HomeMy WebLinkAboutResolution 25-08 Approving Town of Westlake Strategic Plan 2025-2032Resolution 25-08
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TOWN OF WESTLAKE
RESOLUTION NO. 25-08
A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF WESTLAKE,
TEXAS, APPROVING AND ADOPTING THE TOWN OF WESTLAKE, TEXAS
STRATEGIC PLAN 2025-2032.
WHEREAS, the Town Council of the Town of Westlake has determined that effective
governance of the Town of Westlake requires a focused effort best provided by a comprehensive
strategic plan; and,
WHEREAS, the Town of Westlake, in collaboration with Baker Tilly Advisory Group,
has developed a strategic plan to guide the community’s growth and sustainability over the next
five years; and,
WHEREAS, the Town Council finds that the passage of this Resolution is in the best
interest of the citizens of Westlake.
NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN
OF WESTLAKE, TEXAS:
SECTION 1: That all matters stated in the Recitals hereinabove are found to be true and
correct and are incorporated herein by reference as if copied in their entirety.
SECTION 2: That the Town Council of the Town of Westlake, Texas approves and
adopts the attached Town of Westlake, Texas Strategic Plan 2025-2032, attached hereto as
Exhibit “A”.
SECTION 3: If any portion of this Resolution shall, for any reason, be declared invalid
by any court of competent jurisdiction, such invalidity shall not affect the remaining provisions
hereof and the Council hereby determines that it would have adopted this Resolution without the
invalid provision.
SECTION 4: That this Resolution shall become effective from and after its date of
passage.
Resolution 25-08
Page 22
PASSED AND APPROVED ON THIS 18TH DAY OF FEBRUARY, 2025.
___________________________________
Kim Greaves, Mayor
ATTEST:
________________________________
Dianna Buchanan, Town Secretary
APPROVED AS TO FORM:
________________________________
L. Stanton Lowry, Town Attorney
City of Westlake
Town of Westlake, Texas
2025-2032
Strategic Plan
Prepared for the Town of Westlake by
Letter from the Mayor Greaves
Executive Summary
About the Strategic Plan
Strategic Plan 2025 - 2032 Framework
Vision
Mission
Values
Priorities
Goals and Strategies
Future of Westlake
Table of Contents
2
4
5
8
9
10
11
12
13
24
Page 1 | Town of Westlake Strategic Plan 2025 - 2032
Our strategic plan ensures that Westlake remains a thriving and inclusive place to call
home. One that will continually preserve its unique charm and natural beauty, promote a
vibrant community and cultivate partnerships with residents and corporate
stakeholders.
This plan sets forth a vision for organizational stability at Town Hall and continued
excellence at Westlake Academy, and focuses our efforts on financial sustainability,
managed development and growth, enhanced community safety, and robust public
engagement.
We are dedicated to implementing this plan, using it as a guide that serves the public
interest and strengthens trust in our leadership. The plan will empower our staff to take
proactive steps to enhance Westlake's vibrancy, support our residents and businesses,
and ensure a sustainable future for all.
Your involvement is crucial to the success of this plan. I want to express my gratitude to
those of you who took the time to participate in our numerous public engagement
efforts. Together, we will continue collaborative efforts to realize the full potential of the
Town and Westlake Academy as we build a community that we can all be proud of.
Thank you for your continued support as we work together toward a brighter future for
Westlake.
- Mr. Kim Greaves, Mayor Town of Westlake
Letter from Mayor Greaves
Dear Westlake Residents, Academy Parents,
Corporate Partners, and Stakeholders,
As Mayor of the Town of Westlake, I am honored to
present our latest strategic plan on behalf of the Town
Council / Board of Trustees. This document represents
our unwavering commitment to the core values of
integrity, accountability, innovation, openness, and
strategic thinking while charting a clear path for
Westlake’s growth and development over the next
seven years – 2025 to 2032.
Page 2 | Town of Westlake Strategic Plan 2025 - 2032
Dr. Anna White
Councilmember, Place 1
Mr. Todd Gautier
Councilmember, Place 3
Mr. Michael Yackira
Councilmember, Place 2
Mrs. Tammy Reeves
Mayor Pro Tem, Place 4
Mr. Mike Asselta
Councilmember, Place 5
Your Westlake
Town Council
Page 3 | Town of Westlake Strategic Plan 2025 - 2032
1
The Town of Westlake, in collaboration with Baker Tilly Advisory Group, has developed a strategic plan to
guide the community’s growth and sustainability over the next seven years. This plan builds on
Westlake’s tradition of strategic, inclusive, and forward-thinking planning, exemplified by the current
comprehensive land use plan (2015), and contributes to the Town’s vision, mission, goals, and priorities
through active public engagement. Workshops and sessions with residents, business owners, and
stakeholders were fundamental in identifying critical areas of focus such as economic development,
infrastructure, and long-term financial stability.
Central to Westlake’s strategic achievements and overall desirability is the Westlake Academy,
established in 2003. This municipally-owned public charter school was founded out of a desire by the
Westlake Town Council to offer a high-quality, globally recognized International Baccalaureate (IB)
curriculum for residents of the Town and surrounding communities. The Academy serves as a model of
educational innovation and reflects Westlake’s commitment to academic excellence.
The Town’s current financial position reflects the effective management of resources and capital
investments. By maintaining general fund reserves through prudent fiscal oversight and leveraging one-
time revenue sources from development fees, Westlake has managed to sustain an annual surplus
averaging $2.6 million. However, when accounting for unfunded capital projects, projections indicate a
growing fiscal gap of $4.4 million annually, expanding to $8 million by FY 2035 without including current
or future known development revenue. Without corrective action, the projected gap will deplete reserves
by 2035. This looming challenge emphasizes the need for comprehensive financial strategies to secure
Westlake’s long-term fiscal health. With additional changes over time, Westlake can build on its already
solid foundation and exceed its current achievements.
Executive Summary
Economic development is integral to addressing these
financial concerns. Westlake’s unique position,
characterized by rural charm, high-value real estate, and
strategic corporate campuses, presents substantial
opportunities for future growth. As the Town considers
future land use and development, it must balance
economic ambitions and the need for increased revenue
with preserving its distinctive character, all while
considering growth that is strategically located and of
high quality.
Sustainable economic growth will not only support
property tax and sales tax revenue but will also require
deliberate efforts to attract a diverse and robust mix of
businesses.
Together, these strategic initiatives position the Town of
Westlake to navigate future growth with confidence and
sustainability, ensuring that it remains a vibrant and
distinctive community for generations.
Page 4 | Town of Westlake Strategic Plan 2025 - 2032
About Strategic Plan
2025-2032
The Town of Westlake's process for updating its vision and goals to guide decision
making and resource allocation is built upon three foundational pillars:
1. A Fiscal Model and Financial Sustainability Plan,
2. An Economic Development Plan, and
3. A Strategic Plan.
The Fiscal Model and Sustainability Plan and the Economic Development Plan
have been delivered to the Town of Westlake as separate reports entirely
accessible on the Town’s website.
From August to December 2024, Baker Tilly engaged in extensive research and
analysis in preparing and updating Westlake’s vision, mission, values, goals,
priorities and success indicators. This work included interviews with members of
the Westlake Town Council, the Town management team, and the Westlake
Academy head of school and leadership team. In addition to these interviews, two
surveys were deployed to the employees of the Town of Westlake, and another to
community residents, Academy parents and business stakeholders. Six on-site and
two virtual community input sessions and workshops were also held.
The data gathered from the interviews, surveys, and public input sessions allowed
Baker Tilly to generate key themes and analysis to identify the Town’s strengths,
weaknesses, opportunities, and threats/challenges (SWOC). The SWOC analysis
informed the development of updated vision and mission statements, a refined set
of organizational values, and strategic goals.
Page 5 | Town of Westlake Strategic Plan 2025 - 2032
1. Fiscal Model and Financial Sustainability Plan: These components were
completed to inform the Council’s identification of fiscal opportunities; and the
model serves as a tool for assessing funding and resource projections, ensuring
that decisions and strategic priorities are grounded in the realities of current and
future available resources.
2. Economic Development Plan: This forward-focused strategy complements and
incorporates findings included in the Financial Sustainability Plan, providing
insights into potential future resources derived from an economic development
strategy.
3. Strategic Plan: This document integrates the findings from the Fiscal Model
and the Economic Development Plan, tying everything together into a cohesive
strategy.
About Strategic Plan
2025-2032
Alignment between the three strategic planning components is crucial to provide
Town leaders with a comprehensive assessment to make informed decisions in
the upcoming years, particularly to guide the preparation of the Town’s Fiscal
Year 2025-2026 budget process and beyond. To achieve this, the three
components were developed simultaneously on parallel tracks:
Page 6 | Town of Westlake Strategic Plan 2025 - 2032
The uniqueness of Westlake's approach lies in its comprehensive and integrated
method. As standalone documents, the Fiscal Model and Economic Development
Plan provide detailed assessments of the Town's financial health and growth
potential.
However, when combined, these documents offer a holistic view that highlights
current economic conditions and projects future trends and opportunities. This
integration ensured the development of strategic priorities that are well-informed,
sustainable, and aligned with immediate and long-term goals.
About Strategic Plan
2025-2032
Page 7 | Town of Westlake Strategic Plan 2025 - 2032
Strategic Plan 2025-2032
Framework
Vision Mission Organizational
Values Priorities Goals and
Strategies
Page 8 | Town of Westlake Strategic Plan 2025 - 2032
Vision
Westlake will preserve its unique
charm and natural beauty, promoting
a vibrant community, cultivating
strategic partnerships with residents
and corporate stakeholders.
Our vision within a strategic plan is a clear and aspirational
statement that outlines the desired future state or long-term goals of
an organization. It serves as a guiding star, providing direction and
inspiration for all strategic initiatives.
The Westlake vision statement guides the Town’s future direction,
ensuring that growth and development are aligned with our core
values and community aspirations. Westlake’s Vision:
Page 9 | Town of Westlake Strategic Plan 2025 - 2032
Mission
Our mission statement is a concise declaration of an organization's
core purpose and focus that remains unchanged over time. It defines
the organization's reason for existence and provides a framework for
its strategic planning.
Unlike a vision statement, which outlines long-term aspirations, a
mission statement focuses on the present and defines the town's
purpose and primary objectives.
Westlake provides a superior quality
of life through excellent municipal
service delivery and world-class
education.
Our mission underscores Westlake's dedication to ensuring that the
community enjoys top-notch services and educational opportunities for
its residents. Westlake’s mission:
Page 10 | Town of Westlake Strategic Plan 2025 - 2032
Organizational Values
Organizational values are the fundamental beliefs and guiding
principles that shape an organization's culture, behavior, and decision-
making processes. They define what the organization stands for and
influence how it interacts with stakeholders.
Our values of accountability, integrity, innovation, openness, and
strategic thinking collectively support Westlake's mission of providing
superior municipal services and education, and its vision of preserving
charm and fostering community. Westlake’s Organizational Values:
Accountability
Taking responsibility for actions and outcomes, ensuring that the
Town's services meet the highest standards.
Integrity
Upholding the highest ethical standards in all actions and decisions,
ensuring trust and transparency within the community.
Innovation
Encouraging creative solutions and continuous improvement in service
delivery and community development.
Openness
Promoting transparency and proactive communication with
residents, partners and stakeholders.
Strategic Thinking
Planning and acting with a long-term perspective to achieve
sustainable growth and development.
Page 11 | Town of Westlake Strategic Plan 2025 - 2032
Strategic Priorities
A. Financial Sustainability
B. Westlake Academy
C. Development and Economic Growth
D. Infrastructure Investment
E. Communication – Resident/Stakeholder Engagement
F. Public Safety
To build a thriving and resilient community, Westlake has identified six key
priorities to guide our efforts and use of resources. The priorities are designed to
promote sustainable growth, improve quality of life, and strengthen the Town’s
organizational foundation to attain a strong financial position, world-class
education system and quality development over the next seven years. Each
priority plays a vital role in achieving our vision for the future:
Page 12 | Town of Westlake Strategic Plan 2025 - 2032
Priority A. Financial Sustainability
Description: Ensure a strong financial outlook through careful planning and
sustainable service levels to meet Westlake’s current and future needs.
Goals and Strategies
The following tables describe the priorities in more detail, including the goals
needed for achieving the respective priority, the key outcome, or key performance
indicator for measuring the success of the goal, as well as individual strategies
for achieving each goal. When considering the vision, mission, and organizational
values, these priorities and the sub-parts make up the Town of Westlake’s
strategic framework for guiding decisions in the coming three years.
