Town Hall Budget Presentation 08.26.2021TOWN HALL BUDGET MEETING
AUGUST 26, 2021
Budget Meeting
Objective
•To inform citizens about the budget process and engage them in the process.
•Develop open dialogue to explain the components of developing a budget.
•Ongoing commitment to keep Town of Prosper citizens informed about the Town’s budget and financial resources used from public funds.
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Annual Budget Components
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Town’s Strategic Goals
•Budget process is tied to Town Council’s strategic goals set at Strategic
Planning session held every year in January.
•Town Council and Staff establish major initiatives centered around
the Strategic goals.
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Town of Prosper Strategic Goals
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•Premier Residential Community
•Investment in Prosper’s Future
•Financially responsible Town government providing exceptional
municipal services
•Successful Dallas North Tollway Development
•Successful Prosper Downtown Redevelopment
Components of Operating Budgets
Operating
Budget
Base
Budget
Non-
Discretionary
Increases
Discretionary
Packages
Budget
Reductions
Base Budgets
•Reflect the total operations cost approved during last year’s budget.
•Essentially working with the same amount of funds to operate current
level of services.
•Any additional expenditures have to be requested through non-
discretionary or discretionary packages.
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Non-Discretionary Requests
Requests for expenditures required by federal or state regulations,
Town ordinance or policy,or best business practices.Denial of these
items would reduce the current level of service provided to citizens or
leave the Town in non-compliance of a mandated regulation.These
requests are considered higher priority than discretionary packages.
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Discretionary Package Requests
Requests for proposed expenditures to enhance service levels,add
new programs or services,acquire capital items,or add employees.
Discretionary Package requests are grouped into different levels.
•Discretionary –1 “must do”
•Discretionary –2 “should do”
•Discretionary –3 “nice to do”
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Financial Goals
•Per charter -not less than 20%of the total General Fundexpenditures,to be used in case of unforeseen items of expendituresorrevenueshortfalls.
•Council also adopted a fund balance policy that includes a minimumfundbalanceofanadditional5%
•Total reserves of 25%
•FY 2020 -$13,923,232 (48%)
•FY 2021 -$15,014,096 (41%)–estimated
•FY 2022 -$15,031,630 (40%)–proposed budget
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Financial Goals
•Debt Policy -targeted to not exceed 6%of the total assessed
valuation of the Town’s tax rolls.“Currently at 2.34%”
•The Town will target an I&S rate that makes up 35%or less of the
Town’s total tax rate (M&O plus I&S tax rates).“Currently at 35%”
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Appraised Value History
Certified appraised value is $5.437 Billion for 2021.
•18.17% increase compared to 2020 value of $4.601 Billion
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Tax Year 2016 2017 2018 2019 2020 2021
Final Value ($Billions)$2.546 $3.114 $3.667 $4.209 $4.601 $5.437
Value Changes ($Millions)$407.2 $567.8 $552.9 $542.1 $392.1 $836.0
Percentage Change 19.04%22.30%17.75%14.78%9.32%18.17%
2021 Property Valuations and Proposed Tax Rate
•Certified Total Taxable (after freeze loss) Increased 18.17%
•Total Valuation $5,437,210,564
•New Construction $469,526,490 (56% of increased value)
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•Proposed Tax Rate
Maintenance & Operation $0.3380 / $100
Debt Service $0.1820 / $100
Total Proposed Tax Rate $0.5200 / $100
•No-New Revenue Tax Rate $0.481842 / $100
•Voter -Approval Tax Rate $0.539436 / $100
Collin County Average Home Value -$581,940
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Taxing Jurisdiction
Tax Rate
per $100 Exemption Tax Levy
Prosper ISD (proposed)$1.4603 25,000$ $8,133
Town of Prosper (proposed)$0.5200 58,194$ $2,723
Collin County (proposed)$0.1681 29,097$ $929
Collin College (proposed)$0.0812 -$ $473
Totals $2.2296 112,291$ $12,258
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Denton County Average Home Value -$491,741
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Taxing Jurisdiction
Tax Rate
per $100 Exemption Tax Levy
Prosper ISD (proposed)$1.4603 25,000$ $6,816
Town of Prosper (proposed)$0.5200 49,174$ $2,301
Denton County (proposed)$0.2331 5,000$ $1,135
Totals $2.2134 79,174$ $10,252
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Proposed Property Tax Rate Comparison
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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 0.50%.
