20180711 Budget Work Session pptTown of Prosper
Town Council
Budget Work Session
July 11, 2018
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Town of Prosper
Call to Order/Roll Call
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Town of Prosper
Review Major Initiatives from 2018
Strategic Planning Session (HJ)
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Town of Prosper
Review of FY 2018-2019 Budget
Process and Calendar (KN)
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July 25, 2018 Appraisal District Certifies Tax Roll
August 14, 2018 Town Manager presents Proposed Budget to Town Council
Certified Collection Rate/Certified Appraisal Roll and
Proposed Property Tax Rate to Town Council
August 17, 2018 Finance Committee Reviews Proposed Budget
August 28, 2018 Town Council Meeting –First Public Hearing
September 6, 2018 Town Council Meeting –Second Public Hearing (special
meeting)
September 11, 2018 Adopt Budget and Tax Rate
October 1, 2018 New Fiscal Year Begins
Town of Prosper
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FUND BALANCE AND RESERVE POSITIONING
FUND ACCOUNT TYPE
ACTUAL
2016-2017
AMENDED BUDGET
2017-2018
PROJECTED
2017-2018
PROPOSED BUDGET
2018-2019
PLANNING YEAR
2019-2020
PLANNING YEAR
2020-2021
PLANNING YEAR
2021-2022
PLANNING YEAR
2022-2023
REVENUES Property Tax 10,454,610 12,203,683 12,123,266 14,086,008 15,483,910 16,714,064 18,042,630 19,477,482
Sales Tax 5,271,470 6,165,834 6,175,773 4,335,996 4,550,774 4,686,085 4,825,454 4,969,004
Franchise Fees 967,056 1,105,089 1,420,089 1,425,651 1,427,319 1,429,021 1,430,757 1,432,972
License, Fees & Permits 4,780,297 3,896,201 5,245,710 5,399,159 4,000,395 4,001,668 4,002,979 4,004,330
Charges for Services 533,521 405,983 427,004 345,465 362,273 379,910 398,418 417,840
Fines & Warrants 371,686 419,580 427,224 427,224 427,224 427,224 427,224 427,224
Grants 141,362 - 21,980 - - - - -
Investment Income 98,200 147,930 208,034 $212,194 $216,438 $220,767 $225,182 $229,686
Transfers In 1,091,166 896,634 770,919 $881,541 $881,541 $881,541 $881,541 $881,541
Miscellaneous $463,443 $521,760 111,836 $57,350 $57,360 $57,370 $57,380 $57,390
Park Fees 156,374 134,800 179,370 259,900 259,900 259,900 259,900 259,900
TOTAL REVENUES 24,329,185$ 25,897,494$ 27,111,203$ 27,430,488$ 27,667,134$ 29,057,549$ 30,551,465$ 32,157,368$
EXPENDITURES Administration 3,255,107 5,656,869 4,990,498 6,125,008 6,273,905 6,462,122 6,655,986 6,855,665
Police Services 3,985,318 4,986,440 4,985,786 4,829,203 4,414,860 4,547,306 4,683,725 4,824,237
Fire Services 5,040,745 6,278,631 6,264,525 5,973,294 5,271,060 5,429,192 5,592,068 5,759,830
Public Works 4,179,023 4,545,478 4,493,302 3,317,530 2,551,675 2,628,225 2,707,072 2,788,284
Community Services 2,597,038 4,198,262 3,955,547 3,895,247 3,759,471 3,872,255 3,988,423 4,108,076
Development Services 2,105,965 2,710,744 2,703,108 3,032,708 3,091,348 3,184,089 3,279,611 3,378,000
Engineering 897,522 1,092,619 1,069,979 1,072,578 1,104,755 1,137,898 1,172,035 1,207,196
TOTAL EXPENDITURES 22,060,718$ 29,469,043$ 28,462,745$ 28,245,568$ 26,467,075$ 27,261,087$ 28,078,920$ 28,921,287$
Net Period Excess/(Deficit) 2,268,467$ (3,571,549)$ (1,351,542)$ (815,080)$ 1,200,060$ 1,796,463$ 2,472,546$ 3,236,081$
General Fund Summary
Town of Prosper
Discussion Items
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Town of Prosper
1. Major Revenue Sources (KN)
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Property Tax $20,648,160 38%
Sales Tax $6,800,657 13%
Water/Sewer Charges for
Service $16,901,503 31%
Impact Fees $9,869,500 18%
Town of Prosper
a. Property Values
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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 Certified Value $3,114,007,223 $567,862,502 (22%)
2018 Projected Value *$3,570,642,357 $456,635,134 (15%)
* Certified Tax Values will be received July 25th.
