20170712 Budget Work Session pptTown of Prosper
Town Council
Budget Work Session
July 12, 2017
“a place where everyone matters”
Town of Prosper
Call to Order/Roll Call
2
“a place where everyone matters”
Town of Prosper
Review Major Initiatives from 2017
Strategic Planning Session (HJ)
3
“a place where everyone matters”
Town of Prosper
Review of FY 2017-2018 Budget
Process and Calendar (KN)
4
“a place where everyone matters”
July 25, 2017 Appraisal District Certifies Tax Roll
August 8, 2017 Town Manager presents Proposed Budget to Town Council
August 11, 2017 Finance Committee Reviews Proposed Budget
August 22, 2017 Town Council Meeting –First Public Hearing
September 6, 2017 Town Council Meeting –Second Public Hearing (special
meeting)
September 12, 2017 Adopt Budget, Tax Rate, and Utility Rates
October 1, 2017 New Fiscal Year Begins
Town of Prosper
Discussion Items
5
“a place where everyone matters”
Town of Prosper
1. Major Revenue Sources
(KN/HW)
6
“a place where everyone matters”
Property Tax $16,224,512 35%
Sales Tax $6,054,689 13%
Water/Sewer Charges for
Service $14,991,499 33%
Impact Fees $8,819,000 19%
Town of Prosper
a. Property Values
7
“a place where everyone matters”
Assessed Value
Year Value Change
2012 Certified Value $1,253,320,576
2013 Certified Value $1,447,466,215 $194,145,639 (13%)
2014 Certified Value $1,753,254,918 $305,788,703 (17%)
2015 Certified Value $2,138,926,840 $376,056,200 (18%)
2016 Certified Value $2,546,143,721 $407,216,881 (19%)
2017 Projected Value $2,963,422,281 $417,278,560 (16%)
Town of Prosper
8
“a place where everyone matters”
Homestead Exemption
Texas Tax Code Section 11.13 (n)
Adopted June 27, 2017
Minimum Exemption $5,000
Adopted Exemption 10%
Town of Prosper
9
“a place where everyone matters”Homestead Exemption Analysis
Based on 2017 Projected Assessed Values
Assessed Calculated Minimum Revenue Revenue Loss
Value Homestead %Homestead Homestead Decrease Variance
$2,582,262,006 7.5%$193,669,650 $193,706,222 $1,007,272
$2,582,262,006 10.0%$258,226,201 $258,241,067 $1,342,854 $335,581
One Cent on the Tax Rate 295,489$
Town of Prosper
b. Sales Tax for Property Tax
Relief
•Finance Committee requested staff to research
options on the current ½ cent sales tax adjustment
to the rollback tax rate.
•Impact on Effective and Rollback Tax Rates
•A taxing unit that adopted the additional sales tax in November of the previous year or in
May of the current year must adjust both its effective and rollback tax rates. A taxing unit
that adopted the tax in prior years, however, adjusts only its rollback tax rate
•Prosper is the only municipality in Collin County
that provides this sales tax adjustment.
If voters abolish the additional sales tax to reduce property taxes, the taxing unit adjusts its
effective tax rate upward by adding a sales tax loss rate. To calculate this rate, the taxing unit
divides sales tax revenues for the last four quarters by the current year's property value. It then
adds the result in calculating the effective tax rate.
To calculate the rollback tax rate, the taxing unit includes the sales tax in the M&O rate but does
not include the sales tax loss rate.
10
“a place where everyone matters”
Town of Prosper
b. Sales Tax for Property Tax
Relief
Finance Committee asked staff to review other options of sales tax
options.
CRIME CONTROL AND PREVENTION DISTRICT* (Increments of 0.125
percent up to 0.5 percent maximum rate) —This sales tax may be imposed
by a city located in a county with a population of more than 5,000 or by a
county with a population of more than 130,000. The governing body in a
municipality or commissioners court may specify the number of years (5,
10, 15 or 20) the district would be continued. Revenues from the sales tax
may be used to finance a wide variety of crime control and prevention
programs. (Loc. Govt. Code, Chap. 363, and Tax Code, Sec. 323.105.)
11
“a place where everyone matters”
Town of Prosper
b. Sales Tax for Property Tax
Relief
12
“a place where everyone matters”
• 68 Special Purpose Districts that impose sales and use
tax for crime or fire prevention statewide.
• 15 Special Purpose Districts in the Collin and Denton
County.
County SPD Local Rate Effective Date
Collin Lucas Fire Control District 0.005 10/1/2014
Denton Argyle Crime Control 0.0025 1/1/2004
Denton Bartonville Crime Control 0.0025 10/1/2010
Denton Coppell Crime Control 0.0025 4/1/2008
Denton Copper Canyon Crime Control 0.010 4/1/2016
Denton Corinth Crime Control 0.0025 1/1/2005
Denton Flower Mound Crime Control 0.0025 4/1/2008
Denton Flower Mound Fire Control 0.0025 4/1/2008
Denton Fort Worth Crime Control 0.005 10/1/1995
Denton Grapevine Crime Control 0.005 4/1/2007
Denton Krum Crime Control 0.0025 10/1/2016
Denton Lewisville Crime Control 0.00125 4/1/2012
Denton Lewisville Fire Control 0.00125 4/1/2012
Denton Southlake Crime Control 0.005 4/1/1998
Denton Trophy Club Crime Control 0.0025 10/1/2013
Town of Prosper
b. Sales Tax for Property Tax
Relief
13
“a place where everyone matters”
•Council could appoint a committee to review sales tax
options similar to the Charter Review Commission.
•Committee presents recommendation to Council by mid-
November.
•Based on recommendation, Council would need to call an
election by January 23, 2018.
