Flower Mound's proposed budget for the fiscal year starting Oct. 1 totals roughly $474 million. The spending plan holds the property tax rate at $0.387277 per $100 of assessed value, one of the lowest in Denton County.

Mayor Cheryl Moore framed the budget in her Sept. 23 message as a preview of a fight with Austin over local fiscal control. State lawmakers in the 2025 session considered lowering the cap on how much cities can grow property tax revenue without voter approval, from 3.5% to 2.5%. Those proposals did not pass. The next Texas Legislature convenes in January 2027.

"This is about LOCAL CONTROL," Moore wrote. She added that residents and the officials they elect should retain a voice in determining how their community addresses its needs and priorities.

Moore said she, Town staff and the Town Council are preparing to attend interim legislative meetings in Austin to push back on bills that could further restrict municipal authority over land use, development and infrastructure funding.

Tight margins at home

The budget holds the line on taxes but leaves little room to grow. The Town's official budget page notes that since 2019, when the Legislature passed Senate Bill 2 capping annual property tax revenue growth at 3.5%, the town's costs have climbed far faster. Fuel is up 100%, construction 40%, equipment 30% and wages 25%. 

Only two new General Fund spending items made the cut, totaling $40,300: a $35,000 rate adjustment for Municipal Court judges and a $5,300 volunteer program in Parks and Recreation. Employees will receive a 3% cost-of-living raise, and workers earning under $75,000 get a one-time stipend. The town remains in a soft hiring freeze. 

The property tax rate has dropped nearly 12% since 2019, according to the town. Flower Mound also continues offering a 20% homestead exemption, the state maximum, plus a $150,000 exemption for residents 65 and older or those with qualifying disabilities.

Revenue pressures building

The budget arrives against a backdrop of shrinking revenue. The Flower Mound Bee reported in June that the town's property tax base fell 2% year over year, the first decline in 15 years. Accounting for new growth, the loss was closer to 5%.

Sales tax revenue was on track to drop 7.5% by October, partly because HD Supply shifted its internet sales sourcing to San Marcos, the North Texas Sun reported in July.

Town Manager James Childers warned in that same July report that by next year the town would likely face three choices: a voter-approved tax rate election, known as a VATRE, to be called in August 2027; service cuts; or personnel reductions. Moore called a VATRE the "last possible conclusion" in the July 17 North Texas Sun report on the town's budget pressures.

What's next

The Town Council was scheduled to hold a public hearing and vote on the budget Monday, Sept. 21 at Town Hall, 2121 Cross Timbers Rd. The outcome of that vote has not been confirmed as of publication. The budget is set to take effect Oct. 1.

Residents who want to weigh in on the state-legislation fight or the town's fiscal direction can contact the council at [email protected].