance with the Zoning Ordinance, adjacent to the funeral home
and associated parking lot.
Staff Recommendation:
Staff recommends the Town Council approve the request to rezone 58.1± acres, from Planned
Development-86 (PD-86) to Planned Development (PD), to allow for a Funeral Home with
Crematorium and Cemetery, located on the west side of Custer Road, north of US 380, subject
to:
1. Incorporation of berms in accordance with the Zoning Ordinance, adjacent to the funeral home
and associated parking lot.
Proposed Motion:
I move to approve the request to rezone 58.1± acres, from Planned Development-86 (PD-86) to
Planned Development (PD), to allow for a Funeral Home with Crematorium and Cemetery, located
on the west side of Custer Road, north of US 380, subject to:
1. Incorporation of berms in accordance with the Zoning Ordinance, adjacent to the funeral home
and associated parking lot.
Page 186
Item 16.
Page 4 of 4
Page 187
Item 16.
FM 1385W UNIVERSITY DR
E FIRST ST
PARVIN RD
E UNIVERSIT Y DR N CUSTER RDE PROSPER TRL
W FIRST ST
W F RONT IER PK WY E FRONTIER PKWY
PR OSPER RD
N PRESTON RDN DALLAS PKWYS PRESTON RDFISHTRAP RD
GEE RDFIRST ST
CUSTER RDCOUNTY ROAD 933
S P IC E W O O D D R
SHARED DRIVEWAY 0 1,500750Feet
µ
Z20-0020 - North Dallas Cemetery
This map is for illus tr ation purpos es only.
Page 188
Item 16.
FM 1385W UNIVERSITY DR
E FIRST ST
PARVIN RD
E UNIVERSIT Y DR N CUSTER RDE PROSPER TRL
W FIRST ST
W F RONT IER PK WY E FRONTIER PKWY
PR OSPER RD
N PRESTON RDN DALLAS PKWYS PRESTON RDFISHTRAP RD
GEE RDSF
SFSF
M
SF
SF
M
C
SF SF
SF
A SF
A
SF
A
C
R R
A
A
SF
SF-15SF-10/12.5/15/22/E
A
PD-86PD-90
PD-86
PD-88
PD-89PD-90 PD-90
PD-49
PD-90
PD-50
PD-87
PD-25
PD-25
PD-9
PD-76 PD-73
PD-90
PD-9
FIRST ST
CUSTER RDCOUNTY ROAD 933
S P IC E W O O D D R
0 1,500750Feet
µ
Z20-0020 - North Dallas Cemetery
This map is for illus tr ation purpos es only.
Page 189
Item 16.
HTRONScale: 1" = 100' November, 2020 SEI Job No. 20-167
Town Case No. Z20-0020
EXHIBIT A
SCI CEMETERY ADDITION
BEING 58.135 ACRES GROSS / 53.094 ACRES NET
IN THE J. HORN SURVEY, ABST. NO. 411
TOWN OF PROSPER, COLLIN COUNTY, TEXAS
LOCATION MAP
METES AND BOUNDS DESCRIPTION
ENGINEER / SURVEYOR
Spiars Engineering, Inc.
TBPE No. F-2121
765 Custer Road, Suite 100
Plano, TX 75075
Telephone: (972) 422-0077
Contact: David Bond
APPLICANT
SCI Texas Funeral Services, LLC
1929 Allen Parkway
Houston, TX 77219
Telephone: (713) 525-5277
Contact: Cameron Alexander
OWNERS
310 Prosper, LP
104 Prosper, LP
5850 Granite Parkway, Suite 100
Plano, TX 75204
Telephone: (214) 618-3811
Contact: Douglas Mousel
POINT OF
BEGINNING
2.143 Ac.
(93,368 S.F.)
Ex. R.O.W.
0.224 Ac.
(9,768 S.F.)
R.O.W. Dedication
53.094 Acres
( 2,312,781 Sq. Ft.)
2.673 Ac.
(116,444 S.F.)
Ex. R.O.W.
Page 190
Item 16.
SCI SHARED RESOURCES, LLC
1929 ALLEN PARKWAY • P.O. BOX 130548 • HOUSTON, TX 77219-0548
Office: (713) 525 5277 • Fax: (281-772-0283) • www.steve.webster@sci-us.com
Z20-0020
EXHIBIT “B”
STATEMENT OF INTENT AND PURPOSE
Service Corporation International acting under SCI Texas Funeral Services, LLC intends to own
and operate a cemetery facility and funeral home with crematorium services on the above
referenced property. SCI is an internationally recognized owner and operator within the funeral
market and currently owns and manages approximately 1,500 funeral homes and nearly 500
cemeteries across North America.