•May 5, 2018 Election.
•This would affect the property tax effective and rollback rate.
Town of Prosper
c. Water and Sewer Rates
14
“a place where everyone matters”
•Staff presented at the Strategic Planning session this last winter
analysis of a rate increase for water and sewer rates to be effective
October 1, 2017. FEES LAST UPDATED IN 2012.
•We have requested from the consultants the water and sewer rate
model be updated based on current data with the last 7 months of
consumption and revised CIP schedule.
•Proposed budget will reflect the proposed water and sewer rate
increase.
•On an average residential water/sewer customer bill the increase
reflects a $9.68 a month increase.
•On an average commercial water/sewer customer bill the increase
reflects a $13.11 a month increase.
Preliminary –Subject to Change
•Background on Rates
•Current and Forecast Accounts / Volumes
•Forecast Provider (NTMWD and UTRWD) Increases, Operating Costs,
Capital Needs. NTMWD rates from $2.58 to $2.83 per 1,000.
UTRWD increase from a forecasted increase of 3.5% to a 4%.
•Proposed Rate Alternatives
•Next Steps
Page: 15
Preliminary –Subject to Change
Town of Prosper
Current Water Rate Structure
Page: 16
Residential Rates Commercial Rates
Minimum Charge Minimum Charge - Meter Size
5/8-3/4"11.12$ 5/8-3/4"8.53$
1" Meter 18.54 1" Meter 14.22
Volume Rate (per 1,000 Gallons)1 1/2" Meter 28.44
0*-10,000 3.74 2" Meter 45.50
10,001 -40,000 5.60 3" Meter 85.31
40,001 -80,000 8.41
80,001 -Above 12.61 Volume Rate (per 1,000 Gallons)
0 -10,000 4.03
10,001 -40,000 5.04
40,001 -80,000 6.29
80,001 -Above 7.87
Residential Water Monthly Rates Commercial Water Monthly Rates
Notes
*The first 2,000 gallons of water are
included in the Base charge for Senior Citizens
Accounts considered to be Outside Town Limits
are charged the same rates as In Town Accounts
New Accounts have 1" Meters or greater
Preliminary –Subject to Change
Town of Prosper
Current Wastewater Rate Structure
Page: 17
Residential Rates Commercial Rates
Minimum Charge 22.63$ Minimum Charge - All Meters 25.94$
Volume Rate (per 1,000 Gallons)3.52 Volume Rate (per 1,000 Gallons)4.25
Note 1:
Residential Volumetric Charges are based on Note 2:
the average of water usage in the winter The Town does not assess different rates for
months of December, January & February accounts of any rate class outside of Town limits
Residential Wastewater Monthly Rates Commercial Wastewater Monthly Rates
Preliminary –Subject to Change
$88.75 $96.17
$122.66
$-
$20.00
$40.00
$60.00
$80.00
$100.00
$120.00
$140.00
Prosper 3/4"Prosper 1"Coppell (allres)Colleyville(all res)Fairview (allres)UniversityPark 1"McKinney (allres)Rockwall 1"Keller (allres)Southlake(all res)Murphy 1"Little Elm 1"Monthly Residential Charge Comparison
for Prosper’s Usual Comparison Cities
Page: 18
Comparisons are for typical Residential Usage of 10,000 Gallons water and 5,000 gallons wastewater service. This
comparison Includes 1” meter charges for those comparison providers that have a 1” Residential charge; some have
only one base charge for all Residential accounts and are labeled “all res”.
Preliminary –Subject to Change
4,878
8,151
11,283
-
2,000
4,000
6,000
8,000
10,000
12,000
FY 2013 FY 2014 FY 2015 FY 2016 TY 2017 FY 2018 FY 2019 FY 2020 FY 2021
Historical and Forecast
Total Water Accounts Through FY 2021
Page: 19
Average Annual Growth Rate FY 2016 thru FY 2021= 10.0%
Preliminary –Subject to Change
1,325,241,831
2,359,737,755
-
500,000,000
1,000,000,000
1,500,000,000
2,000,000,000
2,500,000,000
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026GallonsMinimum Allowance 1,317,827,000
Forecast Water Consumption
Page: 20
Consumption = Projected Annual Metered
Use Plus Estimated Line Loss
Preliminary –Subject to Change
Key Assumptions Driving
Financial Forecast and Rate Plan
•Most personnel and operating expenses forecast to increase 3% per year
•Biggest impacts on rate plan: NTMWD/UTRWD cost increases and CIP related debt service
•Water –annual rate increases per NTMWD forecast
•Wastewater rates from NTMWD forecast to increase 8% to 10% annually
•Wastewater rates from UTRWD forecast to increase 3.5% annually. This will need to be updated in the revised rate model now that we know the increase is 4%.
Page: 21
Preliminary –Subject to Change
No Rate Adjustments
Financial Summary FY 2017 –FY 2026
Page: 22
If the Town could support forecast account growth without issuing any new debt,and did not
increase rates,the current deficit would grow to $10M/yr by FY 2026 due to inflation and pro-
vider increases despite projected account growth and depletion of fund balance by FY 2020.
