9. Consider and act upon adopting the FY 2025-2026 Prosper Economic Development Corporation Budget. (SB)

[10. Consider and act upon awarding RFP No. 2025-16-A for ASO Medical, Pharmacy Benefits Manager, and Insurance Benefits to Lincoln for Life/AD&D coverage, Symetra Life for Short-Term & Long-Term Disability, UMR/OptumRx for Medical/Pharmacy and authorizing the Town Manager to execute all documents for the same. (TL)]

TEN. THAT WILL BE FOR TONY LUTON. GOOD EVENING. THAT WAS THE ONLY THERE WAS NO OTHER ONE.

NOT FOR ME. WELL, TONY, YOU DON'T YOU DON'T NEED TO MAKE A PRESENTATION. I JUST WANT TO MAKE SURE THAT THROUGH THE QUESTIONS THAT WE HAVE PROVIDED FOR THE TOWN MANAGER IN ADVANCE, THAT THERE WERE AN ANSWER TO SOME QUESTIONS WAS PROVIDED, AND THE SAMPLE AGREEMENTS WERE PROVIDED FOR THE ASOS. SO, YEAH, WITH THAT, IF THERE'S NO OTHER QUESTIONS THAT I WOULD ENTERTAIN A MOTION FOR THIS PARTICULAR ITEM, I'LL MAKE A MOTION TO APPROVE. TEN OKAY.

MOTION BY MARCUS RAY, SECOND BY JEFF HODGES. ALL IN FAVOR? MOTION PASSES UNANIMOUSLY.

THANK YOU TONY. GOOD JOB. GOOD JOB. OKAY. MARCUS. THANK YOU. ALL RIGHT. WHILE THEY'RE DOING THAT, WE'LL MOVE ON TO CITIZEN'S COMMENTS. THE PUBLIC IS INVITED TO ADDRESS THE COUNCIL ON ANY TOPIC. HOWEVER, THE COUNCIL IS UNABLE TO DISCUSS OR TAKE ACTION ON ANY TOPIC NOT LISTED ON THE AGENDA. PLEASE COMPLETE A PUBLIC COMMENT REQUEST FORM AND PRESENT TO THE TOWN SECRETARY PRIOR TO THE MEETING. PLEASE LIMIT YOUR COMMENTS TO THREE MINUTES. IF MULTIPLE INDIVIDUALS WISH TO SPEAK ON A TOPIC, THEY MAY YIELD THEIR THREE MINUTES TO ONE INDIVIDUAL TO SPEAK ON THEIR BEHALF. ALL INDIVIDUALS YIELDING THEIR TIME MUST BE PRESENT AT THE MEETING, AND THE APPOINTED INDIVIDUAL WILL BE LIMITED TO A TOTAL OF 15 MINUTES. IS THERE ANYONE HERE TO ADDRESS THE COUNCIL? AND WE HAVE NONE. NO ONE HAS

[18. Consider and act upon an Ordinance amending Water and Wastewater Rates. (CL)]

SIGNED UP THAT CASE. WE'LL MOVE TO OUR REGULAR AGENDA PURSUANT TO SECTION 551.007 OF THE TEXAS GOVERNMENT CODE, INDIVIDUALS WISHING TO ADDRESS THE COUNCIL FOR ITEMS LISTED AS PUBLIC HEARINGS WILL BE RECOGNIZED WHEN THE PUBLIC HEARING IS OPEN. AGENDA ITEM NUMBER 18. CONSIDER ACT UPON AN ORDINANCE AMENDING WATER AND WASTEWATER RATES. CHRIS LANDRUM THANK YOU, MAYOR AND PROSPER TOWN COUNCIL. THE TOWN IS WHAT IS REFERRED TO AS A DISTRIBUTION AND COLLECTION UTILITY, MEANING THAT WE DON'T ACTUALLY MAKE THE WATER THAT WE SELL. WE PURCHASE THAT AND RESELL IT. WE ARE FACING AN INCREASE IN THE COST THAT WE PAY FOR WATER OF APPROXIMATELY 15%, AND THAT IS PLAYING INTO THE NEED TO INCREASE THE RATES. IN ADDITION TO THAT, ON THE WASTEWATER SIDE, WE'RE GOING WE'RE CURRENTLY BUILDING A WASTEWATER TREATMENT PLANT.

WE'RE GOING IN PARTNERSHIP WITH SALINA AND UPPER TRINITY TO BUILD THIS PLANT THAT IS CREATING OR CONTRIBUTING TO THE NEED TO RAISE THE RATES ON THE WASTEWATER SIDE. ALL TOLD, THE BLENDED INCREASE IS ABOUT 8.8% FOR NEXT YEAR, 6.26% ON THE WATER AND A LITTLE OVER 15% ON THE WASTEWATER. THAT'S THAT'S A HUGE INCREASE OR OR A A LARGE INCREASE. THE 15% THAT WE'RE FACING, YOU CAN SEE ON THE SLIDE IN FRONT OF YOU, OUR THE PERCENT OF OUR TOTAL WATER BUDGET, IT'S 62% IS JUST THE COST OF US PAYING FOR THAT WATER. SO A LARGE PORTION OF OUR BUDGET IS JUST DEDICATED TO BUYING THAT WATER THAT WE RESELL. AND SO WE TRY TO ABSORB AS MUCH OF THAT INCREASE AS WE CAN, AND THEN WE PASS ON THE REMAINING ON THE WASTEWATER

[00:25:02]

SIDE, YOU SEE THAT WE'RE FACING A 14% INCREASE IN OUR TREATMENT COSTS. THAT IS 40% OF OUR BUDGET. AND WE'RE PASSING ON THE MAJORITY OF THAT. THIS 26. LIKE I SAID, WE'RE PROPOSING AN INCREASE TO THE WATER RATES OF THE 6.26. AND THEN FOR WASTEWATER RATES, 15.08. NOW, LAST YEAR WAS THE FIRST YEAR SINCE 2020 THAT WE DID INCREASE THE RATES. IT'S WE'VE BEEN TRYING TO ABSORB THOSE COSTS AS WE CAN. WE DO EXPECT, AT LEAST FOR THE NEAR FUTURE, TO HAVE TO INCREASE THOSE. THERE ARE SEVERAL PROJECTS UNDERWAY. THERE'S THE METER REPLACEMENT PROGRAM, THE TRUNK LINE THAT IS NOW OPEN TO THE THE WEST SIDE, PROVIDING WATER, AND A FUTURE PROJECT OF CHEMICAL INJECTION, CHLORINE INJECTION TO TRY AND KEEP THESE COSTS DOWN. WHEN WE LOOK AT INCREASING RATES, WE WANT TO LOOK AT OUR COMPARISON CITIES. THE THE TABLE THAT YOU HAVE ON THE SCREEN IN FRONT OF YOU SHOWS WHAT OUR CURRENT RATE IS AND HOW WE COMPARE TO NOT ONLY OTHER CUSTOMER CITIES, BUT ALSO MEMBER CITIES. WE WE CAN SEE AT OUR CURRENT RATE, WE'RE NEAR THE BOTTOM ON THE AVERAGE ANNUAL BILL. AND THEN WITH OUR PROPOSED INCREASE, YOU SEE THAT WE DO JUMP UP QUITE A BIT. HOWEVER, MOST OF THESE CITIES ARE FOLLOWING THE OR SEEING THE SAME PRESSURES THAT WE'RE SEEING. AND SO WE DO EXPECT THAT THEY WILL INCREASE THE RATES AS WELL. AND THAT IS ALL I HAVE. ANY QUESTIONS FOR STAFF? ANY QUESTIONS. JUST A FEW COMMENTS. SO YOU KNOW, I THINK IT'S IMPORTANT FOR THE WIDER COMMUNITY TO UNDERSTAND TOO, THAT WHEN WE VENTURED IN WITH SALINA TO PAY FOR THIS ADDITIONAL TREATMENT PLANT, THE COSTS WERE RAISED ON US A COUPLE OF TIMES AND QUITE SIGNIFICANTLY. AND SO THE INCREASE THAT THE TOWN IS SEEING AS A WHOLE, AS OPPOSED TO PASSING THE ENTIRE AMOUNT ONTO THE CITIZENS, THE TOWN ABSORBED A GOOD PORTION OF THAT. AND I THINK THE OTHER THING TO CALL OUT IS ON THIS PARTICULAR SLIDE HERE, THERE ARE MEMBER CITIES THAT HAVE DISCOUNTED RATES, OF WHICH WE ARE NOT A PART OF, AND SO WE DON'T HAVE ACCESS TO THOSE DISCOUNTED RATES. SO WHILE IT'S PAINFUL, I DO THINK THAT IT'S A FAIR APPROACH TO RECONCILE WHAT WE NEED TO DO TO COVER THE COSTS OF THIS. AND AS THE COST WILL INCREASE OVER THE YEARS, HOPEFULLY WE CAN, AS OUR COMMUNITY GROWS, WILL BE ABLE TO COVER THAT. SO JUST TO MAKE SURE I CALL THIS OUT. THANK YOU. DO WE HOW WILL THE RATE INCREASE? WILL THERE BE SOMETHING IN THAT WILL BE COMMUNICATED TO JUST GIVE THIS SOME CONTEXT? I KNOW IT'S IMPOSSIBLE TO GIVE THE ENTIRE CONTEXT, BUT WOULD THAT BE INCLUDED IN A BILL OR WHAT WILL THAT HOW WILL THAT TAKE PLACE? HOW WILL THE COMMUNICATION FOR THE RATE INCREASE? THERE WILL BE A FLIER INSIDE THE BILL. OKAY. THAT'S. YEAH. OKAY. GOTCHA. OKAY. ANY OTHER COMMENTS? ANYONE LIKE TO MAKE A MOTION? MOVE TO APPROVE ORDINANCE AMENDING WATER AND WASTEWATER RATES EFFECTIVE OCTOBER 15TH, 2025. I HAVE A MOTION BY MARK SECOND BY AMY

[19. Consider and act upon an Ordinance amending Appendix A, "Fee Schedule," of the Town's Code of Ordinances. (CL)]

BARTLEY. ALL IN FAVOR? MOTION PASSES UNANIMOUSLY. THANK YOU VERY MUCH. NEXT AGENDA ITEM IS NUMBER 19. CONSIDER ACT UPON ORDINANCE AMENDING APPENDIX A FEE SCHEDULE OF THE TOWN'S CODE OF ORDINANCES. CHRIS LANDRUM THANK YOU, MAYOR PROSPER TOWN COUNCIL THE THE RATE SCHEDULE THAT YOU'RE CONSIDERING TONIGHT, I DO WANT TO ADD IS IS WHAT THE BUDGET IS BUILT UPON. AND SO RATHER THAN YOU HAVE ME GO THROUGH ALL OF THIS, WE WERE GOING TO PASS IT OFF TO THE DIRECTORS OF EACH AREA SO THEY COULD MORE EXPLAIN EACH OF THE DIFFERENT. RATE ADJUSTMENTS.

AND SO DEVELOPMENT SERVICES IS THE FIRST WE HAVE. HELLO, EVERYONE. MAYOR, COUNCIL DEVELOPMENT SERVICES AS YOU KNOW, IS COMPRISED OF SEVERAL OF THE DIVISIONS WITHIN THE DEPARTMENT. WE CALL THEM DEPARTMENTS, BUT THEY'RE REALLY DIVISIONS IN THE DEVELOPMENT SERVICES. FIRST ONE IS PLANNING THE LAST UPDATE TO THESE FEES WERE BACK IN 2015. SO IT'S BEEN TEN YEARS, BEEN QUITE A WHILE. AND AS YOU KNOW, JUST ABOUT EVERYTHING COSTS MORE NOW THAN IT DID TEN YEARS AGO. AND SO WE DID A REVIEW THE WILL THROUGH TO MANY. SORRY. LOOKING AT

[00:30:02]

SURROUNDING MUNICIPALITIES, WE LOOKED AT ONES THAT ARE ON THE COMPARISON LIST, WHICH IS IS TYPICAL. WE ALSO LOOKED AT OUR SURROUNDING CITIES, WHICH ARE THE ONES THAT THAT WE BASICALLY COMPETE AGAINST ON A REGULAR BASIS TO SEE WHERE WE WERE. AND WE WERE VERY LOW COMPARED TO TO ALL OF THEM. AND EVEN WITH THE THE NEW PROPOSED RATES, WHICH INCLUDES PLATS, SITE PLANS, ZONING CASES, VIRTUALLY EVERYTHING WHERE YOU COME IN. AND IT'S VERY OTHER THAN JUST ASKING FOR INFORMATION IF YOU'RE ACTUALLY DOING SOMETHING IN THE TOWN, THERE ARE FEES AND A FEE SCHEDULE, AND WE ARE. IF ALL OF THEM ARE APPROVED TONIGHT, WE'LL STILL BE PROBABLY CLOSE TO THE MIDDLE, MAYBE A LITTLE BIT ON THE HIGHER END OF THE MIDDLE OF THE PACK. SO WE'RE NOT BY ANY MEANS GOING TO THE TOP. THERE ARE SEVERAL THAT ARE STILL IN SOME INSTANCES OVER TWICE WHAT WHAT WE'RE CHARGING. WE THINK OUR RATES ARE FAIR. WE THINK THEY WILL PAY FOR WHAT THEY'RE SUPPOSED TO BE PAYING FOR. AND WE THINK IT'S A IT'S A GOOD IDEA TO TO DO WHAT IT NEEDS TO BE DONE. LIKE I SAID, IT'S BEEN TEN YEARS. HEALTH AND CODE, BASICALLY THE SAME THING. WE LOOKED AT SURROUNDING CITIES. THE CODE HAS NOT THE EXCUSE ME BUDGET FOR HEALTH AND CODE. THE FEES HAVE NOT GONE UP IN IN QUITE SOME TIME. AND THE INCREASE HERE IS, IS BASICALLY TO COVER THE COST. WE HAD SEVERAL THINGS WHERE WE ACTUALLY SAT DOWN AND DETERMINED WHAT IT TOOK TO ACTUALLY DO INSPECTIONS AND TO KEEP UP WITH WITH THE CODE ACTIVITIES. AND, AND WE WERE BEHIND IN, IN WHAT OUR ACTUAL COSTS WERE. AND AGAIN, EVEN WITH, WITH RAISING THESE, WE'RE STILL PRETTY CLOSE TO, TO MIDPOINT WITH OUR, OUR SISTER CITIES, IF YOU WILL. BUILDING INSPECTIONS IS PROBABLY THE MOST COMPLICATED OF ALL OF THEM. I REMEMBER SEVERAL SESSIONS AGO THE LEGISLATURE CHANGED HOW YOU COULD EVEN FIGURE OUT WHAT YOUR BUILDING FEES WERE USED TO BE. QUITE SIMPLE WAS DONE THROUGH THE CODE. LEGISLATURE DIDN'T LIKE THAT. SO YOU HAD TO TO CHANGE. COULDN'T BE DONE BY VALUE, HAD TO DO BY THE THING AND THE SERVICE OR WHAT HAVE YOU. THAT THAT CAUSED IT TO BE A LITTLE BIT COMPLICATED AS, AS TOWNS AND CITIES WERE CHANGING OVER TO THAT SYSTEM. THIS PROPOSAL THAT THAT WE HAVE NOW CHANGES THE FEW, I WOULD SAY HIGHLIGHTED POINTS. IT CHANGES A NONREFUNDABLE DEPOSIT TO AN APPLICATION FEE. SAME THING. YOU PAY IT, YOU DON'T GET IT BACK. SO THAT THAT'S REALLY JUST MOVING IT FROM HOW IT'S CLASSIFIED. BUT IT ALSO DOES CHANGE THE FEE STRUCTURES FOR COMMERCIAL DEVELOPMENTS PRIMARILY TO AND COMMERCIAL DEVELOPMENT OF OF NEW HOMES, BUILDINGS AND SUCH. IT CHANGES IT TO A FLAT RATE AS OPPOSED TO A TIER SCRUNCH STRUCTURE. WE WERE A LITTLE BIT IMBALANCED IN THAT IN SOME INSTANCES, THE MORE EXPENSIVE HOMES WERE SUBSIDIZING SMALLER HOMES OR MORE EXPENSIVE PROJECTS, OR SUBSIDIZING SMALLER PROJECTS. THIS TENDS TO SPREAD IT OUT TO TO ACTUALLY HAVE WHATEVER THE DEVELOPMENT IS AND HOWEVER IT'S PRICED ACTUALLY PAY FOR ITSELF, WHICH IS IS A LOT FAIRER. WE BELIEVE IT'S ALSO A LOT EASIER TO CALCULATE. THE TIER SYSTEM WAS A LITTLE HARDER FOR SOMEONE WHO REALLY DIDN'T KNOW WHAT THEY WERE DOING. AND THEN SOME OF THE THE SMALLER SINGLE THINGS FENCES, FOUNDATION REPAIRS, SINGLE TRADE, MEP, MECHANICAL, ELECTRIC, PLUMBING.

