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2020-61 - OTOWN OF PROSPER, TEXAS ORDINANCE NO.2020-61 ORDINANCE BY THE TOWN COUNCIL OF THE TOWN OF PROSPER, TEXAS, CALLING A BOND ELECTION TO BE HELD WITHIN THE TOWN; MAKING PROVISION FOR THE CONDUCT OF THE ELECTION; AND CONTAINING OTHER PROVISIONS INCIDENTAL THERETO THE STATE OF TEXAS § COUNTIES OF COLLIN AND DENTON § TOWN OF PROSPER § WHEREAS, this Town Council of the Town of Prosper, Texas (the "Town") deems it advisable to call the election hereinafter ordered; and WHEREAS, it is hereby officially found and determined that holding the hereinafter called election on the date set forth below is in the public interest; and that the meeting was open to the public, and public notice of the time, place and purpose of the meeting was given, all as required by Chapter 551, Texas Government Code. BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF PROSPER, TEXAS: Section 1. Incorporation of Preambles. The statements contained in the preamble of this ordinance (the "Ordinance") are true and correct and are hereby adopted as findings of fact and as a part of the operative provisions hereof. Section 2. Election Called. A special bond election shall be held in the Town between the hours of 7:00 A.M. and 7:00 P.M. on November 3, 2020 (the "Election"), at the designated polling places for residents of the Town who reside in Collin County and Denton County, as set forth in Exhibit A hereto. Exhibit A shall be automatically modified without further action of the Town Council to include additional or different Election Day polling places designated by the respective County and/or the Election Administrator, and to conform to the Collin County Election Services Agreement and the Denton County Election Services Agreement, as applicable; the notices of the Election shall be conformed to such final list. Section 3. Earl: Voting Locations and Times. Early voting by personal appearance shall be available for Town residents of Collin County and Denton County at all locations and times established by the Collin County Election Administrator pursuant to the Collin County Election Services Agreement and as established by the Denton County Election Administrator pursuant to the Denton County Election Services Agreement, as set forth in Exhibit B hereto. Exhibit B shall be automatically modified without further action of the Town Council to include additional or different early voting polling places and times designated by the respective Counties, and to conform to the respective Election Services Agreement; the notices of the Election shall be conformed to such final lists provided to the Town by the respective Counties and/or the respective Election Administrator. Section 4. Collin County Early Voting Clerk and Application for Ballot. The Early Voting Clerk for voting for Collin County residents of the Town shall be Bruce R. Sherbet, the Collin County Election Officer. Applications for early voting for all residents of the Town should be sent to the following address: By Regular Mail By Fax() By Common or Contract Carrier Bruce R. Sherbet Bruce R. Sherbet Collin County Elections (972) 547-1914 Collin County Elections Department Department 2010 Redbud Blvd., Suite 102 2010 Redbud Blvd., Suite 102 McKinney, TX 75069 McKinney, TX 75069 By email('): clection@collincountytx.gov k I' If an application is sent by fax or email, the original must still be mailed to address shown above for Regular Mail. For an application submitted by fax or email to be effective, the original copy of the application must be mailed and received in the Elections Office by the fourth business day after it was faxed or emailed. section 9. Denton County Early Voting Clerk and Application for Ballot. The Early Voting Clerk for voting for Denton County residents of the Town shall be Frank Phillips, Denton County Election Administrator. Applications for early voting for Denton County residents of the Town should be requested as follows: B.y Regular Mail -By Fax(') By Common or Contract Carrier Frank Phillips Frank Phillips Early Voting Clerk (940) 349-3201 Early Voting Clerk 701 Kimberly Drive, Suite A101 701 Kimberly Drive, Suite A 10 1 Denton, TX 76208 Denton, TX 76208 By email('). clections@dentoncounty.com {' 7 If an application is sent by fax or email, the original must still be mailed to address shown above for Regular Mail. For an application submitted by fax or email to be effective, the original copy of the