20180828 Proposed Budget PPTPROPOSED BUDGET
PUBLIC HEARING
AUGUST 28, 2018
Proposed FY 2018-2019 Budget Highlights
No Tax Rate Increase
Increased Property Valuations
New Growth to Tax Roll
Increased Service Levels to Town
Increased Infrastructure Needs
Increased Sales Tax Receipts
2
Proposed FY 2018-2019 Budget Expenditures by Fund
3
$29,044,828
26.8%
$6,198,439
5.7%
$19,413,633
17.9%$2,064,474
1.9%
$2,465,008
2.3%
$8,046,738
7.4%
$9,657,384
8.9%
$3,612,466
3.3%
$1,183,335
1.1%
$18,080,996
16.7%
$8,707,313
8.0%
FY 2018-19 Budget by Fund
$108,474,614 for all Funds
General Fund
General Debt Service Fund
Water & Wastewater Fund
TIRZ # 1 & 2 Funds
SPD - Crime & Fire Funds
Water Impact Fund
Roadway Impact Fund
Internal Service Funds
Other Funds
CIP - New General Gov't Bond Funding
CIP - New Enterprise Bond Funding
Operating Budget Components
Base Budget –example: electricity, existing personnel costs.
Total: $37,938,493
Non-Discretionary Supplemental Request (“must do”) —examples: external increase in software maintenance fees, water/wastewater charges, changes from state law.
Total: $3,683,243
Discretionary Supplemental Request (“must do” and “should do”) —examples: new positions or vehicles, park or public works projects.
Total: $9,909,485
Cut Supplemental Request (“should do” and “nice to do”)
Total: $476,869
4
ALL FUNDS REVENUES BY TYPE
Taxes
$28,509,113
40%
License, Fees &
Permits
$8,077,837
11%
Charges for
Services
$23,120,856
32%
Fines & Warrants
$427,224
1%
Investment Income
$546,711
1%
Miscellaneous
$610,587
1%
Impact Fees
$9,869,500
14%
5
ALL FUNDS EXPENDITURES BY TYPE
General Government
$11,854,400
15%
Public Safety
$13,659,175
17%
Community Services
$4,335,754
5%
Streets & Highways
$3,664,411
4%
Development Services
$2,986,984
4%
Utility Services
$14,027,927
17%
Engineering
$1,234,618
1%
Debt Service
$9,674,165
12%
Economic
Infrastructure
Development
$2,064,474
3%
Impact Fee
Infrastructure
Development
$18,164,397
22%
6
2018 Property Valuation and
Tax Revenue
7
2018 Property Valuations
•Certified Total Taxable (after freeze loss) Increased 17.75%
Collin County Value $3,108,129,482
Denton County Value $ 558,793,291
Total Valuation $3,666,922,773
•Existing Taxable Values Increased $163,513,067 or 5.25%
+ 04.32% Collin County
+ 11.68% Denton County
•New Construction Totaled $389,402,483
Collin County $271,532,968
Denton County $117,869,515
8
Appraised Values History
Certified appraised value is $3.667 Billion for 2018 (excluding TIRZ).
•17.75% increase compared to 2017 value of $3.114 Billion
Average homestead taxable value increased from $495,762 to $523,567
•Average town homeowner taxes from $2,320 to $2,450 or $10.83 more per month.
(Includes new value along with existing value)
Tax Year 2013 2014 2015 2016 2017 2018
Final Value
($Billions)$1.447 $1.753 $2.139 $2.546 $3.114 $3.667
Value Changes
($Millions)$194.1 $305.8 $385.7 $407.2 $567.8 $552.9
Percentage
Change 15.49%21.13%22.00%19.04%22.30%17.75%
9
Average Single-Family Home Value History
$344,458 $333,084 $324,387 $321,662
$351,317 $378,651
$423,062
$460,766 $495,762
$523,567
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
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Single Family Residential –Under Construction / Lot Ready
Under Construction / Lot Ready
2,182 lots 11
Single Family Residential –Shovel Ready
Under Construction / Available Lots
2,182 lots
Shovel Ready / Upcoming Lots
1,192 lots 12
Non-Residential –Under Construction / Lot Ready
Under Construction
225,912 Square Feet 13
Non-Residential –Shovel Ready/Upcoming Sites
Under Construction
225,912 Square Feet
Shovel Ready / Upcoming Sites
314,966 Square Feet 14
Proposed Tax Rate
•Proposed Tax Rate
Maintenance & Operation $0.367500 / $100
Debt Service $0.152500 / $100
Total Proposed Tax Rate $0.520000 / $100
•Effective Tax Rate $0.531332 / $100
•Rollback Tax Rate $0.581388 / $100
15
Ad Valorem Taxes
2018
Freeze Adjusted Taxable Value $ 3,666,922,773
Times Total Tax Rate per $100 $0.52
$ 19,067,998
Plus Actual Tax From Freeze $ 1,231,616
Times Anticipated Collection Rate 99.00%
Total Tax Levy $ 20,096,618
One Penny on the Tax Rate Yields $ 366,692
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2019 Proposed
Sales and Use Tax
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Sales Tax
Town levies a total of 2% sales tax on all taxable items sold within its borders.