Goals Strategies
1. Maintain minimum
general fund reserves
at or above minimum
reserve policy
throughout life of the
long-range financial
forecast
a) Review Town minimum reserve and use of reserves policies
annually
b) Establish a use of reserves policy that identifies Council
approved uses of reserves
c) Update the Town’s long-range financial forecast annually using
proposed budget as the baseline budget in the forecast
2. Establish maximum
annual financial
support levels for
Westlake Academy
a) Review Academy minimum reserve policies annually
b) Establish a maximum annual financial support policy from the
Town’s General Fund expressed as dollar amount and/or as a
percentage of Academy annual operating costs. Municipal funding
amounts could be influenced by revenue gained from state funding
and donations each year, with a goal of decreasing the dollar
value equivalent to not greater than $1 million per year starting in
FY 2026-27.
c) Update the Academy’s long-range financial forecast annually
using proposed budget as the baseline budget in the forecast
Page 13 | Town of Westlake Strategic Plan 2025 - 2032
Priority A. Financial Sustainability
Goals Strategies
3. Create priority-based
budget every other
fiscal year
a) Assess community priorities that inform an update to the
adopted strategic plan priorities
b) Update the Town and Academy strategic plan to inform fiscal
and program priorities
c) Develop proposed biennial budgets for each of the Town and
Academy departmental/programs reflective of updated strategic
plan priorities
d) Evaluate cost-efficient alternatives to existing service delivery
methods for highest-priority services
e) Update long-range financial forecast to determine
revenue/resource availability to fund programs
f) Determine if resource availability requires changes/reductions to
existing programs using priority levels
4. Develop a
compensation policy
a) Develop a compensation policy to include benefits that are
approved by the Town Council and Board of Trustees and used by
the Town and Academy in preparing annual budgets
b) Create a list of agreed upon comparison municipalities and
school districts/private/and charter schools
c) Develop a compensation policy to include desired percentile and
“band of competitiveness” targets of the comparison
municipalities and school districts etc.
d) Reevaluate the desired compensation, benefits package every
three years with cost of living raises throughout the package as
needed to stay in the desirable range of pay for all positions
Page 14 | Town of Westlake Strategic Plan 2025 - 2032
Page 15 | Town of Westlake Strategic Plan 2025 - 2032
Priority A. Financial Sustainability
Goals Strategies
5. Reduce spending based
on the Council adopted
fiscal model
a) Use priority-based approach to reduce Town annual General
Fund expenditures by 3%
b) Decrease Westlake Academy's annual General Fund
expenditure by $500K
c) Evaluate a minimum of two Town Departments a year for cost-
efficiency opportunities
6. Increase Town revenues
a) Identify opportunities for increased revenues
b) Increase the Town’s revenues, outside of ad valorem taxes, by
5% over the next two years
c) Increase the Blacksmith funding from the Westlake Academy
Foundation by 25% over the next two years
Priority B. Westlake Academy
Description: Provide a world-class education for college-bound students to
achieve their highest potential.
Goals Strategies
Financial Sustainability
1. Create a plan to
increase Westlake
Academy revenue and
donations
a) Collaborate with the Westlake Academy Foundation to establish
goals and priorities
b) Identify revenue options and alternatives (e.g., assess the need
to add additional classes by grade, add private class offerings, etc.)
c) Evaluate options with the Board of Trustees
d) Prepare the plan for adoption
e) Develop an action plan to address immediate priorities
2. Improve operational
effectiveness at the
Academy
a) Assess Academy operations for academic, administrative and
facilities management departments, divisions and programs
b) Identify waste and redundancy
c) Prioritize improvements and actions
d) Track and monitor resource expenditures
e) Report outcomes to the Town Council/Board of Trustees
Educational Programming
3. Work with local and
state legislators to
prioritize equitable
charter school funding
a) Develop informational materials
b) Engage partners and parents
c) Schedule and meet with local and state legislators
d) Identify next steps after initial meetings
Page 16 | Town of Westlake Strategic Plan 2025 - 2032
Priority B. Westlake Academy
Goals Strategies
4. Prioritize the
International
Baccalaureate
education model
a) Annually review curriculum offerings
b) Identify curriculum options for students with proficiencies
unrelated to STEM
5. Assess and improve
instructional methods
across the campus
a) Assess faculty performance and use of supplemental curriculum
b) Identify gaps and develop improvement plans
Campus Facilities
6. Identify capital
improvements and
facilities for expanded
programming
a) Develop a campus facilities master plan
b) Prioritize facilities improvements and identify funding sources
c) Align campus facilities with the Town
7. Create a
maintenance and
improvement plan for
campus facilities and
grounds
a) Conduct an assessment of campus facilities
b) Identify priority improvements based on programming and need
c) Present to Town Council/Board of Trustees for adoption
d) Prepare annual maintenance and improvement work plan for
facilities and grounds
Page 17 | Town of Westlake Strategic Plan 2025 - 2032
Goals Strategies
1. Update the
Comprehensive
Plan
a) Prepare work plan for updating the Comprehensive Plan
b) Conduct public engagement
c) Identify draft land use and development vision and goals
d) Prepare draft Comprehensive Plan
e) Review draft plan with the Town Council
f) Adopt plan and initiate implementation
2. Create a
mixed-use zoning
district
a) Prepare objectives and strategies within a work plan to develop the
new zoning chapter
b) Work with Council and Town stakeholders to identify options for
mixed used development based on building form and placemaking
for a town center
c) Draft zoning options for mixed-use development and identify text and
map recommendations
d) Schedule public hearing with the Town Council to discuss options
and recommendations
3. Create an
economic
development
incentive policy
a) Review current economic development incentives
b) Assess economic development incentives used in competitor
jurisdictions
c) Develop draft criteria for economic development incentives and
criteria
4. Develop a
retail
development
strategy
a) Develop a request for proposals for a retail strategist
b) Identify current and projected retail demand and gaps for the
Westlake trade area
c) Develop a targeted approach for priority service providers
Priority C. Development and Economic Growth
Description: Pursue intentional economic development initiatives that
attract, retain, and expand businesses, promote job creation and deliver a
diversified tax base.
Page 18 | Town of Westlake Strategic Plan 2025 - 2032
Priority C. Development and Economic Growth
Goals Strategies
5. Complete
quarterly
business check-
ins
a) Schedule business check-ins
b) Develop to-dos and next steps
c) Prepare quarterly progress reports
6. Update the
land use and
development
process
a) Assess current land use and development regulations and processes
b) Map current workflow for processing applications and development
plans and cycle times
c) Identify process improvements
Page 19 | Town of Westlake Strategic Plan 2025 - 2032
Priority D. Infrastructure Investment
Description: Maintain, replace, and expand Westlake’s capital assets for
community development and growth.
Goals Strategies
1.Complete a water
systems engineering
review
a) Engage internal and professional engineers to review the
current Westlake water system infrastructure
b) Submit recommendations for maintenance or replacement of
infrastructure for Council consideration
c) Replace equipment, vehicles, technology, and personnel
resources to align with water systems engineering review
2. Prepare a
comprehensive
infrastructure
assessment with
recommendations for
improvement
a) Create maintenance programs for the water system,
wastewater system, storm drain system, roadways, parks, and
pathways
b) Specify a minimum number of annual inspections and criteria for
completing capital improvement recommendations for all Town
and Academy infrastructure and facilities
3. Create future water
infrastructure
expansion plans
a) Create a plan for future expansion of the water system to
facilitate future development and increase redundancy in the
current system
b) Complete and routinely update the water model
c) Make recommendations for future water system improvements
d) Add agreed upon improvements to the capital improvement
plan
4. Invest in Westlake
Academy
infrastructure
expansions
a) Initiate a capital funding campaign through the Foundation for a
future Westlake Academy performance hall
b) Obtain external funding equivalent to at least 50% of necessary
funding from external sources
Page 20 | Town of Westlake Strategic Plan 2025 - 2032
Priority E. Communication – Resident and
Stakeholder Engagement
Description: Provide meaningful and consistent communication to keep
residents, partners, and stakeholders informed and engaged.
Goals Strategies
1. Develop Council
communication
priorities and
strategy
a) Capitalize on the priorities laid out by Council, including creating
specific communication pieces for the strategic plan priority areas
b) Tailor these messages to residents, parents, corporate partners,
and stakeholders, but have specific angles on how each group is
impacted and involved in each priority
2. Create
communications that
focus on retention
and recruitment of
personnel, residents,
businesses, and other
stakeholders
a) Create communications that focus on retention/recruitment for
Westlake Academy parents
b) Create communications that focus on retention/recruitment for
Westlake Academy staff
c) Create communications to keep residents engaged in Town
activities
d) Create communications that focus on corporate partner
retention and recruitment
3. Host town hall
meetings and forums
a) Hold town hall meetings and forums, including:
Neighborhood meetings with residents, staff, and Council
to discuss important issues facing the community
Gatherings with Westlake Academy administrators and
parents to discuss issues facing the school
b) Hold homeowner’s associations (HOA) meetings with Town of
Westlake representatives
4. Establish Town
Council/Board of
Trustees ambassadors
a) Ensure residents and stakeholders are informed about what is
happening at Westlake Academy and around Town to serve as de
facto communications team members
b) Promote the use of “spread the word” community events using
multi-communications channels
Page 21 | Town of Westlake Strategic Plan 2025 - 2032
Priority E. Communication - Resident and Stakeholder Engagement
Goals Strategies
5. Establish the
“Westlake Together”
initiative
a) Promote key aspects of the Town, Westlake Academy, and
corporate partners as one collective
b) Ensure communication promotes alignment of the Town,
Academy, and corporate partners, residents, etc., rather than
separate features
c) Create a “Westlake Together” campaign that highlights what
makes the Town special
d) Execute communications campaign for “moving past the guard
gates” to show a united Westlake community
Page 22 | Town of Westlake Strategic Plan 2025 - 2032
Goals Strategies
1. Ensure fire response
capabilities align with
the established
standards
a) Track response times by service type
b) Assess response times
b) Implement improvements to operational readiness and
effectiveness
2. Strengthen
Firefighter and
emergency medical
service training
a) Increase hands-on skills training annually for each firefighter
b) Complete task books for new firefighters, step-up
Driver/Engineers, and step-up Captains
c) Conduct quarterly simulation exercises for the National Fire
Protection Agency (NFP) 1410 evolutions
3. Enhance emergency
management
education, tools and
resources
a) Develop a robust emergency management education program
to prepare personnel, community stakeholders, and residents for
effective disaster response and recovery
b) Align educational content with Federal Emergency
Management Agency (FEMA) guidelines, National Incident
Management System (NIMS) protocols, and industry best
practices
c) Offer courses through multiple platforms, including in-person
workshops, virtual classes, and self-paced online modules
4. Ensure efficient
court operations
through the effective
use of technology
a) Identify best practices among regional court operations and
technology applications
b) Research and recommend friendly online payment systems for
courts
5. Ensure exceptional
customer service by
competent, skilled, and
knowledgeable staff
a) Cross train personnel in municipal court functions
b) Fund training of municipal court employees to improve court
knowledge and promote customer service efficiency
Priority F. Public Safety
Description: Ensure a safe community through excellence in the delivery of
fire, emergency management services, court, and police services.
Page 23 | Town of Westlake Strategic Plan 2025 - 2032
The Strategic Plan will guide our community’s growth and sustainability over the next seven
years, building on our established tradition of inclusive and forward-thinking planning. This
plan is informed by active public engagement and reflects our commitment to strategic
development.
Central to our achievements is Westlake Academy, a testament to our ongoing dedication
to educational excellence and innovation. Serving both local and broader communities, the
Academy exemplifies our commitment to fostering positive changes and continuous
improvement in our services and operations.
The strong tradition of strategic planning in Westlake is led by the Town Council and
implemented by a dedicated team led by the Town Manager and comprised of the Westlake
Academy, department heads, and staff. This Strategic Plan outlines the changes we aim to
achieve and serves as a roadmap to the future, helping us to plan and adapt to financial
and economic development challenges and opportunities using a refined approach. We will
work from an Implementation Action Plan and department work plans, providing regular
updates to the Town Council about key performance indicators and the use of resources. An
annual review will be conducted at the beginning of the budget process each year to
reaffirm our strategic priorities and goals that will drive decisions about resource allocation.
With this plan, the Town Council, leadership, and staff have been intentional about creating
a document that truly connects the work of our offices and departments with overarching
goals, initiatives, and strategies. This Strategic Plan does not shy away from the
complexities of our shared community challenges. It embraces collaboration, connecting the
work of multiple departments through a series of overarching strategies.
Future of Westlake
Page 24 | Town of Westlake Strategic Plan 2025 - 2032
Future of Westlake
This 2025 to 2032 Strategic Plan is a dynamic guide for our organization and will serve as a
framework for future conversations and decisions about how Westlake can continue to
improve
service delivery and prepare for whatever the future holds. We look forward to continuing to
serve you and the community, and to work with you to address the challenges and
opportunities ahead. We would like to extend our sincere gratitude to our residents for their
invaluable contributions to the development of the Strategic Plan. Your participation in
surveys, attendance at focus group meetings, and investment of time and effort have been
pivotal in shaping our strategies and vision. We also thank our dedicated leaders and
community partners for their support and collaboration. Your efforts in providing guidance,
resources, and expertise have been crucial in the successful formation of this plan. Our
commitment remains steadfast in meeting your needs while delivering exceptional,
responsive, and sustainable services.
We deeply appreciate all individuals who participated in surveys, attended focus group
meetings, and invested their time and effort into shaping our strategy and vision in
collaboration with our planning consultants. Your insights and dedication have been pivotal
in the creation of this plan. We especially would like to thank our Town Manager, Town
department heads and executives, Westlake Academy leaders, various Town and all other
key personnel, community members and community partners. We would like to
acknowledge our outstanding staff, whose dedication to serving the Westlake community is
truly commendable. Your daily efforts in delivering high-quality services are the foundation
of our success, and we are grateful for your continued service.
Page 25 | Town of Westlake Strategic Plan 2025 - 2032
Future of Westlake
Town of Westlake
Fiscal Model and Fiscal Sustainability Planning
FINAL REPORT
October 2024
October 31, 2024
Mr. Wade Carroll
Town Manager
Town of Westlake
1500 Solana Blvd., Building 7
Westlake, TX 76262
Dear Mr. Carroll:
Baker Tilly is pleased to transmit our report that summarizes the Town’s baseline financial forecast (fiscal
model) and our analysis of ways to address future fiscal gaps to the extent that ongoing operating budget
deficits or increased infrastructure investment indicate the need for budget strategies to maintain an
appropriate level of reserves.
The initial baseline estimates indicate projected budget surpluses for the Town’s General Fund, even
when considering the ongoing subsidy required to fund the Town Academy. However, underfunded and
unfunded capital improvement projects currently not within the Town’s existing budgets will reduce those
surpluses significantly and may lead to ongoing structural budget deficits without strategies to address
those deficits.