application must be mailed and received in the Elections Office by the fourth business day after it was faxed or emailed. Section 6. Deadline for Applications by Mail or Fax. The last day to submit an application for a ballot to the respective Early Voting Clerk to be voted by mail (a) by personal delivery is October 16, 2020, and (b) by mail is the close of business on October 23, 2020. Section 7. Right to Vote. All resident, qualified electors of the Town shall be entitled to vote at the Election. Section 8. Propositions. At the Election the following propositions shall be submitted in accordance with law: TOWN OF PROSPER, TEXAS SPECIAL ELECTION TOWN OF PROSPER, TEXAS PROPOSITION A Shall the Town Council of the Town of Prosper be authorized to issue the bonds of the Town, in one or more series or issues, in the aggregate principal amount of $30,000,000, with the bonds of each such series or issue, respectively, to mature and be issued and sold in accordance with law at the time of issuance, and to be sold at such prices and bear interest at such rates as shall be determined within the discretion of the Town Council, for the purpose of designing, constructing, improving and equipping public safety facilities in the Town consisting of fire stations, an emergency operations center, a public safety training facility and administrative facilities relating thereto, and the acquisition of land and interests in land as necessary for such purposes, and shall the Town Council be authorized to levy and cause to be assessed and collected annual ad valorem taxes in an amount sufficient to pay the annual interest on the bonds, within the limits prescribed by law, to provide a sinking fund to pay the bonds at maturity and to pay the cost of any credit agreements executed in connection with the bonds? TOWN OF PROSPER, TEXAS SPECIAL ELECTION TOWN OF PROSPER, TEXAS PROPOSITION B Shall the Town Council of the Town of Prosper be authorized to issue the bonds of the Town, in one or more series or issues, in the aggregate principal amount of $30,000,000, with the bonds of each such series or issue, respectively, to mature and be issued and sold in accordance with law at the time of issuance, and to be sold at such prices and bear interest at such rates as shall be determined within the discretion of the Town Council, for the purpose of designing, constructing, improving and equipping parks, trails and recreational facilities in the Town and the acquisition of land and interests in land for such purposes, and shall the Town Council be authorized to levy and cause to be assessed and collected annual ad valorem taxes in an amount sufficient to pay the annual interest on the bonds, within the limits prescribed by law, to provide a sinking fund to pay the bonds at maturity and to pay the cost of any credit agreements executed in connection with the bonds? TOWN OF PROSPER, TEXAS SPECIAL ELECTION TOWN OF PROSPER, TEXAS PROPOSITION C Shall the Town Council of the Town of Prosper, Texas, be authorized to issue the bonds of the Town, in one or more series or issues, in the aggregate principal amount of $150,000,000, with the bonds of each such series or issue, respectively, to mature and be issued and sold in accordance with law at the time of issuance, and to be sold at such prices and bear interest at such rates as shall be determined within the discretion of the Town Council, for the purpose of constructing, improving, extending, expanding, upgrading and developing streets and roads, bridges and intersections in the Town and related drainage improvements, utility relocations, landscaping, curbs and sidewalks, traffic safety and operational improvements, entryway signage and other street and road signage and costs associated with such projects, and interests in land as may be necessary for such purposes; provided that the following projects are planned to be completed through funding from other obligations of the Town and therefore no proceeds of the bonds may be used for improvements to Frontier Parkway from the Dallas North Tollway to Preston Road, the Dallas North Tollway overpass at Highway 380 and Fishtrap Road from Teel Parkway to Stuber Elementary School, and shall the Town Council be authorized to levy and cause to be assessed and collected annual ad valorem taxes in an amount sufficient to pay the annual interest on the bonds, within the limits prescribed by law, to provide a sinking fund to pay the bonds at maturity and to pay the