Proposed Budget PH Prensentation 8-29-13Town of Prosper
Proposed Budget
Public Hearing
August 29, 2013
Presented by
Harlan Jefferson
Town Manager
2
No Tax Rate Increase
No Water or Sewer Rate Increase
No Solid Waste Rate Increase
No Storm Drainage Fee Increase
No Other Fee Increases
3
Town of Prosper Population
Source: Census for available years. Population estimates through 2013 are from North
Central Texas Council of Governments; future estimates are from Town of Prosper staff.
2,097 2,400 3,100
5,250 6,350
9,423
11,160 12,190
13,380
14,986
16,784
27,524
0
5,000
10,000
15,000
20,000
25,000
30,000
4
New Residential Construction Expanded Tax Base & More Population
More Population Increased Demand for Services, Programs,
Facilities & Infrastructure
Increased Demand More Staff, Equipment & Capital Projects
More Capital Projects More Capital Debt
More Capital Debt Increased Annual Debt Service
Increased Debt Service Less Revenue for O&M (Services, Programs,
Staff & Equipment
Less Revenue for O&M More Property Tax Revenue Required to
Support Expanded Tax Base
High Growth Dynamic
5
1st Quarter 2nd Quarter July Issuance August
Issuance
3rd Quarter 4th Quarter TOTAL
SF Residential Permits 2008 53 87 18 21 56 30 226
SF Residential Permits 2009 28 47 18 50 99 75 249
SF Residential Permits 2010 79 82 21 17 63 62 286
SF Residential Permits 2011 85 102 24 36 97 89 373
SF Residential Permits 2012 93 145 41 44 118 105 461
SF Residential Permits 2013 89 134 Record
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As of
8/28
42
329
0
100
200
300
400
500
First Quarter Second Quarter Third Quarter Fourth Quarter
226
249
286
373
461329
Number of Permits2008
2009
2010
2011
2012
Summary of Single Family Residential Permits Issued by Quarter Annually 2008 –Present
Summary of Single-Family Residential Permits
6
323
1560 1572
115
559
729
0
200
400
600
800
1000
1200
1400
1600
1800
2011 2012 2013 (Jan -
August)
Single Family Lots
shown on
Preliminary Plats
Single Family Lots
shown on Final
Plats
Summary of Single-Family Lots
All Funds
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Annual Fund Summaries
FUND ACCOUNT TYPE ACTUAL 2011-2012
BUDGETED
2012-2013
PROJECTED
2012-2013
PROPOSED
BUDGET 2013-
2014
GENERAL REVENUES 9,799,465 9,162,627 10,541,095 11,761,317
EXPENDITURES 8,287,290 10,217,532 9,709,114 12,570,315
NET REVENUES OVER (UNDER) EXPENDITURES 1,512,176 (1,054,905)831,981 (808,998)
WATER / SEWER REVENUES 7,414,680 7,901,000 8,390,570 8,975,450
EXPENDITURES 6,316,516 7,686,516 7,515,477 9,277,338
NET REVENUES OVER (UNDER) EXPENDITURES 1,098,164 214,484 875,093 (301,888)
DEBT SERVICE (I&S)REVENUES 3,603,283 2,781,956 2,786,946 2,823,240
EXPENDITURES 3,450,910 2,556,482 2,556,482 2,821,380
NET REVENUES OVER (UNDER) EXPENDITURES 152,372 225,474 230,464 1,860
CAPITAL PROJECTS REVENUES 10,690,090 242,000 9,438,719 3,023,070
EXPENDITURES 8,355,673 4,501,085 10,059,177 3,082,242
NET REVENUES OVER (UNDER) EXPENDITURES 2,334,417 (4,259,085)(620,458)(59,172)
PARKS REVENUES 401,843 128,800 293,110 301,550
EXPENDITURES 799,516 1,620,000 196,256 700,000
