08.26.25 Town Hall Budget PresentationTown of Prosper
Annual Budget
Town Council Strategic Visioning Priorities
ACCELERATION OF INFRASTRUCTURE
•Work with the Capital improvement Subcommittee to identify gaps in the Town’s infrastructure and ensure that it
meets the demands of a growing community
•Utilize all available financial methods (Bonds, Certificates of Obligation, Capital Dedicated Fund, Grants, etc.) to fund
projects.
•Work with the Capital Improvement Subcommittee to plan for a future bond program and/or pay-as-you-go program.
DEVELOPMENT OF DOWNTOWN PROSPER AS A DESTINATION
•Collaborate with the Downtown Business Alliance, Community Engagement Committee, Downtown Committee, and
Prosper EDC to implement the Downtown Master Plan.
•Pursue a mix of public and private developments as catalysts for office, retail, restaurants, entertainment, housing, and
outdoor events.
ENSURE THE TOWN’S COMMERCIAL CORRIDORS ARE READY FOR DEVELOPMENT
•Ensure US 380 and Dallas North Tollway are primed and ready for development.
•Develop long-term strategies for land use, landscaping, lighting, and traffic.
•Leverage partnerships with TxDOT, NTTA and private development.
CONTINUE TO PROVIDE EXCELLENT MUNICIPAL SERVICES
•Strive to be a high-performing organization focused on continuous improvement, best practices, and benchmarking.
•Develop a culture of excellence and provide the financial resources necessary to support these goals.
•Provide a welcoming and respectful environment for residents, visitors, and Town employees.
WORK TOWARDS A GROWING AND DIVERSIFIED TAX BASE
•Collaborate with Prosper EDC and be adaptable to changing market conditions.
•Place an emphasis on corporate, medical, and life-sciences sectors.
•Utilize metrics to create resiliency strategies against market changes.
Budget Timeline
February 28, 2025 Multi-Year Budget Projections
Spring/Summer 2025 Sub-Committee Meetings on Capital Project
Prioritization, Debt Issuance, Market Adjustments
June 24, 2025 Budget Workshop at Council Work Session
July 25, 2025 Certified Rolls
August 12, 2025 Presentation of Preliminary Budget,
Passage of all items needed to begin
Budget Adoption Process.
Budget Timeline
Before August 22, 2025 Sub-Committee Meetings per Council Direction
August 28, 2025 Budget Town Hall Meeting
September 16, 2025 Budget Public Hearing, Final Changes (if any)
and Adoption; Tax Rate Public Hearing and
Adoption; Tax Increase Ratification
Budget in Brief
Total FY 2025-2026 Proposed Budget Operating Appropriations $124,569,796
including:
•$68,131,354 for General Fund operations and maintenance,
•$3,427,736 for the Crime Control and Prevention Special Purpose District,
•$3,460,919 for the Fire Control, and Emergency Medical Services Special
Purpose District,
•$49,549,787 for the Town’s Enterprise Funds including Solid Waste, Water, and
Sewer utilities as well as the Storm Drainage Utility Fund.
General Debt Service Appropriations for the coming fiscal year are $19,264,147.
Governmental Capital Projects added for the year total $59.6 million.
Key General Fund Revenue Drivers
For FY 2025-2026, General Fund revenues are expected to total $68,322,095
which is an increase of 29.6% over the previous year’s amended budget. This
large increase in additional revenue is driven mostly from the transfer in of the
Special Purpose Districts to pay for Public Safety personnel that are now located in
the General Fund. Other increases come from property tax, sales tax, and
franchise fees.
The Proposed Budget reflects 7.2% growth from FY 2024-2025 year-end projected
sales tax receipts. This is the seventh year for the Special Purpose Districts that
receive sales tax that had been previously reported in the General Fund. The
General Fund is projecting sales tax revenue of $13,199,055 for FY 2025-2026.
