Highland Village’s recently-approved budget for Fiscal Year 2025-2026 will increase the city’s tax rate from $0.500273 to $0.500984 per $100 of home valuation.
The city’s tax makes up 33% of a homeowner’s property tax bill. 55% goes to the local school district and 12% goes to the county.
According to the city, Highland Village’s recently-approved increase will raise the tax on an average residential home, valued at $590,092, by $4.19.
The increase comes after years of tax rate decreases by Highland Village, which lowered the tax rate from $0.56302 per $100 of valuation in Fiscal Years 2019-2022 down to the current rate of $0.500273.
Paul Stevens, the city manager for Highland Village, said recent tax decreases also happened because of value the city had added, which allowed staff to decrease the tax rate.
This year, however, that value dropped, forcing staff to raise the rate just under what is allowed by voters. Had staff proposed to set the rate higher than the voter-approved amount, a special election would have been required.
City documents indicate the slight increase was due to a slower-than-normal economy, higher interest rates and tariff uncertainty, which is believed to have negatively impacted sales tax revenue.
According to the city, some key initiatives for this year’s budget include:
- Adding a pair of Outdoor Warning Sirens to provide more coverage
- Better equipping the fire department with wildland and tech gear that is lighter and more breathable compared to normal gear. It can be used for calls that don’t require full protection.
- Adding a drone program for the police department to be used for search and rescue, tactical response and evidence collection.
- Adding in Flock cameras to increase safety
- The purchase of a hot mix asphalt repair vehicle that will improve the durability and efficiency of street repairs
- More funding to be used for teen events
City Council also approved an ordinance to issue Certificates of Obligation in the amount of $7.4 million for street improvements. According to the City, the cost coincides with expiring debt, so it will have no impact on the City’s ad valorem tax rate.
The two major projects the $7.4 million will go to include:
Highland Village Shores Blvd.
At Highland Village Shores Blvd., a reconstruction project will occur from Briarhill Blvd. to Twin Coves, which has a price tag of $5,515,000 for Highland Village. Denton County will match 50% of the cost.
The project will replace the concrete pavement section with new pavement and enhance the drainage in the area. It will also calm traffic, which will increase pedestrian and traffic safety.
Highland Village anticipates this project will start in 2026.
Highland Village Road
A project on Highland Village Road will reconstruct the street from the entrance of the Municipal Complex to the KCS Railroad Crossing, which is estimated to cost $1,560,000. Once again, Denton County has agreed to match 50% of the cost.
The project will widen the Highland Village Road by four feet, improving the sidewalk, drainage and the median at the KCS Railroad Crossing.
Also, a dedicated left-turn lane onto Canyon Creek will be added with more trail crossing being discussed.
The project is expected to begin in spring 2026 and last 10-11 months, according to the City.
For more information on the City’s budget, visit Highland Village’s budget webpage on its website.
