As Prosper heads into its fiscal year 2026-27 budget cycle, town officials are reviewing early financial projections and discussing the property tax rate.
Prosper Finance Director Chris Landrum presented a preliminary budget outlook to Town Council members at a Feb. 24 work session. Landrum said all information is tentative as numbers will likely change once the town receives updated property valuation and sales tax estimates.
“What you’re seeing today is really the beginning,” Town Manager Mario Canizares said. “We’ve got some work to do.”
Zooming in
Landrum said Prosper’s population is projected to grow by about 7% annually through 2029. After that, officials anticipate a slower growth rate as the number of single-family residential permits declines.
In 2025, 623 single-family permits were issued, which is a roughly 17% reduction from 2024, according to data from the Prosper Economic Development Corp.
Landrum said town officials expect new property growth to increase once development along the Dallas North Tollway starts to take off.
“On the new property, we are seeing that slow,” Landrum said. “A lull is what we’re expecting.”
Although overall property valuation growth is beginning to slow down compared to recent years, Landrum said the town is still experiencing strong growth.
“That is still great growth,” Landrum said. “It’s just not as good as it was in the last couple years.”
What it means
Landrum said town officials are currently projecting a flat property tax rate of $0.505 per $100 valuation.
However, the tax rate allocations are planned to be adjusted to reduce debt service rate, and increase the general fund and capital dedicated rates, according to town documents.
Looking ahead
Landrum said town officials expect to receive updated property value estimates from the county appraisal district in April, which will help guide ongoing budget discussions and planning.
Dates to know