cost of any credit agreements executed in connection with the bonds? Section 9. Official Ballots. The official ballots for the Election shall be prepared in accordance with the Code, so as to permit the electors to vote "FOR" or "AGAINST" the aforesaid propositions which shall be set forth in substantially the following form: TOWN OF PROSPER, TEXAS SPECIAL ELECTION TOWN OF PROSPER, TEXAS PROPOSITION A THE ISSUANCE OF $30,000,000 TAX BONDS BY THE TOWN OF FOR ( ) PROSPER, TEXAS FOR PUBLIC SAFETY FACILITIES IN THE TOWN, CONSISTING OF FIRE STATIONS, AN EMERGENCY OPERATIONS CENTER, A PUBLIC SAFETY TRAINING FACILITY AGAINST ( ) AND ADMINISTRATIVE FACILITIES RELATING THERETO. TAXES SUFFICIENT TO PAY THE PRINCIPAL OF AND INTEREST ON THE BONDS WILL BE IMPOSED. TOWN OF PROSPER, TEXAS SPECIAL ELECTION TOWN OF PROSPER, TEXAS PROPOSITION B THE ISSUANCE OF $30,000,000 TAX BONDS BY THE TOWN OF FOR ( ) PROSPER, TEXAS FOR EQUIPPING PARKS, TRAILS AND RECREATIONAL FACILITIES IN THE TOWN AND THE ACQUISITION OF LAND AND INTERESTS IN LAND FOR SUCH AGAINST ( ) PURPOSES. TAXES SUFFICIENT TO PAY THE PRINCIPAL OF AND INTEREST ON THE BONDS WILL BE IMPOSED. FOR AGAINST ( TOWN OF PROSPER, TEXAS SPECIAL ELECTION TOWN OF PROSPER, TEXAS PROPOSITION C THE ISSUANCE OF $150,000,000 TAX BONDS BY THE TOWN OF PROSPER, TEXAS FOR CONSTRUCTING, IMPROVING, EXTENDING, EXPANDING, UPGRADING AND DEVELOPING STREETS AND ROADS, BRIDGES AND INTERSECTIONS IN THE TOWN AND RELATED DRAINAGE IMPROVEMENTS, UTILITY RELOCATIONS, LANDSCAPING, CURBS AND SIDEWALKS, TRAFFIC SAFETY AND OPERATIONAL IMPROVEMENTS, ENTRYWAY SIGNAGE AND OTHER STREET AND ROAD SIGNAGE AND COSTS ASSOCIATED WITH SUCH PROJECTS, AND INTERESTS IN LAND AS MAY BE NECESSARY FOR SUCH PURPOSES; PROVIDED THAT THE FOLLOWING PROJECTS ARE PLANNED TO BE COMPLETED THROUGH FUNDING FROM OTHER OBLIGATIONS OF THE TOWN AND THEREFORE NO PROCEEDS OF THE BONDS MAY BE USED FOR IMPROVEMENTS TO FRONTIER PARKWAY FROM THE DALLAS NORTH TOLLWAY TO PRESTON ROAD, THE DALLAS NORTH TOLLWAY OVERPASS AT HIGHWAY 380 AND FISHTRAP ROAD FROM TEEL PARKWAY TO STUBER ELEMENTARY SCHOOL. TAXES SUFFICIENT TO PAY THE PRINCIPAL OF AND INTEREST ON THE BONDS WILL BE IMPOSED. Section 10. Required Information. In accordance with the provisions of Section 3.009(b), Texas Election Code, it is hereby found and determined that: (a) The proposition language that will appear on the ballot is set forth in Section 9 hereof, (b) The purpose for which the bonds are to be authorized is set forth in Section 8 hereof. (c) The principal amount of the bonds to be authorized is set forth in Sections 8 and 9 hereof. (d) As set forth in Sections 8 and 9 hereof, if the bonds are approved by the voters, the Town Council will be authorized to levy annual ad valorem taxes on all taxable property in the Town, sufficient, within the limits prescribed by law, to pay the annual principal of and interest on the bonds and provide a sinking fund to pay the bonds at maturity. (e) Based upon the bond market conditions at the date of adoption of this Ordinance, the maximum average interest rate for any series of the bonds is estimated to be 4.5% as calculated in accordance with applicable law. Such estimate takes into account a number of factors, including the interest rates prevailing in the market at the time the Election was called, the issuance schedule, maturity schedule, assumed principal amortizations and the expected bond ratings of the proposed bonds. Such estimated maximum interest rate is provided as a matter of information, but is not a limitation on the interest rate at which the bonds, or any series thereof, may be sold. (f) The bonds that are the subject of this Election shall mature serially or otherwise over a specified number of years not exceeding the maximum number of years authorized by law, as prescribed by applicable Texas law, though the Town estimates that, based on current bond market conditions, such bonds will amortize over a 20 year period from their date of issue. (g) The aggregate amount of the outstanding principal of the Town's debt obligations (consisting of all debt that is secured by and payable from ad valorem taxes, other than debt obligations that are self -supported by other revenues of the Town) as of August 11, 2020 (the date this Election was called) is $77,926,423. The debt obligations that the Town has designated as self-supporting from other revenues such as water and sewer revenues are listed on Annex A to this Ordinance. (h) The aggregate