[12. Consider and act upon an ordinance calling a Bond Election to be held on November 4, 2025, and providing for the administration of the Election. (RBS/CL)]

PUBLIC HEARINGS WILL BE RECOGNIZED WHEN THE PUBLIC HEARING IS OPEN. OUR NEXT AGENDA ITEM IS NUMBER 12 TO CONSIDER AND ACT UPON AN ORDINANCE CALLING A BOND ELECTION TO BE HELD ON NOVEMBER 4TH, 2025, AND PROVIDING FOR THE ADMINISTRATION OF THE ELECTION. MR. BOB SCOTT.

BOB, SINCE YOU WERE UNDER YOUR TIME IN THE WORK SESSION, THIS IS THIS DOES NOT MEAN YOU IT. I WILL DO MY BEST TO CONTINUE THE STREAK. SO AGAIN, SAME SLIDES AS WE DISCUSSED IN WORK SESSION.

AND REALLY THE POINT WE WANT TO GET TO IS WHICH OF THE OPTIONS OR MODIFIED OPTIONS DOES THE COUNCIL WISH TO TAKE FORWARD. AND PASSES AN ORDINANCE TO CALL THE NOVEMBER 4TH BOND ELECTION? ONE THING I WILL POINT OUT, AS YOU SEE THE WORDING AND READ THE WORDING IN YOUR AGENDA PACKET.

STATE LAW IS VERY SPECIFIC IN TERMS OF WHAT WE HAVE TO SAY, AND IN ALL CAPS THEY REQUIRE US TO SAY THIS IS A PROPERTY TAX INCREASE. I SHOULD POINT OUT THAT SINCE THE TOWN HAS ADOPTED THE SENIOR AND DISABLED TAX FREEZE, THAT FOR THOSE QUALIFYING FOR THOSE TWO EXEMPTIONS, THIS WILL NOT BE A TAX INCREASE BECAUSE THEY WILL CONTINUE TO PAY THE EXACT FROZEN VALUES OF TAXES THEY'RE CURRENTLY PAYING. ALSO, IT IS OUR INTENT TO ONLY ISSUE NEW DEBT AS THE DEBT SERVICE RATE ALLOWS. SO WE WILL NOT. THIS ELECTION WILL NOT CAUSE A INCREASE IN THE DEBT SERVICE TAX RATE. AND SO THOSE OTHER TAXPAYERS WHO ARE NOT QUALIFIED FOR THE SENIOR AND DISABLED, THEY WILL SEE A TAX INCREASE IF THEIR PROPERTY VALUES GO UP. BUT THAT WOULD BE THE ONLY TIME. AND THAT'S DETERMINED BY THE APPRAISAL DISTRICT, NOT BY THE TOWN. AND WITH THAT, I WOULD ENTERTAIN ANY QUESTIONS OR MOTION IN TERMS OF WHICH SPECIFIC ORDINANCE OPTION THE COUNCIL WOULD LIKE TO GO FORWARD WITH. BOB, I JUST WANT TO START WITH THANKING YOU, THANKING YOU AND YOUR TEAM. I KNOW YOU LED THE BOND COMMITTEE. WE HAD WE HEARD IN THE WORK SESSION FROM THE BOND COMMITTEE CHAIRMAN, KEVIN GREEN. AND I ACKNOWLEDGE, I WANT TO ACKNOWLEDGE ALL THE MEMBERS OF THE BOND COMMITTEE THAT PUT IN A LOT OF WORK, AS WELL AS YOUR TEAM THAT HAVE GOTTEN US TO THIS POINT. I NOTE THAT WE HAVE SOME LIBRARY BOARD

[00:25:05]

MEMBERS HERE WITH US. I THINK THEY'LL BE PLEASED TO SEE THE LIBRARY ON THIS PARTICULAR ONE.

BUT I THINK IN OUR WORK SESSION WE HAD A COUPLE OF SMALL RECOMMENDATIONS. I'LL TURN IT OVER TO MAYOR PRO TEM FOR SOME OF THOSE POINTS. SO AS DISCUSSED IN THE WORK SESSION AND YOU KNOW, WE WANT MY COLLEAGUES OBVIOUSLY TO WEIGH IN, I WOULD GO FOR AN OPTION FOUR, WHICH WOULD BE INCLUDING OPTION TWO, WHICH IS THE INCREASE IN THE IN PROPOSITION A TO COVER THE NTA REPAIRS AND THEN THE 8.5 MILLION. AND THEN IN ADDITION TO THAT, CHANGING THE LANGUAGE A LITTLE BIT, WHICH WE DISCUSSED, WE HAVE A RED LINE HERE ON PROPOSITION F, STILL KEEPING THE SAME AMOUNT OF MONEY AS RECOMMENDED BY THE BOND COMMITTEE AT 2.3 MILLION. BUT GIVING US A LITTLE MORE FLEXIBILITY FOR IT NOT TO BE JUST SILO REPAIR, BUT ALSO ANY KIND OF DOWNTOWN IMPROVEMENTS. SOUNDED LIKE THE BOND COMMITTEE CHAIR WAS AGREEABLE. AND I WILL JUST SAY FROM BEING IN THE BOND COMMITTEE MEETINGS, THE BOND COMMITTEE DID A GREAT JOB VETTING PROJECTS. SO JUST SO OUR CITIZENS THAT ARE LISTENING CAN HEAR THIS WAS DONE BY YOUR NEIGHBORS AND THEY THEY REALLY DID A GREAT JOB PRIORITIZING BECAUSE WE HAVE A LOT MORE PROJECTS THAN WE HAVE MONEY. SO THAT WOULD BE MY RECOMMENDATION. OH, SORRY. YES. ON THE BOND COMMITTEE WAS CAMERON AND CHRIS RIGHT? YEAH. AND THEN I'M LIKE, YEAH, THAT WAS REALLY HEARTFELT.

SO MANY REALLY HEARTFELT. WE'RE IN SO MANY MEETINGS I'M TRYING TO REMEMBER. THERE WE GO. THANK YOU THAT YOU HELPED ME I APPRECIATE THAT. AND THEN COMMITTEE MEMBERS AGAIN GREAT.

THEY WERE GREAT GROUP. HOW MANY MEETINGS DID YOU GUYS HAVE BOB? I SAID LAST AGENDA ITEM, I BELIEVE IT WAS 7077. AND THE COMMITTEE MEMBERS HAD THE MATERIALS FROM THE PREVIOUS BOND COMMITTEE. THEY ACTUALLY WENT OUT AND LOOKED AT THE DIFFERENT PROJECTS THAT THE PREVIOUS BOND HAD DONE TO SEE WHERE THAT BOND MONEY HAD SPENT. AND SO THEY AND THEN YOU DID FIELD TRIPS AND OTHER OTHER ACTIVITIES. SO WITH THAT, THE MAYOR PRO TEM HAS LAID OUT AN OPTION FOR IS THERE ANY OTHER COMMENTS? I WOULD I WOULD CONCUR WITH HER OPTION AND SECONDED, IF YOU WILL. I THINK IT'S A PRUDENT STEP. AND, YOU KNOW, THE COMMITTEE DID A FANTASTIC JOB TO BE ABLE TO TAKE THE VOLUME OF REQUESTS AND WHITTLE THEM DOWN TO SOMETHING THAT WAS MANAGEABLE TO BE ABLE TO PUT BEFORE THE VOTERS. SO I'M ENCOURAGED BY WHAT'S BEEN PUT FORWARD. AND THEY DID A LOT OF GREAT WORK. SO I WOULD SECOND THE MOTION. OKAY. AND I NOTICE CAMERON HAD A COMMENT. ALSO, I WAS JUST GOING TO ECHO WHAT MAYOR PRO TEM BARTLEY HAD HAD RECOMMENDED. I THINK THAT THE COMMITTEE DID A FANTASTIC JOB. THEY ASKED A LOT OF GREAT QUESTIONS OF STAFF, AND THEY HAD A LOT, OF LOT OF GREAT COMMUNICATION AMONGST EACH OTHER. AND SO I WAS REALLY PROUD OF WHERE THEY WHERE THEY LANDED. AND I DO AGREE WITH, WITH WHAT'S BEING RECOMMENDED TONIGHT. OKAY.

ANY OTHER COMMENTS? SO DID YOU ACTUALLY MAKE A MOTION MARCUS? MARCUS SECONDED THE MOTION YOU'RE GOING TO MAKE I THINK OKAY. SO TERRY MIGHT HAVE TO HELP ME HERE. DO I HAVE TO SAY, DO I NEED TO READ THEM? I WANT TO MAKE SURE I UNDERSTAND TOO. OKAY. IS THE OBVIOUS OPTION TO.

BUT WITH THE TOTAL AMOUNT COULD BE 192,300,000. AND WITH THE MODIFICATIONS AS REFLECTED IN FOR PROPOSITION F THAT WERE PASSED OUT THIS EVENING. YES. IN THE RED LINE. OKAY. THAT'S CORRECT. TERRY, DO WE NEED TO READ THAT LANGUAGE OR JUST THE FACT THAT WE HAVE IT IN WRITING? AND SEE IF IT'S OKAY WITH EVERYBODY? PERFECT. I MOVE MAKING A MOTION. I MAKE THE MOTION. I MOVE TO APPROVE AN ORDINANCE FOR OPTION TWO, CALLING A BOND ELECTION TO BE HELD ON NOVEMBER 4TH, 2025, WITH THE MODIFICATIONS AS REFLECTED IN PROPOSITION F FOR PROPOSITION F AS DISTRIBUTED THIS EVENING, FOR A TOTAL OF $192,300,000, AND PROVIDING FOR THE ADMINISTRATION OF THE ELECTION, I MAKE THAT MOTION SECOND. OKAY, SO AS AS WE GO THROUGH THIS FULLY SUPPORTIVE OF IT, I WILL SIMPLY POINT OUT THAT THIS IS THE BEGINNING OF THE EFFORT, NOT THE END OF THE EFFORT. SO FOR EVERYBODY WITH THAT, WE HAVE A MOTION A SECOND. ALL IN FAVOR. THAT MOTION PASSES UNANIMOUSLY. THANK YOU VERY MUCH FOR ALL THE WORK. JUST. ALL RIGHT. AGENDA ITEM NUMBER 13 IS

[13. Discuss and consider submission of the Preliminary Fiscal Year 2025-2026 Budget. (CL) ]

TO DISCUSS AND CONSIDER THE SUBMISSION OF THE PRELIMINARY FISCAL YEAR 2025 2026 BUDGET.

[00:30:03]

CHRIS LANDRUM. SO THANK YOU, MAYOR AND PROSPER TOWN COUNCIL, LAST FRIDAY, YOU RECEIVED THE TOWN MANAGER'S PRELIMINARY BUDGET. AND THIS AGENDA ITEM IS JUST TO MEMORIALIZE THE TRANSMITTAL OF THE TOWN MANAGER'S BUDGET. SO EVERY YEAR OUR BUDGET STARTS WITH OUR GUIDING DOCUMENT. OUR GUIDING DOCUMENT IS THE TOWN COUNCIL'S STRATEGIC VISIONING PRIORITIES.

SO WHEN WE'RE BUILDING OUR BUDGETS, WE ALWAYS HAVE THE COUNCIL'S STRATEGIC VISIONING PRIORITIES IN MIND A LITTLE BIT ON WHERE WE ARE IN THE PROCESS. SO WE STARTED THE PROCESS EARLY IN THE YEAR, JANUARY. BUT IN FEBRUARY WE MET WITH COUNCIL, LOOKED AT THE MULTI YEAR BUDGET PROJECTION, THE LONG RANGE PROJECTIONS OVER THE SPRING AND SUMMER, DIFFERENT. COMMITTEES MET AND STAFF, BUILT THE BUDGET AND PUT THE BUDGET TOGETHER. ON THE 24TH. WE HAD A WORKSHOP WITH COUNCIL AND AT A COUNCIL WORK SESSION ON JULY 25TH, WE RECEIVED THE CERTIFIED ROLLS AND. THEN THAT BRINGS US TO TONIGHT, WHICH IS THE PRESENTATION OF THE PRELIMINARY BUDGET. WHAT WE WOULD LIKE TO HAVE IS BEFORE AUGUST 22ND, HAVE ALL THE SUBCOMMITTEES HAVE MET AND MADE THEIR DECISIONS AND BACK TO US. HOWEVER, I KNOW THAT'S NOT ALWAYS PRACTICAL. AND SO AS SOON THEREAFTER AS WE COULD, WE PLAN TO HAVE A BUDGET TOWN HALL OPEN TO THE PUBLIC ON AUGUST 28TH THAT WILL BE INTERACTIVE FOR THE PUBLIC. AND THEN A RECENT CHANGE, A LATE CHANGE IS WE ARE GOING TO HAVE A SPECIAL CALLED MEETING FOR SEPTEMBER 16TH FOR THE PUBLIC HEARINGS AND THE ADOPTION VOTE ON BOTH THE TAX RATE AND THE BUDGET ITSELF. NOW, IN YOUR DOCUMENTATION, IN YOUR MOTIONS, THEY DO READ AUGUST 9TH. AND SO WHEN WE MAKE THOSE MOTIONS, YOU'LL HAVE TO REPLACE THIS OR I'M SORRY, THEY READ SEPTEMBER 9TH. YOU'LL HAVE TO REPLACE THAT WITH THE SEPTEMBER 16TH DATE. SO A LITTLE BIT ABOUT THE BUDGET. ALL IN ALL ALL TOTAL IT'S OVER 124 MILLION. SO 68 MILLION OF THAT IS IN THE GENERAL FUND. THE CRIME IN IN SPECIAL PURPOSE DISTRICT IS, YOU KNOW, RIGHT. UNDER 3.5 MILLION, AS WELL AS THE FIRE PREVENTION SPECIAL PURPOSE DISTRICT AND THEN THE TOTAL OF ALL THE UTILITY FUNDS TOGETHER ARE JUST SHY OF $50 MILLION. WE HAVE A DEBT SERVICE BUILT IN THERE OF A LITTLE OVER 19 MILLION, AND WE HAVE CAPITAL PROJECTS BUILT IN THERE CURRENTLY. NOW, THIS IS PENDING A CIP SUBCOMMITTEE MEETING OF 59.6. SO THAT IS SUBJECT TO CHANGE. SO LOOKING AT THE KEY REVENUE DRIVERS, YOU YOU DID SEE A LARGE INCREASE IN THE GENERAL FUND. MOST OF THAT IS FROM A CHANGE IN PROCEDURES. SO WE ARE GOING TO RECOGNIZE ALL OF THE PUBLIC SAFETY PERSONNEL WITHIN THE GENERAL FUND. NOW WE DO HAVE SPECIAL PURPOSE DISTRICTS THAT GO TO PAY FOR THAT. AND SO WE'RE GOING TO CHANGE THE PROCEDURE AND ACTUALLY TRANSFER THAT MONEY FROM THE SPECIAL PURPOSE DISTRICT OVER INTO THE GENERAL FUND. AND SO IT JUST APPEARS AS THOUGH THE GENERAL FUND IS VERY MUCH LARGER. IN ADDITION TO THAT, WE ALSO HAVE SOME FEE INCREASES. SO THE PILOT REVENUE, WHICH IS THE PAYMENT IN LIEU OF TAXES, THIS IS CAN BE THOUGHT OF AS A FRANCHISE FEE THAT OTHER UTILITIES WOULD PAY. CURRENTLY OURS IS SET AT 2%. WHEN WE DO COMPARISON WITH OUR COMPARISON MUNICIPALITIES, THAT RANGES IN THE 4 TO 5%. SO A 2% INCREASE IN THAT IS APPROXIMATELY 833,000. NOW THESE NEXT TWO BULLET POINTS WILL REQUIRE COUNCIL ACTION. SO THERE'S AN INCREASE PROPOSED IN THE DEVELOPMENT FEES. WE'RE ANTICIPATING ABOUT A 1.4 MILLION INCREASE FROM THAT. AND THEN IN THE ENGINEERING FEES AS WELL, WHICH WOULD BE ANOTHER 364,000 INCLUDED IN THIS BUDGET. FOR THE GENERAL FUND ALONE. THERE ARE 20 NEW POSITIONS PROPOSED. THERE'S THE A LOW DOLLAR, HIGH IMPACT FISCAL SERVICES SPECIALIST, KIND

[00:35:03]

