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20140826 Proposed Budget PresentationTown of Prosper, Texas Proposed Budget and Tax Rate Public Hearings August 26, 2014 No Tax Rate Increase No Water or Sewer Rate Increase No Solid Waste Rate Increase No Storm Drainage Fee Increase No Other Fee Increases Proposed FY 2014-2015 Budget Includes: 2 Public Safety Streets Parks Proposed FY 2014-2015 Budget Focus: 3 Budget Components Base Budget—example: electricity, existing personnel costs. Total: $23,850,804 Non-Discretionary Supplemental Request (“must do”) — examples: external increase in software maintenance fees, changes from state law. Total: $592,358 Discretionary Supplemental Request (“should do”) —examples: new positions or vehicles, park or public works projects. Total: $3,662,331 Cut Supplemental Request (“should do” and “nice to do”) Total: $3,293,425 4 All Funds Primary Fund Summaries 6 Fund Account Type 2013-2014 2014-2015 Change $Change % General Revenue (11,761,317)(14,506,034)(2,744,717)23.3% Expenditure 12,457,760 14,489,367 2,031,607 16.3% Revenues (over)/under expenditures 696,443 (16,667) Water/Sewer Revenue (8,975,450)(10,295,293)(1,319,843)14.7% Expenditure 9,277,338 10,462,875 1,185,537 12.8% Revenues (over)/under expenditures 301,888 167,582 Debt Service (I & S)Revenue (2,823,240)(2,955,065)(131,825)4.7% Expenditure 2,821,380 2,870,065 48,685 1.7% Revenues (over)/under expenditures (1,860)(85,000) Storm Drainage Revenue (230,400)(272,000)(41,600)18.1% Expenditure 394,000 283,186 (110,814)-28.1% Revenues (over)/under expenditures 163,600 11,186 Four Primary Funds Revenue (23,790,407)(28,028,392)(4,237,985)17.8% Expenditure 24,950,478 28,105,493 3,155,015 12.6% Revenues (over)/under expenditures 1,160,071 77,101 Special Purpose Fund Summaries 7 Fund Account Type 2013-2014 2014-2015 Change $Change % Special Revenue Revenue (56,400)(50,380)6,020 -10.7% Expenditure 59,200 75,133 15,933 26.9% Revenues (over)/under expenditures 2,800 24,753 Park Improvement/Revenue (301,550)(502,000)(200,450)66.5% Dedication Expenditure 700,000 314,000 (386,000)-55.1% Revenues (over)/under expenditures 398,450 (188,000) Capital Projects Revenue (1,973,070)20,848,500 22,821,570 -1156.7% Expenditure 4,780,000 24,730,175 19,950,175 417.4% Revenues (over)/under expenditures 2,806,930 (3,881,675) Capital Projects--Revenue (1,050,000)(404,581)645,419 -61.5% Water/Sewer Expenditure 1,000,000 2,082,500 1,082,500 108.3% Revenues (over)/under expenditures (50,000)1,677,919 Impact Fee Fund Summaries 8 Fund Account Type 2013-2014 2014-2015 Impact Fees Revenue (2,620,000) (Combined)Expenditure 1,835,000 Revenues (over)/under expenditures (785,000) Impact Fees- Revenue (1,448,500) Thoroughfares Expenditure 1,905,000 Revenues (over)/under expenditures 456,500 Impact Fees- Revenue (2,148,500) Water Expenditure 926,887 Revenues (over)/under expenditures (1,221,613) Impact Fees- Revenue (377,150) Wastewater Expenditure 136,600 Revenues (over)/under expenditures (240,550) General Fund General Fund Revenues by Source Revenue Category FY 2015 Proposed % of Total Property Tax $6,970,290 48.05% Sales Tax $2,933,823 20.22% Licenses, Fees, and Permits $2,451,300 16.90% Interfund Transfers In $877,403 6.05% Franchise Fees $562,000 3.87% Fines and Forfeitures $245,000 1.69% Charges for Service $237,170 1.63% Miscellaneous $229,048 1.58% Total Revenue $14,506,034 100.00% 10 General Fund Dept. Appropriations Department Proposed FY 2015 Fire/EMS $3,322,923 Police $2,655,757 Parks and Recreation $2,061,580 Inspections $941,402 Streets $938,985 Non-Departmental $826,236 Finance $791,743 Engineering $703,938 Town Manager's Office $621,034 Planning $486,663 Human Resources $214,764 Town Secretary's Office $214,654 Municipal Court $209,966 Code Enforcement $163,121 Library $163,011 Fire Marshal $143,590 $14,459,367 1.5% 1.5% 1.1% 1.1% 1.0% 100.0% 5.7% 5.5% 4.9% 4.3% 3.4% 1.5% % of Total 23.0% 18.4% 14.3% 6.5% 6.5% 11 General Fund Proposed Positions Positions FTEs Three (3) Police Patrol Officers 3 One (1) Police Sergeant 1 Twelve (12) Firefighter/Paramedics 12 One (1) Parks & Rec Senior Administrative Assistant 1 One (1) Building Inspection Administrative Assistant 1 One (1) Building Inspection Plumbing Inspector 1 One (1) Planner I 1 Total General Fund Positions 20 12 General Fund Major Discretionary Requests Increases over budgeted FY 2015 13 Request Title Proposed Amount SW Corner Frontier Park Lighting $425,000 Preston Road Illumination $415,000 Windsong Ranch Fire Station Staffing $400,824 Vehicle/Equipment Repl. Fund Contribution $398,698 Three (3) Police Patrol Officer Positions $259,995 In-Range Movement-Pay Plan $177,873 Parks Repair and Maintenance Projects $113,500 One (1) Police Sergeant Position $76,263 Downtown Enhancements $75,000 One (1) Plumbing Inspector $71,486 One (1) Planner $54,868 VoiceTrakit IVR (Interactive Voice Response)$16,500 Property Taxes 2014 Valuations Overview •Certified Total Taxable (after freeze loss) Increased 21.1% Collin County Value $ 1,688,310,574 Denton County Value $ 64,944,344 Total Value $ 1,753,254,918 •Existing Taxable Values Increased 11.27 % + 11.38% in Collin County + 8.19% in Denton County •New Construction Totaled $ 142,671,100 Collin County $134,232,159 Denton County $8,438,941 15 Property Valuation History Source: Collin CAD and Denton CAD Certified Totals 2005-2014 $406,296 $569,039 $790,120 $978,986 $1,015,915 $1,145,769 $1,205,781 $1,253,321 $1,447,466 $1,753,254 $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 $1,800,000 $2,000,000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014Thousands 16 Average Single-Family Home Value Source: Collin CAD and Denton CAD Certified Totals 2005-2014 $255,321 $279,468 $315,308 $342,977 $344,458 $333,084 $324,387 $321,662 $351,317 $378,651 $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 17 Ad Valorem Taxes Source: Collin CAD and Denton CAD Certified Totals 2014 2014 Freeze Adjusted Taxable Value $1,753,254,918 Times Total Tax Rate per $100 $0.52 $9,116,926 Times Anticipated Collection Rate 100% $9,116,926 Plus Actual Tax from Freeze $618,429 Total Tax Levy $9,735,355 One Penny on the Tax Rate Yields $175,325 18 Property Tax Rate History Fiscal Year General Fund I & S Fund Total Rate 2009-10 0.314084 0.205916 $0.520000 2010-11 0.334742 0.185258 $0.520000 2011-12 0.316937 0.203063 $0.520000 2012-13 0.316914 0.203086 $0.520000 2013-14 0.326191 0.193809 $0.520000 2014-15 Proposed 0.356301 0.163699 $0.520000 $0.00 $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 ProposedTax Rate per $100General Fund I & S Fund 19 Property Tax Rate Comparison I (2013 Tax Rates) Source: Collin, Dallas, and Tarrant Central Appraisal Districts. - 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00 90.00 100.00 20 Property Tax Rate Comparison II Source: Collin, Dallas, and Tarrant Central Appraisal Districts. Prosper, $0.52 , 21% Prosper ISD, $1.67 , 66% Collin County, $0.32 , 13% 21 Average Home Owner 2014 Average Homestead Taxable Value = $ 378,651 Average Prosper Resident Total Tax Bill –Collin County Note: Average Taxes are computed using 2013 tax rates for all agencies. Excludes possible exemptions with each entity for simplicity. Taxing Entity Tax Rate per $100 Tax Levy Prosper ISD $1.670000 $6,323 Town of Prosper $0.520000 $1,969 Collin County $0.237500 $899 Collin College $0.083643 $317 Totals $2.511143 $9,508 22 