Page 191
Item 16.
Z20-0020
EXHIBIT “C”
DEVELOPMENT STANDARDS
Conformance with the Town’s Zoning Ordinance and Subdivision Ordinance: Except as otherwise set
forth in these Development Standards, the regulations of the Town’s Zoning Ordinance (Ordinance No.
05-20), as it exists or may be amended, and the Subdivision Ordinance, as it exists or may be amended,
shall apply.
1. Except as noted below, the Tract shall develop in accordance with the Single Family-15 (SF-15)
District, as it exists or may be amended.
2. Uses. All of the permitted uses in the Single Family-15 (SF-15) District shall be allowed with the same
provisions and restrictions, including uses permitted by a Specific Use Permit (SUP) and Conditional
Uses (C), except as noted below:
a) Uses permitted by right:
i. Funeral Home, Cemetery, and Crematorium
3. Development Standards:
a) Berms
i. Shall not be required along the property frontage.
b) Fencing/Walls/Screening
i. A masonry screening wall shall not be required where adjacent to residential property.
ii. A wooden trestle-style fence with stone columns spaced every 100 feet shall be permitted,
as shown below:
Fence Detail Fence Column
c) Architectural Standards
i. The proposed maintenance facility, as shown on Exhibit D shall be permitted the use of
metal as a primary building material, and shall include a stone wainscot, in accordance with
Exhibit F.
Page 192
Item 16.
SNWECASE No. - Z20-0020
EXHIBIT 'D'
SCI Cemetery Addition
Block A, Lot 1 - 53.318 Acres
SITUATED IN THE
JEREMIAH HORN SURVEY, ABSTRACT NO. 787
IN THE TOWN OF PROSPER, COLLIN COUNTY, TEXAS
Scale: 1" = 100' October, 2020 SEI Job No. 20-167 Sheet: 1 of 5
LOCATION & SHEET KEY MAP
1" = 2000'
ENGINEER / SURVEYOR
Spiars Engineering, Inc.
TBPE No. F-2121
765 Custer Road, Suite 100
Plano, TX 75075
Telephone: (972) 422-0077
Contact: David Bond
APPLICANT
SCI Texas Funeral Services, LLC
1929 Allen Parkway
Houston, TX 77219
Telephone: (713) 525-5277
Contact: Cameron Alexander
OWNERS
310 Prosper, LP
104 Prosper, LP
5850 Granite Parkway, Suite 100
Plano, TX 75204
Telephone: (214) 618-3811
Contact: Douglas Mousel
55.400 Ac.
(2,413,244 S.F.)
SCI Addition
Lot 1, Block A
WATER FEATURE
Page 193
Item 16.
SNWEScale: 1" = 50' October, 2020 SEI Job No. 20-167 Sheet: 2 of 5
CASE No. - Z20-0020
EXHIBIT 'D'
SCI Cemetery Addition
Block A, Lot 1 - 53.318 Acres
SITUATED IN THE
JEREMIAH HORN SURVEY, ABSTRACT NO. 787
IN THE TOWN OF PROSPER, COLLIN COUNTY, TEXAS
ENGINEER / SURVEYOR
Spiars Engineering, Inc.
TBPE No. F-2121
765 Custer Road, Suite 100
Plano, TX 75075
Telephone: (972) 422-0077
Contact: David Bond
APPLICANT
SCI Texas Funeral Services, LLC
1929 Allen Parkway
Houston, TX 77219
Telephone: (713) 525-5277
Contact: Cameron Alexander
OWNERS
310 Prosper, LP
104 Prosper, LP
5850 Granite Parkway, Suite 100
Plano, TX 75204
Telephone: (214) 618-3811
Contact: Douglas Mousel
Page 194
Item 16.
SNWEScale: 1" = 50' November, 2020 SEI Job No. 20-167 Sheet: 3 of 5
CASE No. - Z20-0020
EXHIBIT 'D'
SCI Cemetery Addition
Block A, Lot 1 - 53.318 Acres
SITUATED IN THE
JEREMIAH HORN SURVEY, ABSTRACT NO. 787
IN THE TOWN OF PROSPER, COLLIN COUNTY, TEXAS
ENGINEER / SURVEYOR
Spiars Engineering, Inc.
TBPE No. F-2121
765 Custer Road, Suite 100
Plano, TX 75075
Telephone: (972) 422-0077
Contact: David Bond
APPLICANT
SCI Texas Funeral Services, LLC
1929 Allen Parkway
Houston, TX 77219
Telephone: (713) 525-5277
Contact: Cameron Alexander
OWNERS
310 Prosper, LP
104 Prosper, LP
5850 Granite Parkway, Suite 100
Plano, TX 75204
Telephone: (214) 618-3811
Contact: Douglas Mousel
WATER FEATUREWATER FEATURE
Page 195
Item 16.