OF LIKE AN ACCOUNTING TECH, IF YOU WILL, FOR THE FINANCE DEPARTMENT. THE NEXT TWO POSITIONS, THE CRIME ANALYST AND THE AUTO THEFT PREVENTION COORDINATOR ARE BOTH GRANT FUNDED AND THEN FOLLOWED BY THAT IS FOR POLICE OFFICERS. SO WE ARE OPENING FIRE STATION FOUR IN THE NEXT FISCAL YEAR. FOR THE FIRST YEAR, IT'S GOING TO BE A THREE YEAR PHASE TO STAFF THAT STATION. FOR THE FIRST YEAR. WE'RE PROPOSING TO ADD NINE POSITIONS. THE SECOND YEAR WOULD CONSIST OF FOUR, AND THEN THE FOLLOWING YEAR WOULD WOULD BE ANOTHER SIX TO FULLY OUTFIT THAT STATION. SO THE NINE HERE IS JUST THE FIRST YEAR OF A THREE YEAR PHASE IMPLEMENTATION. AND THEN WE HAVE A TRAFFIC SIGNAL TECH IN PUBLIC WORKS, TWO POSITIONS IN PARKS AND AN ADDITIONAL SUPERVISOR IN THE LIBRARY. THE STAFFING AND OTHER FUNDS. WE HAVE TWO IN THE WATER WASTEWATER FUND AND ONE HEAVY EQUIPMENT OPERATOR IN THE DRAINAGE FUND. SO IN ADDITION TO THE NEW POSITIONS, THERE WAS A MARKET STUDY THAT WAS COMPLETED. AND YOU CAN SEE ON THE SCREEN THE RESULTS OF THAT MARKET STUDY. THE BULK OF THAT GOING TO PUBLIC SAFETY. YOU CAN SEE THE FIRST TWO LINES BROKEN DOWN BETWEEN POLICE SWORN AND FIRE SWORN, AND THEN THE REST OF THE GENERAL FUND AT 174. AND THEN ALSO THE OTHER FUNDS THAT WE HAVE, THAT WILL BE AN IMPACT ON THOSE. SO WHAT WE HAVE PRESENTED TO YOU TONIGHT, SPECIFICALLY RELATED TO THE HEALTH FUND IS A WORK IN PROGRESS. THE WAY IT'S PRESENTED OBVIOUSLY DOESN'T WORK. THERE'S A DRAWDOWN TAKING THE FUND BALANCE TO NEGATIVE. BY THE TIME WE GET TO THE ADOPTION, THAT WILL NOT BE THE CASE. WE ARE CONTINUING TO WORK WITH OUR OUR OUR HEALTH CONSULTANT. AS YOU KNOW, THERE IS AN RFP CURRENTLY OUT FOR HEALTH SERVICES. AND SO WE'RE WORKING THROUGH ALL THAT INFORMATION TO GET IT BACK TO PROVIDE YOU A BALANCED BUDGET. WHAT WE HAVE INCLUDED SO FAR IS IN THE MID-YEAR TRANSFER FROM THE GENERAL FUND OVER TO THIS FUND OF $1.1 MILLION, AND THEN AN INCREASE FOR THE TOWN'S PORTION OF THE EMPLOYEES HEALTH BENEFITS OF 24%. AND THEN THERE WILL ALSO BE AN INCREASE ON THE BENEFITS FOR THE EMPLOYEES. DEPENDING ON WHAT PLAN THEY'RE ON, IT'LL BE EITHER BE A 5 OR 10% INCREASE TO THE EMPLOYEES. SO MAJOR ENHANCEMENTS TO THE GENERAL FUND HAVE KIND OF GONE THROUGH THE PERSONNEL ALREADY. SO I'M NOT GOING TO REHASH THAT. BUT YOU CAN SEE THE TOTAL IN THE GENERAL FUND FOR THE MARKET STUDY WAS 706,000. WE ARE CONTINUING TO EXPAND OUR IMPLEMENTATION OF OUR ERP SYSTEM. SO THERE'S ADDITIONAL MAINTENANCE THAT IS REQUIRED. AN ANNUAL MAINTENANCE COST. WITH THAT YOU SEE THAT ON THE SCREEN. AND THEN ONE OF THE EFFORTS THAT WE'RE GOING THROUGH IS TO HIRE A RISK MANAGEMENT CONSULTANT TO TAKE A LOOK AT OUR RISK MANAGEMENT PROGRAM, PUT A PLAN IN PLACE TO BETTER MANAGE THAT PROGRAM. IN THE BOTH ACTUALLY, THE BOTH PUBLIC SAFETY DEPARTMENTS, YOU CAN SEE THAT THERE IS AN INCREASE IN VEHICLE EXPENSE FUNDING. SO WE ARE HOLDING ON TO THOSE VEHICLES A LITTLE BIT LONGER. AND THAT NATURALLY INCREASES THAT VEHICLE EXPENSE. THERE IS AN ANIMAL IN DEVELOPMENT SERVICES. THERE'S ANIMAL SERVICE CONTRACT INCREASE. THIS WAS SPRUNG ON US LATE IN THE PROCESS LAST YEAR, WHERE WE WEREN'T ABLE TO BUILD IT INTO THE BUDGET. WE'VE ABSORBED THAT. AND SO WE'RE JUST GOING AND RECOGNIZING THAT IN THIS BUDGET PROCESS AND THEN. THE LAST THING I WANT TO MENTION ON THIS SLIDE IS IN COMMUNITY SERVICES. SO OPENING RAYMOND PARK AND IRRIGATING THAT THAT PARK, WE HAVE ABOUT 370,000 LISTED ON THERE. NOW ON THE DEBT SERVICE FUND. WE'RE ADDING SERIES 2025. THE TOTAL AUTHORIZED AMOUNT IS THAT 43.5 MILLION OF NEW MONEY. WE'RE JUST LOOKING AT 19.5. AND SO THE REST MAY BE A. A REFINANCED OF EXISTING DEBT. IS BOB WENT THROUGH WE HAVE 190 MILLION AVAILABLE FOR THE 2025 BOND ELECTION. THAT IS EIGHT YEARS

[00:40:04]

ON. OUR PROJECTIONS FOR THE DEBT SERVICE RATE, WE'VE ACTUALLY TAKEN THAT UP. SO IT WAS A LITTLE OVER 18. WE'VE TAKEN THAT TO ROUGHLY 18.3 ON THE DEBT SERVICE. NOW, WE DO HAVE POLICIES THAT GOVERN THIS. COUNCIL SAID THAT THE PORTION OF THE TAX RATE CANNOT EXCEED FOR 40% OF THE TAX RATE. THIS TAKES US UP TO 36% AS OF THE END OF 26, ALL GOING ACCORDING TO THIS PLAN WILL HAVE 268 MILLION OUTSTANDING TOTAL DEBT. THERE'S ALSO POLICY GOVERNING THAT. AS FAR AS THE OUTSTANDING TOTAL DEBT AS A PERCENTAGE OF TAXABLE ASSESSED VALUE, WE MUST STAY BELOW 4% DOING THIS CALCULATION. IT'S 2.12. AND THEN THE TOTAL OUTSTANDING DEBT PER CAPITA IS AT 4400. THIS IS THE PLAN THAT WE USE. THE LONG RANGE PLAN THAT WE USE. YOU CAN SEE AT THE BOTTOM THIS PLAN RIGHT HERE IS A NINE YEAR PLAN. AND YOU CAN SEE THE TOTAL ADDITIONAL CAPACITY FROM 2027 TO 2034 IS 200 MILLION. THAT'S AT NINE YEARS. AND SO WE HAVE PLENTY TO COVER THE PROJECTED BOND PROGRAM. AND THEN YOU CAN SEE ALONG THE LEFT HAND SIDE THE THIRD COLUMN OVER ARE ASSUMED GROWTH RATES. AND SO WE'RE BEING VERY CONSERVATIVE WITH THESE GROWTH RATES. AND SO IF THE GROWTH RATE WERE TO EXCEED WHAT WE'RE ASSUMING, OBVIOUSLY THAT WOULD CREATE MORE CAPACITY. AND AGAIN I JUST WANT TO GIVE A CAVEAT ON THIS. THIS IS SUBJECT TO CHANGE WITH THE CIP SUBCOMMITTEE. BUT CURRENTLY WE HAVE 59.6 MILLION IN TOTAL PROJECTS, WITH THE BULK OF THAT GOING TOWARDS STREET PROJECTS AND THEN SOME TO PARKS AND THEN FACILITY PROJECTS. SO DIGGING IN TO THAT 19.5 MILLION OF NEW MONEY THAT'S AUTHORIZED FOR THE SERIES 2025, WE CAN SEE THE PROJECTS THAT ARE LISTED RIGHT THERE. AND SO. AND THEN MOVING FORWARD, THE CAPITAL DEDICATED PORTION. SO AND WE'LL GET INTO THE TAX RATE OF THAT IN A LATER SLIDE. BUT WITH APPROXIMATELY 10.5 MILLION IN IN CAPITAL DEDICATED WHICH IS A PAY AS YOU GO FUNDING SOURCE. SO THIS IS CASH USED TOWARDS CAPITAL PROJECTS. WE DO HAVE A TRANSFER TO THE GENERAL FUND TO COVER THE PERSONNEL THAT ARE 100% DEDICATED TO CIP PROJECTS. THERE'S ABOUT TEN OF THOSE POSITIONS THAT WE'VE IDENTIFIED FOR FACILITIES. THERE'S TOWN HALL OPEN SPACE, WHICH IS MOST LIKELY SUBJECT TO CHANGE, AND THEN IN PARKS AND PUBLIC WORKS FACILITY PHASE ONE, WHICH IS THAT 5.4 MILLION. AND THEN LASTLY ON HERE WE HAVE A WEST SIDE INTERSECTION FOR FRONTIER AND D.A. AT 1 MILLION. AND THEN UNPROGRAMED SO FAR IS ROUGHLY 2.5 MILLION. OF COURSE, WHEN THE CIP SUBCOMMITTEE MEETS, THIS WILL BE PROGRAMED. LOOKING AT OUR PROPERTY VALUES. JUST THE HISTORICAL VIEW. THE BOTTOM ROW IN GREEN IS THIS CURRENT YEAR. WE ENDED UP AT 10.8 BILLION, WHICH IS A 12.3% INCREASE. NEW PROPERTY ACCOUNTED FOR ALMOST 8% OF THAT, WITH REAPPRAISALS ON EXISTING PROPERTY BEING AT THE 425,000 OR MILLION. SO JUST TO FAMILIARIZE THE AUDIENCE WITH SOME OF THE TERMS, THE NO NEW REVENUE TAX RATE IS GOING TO BE THE TAX RATE IN WHICH THE COUNCIL HAS TO ADOPT IN ORDER TO NOT INCREASE PROPERTY TAXES. WHEN WE COMPARE THE SAME PROPERTIES THAT WERE IN EXISTENCE IN THE PREVIOUS YEAR, THERE ARE SOME ADJUSTMENTS THAT ARE MADE. THIS IS A VERY COMPLICATED TAX FORM, AND THERE'S SOME ADJUSTMENTS THAT ARE MADE FOR NEW PROPERTY AND FOR TOURS. BUT IN TO SIMPLIFY IT AS MUCH AS I CAN, IT'S JUST COMPARING LIKE PROPERTY YEAR OVER YEAR. AND WHAT WOULD THE TAX RATE NEED TO BE TO RAISE THE SAME AMOUNT OF REVENUE? THE VOTER APPROVAL TAX RATE IS DOES THE CALCULATION OF THE NO NEW REVENUE RATE, BUT ONLY ON THE NO SIDE. SO THE OPERATION SIDE, IT ALLOWS YOU TO GROW THE OPERATIONS 3.5% AND THEN LEVY THE DEBT RATE THAT YOU NEED IN ORDER TO COVER THE PROPERTY TAXES. OR I'M SORRY, IN ORDER TO COVER THE DEBT SERVICE THAT WILL COME DUE IN IN THE NEXT YEAR.

LOOKING AT HOW THOSE CAME OUT, YOU CAN SEE THE CURRENT YEARS IN THAT MIDDLE COLUMN. NO NEW

[00:45:03]

REVENUE RATE OF $0.48, THE VOTER APPROVAL RATE OF 50.5 CENTS, THE DEBT RATE WE TOOK UP TO JUST SHY OF 18.3. AND WE ARE IN THIS PRELIMINARY DOCUMENT PROPOSING A 50.5 CENT TAX RATE. SO WANTED TO LOOK AT HOW THAT TAX RATE MOVED OVER TIME. AND SO I HAVE THE HISTORICAL TAX RATE BETWEEN THE GENERAL FUND, THE CAPITAL DEDICATED AND THE DEBT SERVICE CAPITAL DEDICATED WAS A NEW CONCEPT IN 23. WHEN IT WAS PUT IN PLACE, THEY TOOK 10.8 CENTS FROM THE GENERAL FUND AND MOVED IT OVER FOR PAY AS YOU GO FUNDING. WE'VE ROUGHLY STAYED AROUND $0.18 FOR THE DEBT SERVICE, AND THAT'S REALLY OUR TARGET RATE. BUT I WANT TO DRAW YOUR ATTENTION OVER TO THE MOST, RIGHT, TWO COLUMNS. SO 2526 IS HOW THE 26 PROPOSED TAX RATE BREAKS DOWN. AND THEN THE CHANGE FROM THE PREVIOUS YEAR. SO YOU CAN SEE THAT THE GENERAL FUND PORTION DID INCREASE A LITTLE BIT. THE CAPITAL DEDICATED DID COME DOWN THE 2.8, WITH MOST OF THAT GOING BACK OVER THE DEBT SERVICE. AND SO WHILE CAPITAL DEDICATED IS A CASH FUNDED TOWARDS CIP PROJECTS, SOME OF THAT TAX RATE WAS MOVED, BUT IT WAS MOVED TO THE DEBT SERVICE, WHICH STILL IN IN ALIGNMENT WITH STRATEGIC VISIONING. PRIORITY ONE ACCELERATES INFRASTRUCTURE. WHEN WE'RE LOOKING AT TAX RATES, WE LIKE TO COMPARE TO OTHER MUNICIPALITIES. NOW THIS DATA IS OF THE ADOPTION LAST YEAR, WITH THE EXCEPTION OF FRISCO, THEY HAVE INCREASED THEIR HOMESTEAD EXEMPTION RATE TO 20%. SO LOOKING AT HOW EVERYTHING WAS IN THE PREVIOUS YEAR, YOU SEE THE BREAKDOWN IN THE CAPITAL DEDICATED. HOW PROSPER IS UNIQUE IN THAT CAPITAL DEDICATED. SO FOR THE CURRENT YEAR WE HAVE THE $0.10 FOR NEXT YEAR. WE'RE PROPOSING TO TAKE THAT DOWN TO THE 9.72, WITH MOST OF THAT BEING TAKEN OVER INTO THE INS RATE FOR A TOTAL OF THE 50.5 CENTS. NOW, THERE IS AN IN EFFECT THAT THE HOMESTEAD EXEMPTION RATE HAS. AND SO PROSPER HAS ADOPTED A 17.5% HOMESTEAD EXEMPTION RATE. SO THAT REDUCES ESSENTIALLY THE TAX RATE OR THE AMOUNT THAT A HOMEOWNER WOULD NEED TO PAY. AND SO WE HAVE THE EQUIVALENCE DOWN THE RIGHT HAND SIDE. SO THIS IS THE EQUIVALENT TAX RATE THAT AN OWNER OCCUPIED HOME WOULD PAY. ONCE YOU INCLUDE THE IMPACT OF THE HOMESTEAD EXEMPTION RATE. AND WITH THE AVERAGE OF OUR COMPARISON CITIES JUST A LITTLE OVER 40.5, WE'RE AT 41.5. SO JUST $0.01 HIGHER. NOW, WHEN WE'RE LOOKING AT TAX RATES, I ALWAYS WANT TO TAKE A MOMENT TO REMIND EVERYONE THAT PROSPER IS NOT THE ONLY ENTITY THAT LEVIES PROPERTY TAXES. SO DEPENDING ON WHERE YOU LIVE WITHIN THE TOWN, THERE ARE THREE DIFFERENT OPTIONS THAT YOU COULD HAVE. WITH COLLIN COUNTY BEING ON THE FAR LEFT, DENTON COUNTY WITH PROSPER ISD IN THE MIDDLE, AND THEN DENTON COUNTY WITH DENTON ISD ON THE FAR RIGHT. AND YOU CAN SEE THE TOTAL TAX RATE THAT YOU WOULD BE SUBJECT TO. NOW, SWITCHING OUR FOCUS OVER TO OUR UTILITY FUNDS. SO WE ARE A DISTRIBUTION AND COLLECTION UTILITY. WHAT THAT MEANS IS WE DON'T CREATE THE WATER THAT WE SELL. WE ACTUALLY BUY THAT WATER FROM SOMEBODY ELSE. BUT WHEN WE'RE BUYING THAT WATER, WHAT WE'RE FACING IS A 14.9% INCREASE IN IN OUR COST OF BUYING THAT WATER TO RESELL. WE'RE ALSO MAKING SIGNIFICANT INVESTMENT INTO A WASTEWATER TREATMENT PLANT. AND SO IT'S COMING ONLINE IN A FUTURE YEAR. AND THEN WE'VE BEEN WORKING WITH A CONSULTANT TO MAKE SURE THAT THAT WE ARE BALANCED. SO CURRENTLY IN OUR RATE STRUCTURE OR IN OUR RATE STUDY, WE HAVE A PROPOSED INCREASE OF 6.26% ON THE WATER AND 15.08% ON THE WASTEWATER AND BLENDED. THAT WOULD BE ABOUT AN 8.8% INCREASE FOR THOSE SERVICES NEXT YEAR. SO LOOKING AT THESE WHOLESALE EXPENSES, YOU SEE IN 26, THAT 14.9% INCREASE. SO OF ALL THE EXPENSES THAT WE HAVE IN OUR WATER FUND, 62.4% OF THAT JUST GOES TO PAY FOR THE WATER. SO THE REST WOULD BE FOR US TO

[00:50:05]

MAINTAIN OUR INFRASTRUCTURE AND THE LIKE. NOW ON THE SEWER SIDE, WE HAVE TWO PROVIDERS, NORTH TEXAS AND UPPER TRINITY, AND YOU CAN SEE THAT WE'RE SEEING AN INCREASE IN THE TREATMENT COST UP TO 14%. AND THAT MAKES UP 40% OF OUR OUR BUDGETED FIGURES. SO AS I MENTIONED BEFORE, THERE'S A 6.26% INCREASE PROPOSED FOR THE WATER AND A LITTLE OVER 15% FOR THE WASTEWATER. NOW, WHEN WE'RE TALKING ABOUT INCREASES, WE WANT TO SEE HOW WE COMPARE TO OUR, OUR OUR SURROUNDING, OUR NEIGHBORS. AND SO WHAT YOU HAVE LISTED HERE IS MOSTLY NORTH TEXAS CUSTOMERS, WITH SALINA BEING AN UPPER TRINITY CUSTOMER. AND THESE ARE ALL THE CURRENT YEAR RATES BASED ON OUR AVERAGE USER. SO OUR AVERAGE USER USES ABOUT 13,000 GALLONS OF WATER, AND IT'S CHARGED FOR ABOUT 7000 GALLONS OF WASTEWATER. YOU CAN SEE OUR CURRENT RATE. WE ARE THE THIRD FROM THE LOWEST OF THIS LIST. AND WITH OUR PROPOSED RATE BEING INCREASED, IT DOES TAKE US MIDWAY. BUT I WILL CAUTION YOU THAT MOST OF THESE ENTITIES LISTED ON THIS WILL ALSO BE INCREASING THEIR RATES AS WELL.