Fee Increases
Proposed Fee Increases Include:
•PILOT Revenue from 2% to 4% of gross water receipts - $833,000
•Development Fees - $1,400,000
•Building Inspections
•Multi-Family Registrations
•Health Permits
•Engineering Fees - $364,130
•Inspections
•Plan Review
•Land Disturbance
•Flood Study
General Fund Staffing
Department Title Start Date FTE Recurring One-time
Grant
Revenue Year 2
Finance Fiscal Services Specialist 10/1/2025 1 82,502 970 - 84,859
Police Crime Analyst 10/1/2025 1 107,127 4,162 111,289 109,766
Police Auto Theft Prevention Coordinator 10/1/2025 1 166,017 73,716 239,733 170,628
Police Police Officers 10/1/2025 4 623,570 388,584 - 667,304
Fire Firefighter/Paramedic 10/1/2025 9 1,376,339 87,406 -1,461,156
Public Works Traffic Signal Technician 10/1/2025 1 99,672 3,635 - 102,486
Parks Irrigation Technician 10/1/2025 1 74,505 73,000 - 76,740
Parks Chemical Technician 10/1/2025 1 72,878 23,000 - 75,064
Library Circulation Supervisor 10/1/2025 1 74,675 3,230 - 76,142
Total General Fund 20 2,677,285 657,703 351,022 2,824,145
Other Funds Staffing
Water/Wastewater Fund
Department Title Start Date FTE Recurring One-time
Grant
Revenue Year 2
Public Works Water System Technician/SCADA 10/1/2025 1 115,254 51,844 - 117,833
Public Works Utility Compliance Superintendent 10/1/2025 1 136,116 56,669 - 139,879
Total Water/Wastewater Fund 2 251,370 108,513 - 257,712
Stormwater Drainage Fund
Department Title Start Date FTE Recurring One-time
Grant
Revenue Year 2
Public Works Heavy Equipment Operator 10/1/2025 1 92,797 - - 96,181
Total Stormwater Drainage Fund 1 92,797 - - 96,181
Fund Recurring
General Fund - Police-Sworn 244,996
General Fund - Fire-Sworn 286,142
General Fund 174,683
Water/Wastewater 137,146
Stormwater Drainage 19,437
Total Market Study 862,403
Market Study
•Public Safety Market Methodology
•Increase to competitive market average
•Non-Public Safety Market Methodology
•Increase to minimum market average
•Adjust for salary compression within departments based on tenure in current
position
•Staff has budgeted for a 24% increase to the Town’s premiums
and will ask employees to pick up a 5 to 10% increase
depending on their chosen plan.
•Currently out to bid for health care plan.
Health Fund
Major General Fund Enhancements
Administration:
Comprehensive Compensation and Benefits Funding -
$706,000
ERP System Maintenance - $309,408
Fiscal Services Specialist - $83,472
Risk Management Consultant - $25,000
Police:
4 Police Officers - $1,012,154
Vehicle Expense Funding - $171,949
MVCPA Task Force Grant - $261,910
MVCPA Catalytic Converter Grant - $61,966
Fire:
Fire Station #4 Minimum Staffing - $1,463,745
Vehicle Maintenance - $75,000
Development Services:
Animal Services Contract Increase - $189,400
Streets and Facility Maintenance:
Traffic Signal Technician - $103,307
Community Services:
Irrigation Technician - $103,307
Raymond Park Water - $370,000
Chemical Technician - $95,878
Circulation Supervisor - $77,905
Debt Service Fund
•Add Series 2025 authorized by Council - $43.5 Million in new and refunding
•$192.8 million available for 2025 Bond Election for 8.5 years
•Increases I&S Rate from 0.180392 to 0.182946
•36% I&S percentage of total Tax Rate (below 40%)
•Outstanding Total Debt of $268,592,135 at end of FY25-26
•2.12% Outstanding Total Debt as a percentage of TAV (below 4%)
•$4,425 Outstanding Total Debt per Capita
Debt Service Fund
Governmental Capital Projects
•$59.6 million Total in Projects
•$43.4 million in Streets Projects
