11.13.2017 SPD PacketPage 1 of 1
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Prosper is a place where everyone matters.
1. Call to Order/Roll Call.
2. Approve Minutes form the November 6, 2017, Special Purpose District Committee
meeting.
3. Follow up items from previous meeting.
4. Review sales tax analysis prepared by Impact DataSource, LLC.
5. Presentation from Streets, Library, and Parks operational and growth projections along
with PROS and CONS for each Street Maintenance, Library District, 4B Economic
Development, and Sports and Community Venue Special Purpose District.
6. Adjournment.
CERTIFICATION
I, the undersigned authority, do hereby certify that this Notice of Meeting was posted at Prosper Town Hall,
located at 121 W. Broadway Street, Prosper, Texas 75078, a place convenient and readily accessible to
the general public at all times, and said Notice was posted on October 27, by 5:00 p.m., and remained so
posted at least 72 hours before said meeting was convened.
_______________________________ _________________________
Robyn, Battle, Town Secretary Date Noticed Removed
Pursuant to Section 551.071 of the Texas Government Code, the Town Council reserves the right to consult
in closed session with its attorney and to receive legal advice regarding any item listed on this agenda.
NOTICE OF ASSISTANCE AT PUBLIC MEETINGS: The Town Hall Annex is wheelchair accessible. For
special services or assistance, please contact the Town Secretary’s Office at (972) 569-1011 at least 48
hours prior to the meeting time.
AGENDA
Special Purpose District Committee
Prosper Fire Station #2
1140 S Teel Parkway
Prosper, TX 75078
Monday, November 13, 2017
6:00 p.m.
Page 1 of 2
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Prosper is a place where everyone matters.
1. Call to Order/Roll Call.
The meeting was called to order at 6:01 p.m.
Committee Members in Attendance:
Curry Vogelsang
David Bristol
Bob Goldman
Chris Kern
Irene Peterson
Sara Peterson
Ken Seguin
Staff Members Present:
Kelly Neal, Finance Director
Doug Kowalski, Police Chief
Stuart Blasingame, Fire Chief
2. Approve Minutes from the October 30, 2017, Special Purpose District Committee Meeting.
Ken Seguin made a motion to approve the minutes as corrected and David Bristol seconded the
motion to approve the corrected minutes from the October 30, 2017, Special Purpose District
Committee meeting. The motion was approved.
3. Follow up items from previous meeting.
Staff presented information and answers to outstanding items from last meeting. Staff was
requested to send the members the 1999 Ballot and Ordinance establishing the 4A Prosper
Economic Development Corporation.
4. Review sales tax analysis prepared by Impact DataSource, LLC.
Staff presented the sales tax analysis report prepared by Impact DataSource, LLC. Discussion
followed. Committee requested that staff follow up with the consultant on requests on additional
data points. This report will be on next week’s agenda for further review.
5. Fire and Police departments present operational and growth projections along with the
PROS and CONS for each Fire and Crime Special Purpose District.
The Fire and Police Chiefs presented the Committee members with their current operations
and projected fiscal impact over the next 5 years for growth. Service levels, staffing and
equipment needs were discussed. Discussion of benchmarked cities are used as a model for
determining adequate staffing levels.
MINUTES
Special Purpose District Committee
Prosper Fire Station # 2
1140 S Teel Parkway
Prosper, TX 75078
Monday, November 6, 2017
Page 2 of 2
6. Adjournment.
The meeting was adjourned at 8:00 p.m. on Monday, November 6, 2017.
APPROVED:
Curry Vogelsang, Chairman
ATTEST:
Kelly Neal, Finance Director
SPECIAL PURPOSE DISTRICT COMMITTEE
NOVEMBER 13, 2017
Purpose of Committee
The Town Council has created and appointed seven members selected to serve on newly-created
committee to review options available for a portion of the Town’s local sales tax.The committee
will study options available with the creation of a Special Purpose District that could designate a
portion of the Town’s local sales tax revenue.
Upon completion of the meetings, the committee will make a recommendation to the Town
Council.Since a change in the Town’s sales tax designation would require voter approval, the Town
Council will decide whether to call an election to be held in May 2018 to formally create the Special
Purpose District.
