08.09.22Welcome to the August 9, 2022
Prosper Town Council Meeting.
Call to Order/Roll Call
Invocation, Pledge of Allegiance, and Pledge to the
Texas Flag
Pledge to the Texas Flag
Honor the Texas flag;
I pledge allegiance to thee,
Texas, one state under God,
one and indivisible.
Announcements of recent and upcoming events.
Consent Agenda
Agenda Item 1.
Consider and act upon the minutes of the July 26,2022,
Town Council meeting.(MLS)
Agenda Item 2.
Consider and act upon the minutes of the July 26,2022,Town
Council Work Session meeting.(MLS)
Agenda Item 3.
Consider and act upon a resolution approving a negotiated
settlement between the Atmos Cities Steering Committee
(“ACSC”)and Atmos Energy Corp.,Mid-Tex Division regarding
the company’s 2022 rate review mechanism filing.(BP)
Agenda Item 4.
Consider and act upon a resolution authorizing the Mayor to
execute a Joint Administrative Agreement with Denton County
for the Community Development Block Grant (CDBG)three-
year program for fiscal year 2023,2024,and 2025.(MLS)
Agenda Item 5.
Consider and act upon authorizing the Mayor to execute a
Professional Engineering Services Agreement between Freese
and Nichols,Inc.,and the Town of Prosper,Texas,related to
the Public Works and Parks and Recreation Facility Master
Plan project.(FJ)
Agenda Item 6.
Consider and act upon awarding CSP No.2022-44-B to
American Landscape Systems,related to construction services
for the Coleman Street Median Landscaping (Victory-Preston)
and the Prosper Trail Median Landscaping (DNT-700’East)
project;and authorizing the Mayor to execute a construction
agreement for same.(HW)
Agenda Item 7.
Consider and act upon an ordinance to rezone Planned
Development-86 (PD-86)to Planned Development (PD),on
277.6±acres,to amend the single-family residential
regulations,located on the north side of US 380,west of
Custer Road.(Z22-0005).(DS)
Proposed LayoutExisting PD-86
Agenda Item 8.
Consider and act upon authorizing the Mayor execute a
Development Agreement between 104 Prosper,310 Prosper,
Prosper Hollow LP &Paramount Soft LP,DD Brookhollow LLC,
55 Prosper and the Town of Prosper,Texas,related to
Rutherford Creek development,located on the north side of
US 380,west of Custer Road.(DS)
Agenda Item 9.
Consider and act upon an ordinance for a Specific Use Permit
(SUP)for a Day Care Center (Grace Chapel),on 5.4±acres,
located on the southeast corner of FM 1385 and Denton Way.
(S22-0005).(DS)
Agenda Item 10.
Consider and act upon authorizing the Mayor to execute a
Development Agreement between North Texas Conference of
the United Methodist Church,and the Town of Prosper,Texas,
related to the Grace Chapel Prosper development,located on
the southeast corner of FM 1385 and Denton Way.(DS)
Agenda Item 11.
Consider and act upon an ordinance to amend Planned
Development-93 (PD-93),on 0.8±acres,located on the
southwest corner of Broadway Street and Preston Road,in
order to allow for a restaurant with drive-through services.
(Z22-0006).(DS)
Agenda Item 12.
Consider and act upon authorizing the Mayor to execute a
Development Agreement between SCSD-FINNELL,LTD,and
the Town of Prosper,Texas,related to the Black Rifle Coffee
development,located on the southwest corner of Broadway
Street and Preston Road.(DS)
Agenda Item 13.
Consider and act upon an ordinance for a Specific Use Permit
(SUP)for a Restaurant with Drive-Through Service,on 1.2±
acres,in the Victory at Frontier development.(S22-0006).(DS)
Tt
S-38
New SUP
Tt
Tt
Agenda Item 14.
Consider and act upon whether to direct staff to submit a
written notice of appeal on behalf of the Town Council to the
Development Services Department,pursuant to Chapter 4,
Section 1.5(C)(7)and 1.6(B)(7)of the Town’s Zoning
Ordinance,regarding action taken by the Planning &Zoning
Commission on any Site Plans and Preliminary Site Plans,
including Mav Addition,Grace Chapel (Site Plan)&Grace
Chapel (Preliminary Site Plan).(DS)
Citizen Comments
The public is invited to address the Council on any topic.
However,the Council is unable to discuss or take action on any
topic not listed on this agenda.Please complete a “Public
Meeting Appearance Card”and submit it to the Town
Secretary prior to the meeting or address the Council via
videoconference or telephone.
Regular Agenda
Pursuant to Section 551.007 of the Texas Government Code,
individuals wishing to address the Council for items listed as
public hearings will be recognized when the public hearing is
opened.For individuals wishing to speak on a non-public
hearing item,they may either address the Council during the
Citizen Comments portion of the meeting or when the item is
considered by the Town Council.
