Flower Mound's $474 Million Budget Holds the Tax Rate — Here's What That Cost

Your Flower Mound property tax rate isn't going up. The FY 2026–27 budget keeps the current rate at $0.387277 per $100 of assessed value — one of the lowest in Denton County. That's the headline. The more useful question is how the town got there, because the answer shapes what services look like starting October 1.

The town arrived at a stronger financial position than originally projected — enough to hold the rate steady — after revenue forecasts were revised upward, departments spent months refining their budgets, and cost-saving measures were identified across town operations. The full spending plan across all town funds comes to approximately $474 million. That number covers far more than day-to-day operations: utilities, debt service, capital projects, and special revenue funds are all included, alongside the General Fund that pays for the services most residents actually notice.

So what did it take? Two things the town was candid about.

Service expansion is off the table for now. Each budget cycle, departments submit requests for new programs, expanded services, or facility improvements, and town leadership reviews those requests and makes recommendations. This year, anything staff recommended was aimed at holding existing service levels steady, not growing them.

Departments also absorbed cost increases on their own. The cost of providing municipal services doesn't always rise at the same pace as available revenue — police and fire salaries, vehicles, equipment, road construction, technology, insurance, and contracts are all subject to inflation and market conditions. Holding the rate flat while those costs climbed meant the gap had to come from somewhere inside each department's existing budget.

The proposed budget reflects difficult choices made throughout the process to balance available revenue with services residents rely on, while the town works through rising costs and state-imposed limits on property tax revenue growth. On that last point: Texas law caps how much a city's maintenance-and-operations property tax revenue can increase before the change must go to voters for approval.

Two other things worth knowing. The 20% homestead exemption — the maximum allowed under state law — continues, as does the $150,000 exemption for homeowners 65 or older or those with qualifying disabilities. And a note the town posted directly: Flower Mound doesn't set your home's appraised value — Denton CAD does. If your home's appraised value rose, that can push your actual tax bill higher even when the rate holds steady.

The practical takeaway: The budget takes effect October 1, 2026. The full document is public at flowermound.gov/proposedbudget. If you want to know which specific service requests didn't get funded — and whether any of them affected your neighborhood — that detail is in the budget itself. You can also email questions to budget@flowermound.gov or bring them to any Town Council meeting.