Mayor Pro -Tem Curry Vogelsang will serve as the Committee Chairman.Curry may be reached at
curry_vogelsang@prospertx.gov
The Town’s Finance Director, Kelly Neal, will be the staff liaison for this committee.Kelly may be
reached at kelly_neal@prospertx.gov or 972-569-1019.
Thank you for your willingness to serve your community.
NOVEMBER 13, 2017
Question from Committee
Who was on the Town Council in 1994 with the original resolution to call for the election occurred?
Mayor Smothermon,
Councilmembers:
Don Brown
Ralph Boyer
Mike Dalton
Stephen Coffman
Bill Crosswhite
NOVEMBER 13, 2017
SALES TAX HISTORY
FOLLOW –UP ITEMS
NOVEMBER 13, 2017
Town of Prosper’s 1.5% General
Fund Sales and Use Tax History
NOVEMBER 13, 2017
Sales Tax Update
The Town received a distribution for the month of November 2017 from the State Comptroller’s office for $583,848 for the General Fund. This is
an increase of 20.95% or $101,128 from the November collections last year. The Town's General Fund budget for sales tax revenue for FY2017-
2018 is $6,142,420. Total sales tax receipts for FY 2016-2017 were $5,071,127.
$ Amount % of Change FY 15/16 FY 16/17 FY 17/18 Inc /(Dec) Inc /(Dec)
November $346,237 $482,720 $583,848 $101,128 20.95%
FYTD $649,804 $847,890 $1,040,928 $193,038 22.77%
NOVEMBER 13, 2017
365,170
482,720
356,791 340,339
471,983
378,445 389,290
556,356
419,673 435,852
502,980
371,528
303,567
346,237 316,820
286,738
361,510
325,558
272,465
351,322
306,251
324,032
435,092
366,913
241,906 275,338 287,946
214,288
281,586
205,338
208,598
241,666 247,761 248,119
373,207
298,493
457,080
583,848
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
Oct Nov Dec Jan Feb March Apr May Jun Jul Aug Sept
Town of Prosper's 1.5% General Fund Sales
Tax History for Past 6 Years
and Current for FY 17-18
FY16-17 Total FY15-16 Total
FY14-15 Total FY13-14 Total
FY12-13 Total FY11-12 Total
FY17-18 Total
Town of Prosper’s 1.5% General
Fund Sales and Use Tax History
Oct Nov Dec Jan Feb March Apr May Jun Jul Aug Sept Period Totals Annual Tls
FY17-18 Total 457,080 583,848
FY16-17 Total 365,170 482,720 356,791 340,339 471,983 378,445 389,290 556,356 419,673 435,852 502,980 371,528 847,890 5,071,127
FY15-16 Total 303,567 346,237 316,820 286,738 361,510 325,558 272,465 351,322 306,251 324,032 435,092 366,913 649,804 3,996,504
FY14-15 Total 241,906 275,338 287,946 214,288 281,586 205,338 208,598 241,666 247,761 248,119 373,207 298,493 517,244 3,124,246
FY13-14 Total 242,827 219,874 201,982 184,440 210,441 194,302 210,820 255,442 260,049 233,973 278,529 302,744 462,701 2,795,423
FY12-13 Total 201,980 214,547 216,749 178,380 191,529 142,790 166,748 218,933 204,614 231,009 472,806 311,030 416,527 2,751,115
FY11-12 Total 151,482 124,331 116,403 152,805 116,791 139,896 160,654 161,053 169,498 188,574 191,388 265,044 275,813 1,937,919
1,040,928
NOVEMBER 13, 2017
Sales Tax Analysis prepared by Impact DataSource, LLC
Prosper and Prosper EDC collected $5.0M and $1.6M
respectively in sales and use tax in 2017.
Prosper Planning Dept. estimated citizen population growth
for the Town:
◦FY 2018 –12%
◦FY 2019 –10%
◦FY 2020 –10%, and
◦FY 2021-2022 –8%
Estimated 36.3% of taxable sales in the Town were made by Prosper
residents and 63.7%were non-residents.
NOVEMBER 13, 2017
Sales Tax Analysis prepared by Impact DataSource, LLC
NOVEMBER 13, 2017
Implementation of SPD would not be effective until FY 2019 based on law.