•$9.1 million in Parks Projects
•$7 million in Facility Projects
Multi-Year Capital Program/Debt Issuance
Recently Approved Bonds Series 2025
Street and Transportation Projects ($57,514,905 Authorization Remaining of $150,000,000)
•First Street (DNT – Coleman): (Construction) $9,000,000
•Coit Road (First – Frontier) – 4 lanes: (Construction) $8,200,000
•Coleman (Prosper Trail – Talon) 2 SB Lanes (Land/Esmt) $1,500,000
•Legacy (First – Prosper Trail) 2 SB Lanes (Land/Esmt) $550,000
•Legacy (First – Prosper Trail) 2 SB Lanes (Construction) $200,000
TOTAL $19,450,000
Multi-Year Capital Program/Capital Dedicated
Transfer to GF Construction Personnel
•Transfer to GF Construction Personnel $1,479,216
Street
•Frontier Parkway/DNT(West Side Intersection) $1,000,000
Unprogrammed $2,427,632
TOTAL $10,503,910
Facilities
•Town Hall Open Space $200,000
•Parks and Public Works Facility, Phase 1 $5,397,062
Pay -as-you-go Funding
Historical Property Valuation
Fiscal Year
Valuation
Excluding Freeze Growth New Property
Growth
from New
Property
Reappraisal
Growth
Growth from
Reappraisal
2020-2021 4,601,196,301 9.3%360,557,369 8.5%31,571,433 0.8%
2021-2022 5,437,210,564 18.2%469,526,490 10.2%366,487,773 8.0%
2022-2023 6,616,007,870 21.7%596,431,779 11.0%582,365,527 10.7%
2023-2024 8,335,296,679 26.0%876,474,004 13.3%842,814,805 12.7%
2024-2025 9,622,101,595 15.4%870,499,826 10.5%416,305,090 4.9%
2025-2026 10,806,491,907 12.3%758,780,238 7.9%425,610,074 4.4%
No-New-Revenue Tax Rate
•The “No-New-Revenue" rate is the highest property tax
rate a local government can adopt that generates the
same amount of revenue as the previous year, despite
changes in property values.
•The calculation excludes impact from new property
and property in a TIRZ.
•Compares like property year over year.
Voter-Approval Tax Rate
•The “voter approval” rate is the maximum property tax rate
increase, 3.5% on M&O plus calculated I&S Rate, that local
taxing units can implement without voter approval.
•Mandated to adopt the calculated I&S rate.
Property Tax Rate Comparison
2025-2026 2024-2025
No-New-Revenue Tax Rate $0.482348 $0.466941
Voter -Approval Tax Rate $0.505000 $0.522075
Debt Rate (I&S Rate)$0.182946 $0.180392
Adopted Rate -$0.505
Proposed Rate $0.505 -
Historical Property Tax Rate
Tax Rate 2021-
2022
2022-
2023
2023-
2024
2024-
2025
2025-
2026
FY25 to
FY26
Change
General
Fund
0.328000 0.221830 0.230742 0.224608 0.224854 0.000246
Capital
Dedicated
-0.108000 0.102000 0.100000 0.097200 (0.002800)
Debt Service 0.182000 0.180170 0.177258 0.180392 0.182946 0.002554
Total 0.510000 0.510000 0.510000 0.505000 0.505000 -
Benchmarking Proposed Fiscal Year 2025-2026 Tax Rates
Entity Homestead
Exemption
Rate
General
Fund
Capital
Dedicated
I&S Total Tax Rate Equivalent Tax
Rate for
Homestead
Freeze
Anna 5.00%0.356071 -0.169002 0.525073 0.498819 No
Celina None 0.264928 -0.311473 0.576401 0.576401 Yes
Coppell 5.00%0.376998 -0.067978 0.444976 0.422727 No
Flower Mound 20.00%0.323876 -0.063402 0.387278 0.309822 No
Frisco 20.00%0.292775 -0.132742 0.425517 0.340414 Yes
Keller 20.00%0.245020 -0.041980 0.287000 0.229600 Yes
Little Elm None 0.446653 -0.103247 0.549900 0.549900 Yes
McKinney None 0.276012 -0.136272 0.412284 0.412284 No
Southlake 20%0.24000 -0.055000 0.295000 0.236000 Yes
Average of Comparison 10.00%0.313593 -0.120122 0.433714 0.397330 -
Prosper (FY2024-2025)17.50%0.224608 0.100000 0.180392 0.505000 0.416625 Yes
Prosper (FY2025-2026)17.50%0.224854 0.097200 0.182946 0.505000 0.416625 Yes
Prosper
ISD
62%