SNWEScale: 1" = 50' November, 2020 SEI Job No. 20-167 Sheet: 4 of 5
CASE No. - Z20-0020
EXHIBIT 'D'
SCI Cemetery Addition
Block A, Lot 1 - 53.318 Acres
SITUATED IN THE
JEREMIAH HORN SURVEY, ABSTRACT NO. 787
IN THE TOWN OF PROSPER, COLLIN COUNTY, TEXAS
ENGINEER / SURVEYOR
Spiars Engineering, Inc.
TBPE No. F-2121
765 Custer Road, Suite 100
Plano, TX 75075
Telephone: (972) 422-0077
Contact: David Bond
APPLICANT
SCI Texas Funeral Services, LLC
1929 Allen Parkway
Houston, TX 77219
Telephone: (713) 525-5277
Contact: Cameron Alexander
OWNERS
310 Prosper, LP
104 Prosper, LP
5850 Granite Parkway, Suite 100
Plano, TX 75204
Telephone: (214) 618-3811
Contact: Douglas Mousel
55.400 Ac.
(2,413,244 S.F.)
SCI Addition
Lot 1, Block A
Page 196
Item 16.
SNWEScale: 1" = 50' November, 2020 SEI Job No. 20-167 Sheet: 5 of 5
CASE No. - Z20-0020
EXHIBIT 'D'
SCI Cemetery Addition
Block A, Lot 1 - 53.318 Acres
SITUATED IN THE
JEREMIAH HORN SURVEY, ABSTRACT NO. 787
IN THE TOWN OF PROSPER, COLLIN COUNTY, TEXAS
ENGINEER / SURVEYOR
Spiars Engineering, Inc.
TBPE No. F-2121
765 Custer Road, Suite 100
Plano, TX 75075
Telephone: (972) 422-0077
Contact: David Bond
APPLICANT
SCI Texas Funeral Services, LLC
1929 Allen Parkway
Houston, TX 77219
Telephone: (713) 525-5277
Contact: Cameron Alexander
OWNERS
310 Prosper, LP
104 Prosper, LP
5850 Granite Parkway, Suite 100
Plano, TX 75204
Telephone: (214) 618-3811
Contact: Douglas Mousel
Page 197
Item 16.
Z20-0020
EXHIBIT “E”
CONCEPTUAL DEVELOPMENT SCHEDULE
A conceptual development schedule for the North Dallas Cemetery tract is as follows:
• Due Diligence & Entitlement…July 2020 to February 2021
• Funeral Home & Cemetery Design…March 2021 to September 2021
• Construction Permit…September 2021
• Construction…October 2021 to July 2022
• Operations Startup…August 2022
• Open for business….September 2022
Phase 2 consists of minor roadways, landscaping and basic utility extensions. This phase will
commence based on market needs and sales in the area. We anticipate phase two to begin in
2030 or later.
Page 198
Item 16.
Page 199
Item 16.
Page 200
Item 16.
WATER FEATURE
PROJECTBYSHEET TITLEREVISIONSDRAWN
CHECKED
DATE
JOB NO.
SHEET
SHEETSOF
The use of these plans and specifications shall be restricted to the original site for which they were prepared and publication thereof is expressly limited to such use. Reproduction, publication, or reuse by any method, in whole or in part without the express consent of Clark & Green Associates is prohibited. Title to the plans and specifications remain in Clark & Green Associates without prejudice. Visual contact with these plans and specifications shall constitute prima facie evidence of the acceptance of these restrictions.
JS
JS
12/17/20
20-079
NORTH
0 50'100'200'
·
·
·
L1CONCEPTUAL LANDSCAPE PLANPage 201
Item 16.