Projected Sales and Use Tax revenue based on FY 2017-2018 Adopted Financial Plan.
Fiscal Year Town EDC SPD %of
Growth
2018 $6,165,834 $2,047,473 $-
2019 $5,266,313 $2,633,157 $2,633,157 28.61%
2020 $6,537,647 $3,268,823 $3,268,823 24.14%
2021 $7,805,360 $3,902,680 $3,902,680 19.39%
2022 $9,174,491 $4,587,246 $4,587,246 17.54%
2023 $9,908,451 $4,954,225 $4,954,225 8.00%
2024 $10,701,127 $5,350,563 $5,350,563 8.00%
Sales Tax Analysis prepared by Impact DataSource, LLC
NOVEMBER 13, 2017
Q&A:
Question: Does the retail marketplace profile back into the actual revenue
the Town has seen and relates to budget?
Answer: No. The Esri retail marketplace profile supply information uses
national data sources and may not reflect actual sales tax revenue that the
Town has seen in its budget.
On supply information, according to an Esri explanation of data sources for
2014 which would be similar to 2017 sources.
Sales Tax Analysis prepared by Impact DataSource, LLC
NOVEMBER 13, 2017
Q & A:
Question: Is the 2017 ESRI report a rolling 12 months of data?
Answer: No, ESRI market place data appears to be based on some actual data
and projections for 2017 from various national sources.
Sales Tax Analysis prepared by Impact DataSource, LLC
NOVEMBER 13, 2017
Market Supply (Retail Sales)
Estimates of retail sales begin with the benchmark, the 2002 and 2007 CRT from the US
Census Bureau.Trends from the economic censuses are used to update the base along
with Esri's extensive portfolio of demographic and business databases. These include
commercial and government sources such as the Dun & Bradstreet business database and
economic statistics from the Bureau of Labor Statistics. Supply estimates also incorporate
data from the Census Bureau's Nonemployer Statistics (NES) division. Smaller
establishments without payrolls, such as self-employed individuals and unincorporated
businesses, account for a small portion of overall sales. However, these businesses
represent more than half of all retailers in the United States. Their inclusion completes the
report of industry sales.
Esri's model captures economic change by first differentiating employer and nonemployer
sales growth. Multivariate statistical techniques are used to model data that is subject to
disclosure issues in CRT and NES. Sales estimates have been recalibrated against the
Monthly Retail Trade (MRT) survey and independent sources to address the disparities
that can exist between independent input data sources. This methodological improvement
yields a more precise estimate of the retail sales attributable only to domestic households.
Sales Tax Analysis prepared by Impact DataSource, LLC
NOVEMBER 13, 2017
Market Supply (Retail Sales) continued
Esri licenses Dun & Bradstreet's business database, which also provides sales for the retail
market. Although Esri utilizes this database in the derivation of small-area estimates, the
methods differ. Esri estimates retail sales only to households for implementation within
the Retail MarketPlace data. Additionally, Esri relies heavily on data from both the CRT
and MRT to improve estimation. Furthermore, the Dun & Bradstreet business data file is
reviewed and cleaned to improve data content.
All estimates of market supply are in nominal terms and are derived from receipts (net of
sales taxes,refunds,and returns)of businesses that are primarily engaged in the retailing
of merchandise.Excise taxes paid by the retailer or the remuneration of services are also
included,foes that are incidental to the transaction.
Sales Tax Analysis prepared by Impact DataSource, LLC
NOVEMBER 13, 2017
Market Demand (Retail Potential)
To complete the profile of a retail market, Esri estimates consumer
demand, or retail potential. That is the amount expected to be spent
by consumers on products in the retail market. Esri's 2014 consumer
spending data provides expenditure estimates for more than 700
products and services consumed by US households.
Esri draws estimates of consumer spending from the Bureau of
Labor Statistics' annual Consumer Expenditure Surveys, which
provide consumer spending information for hundreds of goods and
services by households but not by source. The 2014 consumer
spending model incorporates Esri's new generation of the Tapestry™
Segmentation system.
