Prosper Town Council has taken a significant step towards enhancing its economic development strategy by considering adjustments to impact fees during their recent meeting on August 12, 2025. The council is poised to adopt the maximum allowable impact fees for water, wastewater, and roadways, following a unanimous recommendation from the Capital Improvements Advisory Committee.

The proposed changes come as part of a broader effort to align Prosper's fees with those of peer cities, which could potentially boost the town's infrastructure funding. Currently, impact fees in Prosper stand at $1,000 for service area one and $950 for service area two. The council discussed the implications of setting these fees at the maximum allowable rates, which would provide a more robust financial foundation for future capital projects.

During the meeting, the council also opened a public hearing to gather community input on the proposed fee adjustments. The Dallas Builders Association submitted recommendations advocating for a phased approach, suggesting that the council consider implementing 50% of the maximum fees over two years. However, the council members expressed a strong inclination to follow the advisory committee's recommendation, emphasizing the importance of maintaining competitive rates to attract development.

A new state law set to take effect on September 1 adds a layer of complexity to the decision-making process. If the council decides to set a collection rate, it will establish a ceiling that cannot be raised for three years, prompting discussions about the potential need for future updates to the fee structure.

The council's discussions highlighted the flexibility within the new regulations, allowing for potential waivers or sliding scales for specific developments. This approach aims to incentivize certain types of growth while ensuring that the town remains financially viable.

As the council prepares to finalize its decision, the implications of these adjustments are clear: adopting the maximum impact fees could significantly enhance Prosper's capacity to fund essential infrastructure projects, ultimately benefiting the community as it continues to grow. The council plans to revisit this topic in their next meeting, aiming for a resolution before the new law takes effect.