Town of Prosper
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Homestead Exemption
Texas Tax Code Section 11.13 (n)
Adopted June 27, 2017
Minimum Exemption $5,000
Adopted Exemption 10%
Town of Prosper
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b. Debt Service
AV Growth Assumptions
FY 2019 15%
FY 2020 10%
FY 2021 8%
FY 2022 8%
FY 2023+4%
Town of Prosper
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b. Debt Service
Projected Debt Issuance (in Millions)
FY 2019 $19.580
FY 2020 $11.160
FY 2021 $1.905
FY 2022 $1.400
Town of Prosper
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b. Debt Service
Projected I&S Tax Rate
FY 2019 *$0.152500
FY 2020 *$0.152500
FY 2021 *$0.152500
FY 2022 *$0.152500
FY 2023+ *$0.152500
* Use of Debt Service’s Fund Balance to
maintain current I&S Rate
Town of Prosper
c. Water and Sewer Rates
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•The Town adopted a multi-year water and sewer rates during last
year’s budget.
•We have requested from the consultants to review the water and
sewer rate model based on current data along with the revised CIP
schedule.
•Proposed budget will reflect the current adopted 2nd year of water
and sewer rate increase.
•On an average residential water/sewer customer bill with usage of
10K gallons of water, the increase reflects a $10.99 a month increase.
•On an average commercial water/sewer customer bill with usage of
20K gallons of water, the increase reflects a $29.40 a month increase.
Preliminary –Subject to Change
Key Components Assessed in Update
Page: 14
•Objective: Rate plan sufficiency through assessment of key criteria:
•Growth –Accounts and Consumption Patterns
•Wholesale Provider Charges
•Capital Projects and Funding
•Net Revenue Requirement
Preliminary –Subject to Change
Historical and Forecast
Total Water Accounts Through FY 2022
Page: 15
Historic Annual Account Growth 15.3%
Forecast Annual Account Growth 8.5%Approximately 800 new accounts annually
Preliminary –Subject to Change
Forecast Water Purchases; Expected To
Exceed Annual Take or Pay Annually
Page: 16
Preliminary –Subject to Change
Town of Prosper Forecast NTMWD
Water and NTMWD/UTRWD WW Payments
Page: 17
$4,765,947
$12,520,049
$1,729,195
$8,240,059
$895,593
$2,161,480
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
NTMWD Water Charges NTMWD WW Charges UTRWD WW Charges
WW Provider Charges paid to NTMWD and UTRWD subject to change
as flows are redirected to each based on existing and expanded
infrastructure capacity
Preliminary –Subject to Change
Changes in CIP
Page: 18
Total =
$97,387,480
Total =
$73,820,821
Difference =
($23,666,659)
Preliminary –Subject to Change
Changes in CIP (Detailed)
Page: 19
Unfunded CIP Projects
Year of
Implementation
Total Cost
FY 2017 Update
Total Cost
FY 2018 Update Difference
Water
1715-WA Fishtrap Elevated Storage Tank Site Acquisition FY 18 - FY 19 5,415,000$ 2,915,000$ (2,500,000)$
1716-WA Water Supply Line Phase 1 FY 18 - FY 19 9,694,480 8,649,626 (1,044,854)
1716-WA Water Supply Line Phase 1 Easement Costs FY 18 1,941,500 1,941,500 -
Lower Pressure Plane Future Expansion FY 18, FY 20 - 21 15,500,000 11,500,000 (4,000,000)
LPP Phase 2 Pipeline Easement Costs FY 23 14,000,000 14,000,000 - Changed to FY 25
Park Ops/Public Works Complex FY 18 - 1,999,200 1,999,200 FB Draw Down
Total Water Unfunded CIP 46,550,980 41,005,326 (5,545,654)
Wastewater
