Page 18 - Colleyville FY19 Budget

Furthermore, the city’s bond ratings are evidence of Colleyville’s financial strength.
Currently, all debt obligations of the City are rated AAA by Fitch Ratings and Standard
and Poor’s. In 2009, the City received an upgrade in its general obligation bond
rating from AA+ to AAA from Standard and Poor’s. Strong tax base growth coupled
with a low tax rate, strong financial performance, and substantial cash balances were
the primary reasons for the bond rating. These credit ratings for outstanding debt
mean the City’s bonds are considered to be of superior investment quality, resulting
in lower interest payments for the City.

STORMWATER DRAINAGE UTILITY FUND

In 1993, the City Council adopted a monthly fee assessed on residential and
commercial utility billing accounts for stormwater management. The Stormwater
Drainage Utility Fund supports the operation and maintenance of the City’s drainage
system and complies with federally mandated requirements for stormwater systems.
It is a proprietary fund type.

This fund is designated to maintain streets, sewers, and drainage ditches to manage
runoff from commercial and residential development, including related personnel and
operating costs.

The fund is projected to receive revenues of $972,448 in fiscal year 2019, primarily
from the collection of the monthly fee. Annual debt payments for the outstanding
bonds are $125,670. The remaining funds support personnel and other operational
costs. The Primary focus in fiscal year 2019 will be the completion of the stormwater
master plan. The master plan will help determine priorities for future projects.

SPECIAL REVENUE & CAPITAL PROJECT FUNDS

The City Council continues to be innovative in evaluating financing options for various
City programs. Use of special revenue funds and capital project funds include:

Colleyville Tax Increment Financing (TIF) District
The Tax Increment Reinvestment Zone (TIRZ) District, also known as the TIF, was
created in 1998. The primary goal of the district is to encourage quality commercial
development in the city by using ad valorem revenues from property value growth
since the creation of the district, within the district for infrastructure improvements
and economic development. The district boundaries predominately occupy property
located along State Highway 26, comprising 633 acres of land area. The base value
for the district was $75,821,735 in 1998. Incremental values subsequent to January
1998 are taxed at the City’s adopted property tax rate. However, the ad valorem
revenues are utilized to spur economic development within the district rather than
being allocated to the City’s overall budget.

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