Page 15 - Colleyville FY19 Budget

The primary source of income for the City is property taxes, accounting for 59 percent
of total revenue. The biggest budgetary issue in preparing the annual budget is the
setting of the property tax rate. Once the roll is received in late July, the tax rate is
determined by the debt rate needed to pay for the City's bonded indebtedness and
funds needed for maintenance and operation funding in the General Fund.

The Tarrant Appraisal District has certified Colleyville’s property valuations for 2018
at $5,456,363,643, and includes $56,566,730 in new construction. This represents
an increase of $390,620,344 (7.7%) over the current year's taxable valuation of
$5,065,743,299, per the July 25, 2017 certified values. The total taxable value
includes TIF zone property, which has a combined taxable value increment of
$404,429,378 (TIF Zone #1 adopted in 1998- $392,404,701 and TIF Zone #1A
adopted in 2012- $12,024,677). The final TIF value is subject to change, as valuation
is still under appeal. This represents an increase of $31,555,459 (8.5%) over the
current year TIF valuation of $372,873,919.

The fiscal year 2019 budget includes a property tax rate of $0.320800 per $100
value. The tax rate is comprised of an operation and maintenance rate of $0.303764,
and an interest and sinking rate of $0.017036. The latter component provides funding
for retirement of the annual debt obligations.

The following table provides historical information on the City’s tax rate, average
residential property value, and average property tax payment.

Average Average
Budget Residential Property Property Tax
Year Property Value Tax Rate Payment
2011 $397,472 $0.3559 $1,414.60
2012 $396,817 $0.3559 $1,412.28
2013 $397,889 $0.3559 $1,416.09
2014 $406,040 $0.3559 $1,445.10
2015 $421,497 $0.3559 $1,500.11
2016 $423,650 $0.3559 $1,507.77

2017 $460,461 $0.33913 $1,561.56
2018 $500,748 $0.33383 $1,671.67
2019 $521,831 $0.320800 $1,674.03

Sales Tax
The second major financial consideration guiding development of the budget is the
growth of sales tax revenues. The City collects a total two percent sales tax: one
percent for General Fund with the remaining one percent allocated for two half-cent
special purpose districts. Sales tax growth was expected to slow due to the
reconstruction of SH26, which is the city’s primary commercial corridor, but activity
has surpassed expectations with growth of around 4 percent in fiscal year 2018. Sales
tax has been budgeted conservatively with two percent growth for fiscal year 2019,
and limited growth in future years, until reconstruction has been completed.

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