09.07.22 Budget Town HallWelcome to the September 7, 2022
Prosper Budget Town Hall Meeting.
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Mayor’s Welcome
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Fiscal Year 2022-2023
Budget Presentation
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Where Are We and How Did We Get Here?
•July 26 Adopted a comprehensive update of Financial Policies
•August 9 Presented Preliminary Budget, received Council Direction
Set dates for Budget and Tax Rate Public Hearing
•August 10-18 Adjusted Discretionary packets per council direction for
the purpose of increasing the capital dedicated levy
•August 22 Finance Committee reviewed revised numbers
•August 23 Budget & Tax Rate Public Hearing
Council provides direction to staff
•September 7 Budget Town Hall Meeting
•September 13 Incorporation of final change and adoption of the budget
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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
•General Fund –fund summary differentiates between recurring and non-recurring
revenues
•Five-year staffing projections incorporated into the 2024-2027 projections.
•Inflation and impacts on both salary competitiveness and costs
•Solid Waste Fund Created 5
Budget Overview-Assessed Valuation & Tax Rate
•Maintains 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 additional collections from prior year
•Establishes a capital Dedicated levy of $7.6 million (Approx. 11.2 cents)
**NOTE:Use of an “unused increment” is limited to three years. Keep in mind there will be a point such increment
may not be available for operations.6
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 $538,904
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
**NOTE:These funds are restricted in use and duration.
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FY 2022 FY 2023
Property Taxes $30,885,023 $37,250,064
Utility Fees $26,690,026 $30,003,927
Sales Taxes $13,681,573 $17,554,077
Impact Fees $10,900,000 $10,450,000
Grants $3,278,078**$4,770,715**
Addressing the Financial Challenges
•Prosper has invested heavily in it’s capital needs resulting in $195 million
of tax supported debt which approximates $5,300 per capita and 3.2%
of Ad Valorem (AV)
•Significant capital needs still remain making it vital that the Town both
manage its debt levels while maintaining the pace of it capital program
•Council has responded by dedicating a portion of the Town’s
Maintenance & Operations (M & O) levy to capital needs. This
dedicated levy combined with the 18 cents of debt service means that
57% of property taxes are supporting capital improvements and not
operations (staffing, benefits, utilities, etc.)
•Capital needs are outlined in more detail on the following slides…
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Initial Capital Dedicated Levy (CDL)
$7,400,000
Budget Bonds+Impact CDL
•Fishtrap (Elem –DNT) Construction $ 28,050,000 $ 27,300,000 $ 750,000
•Fishtrap and Gee Road Construction $ 10,723,793 $ 9,723,793 $ 1,000,000
•Fire Station #4 $ 10,000,000 $ 8,500,000 $ 1,500,000
(Increase all-in budget $8M to $10M)
REMAINING CDF TO BE ALLOCATED $4,150,000
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NOTE:Remaining Capital Dedicated not used for cost overruns will be programed in November by Council
CDF Balance of $4,150,000 + Future CDL + Bonds + Fees
➢FY 2024:Est. Cost FY Totals
1.Raymond Community Park, Phase 1 (Construction)$ 18,000,000 $18M
➢FY 2025:
1.Legacy (Prairie -Fishtrap) -4 lanes (ROW)$ 575,000
2.Public Safety Training Facility, Phase 1 (Design)$ 600,000 $1.2M
➢FY 2026:
1.Coleman (Gorgeous -Prosper Trail -4 lanes (Construction) $ 5,500,000
2.Coleman (Prosper Trail -Talon) -2 SB lanes (Construction) $ 2,700,000
3.Legacy (Prairie -Fishtrap) -4 lanes (Construction)$ 6,800,000
4.Town Hall Open Space (Design)$ 200,000 $15.2M
➢FY 2027:
1.Coit Road (First -Frontier) -4 lanes: (ROW)$ 1,700,000
2.Coit Road (First -Frontier) -4 lanes: (Construction)$ 7,500,000