Prosper Economic Development Corporation-Type B levies 0.5%.
May, 2018, voters approved to abolish the 0.50% sales tax revenue for property tax relief and replaced it with the creation of two Public Safety Special Purpose Districts.
Reflected in the budget as Special Revenue Funds:
Crime Control and Prevention District –0.25% sales and use tax
Fire Control, Prevention, and Emergency Medical Services District –0.25% sales and use tax
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Sales Tax 8.25% Collected in the Town
State, 6.25%
Local: Support General
Fund, 1%
Local: EDC Type B, 0.50%
Local: Fire District, 0.25%
Local: Crime District, 0.25%
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Sales Tax Historical Collections
Fiscal Year Sales Tax Collections % Change
FY 2013-2014 $3,726,767 4.25%
FY 2014-2015 $4,165,660 11.78%
FY 2015-2016 $5,328,670 27.92%
FY 2016-2017 $6,761,502 26.89%
FY 2017-2018 estimate $8,818,909 30.43%
FY 2018-2019 Budget $9,820,181 11.35%
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Compensation and Benefits
21
Compensation and Benefits
•2nd year of implementing the market adjustments done in FY 2016-2017.
•Sworn Fire and Police personnel are on a step plan which reflects a 3% increase in the program.
•Civilian pay is based on a merit program with an average 3% increase.
•The Town’s Texas Municipal Retirement System (TMRS) 2019 contribution rate increased from 13.53% to 13.55% with a funded ratio increase of 86.1% from prior year of 83.5%.
22
Compensation and Benefits
•2nd year the Town being self-insured for health benefits.
•Health Benefit Plan Savings/Changes:
•Elimination of Compass and Health Check 360
•Increase Town’s contribution rate by 3%
•Increase PPO Employee’s contribution by 10%
•Copay changes in PPO plan
•Working Spouse Surcharge of $200
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Compensation and Benefits
•Vacancy Management/Salary Savings
•Budgeted Savings in FY 2018-2019 –2% salary savings
•$288,151 in General Fund
•$49,272 in Water/Wastewater Fund
•Savings from normal turnover and management control over filing of vacant positions
•Adds additional flexibility to deal with any revenue shortfalls or appropriate to other projects
•Most New Positions are budgeted for January 1 placement
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Proposed Positions
Department Proposed Staffing Positions FTE Department Proposed Staffing Positions FTE
Finance Buyer 1 Park Operations Equipment Operator 1
IT Help Desk Technician 1 Park Operations Maintenance Worker 1
Court Part-Time Marshal 0.5 Park Operations Chemical Specialist 1
Police Patrol Officers 5 Park & Recreation Recreation Programmer 1
Police CID/Administrative Sergeant 1 Engineering Engineer 1
Dispatch Communication Officers 2 Water Utility Worker 1
Fire Division Chief 1 Water Heavy Equipment Operator 1
Fire Marshal Fire Inspector/Investigator 1 Water Crew Leader 1
Building Inspections Permit Technician 1 Wastewater FOG Technician 1
Streets Senior Signal/Sign Technician 1 Wastewater Utility Worker 1
Wastewater Heavy Equipment Operator 1
TOTAL FTE 25.5 25
GENERAL FUND
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General Fund Revenue
FY 2018-2019 Proposed Budget
Property Tax
51.4%Sales Tax
16.1%
Franchise Fees
5.1%
License, Fees & Permits
19.4%
Charges for Services
1.2%
Fines & Warrants
1.5%
Investment Income
0.8%
Transfers In
3.2%
Miscellaneous
0.2%Park Fees
1.1%
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General Fund Expenditures by Department
FY 2018-2019 Proposed Budget
Administration
20.3%
Police Services
15.6%
Fire Services
25.0%
Public Works
12.2%
Community Services
