Highland Village homeowners will pay about $106 more in city property taxes starting Thursday, Oct. 1, after the City Council voted unanimously Tuesday, Sept. 22, to adopt the fiscal year 2026-27 budget.
The new tax rate of $0.528541 per $100 of assessed value is a 3.9% increase over the prior rate of $0.500984. The increase adds $377,615 to the General Fund and offsets a 2.8% drop in certified property tax values, the Cross Timbers Gazette reported.
The vote caps a months-long process that began in July when staff presented a budget with a $2.1 million deficit. Council Member Brian Fiorenza acknowledged the work it took to close that gap.
"We worked really hard getting the budget down and minimizing the impact to the community," Fiorenza said.
What got cut
The adopted budget totals $25,702,807 in operating expenditures, according to the city's Sept. 15 budget notice. That is 1.9% less than last year's adopted budget.
To shrink the deficit, the council froze three vacant positions, saving $378,625. Police and fire jobs are exempt.
Other cuts include:
- Nonprofit funding: $62,000
- Intern program: $29,000
- Light upgrades: about $23,000
- Concerts in the Park: $21,660
- Recreation programs: $9,000
- Wine Down with the Grinch: $7,004
- Movies in the Park: $3,970
- Tri-Town Amazing Race: $3,310
The budget also includes a 2% salary adjustment and market-rate adjustments for some positions. Sales tax revenue is projected 2% below last year's budgeted amount.
A 'new financial reality'
The budget squeeze reflects Highland Village's status as a nearly built-out city. The city has just over 70 undeveloped acres remaining, some with development challenges, according to the Sept. 15 notice.
At a July 21 work session, the council trimmed the projected deficit from $2.1 million to $1.6 million. Mayor Charlotte Wilcox framed the moment bluntly: "This year marks the beginning of a new financial reality," she said at that session.
City Manager Paul Stevens struck a similar tone when staff first presented the budget at a July 14 meeting. "We are at a point where we need to look at things differently," Stevens said at that meeting.
What's next
The city plans to conduct an Organizational, Workforce and Service Delivery Study during the new fiscal year to evaluate staffing and find efficiencies. The five-year forecast projects a General Fund reserve of about 34%, well above the city's 20-to-25% policy target.