THOSE PERMITS ARE IRRIGATION PERMITS WERE BASICALLY SET AT A SINGLE PRICE, BUT IT WAS RAISED A LITTLE OR PROPOSED TO BE RAISED A LITTLE FROM WHAT IT USED TO BE. AND AGAIN, WE THINK THIS IS REASONABLE WHEN WHEN LOOKING AT COMPARISON CITIES, AGAIN, WE'RE NOT AT THE TOP AND THERE ISN'T NO REASON WHY WE THINK WE NEED TO BE THE MOST EXPENSIVE, BUT WE CERTAINLY THINK WE NEED TO BE PAYING FOR WHAT IT'S COSTING US. AND THAT'S WHAT ALL THESE ARE. SO IF YOU HAVE ANY QUESTIONS, HAPPY TO ANSWER THEM. I TALKED ABOUT BOTH THESE AT THE SAME TIME. SORRY, BUT THE ONE THING YOU CAN SAY THAT THAT WE DID KICK UP A LITTLE BIT PERCENTAGE WISE WAS THE WAY THAT WE DO THE MULTI-FAMILY PERMITS. AND AGAIN, WE THOUGHT THAT THEY WERE BEING SOMEWHAT SUBSIDIZED AND WE DIDN'T THINK THAT SHOULD BE THE CASE. SO. THAT'S IT. UNLESS ANYBODY HAS ANY QUESTIONS I'VE GOT A COMMENT. BUT I'M UNBUCKLE MINE WITH THE ENGINEERING ONES OKAY. THANK YOU. THANK YOU OKAY. THANK YOU. ALL RIGHT. THANKS. THANKS, DAVID. GOOD EVENING,

[00:35:10]

MAYOR AND COUNCIL. I'M GOING TO REPEAT SOME OF WHAT DAVID SAID. WE TWO PULLED OUR COMPARISON CITIES AND LOOKED AT THESE FEES. AND GOAL WAS TO TRY TO BE MID-PACK. NOT THE HIGHEST, NOT THE LOWEST. OUR FEES HAVE BEEN ADJUSTED A LITTLE MORE. SOME SOME OF THESE AS FAR BACK AS 2018, SOME AS EARLY AS 2022, KIND OF MIXED IN BETWEEN. BUT AS YOU KNOW, PARKS AND RECREATION DEPARTMENT WE'RE MULTI DIVISION DEPARTMENT TWO BETWEEN THE PARK PLANNING SIDE RECREATION PARK OPERATIONS. SO ON THE FIRST ONE FOR PARK DEVELOPMENT FEES, PARKLAND DEDICATION FEES. CURRENTLY WHEN WE WORK WITH THE DEVELOPER, WHEN THEY PRESENT THEIR THEIR THEIR DEVELOPMENT, WE TAKE EVERY WE WE ARE ABLE TO PULL ONE ACRE FOR EVERY 35 UNITS OR 5% OF THE TOTAL ACREAGE. WE'LL TAKE WHATEVER IS LARGER. SO IF IT'S 100 ACRE DEVELOPMENT, FIVE ACRES, IF IT'S, YOU KNOW, WE'LL COMPARE THAT TO THE NUMBER OF HOUSES DIVIDED BY 35. SO WE, WE HAVE THAT, THAT, THAT LEVERAGE THAT, THAT ABILITY TO DO EITHER ONE. WE'RE PROPOSING TO BUMP THAT TO TAKE AN ACRE FOR EVERY 30 UNITS, BUT KEEP IT AT THE 5%. AND AGAIN, IF THEY DON'T HAVE THERE ARE TIMES WHERE THE DEVELOPMENT MAY NOT BE VIABLE. IF WE TAKE THAT MUCH LAND, WE CAN TAKE THE CASH EQUIVALENT OF THAT LAND. SO THERE HAVE BEEN TIMES WHERE THAT'S BEEN THE OPTION, AND WE'VE CHOSEN TO TAKE THAT. AS FAR AS THE PARK IMPROVEMENT FEES, CURRENTLY, WE'LL TAKE $1,500 PER SINGLE FAMILY UNIT OR 2000 PER MULTI-FAMILY UNIT. WE'RE PROPOSING TO BUMP THOSE TO 2000 PER SINGLE FAMILY UNIT AND 3000 PER MULTI-FAMILY UNIT.

RECREATION. THESE ARE A LITTLE MORE CUT AND DRY FOR PAVILION RESERVATIONS. SO WE HAVE THE ONE PAVILION OUT AT FRONTIER PARK. RIGHT NOW. THE NON RESIDENT FLAT PRICE IS $500 FOR FOUR HOURS. NOW IT'S HIGH AND I'M PROBABLY UNDERSTAND WHY WE DID THAT. THE ISSUE WE'RE HAVING IS WE'RE PROBABLY IF YOU'RE IN LIGHT FARMS OR SOLANA WHEREVER YOU ARE YOU'RE NOT A RESIDENT. THEY WILL HAVE SOMEONE FROM PROSPER MAKE THAT RESERVATION. SO WE HAVE NONRESIDENTS GETTING RESIDENT FEE. THERE'S REALLY NO WAY FOR US TO TO CHECK THAT WE WHEN THEY MAKE THE RESERVATION, WE MAKE SURE WHOEVER DOES THAT WE WE DETERMINE WHERE THEY LIVE.

BUT IF THAT PERSON ISN'T THE ONE ACTUALLY USING IT, THERE'S REALLY NO WAY FOR US TO POLICE THAT THE DAY OF. SO WE ARE ACTUALLY PROPOSING TO DECREASE THAT FROM 500 TO 100 FOR 1 TO 100 PEOPLE, TO 100 FOR 101 TO 200 PEOPLE. AS I SAID BEFORE, WE DON'T GET RESERVATIONS AT THE $500 LEVEL. WE BELIEVE THAT BY DECREASING THAT NUMBER, IT'S STILL ABOVE WHAT A RESIDENT FEE WOULD BE. BUT WE THINK WE COULD PROBABLY WE'D PROBABLY MAKE MORE REVENUE BY DOING SO. DAN, QUESTION IS THAT A RESIDENT OR NONRESIDENT FEE THAT WOULD BE FOR THE NON RESIDENT? I'M SORRY I DIDN'T PUT THE RESIDENT ON HERE. I BELIEVE THE RESIDENT IS 35 OR $40 FOR FOR THE 1 TO 100.

AND THEN IT GOES UP SLIGHTLY 5060 BUCKS FOR THE FOUR HOURS OKAY. THANK YOU. OKAY. FOR OUR ATHLETIC FIELD RESERVATION FEES. SO SYNTHETIC TURF THOSE ARE OUR ESSENTIALLY OUR OUR MULTI-PURPOSE. WE HAVE THE TWO MULTI-PURPOSE FIELDS AND WE HAVE THREE DIAMOND FIELDS.

FRONTIER. CURRENTLY RESIDENTS AND NONRESIDENTS CAN RESERVE THESE FIELDS FOR THE MULTI-PURPOSE ONE AND MULTI-PURPOSE TWO BUILD LOCATIONS. AT $70 AN HOUR. WE DON'T DIFFERENTIATE BETWEEN THE TWO. WITH THE CURRENT FEE SCHEDULE, WE WOULD LIKE TO LEAVE THE RESIDENT RATE AT THE 70, BUT INCREASE THE NONRESIDENT TO FROM 70 TO $125 AN HOUR. WE DO GET A LOT OF CALLS ON THESE FOR BOTH RESIDENT AND NONRESIDENT, SO WE THINK THERE'S A REAL OPPORTUNITY TO TO POTENTIALLY GAIN SOME ADDITIONAL REVENUE AND NOT HURT OUR RESIDENTS. AT THE SAME TIME, GRASS FIELD RESERVATIONS. OUR RESIDENTS CURRENTLY RESERVE FIELDS AT $35 AN HOUR, NONRESIDENTS AT 45. WE JUST LIKE TO WE'D LIKE TO KEEP THE RESIDENT FEE WHERE IT IS, BUT INCREASE THE NONRESIDENT TO 70. AND AGAIN, WE GET CALLS ALL DAY LONG FOR FIELD RESERVATIONS. AND LASTLY, OUR TOURNAMENT RESERVATION FEES. WHEN WE HAVE AN ORGANIZATION CALLED US AND WE CAN SCHEDULE A TIME TO TO MAKE THAT TOURNAMENT WORK AT

[00:40:06]

ONE OF OUR LOCATIONS. THE TOWN WILL CHARGE $50 PER TEAM FOR THE FIRST TWO DAYS, AND THEN ADDITIONAL $30 FOR ANY ADDITIONAL DAYS OF THAT TOURNAMENT. THERE'S ALSO $100 DEPOSIT PER FIELD WHEN THEY BOOK. IF IT'S ANYTHING LESS THAN $1,000, WE GET A MINIMUM OF $1,000 TO MAKE THAT TOURNAMENT WORK. ORGANIZERS WILL TYPICALLY CHARGE A GATE ENTRANCE FEE, SO WE'RE NOT ASKING TO CHANGE ANYTHING ON THE FRONT END, BUT WE'D LIKE TO TAKE A PERCENTAGE OF THE GATE FEES. WE THINK THAT'S A LITTLE FRIENDLIER. THAT DOESN'T HURT THE ORGANIZERS AS MUCH AS FAR AS BEING ABLE TO HOLD THEIR TOURNAMENTS. IT JUST HURTS A LITTLE BIT ON THE REVENUE SIDE, AND THAT'S NO DIFFERENT THAN WHAT WE WOULD DO FOR AN INSTRUCTOR TEACHING A CLASS. WHEN THEY COME AND TEACH SOMETHING, EITHER IN A PARK OR AT THE 407, WE GET A PERCENTAGE OF WHAT THEIR REVENUES ARE. AND I THINK THAT WAS IT. THAT WAS IT. ANY QUESTIONS? YEAH. DAN, ON THE THE PERCENTAGE HOW ARE YOU GUYS GOING TO MANAGE THAT.

IT SEEMS LIKE A LOT MORE OVERHEAD TO TRY TO TRACK NUMBER OF ATTENDEES AND PERCENTAGE. SO REALLY IT'S JUST GOING TO BE IT'S IT'S MOST LIKELY GOING TO BE A HANDSHAKE AGREEMENT. WE'RE GOING TO ASK THEM WHAT WAS THEIR ATTENDANCE. WE CAN GET THOSE NUMBERS NOW. WILL IT BE 100% ACCURATE? PROBABLY NOT. SO RATHER THAN DOING THAT, WOULD IT MAKE MORE SENSE THOUGH THAT PER TEAM FEE DOES NOT SEEM LIKE A SIGNIFICANT AMOUNT WHEN YOU HAVE MINIMUM TEN PLAYERS TO HAVE ACROSS THE BOARD, YOU KNOW THAT TO BE INCREASED PER TEAM STILL HAVE YOUR MINIMUM OF 1000.

BUT, YOU KNOW, SAY IT GOES FROM 50 TO 100, MAYBE TWO DAYS IS A LOT OF PLAY. IT IS. AND THAT'S A VERY MINIMUM RATE. SO IF YOU HAD IT AT 100 OR, YOU KNOW, 100 PER DAY OR I DON'T KNOW WHAT IT IS, BUT YOU KNOW, I'M NOT TRYING TO SPIKE IT THERE, BUT IT'S A LOT MORE MANAGEABLE TO TRACK THE QUANTITY OF TEAMS THAN THE ATTENDANCE AND THE MANAGEMENT THAT COMES WITH THAT.

YES. HAVE YOU GUYS THOUGHT THAT THROUGH? WE LOOKED AT THAT. WE HONESTLY DON'T DO A LOT OF TOURNAMENTS WE HAVE. IT'S AVAILABLE AND NOT THAT WE DON'T DO ANY. WE WE GET A FEW A YEAR.

