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West Lake Hills could have a nearly $73,000 surplus in the general fund for the fiscal year 2026-27 budget, yet increases to police and public works funding could eliminate this surplus.
West Lake Hills City Council discussed the new budget at a July 22 council meeting.
The overview
The city’s general fund revenues are expected to be at $10.48 million for the 2026-2027 fiscal year.
These revenues largely consist of taxes, with property taxes remaining the same as the previous year at $4.13 million and sales tax budgeted for $3 million, also the same as the last fiscal year.
Expenses for the city are expected to be at $10.4 million, with the largest general fund expenses in police and public works.
The details
West Lake Hills Mayor James Vaughan recommends that the city pursues a no-net-new-revenue tax rate, he said in an email.
A no-new-revenue tax rate is a calculated property tax rate that generates nearly the same amount of property tax revenue as the previous year, assuming properties taxed in both years are evaluated at the same value, according to the Texas Comptroller.
The property tax rate for the 2025-26 fiscal year in West Lake Hills is $0.176783 per $100 of assessed valuation, according to the city’s website.
“It’s our job to strike the right balance, preserving as much as we can while supporting revenue growth without tax increases of any sort,” Vaughan said in an email.
The tax rate for fiscal year 2026-27 is expected to be $0.174 per $100 of assessed valuation, West Lake Hills Finance Director Vonda Ragsdale said.
Zooming in
Police expenses are expected to cost $3.46 million for fiscal year 2026-27.
The police department has also requested funding for additional items that are not yet included in the FY 2026-27 budget, according to city documents.
These items include additional patrol vehicles, in car radios, in car camera systems and in car radars.
With two added patrol vehicles, these additional requests plus the already budgeted items would amount to $295,512, according to city documents.
“We are once again fully funding the police,” Vaughan said in an email. “In order to successfully enforce our dark skies and tree ordinances we must have 24-hour code enforcement capabilities. Creating those capabilities outside of the police force is simply impossible.”
What's next
Budget discussions for the city will continue at an Aug. 5 budget workshop.
