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20170905 Proposed Budget PPTBudget Theme: CIP –Recently Completed & Under Design 3 Recently Completed Under Design $150,006,724 CIP –Completion Next 5 Years 4 Completion Next 5 Years $397,636,995 Recently Completed Under Design $150,006,724 CIP –Completion Beyond 5 Years 5 Completion Next 5 Years $397,636,995 Completion Beyond 5 Years $210,008,135 Recently Completed Under Design $150,006,724 Historical & Projected Population Source:US Census Bureau and North Central Texas Council of Governments (NCTCOG) through 2015; future estimates from the Town of Prosper. 2,097 4,100 9,423 15,970 27,710 40,720 53,980 65,030 72,050 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 2000 2005 2010 2015 2020 2025 2030 2035 2040 6 1583 1135 2628 656 668 1285 1056 1314 980 238 0 500 1000 1500 2000 2500 3000 2013 2014 2015 2016 2017 (Present) Single Family Lots shown on Preliminary Plats Single Family Lots shown on Final Plats Updated 08/10/2017 Single Family Lots Approved by the Planning & Zoning Commission 1st Quarter 2nd Quarter July YTD 3rd Quarter 4th Quarter TOTAL SF Residential Permits 2017 165 175 56 396 396 SF Residential Permits 2016 164 178 61 403 167 160 669 SF Residential Permits 2015 143 200 54 397 170 142 655 SF Residential Permits 2014 119 88 64 271 161 192 560 SF Residential Permits 2013 89 134 64 287 155 108 486 396 669 655 560 669 0 100 200 300 400 500 600 700 800 1 2 3 4 5 6 7 8 9 10 11 12Number of Permits2017 2016 2015 2014 2013 Summary of Single Family Residential Permits Issued by Quarter 2013 –Present Prosper is a place where everyone matters. Number of Single Family Residential Permits Issued Annually 2013 –Present 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 9 No Tax Rate Increase Increased Property Valuations New Growth to Tax Roll Increased Sales Tax Receipts Increased Service Levels to Town Increased Infrastructure Needs 10 Proposed FY 2017 -2018 Budget Includes Streets/Infrastructure Utility Infrastructure and Rate Increases Program and Staffing Levels Parks Operations and Public Works Facilities 11 Proposed FY 2017 -2018 Budget Focus Budget Components 12 Base Budget—example: electricity, existing personnel costs. Total: $34,523,336 Non-Discretionary Supplemental Request (“must do”) — examples: external increase in software maintenance fees, water/ww charges, changes from state law. Total: $1,515,875 Discretionary Supplemental Request (“must do” and “should do”) —examples: new positions or vehicles, park or public works projects. Total: $11,565,542 Cut Supplemental Request (“should do” and “nice to do”) Total: $2,782,881 All Funds Consolidated Fund Summaries 14 ANNUAL SUMMARY FUND ACCOUNT TYPE ACTUAL 2015-2016 AMENDED BUDGET 2016-2017 PROJECTED 2016-2017 PROPOSED BUDGET 2017-2018 GENERAL REVENUES 19,923,016 21,609,381 23,567,342 25,857,091 EXPENDITURES 17,462,549 23,419,598 22,538,000 28,461,361 NET REVENUES OVER (UNDER) EXPENDITURES 2,460,467 (1,810,217)1,029,342 (2,604,270) WATER & SEWER REVENUES 13,380,018 14,252,227 14,438,908 16,768,903 EXPENDITURES 12,835,629 14,820,474 14,674,877 18,015,949 NET REVENUES OVER (UNDER) EXPENDITURES 544,389 (568,247)(235,969)(1,247,046) DEBT SERVICE (I&S)REVENUES 3,761,817 4,199,988 4,493,030 5,023,025 EXPENDITURES 3,390,101 4,182,810 4,171,610 4,718,308 NET REVENUES OVER (UNDER) EXPENDITURES 371,716 17,178 321,420 304,718 PARK IMPROVEMENTS / REVENUES 1,709,663 210,800 790,744 1,686,718 DEDICATION EXPENDITURES 1,363,219 1,538,850 1,538,850 1,730,000 NET REVENUES OVER (UNDER) EXPENDITURES 346,444 (1,328,050)(748,106)(43,282) Consolidated Fund Summaries Cont’d 15 ANNUAL SUMMARY FUND ACCOUNT TYPE ACTUAL 2015-2016 AMENDED BUDGET 2016-2017 PROJECTED 2016-2017 PROPOSED BUDGET 2017-2018 WATER IMPACT FEES REVENUES 