$12,909,800
$13,580,509
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
Revenues Cost of Service
FY FY FY FY FY FY FY FY FY FY
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
(670,709)$ (1,626,487)$ (2,190,961)$ (3,338,724)$ (4,098,647)$ (5,387,326)$ (6,457,513)$ (7,576,281)$ (8,513,584)$ (10,181,102)$
Preliminary –Subject to Change
Impact on Monthly Charges
Page: 23
SCENARIO:2017 01 13 -- "Full CIP Funding w/WW Def '21"
Effective Effective Effective Effective Effective
Current Oct-17 Oct-18 Oct-19 Oct-20 Oct-21
Residential Monthly Water/WWBill -- 1" Meter
5,000 Gallons W; 5,000 WW 77.47$ 87.15$ 98.19$ 110.78$ 122.86$ 135.48$
Dollar Inc 9.68 11.04 12.59 12.09 12.61
10,000 Gallons W; 5,000 WW 113.77 126.36 140.53 156.51 171.78 187.56
Dollar Inc 12.59 14.17 15.97 15.27 15.78
15,000 Gallons W; 7,000 WW 148.81 164.20 181.40 200.65 218.75 237.16
Dollar Inc 15.39 17.20 19.24 18.10 18.41
Commercial Monthly Water/WWBill -- 1" Meter
10,000 Gallons W; 10,000 WW 122.96 136.07 150.73 167.20 183.28 200.05
Dollar Inc 13.11 14.65 16.48 16.08 16.77
20,000 Gallons W/ 20,000 WW 215.86 236.41 259.09 284.23 308.40 333.16
Dollar Inc 20.55 22.68 25.14 24.17 24.76
Preliminary –Subject to Change
Financial Summary FY 2017 –FY 2022
Page: 24
NOTE: This Scenario provides includes funding for Capital Improvements
$12,909,800
$13,580,509
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
2017 2018 2019 2020 2021 2022
Revenues Cost of Service
FY FY FY FY FY FY
2017 2018 2019 2020 2021 2022
Net Revenues (670,709)$ (382,487)$ (404,819)$ 91,171$ 202,581$ 83,791$
Fund Balance 9,195,783$ 8,813,296$ 8,408,477$ 8,499,649$ 8,702,230$ 8,786,020$
Days Op Exp 247 203 162 141 125 110
Debt Coverage 1.25 1.60 1.44 1.53 1.42 1.34
25
WATER AND SEWER CIP PROJECTS
Prior Years 2016-2017 2017-2018 2018-2019 2019-2020
2020-
2021
2021-
2022 2022-2027
WATER PROJECTS
BNSF Railroad PRV's 582,200
Fishtrap Elevated Storage Tank (South)325,700 5,415,000
Fishtrap Elevated Storage Tank Site Acquisition 240,000
Water Supply Line Phase 1 829,850 9,694,479
Water Supply Line Phase 1 Easement Costs 4,141,500
Custer Road Station Additional Pump 134,100 889,350
Lower Pressure Plane Pump Station and Transmission Line 185,100 1,250,000 14,250,000
Lower Pressure Plane Future Expansion (2025)14,000,000
LPP Phase 2 Pipeline Easement Costs 1,487,150
42" Lovers Lane Trasmission Line 42,060 883,530
SEWER PROJECTS
Doe Branch Parallel Interceptor (2018)5,177,341
Doe Branch WWTP 1.5MGD Expansion (2018)20,259,159
Doe Branch WWTP 1.5MGD Expansion (2024)24,190,495
Church / Parvin Wastewater Reconstruction 100,000
La Cima #2 Interceptor (Coit -First)220,000
Public Works Interceptor 1,045,000
Public Works WWTP Decommission 900,000
GRAND TOTAL 809,360 3,778,180 22,877,479 26,336,500 14,250,000 --38,190,495
26
WATER & SEWER FUND Proposed Budget with rate increase
NET ASSETS AND RESERVE POSITIONING
FUND ACCOUNT TYPE ACTUAL
2015-2016
AMENDED BUDGET
2016-2017
PROJECTED
2016-2017
PROPOSED BUDGET
2017-2018
PLANNING YEAR
2018-2019
PLANNING YEAR
2019-2020
PLANNING YEAR
2020-2021
PLANNING YEAR
2021-2022
REFLECTS RATE INCREASE
REVENUES Water Charges for Services 8,212,138$ 8,726,619$ $8,976,566 10,136,409$ 11,289,398$ 13,605,522$ 15,812,549$ 18,010,927$
Wastewater Charges for Services 3,573,726 3,776,542 3,781,542 4,855,090 5,537,170 6,777,694 8,201,211 9,844,994
Sanitation Charges for Services 1,185,543 1,376,796 1,183,621 1,136,320 1,249,952 1,374,947 1,484,943 1,603,738
License, Fees & Permits 89,374 73,900 97,726 105,384 112,874 120,966 128,630 136,763
Water Penalties 1,450 1,575 1,250 1,850 2,050 2,250 2,450 2,650
Utility Billing Penalties 97,664 94,500 99,716 99,225 102,202 105,268 108,426 111,679
Investment Income 34,437 29,500 75,684 81,360 89,496 98,446 113,213 130,195
Other 185,686 172,795 110,768 117,178 123,587 129,996 136,405 142,815
TOTAL REVENUES 13,380,018$ 14,252,227$ 14,326,873$ 16,532,816$ 18,506,729$ 22,215,089$ 25,987,827$ 29,983,761$
EXPENDITURES Administration 2,808,382 2,807,149 2,705,232 1,990,271 2,149,980 2,308,138 2,481,257 2,671,142
Debt Service 2,984,716 2,980,790 2,973,691 2,973,872 3,581,018 6,280,395 6,844,043 7,433,985
Water Purchases 3,122,725 3,701,359 3,701,013 4,178,390 5,092,538 6,164,072 7,331,094 8,503,703
Public Works 3,919,806 5,331,175 5,316,453 7,880,905 7,788,601 8,378,854 8,820,906 9,418,396
TOTAL EXPENDITURES 12,835,629$ 14,820,474$ 14,696,388$ 17,023,438$ 18,612,137$ 23,131,459$ 25,477,300$ 28,027,226$
Net Income (Loss)544,389$ (568,247)$ (369,515)$ (490,622)$ (105,408)$ (916,370)$ 510,527$ 1,956,535$
CHANGE IN NET ASSETS 544,389$ (568,247)$ (369,515)$ (490,622)$ (105,408)$ (916,370)$ 510,527$ 1,956,535$
INTANGIBLE ASSETS 15,578,922$ 15,578,922$ 15,578,922$ 15,578,922$ 15,578,922$ 15,578,922$ 15,578,922$ 15,578,922$
BEGINNING NET ASSETS 8,565,683$ 9,110,072$ 9,110,072$ 8,454,020$ 7,963,398$ 7,857,990$ 6,941,620$ 7,452,146$
Capital Replacement Maintenance Program-2%286,537$ 617,194$ 987,328$ 1,431,630$ 1,951,387$ 2,551,062$
ENDING NET ASSETS 9,110,072$ 8,541,825$ 8,454,020$ 7,346,204$ 6,870,662$ 5,509,989$ 5,500,760$ 6,857,620$
AMOUNT OVER (UNDER) IN DAYS OPERATING COST 256 207 207 155 133 86 78 88
Town of Prosper
d. Stormwater Rates
27
“a place where everyone matters”
Town of Prosper
•Current fees per month
•$1.85:Single Family Residential (<10,000 SF)
•$4.00:Single Family Residential (≥10,000 SF)
•$0.57 per 1,000 SF impervious area:
All other non-exempt property.