NET REVENUES OVER (UNDER) EXPENDITURES (397,673)(1,491,200)96,854 (398,450)
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Annual Fund Summaries (Cont’d)
FUND ACCOUNT TYPE
ACTUAL
2011-2012
BUDGETED
2012-2013
PROJECTED
2012-2013
PROPOSED BUDGET
2013-2014
IMPACT FEES REVENUES 2,075,347 2,620,000 2,080,097 2,620,000
EXPENDITURES 1,182,214 6,163,000 3,280,900 1,835,000
NET REVENUES OVER (UNDER) EXPENDITURES 893,133 (3,543,000)(1,200,803)785,000
INTERNAL SERVICE REVENUES 58,434 82,300 47,860 49,660
EXPENDITURES 49,562 50,000 45,000 49,000
NET REVENUES OVER (UNDER) EXPENDITURES 8,872 32,300 2,860 660
SPECIAL REVENUE REVENUES 798,048 52,400 4,051,500 56,400
EXPENDITURES 348,331 71,200 4,994,681 59,200
NET REVENUES OVER (UNDER) EXPENDITURES 449,717 (18,800)(943,181)(2,800)
STORM DRAINAGE REVENUES 206,643 209,000 210,000 230,400
EXPENDITURES 156,736 268,313 233,110 230,274
NET REVENUES OVER (UNDER) EXPENDITURES 49,907 (59,313)(23,110)126
GRAND TOTAL REVENUES 35,047,832 23,180,083 37,839,897 29,841,087
GRAND TOTAL EXPENDITURES 28,946,748 33,134,128 38,590,198 30,624,749
NET REVENUES OVER (UNDER) EXPENDITURES 6,101,084 (9,954,045)(750,301)(783,662)
General Fund
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General Fund Revenues by Source
Revenue Category FY 2014 Proposed % of Total
Property Tax $5,241,475 44.6%
License, Fees & Permits $1,786,300 15.2%
Sales Tax $2,736,900 23.3%
Interfund Transfers In $801,700 6.8%
Franchise Fees $473,000 4.0%
Fines & Warrants $215,130 1.8%
Charges for Services $177,000 1.5%
Investment Income $60,000 0.5%
Grants $18,087 0.2%
Miscellaneous $218,075 1.9%
Park Fees $33,650 0.3%
Revenue Total $11,761,317 100.0%
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General Fund Dept. Appropriations
Department FY 2014 Proposed % of Total
Fire Dept $2,596,864 20.7%
Police Dept $1,826,091 14.5%
Administration $1,777,643 14.1%
Parks $1,835,960 14.6%
Dispatch $718,791 5.7%
Inspections $825,756 6.6%
Streets $1,367,305 10.9%
Planning $490,682 3.9%
Municipal Court $257,028 2.0%
Code Compliance $164,151 1.3%
Engineering $480,908 3.8%
Fire Marshal $123,595 1.0%
Public Library $105,541 0.8%
Expense Total $12,570,315 100.0%
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General Fund Proposed Positions
POSITIONS FTEs
One (1) Plans Examiner 1.0
CIP Project Manager (Benefits Only)N/A
One (1) Librarian –Youth Services .5
One (1) Crew Leader 1.0
One (1) Maintenance Worker 1.0
One (1) Recreation Services Coordinator 1.0
TOTAL GENERAL FUND POSTIONS 4.5
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General Fund Discretionary Packages
Increases over Budgeted FY 13
Package Title $ Proposed Budget
Parks & Recreation Master Plan Update 125,000
Frontier Park Improvements 101,000
Maintenance Capital Improvements 120,000
Prosper Trail Landscaping 60,000
Subdivision Ordinance Update 100,000
School Flashers 110,000
Median Stamp and Stain –SH 289 125,000
Install Irrigation Conduits –SH 289 100,000
Thirteen Decorative Monument Signs 150,020
Downtown Enhancements 475,000
Three Replacement Vehicles 145,150
Active Shooter Response 28,690
Smart 911 Software 5,000
Water/Sewer Fund
