NorthlakeTown Council previews FY27 budget, creates MDD subcommittee and debates liens for multifamily water accounts
May 28, 2026 | NorthlakeTown Council, Northlake, Denton County, Texas
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The NorthlakeTown Council used its May 28 meeting to review preliminary budget numbers, respond to public comment about tax rates and borrowing, establish the framework for a new Municipal Development District (MDD), and consider changes to utility collection tools for multifamily properties.
In a budget briefing, finance staff reported the town’s investment book value at about $88,000,000—a roughly $11,000,000 (11%) decrease from recent quarters driven by capital spending—and preliminary projections for FY27. "We're expecting an about $922,000 increase in general fund revenues," John said, listing expected increases from property and sales taxes, municipal development district (MDD) proceeds and utility rate adjustments.
Public comment drew attention to taxes and debt. Joel McGregor challenged the council's prior characterization of Northlake having the lowest local tax rate and warned that continued borrowing would pressure the town’s tax rate. The chair responded that comparisons should account for municipal status and average household valuations in neighboring towns.
On governance, staff described the MDD under Texas Local Government Code Chapter 370 and recommended a seven‑member board; council voted unanimously to set the MDD composition at seven members and created a three‑member subcommittee to recruit and interview candidates. The council clarified residency and registration requirements and said the town attorney will serve as legal counsel for the MDD.
Council also began the formal dissolution process for the town’s existing CDC and EDC, with termination set for Sept. 30 and any remaining funds to transfer to the town. Staff told the council there are no known debts or owned real property related to the EDC/CDC.
On utilities, staff proposed an ordinance to revise water and sewer billing rules to permit liens as an enforcement tool for delinquent accounts where disconnection is not practicable—specifically to address multifamily properties. John said the town's current policy avoids disconnecting entire apartment complexes and leaves staff without a final enforcement tool; liens would allow the town to place a claim on property to secure unpaid accounts. The transcript records a motion to approve the ordinance and a second, but it does not record the final vote outcome.
What happens next: staff will continue work on the FY27 budget and return with the proposed budget on July 23; the MDD subcommittee will begin soliciting candidates and holding interviews; staff will provide further detail and a recorded vote if the water lien ordinance is brought back for formal adoption.
In a budget briefing, finance staff reported the town’s investment book value at about $88,000,000—a roughly $11,000,000 (11%) decrease from recent quarters driven by capital spending—and preliminary projections for FY27. "We're expecting an about $922,000 increase in general fund revenues," John said, listing expected increases from property and sales taxes, municipal development district (MDD) proceeds and utility rate adjustments.
Public comment drew attention to taxes and debt. Joel McGregor challenged the council's prior characterization of Northlake having the lowest local tax rate and warned that continued borrowing would pressure the town’s tax rate. The chair responded that comparisons should account for municipal status and average household valuations in neighboring towns.
On governance, staff described the MDD under Texas Local Government Code Chapter 370 and recommended a seven‑member board; council voted unanimously to set the MDD composition at seven members and created a three‑member subcommittee to recruit and interview candidates. The council clarified residency and registration requirements and said the town attorney will serve as legal counsel for the MDD.
Council also began the formal dissolution process for the town’s existing CDC and EDC, with termination set for Sept. 30 and any remaining funds to transfer to the town. Staff told the council there are no known debts or owned real property related to the EDC/CDC.
On utilities, staff proposed an ordinance to revise water and sewer billing rules to permit liens as an enforcement tool for delinquent accounts where disconnection is not practicable—specifically to address multifamily properties. John said the town's current policy avoids disconnecting entire apartment complexes and leaves staff without a final enforcement tool; liens would allow the town to place a claim on property to secure unpaid accounts. The transcript records a motion to approve the ordinance and a second, but it does not record the final vote outcome.
What happens next: staff will continue work on the FY27 budget and return with the proposed budget on July 23; the MDD subcommittee will begin soliciting candidates and holding interviews; staff will provide further detail and a recorded vote if the water lien ordinance is brought back for formal adoption.
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