amount of the outstanding interest of the Town's debt obligations (consisting of all debt that is secured by and payable from ad valorem taxes, other than debt obligations that are self -supported by other revenues of the Town) as of August 11, 2020 (the date this Election was called) is $28,598,980. The debt obligations that the Town has designated as self-supporting from other revenues such as water and sewer revenues are listed on Annex A to this Ordinance. (i) The ad valorem debt service tax rate for the Town for the 2019-2020 fiscal year is $0.1525 per $100 of taxable assessed valuation. Section 11. Posting Requirements. In accordance with provisions of the Texas Election Code, substantially complete voter information documents pertaining to each Proposition to be voted on at the Election are attached hereto as Exhibit "C" (collectively, the "Voter Information Document"). This Ordinance and the Voter Information Document, as may be modified without further Town Council action in a manner that is consistent with the calling of the Election by the Town Council and the election notice requirements of the Texas Election Code applicable to the Election, shall serve as proper notice of the Election and the voter information documents required by Section 1251.052(b), Texas Government Code. The Town Secretary shall cause this Ordinance and the Voter Information Document to be posted and published as follows: (a) This Ordinance shall be published one time, not earlier than the 30th day or later than the 1 Oth day prior to the date set for the Election, in a newspaper published in the Town or, if none is published in the Town, in a newspaper of general circulation in the Town; (b) This Ordinance and the Voter Information Document shall be posted on the bulletin board used for posting notices of meetings of the Town Council, and at three other places in the Town, not later than the 21 st day prior to the date set for the Election; (c) This Ordinance and the Voter Information Document shall be posted on election day and during early voting by personal appearance, in a prominent location at each polling place; and (d) This Ordinance and the Voter Information Document shall be posted on the Town's Internet website during the 21 days before the Election. Each of this Ordinance and the Voter Information Document shall be published and/or posted, as provided above, in both English and Spanish translations. Section 12. Severability Provision. If any provision, section, subsection, sentence, clause or phrase of this Ordinance, or the application of the same to any person or set of circumstances is for any reason held to be unconstitutional, void, invalid or unenforceable, neither the remaining portions of this Ordinance nor their application to other persons or sets of circumstances shall be affected thereby, it being the intent of the Town Council in adopting this Ordinance that no portion hereof or provision or regulation contained herein shall become inoperative or fail by reason of any unconstitutionality, voidness, invalidity or unenforceability of any other portion hereof, and all provisions of this Ordinance are declared to be severable for that purpose. Section 13. Effective Date of Ordinance. In accordance with the provisions of V.T.C.A., Government Code, Section 1201.028, this Ordinance shall be effective immediately upon its adoption by the Town Council on first and final reading. DULY PASSED, APPROVED, AND ADOPTED BY THE TOWN COUNCIL OF THE TOWN OF PROSPER, TEXAS, ON THIS I ITH DAY OF AUGUST, 2020. r.- - [2) 0, � 4 Z.;' Ray Smith, M yor ATTEST: ,���111i1i►► Melissa Lee, Town Secretary . • ' . ,� r_ APPROVED AS TO FORM AND LEGALITY: -1914 ,► EXAS ANNEX A TOWN OF PROSPER, TEXAS Self -Supporting Debt The Town designates all or a portion of the following outstanding debt obligations of the Town as self-supporting debt for purposes of Section 3.009, Texas Election Code, as amended, and Chapter 1251, Texas Government Code, Subchapter B, as amended. 