In this report, we summarize the outcome of the baseline fiscal model based on the Town’s adopted
FY 2025 budget, which includes a separate fiscal model for the Town Academy that informs the Town’s
ongoing subsidy requirements.
Sincerely,
Carol Jacobs
Managing Director
Town of Westlake
Fiscal Model and Fiscal Sustainability Planning
FINAL REPORT
Table of Contents
i
Table of Contents
Executive Summary .................................................................................................................................... 3
Fiscal Model ................................................................................................................................................. 5
Baseline Budget .................................................................................................................................. 5
Fund Balance/Reserve Policies .......................................................................................................... 5
Key Assumptions Used in Baseline Forecast ..................................................................................... 6
Baseline Financial Forecast ................................................................................................................ 8
Impact of Underfunded/Unfunded Capital Needs ............................................................................. 11
Revised Financial Forecast ............................................................................................................... 11
Fiscal Sustainability Plan ......................................................................................................................... 14
Overview of Fiscal Sustainability Planning ........................................................................................ 14
Types of Budget Strategies ....................................................................................................... 14
Determining Budget Strategy Feasibility ................................................................................... 14
Budget Strategy Scenario Packages ........................................................................................ 15
Fiscal Sustainability Implementation Action Plan...................................................................... 15
Baker Tilly’s Assignment ................................................................................................................... 15
Budget Strategies .............................................................................................................................. 15
Expenditure Controls and Cost Shifts ....................................................................................... 16
Service Delivery Alternatives .................................................................................................... 16
Revenue Enhancements ........................................................................................................... 17
Service-Level Reductions ......................................................................................................... 19
Conclusion ................................................................................................................................................. 20
Town of Westlake
Fiscal Model and Fiscal Sustainability Planning
FINAL REPORT
Table of Contents
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Tables
Table 1. Key Assumptions Use in Town Baseline Forecast for FY 2025-2035 ................................ 7
Table 2. Key Assumptions Use in Academy Baseline Forecast for FY 2025-2035 ......................... 7
Figures
Figure 1. Key Factors Upon Which General Fund Reserve Policies are Based................................ 6
Figure 2. Westlake Academy Projected Revenues and Expenditures (Excludes Town Subsidy) .. 9
Figure 3. Town Subsidy of Westlake Academy’s Annual Operating Budget .................................... 9
Figure 4. Town of Westlake General Fund Long-Range Baseline Forecast –
Projected Reserves ............................................................................................................... 10
Figure 5. Town of Westlake Long-Range Baseline Forecast –
Projected Annual Surplus (Deficit) ...................................................................................... 11
Figure 6. Town of Westlake General Fund Long-Range Revised Forecast –
Projected Reserves ............................................................................................................... 12
Figure 7. Town of Westlake Long-Range Revised Forecast –
Projected Annual Surplus (Deficit) ...................................................................................... 13
Figure 8. Budget Strategy Scenario Packages ................................................................................... 15
Town of Westlake
Fiscal Model and Fiscal Sustainability Planning
FINAL REPORT
Executive Summary
3
Executive Summary
The Town of Westlake engaged Baker Tilly to develop a baseline financial forecast (“fiscal model”) for the
Town’s use that is primarily focused on the General Fund. The baseline fiscal model is used to help tell
the story about the Town’s financial health and provide insights for Town councilmembers and staff to
make informed policy decisions and their impacts on the Town’s long-term financial resources. Based on
the outcomes of this financial forecast, the Town then asked us to provide a set of budget strategies that
would form the basis of a fiscal sustainability plan to address any current or future gaps that may exist in
the Town’s General Fund. This report provides our analysis of the outcomes of the fiscal model and
budget strategies we believe the Town could explore in the future to ensure that reserves stay at or near
our recommended General Fund reserve goal of 33% of annual operating expenditures to provide long-
term solvency and financial sustainability to the Town.
The Town is in a state of development. It has an incorporated area of nearly 7 square miles and a current
population estimated at less than 2,000. Existing development to date has focused on a blend of
commercial office campuses and office developments with limited retail and residential development
focused primarily on single homes within larger planned developments governed by homeowners’
associations (HOAs). The historically significant development activity has led to one-time revenue
sources in the form of planning and building permit fees that have contributed to the Town’s General
Fund reserves.
The Town is less than 40% built out in terms of population, with a significant amount of undeveloped land
currently held by two primary landowners – one private developer that focuses on commercial and
residential construction, and a private trust that owns prior farmland that has the potential for
development of residential and commercial properties. While the Town can determine land use
designations and acceptable development, future development will primarily be driven by these two
landowners/developers. These will generate new, ongoing General Fund revenue sources in the form of
property taxes and sales taxes, the volume of which will depend on the mix of retail and sales-taxable
uses. However, new revenue sources will be offset by increased staffing needs to serve the growing
daytime and residential population.
The Town is unique in that while being a relatively small community, it provides a full slate of services
either through Town staff or through contracted services, the latter of which includes police services
provided by the City of Keller. The Town currently has no significant municipal-owned parks and
recreation services. However, it does maintain various walking trails that connect HOA areas. The Town
is the only municipality in Texas that operates a charter school – Westlake Academy – and is financially
responsible for its operations and capital needs. The Town has increased its contribution to the Academy
over the years, and most recently, due to increases in staffing, the annual subsidy to the Academy totals
over $1.7 million from the Town’s General Fund. The relatively stagnant growth of state funding for
charter schools cannot keep pace with the anticipated increases in personnel and operating costs.
Moreover, no capital set-asides have been anticipated for the school’s long-term operations to replace
facilities or equipment.
Baker Tilly has incorporated the Town’s separately adopted FY 2025 budgets for the Town and the
Academy, respectively, to inform the development of the long-range fiscal model. We have used several
key baseline assumptions, including existing population and service levels, known revenue sources and
expenditure requirements, modest population growth, and the exclusion of any significant capital
infrastructure investments for the Town or the Academy. Based on this set of realistically conservative
assumptions, the Town’s General Fund forecast would indicate an annual surplus averaging $2.6 million
per year that could see General Fund reserves stay above a recommended minimum reserve target of
four months (or 33%) of annual operating expenditures plus operating transfers and subsidies. From this
baseline perspective, the Town would appear to be in good financial shape.
Town of Westlake
Fiscal Model and Fiscal Sustainability Planning
FINAL REPORT
Executive Summary
4
However, there is likely to be a significant amount of capital expenditures that will come due over the next
several years. Much of the Academy’s facilities will need repairs and maintenance, including key building
systems (e.g., HVAC, carpet, roof, paint), outdoor hardscape, athletic fields, and lighting over the next
several years. While most of the non-building improvements have been funded through the gracious
donations of the Academy fundraising foundations, it is currently not reasonable to expect that
maintenance of those improvements will be funded through donations in a similar fashion. In addition,
while much of the Town’s streets and landscaping needs are the responsibility of HOAs, the arterial
roads, street lighting, and hardscapes/softscapes are the responsibility of the Town. Moreover, the Town
has a fire station with requisite building systems as mentioned above, and fire apparatus that will need to
be maintained and/or replaced over the next several years. As such, we believe the Town currently has
an unfunded capital infrastructure investment requirement of at least $2 million per year for the Academy
and Town infrastructure and equipment that will need to be funded.
When the Town’s fiscal model includes these unfunded capital requirements, the annual surplus becomes
an average annual fiscal gap (deficit) of $4.1 million that would grow to $8 million by FY 2035. Reserves
would fall below the Town’s minimum reserve target by 2033 and be fully depleted by 2035 without
corrective action.
In this report, we identified over 20 high-level budget strategies for future consideration. Action will need
to be taken by 2030 to address the long-range fiscal gap. Additionally, we provided an overview of fiscal
sustainability planning. The Town would need to prepare a fiscal sustainability plan that includes a set of
budget strategies to address the gap in time to maintain General Fund reserves above the minimum
reserve target and eliminate the fiscal gap by the end of the 10-year forecast period.
Town of Westlake
Fiscal Model and Fiscal Sustainability Planning
FINAL REPORT
Fiscal Model
5
Fiscal Model
This project started with developing a baseline fiscal model (or financial forecast) for the Town to
understand the impacts of the existing baseline FY 2025 budget and a set of realistically conservative
revenue and expenditure assumptions on the Town’s long-term fiscal health. Separate fiscal models were
created for the Town and the Academy. We primarily focused on the General Fund in both models but
also included their respective other operating funds to determine any potential fiscal impact on the
General Fund in the form of transfers to/from those other funds. For the Academy’s fiscal model, the
projected surplus/deficit would result in a corresponding decrease/increase in the Town subsidy to the
Academy. The following sections discuss the outcomes of the fiscal modeling efforts.
Baseline Budget
We used the approved FY 2025 budgets for the Town and the Academy. The Academy's fiscal year end
is different from the Town, separated by three months. For fiscal modeling purposes, we assumed both
agencies had the same fiscal year.
The proposed Town General Fund budget projected a surplus in FY 2025 of $1.5 million on annual
operating expenditures plus transfers of $15 million. These figures included a projected subsidy of
$1.7 million to the Academy’s operations. The Academy General Fund budget of $11.5 million was
assumed to be “made whole” by the Town’s General Fund subsidy. In essence, agency-wide, the Town of
Westlake expected a surplus equivalent to 5.6% of annual operating expenditures, increasing the Town’s
reserves to $32.2 million, or 215% of annual operating expenditures plus transfers.
The level of reserves is considered healthy for the Town as a starting point in the fiscal model. These
levels of reserves have happened over the past several years, primarily as a result of one-time revenues
in the form of use tax and permit revenues related to significant development projects. In addition, the
Town’s capital infrastructure is relatively limited as most of the residential community is within
homeowners’ associations that have private responsibility for the maintenance of roads, landscaping, and
parks/recreation amenities.
In short, the Town’s existing fiscal status is strong with healthy reserves. However, the question becomes
whether Town operations and funding Academy operations are sustainable long-term based on growing
costs and underfunded capital improvements that will require funding in future years as discussed below.
Fund Balance/Reserve Policies
The Town has an existing minimum fund balance (reserve) policy for its General Fund equivalent to 180
days (or 50%) of annual operating expenditures. There are no separate minimum reserve policies for its
capital funds. It is essential that municipalities maintain adequate levels of reserves to mitigate current
and future risks such as revenue shortfalls or unanticipated expenditures, and to ensure stable tax rates.
In most cases, discussions of fund balance tend to focus on a government’s general fund, as that is
where most of the necessary services are funded by general tax revenue sources.
Minimum reserve levels are used in long-range forecasting to assist decision makers in understanding
whether sufficient reserves are planned for future years. The adequacy of an agency’s reserves is
different for each agency depending on its unique circumstances. For example, an agency vulnerable to
natural disasters or with economically volatile revenue sources might require a higher level of reserves.
Establishing a minimum reserve policy is based on several factors as presented in Figure 1.
Town of Westlake
Fiscal Model and Fiscal Sustainability Planning
FINAL REPORT
Fiscal Model
6
Figure 1. Key Factors Upon Which General Fund Reserve Policies are Based
A best practice based on Government Finance Officers’ Association (GFOA) recommendations for
municipalities in the United States is to establish a minimum reserve policy for the General Fund of at
least two months (or 17%) of annual operating expenditures and recurring transfers. However, the unique
circumstances, as indicated above, are considered in establishing those reserve policies.
The Town of Westlake’s unique circumstances indicate that the existing minimum reserve policy of 180
days (or 50%), which is above the standard established by GFOA recommendations, is prudent. This is
based on the following:
• Over 70% of the Town’s annual General Fund revenues are reliant on economically volatile
revenue sources, including:
o Sales taxes, which total $9.9 million or 60% of revenues, and
o Development-related permit revenues that total $1.8 million or nearly 11% of revenues.
• Ongoing capital improvements to replace existing infrastructure or provide new infrastructure for
the Town (e.g., arterial roadways, Town facilities, fire station facilities, and apparatus) and the
Academy (e.g., previously donation-funded amenities, capacity expansion) will increase
the potential for significant one-time capital needs.
• The Academy, which is already planned to operate at a loss and upon which state revenues grow
at low rates, will continue to drain the Town’s General Funds, requiring a higher level of reserves.
For fiscal model planning purposes, we included the Town’s minimum General Fund reserve policy of
50% of annual operating expenditures for long-term planning purposes. This level of reserves addresses
revenue volatility, provide time to address gaps in Academy operational funding, and provide a fallback
for unanticipated one-time capital expenditures.
Key Assumptions Used in Baseline Forecast
The adopted FY 2025 budgets for the Town and the Academy were used as the baseline in developing
the fiscal models for both agencies. The key assumptions used to develop the respective fiscal models
are summarized in Tables 1 and 2 below.
Predictability/volatility of revenues and expenditures
Exposure to one-time outlays (e.g., disasters, capital needs, state budget)
Drain on General Fund resources from other funds
Impact on bond ratings and increased cost of borrrowed funds
Commitments and assignments for other purposes
Town of Westlake
Fiscal Model and Fiscal Sustainability Planning
FINAL REPORT
Fiscal Model
7
Table 1. Key Assumptions Use in Town Baseline Forecast for FY 2025-2035
General Assumptions Reserves
• Recessions – No recessionary impacts are assumed in
the baseline forecast.