MH
POOL
U/O
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CONC
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DIRTDIRT STEPSU/OMHSMU/O U/ODIRTDIRT DIRT DIRT DIRT DIRT DIRTDIRTDIRTDIRTASPHCONCVVVVVVPOOLUBSSF/HSSTEPSSTEPSPOOLVVVMVVVSPAUBASPHASPHASPHASPHASPHASPHASPHASPHASPH ASPHASPHASPH ASPHCONCCONCCONCCONCASPHDIRTCONCCONCCONCCONCCONCCONCCONCCONCCONCCONCU/O U/O U/O U/O U/O U/O U/OCONCMMF/HSF/HF/HV CONC SIGNSSUBM ASPH DENSETREESASPH
UBUB
M/B
UB
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CONCASPHASPHSSASPHSM/BM/BF/H U/O SSF/H SASPH STEPS CONC DIRTASPHASPHCONC1118.41118.51121.8 1120.61125.3 1135.4 1134.4 1144.81144.9 1140.3 1140.5 1140.51141.41148.6 1182.31179.3 1180.31127.51121.4 1128.2 1151.7 1143.9 1144.61144.81142.41142.5 1162.8 1162.71170.51170.21170.4 1148.6 1148.51149.41141.41141.6 1143.41142.71131.11133.31161.71145.5 1153.7 1162.3 1162.21163.1 1155.61188.6 1188.5 1190.41187.61202.61134.8 1200.7 1207.71208.41145.6 1146.3 1143.6 1159.51140.41139.31138.6 1141.71144.51137.7 1137.51136.9 1145.6 1152.51155.6 1151.5 1196.91199.4 1242.5 1242.6 1239.7 1239.7 1240.4 1240.4 1241.4 1197.71194.7 1257.71241.21241.5 1241.2 1241.11257.41256.7 1289.41257.21267.51267.2 1242.4 1242.31267.71267.5 1268.21245.11244.5 1239.71217.61220.51196.31196.6 1217.51208.11191.7 1191.51225.21226.21225.5 1225.51170.71166.61160.41164.61162.31162.31162.71164.4 1165.6 1165.31174.61185.3 1183.5 1187.2 1184.51190.5 1192.61174.6 1167.71164.61211.51180.6 1188.4 1180.5 1189.51187.41191.9 1196.7 1180.31181.31195.81181.5 1180.71184.21182.5 1186.8 1198.7 1196.6 1205.5 1211.61208.21208.31204.3 1214.61214.5 1217.4 1220.3 1232.2 1232.71254.6 1251.5 1252.7 1252.71233.2 1253.8 1253.81251.41223.5 1278.51278.6 1282.91253.51253.41246.31243.21241.61236.51235.41228.61229.41214.5 1205.61200.61187.31184.51184.61204.5 1211.9 1336.41312.3 1308.41309.6 1335.5 1360.2 1255.2 1244.41240.51241.1 1245.81247.11249.7 1252.51272.8 1237.21243.2 1249.6 1287.21356.51355.31385.11369.51369.61369.8 1402.3 1391.21434.61435.31435.41434.5 1436.1 1434.81433.0 1402.51402.2 1403.5 1404.11403.71398.41399.11400.31397.4 1399.11294.1 1331.4 1397.7 1314.31318.4 1296.4 1301.61364.51363.41369.11365.41359.71358.6 1357.31358.11356.31374.11477.91478.31478.61477.41475.51478.4 1477.71477.81477.91477.7 1478.31478.1 1478.3 1477.81477.6 1478.41407.61315.4 1312.61373.5 1372.4 1375.6 1375.4 1380.5 1375.4 1373.2 1479.31478.4 1478.2 1477.9 1477.9 1477.81477.9 1477.71477.9 1477.81478.3 1478.11479.31479.41478.4 1478.6 1478.31479.61478.31477.71477.41477.6 1477.61477.41477.71477.71477.21477.61479.11478.21477.3 1477.71478.2 1366.6
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12
8
01335 TENNIS COURTOAKWOOD DRIVE DESCRIPTION AREAGRAND TOTALPROPOSED ROAD (4,160 LF)PROPOSED CEMETERYDEVELOPMENT AREAUNDEVELOPED LAND 21.5 AC (935,336 S.F.)2.5 AC (108,637 S.F.)25.8 AC (1,126,458 S.F.)50 A.C.PROJECTBYSHEET TITLEREVISIONSDRAWN
CHECKED
DATE
JOB NO.
SHEET
SHEETSOFL a n d s c a p e A r c h i t e c t u r eA s s o c i a t e sThe use of these plans and specifications shall be restricted to the original site for which they were prepared and publication thereof is expressly limited to such use. Reproduction, publication, or reuse by any method, in whole or in part without the express consent of Clark & Green Associates is prohibited. Title to the plans and specifications remain in Clark & Green Associates without prejudice. Visual contact with these plans and specifications shall constitute prima facie evidence of the acceptance of these restrictions.