THE THOUGHT WAS WE'RE JUST TRYING TO INCREMENTALLY BUMP THAT AUTUMN. SO I THINK THAT WOULD HURT THE ORGANIZER A LITTLE MORE AND IT MIGHT KEEP TOURNAMENTS AWAY. BUT IT'S I'M CERTAINLY OPEN TO IT. WE WERE JUST TRYING TO FIGURE A WAY TO, TO TO PULL A LITTLE ADDITIONAL REVENUE WITH THAT. YEAH, I'M JUST THINKING OF THE MANAGEMENT SIDE OF IT AND SOMETHING MAYBE TO TAKE BACK TO THE TEAM. BUT HAVING HAD TEAMS PLAY IN THE PAST AND, YOU KNOW, THERE'S A STANDARDIZED FEE AND THE FEES WITH THE TEAM PAYS, AND THAT'S AN EASIER WAY TO TRACK IT. YOU KNOW, OTHERS HAVE COACHED TEAMS IF WHAT YOUR THOUGHTS ARE ON THAT. I MEAN, YEAH, I THINK THAT'S I MEAN THAT'S JUST VERY TYPICAL. YOU KNOW, IT'S TYPICALLY GOING TO GET PASSED DOWN TO USERS AND WHATNOT. SO I DON'T SEE A PROBLEM WITH THAT. AND THEN TAKING, YOU KNOW, TAKING SOMETHING FOR THE THE GATE FEE, I THINK THAT'S PERFECTLY ACCEPTABLE AS WELL.

SO CAN I ASK A QUESTION THEN. SO WHEN YOU DO HAVE A GATE FEE, SOMEONE WAS GOING TO USE THE PLAYGROUND OR SOMETHING LIKE THAT. DID THEY HAVE ACCESS TO PARKING WITHOUT HAVING TO PAY THAT FEE? OR IS IT ANYBODY WHO GOES INTO THE PARK THAT DAY HAS TO PAY? SO IT WOULD TYPICALLY BE MAJORITY OF OUR TOURNAMENT FIELDS, AND THIS WOULD BE THE TWO BASEBALL COMPLEXES IN THE EMPTY FIELDS WHERE THERE IS A HARD GATE CLOSURE. SO IT WOULDN'T BE SOMETHING WE'RE PICKING UP IN THE PARKING LOT OR AT THE PLAYGROUND. IT'D BE PEOPLE WALKING INTO THE ATHLETIC FIELD COMPLEX MIGHT BE A LITTLE MORE DIFFICULT TO DO. IF YOU DID LIKE THE SOUTHEAST, THE SOCCER COMPLEX, WE'D HAVE TO FIGURE THAT PIECE OUT. OKAY. YEAH, BUT MAJORITY OF WHAT WE'RE HAVING RESERVATIONS FOR TOURNAMENTS ARE TYPICALLY THE THE NORTH, THE MP ONE AND MP TWO FIELDS ON THE NORTH END AND THEN THE THREE BASEBALL FIELDS THAT ARE ADJACENT TYPICALLY ARE ARTIFICIAL TURF FIELDS IS WHAT PEOPLE ARE INTERESTED IN. QUESTION. SO WE ALL KNOW FIELD USAGE IS, YOU KNOW, IN SHORT SUPPLY. AND AS MORE PARKS COME ONLINE, I DON'T SEE A HUGE SIGNIFICANT INCREASE FOR A NONRESIDENT. DID THE PARKS BOARD LOOK AT THESE NUMBERS AND MAKE RECOMMENDATIONS? BECAUSE I THINK IN THE PAST, AT LEAST BACK WHEN I WAS ON PARKS, WHICH WAS A LONG TIME AGO, WE DID TALK A LOT ABOUT NONRESIDENTS PAYING SIGNIFICANTLY MORE BECAUSE WE REALLY WANTED THE TEAMS EVEN EVEN FOR EVEN FOR CLUBS TO BE FILLED WITH RESIDENTS FIRST. SURE. I'LL BE HONEST WITH YOU, I DON'T RECALL US TAKING THIS TO THE PARKS BOARD, SO MY APOLOGIES ON THAT. WE JUST WE WERE BASING IT ON WHAT WHERE WE WERE ALREADY AT AND THAT ANY OF OUR ADJUSTMENTS WERE ON THE NONRESIDENT SIDE. SO WE COULD CERTAINLY GO HARDER

[00:45:04]

IN THE PAINT ON THE NONRESIDENT SIDE IF, IF THAT'S SOMETHING YOU'D LIKE TO DO. WELL, I'D ALMOST WANT TO TAKE THIS BACK BEFORE WE APPROVED ANYTHING FOR THE PARKS FEES TO THE PARKS BOARD, YOU KNOW, THEY'RE APPOINTED BY THE COUNCIL TO PROVIDE FEEDBACK LIKE THIS. AND I THINK THIS IS AN IMPORTANT ONE, AND I THINK THEY'LL HAVE THEIR FINGER ON THE PULSE OF WHERE THIS MIGHT NEED TO BE. AND I WOULD ALMOST MAYBE PUSH BACK ON THE PERCENTAGE, BECAUSE TO MANAGE THAT AND HAVE AN ACCURACY, BETTER TO BE TRANSPARENT TO SAY THIS NUMBER TEAMS BUT HAVE THAT RECOMMENDATION FROM THE PARKS BOARD AND THEN MAYBE BRING THAT BACK. I HAVE A QUESTION FOR THE TOWN MANAGER. ONE, I WOULD ABSOLUTELY INSIST THAT THIS GO BACK BEFORE THE PARKS BOARD, MUCH AS COUNCIL MEMBER REYES JUST MENTIONED. HOWEVER, I BELIEVE THIS THESE FEES ARE A COMPONENT OF THE BUDGET THAT WE HAVE BEFORE US TONIGHT. ALSO, IT IS I'M NOT WHERE'S CHRIS? HOW MUCH IS CAN YOU TELL WHAT THAT PERCENTAGE IS FROM SO ON? THE PARKS WAS VERY SMALL PERCENTAGE OF INCREASE. I THINK IT WAS LESS THAN 50,000. IF WE WERE TO DELAY THAT AND AND GO TO THE PARKS BOARD AND COME BACK, IT OBVIOUSLY WOULDN'T BE A FULL YEAR'S IMPACT. AND SO I THINK WE COULD DELAY IT. GO TO THE PARKS BOARD. OKAY. SO COULD WE ADOPT THESE RATES AND STILL GO BACK TO THE PARKS BOARD TO HAVE IT? ABSOLUTELY. AND AND IN FACT, I MEAN YOU CAN APPROVE THESE THE RATES AS THEY'RE PRESENTED. AND THEN THOSE RATES COULD THEN BE AMENDED LATER AT A FUTURE COUNCIL MEETING AFTER MORE INPUT FROM THE BOARD.

WOULD THAT I WOULD LIKE FOR THEM TO AT LEAST LOOK AT IT. I WOULDN'T HAVE ANY IDEA WHAT TO RECOMMEND BECAUSE I DON'T HAVE A CHILD IN SPORTS. I'M WAY PAST THAT IN MY LIFE. BUT THEY DO, AND THAT'S WHY THEY'RE THERE. AND I WANT TO, YOU KNOW, I JUST WANT TO, YOU KNOW, I JUST WANT I WANT TO MAKE SURE THAT WE'RE BALANCING OUT OUR NEEDS FOR OUR RESIDENTS BECAUSE EVERYBODY TELLS US FIELDS, FIELDS, FIELDS, FIELDS BUILD MORE FIELDS, AND WE CANNOT BUILD THEM FAST ENOUGH. AND SO, YOU KNOW, I HATE FOR PEOPLE TO BE TAKING UP SPACE FOR OUR RESIDENTS WHO ARE PAYING FOR THESE. SO THAT'S THAT'S MY COMMENT. YEAH. I CAN TELL YOU, I REMEMBER A TIME AND PROBABLY WHEN I WAS ON PARKS WAY BACK WHEN AND BEFORE THAT WITH PROSPER YOUTH SPORTS COMMISSION, WHERE WE DIDN'T HAVE NONRESIDENT FEES. AND I REMEMBER THE GENESIS OF THAT WAS EXACTLY WHAT YOU SAID WAS TO REALLY BECAUSE WE WERE STARTING TO FEEL THAT SQUEEZE.

AND THE WHOLE PURPOSE OF THOSE FEES WAS TO REALLY, AGAIN, SHIFT SOME OF THAT, THAT BURDEN AND OFF OF OUR RESIDENTS AND ON TO, YOU KNOW, AGAIN, I DON'T KNOW HOW SUCCESSFULLY THAT'S GONE OVER THE YEARS, BUT I THINK IT'S SOMETHING THAT DEFINITELY THE SPIRIT OF WHY WE STARTED IT WAY BACK WHEN WAS ABOUT TEN PLUS YEARS, WAS THAT PURPOSE. ANY OTHER COMMENTS HERE? I JUST YEAH. HOW HOW OFTEN ARE FIELDS THE THOSE TWO FIELDS SCHEDULED BY A NON RESIDENT TEAM. AND THEN I THINK THERE'S ALSO SOME I READ THROUGH SOME OF THE THINGS.

THERE'S CLARIFICATIONS A TEAM CAN BE A RESIDENT TEAM. BUT I THINK THEY CAN STILL HAVE 25% OF THEIR MEMBERS BE NONRESIDENTS. IT'S STILL IT'S 20. YES. SO YEAH SO THERE'S A LOT OF OPPORTUNITIES FOR NON RESIDENTS TO PLAY ON OUR FIELD. SO I WOULD WANT TO SEE A SUBSTANTIALLY HIGHER RATE ACROSS ACROSS THE BOARD FOR ALL NONRESIDENTS. OUR TAXPAYERS PAY FOR THIS NOT THE OTHER WAY AROUND. SO OKAY ANY OTHER QUESTIONS FOR DAN I THINK JUST A PARTING COMMENT, AS FAR AS TAKING IT BACK TO PARKS AND UNDERSTAND THE THE CAUTION WITH THE BUDGET THAT'S BEEN STRUCTURED, I JUST THE MESSAGING TO THE PARKS BOARD.

YEAH, WE'VE APPROVED THIS BUT I JUST I YEAH, YEAH THE MESSAGING OR I'LL HAVE A CONVERSATION.

BUT THE MESSAGING IS WELL WE'LL APPROVE THIS, BUT WE REALLY WANT YOU TO BE THE DEFINITIVE ONES OF COMING UP WITH THE NEW ONES. AND IF THEY COME BACK AND HAVE LOWER FEES, THEN WE'LL HAVE TO DEAL WITH THAT FROM THERE. BUT OKAY. IT'S PART OF THE WAY WE'VE RUN THINGS HERE WITH OUR BOARDS AND COMMISSIONS. ANYTHING THAT LIKE THIS NEEDS TO BE APPROVED BY THIS PARTICULAR BOARD. SO OKAY. THANK YOU. WE NEED TO MESSAGE IT CORRECTLY. THANK YOU. OKAY.

ENGINEERING. ENGINEERING DOES NOT HAVE A BOARD OR COMMISSION ASSOCIATED WITH IT. SO BUT WE DID TAKE IT TO PROSPER DEVELOPERS COUNCIL OKAY. SO FOR ENGINEERING SERVICES THERE'S ACTUALLY FIVE CATEGORIES OF FEES THAT I'LL GO THROUGH WITH YOU. THE FIRST TWO THE INSPECTION FEE, THAT CURRENT RATE WAS ADOPTED BACK IN 2023. YOU MAY RECALL WHEN THE STATE LAW CHANGED ON OUR CIVIL INSPECTION FEES, WE COULDN'T NO LONGER CHARGE A PERCENTAGE OF

[00:50:03]

THE CONSTRUCTION COST. WE HAD TO ACTUALLY GO THROUGH AN ANALYSIS OF WHAT THE COSTS WERE, YOU KNOW, KIND OF ACTUAL COST TO TO PROVIDE THAT TYPE OF SERVICE. SO BACK IN 2023, THAT CURRENT RATE WAS, YOU KNOW, THE BEST ESTIMATE AT THAT TIME OF THE, THE, THE EFFORT THAT THE COST OF PROVIDING THAT EFFORT FOR THE INSPECTION OF THESE VARIOUS CATEGORIES. WHAT'S PROPOSED, YOU CAN SEE IS, IS QUITE A BIT OF AN INCREASE OR AT LEAST A DOUBLE, A DOUBLING OF THE BASE FEE OF THE INCREASE IN EACH ONE OF THOSE CATEGORIES. AND AGAIN, GOING THROUGH THAT PROPOSED RATE, WE DID GO THROUGH THAT ANALYSIS TO MAKE SURE YOU KNOW HOW MANY PEOPLE ARE WORKING ON IT. HOW MANY HOURS ARE THEY WORKING ON IT? WHAT ARE THEY GETTING PAID BENEFIT? I MEAN, JUST ALL OF THAT THAT THAT INFORMATION. SO WE COULD KIND OF BACKTRACK OR BACK INTO A STRUCTURE OF A RATE TO CAPTURE THAT PLAN. REVIEW FEE WAS CALCULATED THE SAME ON THE PROPOSED RATE. WE'RE NOT HAMSTRUNG WITH THE PLAN REVIEW FEE ON A STATE LAW THAT SAYS WE HAVE TO, YOU KNOW, THAT CAN BE BASED ON ANYTHING YOU WANT TO BASE IT ON. BUT WE DID TRY TO AGAIN USE THAT SAME METHODOLOGY AND CALCULATING WHAT WOULD THE PROPOSED RATE WOULD BE BASED ON, ON THE LEVEL OF EFFORT FOR THAT. WHEN CHOOSING THOSE TWO, WE LOOKED AT OUR COMPARABLE CITIES THAT WERE, I GUESS, CLOSE IN AS FAR AS METHODOLOGY. IT WAS KIND OF ALL OVER THE MAP AS FAR AS PEOPLE, HOW THEY HOW THEY PUT TOGETHER THEIR INSPECTION FEES AND THEIR PLAN REVIEW FEES. BUT FROM THIS TABLE, YOU CAN KIND OF SEE WHERE, BASED ON OUR LEVEL OF EFFORT, WE'RE PROPOSED FEES FOR INSPECTION ARE STILL SOMEWHAT LOWER THAN THE THE THE CLASS THAT'S LISTED HERE. WE'RE A LITTLE BIT BELOW MCKINNEY, QUITE A BIT BELOW FRISCO. AND ON THE INSPECTION SIDE, QUITE, QUITE A BIT LOWER THAN SALINA. AND ON THE PLAN REVIEW FEE STILL RUNNING AGAIN BASED ON OUR LEVEL OF EFFORT THERE. LOWER THAN THE THAN THE OTHER TWO THAT ARE SHOWN THAT HAVE ACTUALLY PLAN REVIEW FEES THAT THEY CHARGE. AND THIS IS ON THE SINGLE FAMILY RATE WHEN IT LOOKS AT NONRESIDENTIAL LARGE COMMERCIAL BIG BOX THINGS LIKE THAT. YOU CAN SEE YES, WE CHECKED SALINA. WE DID VERIFY THAT THAT'S THAT'S THAT IS TRUE AND CORRECT BEFORE WE WENT TO PDC ON THAT. BUT WHAT WE'RE PROPOSING AGAIN WE'RE JUST UNDER THE OVERALL FOR THE COMPARABLE CITIES THERE ON OUR LARGE COMMERCIAL, OUR MEDIUM COMMERCIAL AGAIN KIND OF RUNNING THAT SAME SAME GAME GAME AT THEY'RE IN CLOSE PROXIMITY TO OUR NEIGHBORING CITIES. SMALL COMMERCIAL AGAIN KIND OF RUNNING THAT SAME GAMUT. AND THEN FOR MULTIFAMILY DEVELOPMENT, THIS WAS A NEW CATEGORY. YOU SEE WHERE WE'RE EXCUSE ME, NEW CATEGORY, BUT WE'RE WE'RE PROPOSING TO BE OR INCREASE THERE A LITTLE BIT OVER MCKINNEY AND JUST A TAD BIT OVER FRISCO. STILL NOT COMPETING WITH OUR NEIGHBOR TO THE NORTH. AND THEN THE OTHER THREE CATEGORIES OF FEE, WE HAVE OUR LAND DISTURBANCE FEE THAT WAS ADOPTED BACK IN 2022.