AND THEN LOOKING AT THE OTHER FUNDS. SO THE SOLID WASTE FUND WAS CREATED IN 2023. THAT WAS DESIGNED TO BE A SELF-SUPPORTING THROUGH THE RATES. WE DO HAVE A FUND BALANCE POLICY THAT WE ARE WORKING UP TO THAT AMOUNT, SINCE THAT IS A NEWLY CREATED FUND FOR STORMWATER DRAINAGE. THIS IS ANOTHER ITEM THAT WILL REQUIRE COUNCIL ACTION. SO WE ARE PROPOSING A DOLLAR INCREASE ACROSS ALL RATE CATEGORIES. THERE'S THE TIER ONE RESIDENTIAL WHICH IS BELOW 10,000FT■!S, TAKS IT FROM $3 TO $4 FOR TIER TWO RESIDENTIAL THAT'S ABOVE 10,000FT■!S, TAKES IT FROM 515 O 615, AND THEN IT TAKES THE COMMERCIAL FROM $1 PER 1000FT■!S OF IMPERVIOUS SURFACE UP TO $2.

THE LAST TIME THAT RATE WAS INCREASED WAS 2018. AND OF COURSE, ON THE CIP FUNDS, BECAUSE I HAVEN'T SAID IT ENOUGH, THIS IS SUBJECT TO CHANGE. SO. AND THAT'S ALL I HAVE FOR THIS ITEM. I KNOW WE HAVE SEVERAL ITEMS ON HERE, BUT WE HAVE TO STOP FOR ANY QUESTIONS BEFORE WE. YEAH, BEFORE WE DO QUESTIONS, SINCE THIS IS THE BUDGET THAT THE TOWN MANAGER IS SUBMITTING TO THE COUNCIL, I'D LIKE TO HAVE HIM COMMENT FIRST. YES, SIR. MAYOR.

THANK YOU. THANK YOU, CHRIS, FOR YOUR PRESENTATION. YEAH, JUST A FEW COMMENTS. YOU KNOW, AS AS I KNOW THERE'S A LOT OF INFORMATION THAT'S BEING SHARED HERE, BUT BUT REALLY JUST THE OVERALL THEME HERE OF THIS BUDGET IS TO, TO ENSURE NOT ONLY FOR THE COUNCIL, BUT ALSO FOLKS LISTENING AND WATCHING AND OUR EMPLOYEES IS WHAT WE'RE WE'RE TRYING TO DO WITH THIS BUDGET IS TAKE CARE OF THE EMPLOYEES THAT WE HAVE CURRENTLY IN OUR EMPLOYMENT, WHICH ARE THE ONES THAT TAKE CARE OF OUR RESIDENTS, ALONG WITH THE PROGRAMING AND THE SERVICES THAT WE'RE PROVIDING. SECONDLY, AS, AS AS SHOWN ANY OF THE NEW POSITIONS THAT ARE BEING ADDED, THE VAST MAJORITY OF THOSE ARE PUBLIC SAFETY, OUR POLICE AND FIRE DEPARTMENT, AS WE OPEN NEW FIRE STATION, AS WE CONTINUE TO GROW IN OUR RETAIL SECTORS AND ADDING HOMES, AS WE ADD MORE PATROL OFFICERS, THAT'S BEEN THE VAST MAJORITY OF THE EMPHASIS THAT'S BEING GARNERED IN THIS BUDGET.

AND AGAIN, WE'RE GOING TO CONTINUE TO FOCUS ON THOSE THINGS BECAUSE OUR OUR COMMUNITY CONTINUES TO GROW. WE'RE ADDING MORE RETAIL. WE JUST OPENED A RIBBON CUTTING AT HEAVY TODAY, AND THEY OPENED FIRST THING TOMORROW MORNING. AND WITH THAT COMES TRAFFIC. WITH THAT COMES JUST ACTIVITY ALONG ALL ALL OVER OUR COMMUNITY. SO WE KNOW THAT WE'RE GOING TO HAVE CALLS FOR SERVICE. AND SO AS A RESULT, WE NEED TO MAKE SURE THAT WE'RE STAFFED UP FOR THOSE THOSE TIMES OF NEED. SO THAT'S WHERE THE EMPHASIS IS. AGAIN, WE'RE CONTINUING TO GROW. YOU'RE SEEING SOME OF THE COST PRESSURES THAT WE'RE HAVING WITH JUST PROVIDING UTILITIES FOR NOT ONLY OUR RESIDENTS, BUT ALSO NEW GROWTH WITH WATER AND WASTEWATER INFRASTRUCTURE. SO THAT'S WHERE WE'RE WORKING TOWARDS. AND AGAIN, THE CONTINUED PRESSURES THAT WE'RE SEEING THROUGH STATE LEGISLATION, WHERE WHERE CITY BUDGETS OR MUNICIPAL BUDGETS ARE BEING TIGHTENED. SO AS A RESULT, WE'RE HAVING TO FOCUS MORE OF OUR EFFORTS IN LOOKING AT FEES AND COSTS FOR SERVICES TO MAKE SURE THAT WE CAN MAINTAIN A BALANCED BUDGET AND MAINTAIN THE HIGH LEVELS OF SERVICE THAT NOT ONLY THE COUNCIL EXPECTS, BUT OUR RESIDENTS EXPECT. SO MAY I BE HAPPY TO ANSWER ANY QUESTIONS RELATED TO THE COMMENTS THAT THAT CHRIS HAD, OR ANY OTHER COMPONENTS OF THE BUDGET? THANK YOU. THANK YOU FOR THAT. THE SHORT VERSION IS TAKING CARE OF THE PEOPLE THAT WE HAVE AND BUILDING THE PUBLIC SAFETY SECTION THAT WE HAVE. I'LL OPEN IT UP FIRST TO OUR FINANCE

[00:55:01]

COMMITTEE MEMBERS WHO HAVE REVIEWED THIS SEVERAL DIFFERENT TIMES, WITH THE EXCEPTION OF THE CIP PORTION OF THINGS. SO MARCUS OR CHRIS, WHICH ONE DO YOU WANT TO START? YEAH. I'LL JUST I'D LIKE TO COMMENT THAT, YOU KNOW, FINANCE TEAM DID A GREAT JOB TO TAKE EVERYTHING AND BRING US A BALANCED BUDGET. SO THANK YOU WITH THAT. I KNOW IT'S A LOT OF WORK. JUST A FEW HIGHLIGHTS. YOU KNOW WE TALK ABOUT WATER RATES BEING ADJUSTED. SOME OF THE PREFERRED CITIES IN THERE THAT ARE MEMBERS GET PREFERRED RATES. AND SO I DON'T THINK THAT IS ALWAYS COMMUNICATED. SO IT'S IMPORTANT TO CALL THAT OUT. IT'S ON THE SLIDE WITH AN ASTERISK. EXACTLY. AND BUT YOU KNOW THE MEMBER CITIES DO OF WHICH YOU KNOW, THOSE WERE ESTABLISHED A LONG TIME AGO. BUT THE FACT THAT WE HAVEN'T RAISED RATES, 2018, I THINK IS ONE OF THE SLIDES YOU MENTIONED. WHAT THE LAST RATE INCREASE, THERE'S NOTHING THAT COSTS THE SAME AS IT DID IN 2018. SO I THINK A LOT OF THESE WHILE, YOU KNOW, WE'RE TRYING TO SPREAD AND BE VERY FIDUCIARY WITH OUR ACTIONS, IT IS THE RIGHT APPROACH. AND I JUST WANT TO COMMEND THE FINANCE TEAM, MY PEERS AND THE ACCOUNTING DEPARTMENT AND ALL THE WORK YOU GUYS HAVE DONE. THANK YOU. MARCUS HARRIS. YEAH, I'LL JUST ECHO THE SAME THING THAT WE'VE YOU KNOW, WE CONSISTENTLY HAVE OUR STRATEGIC PRIORITIES. I APPRECIATE YOU GUYS APPROACHING THE BUDGET THAT WAY. BOTH THE TOWN MANAGER AND THE FINANCE DEPARTMENT, IT FEELS LIKE WE'RE ADDRESSING THOSE THINGS. I MEAN THERE'S ALWAYS. PROPOSALS AND GIVE AND TAKE. AND I KNOW YOU A LOT OF WORK GOES INTO GETTING IT THIS FAR. AND I APPRECIATE WE APPRECIATE THE WORK. AND I CONTINUE TO SEE THAT WE'RE DOING VALUABLE THINGS FOR OUR COMMUNITY IN SUPPORT OF WHAT I FEEL LIKE OUR RESIDENTS WANT. SO SOMETIMES IT'S A DELICATE BALANCE. THERE'S A LOT OF STUFF WE'D RATHER DO ALL AT ONCE, BUT WE'RE TRYING TO DO IT IN A FISCALLY RESPONSIBLE MANNER AS WE GROW. SO I'M ENCOURAGED BY THE PROGRESS IN THIS BUDGET.

THANK YOU JEFF. THANK YOU NOT TO KEEP REPEATING EVERYTHING, BUT YEAH, IT'S YOU KNOW, I SEE SOME OF THE RATE INCREASES AND IT'S UNFORTUNATE, BUT IT IS THE TIME THAT WE'RE IN AND I YEAH, IT'S THE STANDARD I THINK THAT A LOT OF OUR RESIDENTS HAVE IS EXPECT. AND SO, YOU KNOW, THE FACT THAT WE'RE NOT RAISING TAXES. IS ALWAYS A PLUS IN MY BOOK. BUT AGAIN, YOU KNOW, THAT'S THE PROPERTY VALUES ARE GOING UP. SO YOU MIGHT SEE SOMETHING ALONG THOSE LINES. BUT OTHER THAN THAT YEAH I JUST LIKE I SAID, IT'S A SIGN OF THE TIMES. SO FORTUNATELY THAT'S KIND OF THE WHAT WE'RE DEALT WITH. OKAY. YEAH. GREAT. GREAT WORK. REALLY APPRECIATE ALL THE HARD WORK THAT STAFF HAS DONE. TO MAKE THIS CLEAR. THE ONE THING I'D LIKE TO SAY, I THINK IT PROBABLY IS A VERY GOOD THING. I SEEM TO REMEMBER OUR OUTSTANDING TOTAL DEBT PER CAPITA AT ONE POINT NOT TOO LONG AGO, BEING SOMETHING LIKE $55,500, AND IT LOOKS LIKE IT'S GONE DOWN. WHAT WHAT DO YOU ATTRIBUTE THAT TO? IS THAT PURELY GROWTH? IT WOULD BE GROWTH. POPULATION GROWTH. YEAH.

OKAY. WELL THAT'S THAT'S A GOOD SIGN BECAUSE I THINK, YOU KNOW, WHEN YOU LOOK AT SOME OF OUR NEIGHBORS AND LOOK AT DIFFERENT LEVELS OF GOVERNMENT, I DON'T THINK THEY CAN SAY THAT THEY'RE AT 44, 25 PER CAPITA. SO I THINK THAT'S VERY STRONG, STRONG PIECE. THAT'S REALLY ALL I HAD.

OKAY. THANK YOU. I KNOW COUNCILWOMAN BARTLEY HAS A COUPLE OF QUESTIONS, BUT THANKS I HAD I DO WANT TO POINT OUT MY COMMENT IS GOING TO BE AROUND HEALTH FUND. I CONTINUE TO BE.

COGNIZANT OF WHAT YOU'RE WORKING ON THERE. AND IT WILL BE THE FINAL BOW ON THIS PARTICULAR BUDGET. SO AND JUST FOR THE RECORD, I ALREADY MADE CONTACT WITH CAMERON DOESN'T HAVE ANYTHING. SO NOT TO LET ANYBODY THINK I OVERLOOKED MY COUNCIL MEMBER. SO WITH THAT I'LL LET YOU GO. OKAY. AND MY THINGS HAVE MY COUPLE THINGS HAVE PERTAIN TO CIP AND AS YOU SAID WE HAVEN'T MET. WE MEET TOMORROW. SO I THINK SOME OF THE FOR ANYBODY READING THIS, SOME OF THE PROJECTS LISTED IN HERE WILL CHANGE AS WE GET TO THE PROPOSED BUDGET. SO I APPRECIATE YOU POINTING THAT OUT. AND JUST FOR OUR COLLEAGUES, I THINK WE'LL DO ALL THAT TOMORROW. THE OTHER THING I WANT TO POINT OUT IS THAT IN THE PRIOR YEAR, WE HAD $0.10 OF OUR RATE TO CAPITAL DEDICATED. THIS YEAR IT WENT DOWN. ALTHOUGH THE NUMBER WAS SIMILAR TEN FIVE. HOWEVER, BECAUSE WE TRANSFERRED, I THINK I DIDN'T KNOW THE NUMBER EXACTL. TRANSFER INTO GENERAL FUND FROM CIP. ROUGHLY 1.5 MILLION. YEAH, 1.5 MILLION. ROUGHLY 1479. IT EFFECTIVELY TAKES US DOWN TO $0.08. SO NEXT YEAR, WHAT I WOULD LIKE TO SEE, AND IT IS WHAT IT IS FOR THIS YEAR. AND I UNDERSTAND THE REASONINGS. BUT WHAT I WOULD LIKE TO SEE IS FOR US TO GET BACK UP TO THE NINE AND A HALF TO $0.10, AS LONG AS WE ARE STILL DOING CAPITAL AT THE RATE THAT WE'RE DOING IT, WHICH IS PROBABLY FOR THE NEXT 6 TO 8 YEARS, TEN MAYBE JUST BECAUSE I THINK EVEN WITH THE

[01:00:06]

NEW BOND, IF IT PASSES AND OBVIOUSLY WHAT WE KNOW WITH 2020 BOND FUNDS, IT DOESN'T USUALLY COMPLETE THE PROJECT. WE TYPICALLY NEED TO TAKE FROM CAPITAL DEDICATED TO FINISH A PROJECT. SO AND I'M VERY PROUD OF THAT. THAT FUND WE'VE WE'VE BEEN VERY SMART WITH IT. I THINK DOING THE PUBLIC WORKS FACILITY WITH, WITH THAT MONEY HAS BEEN GREAT. AND SO I DON'T WANT TO SEE US SORT OF WHITTLING AWAY JUST YET. I KNOW EVENTUALLY IT WILL GO AWAY OR BE SIGNIFICANTLY REDUCED, BUT I DON'T THINK WE'RE THERE YET. SO THAT'S JUST MY SPEECH ON THAT. OKAY. THE OTHER SPEECH I WANT TO MAKE IS JUST VERY QUICKLY, I THINK FOR NEXT YEAR, THIS IS GOING TO BE A PROJECT FOR THE TOWN MANAGER'S OFFICE. I WOULD LIKE FOR US TO LOOK, I KNOW THAT WE ALWAYS LOOK AT MARKET RATES AND WE INCREASE AND WE TRY TO TAKE CARE OF OUR PEOPLE, AND I'M ALL FOR THAT. I WOULD LIKE FOR US TO LOOK AT OUR LEVELS OF EMPLOYMENT. SO WE'RE AT AROUND NINE PER THOUSAND. I WANT US TO LOOK AT OUR COMPARATOR CITIES AND SEE WHERE WE ARE IN RELATIONSHIP TO OUR COMPARATOR CITIES. AND IF WE ARE HIGH, WHERE ARE WE HIGH, WHAT DEPARTMENTS ARE WE HIGH AND WHY? BECAUSE TO ME, SOMETIMES THERE MIGHT BE A GOOD REASON. IT MIGHT BE PUBLIC SAFETY. WE'RE HIGHER THAN EVERYBODY ELSE. OKAY. THAT'S OKAY. WE CAN LIVE WITH THAT. WE ARE INVESTING IN PUBLIC SAFETY. BUT IF THERE ARE OTHER DEPARTMENTS WHERE WE'RE HIGHER THAN WE NEED TO BE, AND THAT'S A PLACE WHERE WE CAN CONSOLIDATE, I WOULD LIKE TO HAVE THAT DATA FOR THE NEXT FOR THE NEXT FISCAL YEAR. I THINK WE HAVE PLENTY OF TIME TO DO THAT, THAT WORK. SO THAT'S IT FOR ME. SO FOR THE RECORD, ON THE PUBLIC SAFETY THINGS, I WAS ON A PANEL A WEEK AGO WITH THE MAYOR OF IRVING, THE MAYOR OF RICHARDSON, AND THE MAYOR OF PLANO. AND I SAID THE ONE PROBLEM WE HAD IS WE HAVE TO WE HAVE TO COMPETE WITH YOU GUYS AS COMPARATOR CITIES AT TIMES. SO I BEG THEM TO QUIT RAISING THEIR SALARIES. THEY THEY DID NOT SEEM RECEPTIVE TO THAT AT ALL. SO, CHRIS, YOU HAD A COMMENT. I JUST WANTED TO POINT OUT TO YOU, I THINK STARTED THE BEGINNING OF THE CONVERSATION.

