From the cover
Budgeting for build-out
What’s happening
Current land usage of Highland Village
As Highland Village approaches full build-out, city officials plan to depend more on sales tax revenue and cost-saving measures to manage the budget, City Manager Paul Stevens said. In 2019, the Texas Legislature passed Senate Bill 2, which capped property tax revenues at a 3.5% year-over-year increase, leaving the city unable to raise more than that without a tax rate election, Finance Director Heather Miller said. “Our major decline in [revenue] growth would be related to the property taxes because of that cap and because we’re not adding new property to our roll,” Miller said. Without new homes, the amount of property tax revenue the city can raise is limited due to the cap. Property tax is the biggest contributor to the city’s general fund, according to city documents. The general fund finances the city’s operations and functions as a rainy day fund, Miller said. The city’s near-total build-out reduces the potential for new builds and revenue from new construction and business fees, such as contractor permits and business licenses, Miller said.
Residential Open space, park and schools Commercial Undeveloped
MAP NOT TO SCALE N
35E
HIGHLAND SHORES BLVD.
BRAZOS BLVD.
Overall build-out in Highland Village
Developed: 97% Undeveloped: 3%
Highland Village development fee revenue FY 2018-26
Building permits Plan review and development fees Electrical and mechanical permits
Contractor registration Other fees and licenses
Diving deeper
* Projected
Revenue from new construction and new business permits has dropped from $524,273 in fiscal year 2015-16 to a projected $288,973 for FY 2025-26, according to city finance data. Communications Director Laurie Mullens added that past city officials developed the city’s commercial revenue in anticipation of build-out. With that in mind, The Shops at Highland Village opened in 2008, which boosted sales tax revenue, city data shows.
$19.2K
$177.3K $84.6K $57.6K $58.8K $24.4K
$172K $86.4K $57.3K $61.8K $16.4K
$59K $72K
$21K
$176.5K $79.3K $43.9K $45.4K $18.6K
$130.5K $60.1K $57.2K $51.3K $18.2K
$121.7K $83.2K $51.9K $48.1K $12.2K
$15.3K
$174.2K $81.2K $44.2K $51.6K
$114.2K $47.6K $53.9K $56.2K $15.4K
$241.5K $74.2K
$139.4K $48.6K $51.8K $56.2K
2020-21
2021-22
2019-20
2022-23
2024-25
2017-18
2025-26*
2023-24
2018-19
SOURCE: CITY OF HIGHLAND VILLAGE/COMMUNITY IMPACT
INJURYEXPERT.COM STEVE KUZMICH
BOARD CERTIFIED BY THE TEXAS BOARD OF LEGAL SPECIALIZATION IN PERSONAL INJURY TRIAL LAW
Practice limited to life-changing injury and wrongful death claims Representing Clients Across the State of Texas
30 YEARS IN DENTON COUNTY
972-221-5595
4315 Windsor Centre Trail, Ste 200 Flower Mound, Texas 75028
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