Agenda Item 15.
Submission of the FY 2022-2023 Proposed Budget and Budget
Message.(BP/RBS)
Agenda
•Preliminary to Proposed to Final Adoption-Key Dates
•Budget Overview
•What’s New This Year
•Assessed Valuation including Key Truth in Taxation Numbers
•Revenue Overview all Funds
•Policy Direction-Managing the Tradeoffs
•Multi-Year CIP/Debt Issuance Update
•Compensation Adjustments
•General Fund Overview
•Other Funds
•Follow-Up Items
Preliminary to Proposed to Final Adoption-Key Dates
•August 9 Present Preliminary Budget (a staff document)
Receive Council Direction
Adopt resolutions proposing a tax rate, and setting dates for
Budget and Tax Rate Public Hearing
•August 22 Finance Committee prioritizes Discretionary Packets
•August 23 Budget Work Session to receive report from Finance Committee,
receive results from Five-Year Staffing Plan, provide direction
Tax Rate and Budget Public Hearings
•August xx Budget Town Hall Meeting
•Sept. 13/27Adoption of the Budget
What’s New This Year
•Revision of Financial policies
•Debt
•Operations to Debt Service Levy is now 60/40 or maximum DS rate of 20.4 cents
•Debt maximum is 4% of Taxable Assessed Valuation
•Tax Rate
•Maintenance & Operations Tax Levy now divided between GF & Capital Dedicated/Future Staffing
•Budget Transmittal Letter reformatted and rewritten
•Assessed Valuation Analysis Section and Municipal Cost of Service
•Fund Summaries differentiate Between Recurring and Non-Recurring Revenues
•Once five-year staffing complete five-year projections will provide a more complete
picture of future budgetary pressures.
•Inflation and impacts on both salary competitiveness and costs
•Solid Waste Fund Created
Budget Overview-Assessed Valuation & Tax Rate
•Keeps 51 cent total rate the same
•Shifts just under 0.20 cents from Debt Service to M & O due to strong
A/V growth and excess collections from prior year
•Establishes a capital Dedicated levy of $3.25 mm (approx. 5.3 cents)
48
FY 2022 FY 2023
Total Taxable A/V excluding Frozen Values $5,437,210,564 $6,616,007,864
Total Levy $29,868,918 $36,262,965
No New Revenue Rate $0.481842 $0.438227
Voter Approval Rate $0.539436 $0.527336
Unused Increment Applied $0.00 $0.025825
Remaining Unused Increment $0.043161 $0.017336
Average Taxable Homestead $504,329 $539,331
Revenue Overview-All Funds
•Property Tax and Utility Revenues are largest and most versatile being used
for both operations, debt service and capital
•All other revenue used primarily for either operations (i.e. sales tax) or capital
•With the exception of Pandemic (Cares, ARPA etc.) and CDBG (underserved)
grants are often restricted to one or the other
49
FY 2022 FY 2023
Property Taxes $30,882,225 $37,250,064
Utility Fees $29,174,872 $30,003,927
Sales Taxes $16,405,484 $17,554,077
Impact Fees $12,290,000 $10,250,000
Grants $346,530 $4,770,715
Policy Direction-Managing the Tradeoffs
•Strategic Goals 2 and 3 directly compete with each other-the more
property tax spent on one means less spent on the other
Multi-Year Debt/CIP Plan
•Current Multi-Year Plan below is built around fitting future issuance
into current Debt Service Tax Rate and Capacity.