WE WERE TALKING ABOUT THE SALES TAX PROJECTIONS. I WOULD ENCOURAGE YOU IN THE IN THE FUTURE PRESENTATION ON HERE AND MAYBE EVEN IN THE PUBLIC HEARING, THE BUDGET SPECIFIC TOWN HALL, THAT WE KIND OF HIGHLIGHT THAT, BECAUSE THAT TENDS TO BE THE THING THAT I HEAR THE MOST FROM RESIDENTS. I THINK IT'S GOING UP ABOUT $1 MILLION IF I'M RECALLING FROM PERCENT. YEAH, IT'S YEAH, IN TOTAL IT'S 7.2%. BUT YES, IT'S VERY MINIMAL. OKAY. AND I THINK SO I THINK THE PERCEPTION IS THAT WE HAVE A LOT OF THESE THINGS COMING ONLINE OR HAVE COME ONLINE IN THE LAST COUPLE OF YEARS, AND IT'S THERE'S REASONS BEHIND IT. BUT I JUST I THINK AS FAR AS EXPLAINING IT, THAT'S ONE OF THE THINGS I HEAR THE MOST IS THAT, YOU KNOW, THAT WE'RE GETTING ALL OF THIS MORE MONEY FROM SALES TAX REVENUE. AND I KNOW SOME OF THAT'S A PROCESS AND SOME OF IT'S TOURS AND THAT KIND OF THING. BUT I JUST THINK MAYBE A LITTLE BIT CLEARER LAID OUT EXPLANATION OF THAT SPECIFIC TO SALES TAX IS GOOD FOR PEOPLE TO UNDERSTAND BECAUSE IT'S $1 MILLION, WHICH IS NOT INSIGNIFICANT. BUT ALSO WHEN YOU LOOK AT ALL THESE OTHER PROJECTS AND THINGS THAT WE'RE DOING, IT'S NOT AS SIGNIFICANT MAYBE, AS WE MIGHT WANT IT TO BE. YES. CAN I CAN I PIGGYBACK OFF OF THAT? BECAUSE JUST AS EQUALLY IMPORTANT IS ALSO MAKING SURE WE HIGHLIGHT THE DEBT RETIREMENT AND HOW IMPORTANT THAT IS FOR THE FINANCE COMMITTEE TO MAKE SURE THAT WE STRUCTURE A VERY BALANCED APPROACH TO TAKING DOWN AND REDUCING THE DEBT, YOU KNOW, IN THE WAY THAT WE'VE GONE ABOUT IT AND POSITIONED IT AS WE'RE ADDING AND TAKING ON MORE DEBT FOR CAPITAL IMPROVEMENTS. WE'RE VERY MINDFUL THAT AT A FUTURE STATE, YOU'RE NOT GOING TO HAVE, YOU KNOW, NEW ITEMS COMING ONLINE. AND SO WE'VE TAKEN A VERY TACTICAL APPROACH TO MAKE SURE THAT WE'RE REDUCING THAT DEBT. AND I THINK THAT OUR BOND RATING REFLECTS THAT. SO IT'S VERY IMPORTANT THAT WE HIGHLIGHT THOSE GAINS. YOU KNOW $0.18 IS A LOT WHEN YOU BALANCE IT ALL OUT. SO I'M VERY PROUD THAT WHEN YOU LOOK AT OTHER COMPARISON CITIES THAT THAT'S A PRIORITY FOR THIS FINANCE COMMITTEE AND FOR THIS COUNCIL TO REDUCE THAT DEBT.

THANK YOU. SORRY, I'M LOOKING UP SOMETHING REAL QUICK. I BELIEVE YOU'RE ALLOWED TO DO THAT. YEAH.

WELL I'LL BRING I'LL BRING IT BACK TO STAFF IN A LITTLE BIT OR MAY COME UP IN ONE OF THE LATER ITEMS. SO IS THERE ANY OTHER COMMENTS ON THIS PARTICULAR ITEM FOR THE BUDGET? OKAY. I BELIEVE THAT WE HAVE TO TAKE ACTION. THERE IS NO ACTION ON THIS FIRST ITEM. IT'S JUST TO RECEIVE THE BUDGET TRANSMITTAL. ALRIGHT. THANK YOU. THEN WE'LL MOVE ON TO AGENDA ITEM NUMBER 14, WHICH IS

[14. Consider and act upon accepting submission of the tax year 2025, fiscal year 2025 2026, no-new-revenue tax rate of $0.482348 per $100 taxable value, voter-approval tax rate of $0.505000 per $100 taxable value, and preliminary property tax rate of $0.505000 per $100 taxable value. (CL) ]

TO CONSIDER AND ACT UPON ACCEPTING SUBMISSION OF THE TAX YEAR 2025. FISCAL YEAR 20 2526.

NO NEW REVENUE TAX RATE OF 0.482348 PER $100 OF TAXABLE VALUE. VOTER APPROVAL TAX RATE OF 0.505 PER $100 OF TAXABLE VALUE, AND PRELIMINARY PROPERTY TAX RATE OF 0.505 PER $100 OF

[01:05:02]

TAXABLE VALUE. CHRIS. SO THIS ITEM IS SIMPLY FOR THE COUNCIL TO RECEIVE THE OFFICIAL CALCULATION. THAT'S THAT'S DONE BY THE COUNTY. AND OKAY. THERE IS A MOTION. DOES ANYBODY ANYBODY THAT WAS IN THE PACKAGE, DID ANYBODY HAVE ANY QUESTIONS ON THAT PARTICULAR ITEM. OKAY.

DO I HAVE A MOTION I MOVE TO ACCEPT THE SUBMISSION OF TAX YEAR 2025. NO NEW TAX REVENUE RATE OF 0.482348 FOR $100. TAXABLE VALUE. VOTER APPROVAL TAX RATE OF 50.5 CENTS PER $100 VALUE. TAXABLE VALUE AND PRELIMINARY PROPERTY TAX RATE OF 0.505 PER 100 TAXABLE VALUE.

OKAY. MOTION BY MARK SECOND BY AMY BARTLEY. SORRY. ALL IN FAVOR? MOTION PASSES

[15. Consider and act upon a proposed FY 2025-2026 property tax rate. (CL) ]

UNANIMOUSLY. AGENDA ITEM NUMBER 15. CONSIDER AND ACT UPON A PROPOSED FY 2025 2026 PROPERTY TAX RATE. SO, MAYOR, THIS IS A NOT TO EXCEED RATE. SO UNDER NO CIRCUMSTANCES WILL THE COUNCIL CONSIDER A TAX RATE THAT'S ABOVE THE 50.5 CENTS. THIS IS A RECORD VOTE. AND AS I MENTIONED BEFORE ON THE PROPOSED MOTION, IT DOES SAY SEPTEMBER 9TH, IF YOU SO CHOOSE TO HAVE THIS ON A SPECIAL CALLED MEETING SEPTEMBER 16TH, THAT WILL NEED TO BE CHANGED. OKAY. DID ANYONE HAVE ANY COMMENTS ON THIS PARTICULAR ITEM? DOES ANYONE WOULD LIKE TO MAKE A MOTION? INDICATED? I'D LIKE TO MOVE TO PLACE A PROPOSAL TO ADOPT THE FY 20 2526 TAX RATE OF 50.5 CENTS PER $100 OF VALUATION ON SEPTEMBER 16TH, 2025. TOWN COUNCIL AGENDA SECOND SECOND AMY BARTLEY. ALL IN FAVOR? THIS HAS TO BE A RECORD VOTE RECORD. I'M SORRY. I'M GOING TO START FROM THE LEFT TO THE RIGHT. CAMERON REEVES FOR. YEAH. NOT TO EXCEED FOR AND FOR. THANK YOU FOR THAT CATCH. ALL RIGHT. THANK YOU. THAT MOTION PASSES SEVEN ZERO. NEXT AGENDA ITEM IS AGENDA ITEM NUMBER 16.

[16. Consider and act upon scheduling a Public Hearing on the FY 2025-2026 Proposed Budget. (CL)]

CONSIDER AND ACT UPON SCHEDULING A PUBLIC HEARING ON THE FY 20 2526 PROPOSED BUDGET. CHRIS MAYOR. THIS IS SETTING THE PUBLIC HEARING FOR SEPTEMBER 16TH AND APPROVING THE NOTICE THAT WILL NEED TO BE ADJUSTED TO REFLECT TUESDAY, SEPTEMBER 16TH, AS THE PUBLIC HEARING ON THE BUDGET. OKAY. QUESTIONS? COMMENTS? ANYBODY WANT TO MAKE A MOTION? JEFF. MOTION. SURE. I MOVE TO SCHEDULE A PUBLIC HEARING ON THE FY 2025 2026 PROPOSED BUDGET FOR SEPTEMBER 16TH, 2025 6:15 P.M. WITH THE MEETING TAKING PLACE IN COUNCIL CHAMBERS OF PROSPER TOWN HALL, LOCATED AT TWO 250 WEST FIRST STREET, PROSPER, TEXAS. THANK YOU. SECOND CAMERON REEVES AND THIS ONE CAN BE A REGULAR VOTE, CORRECT? YES, YES. ALL IN FAVOR? MOTION PASSES UNANIMOUSLY. THANK

[17. Consider and act upon scheduling a Public Hearing on the proposed Fiscal Year 2025 2026 tax rate. (CL)]

YOU. AGENDA ITEM NUMBER 17. CONSIDER AND ACT UPON SCHEDULING A PUBLIC HEARING ON THE PROPOSED FISCAL YEAR 2025 2026 TAX RATE. CHRIS. THANK YOU. MAYOR. THIS IS SCHEDULING THAT PUBLIC HEARING FOR SPECIFICALLY THE TAX RATE. OKAY. ANY COMMENTS OR QUESTIONS? SO CAMERON, DO YOU HAVE A MOTION? I DO HAVE A MOTION. HOLD ON ONE SECOND. SORRY. I MOVED TO SET THE PUBLIC HEARING ON THE PROPOSED TAX RATE FOR SEPTEMBER 9TH, 16 FIVE. WHAT'S THAT? 16TH. YEAH. NOT OH AM I LOOKING. YES.

OH THAT'S 16. YOU'RE ON THE RIGHT PAGE. WE JUST NEED TO MOVE IT TO THE 16TH. OH TO THE. OH I SEE WHAT YOU'RE SAYING. SORRY. I MOVED TO SET A PUBLIC HEARING ON THE PROPOSED TAX RATE FOR SEPTEMBER 16TH, 2025 AT 615, WITH THE MEETING TAKING PLACE IN COUNCIL CHAMBERS FOR PROSPER TOWN HALL, LOCATED AT 250 WEST FIRST STREET, PROSPER, TEXAS. I'LL SECOND THE MOTION.

SECONDED. CRAIG. AND ALL IN FAVOR. MOTION PASSES UNANIMOUSLY. THANK YOU VERY MUCH, CHRIS. I BELIEVE YOU'RE DONE. I AM, THANK YOU. GOOD JOB CHRIS. APPRECIATE IT. OKAY. BUT

[18. Conduct a Public Hearing to receive public comments concerning the amendment of the land use assumptions and capital improvements plan, and the imposition of an impact fee for water, wastewater, and roadway utilities. (DLH)]

OUR NEXT AGENDA ITEM IS AGENDA ITEM NUMBER 18, WHICH IS YEAH. TO CONDUCT A PUBLIC HEARING TO RECEIVE PUBLIC COMMENTS CONCERNING THE AMENDMENT OF THE LAND USE ASSUMPTIONS AND CAPITAL

[01:10:02]

IMPROVEMENTS PLAN AND IMPOSITION OF IMPACT FEE FOR WATER, WASTEWATER AND ROADWAY UTILITIES. SO THIS IS A PUBLIC HEARING. AND THERE IS A ASK AT THE END OF THIS TO GIVE DIRECTION I BELIEVE SO OKAY. DAN, MAYOR COUNCIL, AS YOU STATED, THIS IS A PUBLIC HEARING TO DISCUSS OUR PUBLIC COMMENT ON OUR AMENDMENTS TO FUTURE. I'M SORRY TO THE LAND USE ASSUMPTIONS, CAPITAL IMPROVEMENTS, PLANS AND THEN IMPOSING OUR IMPACT FEE RATES FOR WATER, WASTEWATER AND ROADWAY UTILITIES. THERE'S KIND OF A DESCRIPTION OF THE PROCESS IN YOUR PACKETS, BUT I THINK I'M I THINK IT JUST DO JUSTICE BY TURNING IT OVER TO THE CONSULTANTS I GOT WITH US, EDDIE HAAS AND TEAM FROM FREESE NICHOLS, WHO'S GOT A PRESENTATION TO GO OVER A LOT OF THE DETAILS FOR YOU. SO I'M GOING TO TURN IT OVER TO THEM.

THANK YOU AND WELCOME. OKAY. VERY GOOD. GOOD EVENING, EDMUND HAAS. FREESE NICHOLS WITH ME TONIGHT IS ANDREA MEYER. ANDREA LED THE TECHNICAL WORK ON THE WATER AND WASTEWATER COMPONENT OF THE IMPACT FEE PROGRAM. BRIAN CROOKS LED THE ROADWAY COMPONENT, THE TECHNICAL WORK THERE. AND REALLY, WHAT WE HAVE TONIGHT IS THE DISCUSSION OF THE UPDATE TO THE PROGRAM BY LAW.

CHAPTER 395, AN UPDATE HAS TO BE CONDUCTED AT LEAST EVERY FIVE YEARS. THE REPORTS HAVE BEEN COMPLETED AND MADE AVAILABLE FOR THE REQUIREMENTS OF 395. THE NOTICING ALSO IS COMPLIED WITH THE REQUIREMENTS SET FORTH IN 395 FOR THIS PUBLIC HEARING. AND YOU KNOW, WE'RE GOING TO BE GOING OVER SOME TECHNICAL STUFF. EALLY, WHAT OUR WORK BOILS DOWN TO IS WHAT DOES IT COST TO PUT A UNIT OF INFRASTRUCTURE ON THE GROUND? AND WHAT WE'RE TALKING ABOUT SPECIFICALLY IS THE ROAD, THE WATER AND THE WASTEWATER IMPACT FEE ELEMENTS. FROM THERE, IT'S IT BECOMES A POLICY DECISION ON WHAT THE TOWN COUNCIL FEELS APPROPRIATE TO COLLECT. WE'LL IDENTIFY THE MAXIMUM THAT YOU COULD COLLECT. YOU ALL BY POLICY, IDENTIFY WHAT THAT CHARGE WOULD BE TO NEW DEVELOPMENT THAT WOULD COME BEFORE US BEFORE TO THE TOWN OF PROSPER AND WHAT THAT COLLECTION RATE OUGHT TO BE. SO WHY UPDATE? AS I MENTIONED EARLIER, THE 395 IDENTIFIES THE REQUIREMENTS SET FORTH FOR THAT. AND IT'S CONDUCTED AT LEAST EVERY FIVE YEARS. METHODOLOGICALLY, NOTHING HAS REALLY CHANGED. WE'RE USING THE SAME SERVICE UNITS, THE METERS FOR THE WATER WASTEWATER.

WE'RE USING THE SAME SERVICE UNITS FOR THE ROADWAY. THAT'S THE VEHICLE MILE. OUR SERVICE STRUCTURE IS THE SAME. NOTHING HAS CHANGED THERE. SO IT'S MAINLY AN UPDATE ON PROJECTS THAT HAVE BEEN COMPLETED, NEW PROJECTS THAT HAVE BEEN ADDED, THE COST OF THOSE PROJECTS THAT ARE NECESSITATED BY GROWTH. TALK ABOUT THAT IN A MINUTE. AND THEN IT BOILS DOWN TO A COST PER SERVICE UNIT, AND THEN HOW THAT'S APPLIED TO NEW DEVELOPMENT IN THE IMPACT FEE CALCULATION. SO FOR THE BENEFIT OF THE PUBLIC ON WHAT AN IMPACT FEE IS, IT'S A ONE TIME CHARGE TO NEW DEVELOPMENT FOR INFRASTRUCTURE CAPACITY THAT IS CONSUMED BY DEVELOPMENT APPLICATION. STAFF RECEIVES A DEVELOPMENT PROPOSAL FOR 125,000FT■!S OF SHOPPING CENTER, OR 500 UNIT RESIDENTIAL DEVELOPMENT. THERE'S AN IMPACT THAT THAT DEVELOPMENT PUTS ON THE INFRASTRUCTURE NETWORK. THE HIGHER THE IMPACT, THE HIGHER THE FEE. OKAY PROJECTS ARE IDENTIFIED ON THE IMPACT. VCP ARE BOTH NEW PROJECTS, NEW CAPACITY ENHANCING PROJECTS, NEW NEW ROADWAYS, ROAD WIDENINGS, THOSE NEW NEW LANES. THEY COULD ALSO BE RECOUPMENT PROJECTS, PROJECTS THAT WERE RECENTLY COMPLETED. WE'RE COLLECTING THE COST OF THOSE EXCESS THAT EXCESS CAPACITY THAT'S ALLOWABLE BY LAW. THINGS THAT CAN BE PAID FOR IS REALLY BASICALLY TO PUT THE APPURTENANCES ON THE GROUND. NEW CAPITAL FACILITIES, ONLY CAPITAL CAPACITY ENHANCING FACILITIES, THINGS THAT CAN'T BE INCLUDED ARE PROJECTS THAT ARE NOT ON THE SPECIFIC IMPACT FEE CIP LIST.

