Windsong Ranch Annexation

Tax Rate & Assessed Value Comparison Analysis

Prepared December 2025 | 2025-26 Tax Year Rates
Executive Summary
Annual Tax Difference
$83
Per average home/year
Monthly Difference
$6.92
Per average home/month
Total Rate Difference
$0.0072
Per $100 valuation
Key Finding

The tax rate difference between Prosper ISD and Denton ISD has narrowed to just 0.72 cents per $100 of assessed value. For the average Windsong Ranch home, this translates to approximately $83 per year — less than $7 per month — to align tax dollars with where students actually attend school.

2025-26 Tax Rate Comparison
Component Prosper ISD Denton ISD Difference Notes
M&O Rate (Maintenance & Operations) $0.7141 $0.7269 -$0.0128 PISD is lower
    Tier 1 (MCR - Compressed) $0.5758 TEA mandated
    Tier 2 (Golden + Copper) $0.1383 Voter approved
I&S Rate (Interest & Sinking/Debt) $0.5000 $0.4800 +$0.0200 Bond obligations
TOTAL TAX RATE $1.2141 $1.2069 +$0.0072 0.6% higher
Future Tax Rate Outlook

With continued state-mandated tax rate compression, it is likely that Denton ISD will become more expensive compared to Prosper ISD over time. PISD's lower M&O rate ($0.7141 vs $0.7269) positions Prosper taxpayers favorably as compression continues. The current $0.0072 difference may shrink further or even reverse in future years.

Assessed Value Comparison: PISD Overview vs. Our Model
Metric PISD Overview Our Model Variance
Total Taxable Value (TV) $474,676,531 $537,675,424 +$62,998,893
Number of Homes 349 (420 build-out) 466 +117 homes
Number of Students 299 274 -25 students
Registered Voters 690 684 -6 voters
Average Home Value $1,360,105 $1,153,596 -$206,509
Note on Data Sources

PISD Overview uses 349 homes (current) with 420 at build-out. Our model's 466 figure from Denton CAD includes green lots/common areas that will not have homes built on them. The actual build-out of 420 homes aligns with PISD's analysis. Both datasets support the same conclusion: minimal tax impact for homeowners.

Homeowner Tax Impact Analysis

Using PISD Average ($1,360,105)

Component DISD Tax PISD Tax
M&O $9,886 $9,712
I&S $6,528 $6,801
Total $16,414 $16,512
Annual Difference: +$98/year

Using Our Model Average ($1,153,596)

Component DISD Tax PISD Tax
M&O $8,386 $8,238
I&S $5,537 $5,768
Total $13,923 $14,006
Annual Difference: +$83/year
Understanding State vs. Local Revenue (274 Students)
Funding Source Per Student 274 Students Status
State Funding (FSP, Basic Allotment, etc.) $6,136 $1,681,264 Already Received
Total Education Cost $13,012 $3,565,288 PISD Expense
NEW Local Tax Revenue (from Annexation) $6,527,891 Currently Goes to DISD

Source: PISD 2025-2026 Adopted Budget — State Revenue $201,465,591 ÷ 32,832 ADA = $6,136/student; Total Expenditures $427,215,623 ÷ 32,832 ADA = $13,012/student

Key Insight: The $6.5M is NEW Local Revenue

PISD already receives ~$1.68M in state funding for the 274 Windsong students (they're already in ADA). What PISD does NOT receive is the $6.5M in local property tax revenue — that currently goes to Denton ISD, which educates zero of these students. Annexation simply redirects local tax dollars to follow the students.

Revenue Impact Comparison (Using 2025-26 Tax Rates)
Revenue Component PISD Overview
($474.7M TV)
Our Model
($537.7M TV)
Variance
M&O Revenue (@ $0.7141) $3,389,286 $3,839,514 +$450,228
I&S Revenue (@ $0.5000) $2,373,383 $2,688,377 +$314,994
Total Revenue $5,762,669 $6,527,891 +$765,222
Less: Additional Recapture* −$68,559 −$310,000 −$241,441
Less: Denton Debt Share** −$2,646,000 −$2,490,000 +$156,000

* Copper Penny recapture per TEA formula. PISD is not currently in Tier 1 (MCR) recapture.
** Denton debt share fixed at annexation per TEC § 13.004

Note on Revenue Variance

Our model uses a higher total assessed value ($537.7M vs $474.7M) because the Denton CAD data includes all platted lots. The actual build-out is 420 homes, which aligns with PISD's analysis. The higher TV in our model produces proportionally higher calculated revenue.

Bottom Line
For Less Than $7/Month, Homeowners Get:
PISD M&O Rate
$0.7141
Lower than Denton ISD
Total Rate Difference
0.6%
Essentially equal
Daily Cost
$0.23
Per household

Data Sources:

• Prosper ISD 2025-26 Tax Rates: PISD Board Approved Budget (M&O $0.7141, I&S $0.5000, Total $1.2141)

• Denton ISD 2025-26 Tax Rates: DISD Post-VATRE Election (M&O $0.7269, I&S $0.4800, Total $1.2069)

• Property Values: Denton CAD 2024 Certified Values ($537,675,424); PISD Annexation Overview ($474,676,531)

• Student/Home Counts: Windsong Ranch HOA; PISD Transfer Records

• State Funding Per Student: PISD 2025-2026 Adopted Budget — $201,465,591 (State Sources) ÷ 32,832 (ADA) = $6,136/student

• Education Cost Per Student: PISD 2025-2026 Adopted Budget — $427,215,623 (Total Expenditures) ÷ 32,832 (ADA) = $13,012/student

$6.5M Revenue Calculation: $537,675,424 (Total Assessed Value) × $1.2141 (PISD 2025-26 Total Rate) ÷ 100 = $6,527,891

Prepared by: Douglas Charles & Jeff Sterling | Contact: dbcharles@me.com

Website: https://prosperisdpetition.com