•Staff is updating A/V projections and needs feedback from council
regarding maximum tax rate to use
Recently Approved Bonds 2021-2022
STREET
•First Street (Coit -Custer): (ROW & Construction)$ 21,375,500
•Gee Road (Fishtrap -Windsong Retail):(Construction)$ 3,520,000
•Fishtrap (Elem -DNT): (Construction)$ 3,700,000
•Teel/US 380 Intersection: (ROW & Construction)$ 1,180,000
•Craig Street (Preston -Fifth):(Design & ROW)$ 450,000
PARKS
•Tanner's Mill Park, Phase 2:(Construction)$ 930,000
•Gee Road Trail Connection: (Design & Construction)$ 700,000
•Raymond Community Park, Phase 1: (Design)$ 1,200,000
FACILITY
•Fire Station No. 4 (Design) $ 600,000
TOTAL $ 33,650,500
Projected Debt Funding Next 5 Years
2022-2023 $17M
2023-2024 $11M
2024-2025 $15M
2025-2026 $11M
2026-2027 $13M
2022-2023 Projects
STREET
•First Street (DNT-Coleman): (ROW)$ 1,775,000
•Fishtrap (Teel –Gee Road): (Construction)$ 6,025,000
•Coit Road (First –Frontier): (ROW) $ 800,000
•Coleman (Gorgeous –Prosper Trail): (ROW)$ 350,000
•Coleman (Prosper Trail –Talon): (ROW) $ 345,000
•Parvin Road (FM 1385 –Legacy): (Design)$ 800,000
•Gorgeous (McKinley –Coleman): (ROW)$ 500,000
•Fishtrap Segment 2 (PISD Reimbursement) $ 1,063,033
PARKS
•Westside Waterline Trail Connection: (Design & Construction)$ 800,000
FACILITY
•Fire Station No. 4: (Design, Development Costs, Construction, FF&E)$ 7,400,000
TOTAL $ 19,853,033
($17,000,000)
2023-2024 Projects
STREET
•First Street (DNT-Coleman): (Construction)$ 7,500,000
PARKS
•Raymond Community Park Phase 1: (Construction)$ 5,375,000
TOTAL $ 12,875,000
($11,000,000)
2024-2025 Projects
STREET
•First Street (DNT-Coleman): (Construction)$ 7,500,000
•DNT Overpass at US 380 $ 4,030,000
PARKS
•Raymond Community Park Phase 1: (Construction)$ 7,125,000
TOTAL $ 18,655,000
($15,000,000)
2025-2026 Projects
•Not Yet Prioritized Projects on CIP Program $ 0
TOTAL $ 0
($11,000,000)
2026-2027 Projects
STREET
•DNT Mail Lanes (US 380 –FM 428)$ 5,493,000
TOTAL $ 5,493,000
($13,000,000)
2027-2032 Projects = $106M GO Bonds
STREET
•Coit Road (First -Frontier): (ROW & Construction)
•Craig Street (Preston -Fifth): (Construction)
•Coleman (Gorgeous -Prosper Trail): (Construction)
•Coleman (Prosper Trail -Talon): (Construction)
•Legacy (Prairie -Fishtrap): (ROW & Construction)
•Legacy (Fishtrap -Prosper Trail): (ROW & Constr)
•Parvin Road (FM 1385 -Legacy): (ROW & Constr)
•Teel (US 380 -Fishtrap) (ROW & Constr)
•Prosper Trail (Coit -Custer) 2 WB Lanes:
(Design, ROW & Construction)
•Gee Road (US 380 -FM 1385) 5th & 6th Lanes:
(Design, ROW & Construction)
59
PARK
•Town Hall Open Space: (Design & Construction)
•Neighborhood Parks
•Various Hike and Bike Trails
•Community Park
FACILITY
•Public Safety Training Facility, Ph. 1: (Design & Constr)
Projects Not Included in GO Bond Election
•Public Works & Parks Facility
•Fueling Center
•New Library
•Senior Center
•Recreation Center
Compensation Survey with Metroplex Cities
•Significant inflation combined with strong revenue growth and a tight job
market have caused many cities to consider larger than normal
adjustments possibly affecting both retention and recruitment
Market Salary Analysis
August 2022
Projected Salary movement of
Benchmark cities
Public Safety
City COLA
Market
Adjustment
Merit
Increase Total
Celina N/A N/A 3.00%3.00%
Colleyville N/A N/A 3.50%3.50%
Coppell N/A N/A 3.50%3.50%
Frisco N/A
Will Evaluate Mid
Year 4.00%4.00%
Keller N/A 3%2.00%5.00%
Little Elm N/A 7-14%2.00%9-16%
McKinney N/A N/A 3.50%3.50%
Southlake N/A N/A 5.00%5.00%
The Colony
5% COLA un 75K 3%
COLA over 75K N/A N/A 4.00%
University
Park 7%N/A 5.00%12.00%
Average 4.83%
Prosper 3.00%
General Employees
City COLA
Market
Adjustment
Merit
Increase Total
Celina 2%N/A 3.00%5.00%
Colleyville N/A N/A 3.50%3.50%
Coppell N/A N/A 3.00%3.00%
Frisco N/A
Wil Evaluate Mid
Year 4.00%4.00%
Keller N/A 2%2.00%4.00%
Little Elm N/A Varies by Position 2.00%2.00%
McKinney N/A N/A 3.50%3.50%
Southlake N/A N/A 5.00%5.00%
The Colony
5% COLA un 75K 3%
COLA over 75K N/A N/A 4.00%
University
Park 3%N/A 3.00%6.00%
Average 4.00%
Prosper 3.00%
NCTCOG Projected Salary
movement of area cities
Public Safety
City Across the Board
Merit
Increase Total
Addison 2.15%3.25%5.40%
Arlington 6.00%6.00%12.00%
Duncanville 3.50%3.50%7.00%
Fort Worth 3.00%3.00%6.00%
Grand Prairie 3.00%5.00%8.00%
Highland Park n/a
Hurst 3.50%0.00%3.50%
Irving 3.50%5.00%8.50%
Lancaster 0.00%5.00%5.00%
Mesquite 3.00%5.00%8.00%
NRH 4.00%4.00%8.00%
Richardson 6.00%0.00%6.00%
Sachse 0.00%3.00%3.00%
Waxahachie 4.00%0.00%4.00%
Weatherford 0.00%2.50%2.50%
Average 6.21%
Prosper 3%
General Employees
City Across the Board
Merit
Increase Total
Addison 2.00%3.25%5.25%
Arlington 6.00%0.00%6.00%
Duncanville 4.57%0.00%4.57%
Fort Worth 2.00%4.00%6.00%
Grand Prairie 3.00%0.00%3.00%
Highland Park 3.00%3.50%6.50%
Hurst 3.50%0.00%3.50%
Irving 3.00%3.50%6.50%
Lancaster 3.00%3.00%6.00%
Mesquite 3.00%3.00%6.00%
NRH 0.00%6.00%6.00%
Richardson 6.00%5.00%11.00%
Sachse 0.00%3.00%3.00%
Waxahachie 4.00%2.00%6.00%
Weatherford 0.00%0.00%0.00%
Average 5.29%
Prosper 3%
CPI highest since 1981
•Dallas Fort Worth Consumer Price Index 9.1% increase over 1 year
ago.