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Water/Sewer Fund Revenues by Source
Revenue Category FY 2014 Proposed % of Total
Water Charges $5,200,000 57.9%
Sewer Charges $2,247,850 25.0%
Solid Waste Charges $800,000 8.9%
Tap & Construction $450,000 5.0%
Penalties $56,000 0.6%
Investment Income $70,000 0.8%
License, Fees & Permits $50,000 0.6%
Miscellaneous $101,600 1.1%
Revenue Total $8,975,450 100.0%
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Water/Sewer Fund Dept. Appropriations
Department FY 2014 Proposed % of Total
Water $ 6,436,590 69.4%
Sewer $ 1,918,706 20.7%
Utility Billing $ 922,042 9.9%
Expense Total $ 9,277,338 100.0%
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Enterprise Fund Proposed Positions
POSITIONS FTEs
One (1) Admin. Conservation Coordinator 1.0
One (1) Utility Worker/Meter Reader 1.0
One (1) Senior Construction Inspector 1.0
TOTAL ENTERPRISE FUND POSTIONS 3.0
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Water/Sewer Fund Discretionary Packages
Increases over Budgeted FY 13
Package Title $ Proposed Budget
Public Works Building 203,000
Backhoe 95,000
GIS Work Order System 55,000
Skid Steer Equipment 21,000
Mower 12,000
Generator 30,000
Long-Term Issues
and Key Dates
21
Long-Term Issues
Compensation
Windsong Ranch Fire Station
Facility Planning
Vehicle and Equipment Replacement Program
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Salary Survey
Source: NTCMA Budget Work Sheets
Merit Public Safety Across the Board Market Study / Adjustments;
City Increases Step Increases Increases Other
Carrollton N/A Yes 3%N/A
Cedar Hill 4%N/A N/A Certified Public Safety Employees -Market
Adjustment
Colleyville N/A N/A N/A
Considering implementation of new
classification and compensation system.
Would adjust pay ranges for a number of
positions.
Coppell 3%N/A 0 N/A
Dallas 3%Yes, if eligible 0 N/A
Denton 3% average N/A N/A
Equity adjustments for employees in current
positions for 5+ years, but below midipoint
of salary range
Euless N/A N/A 3.5% across the board N/A
Farmers Branch 0-4%N/A 0 N/A
Grand Prairie TBD Civil Service: 5%
unless topped out N/A N/A
Haltom City 0 N/A 0 N/A
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Salary Survey (Cont’d)
Merit Public Safety Across the Board Market Study / Adjustments;
City Increases Step Increases Increases Other
Highland Park 2.5 -3%N/A N/A N/A
Hurst N/A N/A 2% COLA N/A
Lancaster N/A N/A 2%N/A
Little Elm N/A N/A N/A Plan to do market study and adjustment
Mansfield N/A N/A 3%N/A
Mesquite 3%N/A 0 N/A
North Richland
Hills 2-3%N/A N/A N/A
Plano N/A 2% Civil Service 3% Non-Civil Service N/A
Prosper 0-3%N/A N/A N/A
Richardson N/A 5%2-3% for those not
eligible for Step N/A
Watauga 3%N/A N/A N/A
Waxahachie N/A N/A N/A Comment:Too early to tell
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Fund Balance
Fund Balance Policy
-Contingent Reserve in the Town Charter
additional 20% (or 72 days)
-Minimum unassigned fund balance
25% (or 90 days) of total appropriations
FYE 2014 projected amount not otherwise restricted or held in contingency
$1,446,685
-equates to an additional 41days of operations
Potential Uses