(Minimum Fee $2.75)
•Exempt Properties:
•Undeveloped
•State
•Public or private institutions of higher education
•Church
•Town property
•Fees Last Updated in 2010
“a place where everyone matters”
28
29
Avg.
$4.85
$0
$1
$2
$3
$4
$5
$6
$7
$8
$9
Prosper -$1.85AllenColleyvilleFairviewFlower Mound Frisco (< 5,000 SF)Highland Park (≤ 5,000 SF)McKinneyPlano (< 4,750 SF)SouthlakeAvgFrisco (5,000 –9,999 SF)Highland Park(5,001 –9,999 SF)Plano (4,750 –6,450 SF)Plano (> 6,450 SF)
30
Avg
($8.37)
Avg
$5.68
$0
$5
$10
$15
$20
$25
$30
$35
$40
Prosper -$4.00AllenColleyvilleFairviewFlower Mound (< 1 acre) Frisco (10,000 –20,000 SF)Highland Park (10,000 SF)McKinneySouthlakeAvgFrisco (> 20,000 SF)Highland Park (10,001 –21,800 SF)Plano (> 6,450 SF)Flower Mound (> 5 acres)Flower Mound (1 -5 acres) Avg(without Highland Park (> 21,800 SF)Highland Park (21,801 –43,600 SF)Highland Park(> 43,600 SF)
Avg
$1.08/1,000 SF
$0.000
$0.200
$0.400
$0.600
$0.800
$1.000
$1.200
$1.400
$1.600
$1.800
$2.000
Prosper (0.57/1,000 SF)Highland ParkMcKinneyPlanoSouthlakeAvg31
32
CIP –Drainage Projects
Prior Years 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 2022-2027
Amberwood Farms 32,000
Coleman Street Channel Improvements 300,000
Old Town Drainage –Church & Parvin Drainage Impr.500,000
Old Town Drainage -Detention Pond Improvements 1,000,000
Old Town Drainage -Fifth Street Trunk Main 400,000
Old Town Drainage -First & Main Trunk Main 800,000
Old Town Drainage –McKinley &Broadway Trunk Main 600,000
Old Town Regional Detention/Retention -Land Acquisition 365,000 385,000
Old Town Regional Retention -Broadway (Design & Constr.) 200,000 550,000
TOTAL 2,797,000 400,000 550,000 385,000 1,000,000
33
Stormwater Drainage Utility Fund
ACCOUNT TYPE ACTUAL
2015-2016
AMENDED BUDGET
2016-2017
PROJECTED
2016-2017
PROPOSED BUDGET
2017-2018
PLANNING YEAR
2018-2019
PLANNING YEAR
2019-2020
PLANNING YEAR
2020-2021
PLANNING YEAR
2021-2022
12%10%10%8%8%
Storm Drainage Fees $ 329,139 $ 344,725 $ 342,388 $ 383,475 $ 421,822 $ 464,004 $ 501,125 $ 541,215
Other 0 -
Investment Income 1,005 900 13,250 10,000 12,000 12,500 13,500 14,000
TOTAL REVENUES $ 330,145 $ 345,625 $ 355,638 $ 393,475 $ 433,822 $ 476,504 $ 514,625 $ 555,215
Operating Expenses $ 188,522 $ 181,602 $ 160,016 $ 171,349 $ 175,173 $ 181,181 $ 188,957 $ 194,452
Debt Service $ 167,711 $ 215,148 $ 296,340 $ 332,092 $ 374,783 $ 372,525 $ 411,742
Transfers Out 76,106 51,006 51,006 131,428 129,837 129,837 129,837 129,837
TOTAL EXPENDITURES $ 264,627 $ 400,318 $ 426,170 $ 599,117 $ 637,102 $ 685,801 $ 691,319 $ 736,031
Period Excess / (Deficit)$ 65,517 $ (54,693)$ (70,532)$ (205,642)$ (203,280)$ (209,297)$ (176,694)$ (180,816)
NET CHANGE IN FUND BALANCE $ 65,517 $ (54,693)$ (70,532)$ (205,642)$ (203,280)$ (209,297)$ (176,694)$ (180,816)
BEGINNING FUND BALANCE $ 102,068 $ 167,585 $ 167,585 $ 97,053 $ (108,589)$ (311,869)$ (521,166)$ (697,860)
ENDING FUND BALANCE $ 167,585 $ 112,892 $ 97,053 $ (108,589)$ (311,869)$ (521,166)$ (697,860)$ (878,677)
23%-18%-49%-76%-101%-119%
82 (65)(176)(274)(363)(430)
Town of Prosper
Option 1: Fee Change to Support
CIP –Drainage Projects
“a place where everyone matters”
34
Use Current Fee Proposed Fee
Residential Tier 1 $1.85 $3.00
Residential Tier 2 $4.00 $5.15
Commercial $0.57 per 1000 SF $1.00 per 1000 SF
Residential Tier 1: 5,000 accounts = $5,750/month increase
Residential Tier 2: 1,150 accounts = $1,323/month increase
