The proposed tax rate has remained the same since fiscal year 2018-19.
Highland Village City Council voted to propose the tax rate and schedule the public hearing during its Aug. 10 meeting.
Assistant City Manager Ken Heerman said the city is able to propose a steady tax rate because of the funds the city has from the unused increment rate. An unused increment rate is the difference between the adopted tax rate and the voter-approval rate, according to the state comptroller’s office.
Highland Village’s adopted rate of $0.56302 for the current fiscal year is $0.016 lower than the voter-approval tax rate, which means the city has unused increment rate funds that can be used for the upcoming year, Heerman said.
“For this year, I propose we use [the unused increment rate]—actually, we’ll use half of it—to maintain our current tax rate,” he said.
The city manager will present the proposed budget at the Aug. 24 council meeting. Also on tap on that date are discussions on a capital equipment replacement program and a proposed bond program, according to a staff memo. The recommended budget will be available online Sept. 3. A second reading on the tax rate and budget are set for Sept. 21 followed by a vote that same meeting.
