Highland Village council adopts FY2025‑26 budget and sets 2025 tax rate at 0.500984

The Highland Village City Council on Sept. 9 received the city manager’s recommended budget for fiscal year 2025‑26, held a public hearing with no public speakers, and adopted the budget ordinance (Ordinance No. 2025‑1330) on first read with a recorded vote.

City staff reported key budget figures: staff said property tax valuations increased about 4.2 percent for the year, producing roughly $760,000 in additional revenue compared with last year’s valuations, and that the city’s assessed value totaled just over $3.5 billion. The recommended general fund base expenditures were listed at $26,208,623 with $539,612 in supplemental requests. The staff presentation included several program highlights: a 3 percent salary increase for all employees, two additional outdoor warning sirens for broader alert coverage, purchase of wildland-technical gear for certain fire responses, a drone program in the police department (partially funded by tax notes), five new Flock camera locations, a hot-mix asphalt repair vehicle for the streets department, and funding for targeted teen recreation events.

Staff reported an estimated general fund balance of about 32 percent for FY2026 (above the 20–25 percent target) but acknowledged the city is budgeting a deficit of approximately $2.2 million in the coming year and that future years would be more challenging.

The council opened and closed the public hearing at 8:00 p.m. with no public comment and then voted to approve Ordinance No. 2025‑1330 on first read. Angie (city staff) conducted the recorded roll call for the budget vote; each council member recorded an affirmative vote. The transcript records the roll-call responses as follows: Mayor Wilcox — Yes; Councilman Kicks Miller — Yes; Councilman Cox — Yes; Councilman Nelson — Yes; Councilwoman Hurst — Yes; Deputy Mayor Pro Tem Feaster — Aye; Mayor Pro Tem Fiorenza — (affirmative). The ordinance passed unanimously.

The council then considered Ordinance No. 2025‑1331 to levy ad valorem taxes for 2025 at a rate of 0.500984 per $100 valuation. Staff explained the motion’s required language comparing the adopted rate to the “no-new-revenue” rate; the motion states the adopted rate represents an effective 4.3 percent increase over the no-new-revenue rate. Councilmember Fiorenza moved adoption; the motion was seconded and the roll call produced unanimous affirmative votes recorded as “Aye.”

Consent agenda items taken earlier in the meeting — approval of minutes for the Aug. 26 regular meeting, adoption of Resolution No. 2025‑3207 (an agreement with Stage 3 Separation LLC for dredging of Quail Cove and the Walmart retention/detention facility), and receipt of budget reports for period ending July 31, 2025 — were approved on a single consent motion and recorded as carried 7-0.

Why it matters: adoption of the budget and setting the tax rate determine city services, capital funding and the tax burden for the coming fiscal year. The council approved spending priorities while acknowledging the city will draw down fund balance in the short term.

What’s next: staff will implement budget items, include the fixed debt-service amounts in future budgets and proceed with programs funded in the FY2025‑26 budget.