• Service levels – Maintain existing service levels
• Minimum reserves – General Fund minimum
reserve of 180 days (50%) of annual operating
expenditures plus recurring operating transfers
• Capital project reserve funding – No
significant assumptions related to unfunded
capital projects to be funded from the General
Fund other than recurring operating transfers for
vehicles and maintenance/repairs of Town
facilities
Revenues Expenditures
• Development activity – No anticipated significant
development projects in future years pending entitlement
and submittal of development plans for plan check; new
residential unit construction of 30 units per year through
2031, and 60 units per year thereafter; new non-
residential space of 160,000 square feet in 2026 only;
population increase averaging 4% per year through 2026,
6% thereafter
• Property taxes – Annual increases of 2.5% based on
historical tax rate increases approved by the Town
Council
• Sales taxes – Growth based on revised 2025 projections
of 4% per year thereafter
• Franchise fees – Annual growth of 2.5% based on
growth in gas/electric utilities offset by “cord-cutting” and
reductions in telecommunication-related costs
• Permit revenues – Annual growth of 2.5% based on
historical averages excluding significant one-time
development projects
• Investment income – Reduction in interest rates on fixed
income securities reducing to 3% in 2026 and 2.5%
thereafter based on the Town’s investment holdings and
interest rate reductions anticipated by the Federal
Reserve in future years
• Other – modest growth of 2% to 3% of other revenue
sources
• Salary, benefits and other adjustments –
Long-term assumption of salary adjustments
averaging 3% per year, a vacancy rate of 3%
per year
• Healthcare and other health-related
insurance benefits – Costs anticipated to
increase by 4% per year based on historical
trends
• Inflationary impacts – Assumed long-term
inflation for the Dallas-Fort Worth-Arlington
metro region of not greater than 3% based on
pre-pandemic averages and the latest
September 2024 year-over-year CPI index
change of 2.6%.
• Contracted services, supplies, utilities and
other non-personnel costs – Long-term
growth of 3% per year mirroring inflation
assumptions
• Capital assets – No capital equipment funding
in FY 2026 and beyond
• Debt service – No new debt service obligations
to be borne by the General Fund
• Academy Subsidy – Baseline of $1.7 million
from FY 2025, increasing based on outcomes
from the Academy fiscal model which grows
from $2.2 million in 2026 to $7.2 million by 2035
Table 2. Key Assumptions Use in Academy Baseline Forecast for FY 2025-2035
General Assumptions Reserves
• Student capacity/attendance – No changes
anticipated in student capacity or attendance
based on projected FY 2025 levels
throughout the life of the forecast
• Service levels – Maintain existing service
levels
• Minimum reserves – Equivalent to 45 days (12.5%) of
annual operating expenditures
• Capital project reserve funding – No significant
assumptions related to unfunded capital projects to be
funded by the Academy
Town of Westlake
Fiscal Model and Fiscal Sustainability Planning
FINAL REPORT
Fiscal Model
8
Revenues Expenditures
• Town operating contribution – full subsidy
from the Town for any annual operating
deficits
• State per capita apportionment – No
increase in state per capita amounts based
on FY 2025 levels
• State Foundation School Program (FSP)
entitlements – No increases in FSP
entitlement funding by the State based on
FY 2025 levels
• Foundation Campaign Contributions – no
growth on FY 2025 anticipated contributions
• Investment income – Reduction in interest
rates as described in Table 1
• Other – Low to no growth on other revenue
sources
• Salary, benefits and other adjustments – Long-term
assumption of salary adjustments averaging 4% per year, no
assumed vacancy savings
• Healthcare and other health-related insurance benefits –
Costs anticipated to increase by 4% per year based on
historical trends
• Inflationary impacts – Assumed long-term inflation for the
Dallas-Fort Worth-Arlington metro region of not greater than
3% based on pre-pandemic averages and the latest
September 2024 year-over-year CPI index change of 2.6%.
• Contracted services, supplies, utilities and other non-
personnel costs – Long-term growth of 4% per year as
historical purchases have shown increased needs and costs
• Capital assets – No capital equipment funding in FY 2026
and beyond other than existing capital leases
• Debt service – No new debt service obligations
Baseline Financial Forecast
The results of the baseline forecast are presented below. The Academy’s long-range forecast indicates
an ongoing fiscal gap that requires additional Town funding that increases by $457,000 in FY 2026 and
grows to an increased funding requirement of $5.5 million in FY 2035. In FY 2025, the Town anticipated
backfilling the Academy over $1.7 million, which represented nearly 15% of annual operating costs. By
the end of the ten-year forecast, the Town will be contributing more than $7 million per year to subsidize
school operations, equivalent to over 40% of the Academy’s annual operating budget. The primary
reason is that revenues are not anticipated to grow at the same pace as the cost of providing services,
exacerbating an already fiscally unsustainable situation. The two largest revenue streams – the State’s
per capita and FSP entitlement funding – cannot be guaranteed to grow in future years, while it is
expected that costs will continue to rise by funding compensation and benefits to recruit and retain
employees and the costs of services and supplies. The trend of projected revenues and expenditures
before the Town’s subsidy (Figure 2) and the growth in the Town subsidy itself (Figure 3) are displayed
below.
Town of Westlake
Fiscal Model and Fiscal Sustainability Planning
FINAL REPORT
Fiscal Model
9
Figure 2. Westlake Academy Projected Revenues and Expenditures (Excludes Town Subsidy)
Figure 3. Town Subsidy of Westlake Academy’s Annual Operating Budget
NOTE: The Academy’s approved annual operating budget for FY 2025 indicated an operating
subsidy of $1.5 million. The Town’s operating budget included an annual operating subsidy of the
Academy of $1.7 million.
The foregoing results have a dramatic impact on the Town’s long-range forecast. The healthy reserves
with which the Town finds itself allow the baseline forecast reserves to stay above the minimum reserve
$9.2 $9.7 $9.6 $9.7 $9.3 $10.0 $10.0 $10.0 $10.0 $10.0 $10.0 $10.0 $10.0 $10.0 $10.0 $10.0
$9.6 $9.3
$10.5 $10.6 $9.7
$11.5 $12.0 $12.4 $12.9 $13.5 $14.0 $14.6 $15.1 $15.8 $16.4 $17.0
$0.0
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
$14.0
$16.0
$18.0
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035
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Westlake Academy Long-Range Forecast -
Revenues and Expenditures
Revenues (excludes Town Subsidy)Expenditures
$0.2 $0.0 $0.0
$0.4
$1.5 $1.5
$2.0
$2.4
$2.9
$3.4
$4.0
$4.5
$5.1
$5.7
$6.3
$7.0
$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
$7.0
$8.0
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035
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Westlake Academy Required Operating Subsidy
Baseline Town Subsidy Additional Subsidy Required
Town of Westlake
Fiscal Model and Fiscal Sustainability Planning
FINAL REPORT
Fiscal Model
10
policy of 50% of annual operating expenditures throughout the forecast period. Before the additional
Academy subsidies, the Town enjoyed a projected surplus averaging $2.6 million per year throughout the
10-year forecast period that would have slightly reduced over the period due to projected revenues not
keeping pace with the costs of providing services. With the increased subsidy of Academy operations,
starting in FY 2031, the Town will experience a baseline fiscal gap that grows from $350,000 in 2031 to
over $4.3 million by 2035 without corrective action. The resulting level of reserves compared to the
minimum reserve target (Figure 4) and the annual surplus/deficit (Figure 5) are shown in the graphs
below.
Figure 4. Town of Westlake General Fund Long-Range Baseline Forecast – Projected Reserves
$17.6 $18.2
$21.6
$28.7 $30.7 $32.2
$34.7 $36.5 $37.9 $38.7 $39.0 $38.6 $37.4 $35.1
$31.9
$27.5
$0.0
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
$35.0
$40.0
$45.0
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035
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Town of Westlake General Fund Forecast -Projected Reserves
Ending Reserves Minimum Reserve Goal
Town of Westlake
Fiscal Model and Fiscal Sustainability Planning
FINAL REPORT
Fiscal Model
11
Figure 5. Town of Westlake Long-Range Baseline Forecast – Projected Annual Surplus (Deficit)
Impact of Underfunded/Unfunded Capital Needs
The baseline forecast does not include any significant capital funding in future years. Neither the Town
nor the Academy has a long-range capital improvement plan (CIP) as part of its annual budget. Town
staff indicate that a water system master plan is currently underway (which is expected to be fully paid by
water ratepayers), as is a pavement master plan that will identify long-range road improvement
investments for future years (likely requiring General Fund contributions). Staff expressed interest in a
future facilities master plan as well, but nothing is in the works. Without formal master plans that might
indicate long-range cost considerations, we relied on our experience working with agencies of similar size
as Westlake. We also relied on the historical costs associated with non-utility infrastructure investments
as indicated in the Town’s annual comprehensive financial report (ACFR) for FY 2022. Agencywide
capital assets and infrastructure investments as of June 30, 2022, totaled $36.3 million using historical
costs. Using an average expected life of 20 years, an average annual set-aside to replace those assets
would be $1.8 million. Knowing that these are historical costs and given the inflationary impacts on
replacing these assets for future years, a conservative $2 million is used to estimate the impact of future
improvements that will need to be replaced. The Town does not impose a development impact fee to help
pay incremental infrastructure costs associated with development projects.
Revised Financial Forecast
In developing a revised forecast, we incorporated two factors not present in the baseline forecast.
1. Impact of Underfunded/Unfunded Capital Needs - Based on our discussion above, we have
introduced a placeholder assumption of $2 million per year starting in FY 2026, growing at the
inflationary assumption rate of 3% per year throughout the forecast period.
$0.8 $0.6
$3.4
$7.1
$2.0 $1.5
$2.5 $1.8 $1.3 $0.8 $0.3
($0.4)
($1.3)
($2.2)
($3.2)
($4.4)
($6.0)
($4.0)
($2.0)
$0.0
$2.0
$4.0
$6.0
$8.0
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035
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Town of Westlake General Fund Forecast -
Annual Surplus (Deficit)
Annual Surplus (Deficit)
Town of Westlake
Fiscal Model and Fiscal Sustainability Planning
FINAL REPORT
Fiscal Model
12
2. Recessionary Impacts – It is not uncommon for Texas agencies, like other agencies across the
United States, to experience revenue losses during regional recessions. On average, agencies
will experience mild- to moderate-recessionary periods that will typically impact sales and use
taxes and development-related revenues. Property taxes may also be affected to the extent of
significant declines in property values, but those usually are in more urban areas or areas where
speculative development has taken place. For Westlake, we have introduced into the revised
forecast mild recessionary impacts in sales tax and development fee revenues every seven years
starting in 2027 and every seven years thereafter that recover over three years. We assume the
Federal Reserve and other economic factors will continue to temper inflationary pressures and
stave off any significant recessionary impacts in the short term.
Using these two factors that we believe represent a more comprehensive look at the Town’s long-range
fiscal trends, General Fund reserves are depleted at a faster rate. In this case, the General Fund will
begin to experience annual deficits starting in FY 2027 that grow from $221,000 to $8 million by FY 2035
without corrective action. This dramatically changes the long-term fiscal sustainability for the agency.
Reserves would fall below the minimum reserve target by FY 2033 and will be fully depleted by FY 2035
without corrective action. The revised forecast of General Fund reserves (Figure 6) and the annual
surplus (deficit) (Figure 7) are displayed below.
Figure 6. Town of Westlake General Fund Long-Range Revised Forecast – Projected Reserves
$17.6 $18.2
$21.6
$28.7 $30.7 $32.2 $32.7 $32.5 $30.2
$27.5
$24.2
$20.5
$16.0
$10.3
$3.6
($4.4)
($10.0)
($5.0)
$0.0
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
$35.0
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035
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Revised Town of Westlake General Fund Forecast -
Projected Reserves
Ending Reserves Minimum Reserve Goal
Town of Westlake
Fiscal Model and Fiscal Sustainability Planning
FINAL REPORT
Fiscal Model
13
Figure 7. Town of Westlake Long-Range Revised Forecast – Projected Annual Surplus (Deficit)
To address this gap, the Town would need to develop budget strategies to provide nearly $7 million in
new revenues and/or expenditure reductions by FY 2030 phased in over three years (e.g., $2 million in
2030, an additional $3 million in 2031, and an additional $2 million in 2032) that would grow by at least
3% per year thereafter. The following section discusses strategies that could address this gap for the
Council’s future consideration.
$0.8 $0.6
$3.4
$7.1
$2.0 $1.5
$0.5
($0.2)
($2.3)($2.7)($3.2)($3.7)($4.6)
($5.6)
($6.8)
($8.0)($10.0)
($8.0)
($6.0)
($4.0)
($2.0)
$0.0
$2.0
$4.0
$6.0
$8.0
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035
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Revised Town of Westlake General Fund Forecast -
Annual Surplus (Deficit)
Annual Surplus (Deficit)
Town of Westlake
Fiscal Model and Fiscal Sustainability Planning
FINAL REPORT
Fiscal Sustainability Plan
14
Fiscal Sustainability Plan
Based on the long-range forecast, total ongoing budget strategies of $7 million per year would be
required starting by FY 2030 to ensure that the General Fund maintains minimum reserves above the
Town’s policy of 50% of annual operating expenditures and eliminate the annual fiscal gap.
This represents the goal in the budget strategies analysis that is the subject of this section of the report.
However, the Town does not need to wait until 2030 to begin implementing budget strategies to achieve
fiscal sustainability.
Overview of Fiscal Sustainability Planning
A fiscal sustainability plan is a plan that includes a variety of budget strategies that will address any fiscal
gap identified in a long-range forecast that accomplishes two objectives:
1. It ensures that fund balance/reserves stay above the minimum reserve goal established by the
governing body throughout the period covered in the long-range forecast, and
2. Eliminates the annual fiscal gap not later than the last year of the long-range forecast.
A fiscal sustainability plan is different than a fiscal solvency plan, the latter of which is focused primarily
on cash liquidity of the agency to meet its debt obligations. A fiscal solvency plan has the ability to use
debt financing or find means by which to extinguish or absolve the agency of its existing debt obligations,
among other tools, to avoid the event of fiscal insolvency (which some might refer to as bankruptcy).
