The Flower Mound Town Council on Monday voted unanimously to approve the town’s new budget and to reduce the property tax rate by 7.22%.
The new tax rate of $0.405000 per $100 valuation, combined with an increased homestead exemption (from 2.5% to 5%) that council approved earlier this year, will help Flower Mound homeowners during a time of increasing property values.
“This was my fourth budget cycle, and this was by far the easiest to go through and the best results, in my opinion,” said Councilman Jim Engel. “Between the homestead exemption and the 7.22% reduction, homeowners are going to pay either flat or a reduced value.”
The new budget will raise $1.7 million less revenue from property taxes than last year’s budget. The town projects to spend more than $6 million than it brings in, but the majority of the difference is related to spending balances that have been previously collected in the dedicated sales tax funds for capital projects.
The new budget goes into effect on Oct. 1.