Highland Village started discussing the city’s upcoming budget, which is projected to be in a deficit of slightly more than $2.1 million.
City council and staff began discussing plans on how to mitigate the deficit at Tuesday’s council meeting, but another meeting will be held next week to continue discussions.
According to the city, property tax revenues are expected to increase slightly, which will offset the decline in sales tax and interest income. It will produce a 2.1% increase in city revenue from last year, but the problems lie elsewhere.
The deficit stems from a changing financial landscape that many other municipalities across the state, and southern Denton County, are also facing.
“Rising costs, state-imposed limits on local revenue growth, and the realities of being a mature, nearly built-out community are shaping this year’s budget and future financial planning,” said Mayor Charlotte Wilcox. “Highland Village is one of the most desirable places to live in North Texas. We have an exceptional quality of life, outstanding public safety, beautiful parks, well-maintained infrastructure and have been conservative in managing our finances.”
As an early planning effort, the city has dedicated many budget items as “Decision Items,” which will bring the base budget deficit down by more than $1.4 million.
The items include a range of cost-saving measures across compensation, operations, infrastructure maintenance and city programs, according to a city press release.
With none of the Decision Items included, the budget is projected to be $676,519.
According to City Manager Paul Stevens, Highland Village City Council will have the chance to approve or deny the addition of Decision Items to the budget.
“We are at a point where we need to look at things differently. The City has always had a very lean budget, and even more so this year,” said Stevens. “This year, we have pulled several initiatives and programs from the base budget and categorized them as ‘decision items’ for council to consider as we move through the budget process.”
Council will hold a special meeting on Tuesday, July 21 at 6 p.m. to further discuss the General Fund Budget and the Decision Items.
According to the city, further discussions will also take place through August and September.
For more information on Highland Village’s budget, visit the city’s budget webpage.
In September 2025, the city approved a budget with a slight increase to the city’s tax rate. The city’s tax makes up 33% of a homeowner’s property tax bill.