YOU SEE SOME SLIGHT INCREASES AND THE COST OF $50 TO $100, DEPENDING ON THE SIZE OF ACREAGE. IF IT'S LESS THAN AN ACRE, IT'S GREATER THAN AN ACRE, YOU KNOW, GOING FROM 200 TO $100 AND THEN SOME FLOODPLAIN RECLAMATION, IF THAT'S ALL THEY'RE DOING, IS KEEPING THE $500, BUT ADDING A $25 PER ACRE FEE. SO JUST MINIMAL IF THEY'RE DOING ANYTHING WITH LAND DISTURBANCE, WITHOUT DEVELOPMENT, WITH DEVELOPMENT PREVIOUSLY THAT WAS CALCULATED VERY SIMILAR TO THAT. WE'RE JUST PROPOSING A FLAT $50 FEE, $200. THE FOURTH CATEGORY CATEGORIES ARE FLOODPLAIN STUDY REVIEW FEE. AND THAT IS A DEPOSIT THAT WE TAKE. AND IT'S A PASS THROUGH THAT. WE HAVE A THIRD PARTY REVIEWER FOR FLOODPLAIN STUDIES, AND WE INCREASE THE DEPOSIT FROM 3000 TO 3500, BECAUSE THAT'S ABOUT WHAT IT'S RUNNING. SO WE MAKE SURE WE HAVE ENOUGH MONEY TO PAY OUR THIRD PARTY CONSULTANT. AND THEN WE INCREASED OUR OUR PORTION THAT WE DO HOLD $150 NONREFUNDABLE ADMINISTRATIVE FEE INCREASED FROM 150 TO 250.

AND THE LAST CATEGORY WAS OUR STORMWATER. I KNOW WE TALKED ABOUT THIS MAYBE LATE LAST YEAR ON OUR ENFORCEMENT SIDE WITH STORMWATER. SO WHAT WE WE DIDN'T HAVE SPECIFICALLY HAVE FEES AS FAR AS THE LEVEL OF EFFORT FOR OUR STORMWATER INSPECTORS. AND SO WHAT YOU'LL SEE HERE IS, IS VERY SIMILAR TO WHAT THEY HAVE IN BUILDING INSPECTIONS. AS FAR AS REINSPECTION, THEY'VE GOT TO GO OUT THERE AND DO $100 RE-INSPECTION FEE NOTICE OF VIOLATION LOT HOLD AND STOP WORK ORDER. JUST JUST TRYING TO BE CONSISTENT WITH OUR BUILDING INSPECTION TEAM. AND WITH THAT I'D BE GLAD TO ANSWER ANY QUESTIONS. MARCUS. OKAY, I'LL JUST ASK. I THINK IT'S A REAL QUICK QUESTION. GOING BACK A FEW SLIDES TO THAT ONE INSPECTION FEE SLIDE. IT WAS THE ONE THAT HAD SELENA WAY OUT OF 700,000, ISN'T THAT CAN YOU GO BACK TO THAT ONE? THE SINGLE FAMILY? NO IT WAS THE. YEAH. WAS THAT NONRESIDENTIAL. YES.

NONRESIDENTIAL. BUT THE ONE YOU JUST HAD. SO ISN'T THAT NUMBER TO SKEWED BECAUSE I THOUGHT

[00:55:03]

THEY HAD LIKE SUPER HIGH FEES FOR QSR DRIVE THROUGH. WAS THAT SOMETHING I SAW DRIVE THROUGH WOULD PROBABLY BE THE SHOULD BE THE SMALL COMMERCIAL SMALL. SO THAT WOULD BE KIND OF THE COMPARISON BETWEEN THEM. YEAH. YOU CAN SEE. YES, QUITE A BIT. SO THAT'S WHAT KIND OF I'D JUST LIKE TO POINT THAT OUT, THAT KIND OF DRIVES THAT WAY OUT OF WAY UP. CORRECT. YES. BECAUSE IT'S KIND OF AN ANOMALY. ALMOST. OKAY. THAT'S ALL. I HAD ANOTHER COMMENT. OKAY. I'VE GOT A FEW HERE, SO BEAR WITH ME. FIRST CLARIFICATION IS ON PLAN REVIEW. I DIDN'T SEE ANY NUMBERS. SO DOES FRISCO NOT DO PLAN REVIEW. SO FRISCO WE COULDN'T FIND THAT THEY DO PLAN REVIEW. THEY JUST DO THE INSPECTION FEE OKAY. SO THEY DON'T DO THAT ON THE ENGINEERING SIDE. CORRECT? OKAY.

I GUESS THE I THINK THE ONE THING THAT WE NEED TO THINK ABOUT, AND THIS IS PROBABLY A POLICY THING FOR COUNCIL TO THINK ABOUT IS, YOU KNOW, IN LOOKING AT ALL THESE RATES, IT'S BEEN MULTIPLE YEARS SINCE WE REVIEWED THIS. AND SO FROM A POLICY PERSPECTIVE, I THINK WE SHOULD BE REVIEWING THESE FEES AT LEAST BIANNUALLY BECAUSE AS MARKETS CHANGE TO WAIT TEN YEARS, TWO YEARS IS TOO LONG. AND TAKE THAT INTO CONSIDERATION. WHEN WE'RE AT ROUGHLY 50% BUILD OUT. THESE FEES ARE SHORT TERM, RIGHT? SO AT THE COMPLETION OF BUILD OUT, WE WILL NOT BE GETTING THESE FEES ANY LONGER. RIGHT. SO THEY'RE GOING TO BE GOING AWAY.

AND SO HOW DO WE PREPARE FOR THE FUTURE IS MAKING SURE THAT WE REVIEW THEM MORE CONSISTENT WAY. SO MAYBE ONE RECOMMENDATION WOULD BE TO ADD THAT AS A POLICY FOR FINANCE COMMITTEE, TO LOOK AT THESE ON A BIANNUAL BASIS, THE OTHER ITEM THAT I'VE GOT IS ON THE FEES THAT WE'RE PROPOSING OUTSIDE OF THE LARGE COMMERCIAL FROM SALINA, BECAUSE I CAN'T FOR THE LIFE OF ME, I DON'T KNOW OF A DEVELOPER THAT WOULD PAY $700,000. BUT I DO THINK THAT, YOU KNOW, PROSPER DOES SET ITSELF APART AND CONSISTENTLY, IF WE'RE BASING OUR FEES ON TRYING TO BE JUST SLIGHTLY UNDER EVERYBODY ELSE, I THINK WE CAN TAKE A DIFFERENT STANCE. RIGHT? AND NOT THAT WE WANT TO GOUGE THE PARTNERS THAT WE HAVE WITH DEVELOPERS THAT ARE COMING TO BUILD HERE IN PROSPER. BUT WE SHOULD AT MINIMUM, BE ON PAR WITH THOSE THAT BORDER OUR TOWN, WITH THE EXCEPTION OF THE THE WILD SWING FROM THE NORTH. RIGHT. SO, YOU KNOW, WHEN WE LOOK AT EACH ONE OF THESE, IT'D BE MY ASK IS THAT WE LOOK AT BEING ON PAR WITH A BLEND OF FRISCO AND MCKINNEY. THEY'RE LARGE TOWNS THAT TOUCH OUR BORDERS. I THINK THAT SALINAS, YOU KNOW, AS THEY START TO HAVE MORE DEVELOPMENT, MAY SEE THAT NUMBER NORMALIZE.

BUT IF WE'RE GOING TO MAKE A CHANGE, MY RECOMMENDATION WOULD BE THAT WE CHANGE IT TO BE IF A DEVELOPER IS GOING TO COME TO THE COLLIN COUNTY OR DENTON COUNTY, THEY'RE GOING TO PAY THESE RATES. RIGHT. AND SO I WOULD LIKE US TO SET OUR RATES ON PAR WITH FRISCO AND MCKINNEY OR A BLENDED AVERAGE, BUT NOT BE BELOW BOTH OF THEM. I THINK THAT WE WE DESERVE THAT TO OR WE WE OWE THAT TO OUR COMMUNITY. WE OWE THAT TO OUR CITIZENS. AND UNDERSTANDING THESE ARE SHORT TERM FEES AND THE SHORT DURATION OF TIME. WE NEED TO MAKE SURE THAT WE'RE PUTTING THOSE INTO OUR INFRASTRUCTURE. THE OTHER ITEM THAT I HAD, IF YOU GO TO THE RESIDENTIAL ONE.

THANK YOU FOR YOUR PATIENCE WITH ME ON THIS. SO WHEN WE LOOK AT THIS ONE, THE INTERESTING THING THAT STANDS OUT IS A LARGE PORTION OF MCKINNEY'S. AND I LIKE AND APPRECIATE THAT WE'RE CLOSER TO WHAT THE FRISCO AND MCKINNEY INSPECTION FEES ARE, BUT THERE'S A LARGE CONSIDERATION ON WHAT MCKINNEY CHARGES FOR PLAN REVIEW. I WOULD BE CURIOUS WHEN WE'RE TALKING ABOUT RESIDENTIAL, THE DELTA OF $60,000. A HOUSE IS A HOUSE IS A HOUSE. RIGHT? AND IF WE'RE GOING TO PUT TIME AND EFFORT FROM A PLAN REVIEW PERSPECTIVE, WHICH IS OUR STAFF'S TIME, I THINK IT'S FAIR TO FIND A COMPARABLE NUMBER THAT IS NORTH OF 14,000. SO AGAIN, NOT LOOKING TO GOUGE DEVELOPERS. BUT I DO THINK THAT, YOU KNOW, WHEN WE TAKE INTO CONSIDERATION THE SHORT DURATION OF BUILDOUT THAT WE HAVE, WE HAVE TO PUT THE RIGHT FEES IN PLACE FROM THIS APPROVAL. AND I KNOW THAT THAT DOES ADJUST THE BUDGET, BUT MY RECOMMENDATION WOULD BE TO PUT THOSE ON PAR WITH OUR FISCAL AND MCKINNEY PARTNERS OR OUR OUR TOWN, NOT PARTNERS. SO THOSE ARE MY ONLY COMMENTS. THANK YOU. LET ME UNDERSTAND.

YOU WOULD YOUR RECOMMENDATION IS WE MOVE THOSE TONIGHT I WOULD FIND YEAH, I KNOW THAT THERE PROBABLY NEEDS TO BE A MORE JUDICIOUS PROCESS TO ARRIVE AT THE RIGHT NUMBER, BUT I DON'T LIKE THAT WE'RE PROPOSING SOMETHING THAT'S BELOW WHAT THOSE PARTICULAR MUNICIPALITIES ARE DOING ON THE REGULAR. OKAY. I DEFER TO THE TOWN MANAGER ON THE EXECUTION

[01:00:03]

OF THAT PARTICULAR. SURE. YOU KNOW, WE'VE GOT TO RUN THE NUMBERS, OBVIOUSLY, TO BE ABLE TO SET A BUDGET FOR WHAT THAT WOULD BE. AGAIN, WE COULD ALWAYS COME BACK. I MEAN, WE'RE GOING THROUGH THIS. WE'RE GOING THROUGH THE FREE REVIEW, THE FEE REVIEW PROCESS RIGHT NOW JUST BECAUSE IT'S THE BUDGET CYCLE. BUT THAT DOESN'T KEEP US FROM ADJUSTING FEES AT ANY TIME DURING THE YEAR, DURING THE FISCAL YEAR. SO AGAIN, I WOULD IF WE'RE GOING TO MAKE ADJUSTMENTS TO THAT HIGHER RATE, I WOULD JUST REQUEST A LITTLE BIT MORE TIME SO I CAN ACTUALLY REFINE THE NUMBERS WITH ENGINEERING AND CERTAINLY WITH FINANCE TO CALCULATE THAT ACCORDINGLY, AND THEN MAYBE COME BACK WITH A BUDGET ADJUSTMENT LATER IN THE FISCAL YEAR. SO IF WE CAN GET AT LEAST 90 DAYS SO WE CAN GET THROUGH THAT AND MAKE SURE WE GET YOU SOME GOOD NUMBERS. SO AGAIN, IF WE IF WE'RE TRYING TO ADOPT THE BUDGET, I ASK IF WE COULD ADOPT IT AS IS AND THEN GIVE US A LITTLE BIT OF TIME SO WE CAN CRUNCH THE NUMBERS, IF THAT'S THE DIRECTION OF COUNCIL TO RAISE THOSE EVEN FURTHER AND THEN COME BACK WITH THE REVISED BUDGET. OKAY. IS THAT ACCEPTABLE TO THE COUNCIL FOR THAT? PERFECT. OKAY. THANK YOU MAYOR. AND AGAIN, THE REASON THE REASON I'M ASKING FOR THE ADDITIONAL TIME IS IF OUR PROCESS IS IS REVIEWING FEES THROUGH THE FINANCE COMMITTEE. WE NEED DUE DILIGENCE TO RUN THE CALCS CALCULATIONS, RUN IT THROUGH THE COMMITTEE'S LENS AND THEN HAVE THAT RECOMMENDATION COME TO THE COUNCIL. THAT'S WHY I'M ASKING FOR SOME SOME TIME. AGREE. OKAY.

