Flower Mound homeowners will pay the same property tax rate for a third straight year under the town's new budget, which took effect Thursday, Oct. 1.
The fiscal year 2026-27 spending plan keeps the rate at $0.387277 per $100 of assessed value. For a home at the town's average taxable value of $473,692, that works out to $152.88 a month in town taxes, according to a town news flash posted the same day.
The town broke that monthly bill down by service: $54 for fire and emergency services, $50.10 for police, $22.49 for parks and recreation, $10.54 for development and environmental services, $10.20 for public works and $5.55 for the library.
Fire and police alone account for more than two-thirds of the average homeowner's town tax payment.
What's behind the flat rate
Three fiscal pressures shaped the budget, the town said: state-imposed caps on property tax revenue growth under Senate Bill 2, passed in 2019; persistent inflation; and a 7% drop in sales tax revenue. The sales tax decline traces largely to HD Supply, a Home Depot subsidiary, routing sales through a call center in New Braunfels instead of Flower Mound, as first reported by the North Texas Sun.
The total spending plan across all funds comes to roughly $474 million, according to FlomoBee. The general fund alone projects $98 million in revenue against $99 million in expenditures, with police and fire taking up half of general fund spending.
Despite the flat rate, the town expects to collect an additional $3.17 million in property tax revenue because assessed home values rose. About $489,287 of that comes from new property added to the tax rolls.
Staff pay and exemptions
All town employees will receive a 3% cost-of-living adjustment. Market pay adjustments are paused this year. The town said it aims to restore them in fiscal year 2027-28.
When the raise was proposed Aug. 3, Flower Mound communications director Melissa Demmitt told the North Texas Sun the adjustment would "help employees keep pace with rising living costs."
The budget continues a 20% homestead exemption, the maximum allowed under state law, and a $150,000 exemption for homeowners age 65 or older or with a qualifying disability.
What's ahead
For Denton County residents, Flower Mound's rate makes up 23.5% of their total property tax bill. Lewisville ISD accounts for 65.4% and Denton County 11.1%.
Town Manager James Childers warned at a June 14 council meeting that continued revenue shortfalls could eventually force deeper cuts. "This is gonna start hitting the components that people say they care about the most. Public safety in particular …" Childers said, as reported by the North Texas Sun.
The council has not decided whether to call a voter-approved tax rate election, or VATRE, for the November 2027 ballot.