OKAY, ONLY NEW CAPITAL. THINGS LIKE OPERATIONS AND MAINTENANCE CANNOT BE INCLUDED. WE'RE ONLY TALKING ABOUT PUTTING THOSE APPURTENANCES ON THE GROUND BY WAY OF PROCESS. IT'S REALLY A METHODOLOGICAL PROCESS THAT'S UNDERTAKEN. WE IDENTIFY HOW WE SEE PROSPER GROWING OVER A TEN YEAR WINDOW. THOSE ARE CALLED LAND USE ASSUMPTIONS. WE IDENTIFY CAPITAL FACILITIES THAT ARE GOING TO BE NECESSITATED OVER THIS TEN YEAR WINDOW. AND THEN FROM THERE WE DO THE COST PER SERVICING CALCULATION, THE DOCUMENTATION, AND THEN OBVIOUSLY THE PUBLIC HEARING TO CLOSE THE WHOLE UPDATE PROCESS BY WAY OF SERVICE AREA STRUCTURE. AS I MENTIONED EARLIER, THEY HAVEN'T CHANGED. BUT I DO WANT TO POINT OUT THAT THERE IS A LITTLE WRINKLE BETWEEN ROADS AND WATER, WASTEWATER, WATER, WASTEWATER. YOU'RE ALLOWED THE ENTIRE SERVICE AREA OF YOUR COMMUNITY. SO YOU HAVE YOUR CITY LIMITS FOR THE WATER, THE WASTEWATER, AND YOUR ETJ THE DONUT HOLE. BUT BY LAW ON ROADS, THOSE SERVICE AREAS CAN'T BE GREATER THAN SIX MILES, AND THEY CAN ONLY INCLUDE AREAS WITHIN YOUR CITY LIMITS. SO THE DONUT HOLE AND THE WESTERN PART OF SERVICE AREA TWO IS EXCLUDED FROM THE CALCULATION. BUT THIS IS THE SAME STRUCTURE THAT'S BEEN PREDICATED SINCE THE 27 PROGRAM. IT IS 2010 PROGRAM. IT WAS SO

[01:15:03]

MONEYS THAT HAVE BEEN COLLECTED BY SERVICE AREA ARE USED TO FUEL PROJECTS IN THOSE SPECIFIC SERVICE AREAS. THIS IS TO ENSURE THAT MONEYS COLLECTED ARE ARE GOING FOR PROJECTS IN THE VICINITY OF WHERE DEVELOPMENT IS OCCURRING. WE'RE NOT COLLECTING MONIES ON ONE SIDE OF THE TOWN, SO ANYTHING ON THE OTHERS. IN THE CASE OF ROADS, YOU HAVE A LITTLE MORE FLEXIBILITY WITH THE WATER WASTEWATER COMPONENT BECAUSE YOU'RE IN ONE SERVICE AREA. OKAY. SO BY WAY OF LAND USE ASSUMPTIONS, THIS IS FOR THE TEN YEAR PLANNING PERIOD 2023 THROUGH 2033. AND WE LOOKED AT REALLY TWO ELEMENTS RESIDENTIAL AND NONRESIDENTIAL DEVELOPMENT PRIMARILY ON THE ROADSIDE.

THERE'S DIFFERENT TRAVEL CHARACTERISTICS FOR OFFICE COMMERCIAL RETAIL THAN THERE IS FOR RESIDENTIAL. NONETHELESS THOUGH THE WATER WASTEWATER TEAM, THEY DO NEED TO KNOW WHAT KIND OF ACTIVITIES OCCURRING BY THE RESIDENTIAL AND THE NONRESIDENTIAL SO THEY CAN FORECAST APPROPRIATE NUMBER OF METERS ANTICIPATED TO OCCUR OVER THIS TEN YEAR PLANNING PERIOD.

SO WHAT WE'RE WHAT THE WORK IS ROOTED IN COMPREHENSIVE PLAN DATA. IT'S THE SAME DATA THAT WAS USED IN THE WATER AND WASTEWATER MASTER PLANNING PROCESS. SO WE'RE KIND OF ALIGNING WITH ALL THE CURRENT AND SAME PLANNING THAT THAT INFORMS THOSE MASTER PLANS. THIS IS A FINANCE TOOL. OUR PROJECTS ARE ROOTED IN YOUR MASTER PLANS. BUT SO THE TEN YEAR FORECAST HAS REALLY ABOUT 2200 ACRES OF DEVELOPMENT THAT'S GOING TO OCCUR OVER THE TEN YEAR WINDOW.

THAT'S GOING TO BE THROUGH BOTH RESIDENTIAL, OFFICE, INDUSTRIAL AND RETAIL COMMERCIAL TYPE ACTIVITIES. THIS MAP KIND OF TALKS ABOUT, AND IT'S DOCUMENTED IN THE REPORT WHERE THE GROWTH IS GOING TO BE OCCURRING BY SERVICE AREA OR MORE REFINED IN THE ROADS, THE TRAFFIC ANALYSIS AREAS, OR LITTLE SUBAREAS WITHIN THE LARGER SERVICE AREA BOUNDARY. SO WE GOT ABOUT 2200 ACRES OF DEVELOPMENT THAT'S ANTICIPATED OVER THE TEN YEAR WINDOW WE LOOKED AT IN FORECASTING THE TEN YEAR GROWTH, HOW HAVE WE GROWN HISTORICALLY? WHAT TYPE OF GROWTH AND DEVELOPMENT PROPOSALS ARE ANTICIPATED, THOSE THAT ARE BOTH IN THE PIPE OR ANTICIPATED BY STAFF OVER THE TEN YEAR WINDOW. SO WE OVERALL SINCE 2014, 2015, WE'VE EXPERIENCED ABOUT 11% GROWTH POPULATION WISE FROM A COMPOUND ANNUAL GROWTH RATE. WE SEE ABOUT A 7% GROWTH GROWTH FOR THE FIRST FIVE YEARS, AND THEN KIND OF A LEVELING OFF IN THE LAST FIVE YEARS OF THE TEN YEAR WINDOW. IF, YOU KNOW, WE DISCUSSED THIS QUITE A BIT WITH STAFF, YOU KNOW, THAT'S WHY THE PROGRAM IS UPDATED EVERY FIVE YEARS, AT LEAST EVERY FIVE YEARS, IF THERE'S A CHANGE IN GROWTH FOR GREATER GROWTH OR LESS GROWTH, THAT CAN BE AMENDED AS THE PROGRAM IS UPDATED. SINCE WE'RE ON A UNIT COST BASIS, THERE'S KIND OF A SAVING GRACE IN THERE IN THAT IF WE OVERSHOOT OR UNDERSHOOT LÜ, WE HAVE A WAY TO RECOVER FOR THAT. OKAY. OKAY. SO WE'RE ANTICIPATING ABOUT 25,500 NEW RESIDENTS OVER THE TEN YEAR PLANNING PERIOD. THAT'S A LITTLE OVER 8500 DWELLING UNITS. SO THAT WAS KIND OF THAT BECOMES THE DENOMINATOR IN OUR COST PER SERVICE UNIT CALCULATION. WE'LL TALK ABOUT THAT MORE HERE IN JUST A MINUTE. SO WITH THAT I'M GOING TO IF THERE'S NO QUESTIONS ON THE ON THE WE'RE GOING TO HIGHLIGHT THE CIPS THAT WERE IDENTIFIED. YOU ALL HAVE SEEN THIS AS PART OF THE I'M SORRY THE STAFF HAS SEEN THIS AS PART OF THE OUR REVIEW, BUT ALSO THE CAPITAL IMPROVEMENTS ADVISORY COMMITTEE HAS SEEN BOTH GROWTH RATES AND THE CAPITAL IMPROVEMENT PLANS, AND THAT YOU HAVE THEIR RECOMMENDATION FROM THAT PROCESS. SO I'M GOING TO TURN IT OVER TO ANDREA TO TALK ON THE WATER AND WASTEWATER CIPS. AND THEN WE'LL MOVE FORWARD ON THE ROADS, THEN REALLY GET TO THE MEAT OF THE DISCUSSION ON THE COST PER SERVICE UNIT CALCULATION AND WHAT THAT MEANS IMPACT FEE WISE. CAN YOU. SORRY, I DON'T MEAN TO INTERRUPT YOU. CAN YOU GO BACK TO THAT SLIDE YOU HAD THAT WAS LAND USE? I JUST HAVE A QUICK QUESTION. YOU BET. SO AS YOU KNOW, FROM LOOKING AT PROSPER, A LOT OF THE WEST SIDE OF OUR FAR WEST SIDE IS UNDEVELOPED. AT THIS POINT IN OUR COMP PLAN. IT SOUNDS LIKE THAT'S WHAT YOU USE TO DETERMINE, YOU KNOW, SORT OF SOME OF THESE CALCULATIONS. IT'S MEDIUM DENSITY RESIDENTIAL, HOWEVER OR IT'S YEAH, IT'S MEDIUM DENSITY, I BELIEVE. SO A LOT OF DEVELOPERS COME TO US AND WANT MORE DENSITY. RIGHT. SO CAN YOU DOES THAT IMPACT IF WE IF WE CHANGE THE DENSITY ON SOME OF THESE, HOW DOES THAT IMPACT YOUR CALCULATIONS? SINCE WE'RE LOOKING AT A TEN YEAR WINDOW, UNLESS THE WHOLE TOWN WENT FROM LOW RESIDENTIAL TO MEDIUM OR HIGH, THERE REALLY WOULDN'T HAVE THAT MUCH OF AN IMPACT OVER BECAUSE WE'RE GOING TO BE LOOKING AT IT YEAR FOR THE REVIEW STARTS AGAIN FOR THE FIVE YEAR UPDATE. SO THERE'S ENOUGH BUILT IN THAT IF THINGS WERE TO CHANGE DRAMATICALLY, THEN WE WOULD BE ABLE TO CAPTURE THAT NUMBER ONE. BUT NUMBER TWO, IF WE SAW SOMETHING THAT WAS DRASTICALLY DIFFERENT, THAT MIGHT CAUSE CONCERN ON THE IMPACT FEE PROGRAM AND THE CAPACITY NEEDED TO ADDRESS GROWTH THAT COULD TRIGGER AN UPDATE SOONER THAN FIVE YEARS. OKAY. WE THINK WE HAVE IT

[01:20:01]

COVERED. WE'RE NOT. WE HEARD THAT THERE MAY BE SOME WRINKLES IN SOME OF THE INTENSITIES AND TYPE OF DEVELOPMENT ACTIVITY. REALLY PROBABLY NOT ENOUGH TO REALLY CAUSE CONCERN OF HAVING TO REDO THE ALLEYWAY THAT'S BEEN PREPARED TO DATE. OKAY. THANK YOU. YOU BET. ANY OTHER QUESTIONS ON LÜ? OKAY. ALL RIGHT. ANDREA. SO TO GO OVER THE PROCESS WE WENT THROUGH TO ARRIVE AT THE MAXIMUM ALLOWABLE IMPACT FEES FOR WATER AND WASTEWATER, WE STARTED WITH THE MASTER PLAN FOR THE WATER AND WASTEWATER SYSTEMS. SO WE HAVE HYDRAULIC MODELS OF THE WATER AND WASTEWATER SYSTEMS, AND WE USE THE POPULATION AND LAND USE ASSUMPTIONS FROM THE COMP PLAN TO PLUG THAT INTO OUR MODEL IN THE EXISTING AND FUTURE SYSTEMS. AND SO THE RESULT IS A CIP LIKE THE ONE YOU SEE IN FRONT OF YOU. SO THIS IS OUR RECOMMENDED CIP FOR THE WATER SYSTEM THROUGH THE NEXT TEN YEARS. AND AS YOU CAN SEE SO THE BLACK LINES ON THIS MAP ARE EXISTING WATER LINES.

THE RED AND BLUE LINES ARE PROPOSED PROJECTS AND THE ORANGE LINES ARE EITHER EXISTING PROJECTS THAT WERE RECENTLY CONSTRUCTED OR PROJECTS THAT ARE CURRENTLY UNDER DESIGN OR UNDER CONSTRUCTION THAT HAVE EXCESS CAPACITY TO SERVE GROWTH WITHIN THE NEXT TEN YEARS. SO THEREFORE THEY CAN BE CONSIDERED IN OUR IMPACT FEE CALCULATIONS. AND AS YOU CAN SEE, A LOT OF THESE PROJECTS ARE CONCENTRATED ON THE WEST SIDE OF THE TOWN. AND WE HAVE A SIMILAR MAP FOR THE WASTEWATER SYSTEM, AS WE CAN CONTINUE TO SEE GROWTH IN THE WEST SIDE OF THE TOWNS WHERE A LOT OF OUR PROJECTS ARE CONCENTRATED. SO TO CALCULATE THE MAXIMUM ALLOWABLE IMPACT FEES, WE TAKE THE ELIGIBLE CIP COSTS FROM THOSE PROJECTS THAT HAVE CAPACITY TO SERVE GROWTH IN THE NEXT TEN YEARS. AND WE DIVIDE THAT BY THE NEW SERVICE UNITS, WHICH ARE CALCULATED BASED ON METER SIZES AND POPULATION PROJECTIONS, WHICH I'LL TOUCH ON IN THE NEXT SLIDE.

AND THEN WE APPLY OUR 50% CREDIT TO DEVELOPERS TO ARRIVE AT OUR MAXIMUM ALLOWABLE IMPACT FEE. SO TO CALCULATE THE SERVICE UNITS FOR WATER AND WASTEWATER BASED ON METER SIZE. SO FOR PROSPER RESIDENTIAL DEVELOPMENT, A ONE INCH METER IS A STANDARD SERVICE UNIT. SO FOR NON DEVELOPMENTS WITH LARGER METERS THE IMPACT FEE CALCULATION IS. SO WE TAKE THE BASE MAXIMUM ALLOWABLE IMPACT FEE FOR THE ONE INCH METER. AND WE SCALE IT UP BASED ON THE RATED FLOW THROUGH THE LARGER METERS. SO THE RATE OF FLOW THROUGH THE ONE INCH METER WOULD BE THE DENOMINATOR. AND THEN DEPENDING ON HOW BIG THE DEVELOPMENT IS, THE MAXIMUM ALLOWABLE IMPACT FEE WOULD INCREASE PROPORTIONAL TO THE METER SIZE, ESSENTIALLY. SO ARRIVING AT OUR MAXIMUM ALLOWABLE IMPACT FEE CALCULATION. SO THE CURRENT COMBINED WATER AND WASTEWATER IMPACT FEE FOR THE TOWN IS $6,643, AND THAT WE ADOPTED THE MAXIMUM ALLOWABLE LAST TIME. SO THE NEW MAXIMUM ALLOWABLE IMPACT FEE WOULD BE $14,390. AND AS WAS TOUCHED ON PREVIOUSLY, A LOT OF THIS IS DUE TO INCREASING CONSTRUCTION COSTS OVER THE LAST FEW YEARS, AND PARTICULARLY ON THE WASTEWATER SIDE, THE COSTS ASSOCIATED WITH THE NEW OPPORTUNITY WASTEWATER TREATMENT PLANT. SO AS YOU CAN SEE IN THE TABLE, AS WE START WITH OUR BASE CIP COSTS, WE APPLIED FINANCING COSTS OVER THE NEXT TEN YEARS, I THINK AT 4%, TO ARRIVE AT OUR TOTAL ELIGIBLE COSTS AND THEN OUR OUR TEN YEAR SERVICE UNITS AS A DENOMINATOR, DIVIDING THE TOTAL COST BY SERVICE UNITS, WE ARRIVE AT OUR MAXIMUM IMPACT FEE PER SERVICE UNIT WITHOUT THE CREDIT. AND THEN APPLYING THE 50% IS WHERE WE GET TO THE $5,969 FOR WATER AND $8,421 FOR WASTEWATER PER SERVICE UNIT. CAN WE CAN I ASK A QUESTION SO I CAN FOLLOW YOUR MATH? SORRY, I GET THE DIVIDE ALL THAT OUT. GET TO THE MAXIMUM IMPACT FEE PER SERVICE UNIT WITHOUT CREDIT. SO YOU GET TO 16,000. THE CREDIT.

SO THEN WE GIVE A CREDIT. AND WHAT IS THE CREDIT IS A NEGOTIABLE NUMBER I THINK. YEAH.

SO IN THE HISTORY HERE BACK IN 2011 THE DEVELOPMENT COMMUNITY WENT DOWN TO THE TEXAS LEGISLATURE AND SAID, GUYS, WE'RE PUTTING DOWN INFRASTRUCTURE ON THE GROUND, ROADS, WATER, WASTEWATER LINES AS PART OF DEVELOPMENT. THE VALUE OF THE LAND INCREASES AS A RESULT OF NEW INFRASTRUCTURE, NEW DEVELOPMENT, YOU KNOW, OPPORTUNITY. BUT YET THE DEVELOPMENT DOESN'T GET CREDIT FOR THAT. IN OTHER WORDS, THEY DON'T GET ANY ANYTHING OFF OF THEIR OFF OF WHAT THEY ARE PAYING FOR THAT THOSE IMPROVEMENTS, THE CITY GETS THAT BENEFIT OF THAT INCREASE. SO THE LEGISLATURE SAID, YOU KNOW WHAT? YOU'RE RIGHT. SO YOU HAVE TO DO A CREDIT ANALYSIS TO DETERMINE WHAT THAT CEILING WOULD BE, WHERE YOU LOOK AT YOUR, YOUR CAFR REPORTS AND THE INCREASE IN VALUE BASED ON THE CAPITAL IMPROVEMENTS OR IN THE ALTERNATIVE, YOU CREDIT THE CIP BY 50%. SO AT THE OUTSET OF THIS STUDY UPDATE, WE DIDN'T

[01:25:05]

ANTICIPATE THAT WE WOULD COLLECT MORE THAN THE 50%. SO WHEN WE STARTED THE PROCESS, STAFF DIRECTED US WE'RE NOT GOING TO DO THE CREDIT ANALYSIS. WE'RE GOING TO PUT THAT CEILING AT 50%. SO IT'S IMPORTANT TO UNDERSTAND HERE IS THAT YOU SEE THE TOTAL ELIGIBLE COST FOR THE WATER AND WASTEWATER. WE'RE TALKING 136 MILLION FOR WATER, 192 MILLION FOR WASTEWATER, THAT HALF OF THAT IS GOING TO BE THE BURDEN IS GOING TO BE PUT ON THE RESIDENTS. THE OTHER HALF THAT THAT POLICY DECISION ON WHAT YOU WANT TO ASK NEW DEVELOPMENT TO, TO CHARGE ON A UNIT BASIS, THAT'S WHERE THAT NEW DEVELOPMENT WOULD SHARE IN THAT A PORTION OF THAT COST, IT COULD BE UP TO THAT CEILING OF 50, OR IT COULD BE TO SOME OTHER POLICY THAT YOU ALL DIRECT IT TO BE.

OKAY. SO SINCE WE DID NOT DO THAT FINANCIAL ANALYSIS, WE TAKE THE COST OF THE CIP, CUT IT IN HALF BY 50, AND WE START THE CALCULATION FROM THERE. SO JUST TO MAKE SURE I UNDERSTAND THE ANALYSIS AGAIN, LEGISLATURE GAVE WANTED THEM TO HAVE THE CREDIT OF THE 50%. BUT REALLY THE RESIDENT OR THE OWNER OF WHATEVER THE PROPERTY THAT NOW HAS IMPROVED VALUE IS PAYING THAT. YEAH, THAT FEE. SO YOUR TAX BASE WILL PAY THAT OTHER 50%. YEAH. YOU ALL. YEAH. OKAY.