THANK YOU. SO WE CAN APPROVE THIS PARTICULAR ORDINANCE AND THEN MAKE ADJUSTMENTS LATER. SO DOES ANYONE HAVE OTHER QUESTIONS FOR STAFF? I HAVE ONE QUESTION AND I APOLOGIZE BECAUSE I'M KIND OF GOING BACKWARDS HERE. BUT ON CODE ENFORCEMENT WHERE WE HAVE THAT'S THAT'S NOT YOU. THAT'S DAVID HOOVER ON CODE ENFORCEMENT WHERE WE HAVE INSPECTION FEES AND REINSPECTION FEES FOR FOOD ESTABLISHMENTS. I KNOW THAT IN THE PAST, OUR CODE ENFORCEMENT OFFICERS HAVE HAD TO GO BACK REPEATEDLY TO SOMETIMES THE SAME RESTAURANT MORE THAN ONCE AND THEN CITE THEM AGAIN AND THEN COME BACK. IS THAT REINSPECTION FEE ALWAYS THE SAME? OR I GUESS WHAT I'M ASKING IS, I WOULD LIKE TO SEE US HAVE AN INCREMENTAL INCREASE WHEN THEY HAVE TO GO BACK THE THIRD, FOURTH AND FIFTH TIME, YOU KNOW, DOES THAT MAKE SENSE? IT DOES MAKE SENSE. AND THAT HAS NOT HAPPENED SINCE I'VE BEEN HERE. OKAY. I'M NOT SAYING IT WOULD NEVER HAPPEN GOING FORWARD. WE OBVIOUSLY ARE GETTING MORE RESTAURANTS. WE'VE HAD A FEW MORE THAT WE'VE HAD TO GO BACK THE SECOND TIME FOR, FOR INSPECTIONS. AND IT'S IT'S JUST PARTLY AS PLACES GET OLDER AND MANAGEMENT CHANGES AND, AND AGAIN, THERE'S MORE OF THEM. BUT I THINK FOR RIGHT NOW I THINK IT'S FINE. BUT GOING FORWARD WE PROBABLY WILL WIND UP STICKING IN SOMETHING. WE DO THAT WITH BUILDING INSPECTIONS.

IF THE INSPECTOR HAS TO GO BACK AFTER TWICE THEN, THEN WE WE IT'S NOT DOUBLE, BUT IT DOES GO UP ABOUT 50% FOR THE THIRD AND THEN THE FOURTH. AND THAT HAPPENS A LOT MORE TIMES THAN IT SHOULD. OKAY. VERY GOOD. THANK YOU. ABSOLUTELY, ABSOLUTELY. AND WE COULD SHUT THEM DOWN TOO. SO THAT CODE ENFORCEMENT SHUTS THEM DOWN. YEAH. WE COULD ALSO. FINE AS WELL. CORRECT. SO THERE'S WE GOT THE MULTIPLE TARGETS SO TO SPEAK. THANK YOU. YOU JUST KIND OF JOG MY MEMORY. IF YOU DON'T MIND ME, POINT OUT ONE THING, BECAUSE I DID GO A LITTLE FAST IN THE FEES ON OUR PLAN REVIEW. KIND OF TO YOUR POINT, COUNCILMAN BARLEY, WE ADDED AFTER OUR THIRD SUBMITTAL. SO IF WE GET A FOURTH OR MORE, IT'S $1,000 EACH SUBMITTAL. SO I DO WANT TO MAKE SURE YOU'RE ALL AWARE OF THAT. APOLOGIZE. WE DID TALK ABOUT THAT ABOUT THAT BEFORE AS PART OF THE MATRIX. BUT LIKE I SAID I KIND OF RAN THROUGH THAT FAST. WANT TO MAKE SURE YOU POINT THAT OUT TO YOU. OKAY. IS THERE ANYONE THAT WOULD LIKE TO MAKE A MOTION ON AGENDA ITEM NUMBER 19? I'LL MAKE A MOTION. I MOVE TO APPROVE AN ORDINANCE AMENDING APPENDIX A FEE SCHEDULE OF THE TOWN'S CODE OF ORDINANCES EFFECTIVE OCTOBER 1ST, 2025.

THANK YOU. MOTION SECOND. OH, HOLD ON, I'VE GOT. CAN WE AMEND THAT? WE WILL COME BACK WITH THE RATES. I MEAN I MEAN WE'RE MAKING A MOTION, BUT DOES THAT NEED TO BE A PART OF THAT? I MEAN, WE HAVE THE MANAGER'S DIRECTION. OKAY. OKAY. I'M SORRY. DID YOU WANT A SECOND? I'LL SECOND THAT. THANK YOU. ALL RIGHT THEN WE HAVE A MOTION AND A SECOND BY MARCUS RAY. ALL

[20. Conduct a Public Hearing to receive public input, consider such input, and consider and act upon an Ordinance adopting the Fiscal Year (FY) 2025-2026 Annual Operating and Capital Project Funds budgets and five-year Capital Improvement Program for the fiscal year beginning October 1, 2025, and ending September 30, 2026. (CL)]

IN FAVOR? MOTION PASSES UNANIMOUSLY. THANK YOU. WITH DIRECTION. AGENDA ITEM NUMBER 20. TO CONDUCT A PUBLIC HEARING TO RECEIVE PUBLIC INPUT, CONSIDER SUCH INPUT. CONSIDER AND ACT UPON AN ORDINANCE ADOPTING THE FY 2025 ANNUAL OPERATING AND CAPITAL PROJECT FUNDS BUDGETS AND THE FIVE YEAR CAPITAL IMPROVEMENT PROGRAM FOR THE FISCAL YEAR BEGINNING

[01:05:05]

OCTOBER 1ST, 2025, ENDING SEPTEMBER 30TH, 2026. CHRIS. THANK YOU, MAYOR PROSPER TOWN COUNCIL. EACH YEAR OUR BUDGET PROCESS STARTS WITH THE COUNCIL'S STRATEGIC VISION, WHICH IS ON THE SLIDE IN FRONT OF YOU. SO AS WE'RE GOING THROUGH THE BUDGET ASKING FOR EXPANDED SERVICES, WE'RE TYING THAT BACK TO COUNCIL'S STRATEGIC VISION. JUST A LITTLE BIT OF THE TIMELINE. THIS STARTED WAY BACK IN FEBRUARY WHEN WE FIRST PRESENTED THE MULTI-YEAR BUDGETS TO COUNCIL. THERE'S BEEN LOTS OF WORK THROUGH BOARDS AND COMMISSIONS TO PULL THIS TOGETHER THROUGH STAFF TO PULL THIS TOGETHER. ON JULY 25TH, WE RECEIVED THE CERTIFIED ROLLS AND WE DID HAVE A BUDGET TOWN HALL ON AUGUST 28TH THAT WAS ATTENDED BY THE THE CITIZENS. AND THEN TONIGHT WE'RE HERE FOR PUBLIC HEARING AND FOR COUNCIL TO CONSIDER ADOPTION OF THE BUDGET. ONE THING I HAVEN'T PRESENTED TO YOU BEFORE, BUT I WANTED TO PRESENT TO YOU, IS THE CONTINUOUS IMPROVEMENT THAT WE'RE DOING AS STAFF. SO IN NEXT YEAR'S BUDGET, WHAT WE'RE PLANNING ON DOING IS CREATING AN OPERATIONAL REVIEW TEAM.

THIS WILL BE A TEAM THAT IS COMPRISED OF STAFF MEMBERS ACROSS THE ORGANIZATION. SO THOSE ANALYTICAL, DRIVEN STAFF MEMBERS THAT WILL COME TOGETHER TO REVIEW PROCESSES TO LOOK FOR EFFICIENCIES AND COST SAVINGS. WE WILL BE HIRING A FLEET COORDINATOR AND CONSOLIDATING THAT FLEET FUNCTION. AND SO WE ANTICIPATE THAT THERE WILL BE SAVINGS FROM THAT. AND THEN LASTLY, WE ARE CONTRACTING WITH A RISK MANAGEMENT CONSULTANT TO PUT IN A RISK MANAGEMENT PLAN TO REVIEW ALL OF OUR, OUR, OUR INSURANCE AND THINGS LIKE THAT TO POSSIBLY IDENTIFY SAVINGS THERE. SO DURING THE BUDGET TOWN HALL, ONE OF THE CITIZENS ASKED SPECIFICALLY ABOUT SENSITIVITY ANALYSIS. AND IF WE'VE DONE ANY AND WHAT WE'RE WE'RE LOOKING AT. SO WHAT I HAVE ON THE SCREEN FOR YOU THERE IS REALLY JUST TO LOOK AT OUR SHORT TERM SENSITIVITY ANALYSIS. AND SO WE'RE LOOKING AT THOSE ELASTIC SOURCES OF REVENUES THAT ARE, YOU KNOW, VERY SENSITIVE TO MAYBE THE ECONOMY SLOWING DOWN. AND I PUT THE PERCENTAGES OF WHAT THOSE REVENUES ARE OUT TO THE SIDE. SO SALES TAX YOU CAN SEE ALMOST 20%. THAT IS, YOU KNOW HIGHLY ELASTIC WITH ANY CHANGES IN THE ECONOMY. FRANCHISE FEES IS SOMETHING ELSE THAT THAT WE'RE LOOKING AT. AND THEN ALSO THE DEVELOPMENT FEES IF IF DEVELOPERS AREN'T COMING IN AND BUILDING THINGS, OBVIOUSLY THOSE AREN'T GOING TO BE AS MUCH. AND THEN FINALLY COURT FINES AND FEES. THAT'S REALLY JUST LAW ENFORCEMENT ACTIVITY. AND I DID WANT TO MENTION BEFORE I MOVE ON THAT WE ARE REVIEWING THESE ON A MONTHLY BASIS. AND SO WE ARE WATCHING THESE. WE HAVE SEVERAL TOOLS IN OUR TOOL BAG TO TO PULL OUT. IF WE NOTICE ANY OF THESE SLOWING DOWN. AND SO I'VE LABELED THIS MITIGATION STRATEGIES. THIS IS JUST A LIST OF ITEMS THAT WE CAN OR STEPS THAT WE CAN TAKE TO TO OFFSET ANY OF THAT REDUCTION IN REVENUE OF AGAIN.

NOW THESE ARE ALL JUST SHORT TERM ITEMS THAT WE CAN DO TO, TO LIMIT OR OUR SPENDING IN IN RESPONSE TO A REDUCTION IN REVENUE. I'M NOT GOING TO READ THOSE OFF TO YOU, BUT THERE'S SEVERAL THINGS THAT ARE TEMPORARY IN NATURE. OBVIOUSLY, WE WOULD DO THE ITEMS THAT AREN'T CITIZEN FACING. FIRST. WE WOULD, YOU KNOW, PULL IN AS MUCH IN-HOUSE AS LITTLE VISIBILITY TO THE CITIZENS AS POSSIBLE. BUT THERE IS THAT POSSIBILITY OF GOING INTO THINGS THAT MAY IMPACT CITIZENS. SO JUST TO BUDGET AND BRIEF IN TOTALS JUST SHY OF 125,000,068 OF THAT COMING FROM THE GENERAL FUND, WE DO OLIVIA, SALES TAX FOR A CRIME, SPECIAL PURPOSE DISTRICT AND A FIRE SPECIAL PURPOSE DISTRICT. AND YOU CAN SEE THE AMOUNTS ON THERE. AND THEN OUR ENTERPRISE FUNDS THAT INCLUDE SOLID WASTE WATER AND SEWER AND STORM DRAINAGE MAKE UP ALMOST 50 MILLION. OUR DEBT SERVICE HAS INCREASED TO 21 MILLION THIS YEAR. AND THEN WE'VE ADDED APPROXIMATELY 39.4 MILLION IN CAPITAL PROJECTS. NOW THAT HAS CHANGED FROM THE LAST TIME I PRESENTED IT TO YOU. THIS WENT THROUGH THE CIP BOARD, AND THIS IS A REFLECTION OF WHAT THE CIP COMMITTEE APPROVED. SO KEY DRIVERS AND I JUST WANT TO TOUCH ON SALES TAX REAL

[01:10:06]

QUICK. WE WERE VERY CONSERVATIVE IN OUR SALES TAX PROJECTIONS THIS YEAR. THAT IS ONE OF THE ITEMS TO THAT. WE COULD POSSIBLY MITIGATE SOME LOST REVENUE IN ANOTHER AREA.

WE HAVE SEVERAL LARGE NEW BUSINESSES THAT CAME IN TO TOWN THAT ARE CREATING QUITE A BIT OF SALES TAX. WE DID INCREASE FEES, AND THIS IS SOME OF THE FEES THAT WE INCREASED THAT THE DEPARTMENTS WENT THROUGH WITH YOU. ONE THEY DID NOT GO THROUGH WITH YOU IS THE PILOT REVENUE. THAT'S THE PAYMENT IN LIEU OF TAXES. SO AS WE COMPARED TO OUR NEIGHBORS, MOST OF OUR NEIGHBORS AND MOST OF THE THE ENTITIES THROUGHOUT THE METROPLEX ARE AT EITHER A 4 OR 5% OF GROSS RECEIPTS ON THE THE WATER PILOT, AND WE ARE AT 2%. AND SO WE LOOKED AT INCREASING THAT UP TO THE 4% FOR FOR THIS YEAR. THIS IS THE LIST OF ALL THE POSITIONS THAT HAVE BEEN ADDED THIS YEAR. WE THERE IS A CHANGE ON THIS TABLE FROM WHEN YOU'VE SEEN IT BEFORE. WE WERE FUNDING ALL THESE POSITIONS STARTING OCTOBER 1ST. THAT HAS CHANGED TO STARTING THE FUNDING FOR THESE POSITIONS FEBRUARY 1ST, AND THAT CHANGE WAS DONE IN ORDER TO BALANCE OUR HEALTH FUND. AND SO THAT'S WHERE THIS CHANGE EQUATED TO ABOUT $615,000. IT WAS A TOTAL OF AROUND 800,000 THAT WE NEEDED TO MAKE UP IN THE HEALTH FUND. THE REMAINDER OF THAT IS COMING FROM THE GENERAL FUND BALANCE. SO THERE WERE ADDITIONAL POSITIONS IN THE WATER AND WASTEWATER FUND AND ALSO STORM WATER DRAINAGE. WE DID NOT CHANGE THE START DATES FOR THESE TWO OR THESE THREE POSITIONS. THERE WAS ALSO A MARKET STUDY THAT WAS IMPLEMENTED IN THIS PAY PLAN. YOU CAN SEE OVERALL TOTAL FOR ALL FUNDS WAS ABOUT 862 FOR THE GENERAL FUND. SPECIFICALLY, IT WAS ONLY 706,000. SO THE HEALTH FUND WE DID BUDGET AN INCREASE TO THE TOWN OF 24%, INCREASE TO THE PREMIUMS THAT WERE PAID. SO THE TOWN PICKS UP THAT PORTION.

