Town finance staff told the Flower Mound Town Council the cost of providing municipal services is rising faster than the town’s statutory authority to raise revenue under Texas’ SB2 limits, and urged the council to begin deliberations on service priorities.

CFO John Zagorski presented comparative data showing Flower Mound ranks low‑to‑mid among peer cities on total cost per acre and cost per resident, and that residents rate public safety, public works and utilities as the highest‑priority services. Zagorski said the town’s audited spending compares favorably with peers but that inflationary personnel and operating costs are placing pressure on the general fund.

Town Manager James Smith told the council the town faces “for the first time in 16 years” a decline in the property tax base, and that together with sales‑tax variability the council should prepare for a multi‑month process to set service levels and, if necessary, seek voter authorization to exceed the statutory revenue‑growth cap. Smith described the voter‑approval tax‑rate process as the mechanism required by state law to increase property tax revenue above the 3.5 percent revenue‑cap baseline.

Zagorski walked the council through analytic lenses — cost per acre, cost per resident and percent of total revenue from property taxes and sales taxes. He said that Flower Mound residents already pay a comparatively high share of the town’s cost of services from property tax revenue and that the town has limited short‑term levers to reduce the revenue gap without affecting core services, especially public safety. He recommended a sequence of department‑level briefings so councilmembers can weigh tradeoffs before the August window to call a November voter approval election.

Staff outlined a schedule of department presentations to the council from October through mid‑December covering police; utilities; library; streets/public works; parks and recreation; development and engineering; fleet and environmental services; and fire/EMS. Zagorski also proposed a January review of fees and a formal cost‑recovery policy for user charges.

No formal action was requested that evening. Town leaders said they will publish materials and hold follow‑up briefings with the public as the deliberation continues.