Commercial: $5,000/month increase
TOTAL = $144,876 annual increase
35
Stormwater Drainage Utility Fund –Option 1
ACCOUNT TYPE ACTUAL
2015-2016
AMENDED BUDGET
2016-2017
PROJECTED
2016-2017
PROPOSED BUDGET
2017-2018
PLANNING YEAR
2018-2019
PLANNING YEAR
2019-2020
PLANNING YEAR
2020-2021
PLANNING YEAR
2021-2022
12%10%10%8%8%
Storm Drainage Fees $ 329,139 $ 344,725 $ 342,388 $ 528,351 $ 581,186 $ 639,304 $ 690,449 $ 745,684
Other 0 -
Investment Income 1,005 900 13,250 10,000 12,000 12,500 13,500 14,000
TOTAL REVENUES $ 330,145 $ 345,625 $ 355,638 $ 538,351 $ 593,186 $ 651,804 $ 703,949 $ 759,684
Operating Expenses $ 188,522 $ 181,602 $ 160,016 $ 171,349 $ 175,173 $ 181,181 $ 188,957 $ 194,452
Debt Service $ 167,711 $ 215,148 $ 291,545 $ 320,713 $ 366,996 $ 357,738 $ 402,063
Transfers Out 76,106 51,006 51,006 131,428 129,837 129,837 129,837 129,837
TOTAL EXPENDITURES $ 264,627 $ 400,318 $ 426,170 $ 594,322 $ 625,723 $ 678,014 $ 676,532 $ 726,352
Period Excess / (Deficit)$ 65,517 $ (54,693)$ (70,532)$ (55,971)$ (32,537)$ (26,210)$ 27,417 $ 33,332
NET CHANGE IN FUND BALANCE $ 65,517 $ (54,693)$ (70,532)$ (55,971)$ (32,537)$ 26,210)$ 27,417 $ 33,332
BEGINNING FUND BALANCE $ 102,068 $ 167,585 $ 167,585 $ 97,053 $ 41,082 $ 8,544 $ (17,665)$ 9,751
ENDING FUND BALANCE $ 167,585 $ 112,892 $ 97,053 $ 41,082 $ 8,544 $ (17,665)$ 9,751 $ 43,084
23%7%1%-3%1%6%
82 25 5 (9)5 21
Town of Prosper
Option 2: Fee Change to Support
CIP –Drainage Projects
“a place where everyone matters”
36
Use Current Fee Proposed Fee
Residential Tier 1 $1.85 $3.85
Residential Tier 2 $4.00 $6.00
Commercial $0.57 per 1000 SF $0.57 per 1000 SF
Residential Tier 1: 5,000 accounts = $10,000/month increase
Residential Tier 2: 1,150 accounts = $2,300/month increase
Commercial: $0/monthly increase
TOTAL = $147,600 annual increase
37
Stormwater Drainage Utility Fund –Option 2
ACCOUNT TYPE ACTUAL
2015-2016
AMENDED BUDGET
2016-2017
PROJECTED
2016-2017
PROPOSED BUDGET
2017-2018
PLANNING YEAR
2018-2019
PLANNING YEAR
2019-2020
PLANNING YEAR
2020-2021
PLANNING YEAR
2021-2022
12%10%10%8%8%
Storm Drainage Fees $ 329,139 $ 344,725 $ 342,388 $ 531,075 $ 584,182 $ 642,600 $ 694,008 $ 749,529
Other 0 -
Investment Income 1,005 900 13,250 10,000 12,000 12,500 13,500 14,000
TOTAL REVENUES $ 330,145 $ 345,625 $ 355,638 $ 541,075 $ 596,182 $ 655,100 $ 707,508 $ 763,529
Operating Expenses $ 188,522 $ 181,602 $ 160,016 $ 171,349 $ 175,173 $ 181,181 $ 188,957 $ 194,452
Debt Service $ 167,711 $ 215,148 $ 291,545 $ 320,713 $ 366,996 $ 357,738 $ 402,063
Transfers Out 76,106 51,006 51,006 131,428 129,837 129,837 129,837 129,837
TOTAL EXPENDITURES $ 264,627 $ 400,318 $ 426,170 $ 594,322 $ 625,723 $ 678,014 $ 676,532 $ 726,352
Period Excess / (Deficit)$ 65,517 $ (54,693)$ (70,532)$ (53,247)$ (29,541)$ (22,914)$ 30,976 $ 37,177
NET CHANGE IN FUND BALANCE $ 65,517 $ (54,693)$ (70,532)$ (53,247)$ (29,541)$ (22,914)$ 30,976 $ 37,177
BEGINNING FUND BALANCE $ 102,068 $ 167,585 $ 167,585 $ 97,053 $ 43,806 $ 14,265 $ (8,649)$ 22,327
ENDING FUND BALANCE $ 167,585 $ 112,892 $ 97,053 $ 43,806 $ 14,265 $ (8,649)$ 22,327 $ 59,504
23%7%2%-1%3%8%
82 27 8 (5)12 29
$0
$1
$2
$3
$4
$5
$6
$7
$8
$9
Prosper -$1.85AllenColleyvilleFairviewFlower Mound Frisco (< 5,000 SF)Highland Park (≤ 5,000 SF)McKinneyPlano (< 4,750 SF)SouthlakeAvgFrisco (5,000 –9,999 SF)Highland Park(5,001 –9,999 SF)Plano (4,750 –6,450 SF)Plano (> 6,450 SF)38
Avg.
