The Highland Village City Council on June 24 received an update on the city’s capital improvement program for fiscal 2025–26 and a staff proposal to issue certificates of obligation for roughly $7 million around September 2025 to help fund reconstruction of Highland Shores Boulevard and Highland Village Road.

Staff said the city previously issued a 2021 bond package that included $8.8 million for streets and drainage and $6.4 million for park improvements. “We’ve issued 8,800,000,” a staff member told the council while summarizing the 2021 package and the status of related projects.

The staff member said engineering for the Highland Shores Boulevard and Highland Village Road reconstruction is complete and that Denton County has identified about $6.4 million in potential funding for those projects. Staff offered an opinion of probable cost of about $13.5 million for the two road projects together and proposed issuing certificates of obligation in the fall to provide the city’s share if county funding does not cover 50% of the cost.

Why it matters: the two road reconstructions are large capital projects that will affect local traffic patterns, sidewalks and drainage. The council’s debt strategy and the timing of bond or certificate issuances determine how the work is funded and the city’s debt-service burden.

Staff described project progress and completed items funded from the 2021 issue: reconstruction phases (phase 1 and 2 complete; phase 3 expected in 2026), an overlay and pedestrian crossing on Highland Shores Boulevard, a traffic signal at Brazos and Highland Village Road completed in 2024, and an engineered dredging project at a Walmart/Quail Cove bond pond underway. Park projects funded from the 2021 park allocation include work at the Highland Village Tennis Center, professional services for Pilot Knoll, tennis-court resurfacing at Unity Park (funded by the Gerald Fund), a dog park and irrigation renovations, and combined parking-lot projects at Sellmeier’s Tennis and the Lions Club. Staff said about $1.8 million has been committed to the $6.4 million park allocation so far.

On equipment, staff summarized a 2024 tax note the city issued for $2.7 million to cover major equipment replacement. Many items purchased or ordered from that note were listed by staff: a concrete mixer, air compressor, limb chipper and roller for public works; excavator, trailer and other drainage equipment; two ambulances and a brush truck ordered for fire; a large tractor for parks ordered; and police technology changes (funds originally listed for a sky-watch tower are being repurposed to purchase drones as requested by the Police Department).

Staff also said the fire department requested funding for portable and mobile radios and suggested the city might borrow part of that cost through the tax note rather than fund it entirely from the general fund.

Looking beyond 2025, staff identified a potential bond issue in 2028 that could include about $2.1 million for drainage projects, roughly $4.3 million for facility improvements (from a facilities assessment), and approximately $4.0 million for park projects tied to the Copperas Branch Park master plan. Staff warned that state law changes under consideration could require certificates of obligation to go to a public vote in the future; if that becomes law, the city would likely pursue a bond election for 2028 projects.

On fiscal impact and schedule, staff said the administration seeks to keep the city’s interest and sinking (I&S) portion of property tax in a low range so maintenance-and-operations revenue is not negatively affected, citing a target I&S share of about 14–16 percent. The council was given a preliminary budget calendar with key dates: a general fund budget workshop July 8 (when the plan of finance and a notice of intent to issue COs will be presented and Hilltop, the city’s financial advisor, will present), special-revenue funds on July 22, the utility fund on Aug. 12 (when the tax rate and budget amendments will be considered), and first and second reads of the budget and tax rate on Sept. 9 and Sept. 16.

Votes at a glance
- Consent agenda (items 10–13): Approved 6–0. The items included minutes for the June 10 meeting, a second and final reading to amend school zone code language related to Highland Village Elementary, a task order with SBI Inc. for engineering on the Highland Shores Boulevard underdrain project, and a contract award to Chamberlain Dallas LLC for a roof replacement project. (Motion to approve consent agenda, seconded; passed 6–0.)

- Denco Area 911 board vote: The council cast Highland Village’s vote for Steve Southwell for the Denco Area 911 District board of managers. The amended motion to cast the city’s vote for Southwell passed 6–0.

What the council did not do: the presentation and staff proposal included a request to seek authorization to issue certificates of obligation around September 2025; council discussion took place but no formal authorization or bond issuance vote was recorded at the June 24 meeting.

Next steps: staff will return with the plan of finance and a notice of intent to issue obligations at the July 8 workshop and will work with the council to prioritize projects for any future bond issuances.