Rather, a fiscal sustainability plan is focused on attempting to maintain services to the fullest extent
possible to address a budgetary shortfall that is projected in future years. It is less focused on liquidity
and more focused on managing reserves.
Types of Budget Strategies
Budget strategies are used to address any fiscal gap present in the long-range forecast. They are
developed along a continuum that includes four categories:
• Expenditure control/cost shifts – strategies that focus on reducing the cost of service delivery
through such means as process improvements, organizational restructuring, renegotiating
existing contracts for services/supplies, updating cost allocation plans within an organization, or
otherwise shifting costs borne by the General Fund to other funding sources that currently exist;
• Service delivery changes – strategies that focus on changing how services are delivered that
reduce costs while maintaining service levels. Examples might include contracting for services,
shared service delivery with other agencies, providing services with existing capacity to other
agencies, and public-private partnerships; and
• Revenue enhancement opportunities – strategies that seek to increase the financial resources
available to provide services such as economic development, new taxes, existing tax increases,
and increasing cost recovery through new/enhanced/increased fees and charges.
To the extent that these three categories fail to deliver fiscal sustainability in a timely manner, the agency
might then need to exercise strategies from the fourth category:
• Service level reductions – identifying services or programs that can be reduced or eliminated,
typically based on a prioritization strategy.
Determining Budget Strategy Feasibility
Budget strategies are then typically analyzed in terms of fiscal impact and their potential for success,
considering such factors as the following:
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• Community values
• Organization goals, policies and culture
• Technical and operational feasibility
• Timing of implementation
• Service delivery
• City operational structure and practices
Budget Strategy Scenario Packages
Strategies that are deemed worthy of future consideration can then be placed into various scenario
packages along a continuum ranging from revenue-centric enhancements to expenditure-centric
reductions, as indicated in Figure 8 below.
Figure 8. Budget Strategy Scenario Packages
Fiscal Sustainability Implementation Action Plan
Once a scenario package and the related budget strategies are chosen, the agency then creates an
implementation action plan to implement the strategies that includes timing, responsible party for
implementation, and resources (time or investment in funds) to implement the chosen strategy. This
ultimately comprises the fiscal sustainability plan.
Baker Tilly’s Assignment
Our assignment in this project is to identify potential opportunities for the Town to consider that could
collectively address the fiscal gap. We were not asked to evaluate individual strategies but rather to
provide a slate of options that the Town Council and staff could use as a starting point for its long-term
fiscal sustainability efforts. It is clear that the long-range financial forecast indicates there is a fiscal gap
that will need to be addressed. How the agency addresses it will need to be considered in its strategic
planning and economic development planning efforts in sufficient time to bring fiscally sustainable
operations and service levels to the community today and for years to come.
With that, we have identified a series of budget strategies for the Town to consider in future years to
address the fiscal gap identified in the long-range forecast. They are discussed below.
Budget Strategies
Each of the budget strategies identified herein was based on our review of various Town documents,
interviews with councilmembers and staff, review of other agencies in Texas, and our deep experience
Scenario 1 –Strong Revenue Enhancements
•Primary focus on revenue strategies to solve the fiscal gap
Scenario 2 –Strong Revenues Addressing Underfunded Capital Needs
•Focus on revenue enhancements with a goal of providing additional resources for capital improvements
Scenario 3 –Balanced Approach
•Blend of revenue enhancements and expenditure reductions to solve the gap attempting to mitigate service level reductions
Scenario 4 –Strong Expenditure Reductions
•Reliant primarily on expenditure reductions with potential cuts to service levels
Revenue Enhancements Expenditure Reductions
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working with agencies across the country. Each strategy identified will include a brief description, the
potential fiscal impact, and comments to help inform the evaluation of the strategies for future
consideration.
Expenditure Controls and Cost Shifts
The following expenditure control and cost shift alternative were identified in our analysis.
# Description
Long-range
Annual
Fiscal
Impact Comments
1 Organizational
assessment of
Academy
administration
$250,000 Review the organizational structure of administration and
administrative support functions to identify staffing reduction
alternatives that mitigate classroom/educational programs.
Administrative staffing might exceed state standards which
could jeopardize long-term state funding.
2 Compensation
standards
$200,000 Review compensation of Town and Academy staff to establish
a standard between median and top quartile compensation
with comparable agencies; establish an appropriate peer
agency group based on objective criteria from which to
compare compensation and benefits.
3 Maintain only
public
infrastructure and
amenities
$100,000 The Town has been taking over maintenance of HOA-owned
amenities where they abut public spaces (e.g., fountains,
landscaping). Yet we also understand that the Town owns
property maintained by HOAs. The distinction between
public/private maintenance responsibilities requires careful
consideration to avoid “maintenance creep” of public
responsibilities that require additional funding resources
through increased tax revenues or reduced costs in other
places.
4 Conduct City Hall
facilities study
TBD Conduct a study to determine cost-benefit of building a City
Hall facility rather than renting office space. Savings may only
be driven if low-interest debt financing, grant funding, and
value-engineering principles are used to mitigate long-term
costs of ownership and maintenance.
5 Cooperative
purchasing
$100,000
or more
Exercise cooperative purchasing arrangements with other
agencies locally, within the region, and through statewide and
nationwide procurement options. The most significant savings
might be achieved in capital projects and maintenance
services and supplies.
Service Delivery Alternatives
The following service delivery alternatives were identified in our analysis.
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# Description
Long-range
Annual Fiscal
Impact Comments
1 Academy
privatization
Up to
$5.5 million
Privatize charter school operations to allow for tuition or (if
approved by the state in the future) voucher-based
revenue, offloading the costs from the General Fund.
Hybrid approach of a public-private partnership could be
explored in some areas with a focus on protecting state
funding to the fullest extent possible.
2 Municipal courts –
shared service
delivery
$150,000 Identify opportunities to reduce the cost of court services
by sharing with another agency, either by leveraging
existing capacity or outsourcing with a nearby jurisdiction.
3 Consolidated fire
management –
shared service or
federation model
$250,000 Create a shared fire management model with the nearby
agency(ies) to consolidate top-level positions and
command staff.
4 Public works
services – shared
services
$150,000 Identify opportunities to share public works maintenance
services, including streets, facilities, fleet, and
landscaping.
It should be noted that we reviewed the existing arrangement with the City of Keller Police Department
regarding the cost for law enforcement services. While Westlake could potentially explore options for
reduced costs from the Sheriff’s office or other local agencies, we are not certain that Westlake would see
significant cost savings unless there were greater regional sharing of law enforcement services. The cost
of law enforcement services as it currently stands appears to be a good value to the Town.
Revenue Enhancements
The following revenue enhancements were identified in our analysis.
# Description
Long-range
Annual
Fiscal
Impact Comments
1 Property tax – increase
tax rate up to voter-
approval tax rate
(VATR) of $0.21 per
$100
$500,000 The town can increase the tax rate by state statute to
VATR without voter approval; increases property taxes
up to 25% over time.
2 Sales tax – reallocate
1/8% of 4B Economic
Development fund sales
tax to Property Tax
Reduction fund
$1,200,000 The 4B fund is projected to be overfunded based on
existing debt service. Approximately 25% of the sales
tax revenues could be reverted to the General Fund.
This would require voter approval.
3 Cost recovery for fees
and charges – new
study to increase cost
recovery to 100%
$250,000 Conduct a comprehensive fee study to determine
existing cost recovery levels and establish parameters
around improving cost recovery.
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# Description
Long-range
Annual
Fiscal
Impact Comments
4 Crime control and
prevention district
(CCPD) – establish a
CCPD to fund crime
prevention and
reduction efforts
$600,000 Allowed under Texas Local Government Code Section
363 et seq. Voter approval is required of those within
the proposed district. Need not cover the entire
incorporated area. CCPD is funded through sales and
use tax up to 0.5% and counts against the 2% local
maximum. To implement this would require one of the
other sales tax measures to be sunset (e.g., 4B
Economic Development fund).
5 Sales tax leakage –
leakage study to
improve sales tax
generation
TBD Conduct a sales tax leakage analysis to determine
opportunities to attract sales tax generators where
demand might support them. Fiscal impact will depend
on leakage and whether the Town wants to pursue
sales tax deficit industries.
6 New retail development
– focus economic
development efforts on
significant sales tax
producers
$100,000 to
$2,000,000
New retail in development areas can provide ongoing
additional revenue sources, albeit more volatile to
economic swings. A thriving restaurant will only
generate up to $100,000 annually in sales tax, whereas
larger department stores/retailers can generate up to
$2 million in annual sales tax.
7 Development impact
fees – implement fees
to pay for new
construction of
infrastructure
TBD Funds could only be used for new infrastructure or
significantly enhanced infrastructure that increases
capacity to serve the increased population/impacts on
the community. Fiscal impact is dependent on what
impact fees are implemented and future development
activity.
8 Stormwater utility
district (SWUD) –
implement a SWUD to
cover costs associated
with stormwater
management
<$200,000 The Town has an existing stormwater management
program. SWUD provides the opportunity to fund it
through utility fees. Operating costs are not currently
allocated based on stormwater management. Future
infrastructure costs could be funded through SWUD as
well as ongoing maintenance costs.
9 Education-based
donations – expand
fundraising to tap
private and/or public
funding opportunities
$500,000 Focus on fundraising efforts that can support existing
programs as opposed to creating new programs.
Identify and pursue funding options from federal
programs or private foundations where the Academy’s
existing services fit the niche of those grant programs.
Additional comments regarding strategies identified:
• Local sales tax rate capacity – The Town has already implemented the maximum local sales
taxes that are allowed under State law with its three sales tax categories: 1) General Fund of 1%;
2) Property tax reduction of 0.5% to reduce the property tax burden; and 3) 4B Economic
Development Fund of 0.5% to fund qualified development projects. The latter is committed to
repaying the debt on what was referred to as the “Civic Campus project”; however the 4B fund
projects sales tax revenues in excess of projected debt service which might provide some
capacity to divert those funds to a different use.
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• Charter school funding – the funding for charter school operations such as Westlake Academy
is limited. Based on our research, the Town may not levy assessments to fund operating costs
like a school district can. As such, education assessment levies are not a viable option to provide
additional ongoing funding of school operations. The Academy also is limited in charging anything
similar to a tuition to students to address the gap as that would violate state funding that the
Academy would receive.
Service-Level Reductions
If the strategies in the three categories listed above are not pursued, not timely, or insufficient to address
the growing fiscal gap, then service-level reductions would need to be exercised to achieve fiscal
sustainability. We recognize the Town would least prefer these options, but the Town will need to explore
these types of options to be able to provide community services long term.
# Description
Long-range
Annual
Fiscal Impact Comments
1 Reduce or eliminate
Academy education
services
Up to
$5.5 million
Operating a charter school is not considered a
municipal service in Texas. The Academy is a unique
amenity that sets Westlake apart from other
communities, but if core municipal services (e.g.,
public safety, fire prevention, street infrastructure
maintenance, etc.) are not maintained, no other
agency can provide those services.
2 Reduce General Fund
staffing by 10% for both
Town and Academy
$1,600,000 Identify staff positions to eliminate to achieve a 10%
reduction in General Fund costs for both the Town and
the Academy using a priority-based approach.
3 Implement priority-based
budgeting and
reduce/eliminate non-
essential services
$2,400,000 Implement a priority-based budgeting process to
identify programs along a prioritization continuum and
either reduce or eliminate the least essential municipal
programs or services to achieve a 10% reduction in
total operating costs. Both the Town and the Academy
would be subject to this process.
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Conclusion
Westlake is a unique community in the Dallas-Fort Worth metro area. There is a lot of potential for the
Town to grow into a thriving community as it expands toward full build-out. Development of its mix of
HOA-centric residential areas and commercial spaces has provided significant revenues in the form of
permits and use taxes that have generated General Fund reserves. The Town has the potential to provide
a mix of property and sales taxes long term. The Town’s reliance on sales tax by maintaining one of the
lowest property tax rates in the region places a risk for economic volatility – when times are good, sales
tax revenues will boom, but when recessions hit, the Town is subject to significant reductions in its
highest revenue source.
The Town will need to identify nearly $7 million in ongoing, reliable budget strategies by 2030 if it wants to
continue the same types of services it provides today. Economic development will provide some relief for
property tax and sales taxes; however, the mix of retailers and properties to generate that level of
sustainable revenues long term will press the community into decisions about the character of its
residential and commercial spaces into the future.
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Table of Contents
Executive Summary .................................................................................................................................... 1
Economic Strategy Baseline ...................................................................................................................... 3
Community Economic Baseline........................................................................................................... 3
Demographic Context ................................................................................................................. 3
Regional Context ......................................................................................................................... 3
Core Economic Elements ............................................................................................................ 6
Household Profile ........................................................................................................................ 7
Land Development .............................................................................................................................. 7
Core Development Types and Patterns .................................................................................... 10
Competitor and Peer Community Context ................................................................................ 12
Revenue Growth ............................................................................................................................... 13
Community and Stakeholder Perspectives ............................................................................................ 15
Previous Planning Efforts .................................................................................................................. 15
Stakeholder Interviews ...................................................................................................................... 15
Public Meetings ................................................................................................................................. 15
Community Survey ............................................................................................................................ 18
Desired Development Types ..................................................................................................... 18
Types of Development Not Desired .......................................................................................... 18
Future Economic Vision ............................................................................................................ 19
Internal Policies and Procedures ............................................................................................................ 20
Economic Development Tools and Best Practices ........................................................................... 20
Strengths, Weaknesses, Opportunities, and Threats (SWOT) ............................................................. 21
Strengths ........................................................................................................................................... 21
Weaknesses ...................................................................................................................................... 21
Opportunities ..................................................................................................................................... 21
Threats .............................................................................................................................................. 21
Strategic Priorities and Action Agenda .................................................................................................. 22
Conclusion ................................................................................................................................................. 26
Westlake, TX
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Executive Summary
1
Executive Summary
The Town of Westlake engaged Baker Tilly to develop an economic development plan to support the
Town’s vision and goals and ensure high-quality business development. The plan is intended to guide the
Town’s economic development strategy and the supporting municipal policies and tools leveraged to
realize desired development. This report presents the Town’s demographic and economic baseline and
the resulting impacts on the Town’s growth, revenues, and other factors. It provides details on economic
and demographic trends, the current development composition of the Town and its regional development
context in the northern Dallas-Fort Worth-Arlington, TX metro area, community and stakeholder
perspectives, and economic development policies and tools, and recommends a set of potential growth
opportunities in line with the Town’s current conditions and perspectives and future economic
development goals.
