Highland Village Sets Tax Rate at $0.528541 for FY 2026-27

Your Highland Village property tax bill is going up this fiscal year. The city council voted on Sept. 22, 2026, to finalize the FY 2026-27 budget and set the new tax rate at $0.528541 per $100 of assessed valuation, up from $0.500984.

The math behind that increase is worth knowing. Certified property values across the city dropped 2.8% from the previous year, so even with the higher rate, the new levy adds $377,615 to the General Fund and raises the average Highland Village homeowner's city property tax bill by $105.74 a year. Your actual increase depends on your home's appraised value — a house assessed well above the city average will feel a larger dollar swing.

The General Fund budget totals $25.7 million in operating expenditures, 1.9% less than the FY 2025-26 adopted budget. Spending reductions were built in to limit draws on the fund balance while keeping essential services and competitive employee compensation intact. The city cut before it asked residents to pay more.

The pressure is structural. As Highland Village approaches build-out and faces slower revenue growth and rising costs, the city plans to conduct an Organizational, Workforce and Service Delivery Study in the coming fiscal year to find opportunities for greater efficiency. Sales tax revenue is projected to come in 2.0% below last year's budgeted amount. That gap doesn't bounce back on its own when a city has little undeveloped land left to generate new commercial activity.

Even so, looking out five years, the General Fund reserve is expected to land around 34% — well inside the city's policy band of 20% to 25% on the high side, but comfortably above the floor. That cushion means the city isn't spending down reserves to cover day-to-day operations, even with the shortfall in values and sales tax.

At the Sept. 22, 2026, meeting, council also approved an automatic aid fire agreement with Flower Mound, authorized staff to pursue a grant for an FM 407 shared-use trail, and confirmed multiple board appointments. Most votes were unanimous 7-0.

If you want to see exactly where the $25.7 million goes — public safety, public works, parks, administration — the full budget document is posted at highlandvillage.org.