•Fourth budget season to have the two Public Safety Special Purpose
Districts. This helps funds 19 Police officers and 18 Firefighters.
•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
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Sales Tax Historical Collections -1% GF Net of TIRZ
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Fiscal Year Sales Tax Collections % Change
FY 2016-2017 $3,509,444 25.50%
FY 2017-2018 $4,424,976 26.09%
FY 2018-2019 $4,870,250 10.06%
FY 2019-2020 $6,096,349 25.18%
FY 2020-2021 Projected $7,592,607 24.54%
FY 2021-2022 Proposed $7,972,237 5.00%
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Revenues by Type
FY 2021-2022 Proposed Budget -$102,574,483
*Excludes Transfers
Expenditures by Type
FY 2021-2022 Proposed Budget -$114,915,859
23*Excludes Transfers
Expenditures by Fund
FY 2021-2022 Proposed Budget
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General Fund Revenue
FY 2021-2022 Proposed Budget -$37,822,045
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General Fund Expenditures by Department
FY 2021-2022 Proposed Budget -$37,804,511
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Supplemental Package Summary General Fund
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One-Time
Costs
Recurring
Costs
Package
Total
Revenue/
Offset
Total Costs
Non-Discretionary $706,207 $374,633 $1,080,840 ($518,794)$562,046
Discretionary $2,980,331 $3,491,056 $6,471,387 ($776,677)$5,694,710
Requests not funded $1,474,067 $155,085 $1,629,152 $1,629,152
Major General Fund Discretionary Packages
•Fire
•Six Firefighter/Paramedics (P/T elimination)$ 400,116
•Three Firefighter/Paramedics (OT reduction)$ (62,301)
•Replace Self Contained Breathing Apparatus $ 108,111
•Police
•Four Police Officers $ 738,799
•One Detective $ 229,551
•Covered Parking $ 325,000
•Development Services
•Two Building Inspectors $ 256,570
•Comprehensive Plan $ 315,000
•Library
•Part-Time Social Media Content/Library $ 27,117
Production Specialist 28
Major General Fund Discretionary Packages -Continued
•Streets
•Streets Supervisor $ 144,462
•Signs and Signal Supervisor $ 129,432
•Pavement Data Collection Program $ 109,000
•Traffic Signal Upgrade Plan and Design $ 376,825
•Parks
•Park Planner $ 88,923
•Administrative Assistant $ 70,782
•Lakewood Park Lighting Improvements $ 795,000
•US380 Median Design Phase 2 $ 90,000
•Crew Leader/Shop Mechanic $ 109,039
•Heavy Equipment Operator $ 63,561
•Chemical Technician $ 61,282
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Major General Fund Discretionary Packages -Continued
•Administration
•Public Meeting Video Streaming Solution $ 60,500
•Grants Administrator $ 92,361
•Part-Time Payroll Specialist $ 38,314
•AT&T Firstnet –Public Safety Vehicle Routers $ 58,000
•GIS Analyst $ 105,806
•Part-Time Administrative Assistant $ 29,673
•Town Website Redesign $ 50,000
•Part-Time Court Clerk $ 40,398
•Engineering
•Senior Engineer –Development $ 149,261
•Part-Time Administrative Assistant $ 38,053
•Median Lighting Design –US380 $ 55,000
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General Fund 5-Year Budget Summary
Five Year Budget Assumptions
•Property Tax Revenue –FY 2023-FY 2026 7%
•Sales Tax Growth –FY 2023-2026 5% growth rate
•License, Permit and Fee Revenue –$4.8 million per year
•Inflationary and projected growth
•FY 2023-FY 2026 –29 additional Fire positions
•FY 2023-FY 2026 –17 additional Police positions