The Town of Westlake has been largely insulated from regional growth trends due to its rural character,
high home values, and relatively slow rate of new development. Residents prize the Town’s semi-rural
character and aesthetic quality, as well as its open space, and place a high priority on maintaining these
features. Most of the Town’s remaining developable land is owned by a single developer – Hillwood – and
presents creative opportunities for redevelopment. Currently, the Town lacks significant retail
development and is dominated by large single-family residential lots and large corporate campuses.
The Town has a significant opportunity in the success of its corporate campuses and its large swaths of
remaining developable land. Furthermore, the relatively high rates of regional population growth present
an additional opportunity to leverage regional demand. The layout of developable land across the Town
presents a unique opportunity to use highly visible parcels on the Town’s edge to promote Westlake’s
unique character through flagship developments, while maintaining the semi-rural quality and high
aesthetic standards of the Town.
A mixed landscape in Westlake that includes the Westlake Academy, Deloitte University,
and open space. (Baker Tilly photo)
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The report concludes with a set of 11 strategies for the Town to realize its goals of supporting new
construction and development, maintaining and enhancing community identity and sense of place, and
effectively managing the development services process to move at the pace of business. Key
considerations for economic impact include:
• Create a balanced approach for the Town’s future by leveraging developable land to generate
new tax revenues while preserving community character;
• Harness the market potential of new household creation in the northern portions of the DFW
metroplex to support new housing development in limited portions of the Town;
• Collaborate with the large corporate campuses to support new development that creates a
symbiotic relationship between the spending demand of employees and the delivery of new retail
amenities in mixed-use projects; and,
• Leverage visibility and access along Highways SH 114 and SH 170 to implement a placemaking
initiative that elevates Westlake as a community of choice.
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Economic Strategy Baseline
Community Economic Baseline
Westlake’s demographic and economic profile paints a picture of a slow-growing, affluent town with a
commercial development pattern of mainly office developments like corporate campuses (on which it
primarily depends for its local employment base) with limited retail, and a residential pattern of single-
family homes on relatively large lots in large planned developments.
Demographic Context
Westlake has a population of nearly 2,000. However, due to the large corporate campus presence in the
Town (to be discussed in further detail in the following sections), its daytime population is significantly
higher than its permanent resident population. This daytime population is expected to continue to
increase, with various sources estimating anywhere between 40,000 to 60,000 by 2040. Westlake is
insulated from broader population trends in the region due to its high property values as well as low
growth in residential development versus surrounding communities, which have seen relatively significant
increases in population.
Westlake’s land area is roughly 7 square miles. The Town is surrounded by three major highways
(SH 170, SH 114, US 377) and is located on the northern edge of the Dallas-Fort Worth metroplex.
Westlake is roughly 30–60 minutes by car to downtown Dallas or downtown Fort Worth. Dallas was the
9th largest city in the country in 2022, and Forth Worth was the 13th largest; the region is among the
fastest growing metropolitan areas nationally, with the Dallas-Fort Worth-Arlington, TX metro area having
the highest numeric population increase in 2022, and neighboring Little Elm being the 5th fastest growing
city nationally in 2022.
Most residents are married (~78%), while 15.4% are never married, 5.8% are divorced, and 1.1% are
widowed. The population has a very high level of educational attainment (71.5% of those 25+ have a
bachelor’s degree or higher). There are 497 employed residents, suggesting that a fair amount of
households are single income; over 60% of female residents aged 20–64 are not in the labor force. Most
employed residents work in management, business and financial operations, healthcare, and sales and
related occupations. The Town’s racial makeup is 78.4% White, 11.8% Asian, and 7.9% two or more
races, with small percentages of other races. About 28% of the population is aged 19 or under. The
median household income is $250,001.
About three-quarters of workers work within their county of residence (Denton or Tarrant), while 21% work
outside of the county but in-state. The working population is roughly split between those who drive to
work and those who work from home. About half of those who travel to work have a commute longer than
30 minutes, suggesting that these individuals may work in Dallas.
Regional Context
Westlake sits at the border of Denton and Tarrant counties; Denton County’s population increased by
17.8% since 2018 and is projected to grow by 15.9% by 2028. Tarrant County’s population increased by
4.6% since 2018 and is projected to grow by 4.4% by 2028. Jobs in Denton County also increased by
23.7% in the same time frame, far faster than the national average job growth rate, and are projected to
grow by 14.8% by 2028. Jobs in Tarrant County increased at a slower pace of 10.3% since 2018 and are
anticipated to grow by 8.4% by 2028. The county migration charts shown below indicate that most
population movement in the two counties is intra-regional; however, Dallas County trends show significant
in-migration from other parts of the country like Orange County (California), Los Angeles, Pittsburgh, and
Chicago. This could indicate a potential pattern of new residents to Texas, establishing households in
Dallas and migrating to surrounding counties in future years, perhaps contributing to the growth trends in
Denton and Tarrant counties.
Denton County’s educational attainment is higher than the national average, with 32.1% of residents
holding a bachelor’s degree; 22.3% of Tarrant County residents have a bachelor’s degree. The largest
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industries in 2023 in Denton County were government, retail trade, health care and social assistance,
accommodation and food services, and professional, scientific, and technical services; the fastest
growing industries were government, finance and insurance, transportation and warehousing, health care
and social assistance, and wholesale trade. For Tarrant County, the largest industries were health care
and social assistance, government, and retail trade; the fastest growing industries were transportation
and warehousing, professional, scientific, and technical services, and health care and social assistance.
Westlake has lower levels of racial diversity versus Denton and Tarrant counties overall.
Denton County characteristics. (Lightcast)
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Tarrant County characteristics. (Lightcast)
Denton County Migration Patterns. (Lightcast)
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Tarrant County Migration Patterns. (Lightcast)
Core Economic Elements
Westlake’s resident population of less than 2,000 is one segment supporting Westlake’s local economy.
Westlake’s economy also has two additional potential demand segments – the large daytime population
(driven by corporate campuses) and regional populations. Though data figures were not available for this
report, stakeholder input indicates that employees at corporate campuses in the Town do not currently
visit local businesses to a significant degree (later sections of the report will discuss a lack of retail
development in the Town). Dining, shopping, and recreation attractions for the regional population are
largely located in surrounding communities, including Southlake, Roanoke, and Keller.
The table below shows the growth in the number of households in the communities surrounding Westlake
over the past 10 years. In particular, Trophy Club and Roanoke have seen significant growth during this
period, representing an increased source of regional demand that continues to grow (based on county-
wide population projections noted in the previous section). Though surrounding communities have also
developed their commercial real estate footprints to serve this growing demand, Westlake has an
opportunity to draw some of this demand to new businesses within the Town.
Table 1. Total Households in Surrounding Communities, 2012-2022 (American Community Survey,
5-Year Estimates)
City/Town 2022 2017 2012 % Change 2012-2022
Keller 16,052 14,949 13,360 20.15%
Roanoke 3,620 2,743 2,679 35.13%
Southlake 9,298 9,126 8,202 13.36%
Trophy Club 4,536 3,907 3,001 51.15%
Total 33,506 30,725 27,242 22.99%
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The table below shows the Town’s largest employers as of 2022 (as listed in the Town of Westlake’s
2022 Annual Comprehensive Financial Report [ACFR]). Roughly 75% of employment in the Town is
located at corporate campuses.
Table 2. Westlake Major Employers and Number of Employees (Town of Westlake 2022 ACFR)
Employer Employees
Percentage of Total
Town Employment
Schwab 7,000 42.44%
Fidelity Investments 4,765 28.89%
Goosehead Insurance 677 4.11%
Core-Mark 584 3.54%
Robinhood 500 3.03%
Deloitte University 500 3.03%
Kiewett 400 2.43%
Solera Holdings 261 1.58%
Defi Solutions 214 1.30%
Sound Physicians 194 1.18%
Verizon 164 0.99%
Levi Strauss 150 0.91%
Town of Westlake/Westlake
Academy 142 0.86%
All Other Businesses 941 5.71%
Household Profile
Westlake has 435 households and 472 housing units. The household breakdown is 92% family and 8%
nonfamily, with 46.7% of households being 2-person families and 31.9% being 3-4-person families. Only
77 households have one or more individuals over 65 years of age. Owner-occupied housing is roughly
evenly split between mortgaged and non-mortgaged homes. The median home value (owner-occupied) is
$2 million. Only 11 of the 435 occupied housing units are renter-occupied. These rental units are mostly
rented for over $3,500/month, with three renting between $1,500-$1,999/month. Nearly all of the housing
stock is single, detached units, with 12 units being single, attached. The housing stock is fairly new, with a
median built year of 2010. The majority of householders moved in between 2010 and 2017. Most
households have multiple vehicles (2-3). All vacant units except two are sold but unoccupied. The Town
has a small amount of relatively more affordable workforce housing – 43 units have a value below
$500,000.
Land Development
A simple calculation based on an approximation of the “developable” acreage in the Town (excludes
waterways, conservation areas, and utilities) shows that the Town is approximately 55% developed. Of
the developable land available, roughly 75% is owned by Hillwood, a Dallas-based developer with
experience delivering a variety of development types, from master-planned developments incorporating
everything from industrial to residential to commercial developments in urban settings.
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Map of all developable land in the Town of Westlake (identified as Agriculture/Vacant/Undeveloped) (Town of
Westlake, Existing Land Use Dataset, 2022)
The above map reinforces the current abundance of agricultural land and open space (over half of
Westlake’s land area), which is one of the Town’s distinguishing features. The next most prevalent land
uses are rural residential/single-family, transportation corridors, and offices (largely corporate campuses).
As shown on the map below, Hillwood holds large plots of contiguous land, presenting a broad range of
development options. Hillwood has expressed an interest in developing 2-4 additional corporate
campuses, but additional plots of developable land would remain available – in particular, highly visible
parcels along the highways that border Westlake. Notably, the land north of Highway 170 that lies within
the boundaries of Westlake is broadly thought to be part of Roanoke due to its physical separation from
the rest of the Town and is therefore seen differently by Town residents.
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Vacant Westlake parcels north of Highway 170; City of Roanoke to left. (Baker Tilly photo)
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Map of Hillwood developable land ownership in the Town of Westlake
(Town of Westlake, Existing Land Use Dataset, 2022)
Though a significant number of acres are classified for future land use planning as “vacant” or
“undeveloped,” there are limitations to the feasibility of full development across much of this acreage – for
example, the Circle T Ranch, agricultural grazing land, and green space. Given these realities, the land
with the highest revenue-generating potential is likely those parcels situated along Highways 170 and
377, including the parcels north of 170 which border Roanoke.
Core Development Types and Patterns
The table below demonstrates that both existing and forthcoming real estate in the Town are dominated
by offices, as seen in Westlake’s major corporate campuses for Deloitte, Charles Schwab, and Fidelity.
The market, largely through the land deals executed by Hillwood, has favored corporate campus
development in the Town, which has been a development type amenable to resident and leadership
priorities. Notably, the Town has little retail space, as discussed later in this section, which is a segment
with the potential to generate significant revenues for Town operations.
The Solana and Entrada developments have brought specialty and hospitality to the Town, including
existing and proposed hotel space and event venues.
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Table 3. Westlake Property Breakdown (CoStar)
Property Type Building Status Rentable Building Area
Health Care 7,788
Existing 7,788
Hospitality 464,047
Existing 244,297
Final Planning 96,000
Proposed 123,750
Office 4,685,711
Existing 4,182,534
Proposed 481,758
Under Construction 21,419
Retail 154,766
Existing 115,766
Proposed 9,000
Under Construction 30,000
Specialty 741,559
Existing 741,559
Total 6,053,871
Residential
The Town is dominated by single-family homes situated on large lots within master planned
developments, which are clustered in the southeast section of the Town, leaving relatively large chunks of
developable land to the north/northwest. Westlake currently has three major residential developments in
process, which consist of ultra-luxury single-family residences surrounded by wooded areas, consistent
with the Town’s emphasis on preserving and incorporating aesthetic open space into every development.
These new developments are adjacent to activity centers like Solana and the Vaquero Golf Club.
Town residents are generally opposed to new multi-family development that may typically be incorporated
into town center-style developments, and the Town indeed has very little multi-family residential
development. However, some multi-family residential development has occurred in Entrada, including
townhomes and condominiums.
Destination Commercial and Amenities
Westlake’s two flagship multi-use developments are Solana and Entrada, which are both located in the
northeastern part of the Town. Entrada is an 85-acre master-planned community that will feature over
1,000,000 square feet of office, retail, hotel, entertainment, and over 300 residential units with a mix of
villas, townhomes, and condominiums. Entrada, like all developments in Westlake, has high architectural
standards and will be designed to emulate the Catalonia region of Spain. The Entrada development has
been paused for almost 10 years but has recently begun to progress under the leadership of a new town
council. Solana Business Park is a mixed-use campus with offices, retail, and a Marriott hotel.