3,204,537 3,229,700 3,306,205 3,624,000 EXPENDITURES 3,734,444 5,421,826 5,293,968 6,559,075 NET REVENUES OVER (UNDER) EXPENDITURES (529,907)(2,192,126)(1,987,763)(2,935,075) WASTEWATER IMPACT FEES REVENUES 612,305 607,800 551,000 610,000 EXPENDITURES 282,492 1,593,865 1,343,174 519,555 NET REVENUES OVER (UNDER) EXPENDITURES 329,813 (986,065)(792,174)90,445 E THORO IMPACT FEES REVENUES 240,126 4,032,560 376,696 2,820,000 EXPENDITURES 151,089 7,458,884 1,987,261 6,910,000 NET REVENUES OVER (UNDER) EXPENDITURES 89,037 (3,426,324)(1,610,565)(4,090,000) W THORO IMPACT FEES REVENUES 1,111,295 1,212,870 3,364,869 1,857,500 EXPENDITURES 2,386,773 928,399 3,190,525 1,650,000 NET REVENUES OVER (UNDER) EXPENDITURES (1,275,478)284,472 174,344 207,500 Consolidated Fund Summaries Cont’d 16 ANNUAL SUMMARY FUND ACCOUNT TYPE ACTUAL 2015-2016 AMENDED BUDGET 2016-2017 PROJECTED 2016-2017 PROPOSED BUDGET 2017-2018 INTERNAL SERVICE REVENUES 25,439 23,100 7,450 - EXPENDITURES 26,841 40,000 24,313 - NET REVENUES OVER (UNDER) EXPENDITURES (1,402)(16,900)(16,863)- TIRZ # 1 & # 2 REVENUES --1,381,881 1,458,146 EXPENDITURES --1,329,635 1,452,892 NET REVENUES OVER (UNDER) EXPENDITURES --52,246 5,254 SPECIAL REVENUE REVENUES 4,255,733 66,300 966,361 57,860 EXPENDITURES 4,667,925 76,828 1,401,201 45,099 NET REVENUES OVER (UNDER) EXPENDITURES (412,192)(10,528)(434,840)12,761 STORM DRAINAGE REVENUES 330,144 345,625 355,638 538,351 EXPENDITURES 264,627 400,318 441,250 594,322 NET REVENUES OVER (UNDER) EXPENDITURES 65,517 (54,693)(85,612)(55,971) VERF REVENUES 590,987 518,781 530,371 1,104,091 EXPENDITURES 969,590 329,728 330,208 478,933 NET REVENUES OVER (UNDER) EXPENDITURES (378,603)189,053 200,163 625,158 General Fund General Fund Revenues by Source 18 Revenue Category FY 2018 Proposed % of Total Property Tax $12,203,683 47.2% Sales Tax 6,165,834 23.8% Franchise Fees 1,105,089 4.3% License, Fees & Permits 3,855,798 14.9% Charges for Services 405,983 1.6% Fines & Warrants 419,580 1.6% Grants -0.0% Investment Income 147,930 0.6% Transfers In 896,634 3.5% Miscellaneous 521,760 2.0% Park Fees 134,800 0.5% Revenue Total $25,857,091 100.0% General Fund Department Appropriations 19 Department FY 2018 Proposed % of Total Administration $5,651,869 19.9% Police Services 4,758,772 16.7% Fire Services 6,278,631 22.1% Public Works 4,135,913 14.5% Community Svcs 3,959,067 13.9% Development Svcs 2,666,840 9.4% Engineering 1,010,269 3.4% Expense Total $28,461,361 100.0% Proposed Positions 20*This position will start in October 2017. Department Proposed Staffing Positions FTE Town Secretary Office Reclass Administrative Assistant *0.5 Town Secretary Office Reclass Social Media Specialist *0.5 Finance Receptionist 1 Court Court Clerk 1 HR Administrative Assistant *1 Police Records Clerk 1 Fire Firefighter/Paramedics 6 Building Inspection Senior Plans Examiner 1 Code Compliance Health/Code Supervisor 1 Planning Planning Manager 1 Streets Maintenance Worker 2 Park Operations Landscape Maintenance Crew Leader 1 Park Operations Maintenance Worker 1 Library Library Personnel 4 Engineering Senior Engineer 1 Utility Billing Billing Clerk 1 Water Water Quality Technician 1 Water Facilities Maintenance Supervisor 1 Water Utility Worker 1 Wastewater Crew Leader 1 Wastewater Utility Worker 1 Total FTE 29 Major Program Enhancements 21 The major Program Enhancement and Capital Expenditures included in the proposed appropriations and planned for FY 2017-2018 by Department Department Enhancements Amount Administration:First Street ROW Acquisition $1,464,000 Public Works/Streets:Prosper Trail –Coit to Custer $1,378,813 Road improvements –DNT $ 659,184 Frontier Parkway Road Improvements $ 150,000 Maintenance Worker (2)$ 155,112 Windsong Ranch –Uretek repairs $ 920,000 Windsong