Flower Mound homeowners won't see a tax rate increase on their next bill. The town released its proposed FY 2026-27 budget on Monday, Aug. 3, holding the property tax rate steady at $0.387277 per $100 of assessed valuation, maintaining the 20% homestead exemption (the maximum allowed under Texas law) and preserving a $150,000 additional exemption for residents age 65 or older or those with a qualifying disability.

The rate matches the current fiscal year, a signal of stability for homeowners and commercial property owners as assessed values continue to shift.

Stronger outlook despite constraints

The town said its budget outlook is stronger than originally projected, crediting updated revenue estimates and cost-saving efforts across departments. But officials acknowledged the plan required trade-offs.

The town's official announcement said the budget process required difficult choices to balance available revenue with the services residents depend on, while noting Flower Mound must continue navigating rising costs and state-imposed limits on property tax revenue growth.

Texas law caps how much additional property tax revenue cities can collect year over year without voter approval, forcing municipalities to find savings or cut services even when property values rise.

What's next

The full proposed budget is posted at flowermound.gov/proposedbudget. Residents who want to understand how state revenue caps shape the town's finances can visit flowermound.gov/understandingthebudget.

A Town Council work session is scheduled for Thursday, August 13, at 6 p.m., followed by a regular Town Council meeting on Monday, August 17, at 6 p.m. Mayor Cheryl Moore will preside over both sessions, which offer opportunities for public discussion before the budget is finalized.

The town holds AAA bond ratings from Standard & Poor's and Fitch, the highest achievable, most recently reaffirmed in June 2024.