Flower Mound's Town Council met Thursday evening for a work session that sets the stage for formal action on the proposed FY 2026-27 budget at Monday's regular meeting.

The session ran from 6 to 8:30 p.m. at Jody Smith Hall, with Mayor Cheryl Moore presiding. No votes are taken at work sessions, which are deliberative only. The town has not yet posted minutes or a recording from the Aug. 13 session.

Budget holds tax rate flat

The council's most pressing business is the proposed budget the town released Aug. 3. It keeps the property tax rate at $0.387277 per $100 of assessed valuation, maintains the maximum 20% homestead exemption allowed under Texas law and preserves a $150,000 additional exemption for residents 65 and older or those with a qualifying disability.

The town said in its budget proposal that the fiscal outlook is stronger than originally projected, crediting updated revenue estimates and cost-saving efforts across departments. The proposal also noted the town must continue navigating rising costs and state-imposed caps on property tax revenue growth.

As we reported Aug. 3, Flower Mound holds AAA bond ratings from Standard & Poor's and Fitch.

Costco, Cottonwood development still in pipeline

The other major item on the council's horizon is the proposed Costco warehouse within Cottonwood, an 86-acre mixed-use development stretching from Dixon Lane to FM 407, just east of FM 2499. The land is currently zoned Agriculture and must clear both the Planning and Zoning Commission and Town Council before any construction begins.

Costco formally pitched the project at a P&Z work session on Aug. 11, according to the Cross Timbers Gazette. The retailer is targeting a May 2028 opening and projects roughly $150 million in annual sales currently being spent outside Flower Mound. More than 15,000 local residents held Costco memberships in 2025.

The numbers are big. The proposal asks for 898 parking spaces for a 168,256-square-foot building, nearly 100 more than town ordinances allow. Costco also wants to use up to 90% inorganic landscaping materials at the site, far exceeding the town's 20% cap.

Town Planner Chuck Russell said at the Aug. 11 P&Z session that Costco had not yet chosen a mitigation approach for the excess parking. P&Z Commissioner Deb Fitzpatrick raised concerns that oversized parking stalls would increase runoff and environmental impacts.

"While there is a lot of great opportunity here that we are excited about, there is also some legitimate concern with traffic … We need to be sure we're communicating and addressing those concerns for our citizens that live in the area," P&Z Chair Gregory Schultz said at the Aug. 11 P&Z work session.

Engineering firm McAdams documents show the Cottonwood development is scheduled to go before the Environmental Conservation Commission, P&Z and Town Council in fall 2026. Formal council action on the project is still months away.

What's next

The next regular Town Council meeting is Monday, Aug. 17, at 6 p.m. at Jody Smith Hall, where formal votes on budget items can occur. A work session originally scheduled for Aug. 20 has been canceled. The full proposed budget is posted at flowermound.gov/proposedbudget.