Page 19 - FY2020Colleyville

Drainage Utility Fund supports the operation and maintenance of the City’s drainage
system and complies with federally mandated requirements for stormwater systems.

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 $978,640 in fiscal year 2020, primarily
from the collection of the monthly fee. Annual debt payments for the outstanding
bonds are $131,506. The remaining funds support personnel and other operational
costs. The TIF funded a stormwater master plan that will conclude in fiscal year 2020.
The Drainage Utility Fund could fund some of the prioritized recommendations from
that master plan in coming years.

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.

Overlapping taxing entities, including Tarrant County College District and the
Grapevine-Colleyville Independent School District participate at varying levels in the
district by assigning their ad valorem tax dollars. Tarrant County and the Tarrant
County Hospital District are no longer participating in contributing to the TIF as their
commitment level has already been met. In November 2012, the TIF was amended
to expand boundaries to include mostly additional vacant, underutilized land and
some commercial property. The additional area added is called TIF #1A, as compared
to the original area that is called TIF #1, and had a base value of $30,796,078.

The total taxable value includes TIF zone property, which has a combined taxable
value increment of $438,771,640 (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 $34,342,262
(8.5%) over the current year TIF valuation of $404,429,378.

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