JS
MG
11/19/20
20-112LOMA LINDA EXPANSIONMONTECITO MEMORIAL PARK (Location 0742)3520 E WASHINGTON STREETCOLTON, CALIFORNIA 923246 15420 Laguna Canyon Road, Ste 210, Irvine, California 92618(714) 434-9803 www.clarkgreen.comBARTON RDUNDEVELOPEDAREA PROPERTYLINEPROPOSEDROADPROPOSED ROADCONNECTION TOMONTECITOMEMORIAL PARK
NORTH0 25'50'100'OAKWOOD DRIVE SIERRA VISTA DRMONTECITOMEMORIALPARK SITE PLANL-1
PROPOSED MAUSOLEUM/BUILDINGS 0.2 AC (10,488 S.F.)END OF EXISTINGPUBLIC ROWPROPERTYLINE BUILDING AABCDE 1,338 SFBUILDING B 4,830 SFBUILDING C 1,440 SFBUILDING D 1,440 SFBUILDING E 1,440 SFUNDEVELOPEDAREA
PROPERTY
LINE
PROPOSED TUBULAROR ALUMINUM FENCEBEGINS PROPOSEDCHAINLINK FENCEENDS (PARALLEL PARKING WILL BE PROVIDEDON PRIVATE PARK ROADS)PROPOSEDENTRY SIGNPROPOSED END OFEXISTING PUBLIC ROADW/ VEHICULAR GATE FORNIGHT TIME CLOSUREMONTECITOMEMORIAL PARK PROPERTYLINE PROPOSED 6' HIGH CHAINLINKFENCE TO START HERE.PROPOSED FENCE WILL BEINSTALLED IN PHASES BASEDUPON DEVELOPMENTPROPERTYLINEPROPOSED TUBULAR ORALUMINUM FENCE ENDSEXISTING NON-RECORDEDDRIVEWAY ACCESS
I:\01-S.C.I\CA\Montecito Memorial-0742\20-112 Montecito Expansión CUP, Loma Linda\20-30 Design Phase\Exhibits\Development Submittal Exhibits\0742_Montecito - Site Plan.dwg, 11/24/2020 1:51:15 PMPage 202
Item 16.
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Item 16.
January 1, 2021
SCI SHARED RESOURCES, LLC
1929 ALLEN PARKWAY • P.O. BOX 130548 • HOUSTON, TX 77219-0548
Office: (713) 525 5277 • Fax: (281-772-0283) • www.steve.webster@sci-us.com
RE: Z20-0020 Crematorium Operation
New funeral home and cemetery development
FM 2478 N. Custer Road @ CR 933 Rock Road, Prosper Texas in Collin County
Prosper Planning & Zoning Commission:
We anticipate our cremation operations to specifically be used by our customers coming to the funeral
home and cemetery. In some cases we may services a few of our nearby funeral homes.
Standard operation hours would be from 7AM to 8PM Monday-Friday. It is typical to go days without
a cremation taking place and then on some days there may be 3-4 cremations that have to take place.
Cremations are growing in the US as a more acceptable method of last wishes. Some areas of the
country are 70+% cremation verses traditional ground burial. There is a growing need to provide
respectful spaces for families to cremate their loved ones. Cemeteries are an ideal place do to the size
of the property.
In the state of Texas, retorts (cremation machine) are regulated by the Texas Commission on
Environmental Quality. Manufactures of retorts must design their machines to meet the TCEQ
guidelines. All machines are self-monitored during a cremation and the operator is notified if the
machine is not working properly.
Some common public questions-
Do retorts smoke?- new cremation units are designed to very high quality and efficient standards.
Smoke is rarely visible. If smoking does occur, it could be caused by a very large case (typically lasts
less than 30 seconds) or it could be an indication of a mechanical problem with the unit.
What type of odors are common?- odors are rare (due to the high combustion temperature)
How much noise does a retort make?- there is typically very limited to no noise outside the building.
How is medical waste disposed of?- there is no medical waste generated from a crematory.
________________________________________________________________
John Cesmirosky | SCI Shared Resources, LLC | Director- Construction
Office- 713-525-9089
Cell- 713-542-0809
john.cesmirosky@sci-us.com
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Item 16.
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Item 16.
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Item 16.
Page 1 of 3
To: Mayor and Town Council
From: Alex Glushko, AICP, Planning Manager
Through: Harlan Jefferson, Town Manager
Rebecca Zook, P.E., Executive Director of Development & Infrastructure
Services
Re: Town Council Meeting – January 26, 2021
Agenda Item:
Conduct a Public Hearing, and consider and act upon a request to rezone 55.8± acres, located on
the west side of Good Hope Road, south of Parvin Road, from Agricultural (A) to Planned
Development-40 (PD-40), generally to incorporate tracts of land into the Windsong Ranch
development. (Z20-0023).
Description of Agenda Item:
The purpose of this request is to incorporate 55.8± acres of Agricultural property into the Windsong
Ranch development, PD-40. As proposed, the additional property will result in a combination of
single-family residential development, a community landscape maintenance facility, a Town
neighborhood park, and open space land uses, as shown below on Exhibit D-2. Additional
information about each of the proposed land uses is detailed below.
