What you need to know
At their Aug. 12 meeting, Prosper Town Council discussed the preliminary FY 2025-26 budget and voted to cap the property tax rate at the previous fiscal year’s rate.
“This is a not to exceed rate, so under no circumstances will the council consider a tax rate that’s above the $0.505,” Prosper Finance Director Chris Landrum said.
Landrum said while the town is not raising property tax rates, residents may still see some changes at the school district and county level.
Town Manager Mario Canizares said the FY 2025-26 budget focuses on supporting Prosper’s employees, maintaining service levels and addressing the costs of a growing town.
Canizares said rising utility expenses, water and wastewater infrastructure needs and tighter municipal budget limits from state legislation have guided the town to review fees and service costs more closely.
“We’re continuing to grow, [and] you’re seeing some of the cost pressures that we’re having with just providing utilities for not only our residents but also new growth with water and wastewater infrastructure,” Canizares said. “[We have to] make sure that we can maintain a balanced budget and maintain the high levels of service that not only the council expects, but our residents expect.”
Landrum said the potential increases in water and wastewater rates could affect residents’ utility bills.
Zooming in
Prosper officials initially projected a 5% growth in sales tax revenue, but updated figures now show a 7.2% increase—about $1 million—which Landrum said is smaller compared to previous years.
Previously, Landrum said the smaller increase is due to some sales taxpayers moving out of town faster than expected.
Deputy Mayor Pro Tem Chris Kern said residents need more context for the town’s sales tax figures, particularly as the budget process continues and new projects in town come online.
“It’s $1 million in revenue, which is not insignificant,” Kern said. “But also when you look at all these other projects and things that we’re doing, it’s not as significant as we maybe want it to be.”
Looking ahead
Prosper officials still have several steps ahead of the September budget adoption, including:
- Aug. 28: budget town hall
- Aug. 29: tax rate notice
- Sept. 16: council vote on budget, public hearing on tax rate and budget