Ranch –Phase 2 $ 710,000 Police:Police Records Clerk $ 45,135 Special Response Team Equipment $ 105,084 Additional Overtime-Dispatch $ 86,945 Fire:Six Firefighter/Paramedics for Station No. 2 $ 468,756 Fire Station No. 2 Ambulance Equipment $ 123,825 Additional Overtime $ 172,240 Community Services:Preston Rd Monument/Median $ 330,000 US 380 Median Design $ 60,000 Four Staff for Library $ 182,336 Major Program Enhancements Cont’d 22 The major Program Enhancement and Capital Expenditures included in the proposed appropriations and planned for FY 2017-2018 by Department Department Enhancements Amount Water: Land Purchase ($1.1M in Park Ded Fund)$2,000,000 Water Purchase $452,227 Dump Truck $ 133,400 System Repairs $ 50,000 Meter Purchases $ 381,480 Facilities Maintenance Supervisor $ 104,974 Sewer:Sewer Management Fees $ 277,382 Sewer VAC Truck $ 372,900 Crew Leader $ 102,814 Utility Billing:Billing Clerk $ 32,242 Property Taxes 2017 Valuations Overview Certified Total Taxable (after freeze loss) Increased 22.30% ○Collin County Value $2,719,182,499 ○Denton County Value $ 394,824,724 ○Total Value $3,114,007,223 Existing Taxable Values Increased 8.45% ○+ 06.11% in Collin County ○+ 33.85% in Denton County New Construction Totaled $ 352,783,446 ○Collin County $244,771,201 ○Denton County $108,012,245 24 2017 Valuations Overview Cont’d 2016-2017 2017-2018 Difference Tax Dollars Assessed Value $3,236,092,432 $3,978,881,859 $ 742,789,427 $ 20,690,186 Freeze Taxable $ 196,365,692 $ 234,171,487 $ 37,805,795 $ 1,217,692 Homestead Exemptions $ 139,092,623 $ 227,972,194 *$ 88,879,571 $1,185,455 Other Exemptions $ 354,490,396 $ 402,730,955 $ 48,240,559 $ 2,094,201 Net Taxable $2,546,143,721 $3,114,007,223 $ 567,863,502 $ 16,192,838 25 * FY 2017-2018 Homestead Exemption increased from 7.5% to 10% Average Single-Family Home Value 26 Source: Collin CAD and Denton CAD Certified Totals 2008-2017 $342,977 $344,458 $333,084 $324,387 $321,662 $351,317 $378,651 $423,062 $460,766 $495,762 $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Ad Valorem Taxes 27 Source: Collin CAD and Denton CAD Certified Totals 2017 2017 Freeze Adjusted Taxable Value $3,114,007,223 Times Total Tax Rate per $100 $0.52 $16,192,838 Times Anticipated Collection Rate 100.0% Plus Actual Tax from Freeze $1,071,060 Total Tax Levy $17,263,898 One Penny on the Tax Rate Yields $311,401 Property Tax Rate History 28 Fiscal Year General Fund I & S Fund Total 2012-13 0.316914 0.203086 0.520000 2013-14 0.326191 0.193809 0.520000 2014-15 0.356301 0.163699 0.520000 2015-16 0.361074 0.158926 0.520000 2016-17 0.367500 0.152500 0.520000 2017-18 0.367500 0.152500 0.520000 As Proposed 0.0 0.1 0.2 0.3 0.4 0.5 0.6 General Fund I & S Fund Property Tax Rate Comparison I (2016 Tax Rates) 29 Source: Collin and Denton Central Appraisal Districts. 0.000 0.100 0.200 0.300 0.400 0.500 0.600 0.700 0.800 0.900 Cents per $100 Property Tax Rate Comparison II 30 Source: Collin and Denton Central Appraisal Districts. Prosper ISD $1.670000 Town of Prosper $0.520000 Collin County $0.208395 Collin College $0.081222 Average Home Owner 2017 Average Homestead Market Value = $ 495,762 Average Prosper Resident Total Tax Bill –Collin County 31 Note: Average Taxes are computed using 2016 tax rates for all agencies. Includes possible exemptions with each entity for simplicity. Taxing Jurisdiction Tax Rate per $100 Homestead Exemption Tax Levy Prosper ISD $1.670000 $25,000 $7,862 Town of Prosper $0.520000 $49,576 $2,320 Collin County $0.208395 $24,788 $981 Collin College $0.081222 -$403 Totals $2.479617 $99,364 $11,566 Property Tax Rate Scenarios 32 2017 Average Homestead Market Value = $495,762 Tax Rate Scenarios –Homeowner Impact Current & Proposed Rate $0.520000 -$2,320 Effective Rate $0.450157 -$2,008 