I JUST WANT TO MAKE SURE MAKE IT CLEAR FOR MYSELF. THANK YOU FOR GOING FORWARD. THERE ARE SOME NEW WRINKLES IN THE IN THE STATE LAW GOING FORWARD. WE'RE ADVISING COMMUNITIES THAT THEY OUGHT TO CONSIDER DOING THAT CREDIT ANALYSIS WITH. THE RESULTS THAT WE SEE IS THAT NUMBER CAN JUMP UP TO ANYWHERE FROM 75, DEPENDING ON THE NUMBER OF PROJECTS THAT ARE ON THE GROUND AND BUILT. AND WE'RE RECOVERING, CAN JUMP UP TO ANYWHERE FROM 75 UP TO 95%. SO THAT RAISES YOUR CEILING IN THE NEXT PROGRAMMATIC UPDATE. DO YOU WANT TO CONSIDER COLLECTING UP TO THAT 75 OR 95, WHATEVER THAT NUMBER IS GOING TO BE? OKAY, SO BUT TONIGHT, DISCUSSIONS ONLY CENTERED ON UP TO 50. OKAY. THANK YOU. THANK YOU. I'M SORRY. JUST TO KIND OF PIGGYBACK OFF OF THAT. SO WE'RE TAKING THE 50% BECAUSE IT'S EASIER. YEAH. TRADITIONAL ROUTE. WHAT IS THE WHAT IS THE LEVEL OF EFFORT TO ARRIVE AT THE DELTA OF THAT IF WE WERE TO DO THE ANALYSIS.

YEAH, WE. JUST FOR AWARENESS. YEAH. COST WISE 25 ISH. SOMEWHERE IN THERE, COUPLE OF MONTHS OF EFFORT GATHERING DATA, DOING THE ANALYSIS, ROLLING THAT CREDIT BACK INTO OUR CALCULATION, GOING THROUGH THE PUBLIC HEARING PROCESS, THE NOTICING THEN THE PUBLIC HEARING PROCESS, ALL THE REPORTING, ETC. YEAH, THE ANTICIPATION WAS THAT THERE WOULDN'T BE AN APPETITE TO RECOVER MORE THAN 50%. YOU'LL SEE IN THE NUMBERS HERE IN JUST A MINUTE HOW THEY'RE HOW IT ROLLS OUT. AND WHAT IS AN IMPACT FEE LOOK LIKE ON CERTAIN LAND USES. YOU'LL SEE WHAT THOSE NUMBERS LOOK LIKE. AND THEN YOU MIGHT SAY, OKAY, WELL MAYBE WE NEED TO MAYBE IT WAS A GOOD THING WE CAPPED IT AT 50%. PRIMARILY YOU SAW FROM FROM ANDREA'S NUMBERS HERE THAT WATER WASTEWATER NUMBER IS GOING TO JUMP FROM $6,600 UP TO $14,000. RIGHT. SO YOU THINK ABOUT THAT IMPACT AND WHAT THAT IS TO THE DEVELOPMENT COMMUNITY AND OR ANY INITIATIVES YOU ALL HAVE AS PART OF DEVELOPMENT. CAN YOU TELL ME ON WHAT WATER AND WASTEWATER, WHAT IS A SERVICE UNIT? SO IT'S THE METER. I'M SORRY ANDREA. SO SOMEWHERE. YEAH. SO IT'S JUST THE SO WE WOULD DEFINE. SO IF A SINGLE FAMILY HOUSEHOLD HAS A ONE INCH METER, THAT'S ONE SERVICE UNIT. AND SO IF THERE'S A GROCERY STORE WITH A TWO INCH WATER METER, THAT'S TWO SERVICE UNITS. IT'S THE BASE NUMBER THAT EVERY INCREMENTAL INCREASE IN THE SIZE OF METER NEEDED TO SERVE DEVELOPMENT. THERE'S WHERE THE INCREASE IN FEE IS. YEAH. I JUST DIDN'T KNOW WHAT SERVICE. YEAH. IT'S EVEN MORE FUN FOR ROADS. AND I GUESS TO BE PRECISE IT'S THE RATIO IS BASED ON THE RATE OF FLOW THROUGH THE METER.

SO IF A ONE INCH METER HAS A RATE OF FLOW OF 50 GALLONS PER MINUTE AND A TWO INCH METER HAS A RATE OF FLOW OF 150 GALLONS PER PER MINUTE, THEN THE RATIO WOULD BE 3 TO 1 INSTEAD OF 2 TO 1. SO IT'S A LITTLE BIT IT'S TECHNICAL. SO BASICALLY THE CARRYING CAPACITY OF LINES AND HOW MUCH GETS CONSUMED BY DEVELOPMENT. SO BOILING IT DOWN AGAIN TO A BIGGER PICTURE. FOR ME THE WAY THIS LOOKS HERE IS YOU GUYS HAVE CALCULATED OVER THE NEXT TEN YEARS, WE'RE GOING TO HAVE APPROXIMATELY $330 MILLION OF CAPITAL IMPROVEMENT COSTS, THAT OF WHICH 50% WILL BE BORNE BY THE CURRENT RESIDENTS OF THE TOWN OF PROSPER. THAT'S CORRECT. OKAY. AND UP TO 50% COULD BE BORNE BY NEW DEVELOPMENT, DEPENDING ON HOW WE. YES, COME TO THE STUDY.

YEAH, YEAH. SO I JUST WANT TO MAKE SURE WE GET THE BIG PICTURE ABOUT THIS. SO THANK YOU. AND I APOLOGIZE FOR INTERRUPTING. GOOD. GOOD STUFF. GOOD QUESTIONS. ALL RIGHT. ON THE ROADWAY NETWORK, SIMILAR TO THE WATER WASTEWATER, THE PROJECTS ARE ROUTED IN YOUR OFFICIAL

[01:30:01]

THOROUGHFARE PLAN. THIS IS THE IMAGE HERE THAT THAT IDENTIFIES THE THOROUGHFARE NETWORK. ONLY ARTERIAL AND COLLECTOR CLASS FACILITIES ARE ELIGIBLE FOR INCORPORATION. AND WORKING WITH STAFF, WE IDENTIFIED THE ARTERIAL AND COLLECTOR CLASS FACILITIES THAT WOULD BE INCORPORATED INTO THE PROGRAM. OUR FIRST STEP WAS TO TAKE THE TEN YEAR GROWTH OR THE NET INCREASE IN DEVELOPMENT FROM THE LAND USE ASSUMPTIONS. HOW DOES THAT TRANSLATE TO SERVICE UNITS OF GROWTH ON THE ROADWAY NETWORK? WE HAVE WE USE WHAT WE CALL THE LAND USE EQUIVALENCY TABLE TO CALCULATE VEHICLE MILES OF DEMAND BASED ON RESIDENTIAL, OFFICE, INDUSTRIAL OR COMMERCIAL, SO THAT NET INCREASE CAN TRANSLATE TO VEHICLE MILES OF DEMAND THAT'S ANTICIPATED.

THIS SAME SERVICE UNIT EQUIVALENT IS WHAT IS USED BY STAFF TO CALCULATE THE IMPACT FEES. BOTTOM LINE WE SEE A NET GROWTH OVER TEN YEARS OF ABOUT 117,000 VEHICLE MILES OCCURRING.

THE PROJECTED COST OF THE PROJECTS THAT HAVE BEEN IDENTIFIED IN THE CIP TOTALS 357. YOU CAN SEE THE BREAKOUT OF THE OF THE COST PER SERVICE ARE, 234 MILLION AND 122 MILLION. IN SERVICE AREAS, ONE AND TWO. SERVICE AREA ONE IS THE WESTERN. THE SERVICE AREA TWO IS THE IS THE GREEN OR THE EASTERN PORTION OF THE COMMUNITY DIVIDED BY THE. IT'S THE DIVIDING LINES, THE RAILROAD TRACKS. SO BOTTOM LINE OF THOSE OF THE ROAD PROJECTS THAT HAVE BEEN IDENTIFIED, ALL OF THAT CAPACITY IS GOING TO BE CONSUMED OVER THE TEN YEARS. OKAY. AND SO WHAT WE'RE SAYING IS HERE IS, IS WE'RE SHOWING THE NET CAPACITY THAT'S MADE AVAILABLE BY THIS, BY THE CIP IN EACH RESPECTIVE SERVICE AREA. WHAT'S THE TOTAL COST OF THE CIP 200? WE'LL JUST SAY SERVICE AREA ONE 234 MILLION NET CAPACITY. BECAUSE SOME OF THESE ROADS ARE ALREADY ON THE GROUND. TRAFFIC'S OUT THERE CHEWING UP SOME OF THAT CAPACITY. THE NET CAPACITY MADE AVAILABLE IS 183 MILLION.

OUR FORECASTED GROWTH 79,000 VEHICLE MILES. OUR SUPPLY IS 59. WE'RE GOING TO CONSUME ALL THAT.

SO WHAT'S HAPPENING IS JUST LIKE YOU HAVE A PIZZA PARTY. YOU HAVE MORE FOLKS COMING TO THE PARTY, REDUCING THE COST PER SERVICE UNIT OF PIZZA. WE HAVE VEHICLE MILES. SO WE'RE USING 183 MILLION ADDING THE FINANCE COSTS ON TOP OF THAT. SO SERVICE AREA ONE HAS 213 MILLION OF COST ATTRIBUTABLE TO GROWTH DIVIDED BY THE SERVICE UNITS OF GROWTH. THE 79,146. THE COST PER VEHICLE MILE IS 2663, 50% CREDIT, 1347IN SERVICE AREA ONE OR THE WEST, 1397IN SERVICE AREA TWO, THE EAST. SO HOW HAS THAT CHANGED FROM WHERE WE WERE? WE DID A LITTLE HISTORICAL DIVE HERE BACK IN 2011 THROUGH 16 AND 2025. YOU SEE, IN THE 2025, THOSE ARE OUR CURRENT NUMBERS BY SERVICE AREA, THE 1347, 1397. IN 2011, WE HAD 856 AND 615. IN 26 IT WAS 1258 AND 940. BY POLICY, YOU ALL COLLECT. WE'RE COLLECTING THE MAXIMUM ALLOWABLE. THERE WERE SOME POLICY REDUCTIONS THAT WERE IDENTIFIED IN THE ORDINANCE. YOU HAD RESIDENTIAL COLLECTING AT 40%, AND YOU HAD SOME OF SOME SPECIFIC NONRESIDENTIAL DISCOUNTED AT BY 25% FOR THOSE LAND USES IDENTIFIED HERE. SO THE QUESTION IS, WHAT WHAT RATE WILL YOU BE WANTING TO COLLECT HERE IN 2025? OKAY, SO AS ANDREA IDENTIFIED, JUST THE COST ALONE OF CONSTRUCTION HAS GONE THROUGH THE CEILING SINCE PRE-COVID. THE LAST TIME THE PROGRAM WAS PREPARED. AND SO THAT'S REALLY THE MAIN DRIVER ON COSTING. WE HAVE THE REPORT DETAILS, COSTS, WORKSHEETS FOR EVERY PROJECT, THE ROAD PROJECTS, THE WATER, THE WASTEWATER, THE UNIT COSTING THAT WENT INTO IT. AND BASICALLY A CONSERVATIVE APPROACH WAS TAKEN WITH THE COST OF THESE INFRASTRUCTURE PROJECTS. AND THE REASON FOR THAT IS AS PROJECTS ARE BUILT AND PUT ON THE GROUND, IF THE ACTUALS ARE GREATER THAN THE PLANNED NUMBERS IN THE IN BY SERVICE AREA, THERE'S A DIFFERENCE OF GREATER THAN 10%. IT PUTS THE CITY IN A REFUND SITUATION AND WE TRY TO AVOID THAT. SO WE'VE ALWAYS GONE ON THE CONSERVATIVE SIDE, MEANING THE LOW SIDE IN DEVELOPING OUR UNIT, OUR PROJECT COSTING. SO YOU'LL SEE ALL THOSE WORKSHEETS IN THE APPENDICES OF THE REPORT. OKAY. ANY QUESTIONS ON THE DERIVATION OF THE COST PER SERVICE UNIT? A LOT OF TECHNICAL THAT GOES INTO THAT, BUT THAT'S WHAT IT COSTS TO PUT A UNIT OF FACILITY ON THE GROUND. OKAY. ALL RIGHT. SO TO HELP TRY TO FIGURE OUT WHERE WE WHERE WHAT MIGHT BE AN APPROPRIATE COLLECTION RATE. WE DID WHAT'S CALLED BENCHMARKING. SO WE'RE BENCHMARKING THE COLLECTION RATES IN PROSPER BOTH IN 2017 AND WHAT THEY COULD BE HERE IN 2025. AND WE'RE COMPARING THOSE TO SOME PEER CITIES. AND YOU CAN SEE BASICALLY FROM THE MIDDLE OF THE OF THE GRAPH TO THE RIGHT, YOU SEE SALINA, FLOWER MOUND, MCKINNEY AND KELLER, FRISCO,

[01:35:04]

LITTLE ELM, SOUTHLAKE, COPPELL. WE ALSO SHOW THE YEAR IN WHICH THE LAST PROGRAM WHEN THE PROGRAM WAS LAST UPDATED. SO, FOR EXAMPLE, SALINA IS SHOWING 2025. BUT THAT'S ONLY THE ROAD COMPONENT RIGHT NOW IS THE PUBLIC HEARING FOR THE WATER AND WASTEWATER PIECE. SO WE DON'T.

SO IN CALCULATING SOME SCENARIOS HERE IN THIS PARTICULAR CASE, THIS IS THE ACTUAL IMPACT FEE COLLECTED BY THE CITIES FOR ONE SINGLE FAMILY RESIDENTIAL DWELLING UNIT. OKAY. SO IN SALINA ONE SINGLE FAMILY RESIDENTIAL UNIT WOULD BE 23,570. NOW, WE KNOW FROM OUR WORK SINCE WE'RE DOING THE WATER WASTEWATER, THAT NUMBER, IF THEY WERE TO ADOPT THAT MAXIMUM COULD GO UP TO $30,000. BUT THAT'S WHATEVER THEY DECIDE TONIGHT HERE, THESE OTHER COMMUNITIES, FLOWER MOUND AND TO THE RIGHT YOU SEE THE NUMBERS, THE 18,000 ALL THE WAY DOWN TO 2500. BUT ALL THESE CITIES, WITH THE EXCEPTION OF SOUTHLAKE, THAT'S FAIRLY CURRENT. ALL THOSE CITIES ARE GETTING READY TO GO THROUGH UPDATES, SO YOU CAN ANTICIPATE THAT THEIR NUMBERS ARE GOING TO BE GOING UP. OKAY. ALRIGHT. SO OVER ON THE LEFT SIDE OF THE GRAPH IS PROSPER 17 AND PROSPER 2025. OKAY. SO WE'RE SHOWING EACH SERVICE AREA SERVICE AREA ONE AND TWO, THE WEST AND THE EAST EAST. BUT WE'RE SHOWING WITH TWO SCENARIOS, NO DISCOUNT AND WITH A DISCOUNT. THE DISCOUNT WAS BY POLICY. YOU ALL DECIDED TO COLLECT THAT 40% OF ALLOWABLE FOR RESIDENTIAL. IN THE NEXT COMING SCENARIOS, YOU'LL SEE SOME OF THOSE LAND USES AND WHAT THOSE NUMBERS ACTUALLY ARE. SO WE SHOW THE TWO BARS ON THE RIGHT OF WHAT THOSE NUMBERS ARE BY POLICY FOR A SINGLE FAMILY RESIDENTIAL. SO FOR EXAMPLE, SERVICE AREA ONE, THE IMPACT FEE IN 2017 IS 14,209. THAT'S THE CEILING YOU COULD HAVE GONE TO. YOU MADE SOME POLICY DECISIONS. THAT NUMBER IS ACTUALLY 12,318 OKAY. SERVICE AREA TWO 12,300. SERVICE AREA WITH THE DISCOUNT SERVICE AREA TO 10,900. SO THAT'S ALL POLICY DECISION THAT'S WITHIN YOUR PURVIEW ON THE COLLECTION RATE. ALL RIGHT. ON THE FAR LEFT ARE THE NEW NUMBERS WITH AND WITHOUT THE DISCOUNT. IF YOU ALL WERE TO MAINTAIN THAT SAME POLICY OF THOSE SAME COLLECTION RATES, AND YOU COULD SEE WHAT THOSE NUMBERS WOULD JUMP TO 14,000 WITH NO DISCOUNT. IN THE WEST UP TO 21,009, 87 AND SO ON.

SO YOU CAN SEE THE INCREASE, BUT THAT'S PRIMARILY A RESULT OF THAT COST PER SERVICE UNIT. HOW IT'S GOING UP THAT WE'VE CALCULATED. OKAY. ANY QUESTIONS ON THIS, HOW THIS GRAPH READS OR WHERE IF YOU ALL WERE THINKING ABOUT WHERE PROSPER SLOTS INTO SOME OF YOUR PEER CITIES AND SOME OF THOSE PEER CITIES THAT ARE GOING THROUGH OR WILL BE GOING THROUGH UPDATES. YEAH, I JUST HAVE A QUICK ONE. OBVIOUSLY YOU SHOW TWO, TWO SERVICE AREAS FOR PROSPER. I WOULD THINK SOME OF THESE CITIES LIKE SOLANA, MCKINNEY, MAYBE FRISCO WOULD ALSO HAVE MULTIPLE SERVICES AS WELL. IS THIS GOING TO WE JUST WE TOOK THE AVERAGE OKAY. BUT BECAUSE YOU HAVE TWO SERVICE AREAS ON ROADS HERE, WE THOUGHT, OKAY, LET'S JUST BREAK THEM OUT JUST SO YOU COULD SEE IF THERE WAS AN EAST WEST THING THAT. BUT YOU'RE RIGHT. SALINA HAS SEVEN, FLOWER MOUND HAS THREE, MCKINNEY HAS FOUR. ANNA HAS 2 OR 3 AND SO ON. AND SO WE JUST TOOK THE AVERAGE JUST FOR SIMPLICITY'S SAKE. OKAY. RIGHT, RIGHT. BUT YOU COULD HAVE SOME REAL SKEWING AND SOME OF THESE COMMUNITIES FOR THE LESS DEVELOPED PART. YEAH. SO WHEN WE WHEN WE TOOK THE AVERAGE WE KIND OF LOOKED AT YES YOU'RE RIGHT. SOME COULD BE MUCH MORE EXPENSIVE, SOME COULD BE SOME THAT SOME CITIES ARE ACTUALLY COLLECTING ZERO IN PARTICULAR AREAS. THAT'S A POLICY DECISION. WE TOOK THOSE OUT SO THAT THAT WOULDN'T. THAT'S CORRECT OKAY. YEAH. TRIED TO NORMALIZE THAT. THANK YOU.