THERE WAS ALSO AN INCREASE TO THE EMPLOYEES. DEPENDING ON WHAT PLAN THEY'RE ON, THEY'LL EITHER SEE A 5 OR 10% INCREASE IN THEIR IN THEIR CHOSEN PLAN. THE HEALTH CARE PLAN CAME TO COUNCIL FOR CONSIDERATION AND THE CONSENT AGENDA. AND THERE'S ONE REMAINING PIECE OUT WHICH IS THE STOP LOSS THAT WILL BE BID OUT. SO MAJOR FUND ENHANCEMENTS. WE TALKED ABOUT THE COMPENSATION THERE ARE WE WE ARE CONTINUING TO IMPLEMENT DIFFERENT MODULES OF OUR ERP SYSTEM. AND SO WE'RE CURRENTLY WORKING ON THE PAYROLL AND HR MODULE. WE'RE WORKING ON THE UTILITY CUSTOMER SERVICE MODULE. AND SO WE WILL SEE AN INCREASE IN IN SYSTEM MAINTENANCE FOR THAT. SO WE HAVE THAT INCLUDED. AND THEN THE RISK MANAGEMENT CONSULTANT THAT I TALKED ABOUT EARLIER IN THE CONTINUOUS IMPROVEMENT SECTION, YOU CAN SEE THAT THAT COST IS ONLY 25,000. WE ARE CONTINUING THE CPA GRANTS THE CATALYTIC CONVERTER GRANT. SO THAT CONTINUES ON INTO THE NEW YEAR. WE ARE OPENING FIRE STATION FOUR. AND SO THIS IS THE FIRST YEAR, WHICH IS NINE STAFF MEMBERS. IN SUBSEQUENT YEARS WE'LL HAVE IT'S A THREE YEAR PHASE IN PROCESS. AND SO WE'LL ADD ADDITIONAL STAFF MEMBERS NEXT YEAR AND THEN THE YEAR AFTER THAT. LAST YEAR, VERY LATE IN THE PROCESS, WE RECEIVED NOTICE THAT WE WERE GOING TO HAVE AN INCREASE IN OUR ANIMAL SERVICES CONTRACT THAT WAS NOT INCLUDED IN THE BUDGET LAST YEAR. SO WE HAVE INCLUDED IT IN THE BUDGET THIS YEAR, AND THEN WE WILL BE OPENING RAYMOND PARK. AND SO THE WATER THAT IS ASSOCIATED WITH THAT OPERATIONS, I KNOW THERE IS CONCERTED EFFORT TO POSSIBLY FIND A A WORKAROUND OR PUT A WELL IN TO, TO OFFSET THOSE COSTS IN THE FUTURE. AND SO THIS WOULD JUST BE FOR THE OPERATIONAL PORTION OF THE PARK FOR THIS NEXT YEAR. TURNING OUR ATTENTION TO THE DEBT SERVICE FUND. SO COUNCIL DID AUTHORIZE 43.5 MILLION. HOWEVER, THAT WAS INCLUDED REFUNDING THE NEW MONEY THAT COUNCIL AUTHORIZED WAS 19.45 MILLION. THERE WILL BE A A BALLOT INITIATIVE GOING TO THE VOTERS, WHICH IS

[01:15:05]

APPROXIMATELY 190. I BELIEVE IT'S 192.5 MILLION. THAT WILL GO TO THE VOTERS FOR CONSIDERATION FOR THE 2025 BOND ELECTION, AND THAT'S EIGHT AND A HALF YEAR PROGRAM. WE DID INCREASE THE DEBT SERVICE PORTION OF THE RATE. AND YOU CAN SEE IT DID INCREASE TO 18.2946. WE HAVE POLICIES THAT WE HAVE TO MAINTAIN THAT THE COUNCIL IS SET. ONE OF THOSE POLICIES IS MAKING SURE THAT OUR DEBT PORTION OF THE TAX RATE STAYS, STAYS BELOW 40% OF THE TAX RATE. WE'RE AT 36%, WHICH IS WELL WITHIN THE POLICY REQUIREMENTS. OUTSTANDING TOTAL DEBT WOULD BE 268 MILLION. IF EVERYTHING GOES ACCORDING TO PLAN. AT THE END OF 26, AND THEN ONE OF THE OTHER POLICY REQUIREMENTS THAT WE HAVE IS THE OUTSTANDING TOTAL DEBT AS A PERCENTAGE OF TAXABLE ASSESSED VALUE, THAT IS, BY POLICY HAS TO STAY BELOW 4%. WE ARE EXPECTING IT TO BE AT 2.12%. AND AS THE TOWN GROWS, WE EXPECT THAT PERCENTAGE TO JUST CONTINUE TO COME DOWN. AND WHAT THAT MEANS PER CITIZEN IS APPROXIMATELY 4400 IN OUTSTANDING DEBT. THIS IS THE LONG RANGE PLAN THAT WE PUT TOGETHER. AND SO YOU CAN SEE ACROSS THE TOP THERE'S ADDITIONAL CAPACITY. AND SO IF THE BOND ELECTION WERE TO BE APPROVED BY THE VOTERS, YOU CAN SEE THE ADDITIONAL CAPACITY THAT WOULD COME ON BOARD. AND YOU CAN SEE WE'RE WATCHING THE BOTH POLICY REQUIREMENTS, BOTH THE PERCENTAGE OF TAX RATE AND OUTSTANDING THAT IS COMPARED TO WE STAY WELL WITHIN REQUIREMENTS. AND YOU SEE OVER TIME AS OUR VALUATION GROWS THAT BOTTOM LINE OUTSTANDING DIVIDED BY TAV CONTINUE TO FALL DOWN MORE IN LINE WITH TRIPLE A CITIES. SO THE GOVERNMENTAL CAPITAL PROJECTS THAT WERE ADDED IN THIS YEAR TOTAL ABOUT 39.5 MILLION, 26 MILLION OF THAT WAS FROM STREETS. 7.1 IS FOR PARKS AND THEN 6.3 IS THE FACILITY PROJECTS. I SAID BEFORE THE COUNCIL APPROVED $19.5 MILLION IN NEW BOND MONEY THAT WAS AUTHORIZED IN THE 2020 BOND ELECTION. YOU CAN SEE THE THE PROJECTS THAT ARE DETAILED ON THIS SLIDE. AND THEN IN ADDITION TO THE SELLING DEBT TO BUILD THE CAPITAL PROJECTS, WE ALSO HAVE A PAY AS YOU GO FUNDING. SO WE REFER TO THAT AS THE CAPITAL DEDICATED. THE CIP COMMITTEE DID MEET AND ASSIGN PROJECTS FOR THIS MONEY. SO ALL TOLD WE HAVE ABOUT 10.5 MILLION IN CAPITAL DEDICATED WITH ONLY 700,000 OF THAT REMAINING UNPROGRAMED, WHICH AS WE PROGRESS THROUGHOUT THE YEAR, I'M SURE CAN BE THERE WILL BE A NEED FOR THAT 700,000. SO HISTORICALLY, LOOKING AT OUR GROWTH, WE STILL HAVE ROBUST GROWTH. I THINK 12.3% OVERALL GROWTH IS VERY ROBUST. IT MAY NOT BE AS ROBUST AS IT HAS BEEN IN IN RECENT YEARS, BUT WE CONTINUE TO GROW. WE DID SEE THE VALUATION THAT CAME FROM NEW PROPERTY WENT DOWN JUST A LITTLE BIT, OR DIDN'T ADD AS MUCH AS IT HAD IN THE MOST RECENT YEARS, AT ABOUT 760 MILLION. THAT ACCOUNTS FOR 8% OF OUR GROWTH. AND THEN ON THE REAPPRAISAL SIDE, THAT DID INCREASE THE 425 MILLION, WHICH IS THAT 4.4% GROWTH. AND THAT'S THE CLOSEST APPROXIMATION. WHEN I GET INTO THE TRUTH AND TAX EXPLANATION, THAT'S THE CLOSEST APPROXIMATION. IT'S NOT EXACT TO THAT 3.5% THAT THE STATE ALLOWS US TO GROW. SO THERE ARE A COUPLE OF RATES THAT I WANT TO DEFINE BEFORE WE MOVE FORWARD. THERE'S THE NO NEW REVENUE RATE, WHICH THAT IS THE RATE AT WHICH NO ADDITIONAL REVENUE IS BROUGHT IN. WHEN YOU'RE COMPARING THE SAME PROPERTIES THAT EXISTED LAST YEAR TO THOSE PROPERTIES THIS YEAR, THAT'S AN OVERSIMPLIFICATION OF THE CALCULATION. IT'S A VERY LONG CALCULATION, PROBABLY 26 STEPS, WHICH AKIN TO DOING YOUR YOUR INCOME TAXES AT THE END OF THE YEAR. BUT IT DOES HAVE SOME, SOME ADJUSTMENTS IN THERE. OBVIOUSLY IT EXCLUDES THE NEW PROPERTY. AND THEN THERE'S A SPECIAL TREATMENT FOR THE TOURS THAT WE HAVE. THE NEXT TERM IS THE VOTER APPROVAL TAX RATE. THIS RATE THEY DO THE CALCULATION BASICALLY ON OR

[01:20:07]

THEY DO THE NO NEW REVENUE CALCULATION ON YOUR NO PORTION AND THEN ALLOW YOU TO GROW 3.5%.

THEY THEN CALCULATE WHAT YOUR DEBT SERVICE RATE NEEDS TO BE TO SERVICE YOUR DEBT, AND ADDS THAT TO TO THAT PREVIOUSLY CALCULATED FIGURE TO GIVE YOU YOUR VOTER APPROVAL RATE. THAT RATE WE CANNOT EXCEED WITHOUT GOING TO THE VOTERS IN A GENERAL ELECTION. SO WHEN WE'RE LOOKING AT THE PROPERTY TAX RATE COMPARISON, I HAVE THE CURRENT YEAR IN THE MIDDLE COLUMN AND LAST YEAR'S JUST FOR COMPARISON. SO NO NEW REVENUE TAX RATE IS 48. LAST YEAR WAS 46 ON THE VOTER APPROVAL TAX RATE. IT'S THE 5005, WHICH IS EXACTLY WHAT WE'RE PROPOSING.

YOU CAN SEE LAST YEAR COUNCIL HAD THE OPPORTUNITY TO GO UP TO 52.2. AND WE KEPT IT AT THE 50.5 CENTS. AND THAT'S WHAT WE'RE PROPOSING THIS YEAR IS TO STAY AT THAT 15.5 CENTS.

HISTORICALLY JUST LOOKING AT OUR TAX RATE, YOU CAN SEE THAT IN 25, WE DID COME DOWN TO THE 50.5 CENTS JUST OFF THIS CHART PRIOR TO THE 22 YEAR. WE ACTUALLY CAME DOWN FROM THE $0.52 TO $0.51. AND SO YOU CAN SEE AT THE FAR RIGHT COLUMN THE CHANGE, YOU CAN SEE THAT THERE IS A LITTLE BIT OF INCREASE IN TAX RATE IN THE IN THE GENERAL FUND PORTION. WE DID TAKE THE CAPITAL DEDICATED DOWN. AND THEN MOST OF THE INCREASE YOU CAN SEE IS IN THE DEBT SERVICE SIDE OF THE CALCULATION. SO WHEN WE'RE TALKING ABOUT TAX RATES IT'S IMPORTANT TO DO YOUR BENCHMARKING. THE CITIES LISTED ON HERE WERE OUR COMPARISON CITIES AS APPROVED BY THE FINANCE COMMITTEE. AND WHAT I WANT TO FOCUS YOUR ATTENTION ON IS THE HOMESTEAD EXEMPTION RATE.

NOT ALL CITIES HAVE A HOMESTEAD EXEMPTION. YOU CAN SEE IT'S THE LINE OF MCKINNEY LITTLE ELM DO NOT WHERE THE REST OF THE CITIES DO. IT'S ANYWHERE, YOU KNOW FROM ZERO UP TO 20%. 20% IS THE MAXIMUM THAT YOU CAN DO RIGHT NOW PROSPERS AT THAT 17.5. AND WE WE DID NOT PROPOSE ANY CHANGES TO THAT. THE OTHER THING I WANT TO POINT OUT ON THIS, THIS TABLE IN FRONT OF YOU IS THE CAPITAL DEDICATED COLUMN. THAT IS SOMETHING THAT IS VERY UNIQUE TO PROSPER THE THE PAY AS YOU GO MODEL. THAT'S SOMETHING THAT WAS PUT IN PLACE A FEW YEARS AGO, THAT THIS IS A PORTION OF OUR OPERATIONS MAINTENANCE RATE THAT IS DEDICATED DIRECTLY TO BUILDING CAPITAL PROJECTS. AND SO THE COMPARISON OF THE GENERAL FUND RATES, I THINK, IS BETTER SUITED WHEN YOU SHOW WHAT WE'RE ACTUALLY USING FOR THE GENERAL FUND AS COMPARED TO THE OTHER TOWNS. YOU CAN SEE OUR OUR DEBT SERVICE RATE AT THE INS RATE IS ONE OF THE HIGHER ONES. THAT'S VERY. NORMAL FOR A A TOWN IN OUR POSITION GROWING, PUTTING ROADS ON THE GROUND. YOU CAN SEE THAT WE'RE CONTINUING TO TO SUPPORT THAT DEBT. AND THEN THE EQUIVALENT TAX RATE FOR HOMESTEADS. I WANT TO POINT OUT ON THERE, THIS IS A CALCULATION THAT WAS DONE TO KIND OF CONVERT THE TAX RATE FOR A OWNER OCCUPIED HOME THAT IS SUBJECT TO THE HOMESTEAD EXEMPTION, KIND OF WHAT THE EQUIVALENT RATE THAT THEY WOULD BE PAYING WITH THAT HOMESTEAD.

