Flower Mound residents will not see a property tax rate increase in fiscal year 2026-27, but the flat rate comes with a trade-off: no new town services or programs.

The proposed budget totals approximately $474 million across all town funds and keeps the property tax rate at $0.387277 per $100 of assessed value, according to the town's official announcement. The rate has held steady for three consecutive years.

To avoid a rate hike, departments absorbed rising costs for police and fire salaries, vehicles, equipment, road construction, technology, insurance and contracts within their existing budgets. Staff recommendations focused on maintaining current service levels, not expanding them. No new programs, expanded services or facility improvements made the cut.

The town arrived at a stronger financial position than originally projected after revenue forecasts were revised upward and cost-saving measures were identified across operations, according to Flomobee.

The squeeze is not new. At a June 2 council meeting, Chief Financial Officer John Zagurski laid out the math driving the constraints. "We are facing revenue limitations that have not been seen here in the state of Texas before," Zagurski said, as reported by the North Texas Sun. "Specifically, costs are rising faster than revenues can increase legally without an election."

Texas law, under Senate Bill 2 passed in 2019, caps how much a city can grow its property tax revenue at 3.5% before the increase must go to voters. Flower Mound's $0.387277 rate sits at that voter-approval ceiling.

The budget continues the town's 20% homestead exemption, the maximum allowed under state law. Homeowners age 65 or older, or those with a qualifying disability, keep a $150,000 exemption.

A flat rate does not guarantee a flat tax bill. The Denton Central Appraisal District sets home values, not the town. If a home's appraised value rose this year, the owner's bill will increase even at the same rate.

Neighboring Highland Village took a different path. As we reported Sept. 17, Highland Village approved a three-cent tax rate increase while cutting four community events.

The budget takes effect Oct. 1. The full document is available on the town's website, and residents can email questions to [email protected] or attend any Town Council meeting at Flower Mound Town Hall, 2121 Cross Timbers Rd. Meetings start at 6 p.m.