Village of the Hills Residents celebrated 20 years Nov. 5 as an independent municipality. The village is all but surrounded by the city of Lakeway.

Census numbers from 2016 show the Village of The Hills is the largest village in Texas with a population topping, 2,500 and the is state’s 13th most affluent village.

“We are most proud of our ability to have evolved and to be contemporary as our community demographics have changed over the years,” Mayor Eric Ovlen said. “Much of this is due to the cooperation and shared services of the Hurst Creek Municipal Utility District, The Hills Property Owners’ Association and the Village Board of Aldermen.

The Village of The Hills is one of a very few communities in Texas where residents live under such a unique, layered political structure. An elected six-member council guides a small staff including a city manager who oversees the village’s $750,000 budget.

Those funds are used for items such as public safety; park improvements; maintenance of trails, common areas and the perimeter fence; trash collection; and emergency preparedness.

The MUD looks after water, sewage, irrigation and drainage. The POA is responsible for security and entry gates, architectural review, street paving and repairs, and deed restriction enforcement, city documents showed.

The Hills contracts with the Travis County Sheriff’s Office for policing services, which augment a private security gate service, city officials said.

The village’s only commercial revenue source is the Hills Country Club. Sales tax is set at 3⁄4 of a cent.

The Hills is just over one square mile in area. In November 1996 the ETJ community was transferred from Austin to the city of Lakeway, whose leaders consented to an incorporation election for The Hills.

“Given the regional growth over the past 20 years, we look forward to being participants in addressing mutual area issues with our surrounding communities,” Ovlen said.