August 3, 2026

By Mary Beth Gahan

Flower Mound Town Manager James Childers has been warning town council and the public about looming financial decisions that will need to be made in the fall of 2027, but those larger changes regarding a possible tax rate increase or cut to town services are still a year away.

The town released its proposed budget for next fiscal year on Monday and it calls for maintaining the status quo, for now. If approved as-is by council members, the tax rate will stay the same and very few services and personnel will be added. Town employees will receive a 3 percent raise to keep up with inflation.

The early stages of cutting back are apparent in the plan, though. Nearly $4 million in new requests for personnel and equipment were left on the cutting room floor. More could be on the way if the town council chooses to not call a voter-approved tax rate election next fall.

The tax rate for the fiscal year starting in October is proposed to stay at $.387277 per $100 of assessed value, the same as last year and one of the lowest among municipalities in north Texas.

Lewisville’s is $.41909 and Highland Village’s is $.500273. Roanoke and Northlake have theirs set lower at $.308 and $.295, respectively.

Despite the rate staying the same, the town is expected to see an increase of $3.17 million in property tax revenue, mostly thanks to an increase in assessed real estate values, especially land. Of that, $489,287 is expected from new property added to the tax roll this year.

Still, sales tax revenue is down 7 percent in the last year. The drop is largely due to HD Supply, a subsidiary of Home Depot, entering a contract with New Braunfels to route their sales through a call center there, leaving Flower Mound without that revenue. A slowing economy is also to blame.

The general fund, which is funded by sales, property and franchise tax, as well as charges for licenses and permits, is projected to have $98 million in revenue. Expenditures, the bulk of which are personnel costs, are proposed to total $99 million.

Together, the police and fire departments take up 50 percent of general fund expenditures.

When preparing the budget, department heads, as usual, sent in requests for new services or personnel. A significant portion of the requests, which are called decision packages, are not included in the proposed budget and will go unfunded unless the town council decides to add them.

The unfunded requests that would add to the general fund expenditures total more than $2.8 million. They include personnel additions like $402,000 for three full-time tree crew members, $227,000 for two full-time irrigation crew members, five full-time employees in various parts of the police department, and an Arts Center general manager.

The town will also make do without a library outreach vehicle, advanced cancer screening for firefighters, and weight scales for ambulance cots.

Last year, there were $4.8 million in unfunded general fund requests and some appear on the list again this year.

In some cases, the town used what it already had to make those new ideas happen.

The police department requested to add two full-time motorcycle officers last year for $472,000 in one-time and ongoing costs. It went unfunded. Earlier this summer, when the department debuted two BMW motorcycles, it said the officers had been reassigned to the squad from other positions in the department.

In the proposed budget, staff recommended funding 10 decision packages, including the roots volunteer corps operational budget, wastewater treatment plant operator salaries, leak detection equipment, and drainage and right-of-way maintenance. Those would draw from various funding sources, with the largest amount — $1.3 million — coming from the utility fund. Just over $40,000 are expenses added to the general fund.

The town, which implemented a soft hiring freeze in the spring, is proposing adding four employees in public works. All town employees will also receive a 3 percent raise.

“The adjustment is intended to help employees keep pace with rising living costs,” said Melissa Demmitt, communications director. “This will also adjust the pay plans to ensure we remain competitive in the market for recruiting.”

Even though it’s much of the same as last year’s budget, Childers noted the “financial realities” facing municipalities in Texas since they have to go to voters to increase the tax rate more than 3.5 percent and inflation has been at or above that level for months.

Childers wrote in the opening pages of the proposed budget that residents will have a say in how the town should proceed in addressing a tax shortfall, high inflation, and growth on the west side.

“If maintaining services requires additional funding in the future, residents – not just elected officials – will have a direct role in that decision,” Childers wrote.

A voter-approved tax rate election, if called next August, would be on the November 2027 ballot.

The town council will have a work session on Aug. 13 to hear more about the proposed budget. A public hearing and vote to adopt the budget will happen at the Sept. 21 town council meeting. The new fiscal year begins on Oct. 1.

Read more budget stories:

Town manager warned about budget “cliff” years ago, would like more input from residents

Interest in Flower Mound budget process is high as revenues are down

Flower Mound town manager lays out another option if tax increase isn’t palatable

Flower Mound faces possible tax rate increase as growth strains infrastructure, inflation rises