Doe Branch Parallel Interceptor FY 19 5,177,341 5,000,000 (177,341) Changed to FY 21
Doe Branch WWTP 1.5 MGD Expansion FY 19 20,259,159 - (20,259,159)
Doe Branch WWTP 0.25 MGD Expansion FY 19 - 3,625,000 3,625,000
03 Doe Branch WWTP 1.5 MGD Expansion FY 25 24,500,000 24,190,495 (309,505) Changed to FY 24
Church/Parvin Wastewater Reconstruction FY 17 100,000 - (100,000)
Public Works WWTP Decommission FY 19 900,000 - (900,000)
Total Wastewater Unfunded CIP 50,936,500 32,815,495 (18,121,005)
Total Water and Wastewater Unfunded CIP 97,487,480$ 73,820,821$ (23,666,659)$
Preliminary –Subject to Change
Current Rate Plan 1 Year Forecast
Impact on Monthly Charges
Page: 20
SCENARIO:2018 07 07 -- Adopted Plan with 7/18 updates
Effective
Current Oct-18
Residential Monthly Water/WWBill -- 1" Meter
5,000 Gallons W; 5,000 WW 85.98$ 95.57$
Dollar Inc 9.59
10,000 Gallons W; 5,000 WW 105.99 116.98
Dollar Inc 10.99
15,000 Gallons W; 7,000 WW 144.25 158.84
Dollar Inc 14.58
Commercial Monthly Water/WWBill -- 1" Meter
10,000 Gallons W; 10,000 WW 137.62 154.22
Dollar Inc 16.60
20,000 Gallons W/ 20,000 WW 241.70 271.10
Dollar Inc 29.40
Preliminary –Subject to Change
Summary of Findings and Adjustments
Page: 21
•Rate Plan developed and adopted in 2017 is performing as
expected and is both sufficient and warranted for FY 2019 to
recover increasing costs of service
•Deferment of 1.5 MGD Doe Creek WWTP capital project to FY
2024 will impact FY 2020 net revenue requirement, particularly
changes in WW flows to WW treatment providers and related
operational charges;
•In light of dynamic and robust growth of Town and
evolvement of CIP and operational changes affecting FY 2020
and beyond, we recommend review and re-evaluation of rate
plan and net revenue requirements in one year prior to
implementation of October 2019 rate adjustments
Town of Prosper
d. Building Permit Fees (JW)
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City Commercial Plan Review Fee Residential Plan Review Fee
Prosper -Current
A non-refundable deposit of $200 or 10% of the
total permit fee, whichever is less.No plan review fee
Prosper -Proposed No change A non-refundable deposit of $200 or 10% of
the total permit fee, whichever is less.
Allen
25% of building permit fee
Non-refundable
(In addition to building permit fee)
25% of building permit fee
Non-refundable
(In addition to building permit fee)
Colleyville 65% of building permit fee
Non-refundable
$350
Non-refundable
Coppell 65% of building permit fee
Non-refundable
65% of building permit fee
Non-refundable
Fairview 10% of building permit fee
Non-refundable
$300
Non-refundable
Flower Mound 50% of building permit fee
Non-refundable
$100
Non-refundable
McKinney $200
Non-refundable
$100
Non-refundable
Frisco Authority to collect 65% of fee upfront. Not
utilized
Authority to collect 65% of fee upfront. Not
utilized
Highland Park $250
Non-refundable
$250
Non-refundable
Plano 65% of the building permit fee
Non-refundable
$80
Non-refundable
Southlake No specific plan review fee No specific plan review fee
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Town of Prosper
2. Program Efficiencies
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Town of Prosper
a. IDS/IPS and SIEM Program (LJ)
An Intrusion Detection System (IDS)is a network
security technology designed to detect vulnerability
exploits against a target application or computer.
