Flower Mound Faces Economic Challenges Amid Declining Property Values and Sales Tax Fluctuations

The Flower Mound Town Council Work Session on August 21, 2025, focused on the town's economic outlook and its impact on local revenue sources. Key discussions highlighted the challenges posed by inflation and a significant drop in property evaluations, which have historically never occurred in the town.

Officials reported a 10% decrease in property evaluations over the past two years, attributing this decline to a backlog of homestead exemptions and a failed implementation of an increased exemption last year. This drop in property values has led to uncertainty in the town's primary revenue sources: sales and property taxes. While sales tax revenue increased by 2% compared to the previous year, month-to-month fluctuations have made it difficult to predict future trends.

The council noted that inflation has forced residents to alter their spending habits, impacting local consumption patterns. With approximately 70 to 80 homes currently for sale in a town with over 20,000 rooftops, the housing market is experiencing a slowdown, with homes selling for less than their previous inflated prices. This situation is compounded by concerns from residents regarding decreasing exemptions tied to their home's value.

Looking ahead, council members expressed that economic uncertainty could continue to affect the town's budget for the upcoming fiscal year. They emphasized the need for a shift in consumer behavior to stabilize revenue streams. The council will monitor these developments closely as they prepare for future budget considerations.