Adopted vs. Effective Tax Rate History 2008 2009 2010 2011 2012 2013 2014 ETR $0.4863 $0.5235 $0.5270 $0.5211 $0.5183 $0.4912 $0.4682 Adopted Rate $0.5200 $0.5200 $0.5200 $0.5200 $0.5200 $0.5200 $0.5200 $0.0000 $0.1000 $0.2000 $0.3000 $0.4000 $0.5000 $0.6000 23 Property Tax Rate Scenarios 2014 Average Homestead Taxable Value = $378,651 Tax Rate Scenarios –Homeowner Impact Current & Proposed Rate $0.520000 -$1,969 Effective Rate $0.468183 -$1,773 Rollbck Rate $0.429220 -$1,625 Tax Rate Scenarios –Municipal Impact Current & Proposed Rate $0.520000 -$1,969 Effective Rate $0.468183 –($908,484) LOSS Rollbck Rate $0.429220 –($1,591,605) LOSS 24 Water/Sewer Fund Water/Sewer Fund Revenues by Source Revenue Category Proposed FY 2015 % of Total Water Revenues $5,605,000 54.44% Sewer Charges $2,777,000 26.97% Sanitation Charges $900,000 8.74% Connection Fees $728,750 7.08% Service Initiation Fees $57,043 0.55% Miscellaneous $227,500 2.21% Total Revenue $10,295,293 100.00% 26 Water/Sewer Fund Dept. Appropriations Department FY 2015 Proposed % of Total Non-Departmental $3,959,112 37.8% Water $3,661,569 35.0% Sewer $1,820,137 17.4% Utility Billing $1,022,007 9.8% Total Appropriations $10,462,825 100.0% 27 Water/Sewer Fund Proposed Positions Positions FTEs One (1) Backflow Inspector 1 One (1) Utility Crew Leader 1 One (1) Heavy Equipment Operator 1 One (1) Storm Water Utility Administrator 1 Total Enterprise Fund Positions 4 28 Water/Sewer Fund Major Discretionary Requests Increases over budgeted FY 2015 29 Request Title Proposed Amount Vehicle/Equipment Repl. Fund Contribution $135,324 One (1) Utility Crew Leader $94,305 Vacuum Trailer/Jetter $75,000 One (1) Heavy Equipment Operator $47,634 In Range Movement-Pay Plan $39,681 Household Hazardous Waste Vouchers $3,500 Long-Term Issues and Key Dates Long-Term Issues Compensation Facility Planning Vehicle and Equipment Replacement Program 31 Compensation Goal –to attain a pay plan comparable to the market that helps to attract and retain employees 2014 study found 24 of 37 benchmark positions were compensated below the survey minimum, while others were compensated below the midpoint for their range FY 2014-2015 budget proposes $20,510 to move posi- tions to minimum and $217,554 for market-based movement 32 Facilities Planning Town employees are spread among eight locations, including two temporary buildings Windsong Ranch fire station needed to serve west side Town Hall needs assessment in progress Efficiencies and improved customer service will result from well-planned Town Hall and other facilities 33 Estimated Cost for Opening Windsong Ranch Fire Station Note: Of the $1,513,076 in one-time costs, $1,326,000 was funded from reserves via a budget amendment in September 2013. Cost Category Recurring One-time Operation & Maintenance $73,200 Debt Service $376,000 Staff (partial year)$400,324 Uniforms $34,236 Safety Equipment $42,600 Furnishings and Equipment $208,240 Fire Engine $815,000 Ambulance $263,000 Brush Truck $150,000 Total Estimated Cost $849,524 $1,513,076 34 Vehicle/Equipment Replacement Fund (VERF) Motorized Vehicles Non-Vehicle Equipment Computer Equipment 35 Current Practice No replacement fund No replacement schedule Each department makes request during annual budget preparation process Resulting total purchases can vary sharply Purchases may be more limited in down economic years 36 $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 FY 2012 FY 2013 FY 2014 YTD TOWN OF PROSPER, TEXAS ANNUAL VEHICLE PURCHASES 37 VERF Overview Common to many municipalities and commercial companies Vehicle and equipment expected life in years and purchase price drive annual contributions into separate replacement