1. Town of Prosper, Texas, Combination Tax and Revenue Certificates of Obligation, Series 2012; and 2. Town of Prosper, Texas, Combination Tax and Surplus Revenue Certificates of Obligation, Series 2013; and 3. Town of Prosper, Texas General Obligation Refunding and Improvement Bonds, Series 2014; and 4. Town of Prosper, Texas, Combination Tax and Surplus Revenue Certificates of Obligation, Series 2014; and 5. Town of Prosper, Texas General Obligation Refunding and Improvement Bonds, Series 2015; and 6. Town of Prosper, Texas General Obligation Refunding and Improvement Bonds, Series 2016; and 7. Town of Prosper, Texas, Combination Tax and Surplus Revenue Certificates of Obligation, Series 2016; and 8. Town of Prosper, Texas, Combination Tax and Surplus Revenue Certificates of Obligation, Series 2017; and 9. Town of Prosper, Texas, Combination Tax and Surplus Revenue Certificates of Obligation, Series 2018; and 10. Town of Prosper, Texas, Combination Tax and Surplus Revenue Certificates of Obligation, Series 2019. EXHIBIT A ELECTION DAY VOTING LOCATIONS, DATES AND HOURS November 3, 2020 Joint General Election Election Day Voting Hours: 7 AM — 7 PM Election Day Votine Locations Election Day Voting For Town Voters Who Reside In Collin County [To come.] Election Day_ Voting, For Town Voters Who Reside In Denton County [To come.] EXHIBIT B EARLY VOTING LOCATIONS, DATES AND HOURS Early Voting For Town Voters Who Reside In Collin County [To come.] Early Voting_ For Town Voters Who Reside In DentonCoggly [To come.] EXHIBIT C Voter Information Document Town of Prosper Special Election Proposition A Ballot Information: At the Election, the following language will appear on the ballot: FOR AGAINST ( TOWN OF PROSPER, TEXAS SPECIAL ELECTION TOWN OF PROSPER, TEXAS PROPOSITION A THE ISSUANCE OF $30,000,000 TAX BONDS BY THE TOWN OF PROSPER, TEXAS FOR PUBLIC SAFETY FACILITIES IN THE TOWN, CONSISTING OF FIRE STATIONS, AN EMERGENCY OPERATIONS CENTER, A PUBLIC SAFETY TRAINING FACILITY AND ADMINISTRATIVE FACILITIES RELATING THERETO. TAXES SUFFICIENT TO PAY THE PRINCIPAL OF AND INTEREST ON THE BONDS WILL BE IMPOSED. Estimated Debt Service Information: The following table sets forth the estimated principal amount of, and interest due to maturity on, the bonds to be issued if Proposition A passes, and all existing outstanding debt obligations of the Town secured by and payable from ad valorem taxes, other than debt obligations that the Town has designated as self-sufficient (payable from other revenues, such as water and sewer system revenues). Principal Estimated Amount of interest for Bonds to be Bonds to be authorized authorized under under Proposition A Proposition AM $30,000,000 $16,782,877 Estimated Principal of Remaining Combined combined Town's Existing interest on Principal and principal and Outstanding Town's Existing Interest to interest required Debt Outstanding timely pay to pay on time (as of 8/11/20)(�) Debt Town's and in full the (as of 8/11/20)(2) Existing Bonds to be Outstanding authorized Debt under (as of 8/11/20)(2) Proposition AM $28,598,980 $106,525,403 $46,782,877 $77,926,423 (1) Interest is estimated based on bond market conditions as of August 11, 2020. If Proposition A is approved by the voters, the approved bonds are currently expected to be sold in annual installments over a 10 year period, so market conditions are likely to change over time. The interest on the proposed bonds under Proposition A was calculated at an average rate of 3.75% in 2021 through 2022, 4.0% for 2023 through 2024 and 4.5% in 2025 and thereafter (which the Town believes is a conservative estimate) based on market conditions as of August 11, 2020, and therefore, the interest payable on such proposed bonds may be less than, or more than, the amounts set forth above based on market conditions at the time of the initial sale of the proposed bonds to be authorized under Proposition A. (1) Excludes $49,756,271 of Town debt obligations that are secured by and payable from ad valorem taxes, but which the Town has designated as self-sufficient as being paid from other Town revenues, such as water and sewer system revenues. Based on the information and assumptions provided in the table above, the Town estimates that there will be a $0.0107 tax rate increase imposed on a residence homestead in the Town with an appraised value of $100,000 to repay the proposed bonds, if approved. That estimate assumes (i) 10 annual issuances of bonds under Proposition A, (ii) that the bonds of each series that may be approved under Proposition A would be sold with an annual amortization of 20 years, respectively, (iii) growth of Town's taxable assessed valuation by between 8% and 8.6% per year for tax years 2021 through 2025, by between 5.3% and 7.2% for tax years 2026 through 2029, 5% per year for each tax year 2030 and thereafter and (iv) that the average interest rate on the bonds does not exceed 4.5%. The Town reserves the right not