Prosper residents will see a flat town property tax rate in the coming fiscal year as Prosper continues adapting to growing demands.

At their Sept. 16 meeting, Prosper Town Council members adopted the proposed FY 2025-26 budget and set the property tax rate of $0.505 per $100 valuation, which is the same as the current rate.

What you need to know

Although council members approved a flat rate, some Prosper residents may still see higher tax bills due to rising property values.

Additionally, Town Council also adjusted how the rate is allocated, slightly reducing the capital dedicated portion of the property tax rate while increasing the general fund and debt service portion, keeping the overall rate the same.
Chris Landrum, Prosper’s finance director, said town staff monitors sensitive revenue sources, such as sales tax and development fees, on a monthly basis to ensure the town can adjust if revenues shift.


According to town documents, sales tax revenue is still growing and is projected to increase by 7.3% in 2026.

“[The growth] may not be as robust as it has been in recent years, but we continue to grow,” Landrum said.

Previously, Landrum said while staff anticipated slower growth in sales tax revenue, the change happened earlier than initially anticipated.
Zooming in

The budget includes funding for 23 new full-time positions, but 20 will receive funding Feb. 1 instead of Oct. 1 to help balance the town’s health insurance fund.


According to town documents, the new positions include:
  • Six police positions, including four new officers
  • Nine firefighters and paramedics to staff the new Fire Station 4
  • Three public works positions
  • Two parks technicians
  • One fiscal services specialist
  • One traffic signal technician
  • One library circulation supervisor
However, three of the new positions included for public works will still receive funding starting Oct. 1, Landrum said.

Town Manager Mario Canizares said there is some uncertainty with the health insurance fund, as the stop loss plan is still out for bids, but staff are prepared to make adjustments while staying within the town’s fiscal requirements.

According to town documents, preliminary claims for FY 2024-25 increased by just over 43% from the original projected claims.

“Our biggest challenge this year quite honestly has been the health [insurance] fund,” Canizares said. “We’ve had huge claims this current year that we’re working through. ... That’s just part of doing business as a growing community.”


One more thing

Council also approved $39.4 million in proposed government capital projects, which includes:
  • $26 million in streets projects
  • $7.1 million in parks projects
  • $6.3 million in facility projects
Looking ahead

The new budget and property tax rate take effect Oct. 1.