Rollback Rate $0.508702-$2,270 Tax Rate Scenarios –Municipal Impact Current & Proposed Rate $0.520000 -$17,263,898 Effective Rate $0.450157 –($2,174,916) LOSS Rollback Rate $0.508702 –($ 351,821) LOSS Water/Sewer Fund Water/Sewer Fund Revenues by Source 34 Revenue Category FY 2018 Proposed % of Total Water Charges $10,250,224 61.1% Wastewater Charges 4,970,539 29.6% Solid Waste Charges 1,149,760 7.0% License, Fees & Permits 108,706 0.6% Penalties 101,075 0.6% Investment Income 71,421 0.4% Miscellaneous 117,178 0.7% Revenue Total $16,768,903 100.0% Water/Sewer Fund Department Appropriations 35 Administration includes Utility Billing and Solid Waste services. Public Works includes Water and Sewer services. Department FY 2018 Proposed % of Total Administration $3,993,280 22.2% Public Works 6,895,211 38.3% Debt Service 2,973,872 16.5% Water Purchases 4,153,586 23.1% Expense Total $18,015,949 100.0% Long-Term Issues and Key Dates Long-Term Issues Facility Planning Infrastructure Needs Rate/Fee Changes 37 Facilities Planning 38 Town Hall is still on schedule for opening in Spring 2018. Land purchase in budget for the Parks Operations/ Public Works Complex Public Safety Complex, Phase 1 Efficiencies and improved customer service will result from well-planned Town Hall and other facilities Infrastructure Needs 39 Frontier Parkway (DNT –Preston) Windsong Ranch –Phase 2 & 3 road reconstruction Downtown Street Reconstruction Eight New Traffic Signals Fishtrap Elevated Storage Tank Water Supply Line, Phase 1 Custer Road Additional Pump Rate/Fee Changes 40 Proposing Rate and Fee Changes for the following: Three-year Water/Sewer Charges to Residential and Commercial Customers Drainage Rate change Public Works Fees Health/Food Establishment Fees Water and Sewer Rates 41 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 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 reflects the proposed water and sewer rate increase. On an average residential water/sewer customer bill the increase reflects a $8.51 a month increase. On an average commercial water/sewer customer bill the increase reflects a $14.66 a month increase. Preliminary –Subject to Change Town of Prosper Current Water Rate Structure Page: 42 Residential Rates Commercial Rates Minimum Charge Minimum Charge - Meter Size 5/8-3/4"11.12$ 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 Sewer Rate Structure Page: 43 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 Monthly Residential Charge Comparison of NTMWD member cities Page: 44 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. AVERAGE bill $100.85 ** Rates as of March 2017 Customer cities have $0.05 volume rate savings are in Green; Member cities are in Blue $96.17 $105.99 $85.11 $72.40 $82.05 $85.95 $86.11 $86.45 $92.89 $96.70 $103.18 $106.47 $122.66 $141.24 $147.30 0 20 40 60 80 100 120 140 160 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: 45 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: 46 Consumption = Projected Annual Metered Use Plus Estimated Line Loss Preliminary –Subject to Change Forecasted Payments to NTMWD and NTMWD/UTRWD Page: 47 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 •Sewer rates from NTMWD forecast to increase 8% to 10% annually •Sewer 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: 48 Preliminary –Subject to Change No Rate Adjustments Financial Summary FY 2017 –FY 2026 Page: 49 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 July 2017 Alternative Water Rate Plan Page: 50 SCENARIO:2017 07 26 -- Plan A Effective Effective Current Oct-17 Oct-18 Oct-19 Water Rates -- Residential Monthly Charge 5/8" & 3/4"11.12$ 11.90$ 12.75$ 13.90$ 1"18.54 19.85 21.25 23.20 Volume Rate Per 1,000 Gal - 10,000 3.74 4.00 4.28 4.67 10,001 40,000 5.60 5.99 6.41 6.99 