Highland Village Council Takes Up Utility Rates and Drainage Fees — No Vote Yet

Your Highland Village utility bill has not changed yet. Monday, Oct. 27 brought the conversation that comes just before one might — council reviewed potential adjustments to water, sewer, and drainage charges and heard a separate presentation from the Denton County Transportation Authority on regional transit. No votes were taken.

This discussion has been building all year. Back in August, staff previewed a roughly $645,000 gap in the utility fund for fiscal year 2026-27, driven by rising wholesale costs from the Upper Trinity Regional Water District and higher maintenance expenses. Staff flagged at that time that formal rate options and ordinance language would land in the October-November window. Monday, Oct. 27 was that landing.

The drainage fee is on its own separate track. The current rate sits at $1.80 per 1,000 square feet of impervious cover — roof, driveway, sidewalks. For the average Highland Village home, that works out to about $7.37 a month. Staff has proposed a 40-cent increase, moving the rate to $2.20 per 1,000 square feet, arguing the drainage fund risks a deficit without it. Projections presented earlier this year showed that increase sustaining the fund through 2031 under current assumptions. Some council members had floated a phased approach — smaller annual steps rather than one jump — so the exact shape of any ordinance is still unsettled.

Water and sewer charges are a separate question. Highland Village's utility rate structure runs on two layers: a wholesale pass-through tied to what the city pays the Upper Trinity Regional Water District, and a city-side charge covering local infrastructure. Staff has proposed two options to close the gap — raising base charges, or combining smaller base increases with higher volume charges at certain tiers. Either way, any change to the city-side rate requires a public hearing before council can adopt it.

The DCTA presentation was a distinct agenda item. Highland Village has a long-running and sometimes complicated relationship with the regional transit authority. Residents have pushed for expanded service, including connections to the medical complex area in Flower Mound. A published summary of what the Oct. 27 presentation covered in detail was not yet available at press time. DCTA updates have been a recurring council item throughout the year.

The next regular council meeting is scheduled for Tuesday, Nov. 10. Staff had been expected to bring ordinance language and formal rate proposals during this fall window. Residents who want to weigh in before any vote should plan to attend or watch the livestream. Meeting agendas post at least three business days before each meeting at highlandvillage.org — check there for the Nov. 10 packet once it is up.