This yields improved differentiation of spending, particularly for smaller
markets where distinctions can be difficult to measure and for big-ticket
items where consumer preferences are more pronounced.
Follow up from Fire/Crime
Special Purpose Districts
NOVEMBER 13, 2017
Administration:
SPD TIMELINE:
January 9 APPOINTMENT OF A SEVEN MEMBER TEMPORARY BOARD
No later than the 60th day after the day the governing body proposes to
create a district under this chapter, the governing body shall appoint seven
persons to serve as temporary directors of the district.
January –February TEMPORARY BOARD MEETING HELD TO ORGANIZE THE BOARD
Not later than the 75th day after the date the governing body proposes to create
the district, the temporary board shall conduct a meeting to organize the board.
Elect presiding officer of the board.
Follow up from Fire/Crime
Special Purpose Districts
NOVEMBER 13, 2017
SPD TIMELINE:
January –February 13 ADOPT PLANS
•Confirmation election on after the board adopts a plans
•Two year plan
•Detailed list of strategies to be supported by the district
•Method of evaluating effectiveness and efficiency of strategies each year
•Including budget plan
o Two year plan
o Amount of money budgeted by the district for the strategies
o Amount of money budgeted for total district and %of budget for
administration
o Estimated amount of money available from all sources during subsequent
year
o Account balances expected at the end of the years of which budget is
prepared
o Estimated tax rate that will be required to support the budget
Follow up from Fire/Crime
Special Purpose Districts
NOVEMBER 13, 2017
SPD TIMELINE:
January –February 13 CREATE PROPOSITION LANGUAGE
•Ballot for an election shall be printed to permit voting for or against the
proposition.
•The Town Council,by resolution,shall appoint the Town Council as the permanent
board of directors of the district,if the appointment is approved by the voters in a
creation election,so that the wording would also need to be part of the election
ballot language.
Follow up from Fire/Crime
Special Purpose Districts
NOVEMBER 13, 2017
SPD TIMELINE:
ON OR BEFORE February 13 CALL AN ELECTION
•After plans are adopted
•Election order must include:
•Nature of the election,including proposition that is to appear on the
ballot
•Date of the election
•Hours during which polls will be open
•Location of polling places
•Summary of the proposed district’s budget plan
•Proposed rate of the sales and use tax for the district (1/8,¼,3/8 or
½of one percent)
Follow up from Fire/Crime
Special Purpose Districts
NOVEMBER 13, 2017
SPD TIMELINE:
ON OR PRIOR TO MARCH 31 PUBLISH FIRST NOTICE OF ELECTION,AND AGAIN ON
WEEK LATER
•In addition to election code requirements (Section 4.003 (c)
•Temporary board shall publish a substantial copy of the election
order in a newspaper with general circulation in the proposed district
once a week for two consecutive weeks.The first publication must
appear before the 35th day before the date set for the election.
May 5,2018 ELECTION HELD
•Election shall be held on the next uniform election date authorized by Section
41.001 (a),Election code after the date on which the election is ordered that
affords sufficient time for election procedures to be carried out.
Follow up from Fire/Crime
Special Purpose Districts
NOVEMBER 13, 2017
SPD TIMELINE:
May 7-May 18 CANVASS RETURNS
Not earlier than the second day and not later than the 13th day after the date of the
election, the temporary board shall meet and canvass the returns of the election.
AT MEETING TO CANVASS RETURNS ISSUE AN ORDER DECLARING THE
DISTRICT CREATED
OR
May 5, 2018 or later ORDER ANOTHER ELECTION ON THE MATTER
Not earlier than the first anniversary of the date of the preceding election
Follow up from Fire/Crime
Special Purpose Districts
NOVEMBER 13, 2017
SPD TIMELINE:
DISSOLUTION OF TEMPARY BOARD
If District has not been created by the 5th anniversary of the date the governing body
first proposed the district, the temporary board is dissolved on that date and the
proposed district may not be created.
Follow up from Fire/Crime
Special Purpose Districts
NOVEMBER 13, 2017
BUDGET ADOPTION PROCEDURES:
Plans under this section must be adopted in the same manner as provided for
adoption of the proposed annual budget under section 344.204 unless the board
holds at least one public hearing on alternative procedures before adopting
alternative procedures.
