News post

At the meeting held on September 8th, 2026, and following a public hearing on that date, the VMMD Board of Directors adopted a 2026 total tax rate of $0.6201 per $100 of assessed value for District homeowners.  This represents a $0.1049 increase per $100 of valuation over the previous year.

The Board understands that property tax increases impact our community, and we are committed to transparency in explaining how your tax dollars are allocated. This article provides: 

• an overview of the District’s responsibilities, taxing authority, and the process used by the BBoard to adopt an annual tax rate;

• a detailed overview of the recent property tax rate adjustment, including comparisons to the previous year and a breakdown of each component;

• reasons why the increase was adopted; and 

• the impact on property owners

VMMD taxing authority and process to adopt and annual tax rate

The VMMD is a political subdivision of the state of Texas created for the benefit of the public and for public purposes, including the acquisition, construction, improvement, financing, operation, and maintenance of public water, sanitary sewer, drainage, road, landscaping, park, recreational facilities , and other enhancements and features.  

The District is governed by a Board of five Directors subject to election by voters within the District. The Board is responsible for managing the affairs of the District including acquiring, constructing, and financing the public infrastructure that serves the District, and, as such, has the authority to levy an ad valorem tax (property tax) to fund debt service on bonds issued to provide the water, sewer, drainage and roads serving the District, as well as to fund its operations and maintenance of certain portions of those public improvements.  

The Board sets the tax rate in September of each year The process begins in August, when the Board receives, a tax rate analysis and recommendation provided by its financial advisor and takes action to adopt a proposed tax rate and date for a public hearing on the proposed rate. Then at the September Board meeting the public hearing is held to provide District residents an opportunity to provide feedback on the proposed tax rate.  Following the public hearing, the Board adopts the final tax rate.

Tax rate comparison – 2026 vs 2025

The tax rate is structured into three dedicated components that support District operations and bond obligations.   The breakdown of the 2025 vs 2026 rates is as follows:

Understanding the component parts of your property tax rate

The VMMD property tax rate components each serve a distinct purpose in maintaining and improving our community:

1. Maintenance & Operations (M&O) Rate

What it is: 

The M&O rate funds the day-to-day operational expenses of the District.

What it covers:

• Landscape maintenance and common area upkeep

• Street lighting and utility costs

• Pump and well maintenance and repair

• Trail maintenance

• Park maintenance and repair

• Administrative expenses and District management

• Various consulting and professional service fees (e.g. Engineering, Tax, Auditing, Accounting, Web/Communications)

• Insurance and legal fees

• Security services (if applicable)

• Ongoing repairs and routine maintenance

•  A portion of Sailing Center costs

2. Debt Service Rate: Two components - Road and Utility bonds

What it is: 

The debt service rate is dedicated exclusively to repaying the principal and interest on bonds issued for the costs of the construction and installation of public infrastructure (utilities, drainage, roads) in the Viridian development.

Reasons for the tax rate increase

The main factor prompting the need for the property tax rate adjustment this year is the overall decrease in the average appraised value of property within the District

The reduction in the average appraised value of property within the District significantly decreased the overall community value in 2026 that now totals about $1.9B vs $2.12B in 2025, a decrease of approximately 6.2%.  Consequently, the District will see a decrease in tax revenue necessary to service its debt and support operational expenses.   Based on this information and other information that the District’s financial advisor provided, the Board believed it most prudent to adopt the increase of $0.6201.  As opposed to other options, the rate adopted ensures that the District maintains an adequate M&O budget and avoids deferring necessary maintenance and repairs within the community; minimizes the potential need to tap reserves; and ensures that adequate funds are available to service debt and not create pressures that could require significant tax rate adjustments in later years to ensure the District remains on schedule to retire its outstanding debt.   

In making this decision, the Board considered the following:

Recovery of community/homeowner valuations in the near-term   

While the community may see valuations bounce back in the near-term, there is no guarantee this will occur and there is just as likely the potential for them to continue to drop.  The Board believed in making any decision, it was critical to deal with the “known” rather than hypotheticals that may or may not come to fruition. 

Rising Operational Costs

Like households across the country, the VMMD has experienced increased costs for essential services. Landscape maintenance, utilities, insurance premiums, and contractor services have all risen due to inflation and market conditions.  The Board has found various ways to mitigate costs and the tax increase adopted maintains the necessary funding to support operation and maintenance requirements at a level commensurate with the district’s 2026 O&M budget that totals $3.45M. 

Infrastructure Maintenance and Improvements

As our community matures, infrastructure requires more intensive maintenance. Aging facilities, roadways, and drainage systems need proactive attention to prevent costly emergency repairs and maintain property values.

Debt Service Obligations

As noted above, bond payments for previously approved capital improvements continue on a set schedule. These bonds funded the infrastructure and amenities that make Viridian an attractive place to live, and the debt service component ensures we meet these obligations responsibly.

Reserve Fund Requirements

Maintaining adequate reserve funds is a fiscal best practice that protects the District from unexpected expenses and ensures we can respond to emergencies.

What this means for property Owners – Scenario based on average community homestead value

Annual increase based on the above information: $187 annually or an increase of 6.98%.

Our commitment to fiscal responsibility

The VMMD Board of Directors is committed to:

• Transparent budgeting with public meetings and available financial reports

• Competitive bidding for all major contracts and services

• Long-term planning to avoid unexpected rate spikes

• Regular assessment of service levels and community needs

• Value preservation through proactive maintenance and improvement

The Board believes strongly that the rate adopted places the District in the best fiscal circumstance both in the near-term and the future. The rate increase allows the District to adequately fund its O&M budget ensuring it completes necessary repairs and maintenance to district assets; ensures adequate funds are available to service debt; and avoids, to the greatest extent possible, scenarios where the district would need to defer maintenance, tap reserves, and/or take extraordinary actions in the future to service and retire its debt.   

Questions and additional information

We encourage residents to stay informed and engaged by:

• Attending Board Meetings: Held at noon on the second Tuesday of every month

• Visiting our website: https://viridianmmd.com/https://viridianmmd.com to review meeting agendas, summaries, and notes, and 

• reviewing the District’s annual budget and Monthly Bookkeeper’s Reports that are also located on our website.

Your input and participation help ensure that the VMMD continues to serve our community effectively while maintaining the high standards that make Viridian a wonderful and special place to call home.

This article is intended for informational purposes. For specific questions about your property tax assessment, please contact the Tarrant County Appraisal District.