Town of
Prosper
26%
Collin
County
8%
Collin
College
4%
Prosper
ISD
64%
Town of
Prosper
26%
Denton
County
10%
FY2025-2026 Total Tax Rate
Entity
FY2025-2026
Proposed Tax Rate
Prosper ISD 1.2141
Town of Prosper 0.505
Collin County 0.149343
Collin College 0.08122
TOTAL 1.949663
Entity
FY2025-2026
Proposed Tax Rate
Prosper ISD 1.2141
Town of Prosper 0.505
Denton County 0.185938
TOTAL 1.905038
Entity
FY2025-2026
Proposed Tax Rate
Denton ISD 1.1592
Town of Prosper 0.505
Denton County 0.185938
TOTAL 1.850138
Denton
ISD
63%
Town of
Prosper
27%
Denton
County
10%
Local Sales Tax (2¢)
Year
General
Fund
(1¢)
TIRZ
Funds
Crime SPD
(0.25 ¢)
Fire SPD
(0.25 ¢)
Prosper
EDC(0.5¢)
2020 5,852,590 510,086 1,616,291 1,613,198 3,181,338
2021 8,212,231 656,516 2,192,022 2,183,482 4,434,373
2022 9,464,641 854,284 2,548,594 2,545,621 5,159,463
2023 10,160,615 916,361 2,745,763 2,748,026 5,538,488
2024 11,053,794 1,226,439 3,018,090 3,015,318 6,140,116
2025R 12,099,065 1,295,986 3,203,844 3,236,018 6,697,526
2026P 12,983,112 1,388,965 3,426,536 3,460,319 7,186,039
Year General Fund
(1¢)
General Fund
Sales Tax Growth
2020 5,852,590 12.0%
2021 8,212,231 40.3%
2022 9,464,641 15.3%
2023 10,160,615 7.4%
2024 11,053,794 8.8%
2025R 12,099,065 9.5%
2026P 12,983,112 7.3%
General Fund Sales Tax
Water and Wastewater Rates
Utility Fund-Distribution and Collection Utility
•Potable Water Supplier proposing over 14.9% increase in rates
•Wastewater treatment supplier requires significant capital
investment for new treatment plant
•Rate Consultant projecting need for multiple year rate
increases including a blended 8.8% next year (6.26% water
and 15.08% wastewater)
Wholesale Expenses
Source: NewGen Strategies and Solutions, LLC
Proposed Rate Increase
Source: NewGen Strategies and Solutions, LLC
Rate Comparison
Other Funds
Solid Waste Fund
•Created in 2023, the fund is self-supporting through rates.
Stormwater Drainage
•Proposed rate increase of $1 across all rate categories. Proposed
rates are:
•Residential Tier 1 $4.00
•Residential Tier 2 $6.15
•Commercial $2 per 1,000 sqft. of impervious surface
•Last rate increase was in 2018.
CIP Funds
•Subject to change with CIP Subcommittee meeting
Questions
Thank you for attending!
Summary of Recommended Questions
Referendum Question 1-Streets $92,800,000 for the purpose of designing, constructing, reconstructing, improving,
extending, expanding, upgrading and developing streets, roads, sidewalks, thoroughfares and related improvements
in the Town.
Referendum Question 2-Police $29,000,000 for the purpose of constructing, installing, acquiring and equipping
additions, extensions, renovations and improvements to the police headquarters.
Referendum Question 3-Library $34,200,000 for the purpose of constructing and equipping a new library facility
separate from Town Hall.
Referendum Question 4-Parks and Recreation $24,000,000 for the purpose of enhancing current Parks and
Recreation offerings by designing, constructing, improving, equipping of parks, trails, bridges and sports fields and
courts and other recreational facilities
Referendum Question 5-Public Works/Parks Service Center $10,000,000 for the purpose of designing, constructing
and equipping a permanent public works and parks service center at the current service center location
Referendum Question 6-Downtown Improvement $2,300,000 for the purpose of repairing, preserving and
improving the three historic silos located west of the railroad tracks and to the southwest of the end of Broadway
Street