AND YOU CAN SEE THE AVERAGE FOR ALL OF OUR COMPARISON CITIES JUST BELOW $0.40. AND WE'RE RIGHT AT THEY'RE RIGHT THERE WITH THEM AT THE $0.41. AND THEN ADDITIONALLY, THERE IS AN A LOCAL OPTION TO OFFER A FREEZE. IT'S IT'S A OVER 65 AND DISABLED PERSON EXEMPTION OR CEILING THAT THEY'LL NEVER PAY ANY MORE THAN THEY DO. ONCE THAT IS ESTABLISHED. NOT ALL ENTITIES HAVE THAT PROSPER DOES. THEN I WANT TO REMIND THE AUDIENCE THAT PROSPER IS NOT THE ONLY ENTITY THAT DOES LEVY PROPERTY TAXES. THERE ARE ALSO THE SCHOOL DISTRICT AND COLLIN COUNTY, OBVIOUSLY DENTON COUNTY, AND THEN IN COLLIN COUNTY YOU ALSO HAVE COLLIN COLLEGE THAT LEVIES A PROPERTY TAX DEPENDING ON WHERE YOU LIVE THROUGHOUT PROSPER, YOU MAY BE SUBJECT TO ONE OF THESE RATES. OBVIOUSLY NOT ALL OF THEM, BUT DEPENDING ON WHERE YOU LIVE, THESE ARE THE RATES AS PROPOSED MOST RECENTLY. SO LOOKING AT OUR OUR SALES TAX HISTORICALLY, I PUT THIS CHART ON HERE TO SHOW THAT THE GENERAL FUND DOES COLLECT $0.01, WHICH ALSO INCLUDES THE

[01:25:09]

TERS FUNDS. BUT IN PROSPER WE ALSO HAVE THE CRIME SPD AND SPD, WHICH IS SALES TAX THAT GOES TO SUPPORT THE FIRE AND POLICE DIVISIONS. AND THEN WE ALSO HAVE A SEPARATE LEGAL ENTITY, PROSPER EDC, THAT COLLECTS A HALF CENT OF THE SALES TAX. SO YOU CAN SEE OUR OUR HISTORICAL GROWTH OVER TIME. AND THIS IS JUST LOOKING AT THE GENERAL FUND. YOU CAN SEE IN 21 AND 22 THAT THAT METEORITE METEORIC RISE IN SALES TAX AND THAT IS COMING DOWN. WE ANTICIPATED AS YOU CONTINUE TO GROW, OBVIOUSLY YOU CAN'T HAVE THE SAME PERCENTAGE OF GROWTH EVERY YEAR.

THAT BEING SAID, I DO BELIEVE WE ARE VERY CONSERVATIVE ON THE SALES TAX ESTIMATE. SO I DO EXPECT ACTUALS TO EXCEED WHAT WE HAVE BUDGETED IN THIS BUDGET. SO I WENT THROUGH THESE SLIDES WHEN WE DISCUSSED THE UTILITY FUNDS. I'LL SKIP OVER THOSE REALLY QUICKLY. BUT THEN I ALSO WANT TO MENTION, IN ADDITION TO THE OTHER FEES THAT WE'VE DISCUSSED TONIGHT, THERE'S A COUPLE OF OTHER ONES THAT WE'RE WE'RE LOOKING AT INCREASING THE SOLID WASTE FUND. SO THAT WAS CREATED SEPARATE IN 2023. THAT'S SELF-SUPPORTED. AND OF COURSE IS THE FEES ARE INCREASED ACCORDING TO THE CONTRACT WHEN WE'RE LOOKING AT STORM DRAINAGE. SO THE RATE HAS BEEN NOT INCREASED SINCE 2018. SO TO TO COUNCILMEMBER RAY'S POINT, THIS IS SOMETHING THAT OBVIOUSLY WE WOULD BRING BACK AT MINIMUM ON A BIANNUAL BASIS. BUT WE LOOKED AT THE THE RESIDENTIAL TIERS. SO RESIDENTIAL TIER ONE IS ANY LOT SIZE THAT'S UNDER 10,000FT■!S.

THEY CURRENTLY PAY $4 ON A MONTHLY BASIS. RESIDENTIAL TIER TWO WHICH IS LOT SIZES ABOVE 10,000. THEY'LL BE PAYING 615. AND THEN THE COMMERCIAL WE'VE INCREASED THAT BY $1. IT'S $2 NOW PER 1000FT■!S OF IMPERVIOUS SERVICE. AND CIP FUNDS ARE OBVIOUSLY ALWAYS SUBJECT TO CHANGE ACCORDING TO THE COMMITTEE. AND THAT IS ALL I HAVE IN MY PRESENTATION. BUT I'D BE HAPPY TO ANSWER ANY QUESTIONS. NOW. I DID JUST DO THIS ONE PRESENTATION FOR THE NEXT THREE ITEMS, BUT I CAN BE AVAILABLE FOR ANY QUESTIONS THE COUNCIL MAY HAVE. THANK YOU CHRIS. THANK YOU FOR ALL THE EFFORT TO PUT THIS IN. AND I'D LIKE TO AS WE'RE DOING THIS, THANK THE FINANCE COMMITTEE FOR THE WORK TO HELP PUSH THIS ALONG. SO I DID AND THIS GOES BACK ABOUT TEN TO 15 TO 20 SLIDES. ONE OF THE THINGS THAT THE LAST FINANCE COMMITTEE MEETING WAS THE HEALTHCARE FUND. AND I NOTE THAT YOU THE WAY WE SOLVE THAT PARTICULAR PROBLEM WAS BRINGING FORWARD OR PUSHING BACK THE HIRINGS TO FEBRUARY. BUT THEN YOU MADE ANOTHER COMMENT THAT CURRENTLY THERE IT IS CURRENTLY OUT TO BID FOR STOP LOSS. CORRECT. WHAT IS YOUR PROVISION IF THAT STOP LOSS DOESN'T? HOW MUCH ROOM DO YOU HAVE? IF THAT'S A FAIRLY STEEP RISE IN YOUR STOP LOSS CONSIDERING THE PREVIOUS HISTORY? YOU'RE RIGHT. SO FIRST, I'D LIKE TO SAY THAT WE DID ANTICIPATE A SIGNIFICANT INCREASE BASED ON OUR JUST CURRENT CLAIMS DATA. WE ARE ANTICIPATING A SIGNIFICANT INCREASE. IF IT WERE TO INCREASE MORE THAN THAT, THEN WE COULD. THERE'S SEVERAL ITEMS, I THINK, ON THAT, THAT MITIGATION STRATEGIES THAT WE COULD DO TO TO MAKE UP FOR THOSE COSTS. OKAY. SO THAT'S A CONTINGENCY PLAN OKAY. YEAH. I'LL DEFER THE REST OF COUNCIL ON ON MORE QUESTIONS FROM THIS POINT FORWARD. CAN YOU GO TO THE SLIDE FOR CAPITAL DEDICATED. JUST THE YEAH. YES OF COURSE.

SORRY. I JUST WANT TO POINT OUT I'D PROGRAMED 707,000. IT'S NOT BECAUSE WE DIDN'T HAVE PROJECTS.

I JUST I JUST WANT TO CLARIFY THAT THAT WAS A DECISION THAT THE CIP COMMITTEE MADE BECAUSE WE HAVE NOT GONE OUT TO BID FOR THE WELL FOR RAYMOND AND SOME OTHER PROJECTS THAT WE'VE APPROVED. BUT WE WEREN'T WE HAVEN'T GONE OUT TO BID. SO WE'RE WORKING ON ESTIMATES. SO WE WANTED TO MAKE SURE WE HAD SOME MONEY IF THERE WERE OVERAGES, YOU KNOW, OVER THE ESTIMATED COSTS. JUST JUST A POINT OF CLARIFICATION NOTED, NOTED, AND I APOLOGIZE. I SHOULD HAVE BEGUN WITH ACTUALLY ASKING THE TOWN MANAGER IF HE HAD COMMENTS, AS THIS IS HIS

[01:30:02]

BUDGET TO THAT HE IS SUBMITTING TO THE COUNCIL FOR APPROVAL. THANK YOU MAYOR. MEMBERS OF COUNCIL, CERTAINLY MEMBERS OF STAFF TOO THAT WORKED ON THIS. IT'S YOU KNOW, WHEN YOU GO THROUGH A BUDGET, YOU KNOW, YOU BEGIN WITH ALL THESE CERTAIN ASSUMPTIONS. AND THEN OF COURSE, THINGS CHANGE THROUGHOUT THE SUMMER. OUR BIGGEST CHALLENGE THIS YEAR, QUITE HONESTLY, HAS BEEN THE HEALTH FUND. WE'VE HAD HUGE CLAIMS THIS CURRENT YEAR THAT WE'RE WORKING THROUGH, AND SO THERE'S A LOT OF UNCERTAINTY THERE AS WE GO THROUGH THE BIDDING PROCESS AND THINGS OF THAT NATURE. SO SO THAT'S BEEN THE BIGGEST CHALLENGE. I MEAN, CERTAINLY AS WE GROW AS A COMMUNITY AND WE'RE ADDING A FOURTH FIRE STATION, WE'RE ADDING ADDITIONAL STAFFING IN THE POLICE DEPARTMENT ALONG WITH SOME OTHER DEPARTMENTS. THAT'S JUST PART OF DOING BUSINESS WITH AS A GROWING COMMUNITY. BUT AGAIN, THAT'S THOSE AREN'T ISSUES. THOSE AREN'T THOSE AREN'T CERTAINLY AREN'T EXPENDITURES THAT WE SHOULD BE TAKEN LIGHTLY BECAUSE THOSE AREN'T, AGAIN, WE DON'T TAKE THOSE FOR GRANTED. SO THANK YOU ALL ON THE COUNCIL FOR FOR APPROVING THOSE. YOU KNOW, AGAIN, BECAUSE OF THOSE CHALLENGES WITH THE HEALTH FUND AND MAKING SOME, SOME LAST MINUTE CHANGES, WE DID HAVE TO MAKE SOME LAST MINUTE ADJUSTMENTS WITH, WITH THE PROPOSED BUDGET. AND SO A LOT OF THAT IS, IS THROUGH THE THE NEW POSITIONS THAT ARE BEING FUNDED. SO WE ARE ASKING THE DEPARTMENTS TO WAIT A LITTLE LONGER THAN WHAT WE'D ANTICIPATED. BUT BUT THAT'S JUST JUST PART OF THE PROCESS TO ABSORB THOSE EXPENDITURES WITHIN THE BUDGET THAT'S BEEN FILED WITH THE COUNCIL. SO I REALLY DON'T HAVE A WHOLE LOT TO ASK, EXCEPT THAT IT'S BEEN A WORK IN PROGRESS. IT'S BEEN, I THINK I BELIEVE IT'S BEEN I THINK WE'RE GETTING BETTER AT THE PROCESS. IT'S BEEN REALLY.

IT'S BEEN. A LOT OF WORK HAS BEEN DONE WITH STAFF, ALONG WITH THE FINANCE COMMITTEE MEETING EARLY ON THOSE MONDAYS AND SOMETIMES FRIDAY MORNINGS TO GO THROUGH THOSE THINGS. AND AND I APPRECIATE THE INPUT AND APPRECIATE THE OPEN MINDEDNESS, BUT IT'S A IT'S A SOLID BUDGET.

WE STAND BEHIND IT, IT'S BALANCED. AND QUITE HONESTLY, WE HAVE OPPORTUNITIES. IF WE DO HAVE BETTER, BETTER RESULTS OF OUR HEALTH PLAN, STOP LOSS COULD COME IN LOWER AGAIN. THAT GIVES US A LITTLE BIT MORE, MORE ABILITY TO TO BE A LITTLE BIT MORE FLEXIBLE WITH WITH FUNDINGS. BUT I DO BELIEVE IN THE BUDGET WE HAVE AND APPRECIATE YOUR TIME. THANK YOU VERY MUCH. I'LL OPEN IT UP TO MORE QUESTIONS FOR STAFF. RECOGNIZE THAT IT IS. THIS IS A MULTI AGENDA ITEM QUESTION ANSWER PLEASE. AGAIN I ECHO ALL THE WORK ESPECIALLY BEING ON THE FINANCE COMMITTEE. AND I KNOW WE WERE DOWN TO THE WIRE ON SOME OF THIS HEALTH CARE STUFF. SO I HAD THE SAME QUESTION ABOUT THE OUT FOR BID, BUT ALSO JUST WANTED CLARIFICATION ON THE HOW WE CAME TO THE FUNDING THERE, THAT MOST OF IT WAS COMING FROM DELAYED HIRING, THE REST COMING FROM GENERAL FUND BUDGET. DOES THAT MEAN THE RESERVE BALANCE? YES. SO WE WE'RE WE'RE MAINTAINING OUR LEGALLY REQUIRED HOUR BY THE TOWN CHARTER AND THEN ALSO BY THE POLICY. WE'RE WE'RE LEAVING THAT 21% OR MEETING THAT REQUIREMENT. WE JUST DON'T HAVE MUCH EXTRA THAN, THAN THAT. OKAY. AND YEAH, I ASSUME THAT'S I JUST WANTED TO MAKE SURE IT WAS ENUMERATED THAT WE DO HAVE A POLICY. SO IT'S NOT LIKE WE'RE DIPPING INTO FUNDS BELOW OUR POLICY. YES. EVERYTHING IN THIS THIS BUDGET IS WITHIN POLICY. RIGHT. OKAY. AND THEN. IN THAT REGARDS, WHEN JUST BASED ON KIND OF THE MESSAGING, EVEN A LITTLE BIT ABOUT WHAT MARIO JUST RELAYED IN REGARDS TO ONE, THIS MAJOR, YOU KNOW, STOP LOSS OUT FOR BID COULD COME IN BETTER THAN YOU HAD BUDGETED. PLUS WE KNOW WE MIGHT HAVE CONSERVATIVE RESULTS. HOW WHAT'S THE PROCESS FOR WHERE THAT MONEY GOES AND HOW DECISIONS ARE MADE IN REGARDS TO THE. SO COUNCIL APPROVES AN EXPENDITURE BUDGET. YOU'VE GIVEN THE TOWN MANAGER SOME LEEWAY WITHIN FUNDS. BUT IF IF WE WANTED TO INCREASE A FUND BY $1.01, THAT WOULD HAVE TO COME BACK TO COUNCIL FOR APPROVAL. OKAY. SO LET'S SAY THAT WE HAD 2 MILLION INSTEAD OF A MILLION IN SALES TAX. THAT'S GOING TO GO INTO THE GENERAL FUND AS A RESERVE. AND THEN IF THERE'S MAJOR EXPENSE CHANGES THAT AREN'T ALREADY APPROVED, THEN THAT WOULD COME BACK BEFORE US. SO. CORRECT. OKAY. SO I JUST WANTED TO CLARIFY THAT TOO.

