The council will vote whether to approve or amend a proposed total budget of nearly $184.09 million following a public hearing on Aug. 23. If approved, the budget would go into effect Oct. 1.
The property tax rate is slated to drop to $0.4050 per $100 assessed valuation from $0.4365. That means an average annual savings of $127 per homeowner, according to a presentation by Interim Town Manager and Chief Financial Officer Debra Wallace.
She said it would be the lowest tax rate in the history of the town. It would also continue a 10-year trend of declining tax rates from a high of $0.44970 per $100 valuation from fiscal years 2011-12 through 2013-14, she said.
According to the proposed budget, the town would earn 3.05% less in property tax revenues compared with this year’s budget.
In addition, the town’s homestead exemption is proposed to increase from 2.5% to 5%.
Flower Mound community members could see small increases in storm water rates and water and sewage fees. The budget includes a 3.13% increase in storm water rates and a 1.7% increase for water services, according to the presentation.
According to Wallace, the average Flower Mound household currently pays $153 for water services per month.
Short- and long-term fiscal responsibility was a major talking point among the Town Council, financial staff and representatives of city services during the meeting.
Mayor Pro Tem Ben Bumgarner raised issues with a few potential purchases of less than $50,000 apiece, including police security funding and a new snowplow. Town staff explained the need.
According to Wallace, 34.1% of the upcoming budget is earmarked toward the town’s reserve fund. The Town Charter requires at least 20% of revenue go toward the reserve fund on a year-by-year basis.
To read the proposed budget, click here.