West Lake Hills homeowners will pay a little less in city property taxes this year, even as the police department gets a budget bump. The City Council approved the fiscal year 2026-27 municipal budget and tax rate on Sept. 9, setting the average residence's annual city tax bill at $3,918.36.
That figure marks a decrease of more than $40 from the previous year, according to Community Impact Newspaper. The council adopted a no-new-revenue tax rate of $0.174896 per $100 of assessed valuation, down from $0.176783 the year before. With the average appraised residence in West Lake Hills sitting at nearly $2.49 million, even a modest rate cut translates into real savings for homeowners across the small hill country city.
Where the Money Comes From — and Where It's Going
Property taxes remain the backbone of West Lake Hills' finances, expected to contribute more than $6.15 million to the new budget, with taxes overall accounting for 80% of total city revenue, per the same report. The FY 2026-27 budget sets aside $8.95 million for general fund maintenance and operations and another $3.19 million for wastewater maintenance and operations, funding that goes toward city projects, day-to-day operations and other expenditures.
The plan also builds in a projected unrestricted general fund balance of $5 million, a cushion city staff will be watching closely. That matters because the prior year's FY 2025-26 budget, which brought in $8.95 million in city revenues against $9.15 million in expenditures, faced a shortfall of roughly $196,000 without dipping into that same unrestricted fund balance, the outlet reported.
Police Funding Climbs Despite the Tax Cut
Even with property owners catching a break, public safety spending is headed up. The police department is set to receive 38% of general fund maintenance and operation expenditures under the new budget, an allocation that grew by nearly $100,000 compared with the previous year, the report notes.
The budget process began months earlier, with West Lake Hills city staff presenting the preliminary version on July 22, before the council's formal approval in September. Residents can find more information on city finances and operations through the City of West Lake Hills official website.