Intrusion Prevention Systems (IPS)is a network
security/threat prevention technology that examines
network traffic flows to detect and prevent vulnerability
exploits and has extended IDS solutions by adding the
ability to block threats in addition to detecting them and
has become the dominant deployment option for
IDS/IPS technologies.
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Town of Prosper
a. IDS/IPS and SIEM Program (LJ)
A SIEM platform provides the following:
•Event and Log collection
•Customizable Views:This is usually in the form of dashboards,referred to as a
bird’s-eye view.
•Normalization:A two-part function which includes translating computerized
jargon to readable data to be displayed,and mapping data to classifications.
•Correlation:Gives both historical and real-time data context and forms
relationships based on rules,architecture,and alerts.
•Adaptability:Ability to parse log data regardless of source vendor,format,type,
change or compliance requirement.
•Reporting and Alerting:Provides automated verification of continuous
monitoring,trends,and auditing.
•Log Management:Allowing the capability for storing event and log data in a
central location,while also allowing the application of compliance,storage,or
retention requirements.
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Town of Prosper
b. Enterprise Fleet Program (KN)
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Town of Prosper
b. Enterprise Fleet Program (KN)
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Town of Prosper
c. Health Insurance Plan (KN/CS)
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FY 2017-2018 FY 2018-2019
Benefit Plan Type Estimate Projection Difference
REVENUE
Employee Contribution 559,552$ 559,552$ -
Employer Contribution 1,565,520 1,565,520 -
Transfer from closed Fund - MERP 99,812 99,812.00
Interest Revenue 3,349 5,000 (1,651.00)
Total Revenue 2,228,233$ 2,130,072$ 98,161.00
EXPENDITURES
TRENDED CLAIMS-recent 12 months
Medical/Rx Claims 1,286,855$ 1,377,823$ (90,967.67)
BCBS Admin Fees 81,366 81,476 (109.50)
Stop Loss 425,544 486,390 (60,845.64)
HSA Contributions 124,073 124,073 -
Dental Insurance 150,785 150,785 -
Contract Services 70,658 70,658 -
TOTAL EXPENDITURES 2,139,281$ 2,291,204$ (151,922.81)
NET CHANGE IN FUND BALANCE 88,952$ (161,132)$
RECOMMENDED OPTIONS $ SAVINGS OTHERS OPTIONS $ SAVINGS
Vendor Eliminations:Plan Changes:
Compass 9,000 Working Spousal Surcharge of $200 - estimated 15%21,600
Health Check 360 15,000 Working Spousal Ineligibility - estimated 20% reduction 35,000
Increase ER contributions - 2.2%34,689 Consideration/Review of 3rd Party Administrator ??
Increase PPO EE contributions by 10%70,000 Consideration of higher limits on Stop Loss & Annual RFP ??
Estimate 10% migration savings from PPO to HDHP 6,000 Total Other Options 56,600$
PPO Plan Changes:
Change Urgent Care Copay from $55 to $75 987
Change Specialist Copay from $50 to $60 3,456
Increase ER Copay from $100 to $200 2,962
Limited/Restrictive Formulary (Performance Select)17,905
Total Recommended Options 160,000$
Town of Prosper
d. Continuous Process Improvement
Program (CS)
•Implement a formal program based on Lean/Six Sigma model.