Cost of Living Adjustment
•Cost of 1% COLA across the board increase for all employees
•10/1 -$272,000
•1/1 -$204,000
•4/1 –$136,000
•Cost of 2% COLA across the board increase for all employees
•10/1 -$544,000
•1/1 -$408,000
•4/1 –$272,000
General Fund Overview
•Strong revenue growth has allowed staff to fund all discretionary packages
including $3.25 for capital dedicated and 3% compensation
•However, little is left over for contingency or for any council initiative
FY 2022 FY 2023 Proposed
Recurring Revenues $40,688,995 $45,980,309
Recurring Expenditures $34,709,353 $45,977,619
Excess Recurring $5,979,642 $2,690
Total Discretionary Packet-Recurring $1,032,493 $1,399,738
Total Discretionary Packets-Non-Recurring $5,402,180 $3,874,115
New Personnel $3,346,224 $6,263,159
Resulting Fund Balance (projected)$16,316,341 $11,988,238
Fund Balance in excess of 25% Policy Target 16%0%
FC Options For Prioritizing the Discretionary Packets
1.Accept as is as we have the funding and are within financial policies.
a)Pros-maximizes service levels
b)Cons-leaves contingencies low, does not leave anything for other initiatives, allows
significant employee growth and creates much higher base for future years.
2.Focus on employee count allowing it to grow only by certain percentage,
same as last year, or with population growth
a)Pros-instills financial discipline and frees up additional resources for capital
b)Cons-Does not consider actual needs and penalizes departments that are currently
understaffed and need to catch up
3.Focus on dollars by stating the desired Capital Dedicated Amount or the
maximum amount for current year additions
a)Pros-same as 2 above but dollars are more certain
b)Cons-same as 2 above
Other Funds
•Utility Fund
•We utilize a “breakeven” approach so if balances are in excess of financial policies, a
draw down of reserves is allowed until needed to stay within policy
•In spite of rate pressure from NTMWD no rate increase is currently needed
•Solid Waste Fund
•New this year. Included to allow for an RFP process without the need for a mid-year
budget amendment
•Will also facilitate better tracking of true cost of providing solid waste services
•Includes two discretionary packets-RFP consultant and Town-owned containers
•Employee Health
•Proposed Rate increase of xx%
•Rebid of providers
Follow Up Items From July 12th Budget Work Session
•Professional Services
Agenda Item 16.
Consider and act upon scheduling a public hearing on the FY
2022-2023 proposed Budget.(BP)
Agenda Item 17.
Consider and act upon scheduling a public hearing for the FY
2022-2023 proposed tax rate.(BP)
Agenda Item 18.
Consider accepting submission of the 2022 no-new-revenue
tax rate of $0.438227 per $100 taxable value and the voter-
approval tax rate of $0.527336 per $100 taxable value.(BP)
Agenda Item 19.
Consider and act upon a proposed FY 2022-2023 property tax
rate.(BP)
Possibly direct Town Staff to schedule topic(s)
for discussion at a future meeting.
Executive Session
Section 551.087 –To discuss and consider Economic Development Incentives and all
matters incident and related thereto.
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.
Section 551.074 –To discuss and consider personnel matters and all matters incident and
related there to.
The Town Council Meeting will resume after the
Executive Session.
Reconvene into Regular Session and take any
action necessary as a result of the Closed Session.
Adjourn