13.0%
Development Services
10.0%
Engineering
4.1%
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General Fund Expenditures by Function
FY 2018-2019 Proposed Budget
29
Personnel, 15,485,923 ,
51%
Operations, 8,458,705 ,
28%
Capital, 5,100,199 , 17%
Transfers Out, 1,268,034 ,
4%
General Fund Major Program Enhancements
•Public Works/Streets
•Annual Street Maintenance Program $1,000,000
•BNSF Quiet Zone (First & Fifth)$ 145,000
•FM 2478 Right Turn Lanes $ 100,000
•Coleman (Gorgeous –Prosper Trail)$375,000
•Senior Signal/Sign Technician $ 99,980
•Police
•Five Patrol Officers $ 539,351
•CID/Administrative Sergeant $ 150,558
•K9 Unit $ 129,001
•FLIT Sky Watch Tower $ 153,247
•Two Dispatch Officers $ 102,316
•Out Years Budgeted FY20-2; FY21-4; FY 22-2; FY 23-4 future Patrol Officers
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General Fund Major Program Enhancements
•Fire
•Mid-Mount Platform Ladder Truck $1,650,000
•Additional Funding for Ambulance Replacement $ 91,000
•Division Chief $ 181,909
•Additional Funding for Future Vehicle Replacement $ 368,220
•Fire Inspector/Investigator $ 128,329
•Out Years Budgeted FY20-6 future Fire Fighter Positions
31
General Fund Major Program Enhancements
•Parks
•Chemical Injection System $ 115,000
•Town Hall Open Space design $ 55,000
•Administration
•Public Safety Complex –FF&E $ 1,500,000
•Continuous Process Improvement Program $ 70,000
•Salary Savings ($ 288,151)
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General Fund 5-Year Budget Summary
•Outer Year Budget Assumptions
•Property Tax Revenue–FY 2020-10% growth rate; FY 2021-2023-8% growth
rate
•Sales Tax Growth –FY 2020-5% growth rate; FY 2021-2023-3% growth
•Building Permits Growth –leveled to a normal rate of permits of $2.8M
•Compensation Rate Increase of 3%
•Base line budget increase for inflation –3%
•FY 2020 –6 additional Fire Fighter positions
•FY 2020 –2 Police Officers; FY 2021 –4 Police Officers; FY 2022 –2 Police
Officers; FY 2023 –4 Police Officers
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General Fund 5-Year Budget Projection
34
Proposed Year 2 Year 3 Year 4 Year 5
Budget Projected Projected Projected Projected
FY 2018-2019 FY 2019-2020 FY 2020-2021 FY 2021-2022 FY 2022-2023
Beginning Fund Balance $ 11,358,373 $ 8,922,657 $ 9,115,226 $ 9,198,726 $ 9,463,373
Revenues $ 27,877,145 $ 28,143,610 $ 29,563,489 $ 31,088,967 $ 32,728,690
Base Budget Expenditures $ 20,772,167 $ 26,034,657 $ 26,976,017 $ 28,098,329 $ 29,206,672
Proposed Non & Discretionary Supplements $ 9,540,694 $ -$ -$ -$ -
3% Compensation/Operating Inflation $ 759,230 $ 838,531 $ 843,213 $ 874,123
Future Police Officers $ 268,263 $ 768,027 $ 967,523 $ 1,481,707
Six Future Fire Fighters & Maint of Ladder Truck $ 888,892 $ 897,414 $ 915,255 $ 933,632
Total Anticipated Expenditures $ 30,312,861 $ 27,951,042 $ 29,479,989 $ 30,824,320 $ 32,496,134
Ending Fund Balance $ 8,922,657 $ 9,115,226 $ 9,198,726 $ 9,463,373 $ 9,695,929
Change in Fund Balance $ (2,435,716)$ 192,569 $ 83,500 $ 264,647 $ 232,556
Fund Balance as % of Expense 29.44%32.61%31.20%30.70%29.84%
Fund Balance Goal is minimum of 20% Contingency reserves per Charter and additional 5% reserve.
WATER AND WASTEWATER
FUND
35
Water & Wastewater Fund Revenue
FY 2018-2019 Proposed Budget
Water Charges
58.8%Wastewater Charges
31.3%
Solid Waste Charges
7.3%
License, Fees & Permits
0.2%
Penalties
0.5%
Investment Income
0.5%Miscellaneous
1.4%
36
Monthly Rate Impact –Average Residential
Customer•Town adopted a multi-year water and wastewater rates during last
year’s budget.
•Proposed budget will reflect the current adopted 2nd year water and
wastewater rate increases.
