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Prosper Council adopts $125 million FY2025–26 budget, raises property tax rate to 50.5 cents
Summary
The Prosper Town Council on Sept. 16 adopted a $125 million budget for fiscal year 2025–26 and approved a property tax rate of $0.505 per $100 valuation, a 4.7% increase. Council also approved related motions on the capital plan and ratified the budget.
The Prosper Town Council on Sept. 16 adopted the town's fiscal year 2025'26 budget and approved a property tax rate of $0.505 per $100 of taxable value, a 4.7% increase over the prior rate.
The adopted budget totals "just shy of $125,000,000," with about $68 million drawn from the general fund, the staff presentation said. Council voted to delay funding for certain new positions until Feb. 1 to help address higher-than-expected health insurance costs and to preserve fund balance targets.
The budget'presentation tied spending to the council's strategic priorities and listed mitigation steps staff would use if elastic revenue sources such as sales taxes and development fees declined. The presentation also noted $39.4 million in proposed capital projects, $26 million of which is for streets, $7.1 million for parks and $6.3 million for facilities.
"We do live via sales tax," the budget presenter said, noting sales tax is among the revenue streams most sensitive to economic swings. The presentation said the town used conservative sales-tax projections and is monitoring receipts monthly.
Council members discussed the health-insurance stop-loss bidding and agreed to delay some hires to cover higher premium estimates. Town staff said the proposals remain within the council's fiscal policies, including a 21% general-fund reserve target.
The council voted unanimously to adopt the budget, approve the tax rate and ratify the tax increase.
Votes at a glance
- Adopt FY2025'26 annual operating, capital and five-year CIP: Passed unanimously (7-0). - Adopt property tax rate of $0.505 per $100 (voter-approval rate): Passed unanimously (7-0). - Ratify property tax increase and budget: Passed unanimously (7-0).
Why it matters: The adopted budget funds new public-safety staffing, opens Fire Station 4, funds continued ERP implementation and programs for parks and drainage while increasing the town's debt service to support infrastructure pay-go and bond-authorized projects.
What comes next: With council approval, staff will implement the FY2025'26 budget and proceed with capital project planning. The town manager and finance staff said they will continue to monitor revenues and may return to council with adjustments if market or insurance outcomes differ materially from current estimates.
Public comments: No members of the public signed up to speak during the advertised public hearings on the budget and tax rate.