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General Fund 5-Year Budget Projection
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Proposed Year 2 Year 3 Year 4 Year 5
Budget Projected Projected Projected Projected
FY 2021-2022 FY 2022-2023 FY 2023-2024 FY 2024-2025 FY 2025-2026
Beginning Fund Balance 15,014,096 15,031,630 15,041,668 15,052,136 15,063,047
Revenues 37,822,045 39,512,437 41,513,178 43,648,166 45,770,379
Base Budget Expenditures 30,252,284 34,282,217 35,310,684 36,370,003 37,461,104
Proposed Non & Discretionary Supplements 7,552,227 - - - -
3% Compensation/Operating Inflation 1,028,466 1,059,320 1,091,100 1,123,833
Future Police Positions 589,194 939,101 1,431,906 2,317,714
Future Fire Positions 1,189,909 1,886,151 2,524,924 3,235,300
Remaining Available (Other Depts/One-Time)2,412,614 2,307,454 2,219,321 1,621,061
Total Anticipated Expenditures 37,804,511$ 39,502,400$ 41,502,710$ 43,637,254$ 45,759,012$
Ending Fund Balance 15,031,630$ 15,041,668$ 15,052,136$ 15,063,047$ 15,074,414$
Change in Fund Balance 17,534$ 10,038$ 10,468$ 10,911$ 11,367$
Fund Balance as % of Expense 40%38%36%35%33%
Fund Balance Goal is minimum of 20% Contingency reserves per Charter and additional 5% reserve.
Water and Sewer Fund
•No adjustment to sewer rates in FY 2022
•No adjustment to water rates in FY 2022
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Water and Sewer Fund Revenue
FY 2021-2022 Proposed Budget –$30,840,195
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Water & Sewer Fund Expenditures by Function
FY 2021-2022 Proposed Budget -$30,201,240
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Supplemental Package Summary Water & Sewer Fund
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One-Time
Costs
Recurring
Costs
Package
Total
Revenue/
Offset Total Costs
Non-Discretionary $293,400 $1,381,662 $1,675,062 ($1,325,682)$349,380
Discretionary $237,733 $345,141 $582,874 ($18,500)$564,374
Requests not funded $35,000 $3,113 $38,113 $38,113
Major Water & Sewer Discretionary Packages
•Utility Billing
•Utility Billing Clerk $ 65,905
•Water
•Crew Leader $ 118,754
•Irrigation Specialist $ 106,802
•Public Works and Parks Facility Needs Assessment $ 80,000
•Wastewater
•Odor Control –Public Works Lift Stations $ 250,000
•Utility Line Locator $ 121,039
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Average Monthly Residential Bill Comparison
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Summary of Capital Program by Function
•Streets $58,968,033
•Parks $ 6,553,000
•Facility $ 80,000
•Water and Sewer $28,646,000
•Drainage $ 985,000
Includes projects funded by the State, Town, County and Private Development
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Capital Projects -Streets
•First Street (Coit –Custer)
•Fishtrap (Elementary –DNT)
•Fishtrap Segment 2 (PISD Reimbursement)
•Teel (US 380 Intersection Improvements)
•Preston Road/First Street Dual Left Turn Lane
•Preston Road/Prosper Trail Dual Left Turn Lane
•Craig Street (Preston –Fifth)
•DNT Main Lane (US 380 –FM 428)
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Capital Projects -Parks
•Windsong Ranch Park #2
•Pecan Grove Park Phase 2
•Prairie Park
•Lakewood Preserve Phase 2
•Tanner’s Mill Park Phase 2
•Windsong H&B Trail
•Gee Road Trail Connection
•Frontier Park Storage
•Sexton Park, Phase 1
•Coleman Street Median Landscape
•Prosper Trail Median Landscape
