Highland Village staff previews FY26 budget, tax-rate proposal and $7.08 million certificates of obligation

City staff on Aug. 26 summarized adjustments to the fiscal 2025 year-end estimate and the proposed fiscal 2026 budget and said the City Council will be asked at upcoming meetings to adopt a general fund budget, set the property tax rate and authorize certificates of obligation to fund road projects.

At an early work session presentation, a staff member identified as Heather reviewed a handful of line-item changes to the proposed budget and the city’s year-end projections. Heather said, “we will we're estimating to finish at a, fund balance of $11,000,000, which would be 47 percent of our current year expenditures.” She added that incorporating the council’s recommended supplementals would produce a projected fiscal 2026 ending fund balance of $8,400,000, or about 32 percent of next year’s expenditures, and a $2,600,000 deficit in the budget for FY26.

Why it matters: The staff numbers set the context for…