Circle T Ranch, a 2,500-acre multi-use development underway, is located in the northern portion of the
Town at the intersection of State Highways 114 and 170. The development will bring retail, restaurants,
and other amenities to the areas near Westlake’s corporate campuses.
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When seeking dining options, residents of Westlake visit restaurants on the north side of SH 114 (in the
planned community of Trophy Club), as well as the neighboring communities of Southlake and Grapevine
to the east. Additionally, downtown Roanoke (which borders Westlake to the north of the highway
interchange) is a regional draw with restaurants and entertainment. Downtown Dallas is a draw for arts
attractions.
Office
The corporate campuses of Deloitte, Charles Schwab, and Fidelity are clustered in the north/northwest
section of the Town. Corporate campus development is a favored model in the Town, and Hillwood has
expressed interest in developing additional corporate campuses on parts of its Circle T Ranch land.
Westlake’s corporate campuses serve as a major contributor to the Town’s economic potential, making its
daytime population exponentially larger than its permanent resident base. Several other companies also
occupy office space in Westlake, including some of the companies included in the largest employers
listing for the Town.
Industrial
Westlake currently has no significant industrial real estate space.
Competitor and Peer Community Context
Though none of the communities bordering Westlake are directly comparable, Southlake, which borders
Westlake to the southeast, is its closest competitor. Southlake is roughly three times the size of Westlake
by land area, and its population was nearly 32,000 in 2023 (nearly 25x the population of Westlake). The
assessed value of all property in Southlake was $10.85B in 2023, while the most recent 2022 data for
Westlake show $1.82B in assessed value. Sales tax revenues were almost $48M in 2023, while
Westlake’s sales tax revenues totaled $11.5M in 2022 (Westlake’s sales tax revenues in a typical year
are roughly $7–8M). On a per-household basis, sales tax revenues were just over $5,000 per household
in Southlake, and over $26,000 in Westlake (or roughly $18,000 in a typical year). Per capita personal
income was about $80,000, just over half of Westlake’s per capita personal income.
Roanoke, which is adjacent to Westlake to the northwest, is roughly the same size as Westlake by land
area, with a 2023 population of 10,628. Assessed value of all property in Roanoke was $3.35B in 2023.
Sales tax revenues were $18.75M in 2023. Per household sales tax revenues were just over $5,000. Per
capita personal income was about $52,000 in 2023.
When scanning the MSA as a whole, Highland Park, Texas, located near downtown Dallas, emerges as a
potential peer community in terms of its aesthetic character/high design standards and the significant
wealth of its residents. Highland Park is roughly 1/3 the size of Westlake by land area and has a
population of 8,719, nearly 5x the size of Westlake’s; total assessed property value was $7.4B in 2023;
sales tax revenues were $6.6M in 2023. Per household sales tax revenues were just over $2,000.
These competitor and peer community statistics demonstrate Westlake’s economic growth potential in
terms of real estate development and commercial revenue-generating activity through increasing the
intensity of development in the Town. In particular, Highland Park is an example of a wealthy community
that has preserved its aesthetic character while promoting a high intensity of commercial activity
combined with tight development patterns.
Retail Context
As demonstrated by the financial data above, Westlake’s neighboring communities have significantly
more retail development than Westlake. The map below clearly shows the pattern of retail establishments
in Westlake and surrounding communities. The majority of retail in the region is clustered along major
transportation corridors in Southlake, Grapevine, Keller, and Roanoke.
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Map of retail properties in and around Westlake (Blue=on the market; Gray=unavailable) (CoStar)
This observation is reinforced by the table below, which shows Southlake and Grapevine having the
highest amount of rentable building area for retail properties in the search area. Retail currently
comprises less than 10% of total taxable sales in Westlake.
The Town’s existing retail space is concentrated in the Solana and Entrada developments and includes
businesses like restaurants, a CVS, salon and nail shops, and Starbucks.
Retail development in neighboring communities includes additional daily amenities like grocery stores,
convenience stores, and gas stations which are not convenient to access for Westlake residents, as well
as large concentrations of restaurants, shops, and other retail types.
Table 4. Comparison of Retail Rentable Area in Westlake and Neighboring Communities (CoStar)
Community Retail Rentable Building Area
Grapevine 1,060,218
Southlake 1,055,827
Keller 797,546
Roanoke 789,582
Westlake 154,766
Revenue Growth
Increasing the tax base to generate additional revenues is a major priority for both Town leadership and
residents, with the Town facing deferred maintenance requirements for its infrastructure. The Town’s
economic development prospects present a major opportunity to bring in new revenues largely in the form
of sales tax.
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The construction industry was a significant contributor to taxable sales during 2018-2020, which have
since declined in volume. Sales tax revenues have a relatively volatile pattern year-over-year due to one-
time bumps from new developments like data centers, demonstrating Westlake’s historical revenue
boosts due to one-time sales tax and fee revenues from new developments. Development in the Town is
slowing, along with associated fee revenue, and will continue to drop off as the amount of developable
land in the Town is reduced.
In this fiscal environment, the Town must balance the imperative for increased tax revenues with the
Town’s desire to preserve its low-intensity land use patterns. Typical large revenue producers like high-
intensity development centers and big box retail stores are not present in Westlake.
Vaquero Golf Club, historically a top sales generator in Westlake. (Baker Tilly photo)
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Community and Stakeholder Perspectives
While preparing the economic development plan, the team spoke with Town employees, residents, and
the developer community. Town employees who provided input included the Mayor, Town Manager,
Deputy Town Manager, and Planning Director. The team held two public meetings which included local
businesses, as well as a workshop with the Town Council.
A multi-day site visit was also held during plan preparation, which included a community tour via
automobile and helicopter of Westlake and surrounding communities, and conversations with Hillwood
and members of Town leadership.
Westlake has also conducted past large-scale planning efforts – most notably through a 2015
Comprehensive Plan – but the Town largely relies on short-range planning efforts.
Previous Planning Efforts
Westlake’s most recent comprehensive planning effort was completed in 2015. Though the plan is not
recent, the goals and sentiments of the Town and its residents appear remarkably similar to those
expressed today, evidencing that the Town has long been committed to preserving its semi-rural
character and way of life.
Stakeholder Interviews
Interviews with Town employees revealed that many roles that may typically be handled by separate
employees are often centralized in a single employee. Economic development activities are currently
handled by the Deputy Town Manager.
Town leadership anticipates a small amount of future population growth, estimating an additional 500 to
1,000 residents over the next five years. This is largely due to the Town’s desire for measured
intentionality in its growth, as was emphasized by residents in public meetings. Westlake leadership sees
a potential for some multi-family development to support the Town’s growth and revenue needs but
understands the importance of maintaining the Town’s character and low-density development pattern.
They identify the Town’s large daytime population due to its corporate campus presence as a competitive
advantage and major opportunity for growth and suggest that the Town explore ways to attract and retain
young professional employees in the community.
Certain portions of Hillwood’s highway-adjacent land ownership in the Town have been noted as a
potential regional destination opportunity, with other off-highway areas remaining locally oriented.
Leadership is focused on the need to boost revenues through sales tax as opposed to property tax. Town
leadership expressed the same priority on preserving view corridors as residents, and noted that town
center-type developments could also serve as open, communal spaces to complement Westlake’s prized
green spaces.
The Town’s development is mostly governed by Planned Development (PD) Districts, which according to
Town leadership has made it difficult to foster a cohesive identity for Westlake. Town leadership also
noted that the Town has lagged in commercial development relative to nearby towns and currently lacks a
clear long-term vision for its economic development, complemented by supporting policies and
procedures.
Town leadership also suggests that Westlake could leverage its corporate presence to support
entrepreneurship and innovation, noting that boosting commercial development to bring more people into
interactive spaces in the Town could support this goal.
Public Meetings
Westlake residents and business owners attended two in-person public meetings at the end of
September 2024, also attended by council members and the Mayor. Attendees answered poll questions
about the Town’s strengths, weaknesses, successes, and best features, as well as attendees’ desires for
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the Town’s future. Town leadership noted that citizens had not often been asked to contribute to the
Town’s vision and direction, making resident input critical to inform the Town’s economic development
plan.
Several questions during the meetings asked about the Town’s strengths and features residents love
about Westlake. In response to these questions, attendees repeatedly emphasized the centrality of
Westlake Academy to the Town’s identity and success. Features like “architecture,” “beauty,” and “open
space” were also commonly emphasized. In particular, residents emphasized the importance of not only
open space in general but of the view corridors across the Town strategically highlighting key
developments. A recent accomplishment contributing to the Town’s strength is the change in Town
leadership – several residents expressed renewed confidence in Town leadership since the new mayor
took office, citing a perceived stabilization of government. Several also mentioned the
attraction/expansion of corporate campuses like Charles Schwab and Deloitte.
When asked about their vision for the Town’s economic future, residents largely answered with
“sustainability” over the long term, with a focus on financial sustainability, demonstrating that residents
are aware of the Town’s financial challenges due to deferred maintenance needs and infrastructure
upgrades. The graphic below shows that residents see a need for more commercial development in the
Town to boost revenues. Residents’ most frequently cited priority for the next five years was substantially
increasing the Town’s funding and handling infrastructure maintenance requirements. Several residents
seemed to express a preference for funding infrastructure needs through impact fees rather than tax
increases. Residents also emphasized the need to preserve the Town’s character by pursuing growth
intentionally and mindfully and keeping the Academy at the center of the Town’s priorities. Residents
want to be able to live and play within the Town limits, citing a desire for things like restaurants and
grocery stores. One resident noted a lack of options for the Town’s substantial daytime population to eat
outside of office buildings. Residents want to see well-placed commercial development to support Town
revenues, but they repeatedly emphasized a careful consideration of where certain types of businesses
are placed within the community. Town leadership and residents would prefer high-end commercial
development, including luxury boutiques and high-end restaurants. One resident expressed a desire to
use the 170 corridor (particularly north of 170, which residents state has a different “feel” than the rest of
Westlake) to maximize tax revenue – overall, a preference for town center, mixed-use type development
in select locations throughout the Town, plus lower-end commercial north of 170 emerged as a trend.
As shown below, most residents favored a mixed-use, town center style for commercial development,
with attention paid to the aesthetics of the architecture. One resident pointed out the existence of “home
away from home” commercial centers in nearby towns filled with boutiques and other businesses people
might visit on a day out.
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Residents also expressed a strong priority for finishing Entrada and potentially turning this into a town
center over the next five years. Restaurants of all types and destination recreation were also desired
development types; most residents expressed that they would not like to see lower-end developments like
convenience, quick-trip, or big box retail in the Town. One resident also expressed opposition to
entertainment venues.
Most residents said they would not like to see additional residential development; however, when asked
what types of development would be acceptable (beyond single-family detached homes), residents said
brownstones/townhomes may be appropriate, depending on quality and how these properties age.
Questions geared toward business owners revealed that they were drawn to Westlake based on being
hired by developers building in the Town. The proximity to Dallas/Fort Worth International Airport was also
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mentioned. Meeting attendees also favored using additional incentive programs for business
development.
Community Survey
As part of the strategic planning process for the Town of Westlake, Baker Tilly developed and deployed
multiple surveys to obtain input from community members and Town/Academy employees, as well as
from the economic development/real estate community. The survey questions were developed by Baker
Tilly and were refined following discussions with the Westlake project team.
The community survey was advertised on the Town’s social media pages, website, and through email
communications with community groups. The survey was open from October 2-18, 2024. A total of 130
community members responded to the survey. This represents nearly an 80% confidence interval, using
a sample size based on the 2022 population estimate of 1,840 for the Town.
An email invitation was also sent to employees on October 2, and this survey closed on October 18,
2024. A total of 82 employees (53% of Town and Academy employees) responded to the employee
survey. Although we received only two survey responses from the economic development/real estate
community, this information is supplemented by insights gathered during the site visit.
The survey generally revealed similar patterns when compared to the public meeting surveys,
emphasizing the fact that preserving the look, feel, and experience of the Town is front-of-mind for many
residents and community members. Maintaining open spaces, vistas and well-designed buildings and
landscapes is of high importance to Westlake residents. There is recognition of the importance of
economic impact and a desire to maintain the high-quality standard of the Westlake experience in the
coming years.
Desired Development Types
When asked about the types of future economic development preferred in Westlake, 42% of survey
respondents from the community prefer “restaurants (fast casual, sit-down, high-end/boutique, etc.)” as
the primary type of new business to develop; this is followed by “town-center development, including
mixed-use, retail, housing, amenities, etc. (25% of respondents). Town of Westlake and Academy
employees expressed similar views.
Table 5. What types of business / what types of development would you like to see in Westlake?
Question 2. What types of businesses / what types of development would you
like to see in Westlake? (Respondents were given two choices) Community Employees
Restaurants (Fast casual, sit-down, high-end/boutique, etc.) 109 (42%) 43 (34%)
Town Center (Mixed-use, retail, housing, amenities, etc.) 66 (25%) 29 (23%)
Other options selected by survey participants
Other 27 (10%) 19 (15%)
Entertainment (Concert venue, cinema, etc.) 27 (10%) 12 (10%)
Destination Recreation (Income-generating sports and recreation attractions) 17 (7%) 11 (9%)
Convenience and Quick-Trip Retail (Gas stations, dry cleaning, etc.) 12 (5%) 2 (2%
Big Box Retail (e.g., Target, Walmart, Costco, etc.) 2 (1%) 9 (7%)
Totals 260 125
Types of Development Not Desired
Conversely, survey respondents were asked about the type(s) of businesses that should not be
developed in Westlake. Both residents (44%) and employees (42%) are averse to “big box retail (e.g.,
Target, Walmart, Costco, etc.).” “Convenience and quick-trip retail (gas stations, dry cleaning, etc.)” was
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the next highest percentage among the respondents; community members (28%) and employees (26%).