$4.85
Option 1
$3.00
Option 2
$3.85
-$1
$1
$3
$5
$7
$9
$11
$13
$15
Prosper -$4.00AllenColleyvilleFairviewFlower Mound (< 1 acre) Frisco (10,000 –20,000 SF)Highland Park (10,000 SF)McKinneySouthlakeFrisco (> 20,000 SF)Highland Park(10,001 –21,800 SF)Plano (> 6,450 SF)Flower Mound (> 5 acres)Flower Mound (1 -5 acres) Avg(without Highland Park (> 21,800 SF)39
Avg
$5.68 Option 1
$5.15
Option 2
$6.00
$0.000
$0.200
$0.400
$0.600
$0.800
$1.000
$1.200
$1.400
$1.600
$1.800
$2.000
Prosper (0.57/1,000 SF)Highland ParkMcKinneyPlanoSouthlakeAvg40
Avg.
$1.08 / 1,000 SF
Option 2
No Change
Option 1
$1.00 / 1,000 SF
Town of Prosper
Staff Recommends Fee Change Option 1
“a place where everyone matters”
41
Use Current Fee Proposed Fee
Residential Tier 1 $1.85 $3.00
Residential Tier 2 $4.00 $5.15
Commercial $0.57 per 1000 SF $1.00 per 1000 SF
Proposed to become effective October 1, 2017.
Town of Prosper
2. Town Fees (KN)
42
“a place where everyone matters”
Town of Prosper
a. Franchise (KN)
The Water/Sewer and Drainage Funds contribute to the General fund for
services provided by internal supporting departments.
This provides a true reflection of cost of service provided to operate the
Enterprise Funds.
In order to capture the true costs, the Town exercised a cost allocation
plan to determine the level of service provided to reimburse the General
Fund.
43
“a place where everyone matters”
44
Example of the Finance Department allocation of services
45
Summary of Total Cost Allocation to the Utility Departments
Based on the results, the Town recommends assessing an annual total
transfer from the Water, Sewer, and Stormwater Funds to the Genreal
Fund of 9.67%. General municipal standards for fund transfers is
10% -15%.
46
Franchise Fees
•In order to maintain the level of funds to the
General Fund, a Franchise Fee of 2% of the total
FY 2016-2017 revenues of the Water and Sewer
Fund.
•This is a start to comparable surrounding North
Texas municipalities’ that use this as a factor to
help support the General Fund.
•This would equate to $225,539 transfer out of
the Administrative –Non Departmental
division.
47
48
FRANCHISE FEES
RECOMMENDED CHANGES:
•Reduce the current transfer out of the Utility funds from 11.77% to
9.67%.
•From $1,091,166 to $896,634 transfers out for services provided.
•Impose a Franchise Fee of 2% of the total FY2016-2017 Water and
Sewer Fund revenues.
•Franchise Fee total $225,539 as revenue to the General Fund.
•Total Franchise Fee and Transfers Out = $1,122,173 or 12.1% of the FY
2016-2017 total utility operating budgets.
Town of Prosper
b. Health/Food Establishment
Fees (JW)
49
“a place where everyone matters”
Town of Prosper
•Fees are charged for Inspections
of
•Restaurants (2/yr)
•Temporary Events with Food
•Grocery & Convenience Stores
•Day Care Centers
•Mobile Food Units
•Public/HOA/Apartment Pools
•Plan Review
•Fees Last Updated in 2005
50
“a place where everyone matters”
Town of Prosper
•Need to Adopt New Food
Establishment Ordinance
•Migrate Fees from Food
Establishment Ordinance to our
Standard Fee Schedule
•Increase Certain Fees to be
Consistent with Avg of Survey
Cities
51
“a place where everyone matters”
$0
$100
$200
$300
$400
$500
$600
ProsperBV AllenColleyvilleCoppellFairviewFlower MoundFriscoHighland ParkMcKinneyPlanoSouthlakeAvg52
Avg
$0
$100
$200
$300
$400
$500
$600
ProsperBV AllenColleyvilleCoppellFairviewFlower MoundFriscoHighland ParkMcKinneyPlanoSouthlakeAvg53
Avg
$0
$100
$200
$300
$400
$500
$600
ProsperBV AllenColleyvilleCoppellFlower MoundFriscoPlanoSouthlakeAvgFairviewMcKinney54
Avg
$0
$50
$100
$150
$200
$250
$300
$350
ProsperBV AllenColleyvilleCoppellFlower MoundFriscoSouthlakeAvgFairviewMcKinney55
Avg
Town of Prosper
Recommended Fee Changes
56
“a place where everyone matters”
Use Current Fee Proposed Fee
Convenience Store $200/yr $275/yr
Day Cares $200/yr $350/yr
Plan Review $75 $175
Town of Prosper
Recommend No Fee Changes for:
•Restaurants
•Temporary permits
•Grocery Stores
•Mobile Food Units
•Swimming Pools and Spas
57
“a place where everyone matters”
Town of Prosper
c. Public Works (SG)
58
“a place where everyone matters”
Town of Prosper
Public Works Fees
1.Public Works Fees were originated in 2011 and need to be updated.
