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?