Prosper is a place where everyone matters.
PLANNING
Page 211
Item 17.
Page 2 of 3
Single Family Residential – While the applicant is proposing to add 55.8± acres to PD-40, no
additional single family lots are proposed to be entitled in conjunction with this rezoning request.
PD-40 currently allows a maximum of 3,324 total lots, including 1,758 lots permitted within Phases
6-9. With this request, the maximum allowable number of lots is not proposed to be increased;
however, the additional acreage would permit single family residential development in accordance
with Windsong’s current development standards, in the area depicted on Exhibit D-2. At this time,
it is anticipated the single family lots provided in this area will be Type A Lots (minimum 60-foot in
width / 8,000-square-foot in area).
Community Landscape Maintenance Facility – The applicant is proposing to allow for a Community
Landscape Maintenance Facility in the area identified on Exhibit D-2. The proposed facility would
provide for landscaping services primarily for the Windsong Ranch development. At this time, it is
anticipated the facility will be approximately 4,000 square feet in area. The development standards
for the facility would be consistent with the requirements for the non-residential development within
PD-40, as well as with the Town’s Zoning Ordinance, except as follows:
o Building Setback – PD-40 currently requires a minimum 30-foot front building setback; the
applicant is proposing a minimum of 60-foot front building setback.
o Exterior Building Material – PD-40 currently permits stone, stucco, brick, tile, concrete, glass or
similar exterior building materials. The applicant is proposing a building that will have a
minimum 90% brick and/or stone front façade, would require the side and rear elevations to be
constructed of a minimum 10% brick and/or stone, and would allow metal as a permitted exterior
building material on the sides and rear. Further any bay doors would be prohibited from directly
facing right-of-way. A conceptual rendering depicting the style (not materials) of the building
has been included for informational purposes only.
o Perimeter Landscaping – The Zoning Ordinance currently requires large trees and shrubs
planted intermittently around the perimeter of the property. The applicant is proposing to install
solid living screening consisting of evergreen shrubs and large trees around the perimeter of
the site in order to conceal from view any storage and activity related to the facility.
Neighborhood Park and Open Space – The applicant is proposing to designate portions of the
55.8± acres as both community common area/open space, as well as to dedicate a neighborhood
park to the Town, as shown on Exhibit D-2.
Should this request be approved, the developer has indicated an intent to modify the existing
development agreement with the Town regarding masonry construction and architectural design
accordingly.
Legal Obligations and Review:
Notification was provided to neighboring property owners as required by State law. Town staff
has not received any Public Hearing Notice Reply Forms.
Attached Documents:
1. Aerial and Zoning Maps
2. Proposed Zoning Exhibits
3. Informational Exhibits
Planning & Zoning Commission Recommendation:
At their January 5, 2021 meeting, the Planning & Zoning Commission recommended the Town
Council approve the request, by a vote of 6-0.
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Item 17.
Page 3 of 3
Staff Recommendation:
Staff recommends the Town Council approve the request to rezone 55.8± acres, located on the
west side of Good Hope Road, south of Parvin Road, from Agricultural (A) to Planned
Development-40 (PD-40), generally to incorporate tracts of land into the Windsong Ranch
development.
Proposed Motion:
I move to approve the request to rezone 55.8± acres, located on the west side of Good Hope
Road, south of Parvin Road, from Agricultural (A) to Planned Development-40 (PD-40), generally
to incorporate tracts of land into the Windsong Ranch development.
Page 213
Item 17.
FM 1385W UNIVERSITY DR
E FIRST ST
PARVIN RD
E UNIVERSIT Y DR N CUSTER RDE PROSPER TRL
W FIRST ST
W F RONT IER PK WY E FRONTIER PKWY
PR OSPER RD
N PRESTON RDN DALLAS PKWYS PRESTON RDFISHTRAP RD
GEE RDPARVI N R D
PROSPER RD
GOOD HOPE RDTEEL PKWYSANDHILLS LN
WINDSONG PKWY
MILL POND DR
SILVER SPUR DRWALNUT GROVE LN
0 1,500750Feet
µ
Z20-0023 - Windsong Ranch
This map is for illus tr ation purpos es only.
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Item 17.