3.Craig Street (Preston -Fifth): (Construction)$ 3,000,000
4.Public Safety Training Facility, Phase 1 (Construction)$ 5,400,000 $17.6M –$52M 10
➢FY 2028-Beyond:Est. Cost
1.Coit Road (First -Frontier) -4 lanes: (Construction)$12,350,000
2.Legacy (Fishtrap -Prosper Trail) -4 lanes (Design)$ 450,000
3.Legacy (Fishtrap -Prosper Trail) -4 lanes (ROW)$ 50,000
4.Legacy (Fishtrap -Prosper Trail) -4 lanes (Construction)$ 6,000,000
5.Parvin (FM 1385 -Legacy): (Design)$ 950,000
6.Parvin (FM 1385 -Legacy): (ROW)$ 2,000,000
7.Parvin (FM 1385 -Legacy): (Construction)$13,550,000
8.Teel (US 380 -Fishtrap) -2 NB lanes: (ROW)$ 3,100,000
9.Teel (US 380 -Fishtrap) -2 NB lanes: (Construction)$ 4,300,000
10.Prosper Trail (Coit -Custer) -2 WB lanes: (Design)$ 200,000
11.Prosper Trail (Coit -Custer) -2 WB lanes: (ROW)$ 300,000
12.Prosper Trail (Coit -Custer) -2 WB lanes: (Construction)$12,550,000
13.Town Hall Open Space (Construction)$ 1,810,000
14.Un-named Neighborhood Park: (Design)$ 200,000
15.Un-named Neighborhood Park: (Construction)$ 930,000
16.Various Hike and Bike Trails $ 1,000,000
17.Prosper Center Park Trail Connection $ 900,000 –$60.6M
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➢Other Needs:
1.Public Works Fueling Station Phase 2 $ 455,000
2.Parks Open Space Plan $ 175,750
3.Town Hall Fountain Repair $ 250,000
4.Public Works Needs Assessment Results (Costs Unknown)
5.Logo Change (Costs Unknown)
6.Silo Clean Up / Lighting (Costs Unknown)
➢Other Considerations:
•$6,025,000: Fishtrap (Gee –Windsong) debt sale delayed until FY 2024
•$15,000,000: First Street split into 2 debt sales FY 2024 and FY 2025
•$18,000,000: Raymond Community Park split into 2 debt sales in FY 2024 and FY 2025
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Managing the Tradeoffs-Capital vs. Operations
•Strategic Goals 2 and 3 directly compete with each other-the more
property tax spent on one means less spent on the other
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Prosper Property Tax Distribution by Year
2023 Property Tax -51 cents
General Fund Capital Dedicated
Debt Service TIRZ
1.2 cents/2.3%
20.6 cents/40.4%**
11.2 cents/22%
2022 Property Tax-51 cents
General Fund Capital Dedicated
Debt Service TIRZ
General Fund Capital Dedicated
Debt Service TIRZ
2021 Property Tax-52 cents
35.63 cents/68.5%
15.25 cents/29.3%
1.12 cents/2.2%
18.2 cents/35.7%
1.2 cents/2.3%
31.6 cents/62%
18 cents/35.3%
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**NOTE: 42% reduction in the GF rate.
Total Property Tax Rate Burden-Collin
Prosper ISD Collin County Collin College Prosper
FY 2022 Collin County Prosper
$1.4603 / 66%
$0.51 / 23%
$0.168 / 7%
$0.08122 / 4%
Prosper ISD Collin County Collin College Prosper
FY 2023 Proposed Rates Collin County
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$1.4429 / 66%
$0.51 / 23%
$0.152443 / 7%
$0.08122 / 4%
Total Property Tax Rate Burden-Denton
Prosper ISD Denton County Prosper
FY 2022 Denton County Prosper
$0.51 / 23%
$1.4603 / 66%
$0.233 / 11%
Prosper ISD Denton County Prosper
FY 2023 Proposed Rates-Denton County
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$0.51 / 23%
$1.4429 / 66%
$0.217543 / 11%
Tax on and Average Prosper Homestead
FY 2022 Average Taxable Home Value is $504,329
General Fund/TIRZ $1,654
Debt Service 918
2022 Total $2,572
FY 2023 Average Taxable Home Value is $539,331
General Fund/TIRZ $1,173
Dedicated Capital 604
Debt Service 971
2023 Total $2,748
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FY 2023 Major Initiatives
•Operating
•New ERP Software
•Staffing 34 positions
•Fire 15
•Police 6
•All Other 9
•Opening of New Central Fire Station (FS #3)
•Capital
•First Street (DNT to Coleman)
•Remaining Capital Dedicated not used for cost overruns will be programed in
November
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Citizen Input
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Adjourn
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