344.204 rules include the following:
Not later than 100th day before the date each fiscal year begins, the
board shall hold a public hearing to consider the plan.
Publish notice of public hearing in a newspaper with general circulation
in the district not later than the 10th day before the date of the hearing.
Not later than the 80th day before the date of the fiscal year begins, the
board shall adopt a budget.
Not later than the 10th day after the date the budget is adopted, the
board shall submit the budget to the Town Council.
Library District Sales Tax
PCL Collection:
15,188 Physical items
23,674 Overdrive electronic items
Stats from FY17:
32,275 physical items checked out
83 Meetings with 375 attendance
75 Programs with 4,595 attendance
Prosper Community Library
Consistent Texas State Library Accreditation awarded
Collin County Grant award decreased each year –less support from commissioners for county financially supporting
libraries. Denton county offers no financial assistance.
Prosper Community Library budget is funded solely by the general fund
FY17 Actual Budget $197,57
FY18 Adopted Budget $470,979 (Including New Library Facility Personnel)
January February March April May June July August September October November December
2014 1628 2315 2064 1603 1589 1821 1205
2015 1427 1078 1256 1112 1472 2743 3457 2198 1669 1943 1767 1193
2016 1443 1565 1707 1626 1645 3346 3801 3401 2688 3086 2519 2215
2017 2275 2313 2307 2318 2737 5407 5442 3878 3148 3333
0
1000
2000
3000
4000
5000
6000
2014 2015 2016 2017
Consistent growth in usage
and stable pattern of use
Circulation
0 0 0 0
1021
1325 1305
885
1029
1187
736
613644
536
855
672 729
1231
1514
962
664
1351
763
623654685661654650
1674
1570
1333
804
993
1161
719796
937 951 887 938
2569
1933
1288
996 1007
0
500
1000
1500
2000
2500
3000
January February March April May June July August September October November December
2014 2015 2016 2017
Card Holders
Steady growth with
peaks during summer
Libraries throughout Texas have a great divide in budget, financial resources and opportunities,
support, and municipality populations, which greatly limit interlocal agreements. The majority of
Texas libraries are independent of each other.
Residents of communities are educated and aware of where their tax funds go and do not want to
support entities outside of their specific municipality.
Middle to small libraries do not maintain branches to appear multi-jurisdictional. Even large city
library systems are only in partnership with their own library branches.
Sec. 326.002. PURPOSE. The purpose of a library district is
to establish, equip, and maintain one or more public libraries
for the dissemination of general information relating to the
arts, sciences, and literature.
Prosper Community Library does this independently of a
district.
LIBRARY SPECIAL PURPOSE DISTRICT
Purpose: To establish, equipment, and maintain one or more public libraries for the dissemination of general
information relating to the arts, sciences, and literature.
Term : The district can be created and no term limits are established in the Chapter 326 of the local government code
for a Library Special Purpose District.
Percent of Sales and Use Tax Options: 0.125%, 0.25%, 0.375%, or 0.5%
Amount of Current Revenue vs. Expenditures: 0.50% Sales and Use Tax will produce $2,055,278 in current fiscal year
revenue compared to the Library Department’s budget of $470,979.
PROPOSITION BALLOT LANGUAGE: THE CREATION OF THE TOWN OF PROSPER LIBRARY DISTRICT AND ADOPTION OF
A LOCAL SALES AND USE TAX IN THE TOWN OF PROSPER AT THE RATE OF ONE-HALF OF ONE PERCENT TO PROVIDE
REVENUE FOR THE DISTRICT, AND THE REPEAL OF THE ADDITIONAL SALES AND USE TAX WITHIN THE TOWN OF
PROSPER AT THE RATE OF ONE-HALF OF ONE PERCENT USED TO REDUCE THE PROPERTY TAX RATE.
LIBRARY SPECIAL PURPOSE DISTRICT
Effective Date: October 1, 2018
Administration: A district shall be governed by a board of five trustees. Voter requirement within the
district to be a trustee. Trustees shall serve two-year terms. Under Chapter 41, Election code; a general
election for trustees shall be held annually on an authorized uniform election. Except for the initial members
of the board of trustees, a candidate for the office of trustee must file an application for a place on the
ballot. Board shall adopt bylaws to govern, employ any person, firm or corporation to conduct the affairs of
the district.