•US 380 Green Ribbon Landscaping/Irrigation
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Capital Projects –Facility
•Parks and Public Works Needs Assessment
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Capital Projects –Water, Sewer, and Drainage
•Lower Pressure Plane Pump Station Phase 2
•Lower Pressure Plane Water Line
•Lower Pressure Plane Water Line Easements
•Doe Branch Parallel Interceptor
•Frontier Park/Lakes of Prosper Drainage
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Accelerated CIP Program
General Fund Drawdown/Settlement Funds
•First Street (DNT -Coleman) Land Acquisition $ 1,225,000
•Moved from Years 26-31 to FY 21/22
•Legacy (Prairie -Fishtrap) Design $ 850,000
•Moved from Years 26-31 to FY 21/22
•Coleman (Gorgeous –Prosper HS) Design*$ 750,000
•Moved from Years 26-31 to FY 21/22
•Coleman (Gorgeous –Prosper HS) Land $ 625,000
•Moved from Years 26-31 to FY 21/22
•Lakewood Preserve Lighting $ 750,000
•Moved from FY 24/25 to FY 21/22
•Fire Station #4 Engine $1,100,000
•New Item Total $5,300,000*
*Use of $300,000 in Impact Fees
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Accelerated CIP Program
Debt Funded
•Fishtrap (Teel –Gee Road) Construction $ 6,025,000
•Moved from FY 23/24 to FY 21/22
•Gee Road (Fishtrap –Windsong Retail) Construction $ 3,520,000
•Moved from Years 26-31 to FY 21/22
•First Street Land and Construction $12,300,000
•Moved from Years 26-31 to FY 22/23
•Fire Station #4 Design and Construction $ 6,000,000
•Design Moved from FY 22/23 to FY 21/22
•Construction Moved from FY 24/25 to FY 22/23
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American Rescue Plan Act (ARPA) Funds
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•Doe Branch, Phase 3 WWTP Construction $13,050,000
•Use of ARPA Funds to reduce debt issuance by $6,000,000
•FY 22/23
General Fund 5-Year Budget Projection
Accelerated Capital Budget Plan
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Proposed Year 2 Year 3 Year 4 Year 5
Budget Projected Projected Projected Projected
FY 2021-2022 FY 2022-2023 FY 2023-2024 FY 2024-2025 FY 2025-2026
Beginning Fund Balance 15,014,096 11,199,923 11,199,923 11,199,923 11,199,923
Revenues 37,822,045 39,512,437 41,513,178 43,648,166 45,770,379
Base Budget Expenditures 30,252,284 34,282,217 35,310,684 36,370,004 37,461,104
Proposed Non & Discretionary Supplements 11,052,227 - - - -
3% Compensation/Operating Inflation 1,028,467 1,059,321 1,091,100 1,123,833
Future Police Positions 589,194 939,101 1,431,906 2,317,714
Future Fire Positions 1,189,909 3,430,108 3,250,521 3,257,037
Capital Improvement Program Personnel 331,707 282,239 290,706 299,427 308,410
Remaining Available (Other Depts/One-Time)2,140,412 483,259 1,205,207 1,200,000
Total Anticipated Expenditures 41,636,218$ 39,512,437$ 41,513,177$ 43,648,165$ 45,668,098$
Ending Fund Balance 11,199,923$ 11,199,923$ 11,199,923$ 11,199,923$ 11,302,204$
Change in Fund Balance (3,814,173)$ (0)$ 0$ 0$ 102,281$
Fund Balance as % of Expense 27%28%27%26%25%
Fund Balance Goal is minimum of 20% Contingency reserves per Charter and additional 5% reserve.
Key Dates in Budget Process
September 14 Public Hearing on Proposed Tax Rate
Council Sets the 2021 Tax Rate
Council Adopts the FY 2021-2022 Budget
October 1 Fiscal Year 2021-2022 Begins
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Thank you!
Questions?
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