04.13.24 Town Council Meeting Presentation Work Session - Strategic VisioningWelcome to the April 13, 2024,
Prosper Town Council Strategic
Visioning Work Session
Discuss Diversified Tax Base
of the Town
Bob Scott, Deputy Town Manager
51%51%45%46%
49%
17%
18%
20%23%
21%
6%
5%
5%
6%
6%
16%
17%
20%16%
13%
10%
9%
10%10%
10%
-
5
10
15
20
25
30
35
40
45
50
2019 2020 2021 2022 2023MillionsGeneral Fund Revenue
Property Taxes Sales Taxes Franchise Fees License, Fees & Permits All Other
Property Tax Revenue
49% of General Fund Revenue
100% of Debt Service Fund Revenue
80%78%78%
78%
79%
20%22%
22%
22%
21%
-
1
2
3
4
5
6
7
8
9
2019 2020 2021 2022 2023BillionsTaxable Assessed Value
Residential and Commercial
Residential Commercial
Percentage Growth 17% 11% 16% 24% 23%
73%
27%
Collin vs Denton by Land Area
Collin Denton
27%
73%
Collin vs Denton by Taxable Assessed Value
Denton Collin
83%80%78%
76%
73%
17%
20%
22%
24%
27%
-
1
2
3
4
5
6
7
8
9
2019 2020 2021 2022 2023BillionsTaxable Assessed Value by County
Collin Denton
Pros & Cons of SF Residential vs. Commercial A/V
•SF Residential
•Pros
•More stable
•Typically assessed at close to market
value
•Prosper values are high per capita
•Growth capped at 10% per year
•Generates destination sales tax
•Cons
•Generates higher demands for
services than some commercial
•Has more exemptions
•Commercial
•Pros
•Industrial, warehouse and office requires
little services
•All commercial has sales tax significant
generation potential
•Industrial, warehouse & to lesser extent
office hold value overtime
•BPP
•Cons
•Retail has shorter life cycle, generates
traffic & crime
•Values are volatile and often significantly
under market
•Can demand high incentives and rebates
Taxable Value Market Value
2019 4,307,819,546 6,263,053,680
2020 4,798,386,226 7,108,809,094
2021 5,583,050,700 8,080,386,167
2022 6,910,607,716 11,054,042,497
2023 8,488,871,564 14,347,575,856
Assessed Valuation Growth Over Time
80%78%78%
78%
79%
20%22%
22%
22%
21%
-
1
2
3
4
5
6
7
8
9
2019 2020 2021 2022 2023BillionsTaxable Assessed Value
Residential and Commercial
Residential Commercial
Single Family
79%
Multi-family
3%
Ag Land
0%
Commercial
17%
Industrial
0%
Utilities
1%
Distribution of TAV by Category, $8.3 Billion
Single Family
61%
Multi-family
2%
Ag Land
7%
Commercial
10%
Industrial
0%
Utilities
0%
Totally Exempt
9%
Homestead Cap
Value
11%
Distribution of Market Value by Category, $14.4 Billion
468,421
471,787
504,329 537,863
587,763
5,965
6,741
7,369
8,261
9,253
4,000
5,000
6,000
7,000
8,000
9,000
10,000
300,000
350,000
400,000
450,000
500,000
550,000
600,000
650,000
2019 2020 2021 2022 2023
Average HS Value and Count of HS
Prosper Taxable Value Prosper HS Count
Sales Tax
21 % of General Fund Revenue
100% SPD and EDC Revenue
Top 25 46.4%
Top 50 58.8%
Top 100 71.0%
Sales Tax
There are 4700 registered Sales Tax Payors in Prosper
NAICS Category Top Sub-NAICS Categories Share of Total Sales Tax
Retail E-commerce, Department Stores, Building Material Stores 52%
General Services Utilities, Construction, Golf and Recreation 16%
Food Limited and Full Service Restaurants 12%
Manufacturing Concrete and Computer Manufacturing 8%
Professional Services Telecommunications, Information Services 7%
Wholesale Machinery & Equipment, Electrical Goods 5%
Agricultural Nonmetalic Mineral Mining 1%
Sales Tax by Industry