General Powers of District: A library district has all of the powers, authority, rights, and duties that will
permit the accomplishment of the purposes for which the district was created, including the power to
borrow money, purchase, construct, acquire, own, operate, maintain, repair, or improve land, works,
materials, supplies, improvements, facilities, equipment, vehicles, machinery, or appliances.
LIBRARY SPECIAL PURPOSE DISTRICT
Pros:
1.) The Town can accelerate the construction of the stand alone library.
2.) The Town can use cash for the construction of the stand alone library instead of debt.
Cons:
1.) As the Town prepares for the large mulit-million dollar capital expenditures associated with a library, a reserve
balance will be produced.
2.) The funds will be used for something other than existing reoccurring items in the budget which will cause the Town
to have to look for sources of new revenue or reduce the General Fund budget.
3.) At some point, we will fund all of the needed capital items lirary and produce a reserve balance.
4.) With the pending opening of the Town Hall/Multi-Purpose Facility, the community is not ready for a stand alone
library.
STREET DIVISION PERSONNEL PROJECTIONS
Fiscal Year Total
2016-2017 3
2017-2018 5
2018-2019 7
2019-2020 9
2020-2021 11
2021-2022 13
FACILITIES
Current and Ongoing Description
Current
601 W. Fifth Street
Public Works Facility
Temporary Structure
Initially intended for use 2014-2022
Permanent
Location –Proposed Cook Lane
Public Works and Parks Shared Facility
Purchase of additional land FY2017-2018
Design will begin in 2020.
PUBLIC WORKS FACILITY
CURRENT ANTICIPATED
STREET DIVISION
NECESSARY EXPENSES
•STREET MAINTENANCE
•STREET SIGNS AND MARKINGS
•SIDEWALK MAINTENANCE
•STREET LIGHTING
•TRAFFIC SIGNALS
•RIGHT-OF-WAY MOWING
BUDGET OVERVIEW
FY2015-2016 FY2016-2017 FY2017-2018 FY2018-2019 FY2019-2020 FY2020-2021 FY2021-2022
General Fund $3,158,921.00 $3,523,253.00 $3,070,913.00 $1,063,821.00 $1,075,995.00 $1,088,819.00 $1,102,346.00
Street
Improvements
5 Projects
$2,880,662.00
4 Projects
$1,890,000.00
7 Projects
$3,755,000.00
6 Projects
$2,930,000.00
5 Projects
$1,088,819.00 TBD TBD
Total Budget $6,039,583.00 $5,413,253.00 $6,825,913.00 $3,993,821.00 $3,175,995.00 $1,088,819.00 $1,102,346.00
*Note –Major street repairs have not yet been determined for FY2018-2022, thus have not been included in the General Fund amounts noted above.
Purpose:
Financing only the operation of the maintenance and repair of existing streets and sidewalks on the date of
election.
Term:
This sales and use tax can be created for an initial term of four years and reauthorized for 4, 8, or 10-year
terms. This sales and use tax is dissolved four years after the date the municipality began to impose taxes
unless a continuation or dissolution referendum is held.
Percent of Sales and Use Tax Options:
0.125%, 0.25%, 0.375%, or 0.5%
STREET DIVISION
STREET DIVISION
Amount of Current Revenue vs. Expenditures:
0.5% Sales and Use Tax will produce $2,055,278 in current fiscal year revenue compared to the Street
Maintenance budget of $3,070,913.00.
Proposition Ballot Language:
The adoption of a local sales and use tax in the Town of Prosper at the rate of one-half of one percent to
provide revenue for maintenance and repair of municipal streets, and the repeal of the additional sales and
use tax within the Town of Prosper at the rate of one-half of one percent used to reduce the property tax rate.
Effective Date:
October 1, 2018
Administration:
No board is required to be created to administer such district. The governing body has the authorization to
establish district, tax rate, and rate change.
STREET DIVISION
Pros:
The Town can accelerate the replacement of streets in the downtown area.
The Town may use cash to replace streets as an alternative to utilizing a combination of cash and debt
financing.
