Financial Impact Analysis with TEA Funding Formula
| Component | Rate | Without Annexation | With Annexation | Difference | Recapture? |
|---|
| Year | Enrollment | Gross M&O (No) | Gross M&O (Yes) | Recapture (No) | Recapture (Yes) | Add'l I&S | DISD Debt | Net Benefit | Cumulative |
|---|
| Component | Formula | Description |
|---|---|---|
| Tier 1 (MCR Compressed) | $0.5758 per $100 | Maximum Compressed Rate set by TEA for 2025-26. Funds Tier One (basic allotment). |
| Tier 2 (Golden + Copper) | $0.1383 (13.83¢) | Voter-approved enrichment pennies. Partially protected from recapture. |
| Total M&O Rate | $0.5758 + $0.1383 = $0.7141 | Total Maintenance & Operations rate for 2025-26. |
| I&S Rate | $0.5000 per $100 | Debt service fund. Not subject to recapture. |
| Component | Formula |
|---|---|
| Total Additional Revenue | Additional Gross M&O + Additional I&S = $3.84M + $2.69M = $6.53M |
| Less: Additional Recapture | Recapture(with) - Recapture(without) = ~$310K |
| Less: Denton Debt Share | $174.07M × ($537.7M ÷ $37.52B) = $2.49M |
| Year 1 Net Benefit | $6.53M - $0.31M - $2.49M = $3.73M |
| Data Element | Value | Source |
|---|---|---|
| TEA Foundation School Program Data (2025-26) | ||
| District Property Value | $22,589,151,510 | TEA Summary of Finances, Run ID: 46163 |
| Refined ADA / WADA | 29,945.977 / 41,495.926 | TEA ADA/WADA Detail Reports |
| Actual Recapture | $1,235,593 | TEA Cost of Recapture Report |
| Windsong Ranch Annexation Data | ||
| Property Value | $537,675,424 | Denton CAD 2024 Certified Values |
| Homes / Students | 466 / 274 | Windsong Ranch HOA / PISD Transfer Records |
| Denton ISD Debt Data | ||
| Annual Debt Service | $174,065,801 | Denton ISD 2025-26 Adopted Budget |
| Total Assessed Value | $37,518,859,667 | Denton CAD 2025 Certified Totals (Net Taxable) |
| Assumption | Rationale | Sensitivity |
|---|---|---|
| Students Already Counted | 274 Windsong students are in PISD ADA/WADA as transfers | HIGH |
| Tax Rates Constant | M&O $0.7141, I&S $0.5000 (2025-26) | MEDIUM |
| Property Growth 5%/yr | Conservative vs historical 8.2% CAGR | HIGH |
| Enrollment Cap 55,000 | PISD Long-Range Facility Plan | MEDIUM |
| Denton Debt per TEC § 13.004 | Proportionate share based on property value | LOW |
| Term | Definition |
|---|---|
| WADA | Weighted Average Daily Attendance - ADA adjusted for special populations |
| MCR | Maximum Compressed Rate - Compressed M&O rate set by TEA ($0.5758 for 2025-26) |
| Golden Pennies | First 8¢ above MCR, protected from recapture |
| Copper Pennies | Tax rate above golden, subject to recapture |
| Recapture | "Robin Hood" - payment from property-wealthy districts to state |
| I&S | Interest & Sinking - tax for bond debt service, not subject to recapture |
Prosper ISD Windsong Ranch Annexation Financial Model v7
Prepared for financial planning purposes only. Not an official TEA document.
Model last updated: December 2025 | Tax Rates: 2025-26 | Denton CAD: 2025 Certified
For questions or corrections, contact Doug Charles