ALL RIGHT. SO THIS IS THE SCENARIO FOR A SINGLE FAMILY RESIDENTIAL UNIT HERE OF WHERE YOU'RE COLLECTING NOW AND WHAT YOU COULD GO TO BUY POLICY WITH AND WITHOUT DISCOUNTS OKAY. WE WANTED TO BENCHMARK A COUPLE OF OTHER LAND USES. SO THIS HERE IS A DRIVE THROUGH RESTAURANT ABOUT 4600 SQUARE FOOT. SO THIS MIGHT BE YOUR YOUR BURGER KING, YOUR WHATABURGER SOMEWHERE IN THERE.

KIND OF A LARGE SIZE, QUITE HONESTLY. 4600FT■!S. AND BUT IT ALSO ASSUMES A 1.5IN METER. SO THE RESIDENTIAL IS ONE INCH METER, BUT THE FUEL A FAST FOOD RESTAURANT, IT'S TYPICALLY ABOUT A 1.5IN SERVICE. AND THEN THERE'S AN IRRIGATION LINE TOO. BUT YOU CAN SEE WHERE YOUR CURRENT IMPACT FEES ARE HERE AND PROSPER. NOW THAT'S THE 2017 NUMBERS, WHAT THEY COULD GO TO AND SOME OF YOUR PEER CITIES. OKAY, SO YOU'RE SAYING, GOLLY, THEY'RE REALLY GOING UP IN SALINA AND FLOWER MOUND. BUT WE DIDN'T GO UP SO MUCH. WELL, I MENTIONED THE LAND USE EQUIVALENCY TABLE FOR ROADS. THAT IS TAILORED WITH NEW DATA. SO IT'S TRAVEL CHARACTERISTICS BY LAND USE TYPE, SINGLE FAMILY RESIDENTIAL GENERATES TRAFFIC DIFFERENTLY FROM A FAST FOOD

[01:40:03]

RESTAURANT, FROM AN OFFICE, FROM A FROM A DAYCARE CENTER. SO THAT'S WHY WE CALCULATE THE COST PER SERVICE UNIT. BECAUSE BASED ON THE SIZE AND INTENSITY OF LAND USE AND THE TRAVEL CHARACTERISTICS CHARACTERISTICS OF DIFFERENT LAND USES, THEY GENERATE MORE IMPACT AND MORE FEE. SOME OF THE SOME OF THE LAND USES ARE GENERALLY GOING DOWN. YOU HAVE A LOT MORE REMOTE WORK. YOU GOT, YOU GOT INTERNET PURCHASING, YOU GOT UBER EATS, THOSE KINDS OF THINGS GOING ON.

SO WE'RE GENERALLY SEEING A REDUCTION IN SERVICE UNIT GENERATION ON THE ROADSIDE. SO GENERALLY NOMINAL HERE IN IN PROSPER. SO ACTUALLY A DECREASE. SO IF YOU WERE TO SAY WELL GOLLY WE WANT TO MAYBE THINK ABOUT COLLECTING THE ABSOLUTE MAX FOR THIS KIND OF LAND USE OR GLOBALLY ACROSS THE BOARD. THAT'S HOW YOU MIGHT SLOT OUT FOR THIS LAND USE SCENARIO.

OKAY. GROCERY STORE 132,000 SQUARE FOOT GROCERY STORE. SO THIS COULD BE LIKE MAYBE AN HEB, A SUPERTARGET, THAT KIND OF THING AS PART OF A SHOPPING CENTER. OR IT COULD BE AN INDEPENDENT TWO TWO INCH METER FOR A WATER SERVICE. IT'S A TWO AND ONE ANDREA, TWO WATER METERS, TWO AND ONE. OKAY. BECAUSE YOU HAVE SOME OUT PARCELS. OKAY. AND THEN IRRIGATION YOUR WASTEWATER TWO INCH. ALRIGHT. SO THESE ARE HOW YOUR, YOUR FEES WOULD SLOT OUT.

SO PROSPER CURRENTLY IN SERVICE AREA ONE WITH YOUR DISCOUNT THAT YOU CURRENTLY ALLOW A SHOPPING CENTER GROCERY STORE 130,000FT■S WOULD BE ABOUT AN IMPACT FEE OF ABOUT 2.4 MILLION IN SERVICE AREA 11. 8 MILLION IN SERVICE AREA TWO. THOSE NUMBERS WOULD COULD VARY. IF YOU KEPT THE SAME POLICY, IT WOULD BE A NOMINAL INCREASE OF ABOUT 2.5 MILLION. SERVICE AREA 12. 6 MILLION. IN SERVICE AREA TWO. SALINA. BASED ON THE CURRENT ORDINANCE 6.4. YOU SEE THE OTHER NUMBERS AND WHERE HOW PROSPER SLOTS IN SIT DOWN RESTAURANT 8000FT■!S. SO TS MIGHT BE YOUR CHILI'S YOUR CURRENT MORE YOU KNOW, WHATEVER THE MORE CONTEMPORARY LINES ARE. BUT THAT'S A AND THAT'S A ONE HOUR SIT DOWN MORE OR LESS, BUT SERVED BY A TWO INCH METER FOR WATER AND WASTEWATER. AND YOU SEE WHERE YOUR CURRENT IMPACT FEES ARE 1000 116,000 IN SERVICE AREA ONE 95,000 SERVICE AREA TWO. AND WHAT THOSE COULD GO TO IF YOU ADOPTED THE MAXIMUM ALLOWABLE WITH AND WITHOUT YOUR DISCOUNTS HERE IN 25. AGAIN, YOUR PEER CITIES WHERE THEY ARE TO THE RIGHT OF THE OF THE GRAPH THERE MEDICAL OFFICE. THIS IS A 31,600 SQUARE FOOT MEDICAL OFFICE. THIS IS KIND OF LIKE A34 STORY TYPE STANDARD BUILDING THAT MIGHT HAVE, YOU KNOW, SOME OUTPATIENT SURGERY, BUT IT'S ALSO MEDICAL, DENTAL, ALL BUNDLED INTO INTO ONE THEIR TWO INCH METER FOR WATER AND WASTEWATER. AGAIN, YOU CAN SEE HOW THE IMPACT FEES AND PROSPER WOULD BE RELATIVE TO YOUR PEER COMMUNITIES. OKAY OKAY. SO THOSE BENCHMARKING SLIDES ARE MERELY FOR YOU ALL TO BE CONTEMPLATING.

IF YOU'RE THINKING ECONOMIC DEVELOPMENT STRATEGY. ET CETERA. ET CETERA. AS MENTIONED EARLIER, WE DID HAVE WE MET WITH THE CAPITAL IMPROVEMENTS ADVISORY COMMITTEE. THEY THEY PROVIDED INPUT ON THE LAND USE ASSUMPTIONS, THE CIP, THE COST PER SERVICE UNIT CALCULATION AND A COLLECTION RATE. AND SO WE MET WITH THEM TO DISCUSS THE INFORMATION IN APRIL, OCTOBER AND JUNE. THEY THEY DID MAKE A RECOMMENDATION, UNANIMOUS VOTE THAT THEY ACCEPTED THE LUA AS PRESENTED THE CIP, THE CALCULATIONS AS DEFINED IN THE DRAFT STUDY AT THE TIME, WHICH HAVE NOW BECOME FINALIZED. AND THEY'RE RECOMMENDING THAT YOU ALL CONSIDER COLLECTING SETTING THE FEES AT THE MAXIMUM ALLOWABLE. THAT'S FROM THE ADVISORY COMMITTEE THAT YOU'RE TAKING UNDER ADVISEMENT. AS PART OF THE PROCESS, PART OF THE PUBLIC HEARING PROCESS. ALSO WITH THAT, ANY QUESTIONS ON THE UPDATE? I'LL NOTE THAT THE MEMBERS OF THAT COMMITTEE WHO ARE PLANNING AND ZONING COMMITTEE WITH ONE MEMBER OF THE ETJ OF THE ETJ. THAT'S CORRECT, BECAUSE YOUR WATER COVERED THAT ETJ AREA ON THE WESTERN SIDE OF TOWN. YEAH, OKAY. THANK YOU.

THANK YOU FOR THAT PRESENTATION. YOU BET. THANK YOU TO OUR MEMBERS OF OUR PLANNING AND ZONING COMMISSION AND OUR ETJ MEMBER WHO WHO GOT TO ALL OF THIS. IT'S ACTUALLY KIND OF EYE OPENING FOR IN MANY DIFFERENT CASES. SO I'M GOING TO GO AHEAD AT THIS. ANY QUESTIONS ON THE PRESENTATION. NO. ALL RIGHT THEN I'M GOING TO GO AHEAD AND CONDUCT A PUBLIC HEARING. THIS ITEM IS A FOR A PUBLIC HEARING. AND THIS ITEM IS NOW OPEN FOR A PUBLIC HEARING. IS THERE ANYONE

[01:45:02]

THAT WOULD LIKE TO SPEAK ON THIS PARTICULAR ITEM? I WILL NOTE THAT THE DALLAS BUILDERS ASSOCIATION HAS CONTACTED ALL THE MEMBERS OF THE TOWN COUNCIL. AND GIVEN THEIR RECOMMENDATIONS, AND I WILL ENTER THEIR RECOMMENDATIONS INTO THE RECORD. BUT I'LL NOTE THAT THEY'VE REQUESTED WE DO 50% OF THE MAXIMUM ALLOWABLE PHASE IN OVER TWO YEARS. AND WITH THAT, THAT ITEM IS ENTERED INTO THE RECORD. IS THERE ANYONE ELSE HERE TO SPEAK ON THIS PARTICULAR ITEM? SEEING NONE, I'LL CLOSE THE PUBLIC HEARING COUNCIL. OH I'M SORRY. YEAH. AS PART OF THE PUBLIC HEARING, IT'S NOT PART OF THE PUBLIC HEARING. IT'S PART OF THE TECHNICAL CALCULATION I FAILED TO MENTION. SO HOLD ON. SO THE PUBLIC HEARING IS CLOSED. ALL RIGHT. OKAY. SO NOW THE COUNCIL HAS DISCUSSION BUT I'LL RECOGNIZE YOU TO FOR A TECHNICAL POINT. YEAH. SO THERE'S A NEW WRINKLE IN THE NEW LAW THAT'S COMING INTO PLAY SEPTEMBER 1ST. AND THAT IS THAT YOU IF YOU WERE TO SET A COLLECTION RATE, LET'S JUST SAY YOU DECIDED THAT 25% OF MAX SHOULD BE CONSIDERED. THAT WOULD BE YOUR NEW CEILING. THE NEW LAW WOULD SAY THAT THAT'S THE MAXIMUM YOU COULD COLLECT FOR UP TO THREE YEARS. OKAY. THAT THAT CAME INTO IN AS PART OF THIS NEW DEAL, IN THE NEXT UPDATE, THERE'LL BE OTHER NEW WRINKLES ON NOTICING AS WELL AS AN AUDIT REQUIREMENT. OKAY. BUT I WANTED TO POINT OUT THAT IF YOU ALL WHATEVER YOU ALL DECIDE ON A COLLECTION RATE, THAT WILL BE THE CEILING AND YOU CAN'T RAISE IT FOR AT LEAST THREE YEARS, SO IT IT MIGHT TRIGGER AN UPDATE SOONER THAN FIVE. SO WILL I HAVE YOU UP THERE? I JUST WANT TO MAKE SURE THAT SO CLEARLY WE CAN SET THE MAXIMUM RATE. BUT AS PEOPLE COME BRING IN DEVELOPMENTS WE CAN ALWAYS WAIVE CERTAIN FEES OR MANEUVER. IF THAT'S YOUR PROTOCOL AS PART OF ORDINANCE. THAT'S CORRECT. AND LIKEWISE IF YOUR POLICY IF YOU WANT TO DO A SLIDING SCALE, YOU WOULD STILL IDENTIFY THAT CEILING. AND IF YOU WANTED TO COLLECT LESS, YOU MIGHT COLLECT LESS AND YOU COULD DO A SLIDING SCALE. NOW WE WOULD WANT TOWN ATTORNEY TO WEIGH IN ON THAT BECAUSE THERE THERE'S SOME NEW LANGUAGE IN THERE. AND SO WE WANT TO MAKE SURE WE GET THAT RIGHT. BUT AGAIN, WE CAN HAVE WE CAN HAVE SET THE BASIC POLICY TO POLICY TO COLLECT THE MAXIMUM. AND THEN ON AN INDIVIDUAL BASIS HAVE DIFFERENT. YEAH, I HAVEN'T LOOKED AT THE ORDINANCE. I'M NOT FULLY UNDERSTANDING ON WHAT THEIR ABILITY ON WAIVER. YEAH. UNDER THE STATUTE WE CAN KIND OF DO THAT. YEAH. WE SET THE MAXIMUM AND PHASE IT IN. WE WERE THAT'S WHAT AFFECTS US SEPTEMBER 1ST. YES. BUT ALSO TO IF THERE'S A DECISION TO WAIVE SAY THAT SAY YOUR FIRST COMMENT AGAIN SO I CAN HEAR IT. I'M SORRY. WE JUST HAVE TO SET THE MAXIMUM RATE AND THEN BUT YOU CAN PHASE THAT IN OVER TIME. IT IS OPTIONAL. WE DON'T HAVE TO I KNOW YOU DON'T HAVE TO. ALL RIGHT. THANK YOU. THE MAXIMUM RATE TONIGHT AS EXCUSE ME WHEN THE TIME COMES OR YOU CAN PHASE IT IN OVER TIME. BUT THEN WHENEVER YOU GET TO THAT MAXIMUM RATE, WHEN YOU PHASE IT IN OVER TIME, YOU HAVE A THREE YEAR GAP. YOU CAN'T GO BACK AND CHANGE IT A YEAR LATER. BUT SO I WAS GOING TO SAY FOR CLARITY THOUGH, YOU CAN SET THE MAXIMUM RATE. AND TO MARY'S POINT YOU CAN HAVE THE DEVELOPER'S AGREEMENT OR SOMETHING WITH THE EDC, CORRECT? YES. TO WE ADJUST THE MAXIMUM RATE DEVELOPMENT INCENTIVE PACKAGE TO REDUCE IMPACT FEES. AND WE'VE DONE THAT IN THE PAST. AND WE. OKAY. THANK YOU. THANK YOU VERY MUCH FOR THAT. AND BY WAY OF PROCESS IT'S ASSESSED AT PLATTING AND COLLECTED AT PERMIT. RIGHT. THE PLAT COMES THROUGH THE PROCESS. YOU ASSESS THAT WHATEVER THAT COLLECTION RATE IS AND IF OR THE ASSESSMENT RATE IS AND IF YOU COLLECT LOWER, THEN THAT'S WHAT THEY PAY WHEN THEY PULL THE PERMIT. OKAY. FOR DAN ON THE COMMITTEE THAT DID THIS WAS THE HOW WAS THE VOTE ON THAT WAS UNANIMOUS. UNANIMOUS OKAY. THE RECOMMENDATION WAS A UNANIMOUS VOTE OKAY. SO OUR CONSULTANT AND THE COMMITTEE HAS RECOMMENDED TO COLLECT AT THE MAXIMUM RATE. SO I'LL OPEN IT UP FOR DISCUSSION AT THIS POINT. BUT I JUST I DON'T SEE WHY I'D WANT TO GO AGAINST THE COMMITTEE AND THE CONSULTANTS RECOMMENDATIONS. SO I DON'T REALLY WANT TO GO AGAINST THEIR RECOMMENDATION, HOWEVER, AND MAYBE THIS HAS BEEN ANSWERED BECAUSE THIS GOES OUT IN THE PUBLIC AND EVERYBODY KIND OF LOOKS AT THIS AND SOMETIMES DOESN'T DIG IN NECESSARILY. THEY MAY NOT BE DIGGING IN TO A DEVELOPMENT AGREEMENT, BUT IS THERE A WAY YOU CAN YOU CAN DISCOUNT THIS OR PROVIDE DIFFERENT RATES BY USE, OR IS IT JUST PURELY YOU GOT TO GO KIND OF ONE OFF, BUY THE DEVELOPMENT AGREEMENT IF YOU'RE GOING TO DISCOUNT IT. SO, SO IN THE LAST PROGRAMMATIC UPDATE, THE THAT WAS IDENTIFIED IN THE ORDINANCE, THERE WERE SOME USES THAT YOU THAT WERE COLLECTING AT 50%, SOME THAT WERE AT 40, NAMELY RESIDENTIAL, SINGLE FAMILY RESIDENTIAL. AND THEN THERE WERE SOME NONRESIDENTIAL THAT WERE AT 25%. SO IF YOU ALL FELT THAT THAT IS THE SAME KIND OF APPROACH YOU WANTED TO TAKE, THAT'S WITHIN YOUR PURVIEW TO DO THAT. OKAY. SO YOU COULD DO IT WITHIN WITHIN NONRESIDENTIAL. COULD YOU BREAK DOWN WITHIN

[01:50:05]

NONRESIDENTIAL? YEAH. YOU GET TO WELL, I MEAN WE'VE IDENTIFIED THE CEILING. AND BY POLICY YOU ALL CAN MOVE TO WHEREVER YOU WANT. AND SO PREVIOUSLY SOME OF THE SOME SPECIFIC LAND USES AS IN IDENTIFIED HERE WERE COLLECTING AT 25%. OKAY. AND BUT THERE ARE A SLEW OF LAND USES.

