Page 10 - CityofGrandPrairieFY25Adopted Budget

Adopted budget highlights include:

• Total revenues of $539M (operating funds). Total expenditures of $540M
(operating funds).
• Maintain current property tax rate of $0.66 per $100 of assessed value
• For residential property taxpayers, includes a 2.5% homestead exemption
increase from 15% to 17.5%
• 2% merit increase for city civilian and civil service employees
• 7.5% planned increase in water and wastewater rates
• 7.5% planned increase in solid waste rates
Property Tax Rate

The adopted property tax rate for FY 2025 is $0.660000 per $100 valuation, maintaining
the same rate as last year. Existing property values grew 4.4% from $20.6 billion to $21.5
billion. New property values grew 32% from $537 million to $709 million. This new
property will generate $4.6 million in additional property tax revenues for FY 2025. In
March 2024, the City Council approved increasing the homestead exemption from 15%
to 17.5%. Over the next few years, the council will aim to move to the 20% maximum. An
owner of an average taxable value home will pay $143 per month in city property taxes
for next year.

Sales Tax Revenues

Sales tax continues to be a significant revenue source. Sales tax revenues help reduce
the property tax burden and save the average homeowner $176 on their monthly city tax
bill. Overall sales taxes will generate $97 million in revenues. The city collects 2% of sales
taxes allocated as follows: 1% General Fund, ¼% Park Venue Fund, ¼% Community
Policing Fund, ¼% Street Maintenance, and ¼% Epic & Epic Waters Fund.

In FY 2023, the council adopted a financial management policy that limited the General
Fund’s sales tax reliance to 26% of the total budget. Revenues over this amount will be
used to cash fund council-approved projects.

For FY 2025, a slowdown in sales tax growth is predicted, with a projected growth rate of
approximately 1.4%.

Utility Funds
Grand Prairie operates water, wastewater, and stormwater systems that serve over
50,000 customers. This budget includes the planned rate increases for retail water and
wastewater services of 7.5% for FY 2025. The increase is necessary because of a 10%
increase in water purchase costs, a 5% increase in wastewater treatment expenses, and
the continued expansion of the city’s utility system. The Solid Waste Fund reflects an
overall increase of 7.5% to residential customers and a 7.5% increase to industrial and
commercial customers.

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