The Highland Village City Council approved the first reading of an ordinance setting the property tax rate for fiscal year 2021-22 at $0.56302 per $100 valuation.

Council elected to keep the tax rate the same as the current year. But because of an overall increase in property values, the city expects to collect more revenue next year even though the rate is unchanged. That rate is effectively an increase of 4.5%, according to city documents.

The council also approved the first reading of its fiscal year 2021 general fund budget of nearly $20.6 million.

The council will vote again after the second readings for these ordinances on Sept. 21.