to issue all of the bonds should the bond market and economic outlook in the Town change after the Election. The information provided in this Document is to comply with Tex. H.B. 477 86th Leg., R.S. (2019), which requires a voter information document for each proposition to be submitted to the voters. Reference is made to the Voter Information Document for the Town's Propositions B and C, which follow this Document, for additional information pertaining to other potential new debt of the Town. EXHIBIT C, Continued Voter Information Document Town of Prosper Special Election Proposition B Ballot Information: At the Election, the following language will appear on the ballot: TOWN OF PROSPER TEXAS SPECIAL ELECTION TOWN OF PROSPER, TEXAS PROPOSITION B THE ISSUANCE OF $30,000,000 TAX BONDS BY THE TOWN OF FOR ( ) PROSPER, TEXAS FOR EQUIPPING PARKS, TRAILS AND RECREATIONAL FACILITIES IN THE TOWN AND THE ACQUISITION OF LAND AND INTERESTS IN LAND FOR SUCH AGAINST ( ) PURPOSES. TAXES SUFFICIENT TO PAY THE PRINCIPAL OF AND INTEREST ON THE BONDS WILL BE IMPOSED. Estimated Debt Service Information: The following table sets forth the estimated principal amount of, and interest due to maturity on, the bonds to be issued if Proposition B passes, and all existing outstanding debt obligations of the Town secured by and payable from ad valorem taxes, other than debt obligations that the Town has designated as self-sufficient (payable from other revenues, such as water and sewer system revenues). Principal Estimated Estimated Principal of Remaining Combined Amount of interest for combined Town's Existing interest on Principal and Bonds to be Bonds to be principal and Outstanding Town's Existing Interest to authorized authorized interest required Debt Outstanding timely pay under under to pay on time (as of 8/11/20)(1) Debt Town's Proposition B Proposition 130) and in full the (as of 8/11/20)(2) Existing Bonds to be Outstanding authorized Debt under (as of 8/ 11 /20)(2) Proposition Bit) $30,000,000 $16,782,877 $46,782,877 $77,926,423 $28,598,980 $106,525,403 (1) Interest is estimated based on bond market conditions as of August 11, 2020. If Proposition B is approved by the voters, the approved bonds are currently expected to be sold in annual installments over a 10 year period, so market conditions are likely to change over time. The interest on the proposed bonds under Proposition B was calculated at an average rate of 3.75% in 2021 through 2022, 4.0% for 2023 through 2024 and 4.5% in 2025 and thereafter (which the Town believes is a conservative estimate) based on market conditions as of August 11, 2020, and therefore, the interest payable on such proposed bonds may be less than, or more than, the amounts set forth above based on market conditions at the time of the initial sale of the proposed bonds to be authorized under Proposition B. (2) Excludes $49,756,271 of Town debt obligations that are secured by and payable from ad valorem taxes, but which the Town has designated as self-sufficient as being paid from other Town revenues, such as water and sewer system revenues. Based on the information and assumptions provided in the table above, the Town estimates that there will be a $0.0107 tax rate increase imposed on a residence homestead in the Town with an appraised value of $100,000 to repay the proposed bonds, if approved. That estimate assumes (i) 10 annual issuances of bonds under Proposition B, (ii) that the bonds of each series that may be approved under Proposition B would be sold with an annual amortization of 20 years, respectively, (iii) growth of Town's taxable assessed valuation by between 8% and 8.6% per year for tax years 2021 through 2025, by between 5.3% and 7.2% for tax years 2026 through 2029, 5% per year for each tax year 2030 and thereafter and (iv) that the average interest rate on the bonds does not exceed 4.5%. The Town reserves the right not to issue all of the bonds should the bond market and economic outlook in the Town change after the Election. The information provided in this Document is to comply with Tex. H.B. 477 86th Leg., R.S. (2019), which requires a voter information document for each proposition to be submitted to the voters. Reference is made to the Voter Information Document for the Town's Propositions A and C, which precede or follow this Document, for additional information pertaining to other potential new debt of the Town. EXHIBIT C, Continued Voter Information Document Town of Prosper Special