2.Proposing to adjust existing fees based on updated costs.
3.Several new items to be incorporated to better reflect actual work performed.
Example: Current schedule does not provide any discount when multiple services are performed in one trip.
*To be presented to the Finance Committee for a recommendation to be
discussed at a future Town Council Meeting.
“a place where everyone matters”
Town of Prosper
3. CIP (HW/KN)
60
“a place where everyone matters”
61
CIP Projects
STREETS
Gates of Prosper, TIRZ No. 1 2,079,632
Matthews Southwest, TIRZ No. 2 440,601
Frontier Parkway (BNSF Overpass) –Carry Over 5,860,000
DNT Southbound Frontage Road –Collin County 9,500,000
Coleman Street (at Prosper HS) –Potential Developer Agreement 700,000
Old Town Streets 2015 (Fifth, McKinley) 1,000,000
Fifth Street (Coleman -Church)375,000
Third Street (Main -Coleman)250,000
Eighth Street (Church -PISD) 260,000
Field Street (First -Broadway)250,000
20,715,233
TRAFFIC
Traffic Signal –Coit Rd & Prosper Trail 220,000
62
CIP Projects Cont’d
PARKS
Lakewood Preserve –Developer 483,000
Hays Park –Design 50,000
Star Trail Park #1 –Developer & Park Development Fund 985,000
Whitley Place H&B Trail Extension –Design 70,000
Windsong H&B Trail Phases 3C,5,6A, 6B, 7, 8, and 9 –Developer 450,524
Windsong Ranch West Park Land –Study 50,000
2,088,524
FACILITIES
Public Safety Complex -Design 1,000,000
Town Hall -Professional Services ($2.241M Overall)200,000
Town Hall -Construction ($19.990M Overall)392,000
Windsong Ranch Fire Station –Apparatus 263,000
1,855,000
63
CIP Projects Cont’d
WATER
Fishtrap Elevated Storage Tank (South)5,415,000
Water Supply Line Phase 1 9,694,479
Water Supply Line Phase 1 Easement Costs 4,141,500
Custer Road Station Additional Pump 889,350
Lower Pressure Plane Pump Station and Transmission Line 1,250,000
LPP Phase 2 Pipeline Easement Costs 1,487,150
22,877,479
WASTEWATER
Gates of Prosper, TIRZ No. 1 38,644
Matthews Southwest, TIRZ No. 2 166,492
205,136
64
CIP Projects Cont’d
DRAINAGE
Old Town Drainage –Fifth Street Trunk Main 400,000
400,000
Total All CIP Projects 48,361,372
65
66
67
68
Town of Prosper
4. Green Ribbon Funding for US
380 (HW)
69
“a place where everyone matters”
US 380 Lovers Ln.La CimaBlvd.Prosper Comm.CoitRd.Lakewood Rd.US 380
US 380 Custer Rd.~8,000 L.F
~3,700 L.F ~1,600 L.F
~5,300 L.F
FRISCO
FRISCO FRISCOFRISCO
MCKINNEY
US 380 (Lovers Lane –Custer Road)
71
Median Example
150’ spacing
US 380 (Lovers Lane –Custer Road)
Design
•Last update to Council,TxDOT was going to design the project.Staff supplied Town median standard.
•Recent change in TxDOT management over project.Town notifiedthatitisnowrequiredtopayfor3rdpartydesignservicesforGreenRibbonprojects.
•Budget for $60,000 to design US 380 (Lovers to Custer)for FY2018.Town to take lead and will work with Frisco and McKinneyonrecoupingtheirportion($21,500 Frisco;$8,500 McKinney).
•Frisco and McKinney are in agreement with the Town medianstandardbutareawaitingthearrivalofDirectorsbeforemakinglongtermcommitments.
•No turf or turf irrigation on US 380 –direction last year.
Construction (Green Ribbon Funding)
•Letting by TxDOT in either July 2018 or September 2018.Dependsonwhenplansarecompleteandapprovedbyallmunicipalities.
72
US 380, Phase 1 (Lovers Lane –Custer Road)
Maintenance:
•TxDOT to maintain for 12 months after completion.
•Today’s estimated annual cost for mowing,fertilization,and
spraying =$13,700/mile/year.
•Full maintenance =$47,950/year.
•Town in discussions with Frisco and McKinney on Interlocal
Agreement for cost participation for current maintenance and
future maintenance.Estimated cost participation below:
•Frisco:2.5 miles =$17,125/year.
•McKinney:1.0 miles =$6,850/year.
•Prosper:3.5 miles =$23,975/year.
•First year of budgeting =FY 2020.
73
74
Preston Road Median
Median and
landscape
between
frontage and
bridge
Preston Road Monument / Median
Design Amendment for Preston Road Median
•Contract Amendment to Halff Associates to include landscaping and
irrigation design for first median of Preston Road at US 380 and
landscape areas adjacent to Preston Road.Less than $25,000 so TM to
approve.FY 2017 Parks Department funding.
•Will incorporate median standard,however may modify to create
unique entrance into Town as part of Gateway Monument Design.
•Halff providing design update at the July 25th Town Council meeting.
Construction (Green Ribbon Funding)
•Letting by TxDOT in either July 2018 or September 2018,or Town
depending on complexity of final design and coordination with
Gateway Monument.