THAT'S THE WAY I THOUGHT THAT PROCESS WORKED. THE OTHER QUESTION I HAVE, AND I SHOULD HAVE ASKED THIS IN ADVANCE, AND I THINK MAYBE YOU'VE SAID IT BEFORE, BUT WHEN THE CAD VALUES CAME BACK FOR SEVERAL YEARS, WE'VE BEEN RUNNING WITH A I DON'T KNOW WHAT THE RIGHT TERM IS, BUT THE THE CAP VALUES GOING FORWARD, DO WE STILL HAVE A SIGNIFICANT AMOUNT OF MONEY IN THE CAP VALUES FOR ASSESSED VALUE? SO THE THE SHORT ANSWER IS YES. ONE OF THE TRENDS THAT

[01:35:03]

WE'VE SEEN IS A LOT OF THE CAP VALUE THAT IS COMING ONLINE IS ACTUALLY BEING EATEN UP BY OR NEW FREEZES COMING ONLINE AS WELL. AND SO IT'S NOT A ONE FOR ONE RELATIONSHIP. WE ARE SEEING AN INCREASE IN VALUE. BUT YOU KNOW, THE CAP VALUE IS COMING ON QUICKER THAN THE FREEZES INCREASING. BUT THE FREEZE IS TAKING A SIGNIFICANT PORTION OF THAT CAP VALUE. OKAY. THANK YOU.

WITH THAT ONE. ALSO KIND OF FOLLOWING UP ON CHRIS'S FOR THE AUDIENCE AT HOME, THAT MAY BE WONDERING THE QUESTION OF UNUSED INCREMENT VALUES. WE IN THE PAST WE'VE HAD SOME UNUSED INCREMENT. I WANT TO DISCUSS THAT BRIEFLY. YES. SO THE THE STATE HAS RECENTLY CHANGED THE NAME OF THAT TO FOREGONE REVENUE. SO WHAT THEY IF YOU DON'T ADOPT THE UP TO THE VOTER APPROVAL TAX RATE, ESSENTIALLY YOU CAN HOLD ON TO THAT FOR THE NEXT THREE YEARS AND INCREASE YOUR TAX RATE LATER FOR THAT. THE TOWN CURRENTLY DOESN'T HAVE ANY UNREALIZED REVENUE, AND SO WE DON'T HAVE ANY IN RESERVE. WE'RE THE THE TAX RATE THAT WE'RE PROPOSING IS EQUAL TO THE VOTER APPROVAL RATE. AND SO BY ADOPTING THIS YOU WOULDN'T CREATE ANY UNUSED INCREMENT EITHER. THANK YOU. THANK YOU, JEFF CAMERON. NO. OKAY. MARCUS, I DON'T REALLY HAVE ANY QUESTIONS, JUST COMMENTS. I WANT TO PERSONALLY COMMEND THE ACCOUNTING TEAM AND TOWN MANAGER AND STAFF. PUBLIC SAFETY I KNOW, YOU KNOW, PAUSING HIRES IS DIFFICULT, ESPECIALLY WHEN THERE'S A GREAT DEMAND. BUT WHAT I DO APPRECIATE IS THE COMMUNITY OF THIS TEAM TO COME TOGETHER FOR THE BENEFIT OF THE WHOLE TEAM WHEN IT COMES TO THE HEALTH FUND AND KNOWING THAT, YOU KNOW, WE'RE GOING TO HAVE GOOD YEARS, WE'RE GOING TO HAVE BAD YEARS.

BUT ALL OF US COMING TOGETHER TO UNITE BEHIND THAT MAKES PROSPER AND MAKES YOU GUYS A REALLY SPECIAL. SO I JUST WANTED TO THANK YOU ALL FOR THAT. THANK YOU. CRAIG. YES.

YEAH. YES. I WOULD LIKE TO ECHO THAT. THANK YOU TO THE STAFF COMING TOGETHER. WORK OF THE FINANCE COMMITTEE JUST REAL QUICK. AND IT MAY HAVE BEEN IN ONE OF YOUR EARLIER SLIDES. HOW MANY DAYS ARE WE OVER ON THE GENERAL FUND BALANCE FOR THE 75 DAY RESERVE? IT'S CALCULATED AS A PERCENTAGE, A PERCENTAGE. THE THE THE CHARTER IS 20%. AND WE'VE ADDED 1% MORE TO THAT. SO IT'S A 21%. I DON'T KNOW WHY I HAVE 75 DAYS. I THINK THAT WAS PREVIOUS COUPLE OF YEARS BACK.

OKAY. IT HAD A DAILY. YEAH. OKAY. GOTCHA. YEAH. OKAY. THAT'S THAT'S REALLY ALL I HAD.

BUT THE CHARTER ESTABLISHES THE 20%. AND THEN WE'VE ADDED AS A COUNCIL POLICY 1%. GOTCHA. OKAY.

SORRY I HAD ONE OTHER COMMENT ON YOUR CHART THERE THAT SHOWED ALL THE DIFFERENT RATES. WE'RE COMPARING OUR COMPARISON CITIES. WE'VE GOT THE BLENDED AVERAGE RATE. I THINK IT'S IMPORTANT ALSO TO CALL OUT THAT THAT'S NOT A WEIGHTED AVERAGE BASED ON POPULATION. THAT'S JUST A STRAIGHT AVERAGE. SO IF WE WERE TO TAKE, YOU KNOW, WHERE YOU'VE GOT A COUPLE CITIES WHERE THEY'RE IN THE 20 PERCENTS, YOU KNOW, IT'S NOT A WEIGHTED AVERAGE AND A GOOD DISTRIBUTION.

SO IT KIND OF SKEWS THAT NUMBER A LITTLE BIT. BUT I THINK IT'S IMPORTANT JUST TO YOU KNOW, HIGHLIGHT THAT THAT YOU KNOW WHEN WE LOOK AT ALL THESE AS A HOLISTIC AMOUNT, IT MAY BE INTERESTING TO LOOK AT IT FROM A WEIGHTED POPULATION PERSPECTIVE. BUT ALL IN ALL I'M VERY PLEASED WITH THIS. THANK YOU. YEAH. YEAH. THANK YOU VERY MUCH. ALL RIGHT. WITH THAT, I HAVE A STATEMENT TO READ PRIOR TO OPENING THE PUBLIC HEARING. THIS IS THE ONLY PUBLIC HEARING TO DISCUSS THE FY 2025 2026 PROPOSED BUDGET. A PUBLIC HEARING TO DISCUSS THE PROPOSED TAX RATE WILL BE HELD ON SEPTEMBER 16TH, 2025 AT 6:15 P.M. AT THE COUNCIL CHAMBERS OF THE PROSPER TOWN HALL, LOCATED AT 250 WEST FIRST STREET, PROSPER, TEXAS. 75078. THE TOWN COUNCIL WILL VOTE ON THE FY 2025 2026 PROPOSED BUDGET AND THE PROPOSED TAX RATE AT A MEETING SCHEDULED ON SEPTEMBER 16TH, 2025 AT 6:15 P.M. LOCATED IN THE COUNCIL CHAMBERS.

PROSPER TOWN HALL AT 250 WEST FIRST STREET, PROSPER, TEXAS. ONCE THE PUBLIC HEARING IS OPEN, THE PUBLIC IS ENCOURAGED TO EXPRESS THEIR VIEWS. AS MENTIONED, THIS ITEM IS A PUBLIC HEARING. THEREFORE, THE PUBLIC HEARING IS NOW OPEN. IS THERE ANYONE THAT WOULD LIKE TO SPEAK ON THIS PARTICULAR ITEM? HEARING NONE, I WILL CLOSE THE PUBLIC HEARING. I WOULD ASK ACTUALLY, AT THIS TIME A MEMBER OF THE FINANCE COMMITTEE, WOULD YOU BE WILLING TO MAKE THE MOTION ON THE BUDGET? I MOVE TO APPROVE THE ORDINANCE ADOPTING THE FISCAL YEAR 2526 ANNUAL BUDGET AND CAPITAL IMPROVEMENT PROGRAM FOR THE FISCAL YEAR BEGINNING OCTOBER 1ST, 2025 AND ENDING SEPTEMBER 30TH, 2026 AS PROPOSED. SECOND, WE HAVE A MOTION BY MARCUS RAY, SECONDED BY CHRIS KERN, AND THIS IS A ROLL CALL VOTE. SO I'LL START AT THE FAR LEFT HAND SIDE WITH CAMERON. FOR FOUR FOR FOUR, FOUR, FOUR. THAT MOTION PASSES UNANIMOUSLY SEVEN ZERO. THANK

[21. Conduct a Public Hearing to consider and act upon an Ordinance adopting a tax rate of $0.505 per $100 valuation for fiscal year 2025-2026. (CL)]

[01:40:10]

YOU VERY MUCH. THE NEXT AGENDA ITEM IS AGENDA ITEM NUMBER 21, WHICH IS THE SAME PRESENTATION THAT WE JUST SAW. AND SO AT THIS TIME WE WILL CONDUCT A PUBLIC HEARING. AND PRIOR TO THE PUBLIC HEARING I HAVE A STATEMENT TO READ. AND THIS IS THE ONLY PUBLIC HEARING TO DISCUSS THE FY 2025 2026 PROPOSED TAX RATE. THE TOWN COUNCIL WILL VOTE ON BOTH THE 2025 PROPOSED BUDGET AND THE PROPOSED TAX RATE AT. TONIGHT'S MEETING IS PREVIOUSLY PUBLISHED AND SCHEDULED. ONCE THE PUBLIC HEARING IS OPEN, THE PUBLIC IS ENCOURAGED TO EXPRESS THEIR VIEWS AT THIS TIME. WE THIS IS A PUBLIC HEARING AND IT IS NOW OPEN FOR AGENDA NUMBER 21 ON THE TAX RATE. IS THERE ANYONE THAT WOULD LIKE TO SPEAK ON THIS PARTICULAR ITEM? SEEING NONE, I'LL CLOSE THE PUBLIC HEARING. IS THERE ANY OTHER COUNCIL DISCUSSION? IS THERE ANYONE THAT WOULD LIKE TO MAKE A MOTION ON THIS AGENDA ITEM? I CLOSE MY PDF. CAMERON. OKAY, OKAY, I CAN MAKE A MOTION. MAYOR IF YOU'D LIKE. ARE YOU PREPARED? I'VE GOT IT HERE.

OKAY. I'M SORRY I MOVE THAT THE PROPERTY TAX RATE BE INCREASED BY THE ADOPTION OF A TAX RATE OF 0.505, WHICH IS EFFECTIVELY A 4.70% INCREASE IN THE TAX RATE. ALL RIGHT. MOTION BY MARCUS RAY. SECOND SECOND BY CHRIS KERN. AND THEN I BELIEVE THIS IS ALSO A ROLL CALL VOTE.

IS THAT CORRECT. ALL RIGHT I'M GOING TO START WITH CAMERON FOR FOR 4444 AND FOUR MOTION PASSES UNANIMOUSLY. THANK YOU VERY MUCH. ALL RIGHT. AGENDA ITEM NUMBER 22 IS RATIFYING THE

[22. Ratifying the property tax increase in the budget for fiscal year (FY) 2025-2026. (CL)]

PROPERTY TAX INCREASE IN THE BUDGET FOR FY 2025 2026. THE SAME PRESENTATION HOLDS THAT WAS AVAILABLE BEFORE. AND SO. DOES ANYBODY HAVE A MOTION ON AGENDA ITEM NUMBER 22 I CAN DO THIS ONE. I MOVE TO RATIFY THE PROPERTY TAX INCREASE IN THE BUDGET FOR THE FISCAL YEAR, FY 2025 2026 MOTION BY CHRIS KERN I HEARD CAMERON REEVES FOR THE SECOND. AND THEN IS THIS THIS IS NOT A ROLL CALL VOTE. SO ALL IN FAVOR. MOTION PASSES UNANIMOUSLY. THANK YOU, THANK YOU THANK YOU CHRIS. CHRIS, THE NEXT AGENDA ITEM I BELIEVE HAS BEEN PULLED BY STAFF. IS IT TABLED? PULLED. NO ACTION NEEDED. MAYOR. IT'S JUST BEEN PULLED. THANK YOU VERY MUCH.

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

ALL RIGHT. THE NEXT AGENDA ITEM IS AGENDA ITEM NUMBER 24, WHICH IS TO DISCUSS AND CONSIDER THE TOWN COUNCIL SUBCOMMITTEE REPORTS. I BELIEVE THAT BY WAY OF THE BUDGET, THE TAX RATE AND EVERYTHING, THE FINANCE COMMITTEE'S WORK HAS BEEN SEEN. IS THERE ANY DIFFERENCE FROM THE CIP COMMITTEE? THEY'D LIKE TO ADD ON EVERYTHING AS YOU JUST SAW? ALRIGHT THEN OUR NEXT AGENDA ITEM WOULD BE TO POSSIBLY DIRECT, DIRECT STAFF TO SCHEDULE TOPICS FOR DISCUSSION AT A FUTURE TOWN MEETING. I'LL NOTE COUNCIL MEMBER RAY'S COMMENT ON FEES.

AND DO YOU HAVE ANOTHER ITEM I DO? IT ACTUALLY PERTAINS TO AGENDA ITEM 19. WE APPROVED TONIGHT UNDER SUBSECTION FOUR. IT WAS PERTAINING TO SIGNS AND SIGN FEES. AND IT REALLY IS A REQUEST OF STAFF TO MAYBE LOOK AT PASSING AN ORDINANCE OR BRINGING FORTH A RECOMMENDATION FOR AN ORDINANCE AGAINST BANDIT SIGNS THAT WOULD GIVE US THE ABILITY TO, AS THOSE ARE COLLECTED EVERY MONDAY AND TUESDAY, BECAUSE THEY'RE PLACED AT ABOUT 505 ON FRIDAYS, WHEN THOSE ARE COLLECTED, ASSESS A PENALTY BACK TO THOSE COMPANIES PUTTING OUT THE SIGNS BECAUSE THEY DIDN'T SECURE A PERMIT. AND IT'S A SIMPLE MATH PROBLEM. HOW MANY SIGNS YOU HAVE X AMOUNT OF DOLLARS. YOU GET AN INVOICE. I THINK THAT THAT WOULD SET A TONE WITH THE BANDIT SIGNS. AND IF IT'S CAUSING TOWN STAFF LABOR AND TIME TO GO COLLECT THOSE, I THINK IT'S ONLY FAIR THAT THEY PAY FOR THAT. I'VE NOTICED THEY'VE INCREASED IN THEIR FREQUENCY, SO I SUPPORT SOMETHING LIKE THAT. YEAH. ANYONE ELSE? SOMETIME I'D LIKE TO HAVE A REPORT ON THE ANIMAL SERVICES FOR THE TOWN. AND JUST WHAT WHAT ALL GOES ON WITH THAT? THEY'RE TALKING ABOUT THE FEES GOING UP AND I JUST HAVEN'T HEARD ANYTHING ABOUT IT. SURE.

YEAH. THANK YOU. OKAY. AS WE ALSO CONTINUE ON, THIS IS MORE OF A COMMENTARY. I BELIEVE IT

[01:45:03]

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