STREET DIVISION
Cons:
The funds may not be used to construct new streets.
The Lion’s share of the Town’s street construction activities involve constructing new streets.
The available revenue would be greater than the projected expenditures for the next 20 years and would
produce a reserve balance.
The funds will be used for items that are not currently listed in the current budget, causing the exploration of
new sources of revenue or a reduction of the General Fund Budget.
QUESTIONS?
Parks and Recreation
0
100
200
300
400
500
600
700
Park Land
20102005 202520152020 2030Acres
Park land projections based on 2015
Parks, Recreation and Open Space
Master Plan
$0.00$2,000,000.00$4,000,000.00$6,000,000.00$8,000,000.00$10,000,000.00$12,000,000.00$14,000,000.00$16,000,000.00
Project cost Funds Available
FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY2020-21 FY 2021-22 FY 2022-23
Total Cost of
projects 10,510,815 2,088,524 2,802,757 3,116,024 2,674,757 2,135,524 15,000,000
Funding available 10,510,815 2,088,524 1,712,757 2,984,024 230,024 1,235,524 0
Balance 0 0 (1,090,000)(132,000)(2,444,733)(900,000)(15,000,000)
Does not include:
•Park Operations Center
•Sr. Center
•Recreation Center
Capital Projects
4B Special Purpose District
Section 4B corporations may provide:
Land, buildings, equipment, facilities, expenditures, targeted infrastructure, and
improvements (one or more) that are for the creation or retention of primary jobs and
that are found by the board of directors to be required or suitable for the development,
retention, or expansion of:
(a) manufacturing and industrial facilities;
(b) research and development facilities,
(c) military facilities, including closed or realigned military bases;
(d) transportation facilities (including but not limited to airports, ports, mass-
commuting facilities, and parking facilities)
(e) sewage or solid waste disposal facilities;
(f) recycling facilities;
(g) air or water pollution control facilities;
(h) distribution centers, small warehouse facilities capable of serving as decentralized
storage and distribution centers;
(i) primary job training facilities for use by institutions of higher education;
and
(j) regional or national corporate headquarters facilities.
Section 4B corporations may provide :
Land, buildings, equipment, facilities, and improvements found by the board of
directors to promote or develop new or expanded business enterprises that create
or retain primary jobs, including a project to provide
(a) public safety facilities;
(b) streets and roads;
(c) Drainage and related improvements;
(d) demolition of existing structures;
(e) General municipally owned improvements; and
(f) any improvements or facilities that are related to any of those projects
and any other project that the board in its discretion determines promotes
or develops new or expanded business enterprises that create or retain
primary jobs.
Not all section 4B projects are required to create or retain
primary jobs. The following section 4B projects are not
required to create or retain primary jobs:
(a) job training classes;
(b) certain targeted infrastructure projects necessary to promote or develop new or
expanded business enterprises, limited to streets and roads, rail spurs, water and
sewer utilities, and electric utilities, gas utilities, drainage, site improvements, and
related improvements, telecommunications and Internet improvements, and beach
remediation along the Gulf of Mexico;
(c)land, buildings, equipment, facilities, and expenditures required or suitable for a
career center not located within the taxing jurisdiction of a junior college;
(d) projects consisting of professional and amateur (including children's) sports,
athletic, entertainment, tourist, convention, and public park purposes and events;
(e) affordable housing projects;
(f) water supply facilities projects, with the requisite voter approval;
and
(g)water conservation programs, with the requisite voter approval
ECONOMIC DEVELOPMENT 4B SPECIAL PURPOSE DISTRICT
Purpose:A Type B corporation has the powers to contract with Private Corporation,
promotional use,and incur debt.Various economic projects that are authorized under
Chapter 505 of the Local Government Code.
Term :A 4B sales tax funding source approved by voters does not have a limit on its duration
and is effective until repealed by an election.
Percent of Sales and Use Tax Options:0.125%,0.25%,0.375%,or 0.5%
Amount of Current Revenue vs.Expenditures:0.50%Sales and Use Tax will produce
$2,055,278 in current fiscal year revenue compared to the Park Department’s capital needs
of $2,088,524.
