The city of Highland Village received an unmodified opinion, the highest possible rating in the annual comprehensive financial report for fiscal year 2024-25, according to an audit from accounting firm Pattillo, Brown & Hill at a March 24 City Council meeting.
Zooming in
The audit showed the city’s unassigned general fund balance, which is uncommitted money the city can use at its discretion, dropped by roughly $700,000, from $9.3 million in FY 2023-24 to about $8.6 million in FY 2024-25.
City policy dictates that the fund balance cover at least 20% of annual general fund expenditures. The $8.6 million fund balance covers about 36% of the city’s $23.6 million in general fund expenditures, surpassing the requirement, according to the audit.
Expenditures increased by about $800,000 over FY 2023-24, partially driven by city staff raises, road improvement projects and city facilities renovations.
By the numbers
The city’s general fund expenditures include:
- $1,514,299 for maintenance
- $1,508,166 for the finance department
- $1,320,282 for information services
- $614,007 for the city manager’s office
- $540,100 for human resources
- $505,865 for marketing and communications
- $375,841 for the city secretary’s office
The city’s revenue sources that contributed to the general fund were:
- $19,584,953 in taxes
- $859,049 from service charges
- $690,292 from licenses, permits and fees
- $661,178 from investment earnings
- $145,105 in miscellaneous revenue, such as incentives from the city’s health insurance provider
- $135,764 in fines and forfeitures
- $24,864 from intergovernmental revenue
Looking ahead
The FY 2025-26 budget shows the fund balance will cover 37% of expenditures for that fiscal year. General fund expenditures will also rise to about $26.2 million for FY 2025-26.