Respondents noted that these types of businesses are located close by in neighboring communities to
explain why these businesses are not desired in Westlake.
Table 6. What types of businesses do you NOT want in Westlake?
Question 3. What types of businesses do you not want in Westlake?
(Respondents were given two choices) Community Employees
Big Box Retail (e.g., Target, Walmart, Costco, etc.) 108 (42%) 47 (39%)
Convenience and Quick-Trip Retail (Gas stations, dry cleaning, etc.) 69 (27%) 29 (24%)
Other option selected by survey participants
Destination Recreation (Income-generating sports and recreation attractions) 31 (12%) 6 (5%)
Entertainment (Concert venue, cinema, etc.) 19 (7%) 13 (11%)
Other 16 (6%) 16 (13%)
Town Center (Mixed-use, retail, housing, amenities, etc.) 17 (6%) 6 (5%)
Restaurants (Fast casual, sit-down, high-end/boutique, etc.) 0 (0%) 4 (3%)
Totals 260 121
Future Economic Vision
Community and employees, Town Council and Town leaders have a distinct vision for the economic
future of Westlake. When asked about an economic vision for the future, survey respondents provided
themes summarized in the table below.
Table 7. What is your vision for the Town’s economic future?
# Community Themes Employee Themes
1 Bring middle- to high-end shopping, restaurants and
retail.
Support development and infrastructure.
2 Selectively attract new businesses that still preserve
small-town charm.
Identify ways to better fund Westlake Academy and
increase amenities around the Town.
3 Bring more local quality restaurants and high-end
amenities.
Increase revenue with the addition of restaurants and
retail.
4 Avoid introducing additional taxes. Leverage the Academy as a “selling point.”
5 Continue financial support to Westlake Academy. Continue to develop and expand the Westlake Academy
campus.
6 Address the Entrada development by strategically
sourcing the right businesses.
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Internal Policies and Procedures
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Internal Policies and Procedures
Westlake’s policies, procedures, and tools surrounding economic development are not well documented,
developed, and controlled. The Town’s economic development operations could be further
professionalized, and staff capacity is limited with individuals serving in multiple roles.
In order to implement the vision and goals the Town identifies via this economic development planning
effort, a suite of economic development policies, procedures, tools, and supporting human resources will
need to be developed to support the Town’s economic vision in a consistent, strategic, and transparent
manner.
Economic Development Tools and Best Practices
The Town of Westlake does not have policies or SOPs governing its use of economic development tools,
including incentives. However, the Town has executed economic development agreements on an ad-hoc
basis. Past agreements have, for example, waived land dedication obligations and trail construction
requirements in exchange for charitable donations, and granted tax abatements.
The Town has used commercial/industrial tax abatement reinvestment zones for its corporate campuses.
The Town approved an ad valorem tax abatement and reimbursement of sales taxes generated by
construction for at least one campus expansion. It is unclear whether the Town implements a “but for” test
for the award of incentives, which would dictate that incentives should only be used in situations where
they are a deciding factor for companies making investment decisions.
The Town has generally not pursued incentives for small businesses, but both Town leadership and
residents have expressed a willingness to consider creating such a program.
The Town also demonstrates a concern for sustainability. Town Code includes certain land dedication
requirements for dedicated parks or reserved public open space in connection with nonresidential
developments, meant to ameliorate or eliminate environmental impacts, buffer adjoining land uses, and
prevent undue concentration of paved areas.
As mentioned, zoning is typically implemented via Planned Development (PD) Districts. The Town has
expressed a willingness to simplify its zoning requirements to reduce barriers for developers.
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Strengths, Weaknesses, Opportunities, and
Threats (SWOT)
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Strengths, Weaknesses, Opportunities, and Threats
(SWOT)
When analyzing the economic, demographic, and real estate factors outlined in this report, as well as
community and stakeholder perspectives, the Baker Tilly team has identified the following strengths,
weaknesses, opportunities, and threats for the Town of Westlake’s economic development efforts.
Strengths
• Strong resident civic involvement with a healthy awareness of Town’s fiscal situation
• Large tracts of developable land remaining in the north/northwest area of the Town, which allows
for creative possibilities
• New Town leadership, with increased professionalization
• Strong Town aesthetic/natural beauty
• Corporate anchors bringing a large daytime population
Weaknesses
• Small resident population which must be supplemented by other sources of demand
• Low population growth potential
• Lack of a long-term vision for economic development
• Lack of internal infrastructure, like comprehensive policies, procedures, and tools for economic
development
• Opposition to certain commercial development types that could generate large tax revenues
• Opposition to multifamily development that could attract and retain young professionals
• Need for professional Town staff to support leadership and implement programs
• Lack of amenities for daytime population
• Need for new revenue to maintain fiscal sustainability of Town operations
• Planned Development zoning districts present barriers for developers
Opportunities
• Leveraging the daytime population as a distinct demand group to support additional commercial
development
• Implement development types strategically throughout different areas of the Town to define
Westlake’s identity and maintain the semi-rural character of the community
Threats
• Competing communities have taken advantage of historical regional growth through commercial
development, which may present competition to the success of development in Westlake that
attempts to attract a regional audience
• Mobility of corporate anchors
• Working through timeline and decision-making delays for development
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Strategic Priorities and Action Agenda
Westlake’s unique position on the suburban edge of the Dallas-Fort Worth metroplex positions it well to
leverage the ongoing economic activity and reinvestment being driven by new housing construction and
job creation. Because the Town holds a key asset in a substantial amount of developable land, it can
strategically position itself and craft a customized approach for its economic development efforts. This
approach can be framed as a mutually beneficial balance of value capture and value creation by investing
in its economic strengths and capitalizing on regional market activity. With respect to the Town’s need for
fiscal sustainability and economic resilience, a core set of strategies can guide future decision making
and the prioritization of projects for the benefit of the community.
Charles Schwab campus and adjacent highway-abutting developable land. (Baker Tilly photo)
To be successful in a strengthened position of economic resilience, the Town will need to pursue
simultaneous strategies to achieve goals of supporting new construction and development, maintaining
and enhancing community identity and sense of place, and effectively managing the development
services process to move at the pace of business. These strategies have a primary market focus of
economic diversification, while the community perspective seeks to maintain the Town as a desirable
place to live. Within this dynamic, real estate development can be used as a vehicle to elevate the Town
into a position of improved fiscal strength. Westlake has an opportunity to leverage demand from its
existing businesses as well as households in the surrounding region. Key considerations for these
strategies include:
• Create a balanced approach for the Town’s future by leveraging developable land to generate
new tax revenues while preserving community character;
• Harness the market potential of new household creation in the northern portions of the DFW
metroplex to support new housing development in limited portions of the Town;
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• Collaborate with the large corporate campuses to support new development that creates a
symbiotic relationship between the spending demand of employees and the delivery of new retail
amenities in mixed-use projects; and,
• Leverage visibility and access along Highways 114 and 170 to implement a placemaking initiative
that elevates Westlake as a community of choice.
Table 8. Strategies Matrix for Economic Diversification
No. Action Components & Considerations Relationship Building
Economic Development
1
Prioritize development sites along highway
corridors to pursue a mixed-use development
approach.
• Focus development on the visual line-
of-sight of Highways 114, 170, and 377.
• Leverage the highway’s visual element
to co-brand the projects with Westlake,
the developer, and major tenants.
• Highway development sites offer an
advertising opportunity for the Town to
distinguish itself in the market.
• Coordinate future development
and land use planning decisions
with Hillwood.
• Build relationships with real
estate brokers to anticipate
tenant needs and guide future
projects.
2
Leverage the employees and visitors of existing
corporate campuses to drive demand for new
development.
• Employees of major corporate users
present opportunities for value creation
in the Town’s economy.
• New development that responds to
employee demand creates value
capture for economic diversification.
• New projects should focus on delivering
uses that appeal to employees before,
during, and after work.
• Build relationships with the
existing corporate users to
identify future development
opportunities that align with
their needs.
• Conduct a survey of existing
employees to determine
potential levels of demand for
new uses.
3
Strategically position the Town as a prime
location for the new construction of corporate
campuses.
• Delineate future land use districts that
can accommodate corporate
campuses.
• Publish design guidelines and details
about the development review process
for future users and Hillwood.
• Coordinate with Hillwood to
manage expectations and
receive updates about potential
new projects.
• Establish development review
standards with Town staff and
elected officials to anticipate
future projects.
• Publish details about future land
use management for Town
residents to review and
understand.
4
Focus new development efforts on projects that
will drive tax base diversification.
• Focus on projects that will support and
strengthen Town revenue sources from
sales tax and ad valorem tax.
• Align land use management decisions
with the need for additional tax
revenue.
• Consider different development
patterns that create a higher density of
tax base, including mixed-use buildings,
walkable districts, and big box stores.
• Establish a review procedure for
Town staff and elected officials
to estimate potential new taxes
derived from proposed projects.
• Align future land use
management and development
services review with potential
anticipated projects.
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No. Action Components & Considerations Relationship Building
5
Emphasize an increase in the intensity of
development patterns to support the financial
viability of projects for both developers and the
Town.
• Dense design patterns support a mix of
uses and can create multiple revenue
sources for project pro formas.
• Density can be measured with lot
coverage and dwelling units per acre.
• New development patterns can focus
on mixed-use programming that
includes housing, retail, amenities, and
entertainment.
• Housing can include luxury multi-family
and condos in the form of townhomes,
brownstones, and stacked flats.
• Development impact fees can cover the
additional infrastructure and other costs
incurred by the Town as a result of new
developments.
• Coordinate with Hillwood to
align their housing prototypes
with Town design standards.
• Clarify Town design standards
internally with staff and elected
officials to directly manage
expectations with developers
and remove ambiguity from the
decision-making process.
Community Building & Identity
6
Develop placemaking priorities for key locations
in the Town to establish activity centers and a
visual identity.
• Identify future development areas in the
Town and align land use management
goals and decisions with those
locations.
• Leverage future development at key
locations to create activity centers and
focal points.
• Focus on branding opportunities along
the highway corridors to create visual
prominence for the Town.
• Consider mixed-use, walkable districts
with a higher intensity of development
at key locations, which can be
anchored by big box retail, hotels, or
another large user.
• Align future land use
management decisions with a
higher intensity development
pattern at certain locations.
• Align Town staff and elected
officials to future land use
decisions and how a
development services review
will consider potential
anticipated projects.
7
Develop a common design standard and
aesthetic for the Town to guide developers and
their proposals.
• Develop and publish design standards
to manage expectations about the
visual aesthetic of new development
and how projects will be reviewed by
Town staff and elected officials.
• Clarify acceptable use types and space
programming layouts to manage
building massing and density.
• Balance aesthetic expectations with
project economics to not over-design a
project and make it infeasible.
• Align Town staff and elected
officials on design standards
and their role in the
development review process.
• Publish the design standards for
easy access by developers and
residents.
8
Create opportunities and events to engage the
community in civic spaces. • Integrate public gathering spaces into
new development to host community
activities.
• Co-brand these civic spaces with the
developer and tenants to market the
Town.
• Consider developing a regular schedule
of activities to offer community
gathering opportunities.
• Coordinate with developers to
encourage the incorporation of
public space into projects.
• Leverage Town staff to assist in
managing community events.
• Coordinate with the Metroport
Chamber to host events.
Town Development Services
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No. Action Components & Considerations Relationship Building
9
Publish materials that describe the Town’s
development review process to assist
developers in managing new projects.
• Develop and publish online materials
that establish a step-by-step guide that
outlines the development review
process.
• Leverage the guide to manage
expectations of developers and clearly
communicate Town regulations.
• The guide should remove ambiguity
from the decision-making process and
establish clear guidelines.
• Coordinate with Town staff to
develop the guide.
• Publish the guide on the Town’s
website and regularly maintain it
for accuracy.
10
Develop and maintain a standard process to
review incentive requests for developers and
corporate users for financial assistance.
• If the Town wishes to expand its
incentive offerings, it should establish a
standard process for reviewing
requests.
• The standard process should include
application materials, a scoring or
evaluation rubric, and a standardized
review and approval/denial process.
• Potential incentive offerings should be
structured and offered to companies in
a substantially similar way.
• Ambiguity and arbitrary decisions
should be removed from the process.
• Coordinate with Town elected
officials about their willingness
to offer incentives.
• If Town elected officials support
the idea, work internally with
staff to build the processes and
procedures.
11
Conduct ongoing community engagement about
new development and capital infrastructure to
help guide decision making.
• Continue to maintain existing
community engagement efforts with
Town residents about new updates.
• Conduct focused engagement efforts
for potential new projects to solicit
feedback about proposals.
• Designate Town staff to
manage the engagement
efforts.
• Provide regular updates to
Town elected officials about
feedback received.
• Consider using an online tool,
like Social Pinpoint, to make
feedback publicly available.
Westlake, TX
Economic Development Plan Report
Conclusion
26
Conclusion
The Town of Westlake has a significant opportunity to promote its unique character and brand while
bringing in additional Town revenues and providing for the needs of its residents. These opportunities will
be best leveraged through partnerships with existing stakeholders in the Town, including corporate
campus partners and major landowner Hillwood, in alignment with the Town’s priorities and resident
preferences. The Town should also think of its regional context as a contributor to its goals and growth;
leveraging demand from continued regional household growth in combination with the corporate campus
daytime population within Westlake’s bounds will contribute to a strong economic base.
The Town has demonstrated a strong priority on balancing the maintenance of Westlake’s natural beauty
and community identity with the need for strategic growth in areas that will both enhance this identity and
bring in new Town revenues. The strategies recommended in this report effectively balance these dual
priorities, supported by a robust internal infrastructure and suite of tools to achieve both ends.