Town Additional Funding FY-2018:
•$80,000:Turf Irrigation System
•$250,000:Gateway Monument components (TBD)75
Town of Prosper
76
“a place where everyone matters”
•Budgeting Grants
•Current Grants
•Process
•Updated Grant Policy 2017
•Implementation
5. Grant Opportunities (KB)
77
Town of Prosper
“a place where everyone matters”
Grant Process
1
Grant Policy
3
Manager Approval
2
Department
Research
4
EM Coordinator
5
Finance Dir
Approval
6
Town Manager
Approval
7
Application Begins
8
Grant Writing
Dept./EM
9
Accept Grant
Council Approval
Grant Management System
Town of Prosper
6. Transition to New Town Hall
78
“a place where everyone matters”
Town of Prosper
a.a. Ribbon Cutting Ceremony
b.Open House
c.State of the Town
79
“a place where everyone matters”
Town of Prosper
b. Town Hall Park
80
“a place where everyone matters”
81
82
83
Town of Prosper
c. Parks & Recreation Staff (HW)
84
“a place where everyone matters”
85
86
DIRECTOR
LANDSCAPE
ARCHITECT
PARKS
PLANNER
RECREATION
COORD.
SR. ADMIN
PLANNING
MANAGER
CODE
COMPLIANCE
OFFICER
PROPOSED
POSITIONS
FY 2018
FY 2019
FY 2021
FY 2022
HEALTH
INSPECTOR
FY 2020
CODE/HEALTH
SUPERVISOR
PLANNER
DIRECTOR
LANDSCAPE
ARCHITECT
PARKS
PLANNER
SR. ADMIN
RECREATION
COORD.
RECREATION
PROGRAMMER
SPECIAL EVENTS
COORD.
PARK
INSPECTOR
THERAPEUTIC
REC SPECIALIST
(PART TIME)
ATHLETIC
PROGRAMMER
MARKETING
ASSISTANT /
GRAPHIC
ARTIST
PROPOSED
POSITIONS
FY 2018
FY 2019
FY 2020
FY 2021
FY 2022
ADMIN
(PART TIME)
MARKETING
COORDINATOR
(PART TIME)
ACTIVE ADULT
PROGRAMMER
DIRECTOR
LANDSCAPE
ARCHITECT
PARKS
PLANNER
SR. ADMIN
PLANNING
MANAGER
CODE
COMPLIANCE
OFFICER
HEALTH
INSPECTOR
CODE/HEALTH
SUPERVISOR
PLANNER
RECREATION
COORD.
89
Storage
Programs Offices
90
RECREATION
PROGRAMMER
SPECIAL EVENTS
COORD.
PARK
INSPECTOR
THERAPEUTIC
REC SPECIALIST
(PART TIME)
ATHLETIC
PROGRAMMER
MARKETING
ASSISTANT /
GRAPHIC
ARTIST
ADMIN
(PART TIME)
MARKETING
COORDINATOR
(PART TIME)
ACTIVE ADULT
PROGRAMMER
DIRECTOR
LANDSCAPE
ARCHITECT
PARKS
PLANNER
SR. ADMIN
RECREATION
COORD.
FY 2018
FY 2019
FY 2021
FY 2022
FY 2020CURRENT
91
Programming Space
Existing
Kitchen
Area
Meeting/Training
(Youth & Seniors)
Town of Prosper
d. Town Hall Annex (KN)
92
“a place where everyone matters”
•Non-Discretionary Supplemental Package for the removal
of the Town Hall Annex building.
•The estimated costs:
Dismantling $6,320
Transportation $1,780
Total $8,100
Funding to be within the Finance Department –General
Fund
Current rent of facility is $1,568 a month. The removal
of the facility will be captured in approximately 5
months of rent.
Town of Prosper
e. Facility Maintenance Costs (KN)
•Centralized a Facility Management Department in
General Fund. Removed costs from other
departments that budgeted these expenses in the
past.
•Track all maintenance expenses associated with
Town Hall.
•I.E. Custodial Services, Pest Control, Building
Supplies, and utility services.
93
“a place where everyone matters”
94
Facilities Management Department –
General Fund
Budgeted Costs are for 30% of the FY 2017-2018 year:
Building Supplies $13,425
Contract Services $20,000 custodial services
Water/Sewer Charges $2,400
Gas –Building $200
Electricity $60,000
Total $96,025
Town of Prosper
Town of Prosper
f. 121 W. Broadway Renovation
(DK)
$15,000 has been earmarked in the
FY 17-18 Budget, for renovation of
the current Town Hall to an interim
Police Facility.
95
“a place where everyone matters”
Town of Prosper
7. Zucker Report –Phase 2 (HJ)
96
“a place where everyone matters”
Areas Receiving High Marks
Bureau Veritas
Response time
Courteous and respectful
Staff
Courteous and respectful
Responsive and helpful
Accessible
Provides feedback
Website
97
ZUCKER REPORT
Areas Receiving High Marks -Cont’d
Development and Community Services Dept.
Organizational structure
Handouts
Plan review process
Pre-application meetings
Zoning, Site Plan, Landscape Plan, and Plat application reviews
98
ZUCKER REPORT Cont’d
Areas Receiving Low Marks
Unnecessarily cumbersome or complex processes
Subsequent comments, not attributed to changes
Division who generated subsequent comments
99
ZUCKER REPORT Cont’d
DIVISION PERCENT WITH
SUBSEQUENT COMMENTS
Civil Engineers 2016
45%
2017
31%
Landscape Architects 33%14%
Planners 33%25%
Building Inspectors 21%38%
Building Inspection Plan Reviewers 14%38%
Permit Techs 10%14%
100
ZUCKER REPORT Cont’d
Recommendations
Staff concurs with many of the recommendations contained in the
report and are currently in the process of evaluating the feasibility
of a few of the recommendations.
Town of Prosper
Summary and Wrap Up
101
“a place where everyone matters”
Town of Prosper
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.
“a place where everyone matters”
Town of Prosper
Adjourn
103
“a place where everyone matters”