Council Approves First Read of the Annual Budget; Approves Issuance of $7.4M in CO's

At the September 9 meeting, City Council held a public hearing and approved the first read of the FY 25-26 Budget. The assessed valuation came in at a 4.2% increase in property tax revenue. The tax rate will increase from $0.500273 to $0.500984. Sales tax revenues show a decrease of 7.8% from last year's budgeted amount. The 2025 base budget is $26,208,623, with an additional $539,612 identified for supplemental requests. Our competitive pay, benefits, and career development structure to attract and retain qualified personnel for Fiscal Year 2026 has identified a 3% salary adjustment as well as market adjustments for some positions. Key initiatives and projects this year include:

• Addition of two Outdoor Warning Sirens to provide better coverage throughout our community.
• Wildland/tech gear to equip fire department personnel with a lighter, more breathable alternative to traditional bunker gear for calls that do not require full protection.
• Addition of a drone program for the police department to be used for search and rescue, tactical response, and evidence collection.
• Addition of five Flock cameras to increase the safety of the City.
• Hot Mix Asphalt Repair Vehicle, which will improve the durability and efficiency of street repairs, allow for more permanent fixes, lower material costs, and replace labor-intensive methods that are outdated.
• Funding for specific teen events.

Council approved an ordinance authorizing the issuance of Certificates of Obligation totaling $7.4 million for street improvements. The Certificates of Obligation will coincide with expiring debt and therefore have no impact to the City's ad valorem tax rate. Projects included in the issuance are:

• Highland Shores Blvd. Reconstruction from Briarhill Blvd. to Twin Coves - $5,515,000 with a 50% match from Denton County. This project consists of replacing the concrete pavement section with new pavement as well as enhancing drainage, pedestrian and traffic safety and traffic calming along the section. It is anticipated that this project could be under construction in 2026.
• Highland Village Rd. Reconstruction from the entrance of the Municipal Complex to the KCS Railroad Crossing - $1,560,000 with a 50% match from Denton County. This project will include widening the road cross-section by four feet, sidewalk improvements, drainage improvements, and median improvements at the KCS Railroad crossing. Additionally, a dedicated left-turn lane onto Canyon Creek will be added and additional trail connections are proposed. The project is projected to begin in spring 2026 and is expected to last ten to eleven months.

City Council approved the preliminary plat for Magnolia Village, located on Barnett Blvd. Magnolia Village will include 25 lots for single-family patio homes, sidewalks, and two four-inch caliper trees in the front yard of each house.

During City Manager and Staff Reports, City Manager Paul Stevens provided information on the call for sponsorships for the TXFallenPD Tribute Event, Paper Shredding Day scheduled for September 27 and the call for nominations for Congressman Gill's Congressional Veteran Commendation which will be presented at the November 12 Salute Our Veterans luncheon.

The City Council early work session and regular session is available on HVTV (Frontier 43) and via website live streaming at www.highlandvillage.org/hvtv and on the City's YouTube channel at www.youtube.com/highlandvillagetx. The meetings are also available for on-demand viewing on the city website.