FM 1385W UNIVERSITY DR
E FIRST ST
PARVIN RD
E UNIVERSIT Y DR N CUSTER RDE PROSPER TRL
W FIRST ST
W F RONT IER PK WY E FRONTIER PKWY
PR OSPER RD
N PRESTON RDN DALLAS PKWYS PRESTON RDFISHTRAP RD
GEE RDPD-40
PD-40
PD-40
PD-103
PD-40
A
SF
SF
A
SF
O
SF
SF-15
SF
PARVI N R D
PROSPER RD
GOOD HOPE RDTEEL PKWYSANDHILLS LN
WINDSONG PKWY
MILL POND DR
SILVER SPUR DRWALNUT GROVE LN
0 1,500750Feet
µ
Z20-0023 - Windsong Ranch
This map is for illus tr ation purpos es only.
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Item 17.
Doc. No. 2014-16824 OPRDCT Tract 1Doc. No. 2018-142926 OPRDCTDoc. No. 2015-84869 OPRDCT
Line Table Line Table
Vol. 89, Pg. 555 DRDCT
Line Table
POB
Tract 1
48.323 Ac.
(2,104,960 S.F.)
Tract 1
2.000 Ac.
(87,120 S.F.)
Tract 2
POB
Tract 2
5.433 Ac.
(236,662 S.F.)
Tract 3
POB
Tract 3
H
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LOCATION MAP
LEGEND
1/2" IRON ROD W/ PLASTIC CAP
STAMPED "SPIARSENG" SET, UNLESS
OTHERWISE NOTED.
IRON ROD FOUND
CAPPED IRON ROD FOUND
POWER POLE
SAN. SEWER MANHOLE
GUY WIRE ANCHOR
SIGNPOST
FIRE HYDRANT
GAS LINE MARKER
FIBREOPTIC CABLE MARKER
WATER VALVE
WATER METER
SANITARY SEWER CLEANOUT
BARBED WIRE FENCE
OVERHEAD POWER LINE
CONTROL MONUMENT
METES AND BOUNDS DESCRIPTION
TRACT 1
TRACT 2
TRACT 3 TOWN OF PROSPERDENTON COUNTY, TEXASZONING EXHIBITVP WINDSONG OPERATIONS, LLC1
EX. A-4
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Item 17.
e. Pocket Parks Additional components of the Windsong Ranch amenities
program are smaller pocket parks within individual neighborhoods. These
parks will be an HOA maintained component of the open space system,
and allow for:
• Providing valuable open space in adjacency to smaller
homes;
• integration of existing tree rows and other natural features
that warrant preservation;
• ensuring one-quarter mile resident walks to a component of
the open space system;
• additional passive and moderately active recreational
opportunities, including:
open play areas;
natural interpretive areas;
neighborhood playgrounds;
children’s water play area;
small neighborhood gathering spaces.
2. Single-Family Residential Tract
a. General Description: Residential uses shall be permitted throughout the Property
as set forth herein.
b. Allowed Uses: Land uses allowed within the Single-Family Residential Tract are
as follows: Uses followed by an S are permitted by Specific Use Permit. Uses
followed by a C are permitted subject to conditional development standards.
Conditional development standards are set forth in Chapter 3, Section 1 of the
Town’s Zoning Ordinance.
• Accessory buildings incidental to the allowed use and constructed of the
same materials as the main structure.
• Churches / rectories
• Civic facilities
• Community Landscape Maintenance Facility (as outlined in Section 2.g.)
• Electronic security facilities, including gatehouses and control counter
• Fire stations and public safety facilities
• Guest House
• Home Occupation C
• Model Home
• Park or Playground
• Private Recreation Center
• Private Street Development and gated communities S
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Item 17.
• Public or Private Parks, playgrounds and neighborhood recreation facilities
including, but not limited to, swimming pools, clubhouse facilities and tennis
courts, to be stated on plat
• Single family residential uses as described herein
• Schools – public or private
• Golf Course for Country Club (including clubhouse, maintenance facilities,
on-course food and beverage structure, and on course restroom facilities.)
• Temporary real estate sales offices for each builder during the
development and marketing of the Planned Development which shall be
removed no later than 30 days following the final issuance of the last
Certificate of Occupancy (CO) on the last lot owned by that builder.
• Temporary buildings of the builders and uses incidental to construction
work on the premises, which shall be removed upon completion of such
work.
• Townhouses (only as a buffer use as set forth herein)
• Utility distribution lines and facilities. Electric substations shall be allowed
at the sole discretion of the Developer.
c. Density: The maximum number of single family detached units for the Properties
is 3,324, of which 1,758 lots shall be in Phases 6 through 9 (as depicted on Exhibits
A-3 and A-4).
d. Lot Types: The single family detached lots developed within the Properties shall
be in accordance with the following Lot Types:
• Type A Lots: Minimum 8,000 square foot lots
• Type B Lots: Minimum 9,000 square foot lots
• Type C Lots: Minimum 10,500 square foot lots
• Type D Lots: Minimum 12,500 square foot lots
• Type E Lots: Minimum 6,000 square foot lots
• Type F Lots: Minimum 20,000 square foot lots
e. Lot Type Development Threshold:
A. Planning and Zoning Commission can approve up to three
hundred (300) Type E final platted Lots prior to the final
acceptance by Town of twenty (20) Type F Lots.
f. Area and building regulations:
a. Type A Lots: The area and building standards for Type A Lots are as
follows and as set forth in Table 1:
A. Minimum Lot Size. The minimum lot size for Type A Lots shall
be 8,000 square feet. A typical lot will be 60’ x 133’, but may
vary as long as requirements in Table 1 are accommodated.