1" meter FY 2018 FY 2019 Increase
%
Change
Water, 12K gallons $71.83 $76.87 $5.04 7.02%
Wastewater, 8K gallons $58.55 $67.60 $9.05 15.46%
Drainage, 10K SQFT impervious
surface $5.15 $5.15 -0.00%
Solid Waste-contract renewing
2/1/19 $11.35 $11.35 -0.00%
Total $ 146.88 $ 160.97 $ 14.09 9.59%37
Water & Wastewater Fund Expenditures
FY 2018-2019 Proposed Budget
38
Administration
3%Public Works
33%
Debt Service
17%
Water Purchases
26%
WW Management
Fees
14%
Solid Waste Collection
7%
Water & Wastewater Fund by Function
FY 2018-2019 Proposed Budget
39
Personnel
13%
Operations
10%
Debt Service
17%
Water Purchases
26%
WW Management Fees
14%
Transfers Out
6%
Capital
7%Solid Waste Collections
7%
Water & Wastewater Major Program Enhancements
•Town projects increased water consumption coupled with a 5% rate adjustment from NTMWD from $2.83 per 1,000 to $2.97 per 1,000 gallons
•6 new FTE staff positions $ 324,646
•Additional funds for water purchases $ 1,148,435
•Additional funds for sewer management fees $ 802,211
•WWTP Decommission $ 900,000
•E-W Collector (Cook Ln-DNT) Water Line $ 250,000
•Church/Parvin Wastewater Reconstruction $ 100,000
•Custer Rd Meter Station & Water Line –Design $ 290,325 *
* TxDOT to reimburse Town once project is complete.
40
CAPITAL IMPROVEMENT
PROJECTS
41
Recently Completed & Under Design
42
Recently Completed
Under Design
$191,444,442
Completion in Next 5 Years
43
Recently Completed CIP
Under Design
$191,444,442
Completed
Next 5 Years
$472,030,326
Completion Beyond 5 Years
44
Recently Completed CIP
Under Design
$191,444,442
Completed
Next 5 Years
$472,030,326
Completion
Beyond 5 Years
$543,869,135*
STREET
West Prosper Roads $3,100,000
Gates of Prosper, TIRZ 1 $2,532,536
Prosper Trail (Coit –Custer) 4 lanes $ 200,000
Coit Road (First-Frontier) 4 lanes $ 400,000
Frontier Parkway (BNSF Overpass)$2,210,000
E-W Collector (Cook Lane-DNT)$1,250,000
First (DNT Intersection Improvements)$2,250,000
Prosper Trail (DNT Intersection Improvements)$ 75,000
First Street/BNSF RR Overpass Study $ 40,000
Prosper Trail/BNSF RR Overpass Study $ 40,000
Coleman Street (Gorgeous –Prosper Trail)$ 375,000
FM 2478 (US 380-FM 1461)$ 169,000
Coleman Street (at Prosper HS)$ 700,000
Fifth Street (Parvin-Craig) *$ 400,000
Lane Street (First-Third)*$ 225,000
North Street (Seventh-Eighth) *$ 175,000
Pecan Street (First-End) *$ 200,000
* Street Maintenance Program in the General Fund
$15,591,536 45
TRAFFIC
Median Lighting –US 380 (Denton County-Custer)$ 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
46
PARK
Star Trail Park # 1 $ 985,000
Lakewood Preserve $ 483,000
Prairie Park $ 300,000
Tanners Mill Park $ 468,000
Town Hall Open Space Park $ 55,000
Whitley Place H&B Trail Extension $ 500,000
Windsong H&B Trail Phases 3C,5,6A,6B,7,8, and 9 $ 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 $ 100,000
SH 289/US 380 Green Ribbon Landscape Irrigation $ 750,000
$4,156,524
47
FACILITY
Police Station and Dispatch –Professional Services $ 385,000
Police Station and Dispatch –Development Costs $ 850,000
Police Station and Dispatch -Construction $10,765,000
Police Station and Dispatch –FF&E $ 1,500,000
Fire –Mid-Mount Platform Ladder Truck $ 1,650,000
$15,150,000
48
WATER
Custer Road Meter Station and Water Line Relocations $ 290,325
Fishtrap Elevated Storage Tank (South)$ 5,415,000
Water Supply Line Phase 1 $ 7,694,479
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
$17,336,954
WASTEWATER
Public Works WWTP Decommission $ 900,000
Doe Branch WWTP 0.25 MGD Expansion $ 3,625,000
Church / Parvin Wastewater Reconstruction $ 100,000
$4,625,000
49
DRAINAGE
Coleman Street Channel Improvements $ 290,979
Old Town Drainage –Church & Parvin Drainage Improvements $ 460,000
Old Town Regional Retention –Broadway (Design & Construction)$ 550,000
Old Town Drainage –Fifth Street Trunk Main $ 400,000
$1,700,979
50
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Key Dates in Budget Process
September 11 Council Adopts the FY 2018-2019 Budget
Council Sets the 2018 Tax Rate
October 1 Fiscal Year 2018-2019 Begins
54
Thank you!
Questions?
55