40,001 80,000 8.41 9.00 9.63 10.50 80,001 Above 12.61 13.49 14.44 15.74 Water Rates -- Commercial Monthly Charge 5/8"8.53$ 9.15$ 9.80$ 10.70$ 3/4"8.53 9.15 9.80 10.70 1"14.22 15.25 16.30 17.75 1 1/2"28.44 30.45 32.60 35.55 2"45.50 48.70 52.10 56.80 Volume Rate Per 1,000 Gal - 10,000 4.03 4.31 4.61 5.03 10,001 40,000 5.04 5.39 5.77 6.29 40,001 80,000 6.29 6.73 7.20 7.85 80,001 Above 7.87 8.42 9.01 9.82 Preliminary –Subject to Change July 2017 Sewer Rate Plan Page: 51 SCENARIO:2017 07 26 -- Plan A Effective Effective Effective Current Oct-17 Oct-18 Oct-19 Wastewater Rates -- Residential Monthly Base Charge 22.63 25.35 28.40 31.85 Volume Rate Per 1,000 Gal - Above 3.52 4.15 4.90 5.78 Residential Usage Based on Winter Average Wastewater Rates -- Commercial Monthly Base Charge 25.94 29.10 32.60 36.55 Volume Rate Per 1,000 Gal - Above 4.25 5.02 5.92 6.98 Preliminary –Subject to Change July 2017 Rate Plan Impact on Monthly Charges Page: 52 SCENARIO:2017 07 26 -- Plan A Effective Effective Effective Current Oct-17 Oct-18 Oct-19 Residential Monthly Water/WWBill -- 1" Meter 5,000 Gallons W; 5,000 WW 77.47$ 85.98$ 95.57$ 107.30$ Dollar Inc 8.51 9.59 11.74 10,000 Gallons W; 5,000 WW 96.17 105.99 116.98 130.64 Dollar Inc 9.82 10.99 13.66 15,000 Gallons W; 7,000 WW 131.21 144.25 158.84 177.15 Dollar Inc 13.04 14.58 18.31 Commercial Monthly Water/WWBill -- 1" Meter 10,000 Gallons W; 10,000 WW 122.96 137.62 154.22 174.42 Dollar Inc 14.66 16.60 20.20 20,000 Gallons W/ 20,000 WW 215.86 241.70 271.10 307.15 Dollar Inc 25.84 29.40 36.05 53 Water and Sewer Capital 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 Preliminary –Subject to Change Financial Summary FY 2017 –FY 2022 Page: 54 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 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” 55 Drainage Utility System Fees –Residential Tier 1 (<10,000 SF/month = $1.85) 56 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) 57 Avg ($8.37) Drainage Utility System Fees –Residential Tier 2 (≥10,000 SF/month = $4.00) 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 58 Drainage Utility System Fees –Commercial ($0.57/1,000 SF/month) $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 ParkMcKinneyPlanoSouthlakeAvg 59 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 60 Drainage Utility System (Stormwater 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” 61 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 Option 1: Fee Change to Support CIP –Drainage Projects 62 Drainage Utility System –Option 1 (Stormwater 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 $ 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” 63 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 Option 2: Fee Change to Support CIP –Drainage Projects 64 Drainage Utility System –Option 2 (Stormwater 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 $ 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 Drainage Utility System Fees –Residential Tier 1 (<10,000 SF/month) 65 Avg. $4.85 Option 1 $3.00 Option 2 $3.85 $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) -$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)66 Drainage Utility System Fees –Residential Tier 2 (≥10,000 SF/month) Avg $5.68 Option 1 $5.15 Option 2 $6.00 67 Drainage Utility System Fees –Commercial ($/1,000 SF/month) Avg. $1.08 / 1,000 SF Option 2 No Change Option 1 $1.00 / 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 ParkMcKinneyPlanoSouthlakeAvg Town of Prosper“a place where everyone matters” 68 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. Staff Recommends Fee Change Option 1 Capital Improvement Projects 70 CIP Projects STREETS Gates of Prosper, TIRZ No. 1 2,079,632 (Richland Boulevard, Lovers Lane, Detention Pond) Matthews Southwest, TIRZ No. 2 440,601 (Mahard Parkway) Frontier Parkway (BNSF Overpass) –($5.86M Town)22,555,000 DNT Southbound Frontage Road (Collin County)17,000,000 Coleman Street (at Prosper HS) –Potential Developer Agreement 700,000 Old Town Streets (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 Frontier Parkway road repairs 150,000 FM 2478 (US 380 -FM 1461) ROW ($218k: $80k-FY18; $69k-FY19&FY20)80,000 45,140,233 71 ADDITIONAL STREETS Downtown Enhancements (Broadway)1,650,000 West Prosper Road Improvements 6,781,000 Prosper Trail (Kroger -Coit)3,975,000 Windsong Road Repairs, Phase 1 Acacia Parkway (Gee Road -Windsong Parkway)1,022,782 Windsong Road Repairs (Uretek)920,000 Windsong Road Repairs, Phase 2 710,000 15,058,782 Total All Street Projects 60,199,015 CIP Projects Cont’d 72 CIP Projects Cont’d TRAFFIC Traffic Signal –Coit Rd & Prosper Trail 220,000 Traffic Signal –FM 1385 & Fishtrap: (TxDOT)125,000 Traffic Signal –FM 1461 & Coit Rd: (TxDOT)125,000 Traffic Signal –FM 1461 & FM 2478 (Custer Rd): (TxDOT)125,000 Traffic Signal –FM 2478 (Custer Rd) & Prosper Trail: (TxDOT)125,000 Traffic Signal –SH 289 & Coleman Rd: (TxDOT)220,000 Traffic Signal –SH 289 & Richland Blvd: (TIRZ #1)220,000 Traffic Signal –US 380 & Lover’s Lane: (TIRZ #1)220,000 1,380,000 73 CIP Projects Cont’d PARKS Lakewood Preserve –Developer 483,000 Hays Park –Design (Town)50,000 Star Trail Park #1 –Developer & Park Development Fund 985,000 Whitley Place H&B Trail Extension –Design (Town)70,000 Windsong H&B Trail Phases 3C, 5, 6A, 6B, 7, 8,and 9 – Developer 450,524 Windsong Ranch West Park Land –Study (Town)50,000 2,088,524 74 CIP Projects Cont’d FACILITIES Parks Operations and Public Works Complex –Land 4,000,000 Public Safety Complex –Design 1,000,000 Town Hall –Professional Services ($2.241M Overall)200,000 Town Hall –Construction ($19.990M Overall)392,000 5,592,000 75 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 (Middle Doe Branch Line) Matthews Southwest, TIRZ No. 2 166,492 (Lower Doe Branch Line) 205,136 76 CIP Projects Cont’d DRAINAGE Old Town Drainage –Fifth Street Trunk Main 400,000 400,000 Total All CIP Projects 92,742,154 77 CIP Projects Cont’d 78 CIP Projects Cont’d Taxable Assessed Valuation Assumptions FYE Annual Growth Projected Values 2017 $ 2,525,224,813 * 2018 $ 588,782,410 3,114,007,223 * 2019 373,660,867 3,487,668,090 2020 348,788,809 3,836,456,899 2021 306,916,552 4,143,373,451 2022 331,469,876 4,474,843,327 2023 178,993,733 4,653,837,060 2024 186,153,482 4,839,990,542 2025 193,599,622 5,033,590,164 2026 & after 1%5,184,597,869 *Certified Values CIP Analysis 79 CIP Analysis 80 CIP Analysis Cont’d 81 (1)FY 2017 and FY 2018 based on certified values per Denton CAD and Collin CAD websites.Assumes the following growth rates per Town staff:12%FY2019;10% in FY 2020;8%in FY 2021-2022;4%in FY 2023-2025,3%in FY 2026-2028;and 1%thereafter.Includes estimated effect of the 10%homestead exemption. (2)Debt service assumed to be repaid solely with I&S tax revenues.Repayment source may be changed from year to year. (3)Debt service assumed to be repaid solely with I&S tax revenues.With the exception of Series 2017,based on projected rates,preliminary,subject to change. (4)Estimated.Based on assumed total frozen revenues of $896,810 and projected pro rata I&S tax rate share of a combined tax rate of $0.52;preliminary,subject to change. (5)FY 2017 I&S tax rate is actual.FY 2018 assumed to remain the same.All others calculated based on 98.5%collections. Key Dates in Budget Process September 12 October 1 82 Council adopts the FY 2017-2018 Budget Council sets the 2017 Tax Rate Council approves Water/Sewer Rates; Drainage, Public Works, and Health Inspection Fees Council adopts the FY 2017-2018 CIP Fiscal Year 2017-2018 begins Thank You! Questions?