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20130813 FY 2013-2014 Proposed Budget PresentationTown of Prosper Proposed Budget August 13, 2013 Presented by: Harlan Jefferson Town Manager Purpose Statement “Prosper is a place where everyone matters.” 3 Property Tax Collections LAST FIVE FISCAL YEARS Year Ended Percent of Current Total Collections as September 30 Levy Collected Percent of Tax Levy 2009 98.66% 99.90% 2010 98.77% 99.70% 2011 99.44% 99.80% 2012 99.11% 99.52% 2013 98.83%* 98.83%* * Collections through March 31, 2013 4 Key Points in 2012 Valuations Certified Total Taxable (before freeze loss) Increased 9.4% Collin County Value $ 1,296,559,776 Denton County Value $ 50,849,504 Total Value $ 1,347,409,280 Existing Taxable Values Increased 1.6 % Increased 2.19% in Collin County Decreased 11.18% in Denton County New Construction of $ 94.6 Million Collin County totaled $ 92.0 Million Denton County totaled $ 2.6 Million 5 Key Points in 2013 Valuations Certified Total Taxable (before freeze loss) Increased 15.6% Collin County Value $ 1,502,899,952 Denton County Value $ 55,001,955 Total Value $ 1,557,901,907 Existing Taxable Values Increased 6.80 % Increased 6.96% in Collin County Increased 1.91% in Denton County New Construction of $ 118.8 Million Collin County totaled $ 115.6 Million Denton County totaled $ 3.2 Million 6 Property Valuation History Source: Collin CAD and Denton CAD Certified Totals 2004-2013 312,600 406,296 569,039 790,120 978,986 1,015,915 1,145,769 1,205,781 1,253,321 1,447,466 242,304 255,321 279,468 315,308 342,977 344,458 333,084 324,387 321,662 351,317 $- $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Thousands Certified Net Assessed Taxable Valuations Uses ARB approved Totals Avg Home Taxable Value 7 Ad Valorem Taxes Source: Collin CAD and Denton CAD Certified Totals 2013 8 Property Tax Rate Comparison Source: Tax Assessor-Collector or Municipal Websites 0.360 0.374 0.377 0.462 0.520 0.553 0.565 0.586 0.610 0.610 0.610 0.643 0.645 0.650 0.665 0.680 0.683 0.728 0.771 0.899 $0.00 $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 $0.70 $0.80 $0.90 $1.00 2011 Tax Rates Rounded to 3 digits if longer 9 Property Tax Rate Comparison Source: Tax Assessor-Collector or Municipal Websites 0.360 0.374 0.377 0.462 0.520 0.552 .570 0.586 0.610 0.615 0.630 0.698 0.645 0.650 0.665 0.680 0.681 0.757 0.771 0.889 $0.00 $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 $0.70 $0.80 $0.90 $1.00 2012 Tax Rates Rounded to 3 digits if longer 10 Property Valuations & Ad Valorem Taxes (Impacts General and I & S Funds) 11 Ad Valorem Tax Distribution 2012 Current and Proposed Rate - $0.52 Debt Service - $0.203086 -Paying $ 2,539,980 in debt from tax revenues -Balance of scheduled payments are related to self-supporting utilities If Current Rate of $0.52 used, M&O - $0.316914 -Generates $ 4,254,802 in General Fund Property Tax If Effective Rate of $0.518321 used, M&O - $0.315235 -Would generate $21,630 less than the Current Rate If Rollback Rate of $0.511076 used, M&O - $0.307990 -Would be $0.544273 except for additional sales tax for property tax relief ($0.033197) -Would generate $115,011 less than the current rate Note: Prosper and Lucas are the only two Collin County municipalities with additional sales tax for property tax relief. 12 Ad Valorem Tax Distribution 2013 Current and Proposed Rate - $0.52 Debt Service - $0.193809 -Paying $ 2,804,880 in debt from tax revenues -Balance of scheduled payments are related to self-supporting utilities If Current Rate of $0.52 used, M&O - $0.326191 -Generates $ 4,721,505 in General Fund property tax If Effective Rate of $0.491217 used, M&O - $0.297408 -Would generate $416,624 less than the current rate If Rollback Rate of $0.463067 used, M&O - $0.269258 -Would be $0.517130 except for additional sales tax for property tax relief ($0.054063) -Would generate $824,086 less than the current rate Note: Prosper and Lucas are the only two Collin County municipalities with additional sales tax for property tax relief. 13 Average Home Owner 2012 Average Homestead Taxable Value = $ 321,662 Tax rate scenarios -Current & Proposed Rate $0.520000 – $1,673 -Effective Rate $0.518321 – $1,667 -Rollback Rate $0.511076 – $1,644 Average Prosper Resident Overall Tax Rate – Collin County Note: Average Taxes are computed using 2011 tax rates for all agencies Excludes possible exemptions with each entity for simplicity. Rate per $100 Valuation Tax Levy Town of Prosper $ 0.520000 $ 1,672.64 Prosper ISD $ 1.670000 $ 5,371.76 Collin County $ 0.240000 $ 771.99 Collin College $ 0.086300 $ 277.59 TOTALS $ 2.516300 $ 8,093.98 14 Average Home Owner 2013 Average Homestead Taxable Value = $ 351,317 Tax rate scenarios -Current & Proposed Rate $0.520000 – $1,827 -Effective Rate $0.491217 – $1,726 -Rollback Rate $0.463067 – $1,627 Average Prosper Resident Overall Tax Rate – Collin County Note: Average Taxes are computed using 2012 tax rates for all agencies Excludes possible exemptions with each entity for simplicity. Rate per $100 Valuation Tax Levy Town of Prosper $ 0.520000 $ 1,827 Prosper ISD $ 1.670000 $ 5,867 Collin County $ 0.240000 $ 843 Collin College $ 0.086299 $ 303 TOTALS $ 2.516299 $ 8,840 Thank You! Questions?