Prospect council adopts lower property tax rate and approves three budget ordinances

The Prospect City Council on June 15 adopted a new ad valorem property tax rate and approved multiple budget ordinances affecting the current and coming fiscal years.

During the mayor's report, Doug Farnsley outlined the change: "The current real property tax rate is 18.3 cents per $100 of evaluation. The proposed rate for the coming year is 15.1 cents per $100," a reduction of 3.2 cents per $100. Council later voted to adopt the ordinance establishing the rate.

Why it matters: the council said the city finished the prior fiscal year with a $696,000 surplus and maintains strong balances; leaders described the rate reduction as part of managing budgets while funding capital projects.

What the council voted on

-Ordinance 661 (City of Prospect Ordinance number 661 series 2026): second reading and approval. Motion to approve was made and seconded; the council approved the ordinance by recorded vote, 6–0. The ordinance amends the current FY2025–2026 budgets for the general fund, municipal road aid fund, and capital projects fund.

-Ordinance 662 (City of Prospect Ordinance number 662 series 2026): second reading and adoption. Motion by Mr. Holmes, second by Mr. Clark; adopted by recorded vote, 6–0. The ordinance establishes the ad valorem tax rate for FY2026–2027.

-Ordinance 663 (City of Prospect Ordinance number 663 series 2026): second reading and adoption. Motion by Dr. Ferman, second by Mr. Gibson; approved by recorded vote, 6–0. The ordinance sets the general fund and municipal road aid budgets for FY2026–2027.

-Ordinance 664 (City of Prospect Ordinance number 664 series 2026): first reading (capital projects fund budget). The council gave first reading to the capital projects fund budget and approved the first-reading motion (moved by Mr. Clark, seconded by Mr. Holmes) by recorded vote, 6–0; the ordinance establishes the capital projects fund budget for FY2026–2027 and replenishes the fund toward a $500,000 target with specified allocations.

Vote detail and procedure

Recorded roll-call votes were read into the record for each ordinance. Members recorded as voting "yes" on the second readings and adoptions were Dr. Ferman, Mr. Gibson, Mayor Evans, Mr. Holmes, Mr. Clark and Mrs. Leonard; each contested ordinance passed unanimously.

What remains: the capital projects fund ordinance (664) was given a first reading and will return for a second reading before final adoption; the council also discussed scheduling for the July meeting and other administrative items.

Next step: ordinances given second reading are effective following local procedural requirements; items given first reading, including ordinance 664, will return for a second reading and final vote in a subsequent meeting.