FY 25-26 General Fund Budget Discussion; Design Modification to Highland Shores Blvd. Project

At the July 8 meeting, Council began discussing the FY 2025-26 Budget with a staff presentation on year-end projections, the proposed General Fund Budget, and Supplemental Requests. The current fiscal year is expected to end under budget, providing a solid year-end result with an estimated 46% reserve in the fund balance. The proposed FY 2025-26 base budget is projected to have a deficit of just over $1.9 million, resulting in a projected 35% reserve in fund balance. Decreased revenues, including sales tax, coupled with an increase in expenditures, result in a projected 4.8% increase to the base budget. The Council will consider a drawdown on the fund balance. City policy requires the fund balance to remain between 20% and 25%, without dipping below 20%. As the City nears buildout, along with the revenue cap imposed by the State Legislature, the five-year projections have predicted a need to utilize the fund balance. Further budget discussions will take place through July, August and September.

The council discussed two items related to street reconstruction projects funded by the 2022 Bond issuance. A resolution was approved authorizing the publication of a notice of intention to issue Certificates of Obligation in the amount not to exceed $7.4 million for the funding of reconstruction of Highland Village Road from Brazos to the KCS Railroad and the reconstruction of Highland Shores Blvd. from Briarhill Blvd. to Twin Coves. Both projects were included in a Denton County Bond Election, with the County providing a 50% match at $6.46 million.

City Council also received a presentation on the plans for the Highland Shores Blvd. reconstruction, including the proposed roundabout at Hillside Dr. and a "flyover" at Briarhill Blvd. After hearing resident concerns regarding the location of the roundabout, the Council directed staff to remove the roundabout and the flyover and revise the plans, taking into consideration the safety of residents and micro-mobility users on the roadway.

The contract for the 2025 Street Asphalt Overlay and Copperas Branch Park Parking Overlay Project was awarded to Advanced Paving Co. for $277,567.50. The City overlays certain asphalt roadways each year as part of the Pavement Condition Index Program (PCI) to assist in maintaining these roadways and increasing their longevity. City staff targets existing roadways that have shown pavement deterioration and/or pavement failures. City staff identified Craig Circle and Spruce Drive as meeting the criteria for recommended asphalt overlay improvements. The roadways will have new asphalt pavement placed on them, and wedge milling of the edges of the pavement in order to facilitate connection to existing driveways. The project also includes the Copperas Branch Park and marina parking lots in order to assist in maintaining these parking areas and increasing their longevity. Public Works budgets $230,000.00 annually for an asphalt overlay project. The Parks Department budgeted $209,000.00 for an asphalt overlay project. This project is expected to begin in late July or early August.

During the Mayor and Council Reports, Mayor Wilcox recognized the Highland Village Police Department's 50^th anniversary. The Highland Village Police Department was officially created by resolution on July 8, 1975. A new patch and badge design was created in recognition of the 50th anniversary and the department's community policing model. A video was shown commemorating the Highland Village Police Department's 50 years of service to the community.

During the City Manager and Staff Reports, the Experience Highland Village video informed residents of the opportunity to apply for a City Board or Commission. The video highlighted the experiences of current board members and encouraged residents to submit their applications by July 31 for this year's appointments.

The City Council early work session and regular session is available on HVTV (Frontier 43) and via website live streaming at www.highlandvillage.org/hvtv and on the City's YouTube channel at www.youtube.com/highlandvillagetx. The meetings are also available for on-demand viewing on the city website.