B. Minimum Lot Width. The minimum lot width for Type A Lots
shall be sixty (60) feet.
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Item 17.
iii.Corner lots adjacent to a street shall plant (1)
additional tree in the side yard.
iv.Trees shall be a minimum of three caliper inches
(3”) as measured at 1 foot above grade.
v.The front, side and rear yard must be irrigated by
a programmable irrigation system and sodded
with grass.
O.Mailboxes. Mailboxes on a Type F Lot shall be consistent with
the theme for the street and with the materials of the home on
the respective lot, unless otherwise required by USPS (United
States Postal Service).
P.Satellite Dishes. Satellite dishes, limited to eighteen inches
(18”) in diameter or smaller, mounted below the ridgeline on the
roof, and not in public view from the front of the home are
permitted on Type F Lots.
Q.Air Conditioners. No window or wall air conditioning units will
be permitted on structures on Type F Lots. Outside condensing
units (compressors) which are not located within a privacy
fenced area shall be screened by shrubbery save and except
access and service space to the condensing units which may
not be visible from the street.
R.Plan Elevations. On Type F Lots, specific plan elevations shall
not be repeated within a given platted phase.
S.Accessory Structures. Accessory structures used as a
garage, a garage apartment, or guest house, will be allowed.
i.Accessory structures shall be subject to the
same exterior construction and architectural
standards as the main dwelling.
ii.Accessory structures shall be separate from the
main dwelling by a minimum of ten feet (10’),
have a minimum Rear yard setback of ten feet
(10’), and a minimum Side yard setback of eight
feet (8’).
g.Community Landscape Maintenance Facility:
A.Permitted Use. A Community Landscape Maintenance Facility
shall be a permitted primary use and may consist of
equipment maintenance, open storage, and associated
management offices, providing for the establishment and
maintenance of landscaping and related services for common
areas and open
Page 219
Item 17.
spaces owned by the Windsong Ranch Homeowners
Association (HOA).
B. Location. A Landscape Maintenance Facility shall be
permitted in a location as identified on Exhibit D-2.
C. Development Standards. A Landscape Maintenance Facility
shall develop in accordance with Mixed-Use Development
Standards (Traditional Retail), as outlined in Section 3., d.,
except as follows:
i. Minimum Front Yard: Sixty Feet (60’)
ii. Front Façade: Shall consist of a minimum of
ninety percent (90%) brick and/or stone
exterior building material.
iii. Side and Rear Facades: Shall consist of a
minimum of ten percent (10%) brick and/or
stone, and the use of metal as an exterior
building material shall be permitted.
iv. Bay Doors: Shall not be permitted to directly
face right-of-way.
v. Perimeter landscaping shall consist of the
following:
(a) Large trees (as defined by the Zoning
Ordinance), a minimum 3-inch caliper
at the time of planting, planted 30-foot
on center, in addition to evergreen
shrubs, a minimum 45-gallon and
eight-feet in height at the time of
planting, planted 6-foot on center.
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Item 17.
Doc. No. 2014-16824 OPRDCT Tract 1Doc. No. 2018-142926 OPRDCTDoc. No. 2015-84869 OPRDCT
Vol. 89, Pg. 555 DRDCT
H
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LOCATION MAP
TOWN OF PROSPERDENTON COUNTY, TEXASZONING EXHIBITVP WINDSONG OPERATIONS, LLC1
EX D-2
LAND USE LEGEND
LANDSCAPE
MAINTENANCE FACILITY
RESIDENTIAL
OPEN SPACE
NEIGHBORHOOD PARK
CONCEPTUAL DEVELOPMENT PLAN
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Item 17.
LAND USE LEGENDLANDSCAPEMAINTENANCE FACILITYRESIDENTIALOPEN SPACENEIGHBORHOOD PARKCONCEPTUAL DEVELOPMENT PLANPage 222Item 17.
Note: Exhibit is for informational purposes only, in order to show the generalstyle and scale of the proposed Community Landscape Maintenance Facility.Page 223Item 17.