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09.13.22The Town Council is currently in a Work Session in the Executive Conference Room. The regular meeting will begin at 6:15 p.m. Welcome to the September 13, 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. Presentations Agenda Item 1. Presentation of a Proclamation to members of the Shawnee Trail Chapter of the National Society of the Daughters of the American Revolution declaring September 17-23,2022,as Constitution Week.(MLS) Agenda Item 2. Receive an update regarding the Pickleball Tournament.(TH) Pickleball Tournament •Saturday,November 5 •Agreement with PISD to utilize Reynolds Middle School for tournament site •Doubles coed tournament with separate age divisions •Local food vendors •Prizes for 1st and 2nd finishes Agenda Item 3. Receive an update from the IT Department.(LJ) Information Technology Department Update Organizational Structure Completed Projects •Microsoft 365 Rollout •Failover Virtual Server Cluster •New Facilities •Computer-Aided Dispatch (ICS/Athena) •GIS Infrastructure Upcoming Projects •ERP System (Finance, HR, UB, Courts) •Cityworks expansion •FirstNet (in progress –supply chain issues) •New Central Fire Station Facility Connectivity Dark Fiber Infrastructure North Central Texas Council of Governments Information Security Assessment [DRAFT]: Town of Prosper, TX August 2, 2022 Jason L. Wells Questions? Consent Agenda Agenda Item 4. Consider and act upon the minutes of the August 23,2022, Town Council meeting.(MLS) Agenda Item 5. Consider and act upon the minutes of the August 29,2022, Town Council special meeting.(MLS) Agenda Item 6. Consider and act upon the minutes of the August 30,2022, Town Council special meeting.(MLS) Agenda Item 7. Receive the Quarterly Investment Report.(RBS) Agenda Item 8. Consider and act upon a resolution approving the Town of Prosper and Prosper Economic Development Corporation (PEDC)Investment Policy and Investment Strategy and approving the list of qualified brokers/dealers and financial institutions that are authorized to engage in investment transactions with the Town of Prosper and the PEDC.(RBS) Agenda Item 9. Consider and act upon a resolution authorizing various individuals as signers of specific accounts and certain investment matters.(RBS) Agenda Item 10. Consider authorizing the Town Manager to amend an existing contract by changing the scope of services with Pattillo,Brown Hill L.L.P.(PBH)from external audit services to professional services for an amount not to exceed $45,000.00.(RBS) Agenda Item 11. Consider and act upon adopting the FY 2022-2023 Prosper Economic Development Corporation budget.(MM) Agenda Item 12. Consider and act upon approving Amendment Sixteen to the Interlocal Agreements between Collin County and the Town of Prosper,Texas,for Animal Sheltering Services and Animal Control Services;and authorizing the Interim Town Manager to execute the same.(MB) Agenda Item 13. Consider and act upon the appointment of a Municipal Judge and authorize the Mayor to execute an agreement for same. (MLS) Agenda Item 14. Consider and act upon awarding CSP No.2022-54-B to Ratliff Hardscape,Ltd.related to construction services for the Pecan Grove Park,Ph 2 (2145-PK),and authorizing the Interim Town Manager to execute a construction agreement for same.(DB) Agenda Item 15. Consider and act upon authorizing the Interim Town Manager to execute a Professional Engineering Services Agreement between Kimley -Horn and Associates,Inc.,and the Town of Prosper,Texas,related to the development of the Town of Prosper ADA Transition Plan.(HW) Agenda Item 16. Consider and act upon awarding CSP No.2022-48-B to Mario Sinacola &Sons Excavating,Inc.,related to construction services for the First Street (Coit to Custer)-4 lanes project; and authorizing the Interim Town Manager to execute a construction agreement for same.(HW) Agenda Item 17. Consider and act upon authorizing the Interim Town Manager to execute a Professional Services Agreement between Freese and Nichols,Inc.,and the Town of Prosper,Texas,related to the update of the Comprehensive Plan.(DS) Agenda Item 18. Consider and act upon a resolution authorizing the Interim Town Manager,and/or his/her designee,to apply for the Office of the Governor,Criminal Justice Division,Bullet- Resistant Shield Grant Program,FY2023.(DK) Agenda Item 19. Consider an act upon approval of the Prosper Youth Sports Commission (PYSC)Bylaw amendments.(DB) Agenda Item 20. 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 Lighthouse Church,First Baptist Church,and PISD Bryant Elementary School.(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 21. Conduct a public hearing and consider and act upon a request to rezone 7.9±acres from Office (O)to Planned Development- Office (PD-O),generally to modify the development standards to facilitate an office/retail development,including drive- through coffee shop as a permitted use,located on the northwest corner of Preston Road and Coleman Road.(Z21- 0013).(DS) Agenda Item 22. Conduct a public hearing and consider and act upon a request to rezone 5.6±acres from PD-21 and Single Family-15 (SF-15) to a new Planned Development-Office/Retail (PD-O/R)for office and retail uses,located on the west side of Preston Road north of Broadway Street.