fund Vehicle and equipment are disposed of when useful life is reached and replacements are purchased from fund 38 VERF Replacement Schedules 39 Department Purchase Year Model Year Auto Make Auto Model Type Estimated Value Estimated Life (Total) Replacement Year Annual Contribution Public Works--Wastewater 1985 Chevrolet Camera Van Van 110,000$ 10 1995 -$ Fire 1993 Ford F350 1T Brush Truck Fire Truck 140,000$ 15 2008 -$ Public Works--Water 2001 Ford Expedition SUV 24,000$ 10 2011 -$ Public Works--Wastewater 2001 Dodge Ram 1500 Pickup Pickup 16,000$ 10 2011 -$ Fire 1997 Pierce 4900 Fire Engine Fire Truck-Pumper 250,000$ 15 2012 -$ Public Works--Wastewater 2002 Dodge Ram 1500 Pickup Pickup 16,000$ 10 2012 -$ Police-Class Car 2009 2008 Ford Crown Victoria Former Pursuit Vehicle-Police 38,000$ 6 2014 -$ Public Works--Water 2004 Chevrolet K1500 Pickup 20,000$ 10 2014 -$ Police-Patrol 2011 2011 Chevrolet Tahoe Truck-Sport Utility 38,000$ 4 2015 9,500$ Building Inspections 2005 Ford F150 1/2T Pickup 16,000$ 10 2015 1,600$ Building Inspections 2005 Chevrolet Silverado Pickup 20,000$ 10 2015 2,000$ VERF Implementation Initial investment required to establish fund: $800,000 in FY 2014 and $800,000 in FY 2015 Departments would begin contributing monthly Vehicles/equipment other than replacements are still budgeted individually 40 Prosper Population Growth Source: Census for available years. Population estimates through 2014 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 12,160 13,380 14,710 16,475 27,018 0 5,000 10,000 15,000 20,000 25,000 30,000 2000 2002 2004 2006 2008 2010 2011 2012 2013 2014 2015 2020 41 1st Quarter 2nd Quarter July 3rd Quarter 4th Quarter TOTAL SF Residential Permits 2009 28 47 18 99 75 249 SF Residential Permits 2010 79 82 21 63 62 286 SF Residential Permits 2011 85 102 24 97 89 373 SF Residential Permits 2012 93 145 41 118 105 461 SF Residential Permits 2013 89 134 64 155 108 486 SF Residential Permits 2014 120 93 66 279 249 286 373 461 486 279 0 100 200 300 400 500 600 1 2 3 4 5 6 7 8 9 10 11 12Number of Permits2009 2010 2011 2012 2013 2014 Summary of Single Family Residential Permits Issued by Quarter 2009 –Present Prosper is a place where everyone matters. Single-Family Residential Permits Issued Annually 42 323 1560 1583 572 115 559 1285 321 0 200 400 600 800 1000 1200 1400 1600 1800 2011 2012 2013 2014 (Jan - Present) Single Family Lots shown on Preliminary Plats Single Family Lots shown on Final Plats Summary of Single-Family Lots 43 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 44 Major FY 2014-2015 CIP Projects 45 Streets Traffic Parks Facilities West Prosper Road Improvements Median Lighting S.H. 289 Cockrell Park Land Acquisition Windsong Ranch Fire Station $12,531,000 $950,000 $1,050,000 $5,050,500 Gates of Prosper Road Phase l Median Landscaping S.H. 289 Motorola Radio/Frisco Road Improvements $550,000 $1,400,000 $2,000,000 Coleman Street Improvement Frontier Park SW Corner Lighting Town Hall/Multi-Purpose Facility $1,560,900 $425,000 $852,000 Downtown Enhancements Prosper Veteran's Memorial* $490,000 $750,000 * This item was requested by the Prosper Historical Society. Major FY 2014-2015 CIP Projects Water Wastewater Drainage PRV's at BNSF Railroad Gates of Prosper W/W Improve.Lakes of La Cima Outfall $582,200 $5,700,000 $250,000 Prosper Trail Elevated Storage Tank Matthews SW W/W Improve.Downtown Drainage--Hawk Ridge $517,300 $2,500,000 Channel Improvements $165,000 46 Key Dates in Budget Process September 9 September 23 October 1 2nd Public Hearing on Budget 2nd Public Hearing on Tax Rate Council adopts the FY 2015 Budget Council sets the 2014 Tax Rate Fiscal Year 2015 begins 47 Thank You! Questions?