PROPOSITION BALLOT LANGUAGE:SHALL THE TOWN COUNCIL OF THE TOWN OF PROSPER
BE AUTHORIZED TO ADOPT THE TYPE B ECONOMIC DEVELOPMENT SALES AND USE TAX
WITHIN THE TOWN AT THE RATE OF ONE-HALF OF ONE PERCENT,AUTHORIZED BY CHAPTERS
501 AND 505 OF THE TEXAS LOCAL GOVERNMENT CODE,FOR [insert purposes here ],AND
THE REPEAL OF THE ADDITIONAL SALES AND USE TAX WITHIN THE TOWN OF PROSPER AT
THE RATE OF ONE-HALF OF ONE PERCENT USED TO REDUCE THE PROPERTY TAX RATE .
Effective Date :October 1,2018
Administration:Creation of a board of directors that consists of seven directors.
A director may be appointed by the governing body for a two year term.
Director must be a resident of the municipality.A type B corporation projects is
required to be published 60 days prior to expending any 4B funds.A public
hearing is required prior to expending any 4B funds.
Pros:
1.The Town can accelerate the construction of the park infrastructure that is identified on the
Park Master Plan
2.The Town can use cash for the construction of the park infrastructure instead of debt.
Cons:
1.As the Town prepares for large mulit-million dollar capital expenditures, a reserve balance will
be produced.
2.This will be an additional funding source to the Park Dedication and Park Development Fees.
3.The funds will be used for something other than existing reoccurring items in the budget which
will cause the Town to have to look for sources of new revenue or reduce the General Fund
budget.
4.At some point, we will fund all of the needed capital items in the Parks Master Plan and
produce a reserve balance.
5.The Town has already been given this authority in the 1999 sales and use tax election.
SPORTS AND COMMUNITY VENUE
SPECIAL PURPOSE DISTRICT
SPORTS AND COMMUNITY VENUE SPECIAL PURPOSE DISTRICT
Purpose:To establish means to fund a sports and community venue project that has been
approved by the voters of a municipality or county.Venue means:arena,coliseum,stadium,or
other type of area or facility used for one or more professional or amateur sports events,
community events,or other sports events,including rodeos,livestock shows,expositions,and
other civic or charitable events for which admission is charged.Convention center,civic center
hotel,theater,opera house,music hall,park,museum,aquarium owned by the municipality.
Term :The district applies to a municipality with a population of more than 1.9 million to create
a sports and community venue district or has a population of at least 176,000 that border the
Rio Grande,and that approved a sports and community venue project before January 1,2009.
Percent of Sales and Use Tax Options:0.125%,0.25%,0.375%,or 0.5%
Amount of Current Revenue vs.Expenditures:0.50%Sales and Use Tax will produce
$2,055,278 in current fiscal year revenue compared to the Park Department’s capital needs of
$2,088,524.
PROPOSITION BALLOT LANGUAGE:AUTHORIZING TO (INSERT DESCRIPTION OF VENUE PROJECT)AND TO
AUTHORIZE THE USE OF EXISTING LOCAL SALES AND USE TAX IN THE TOWN OF PROSPER AT THE RATE OF ONE-
HALF OF ONE PERCENT FOR THE PURPOSE OF FINANCING THE VENUE PROJECT,AND THE REPEAL OF THE
ADDITIONAL SALES AND USE TAX WITHIN THE TOWN OF PROSPER AT THE RATE OF ONE-HALF OF ONE PERCENT
USED TO REDUCE THE PROPERTY TAX RATE .
Effective Date:October 1,2018
Administration:If the comptroller determines that the implantation of the resolution will not have
a significant negative fiscal impact on state revenue.
Order calling the election must:
•Allow the voters to vote separately on each venue project;
•Designate the venue project;
•Designate each method of financing authorized by Chapter 334 of the Local Government Code
that the municipality wants to use to finance the project and the maximum rate of each
method;
•Allow the voters to vote in the same proposition or in a separate proposition,on each method
of financing authorized and the maximum rate of each method.
Pros:
1.The district can be used to fund expensive sports or community venue projects.
2.The Town can use cash for the construction of these items instead of debt.
Cons:
1.The Town does not qualify for this type of district.
QUESTIONS ?