(Z22-0014).(DS) Agenda Item 23. Conduct a public hearing and consider and act upon a request to rezone 11.3+-acres of Commercial (C)to Planned Development-Commercial (PD-C)to allow uses such as luxury office/warehouse,automobile storage,and recreational vehicle parking,located on the west side of Coleman Street, south of Prosper Trail.(Z22-0008).(DS) Agenda Item 24. Conduct a public hearing and consider and act upon a request for a Specific Use Permit (SUP)for a Private Street Development,on 16.4±acres,located on the south side of First Street,east of Coit Road (S22-0008).(DS) Conditional Development Standards outlined in Chapter 3 Conditional Development Standards outlined in Chapter 3 Agenda Item 25. Consider and act upon an ordinance adopting the fiscal year (FY)2022-2023 Annual Budget and Capital Improvement Program for the fiscal year beginning October 1,2022 and ending September 30,2023.(RBS) 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 83 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 84 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 approx. $7.8 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.85 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. 86 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… 87 Initial Capital Dedicated Levy (CDL) $7,780,485 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 CDL TO BE ALLOCATED $4,530,485 88 NOTE:Remaining Capital Dedicated not used for cost overruns will be programed in November by Council CDL 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 89 ➢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 90 ➢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 91 92 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 93 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% 94 **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 95 $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 96 $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 97 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 Levy not used for cost overruns will be programed in November 98 Agenda Item 26. Conduct a public hearing to consider and discuss a proposal to adopt a tax rate of $0.51 per $100 valuation.Consider and act upon an ordinance adopting the Town of Prosper 2022 Property Tax Rate.(RBS) Agenda Item 27. Make a motion to ratify the property tax increase in the budget for fiscal year 2022-2023.(RBS) Agenda Item 28. Consider and act upon an ordinance amending Article 1.04, “Boards,Commissions and Committee,”of Chapter 1, “General Provisions,”of the Code of Ordinances establishing the Community Engagement Committee as a standing advisory committee to the Town Council.(RB) CEC Scope and Purpose Established for the purpose of providing residents an opportunity to enhance the Town’s interaction with the public.The Community Engagement Committee shall: •Act in an advisory capacity to the Town Council regarding Community Engagement activities •Identify topics of interest and methods or techniques to improve community engagement •Evaluate,provide feedback,and make recommendations on selected Town programs,events, and activities •Serve as a focus group for selected pilot projects or programs that may require or benefit from public input before implementation •Serve as social media ambassadors for the Town by engaging with the Town’s social media platforms •Inform the Committee membership of community events that may be of interest to the Town Council (multicultural celebrations,large neighborhood events,nonprofit events,etc.) •9/15 New Resident Mixer •9/24 Moonlight Movie Special Projects •Downtown Master Plan Focus Group •Town Logo Review and Recommendations •Communications Plan Review and Recommendations •Attendance, Feedback and Recommendations on Town events Current CEC Structure •Ad Hoc Advisory Committee •Eleven members •Chair and Vice-Chair Proposed CEC Structure •Eleven members •Chair and Vice-Chair selected annually by Committee members •2-year Staggered Terms start October 1,2022 •Eligibility,Application,and Appointment Process follows the Town’s Board &Commission Appointment Policy Possibly direct Town Staff to schedule topic(s) for discussion at a future meeting. Agenda Item 29. Discuss update to the Thoroughfare Plan.(HW) Teel Parkway Coleman and First Street DNT Collector With Frontier Park Access Alternative Agenda Item 30. Discussion regarding a potential Capital Improvements Sub- Committee.(RKP) 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 thereto. Section 551.074 -To discuss appointments to the Board of Adjustment/Construction Board of Appeals,Parks &Recreation Board,Library Board,Prosper Economic Development Corporation Board,Planning &Zoning Commission,and the Community Engagement Committee,and all matters incident and related thereto. Section 551.071 -To consult with the Town Attorney to address legal issues associated with board and commission member terms of office,and all matters incident and related thereto. 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