-One-time cash funding of a project (e.g. Windsong Ranch Fire Station)
-Transfer to Capital Replacement Fund for equipment, fleet, etc…
-Leave intact to absorb rapid growth
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Estimated Cost for Opening
Windsong Ranch Fire Station
Associated Cost Recurring One-time
Operation & Maintenance $142,000
Debt Service $376,000
Staff $854,000
Uniforms $34,000
Safety Equipment $64,000
Fire Engine $815,000
Ambulance $263,000
Brush Truck $150,000
Total Estimated Cost $1,372,000 $1,326,000
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General Fund Comparison
Source: First Southwest Company
Moody's Total Total Total Ending Balance to Unassigned Unassigned to
City GO Rating Revenues Expenditures Balance Expenditures Fund Balance Expenditures
Carrollton Aa1 $ 78,499,952 $ 75,227,294 $ 18,339,631 24.4%$ 18,051,247 24.0%
Cedar Hill Aa2 $ 27,971,282 $ 28,158,241 $ 8,079,525 28.7%N/A N/A
(unaudited)
Colleyville NR $ 19,206,001 $ 17,429,516 $ 12,708,825 72.9%$ 11,762,625 67.5%
Coppell Aaa $ 48,418,783 $ 43,364,365 $ 53,022,482 122.3%$ 20,536,051 47.4%
Dallas Aa1 $ 996,582,000 $974,584,000 $ 149,036,000 15.3%$ 101,205,000 10.4%
Denton Aa2 $ 83,635,952 $ 80,834,359 $ 25,836,080 32.0%$ 25,171,186 31.1%
Euless Aa2 $ 29,515,916 $ 30,055,184 $ 9,311,735 31.0%$ 8,913,078 29.7%
Farmers Branch Aa2 $ 42,619,016 $ 48,184,093 $ 11,599,826 24.1%$ 8,629,830 17.9%
Flower Mound Aa1 $ 41,889,004 $ 40,034,833 $ 11,067,156 27.6%$ 10,824,943 27.0%
Grand Prairie Aa2 $ 98,196,707 $ 86,813,646 $ 27,913,756 32.2%$ 25,938,708 29.9%
Haltom City Aa3 $ 20,853,824 $ 21,534,441 $ 10,770,699 50.0%$ 10,571,395 49.1%
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General Fund Comparison Cont’d
Source: First Southwest Company
Moody's Total Total Total Ending Balance to Unassigned Unassigned to
City GO Rating Revenues Expenditures Balance Expenditures Fund Balance Expenditures
Highland Park WR $ 18,090,878 $ 15,832,605 $ 4,417,734 27.9%$ 3,935,177 24.9%
Hurst Aa2 $ 28,204,369 $ 24,034,016 $ 10,046,058 41.8%$ 7,452,789 31.0%
Lancaster Aa3 $ 19,830,150 $ 19,492,188 $ 6,793,956 34.9%$ 6,793,956 34.9%
Little Elm Aa3 $ 15,527,288 $ 14,723,428 $ 7,102,177 48.2%$ 6,130,718 41.6%
Mansfield Aa2 $ 38,011,971 $ 36,797,730 $ 10,571,459 28.7%$ 9,887,317 26.9%
Mesquite Aa2 $ 89,720,055 $ 88,032,451 $ 17,038,518 19.4%$ 16,026,024 18.2%
North Richland
Hills Aa2 $ 35,985,943 $ 37,478,475 $ 14,328,758 38.2%$ 8,992,908 24.0%
Plano Aaa $ 209,327,800 $199,546,828 $ 52,966,763 26.5%$ 50,197,033 25.2%
Prosper Aa3 $ 8,996,594 $ 8,576,902 $ 7,080,344 82.6%$ 5,355,859 62.4%
Richardson Aaa $ 98,728,025 $ 94,037,642 $ 17,160,003 18.2%$ 16,274,185 17.3%
Watauga Aa3 $ 10,275,529 $ 11,182,949 $ 5,645,602 50.5%$ 5,584,021 49.9%
Waxahachie Aa3 $ 23,004,444 $ 23,150,834 $ 11,170,439 48.3%$ 11,151,537 48.2%
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Key Dates in Budget Process
September 10
September 24
October 1
2nd Public Hearing on Budget
2nd Public Hearing on Tax Rate
Council adopts the FY 2014 Budget;
Council sets the 2013 Tax Rate
Fiscal Year 2014 begins
Thank You!
Questions?