•Training of Town staff by external consultant moving to self-sufficiency
within first year
•Benefits
•Improved customer service
•Elimination of waste
•Reduced costs of service
•Engaged Town staff
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Town of Prosper
3. CIP (HW)
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CIP Projects
STREET
West Prosper Roads 3,900,000
Gates of Prosper, TIRZ No. 1 2,532,536
Matthews Southwest, TIRZ No. 2 --
Prosper Trail (Coit –Custer)100,000
Coit Road (First –Frontier)125,000
E-W Collector (Cook Lane –DNT)1,250,000
First (DNT Intersection Improvements)1,250,000
Victory Way (Coleman –Frontier)2,250,000
FM 2478 (US 380 –FM 1461) –ROW Payment 2 of 3 69,000
Coleman Street (at Prosper HS) –Potential Developer Agreement 700,000
First Street (Parvin –Craig)400,000
Lane Street (First –Third)225,000
North Street (Seventh –Eighth)175,000
Pecan Street (First –End)200,000
13,176,536
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TRAFFIC
Median Lighting -US 380 (Denton County -Custer)485,000
Traffic Signal -Coit Rd & First Street 250,000
Traffic Signal -DNT & Frontier: (Collin County)400,000
Traffic Signal -DNT & Prosper Trail: (Collin County)400,000
1,535,000
CIP Projects Cont’d
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CIP Projects Cont’d
PARK
Star Trail Park #1 –Developer & Park Development Fund ($450k)985,000
Lakewood Preserve (22 Acres / No Lights) –Developer 483,000
Prairie Park (6.7 Acres / No Lights) –Developer 300,000
Tanners Mill Park –Developer 468,000
Whitley Place H&B Trail Extension –Construction 500,000
Windsong H&B Trail Phases 3C,5,6A, 6B, 7, 8, and 9 –Developer 450,524
Hike and Bike Master Plan 35,000
Pecan Grove H&B Trail 30,000
Star Trail H&B Trail Phases 1, 2, 3, and 4 –Developer 100,000
SH 289/US 380 Green Ribbon Landscape Irrigation –TxDOT 750,000
4,101,524
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CIP Projects Cont’d
FACILITY
Police Station and Dispatch –Professional Services 650,000
Police Station and Dispatch –Development Costs 850,000
Police Station and Dispatch –Construction 10,500,000
Police Station and Dispatch –Furniture, Fixtures, and Equipment 1,500,000
13,500,000
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CIP Projects Cont’d
WATER
Custer Road Meter Station and Water Line Relocations –Design 290,325
Fishtrap Elevated Storage Tank (South)5,415,000
Water Supply Line Phase 1 9,694,479
Water Supply Line Phase 1 Easement Costs 2,200,000
LPP Phase 2 Pipeline Easement Costs 1,487,150
E-W Collector (Cook Lane -DNT) Water Line 250,000
19,336,954
WASTEWATER
Public Works WWTP Decommission 900,000
Doe Branch WWTP 0.25 MGD Expansion (2018)3,625,000
Church / Parvin Wastewater Reconstruction 100,000
4,625,000
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CIP Projects Cont’d
DRAINAGE
Coleman Street Channel Improvements 290,979
Old Town Drainage –Church & Parvin Drainage Improvements 460,000
Old Town Regional Retention –Broadway 550,000
Old Town Drainage –Fifth Street Trunk Main 400,000
1,700,979
Total All CIP Projects 57,975,993
Town of Prosper
4. Park Field Utilization (DR)
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Town of Prosper
•The leagues are aware of Council’s desire to
reduce the amount of out of Town users on
sports fields.
•Out of Town
•Baseball 10% Projected
•Baseball 16.5% Actual
•Softball 19% Projected
•Softball 5% Actual
•Lacrosse -21% Projected
•Lacrosse 0% Actual
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Town of Prosper
•Parks and Recreation Board to discuss, at
their July meeting, Field User Fees.
•Board Concerns:
•Town kids not being able to register,
•Out of Town participants need to pay more
to offset the cost of construction and
maintenance,
•Concern that the Town can not keep up with
future demand.
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Town of Prosper
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•HMGP
•Projects
•Process
•Value
•Support Letters
5. Grant Opportunities (KB)
Town of Prosper
Summary and Wrap Up
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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.
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Town of Prosper
Adjourn
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