Election Proposition C Ballot Information: At the Election, the following language will appear on the ballot: TOWN OF PROSPER, TEXAS SPECIAL ELECTION TOWN OF PROSPER, TEXAS PROPOSITION C THE ISSUANCE OF $150,000,000 TAX BONDS BY THE TOWN OF PROSPER, TEXAS FOR CONSTRUCTING, IMPROVING, EXTENDING, EXPANDING, UPGRADING AND DEVELOPING STREETS AND ROADS, BRIDGES AND INTERSECTIONS IN THE FOR ( ) TOWN AND RELATED DRAINAGE IMPROVEMENTS, UTILITY RELOCATIONS, LANDSCAPING, CURBS AND SIDEWALKS, TRAFFIC SAFETY AND OPERATIONAL IMPROVEMENTS, ENTRYWAY SIGNAGE AND OTHER STREET AND ROAD SIGNAGE AND COSTS ASSOCIATED WITH SUCH PROJECTS, AND INTERESTS IN LAND AS MAY BE NECESSARY FOR SUCH PURPOSES; PROVIDED THAT THE FOLLOWING PROJECTS ARE PLANNED TO BE COMPLETED THROUGH FUNDING FROM AGAINST ( ) OTHER OBLIGATIONS OF THE TOWN AND THEREFORE NO PROCEEDS OF THE BONDS MAY BE USED FOR IMPROVEMENTS TO FRONTIER PARKWAY FROM THE DALLAS NORTH TOLLWAY TO PRESTON ROAD, THE DALLAS NORTH TOLLWAY OVERPASS AT HIGHWAY 380 AND FISHTRAP ROAD FROM TEEL PARKWAY TO STUBER ELEMENTARY SCHOOL. TAXES SUFFICIENT TO PAY THE PRINCIPAL OF AND INTEREST ON THE BONDS WILL BE IMPOSED. Estimated Debt Service Information: The following table sets forth the estimated principal amount of, and interest due to maturity on, the bonds to be issued if Proposition C passes, and all existing outstanding debt obligations of the Town secured by and payable from ad valorem taxes, other than debt obligations that the Town has designated as self-sufficient (payable from other revenues, such as water and sewer system revenues). Principal Amount of Bonds to be authorized under Proposition C $150,000,000 i. Estimated interest for Bonds to be authorized under Proposition 01) $83,914,386 Estimated combined principal and interest required to pay on time and in full the Bonds to be authorized under Proposition CM $233,914,386 Principal of Town's Existing Outstanding Debt (as of 8/11/20)(2) $77,926,423 Remaining interest on Town's Existing Outstanding Debt (as of 8/11/20)(1) $28,598,980 Combined Principal and Interest to timely pay Town's Existing Outstanding Debt (as of 8/11/20)(2) $106,525,403 (1) Interest is estimated based on bond market conditions as of August 11, 2020. If Proposition C is approved by the voters, the approved bonds are currently expected to be sold in annual installments over a 10 year period, so market conditions are likely to change over time. The interest on the proposed bonds under Proposition C was calculated at an average rate of 3.75% in 2021 through 2022, 4.0% for 2023 through 2024 and 4.5% in 2025 and thereafter (which the Town believes is a conservative estimate) based on market conditions as of August 11, 2020, and therefore, the interest payable on such proposed bonds may be less than, or more than, the amounts set forth above based on market conditions at the time of the initial sale of the proposed bonds to be authorized under Proposition C. (2) Excludes $49,756,271 of Town debt obligations that are secured by and payable from ad valorem taxes, but which the Town has designated as self-sufficient as being paid from other Town revenues, such as water and sewer system revenues. Based on the information and assumptions provided in the table above, the Town estimates that there will be a $0.0536 tax rate increase imposed on a residence homestead in the Town with an appraised value of $100,000 to repay the proposed bonds, if approved. That estimate assumes (i) 10 annual issuances of bonds under Proposition C, (ii) that the bonds of each series that may be approved under Proposition C would be sold with an annual amortization of 20 years, respectively, (iii) growth of Town's taxable assessed valuation by between 8% and 8.6% per year for tax years 2021 through 2025, by between 5.3% and 7.2% for tax years 2026 through 2029, 5% per year for each tax year 2030 and thereafter and (iv) that the average interest rate on the bonds does not exceed 4.5%. The Town reserves the right not to issue all of the bonds should the bond market and economic outlook in the Town change after the Election. The information provided in this Document is to comply with Tex. H.B. 477 86th Leg., R.S. (2019), which requires a voter information document for each proposition to be submitted to the voters. Reference is made to the Voter Information Document for the Town's Propositions A and B, which precede this Document, for additional information pertaining to other potential new debt of the Town.