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Council adopts FY25-26 budget and raises tax rate to $0.387277 per $100; earmarks drainage work
Summary
Flower Mound's Town Council unanimously adopted the FY25-26 budget and set the city tax rate at $0.387277 per $100 valuation, while allocating $154.3 million in new capital projects and adding a dedicated Cross Timbers drainage improvement project to the CIP.
The Flower Mound Town Council unanimously adopted the fiscal year 2025-26 operating and capital budget and set the municipal property tax rate at $0.387277 per $100 of assessed value, a 4.07% increase from the current rate.
During a lengthy budget presentation, Finance staff outlined the budget's major components: about $154.3 million in newly proposed capital projects for the coming year, plus roughly $90 million in previously authorized capital budget authority to complete multi-year projects. Staff described the general fund as balanced and noted the budget includes one-time items and capital spending that will be carried forward as projects continue. Council also adopted the crime control and prevention district and the fire control district budgets in companion votes.
Council members and staff discussed a new Cross Timbers Drainage Improvement capital project, which the budget includes to provide in-house clearing and drainage repair work (cleaning culverts, redefining swales and right-of-way ditches) in a neighborhood where residents have asked for targeted attention. Staff clarified the appropriation is intended for operational and construction work in that neighborhood rather than commissioning an external, one-off drainage study.
Finance staff also summarized recent changes to exemptions and how they affect typical homeowners: the council earlier approved a 20% homestead exemption for the town portion of property tax bills, and those age 65 or disabled who file for the additional exemption receive an extra $150,000 reduction in assessed value for city taxes. Staff provided the required calculations under Texas law, including the "known new revenue" rate (0.372129), and explained that the adopted rate is below the voter-approval threshold, so no election is required. The required motions to adopt the budget, ratify the property-tax revenue increase reflected in the budget, and adopt the tax rate all passed by unanimous vote.
