Flower Mound reviews tight FY26 budget; staff proposes utility, stormwater rate increases amid state bill concerns

Town Manager James told the Flower Mound Town Council at a work session that the proposed Fiscal Year 2026 budget was the most difficult he has prepared in his tenure, driven by stagnant sales-tax receipts and a drop in certified property valuations.

“The proposed budget is my budget as a town manager… This is the most difficult budget that I’ve had to put together,” James said, describing a revenue situation that narrowed staff flexibility and left more than $7 million in decision packages unfunded.

Staff said the proposed operating budget balances without cuts to current service levels by shifting some capital spending to sales-tax funds and by funding market and merit adjustments for employees. Meg, the town’s budget director, described the budget as both an operational and policy document, saying it “is truly what it takes, the resources required, to execute the policies that council has identified.”

On utilities, consultant Chris Eckert of NewGen told council he recommends a 5.25% overall increase in both water and wastewater rates for FY26. He said wholesale cost increases from regional providers and capital needs are the primary drivers of the proposal. "I am…