THESE WERE PULLED OUT TO INCENTIVIZE SPECIFICALLY THIS KIND OF DEVELOPMENT AT THAT TIME. OKAY OKAY. SO IT'S BEEN DONE IN THE PAST. OH YEAH. YEAH YEAH. AND BUT IS THERE A THIS IS MAYBE A TERRY QUESTION. IS THERE A PROBLEM IF WE DECIDED TO GO THAT ROUTE IN THE FUTURE, OR DO WE JUST HAVE TO GO TO THE DEVELOPMENT BY DEVELOPMENT AGREEMENT KIND OF ONE OFF WHEN YOU WHEN YOU DO THE SAY 25%, THAT'S THAT TYPE OF USE OF PROPERTY THAT'S DIFFERENT THAN AN ECONOMIC DEVELOPMENT PROJECT WHERE WE GIVE THEM A REDUCED IMPACT FEE AS PART OF THE ECONOMIC DEVELOPMENT INCENTIVE. IT'S BETTER. BUT YEAH, YOU'D ALREADY IF WE IMPOSE SOME LIMITS LIKE THIS, YOU'D BE OPERATING WHATEVER THAT LIMIT IS. EXACTLY. THAT'S CORRECT. EXACTLY RIGHT.

SO IF YOU DID 40% OF ALL DAYCARES AND EVERY DAYCARE WOULD GET THAT 40%, NOT 50% MAX. YEAH.

AND OF COURSE, WE WOULDN'T GET BACK AN INCENTIVE TO A DAYCARE, BUT THAT WOULD BE IN ADDITION TO THAT 40% MAX. OKAY. GOT IT MAYOR. AND A LOT OF TIMES CITIES DO THIS DEPENDING ON WHAT YOU'RE ENCOURAGING, WHAT KIND OF DEVELOPMENT YOU'RE ENCOURAGING TO YOUR COMMUNITY. SO AT SOME POINT IN THE PAST, THERE WAS A DECISION MADE TO ENCOURAGE DISCOUNT STORES, NON FAST FOOD RESTAURANTS. AND AGAIN THESE CATEGORIES. AND THAT'S WHY THOSE DISCOUNTS WERE GIVEN WHY THAT WAS I DON'T KNOW. BUT THAT'S THAT'S THE REASON WHY YOU DID IT I HAVE A FEELING IT WAS JUST PROSPER WASN'T WASN'T. YEAH IT WASN'T READY. THEY WERE TRYING TO BRING THOSE THINGS TO US.

WE'RE NOT THERE NOW. AND I IT STRUCK ME WHEN I LOOKED AT THE CHART, THE COMPARISONS TO OUR OTHER TO OUR SISTER CITIES AROUND US. IT HAS NOT STOPPED DEVELOPMENT. SO I GUESS FOR ME, I DON'T UNDERSTAND WHY WE WOULD GIVE ANY KIND OF DISCOUNT, BECAUSE IT CERTAINLY HASN'T STOPPED ALL OF THOSE USES THAT YOU SHOWED FROM DEVELOPING AROUND US. I DON'T KNOW WHY IT WOULD STOP HERE. WE'RE SIGNIFICANTLY LOWER EVEN WITHOUT A DISCOUNT. SO IN SOME CASES WE ARE SO I DON'T AND AGAIN, THOSE CITIES, THOSE ONES THAT HAVE THE HIGHER RATES, THEY USE THAT AS AN INCENTIVE TO AGAIN WAIVE OR DISCOUNT THOSE IMPACT FEES AS PART OF THEIR ECONOMIC DEVELOPMENT PACKAGE. AND WE CAN DO THE SAME THING. BUT I STILL THINK EVEN WITH NO DISCOUNT, WE'RE VERY COMPETITIVE. SO THAT'S MY COMMENT. THAT'S A QUESTION. THIS IS ACTUALLY FOR OUR FINANCE DEPARTMENT IN REGARDS TO THE BUDGETING PROCESS. THESE FEES ONLY IMPACT WHAT KIND OF DECISIONS THAT WE CAN MAKE. GOING BASED ON THE FUND BALANCES. OR IS THERE SOMETHING CHRIS OR BOB, IS THIS IN SOME CALCULUS? ARE WE IMPACTING SOME CALCULATION THAT WE'RE ACCOUNTING FOR ALREADY, OR. I'M JUST TRYING TO CLARIFY THAT. I DON'T THINK SO. I JUST WANT TO MAKE SURE I UNDERSTAND IT. REPEAT THAT QUESTION AGAIN. FOR INSTANCE, IN THE ROADWAY IMPACT FEE, ARE THESE ALREADY CALCULATED AT OUR CURRENT RATE OR AT THE CURRENT RATE? THE CURRENT RATE IS IT. WELL, AGAIN, THE AGAIN EVERYTHING'S SET ASIDE SEPARATELY. SO THERE'S NO COMMINGLING OF FUNDS. BUT BUT AGAIN THE CURRENT RATES ARE ARE PROJECTS THAT ARE CURRENTLY UNDERWAY. SO ANYTHING ANYTHING THAT'S CURRENTLY BEEN PLATTED IS A CURRENT RATE. SO ANYTHING GOING FORWARD IT WILL BE SOMETHING IN THE FUTURE. SO IT IMPACTS OUR AVAILABILITY OF THESE ISOLATED FUNDS LIKE SPECIFIC CAPITAL DOLLARS FOR THE FUTURE. IT'S NOT ANYTHING WE'RE ALREADY PLANNING ON. CORRECT? I MEAN, I JUST WANT TO MAKE SURE THAT'S WHAT I THOUGHT IT IS.

THOSE IMPACT FEES ARE TO BASICALLY ASSIGN TO THOSE TYPES OF, I MEAN, WATER, WASTEWATER OR ROADS. RIGHT. SO IT MAKES MAKES A DIFFERENCE ON WHAT'S AVAILABLE OR HOW FAST WE MIGHT MOVE ON OTHER PROJECTS IN THE FUTURE. GOOD. YEAH. DID YOU GET YOUR QUESTION ANSWERED? THANK YOU CHRIS. THAT'S IT CHRIS, YOU DID WELL. VERY WELL. SO OKAY. ALL RIGHT. SO WE'RE STILL WE'RE POST PUBLIC HEARING. WE'RE IN DISCUSSION PHASES. THE REQUEST IS THAT WE PROVIDE DIRECTION TO TOWN STAFF REGARDING THE AMOUNT OF IMPACT FEE PER SERVICE UNIT FOR WATER, WASTEWATER AND ROADWAYS. AND THEN WITHIN THE NEXT 30 DAYS, HAVE THE STAFF BRING THAT BACK IN TERMS OF AN AMENDMENT. SO WITH WHAT I'VE SEEN HERE, I SEE NO REASON NOT TO FOLLOW THE COMMITTEE'S AND THE CONSULTANT'S RECOMMENDATION AT THE MAX. IS THERE ANYBODY THAT WOULD HAVE A DISCOUNT? NO.

YEAH. FOLLOW THE COMMITTEE'S RECOMMENDATION. EXACTLY. CONCUR. IS THERE ANYBODY THAT WOULD LIKE TO MAKE A MOTION TO THAT EFFECT? MOTION? WELL, IT SAYS GIVE DIRECTION. ARE WE JUST GOING TO.

[01:55:03]

ALRIGHT. WE JUST. SO IS THAT ENOUGH DIRECTION. YES, SIR. SO IN THE NEXT COUNCIL MEETING WE'LL COME BEFORE YOU WITH AN ORDINANCE FOR ADOPTION. WITH THIS, THE RATE BASED ON THE DIRECTION GIVEN TONIGHT. OKAY, BE PASSED BEFORE THE 1ST OF SEPTEMBER, CORRECT? YES. YEAH.

SO AUGUST 26TH, WE'LL BE BACK WITH THE OPPOSITION TO THAT AT ALL. NO. OKAY. GOOD. THANK YOU VERY MUCH I APPRECIATE IT. THANK YOU FOR THE EXPLANATIONS. THANK YOU. OKAY. AGENDA ITEM NUMBER 19

[19. Conduct a Public Hearing and consider and act upon a request to rezone 18.7± acres from Planned Development-14 (Retail) to Planned Development-Retail on Netherly Survey, Abstract 962, Tract 7, located on the northwest corner of Legacy Drive and First Street. (ZONE-25-0004) (DH)]

MARIO. AGENDA ITEM NUMBER 19. DO WE HAVE ANY COMMENTS? THERE ARE. NO. YES, SIR. THE I APOLOGIZE THE APPLICANT HAD HAS REQUESTED FOR THIS ITEM TO BE TABLED UNTIL THE NEXT COUNCIL MEETING THE 26TH OF AUGUST. SO I BELIEVE JUST FOR OUR PROTOCOL, MR. TOWN ATTORNEY, THAT THE MAYOR WOULD SHOULD THE APPLICANT HAS REQUESTED THIS ITEM BE TABLED TO THE NEXT MEETING SO HE COULD OPEN THE CALL, THE CAPTION HOLD A PUBLIC HEARING TO A DATE. CERTAIN WE DON'T NEED TO HOLD THE PUBLIC HEARING. WE CAN OPEN THE ITEM AND TABLE THE PUBLIC HEARING UNTIL THE NEXT COUNCIL MEETING. OKAY, BUT THERE WILL BE NO STAFF PRESENTATION THIS EVENING. OKAY, GREAT. SO I WILL GO AHEAD AND OPEN AGENDA ITEM NUMBER 19, WHICH IS TO CONDUCT A PUBLIC HEARING, CONSIDER AND ACT UPON THE REQUEST TO REZONE 18.7 ACRES FROM PD 14 RETAIL TO PLANNED DEVELOPMENT RETAIL ON NORTHERLY SURVEY ABSTRACT 962 TRACT SEVEN LOCATED ON THE NORTHWEST CORNER OF LAKESIDE DRIVE AND FIRST STREET, I WOULD ACTUALLY ENTERTAIN A MOTION TO TABLE THIS ITEM TO THE AUGUST 26TH COUNCIL MEETING. MAKE A MOTION TO TABLE ITEM 19 TO AUGUST 26TH. I MOTION BY BARTLEY. SECOND BY JEFF. OKAY. AND THEN ALL IN FAVOR? MOTION PASSES UNANIMOUSLY. THAT IS

[20. Discuss and consider Town Council Subcommittee reports. (DFB) ]

GREAT. THANK YOU VERY MUCH. ITEM NUMBER 20 IS TO DISCUSS AND CONSIDER THE TOWN COUNCIL SUBCOMMITTEE REPORTS. I WILL READ OUT FOR FINANCE QUICKLY, MARCUS, AS WE WERE BASICALLY EVERYTHING YOU'VE SEEN TONIGHT THAT CHRIS STOOD UP AND TALKED ABOUT IS THE FINANCE COMMITTEE.

ANYTHING YOU'D LIKE TO ADD TO THAT? NO. THANK YOU. DOWNTOWN ADVISORY COMMITTEE. I'LL. I JUST WANT TO CALL ATTENTION TO ONE OF THE THINGS THAT WAS PUT AT YOUR SEAT TODAY, WHICH WAS A FOLD OUT MAP OF PROPERTIES DOWNTOWN THAT'S KIND OF KEY CODED. WE WENT THROUGH THIS WITH THE DOWNTOWN COMMITTEE. THE STAFF PULL THIS TOGETHER, AND I THOUGHT IT WAS VERY INSIGHTFUL.

WE ARE CONSISTENTLY HEARING CONVERSATIONS ABOUT THE FUTURE OF PARKING, AND THE DOWNTOWN COMMITTEE IS FOCUSED ON THAT AND WILL REGULARLY REVIEW THAT. AND I THOUGHT THIS WAS A SUPER HELPFUL WAY TO LOOK AT THINGS THAT ARE ALREADY AVAILABLE, PLUS SOME THINGS THAT ARE IN THE NEAR TERM FUTURE TO HELP US DETERMINE THE SPACING AND WHATNOT. ALSO, I WOULD ENCOURAGE YOU IS THROUGH YOUR SOCIAL MEDIA OR IN YOUR CONVERSATIONS WITH PEOPLE TO REMIND PEOPLE THAT THEY CAN USE THE GLORIOUS 229 PUBLIC SPACES HERE AT TOWN HALL THAT ARE OFTEN NOT USED AT ALL WHEN PEOPLE ARE COMPLAINING ABOUT PARKING. SO THAT WAS PROBABLY ONE OF OUR MAJOR THINGS THAT WE DISCUSSED.

THANK, THANK YOU FOR THAT, MAYOR. I'D ALSO LIKE TO I'D ALSO LIKE TO THANK THE EDC FOR THE NICE MURALS THAT THEY THAT, THAT, THAT THEY HELPED WITH ON THE. SO THE DOWNTOWN COMMITTEE.

WELL I'LL, I'LL GIVE THIS A LITTLE CLARIFICATION. THE IT WAS AN EDC PROJECT TO BEGIN WITH THAT GOT TAKEN OVER BY STAFF AND THE CDC RECOMMENDATIONS. SO YEAH, I BELIEVE THAT THAT TURNED OUT VERY, VERY WELL. THANK YOU FOR THAT IMPROVEMENT. SO IT WAS A THAT IT'S A SIGNIFICANT IMPROVEMENT IN THE LOOK OF DOWNTOWN. THANK YOU. ANY OTHER COMMENTS? WE DO HAVE TODD. TODD TODD WOULD LIKE TO HAVE A COMMENT. HI, TODD. MAYOR AND COUNCIL. YES. SO THE AUGUST 6TH COMMUNITY ENGAGEMENT COMMITTEE, THEY DISCUSSED THE HASHTAG SEVEN. SORRY, HASHTAG THE 75078 CAMPAIGN AND SELECTED THE LOGO FOR THIS. AND THIS IS JUST KIND OF A USER GENERATED, YOU KNOW, MARKETING CAMPAIGN WHERE PEOPLE CAN SUBMIT THEIR PHOTOS OF THEIR FAVORITE BUSINESSES, THEIR FAVORITE PARKS. SO THEY DISCUSSED THAT AND LANDED ON THE LOGO. SO WE'LL BE MOVING FORWARD WITH THAT. THEY ALSO IDENTIFIED SOME RESCHEDULED DATES FOR THE JOINT PARKS BOARD MEETING AND CC MEETING. SO WE ARE WAITING TO HEAR BACK FROM THE PARKS BOARD TO ENSURE THAT DATE IS GOOD TO GO. WE ALSO THE COMMITTEE DISCUSSED MEMBER TERM LIMITS AND ROLL OFFS, AS WELL AS NYSE APPLICATIONS AND THE SELECTION COMMITTEE MEMBERS THAT WILL BE SELECTING THE NEXT NYSE, AND THAT IS IT. AWESOME. THANKS, TODD. HERE'S MY CC MEMBERS AGAIN. JEFF, DID YOU WANT TO ADD

[02:00:06]

ANYTHING TO THAT? NO, NO, I THINK TODD DID A GREAT JOB. THANK YOU. THANK YOU TODD OKAY, ANY OTHER COMMITTEES THAT MET? TOMORROW? AS CHRIS MENTIONED MANY TIMES. SO OKAY, THE NEXT AGENDA ITEM IS TO POSSIBLY DIRECT TOWN STAFF TO SCHEDULE TOPICS FOR DISCUSSION AT A FUTURE MEETING. DOES ANY COUNCIL MEMBER HAVE ANYTHING THEY WANT TO ADD? SEEING NONE, WE'LL MOVE

[EXECUTIVE SESSION]

TO THE NEXT ITEM, WHICH IS EXECUTIVE SESSION. THE TOWN COUNCIL RECESS INTO CLOSED SESSION IN COMPLIANCE WITH SECTION 551.001 OF THE TEXAS GOVERNMENT CODE IS AUTHORIZED BY THE TEXAS OPEN MEETINGS ACT TO DELIBERATE REGARDING THE FOLLOWING. SECTION 551.087 TO DISCUSS, CONSIDER ECONOMIC DEVELOPMENT INCENTIVES AND ALL MATTERS INCIDENT RELATED THERETO. SECTION 551.072 TO DISCUSS AND CONSIDER THE PURCHASE, EXCHANGE, LEASE OR VALUE OF REAL PROPERTY FOR MUNICIPAL PURPOSES, ALL MATTERS INCIDENTAL RELATED THERETO.

SECTION 551.074. TO DISCUSS AND CONSIDER PERSONNEL MATTERS, INCLUDING THE EVALUATION OF TOWN MANAGER AND ALL MATTERS RELATED THERETO. SECTION 551.071. TO CONSULT WITH THE TOWN ATTORNEY REGARDING LEGAL MATTERS ASSOCIATED WITH TOWN LIABILITY ISSUES. ALL MATTERS INCIDENT RELATED THERETO. SECTION 551.071 CONSULTATION WITH THE TOWN ATTORNEY TO DISCUSS LEGAL ISSUES ASSOCIATED WITH ANY COUNCIL MEETING, AGENDA ITEM OR WORK SESSION ITEM. SECTION 551.074 DISCUSS APPOINTMENTS TO THE BOARD OF ADJUSTMENT, CONSTRUCTION BOARD OF APPEALS, PARKS AND RECREATION BOARD, LIBRARY BOARD, PROSPER EDC, THE PLANNING AND ZONING COMMISSION, THE COMMUNITY ENGAGEMENT COMMITTEE, THE DOWNTOWN ADVISORY COMMITTEE. ALL MATTERS RELATED .