"With valuations coming in so high, we know there will have to be a tax [rate] decrease," interim Town Manager Debra Wallace told the council at a strategic planning session July 15.
She referenced a state law that requires municipalities to limit property tax revenue growth from year to year unless they get approval from voters to collect a higher amount.
The town's property tax rate is currently $0.4365 per $100 valuation.
Flower Mound homeowners will also get an extra tax break in the coming year with the Town Council's vote in June to double the homestead exemption to 5%.
Some good news on the budget front, according to Wallace, is that sales tax revenue for the current fiscal year are about 5% higher than what was budgeted. Officials had budgeted last summer for no increase in sales tax revenue because of the uncertainty surrounding the COVID-19 pandemic.
Wallace said the proposed budget will also include the equivalent of 19.75 new positions, 13.75 through the general fund and six through the water fund. Six of those new positions in the general fund will be added to the fire department, and four are proposed for the police department, Wallace said.
The budget will also include proposed pay raises for employees. Wallace said the goal is to help the town stay competitive not only with other local governments but also with the private sector.
Wallace also reviewed several information technology projects that could be included in the upcoming budget to improve efficiencies and productivity.
The council will have a budget work session Aug. 19. A public hearing on the budget is set for Aug. 23, and a vote on the tax rate and adoption of the budget will be Sept. 23.
