Page 12 - Colleyville FY21 Budget

was guided by the priorities outlined in the City of Colleyville’s Strategic Plan. Every
new effort and element of the City’s budget, including existing programs, is tied to
one or more of these goals, strategies, and objectives.

Issues & Challenges

Colleyville benefits from a strong residential base, which helps mitigate the negative
effects of economic fluctuations. Property values had been experiencing tremendous
growth in the last several years, although the City’s 2020 certified values saw a more
modest increase of 2.2%. This modest showing appears to be a symptom of a more
conservative approach to property appraisals by the Tarrant Appraisal District, as
municipalities all over the County experienced it. However, although Colleyville is
close to build-out, the City did enjoy over $70 million in new property value, most of
which is located outside of the Tax Increment Financing District. One of the City
Council’s highest priorities has been minimizing the tax burden of our citizens. As
such, careful consideration is given to the amount of revenue (and associated tax
rate) needed, as opposed to simply maintaining a tax rate that brings in additional
revenue due to increased property values. The City Council’s budgeting strategy is
that any tax rate above the no-new-revenue rate (i.e. that brings in more revenue
than the prior year, excluding revenue from new construction) must be fully justified
for specific programs or services. For FY21, Council was able to set a rate below the
no-new-revenue tax rate due to conservative management and a deep analysis of
the Tarrant Appraisal District’s tax calculations.

Sales tax is the second largest General Fund revenue source. The City’s primary
commercial corridor, Colleyville Boulevard (SH26), recently completed its
construction (expanding from four-to-six lanes with medians), and the City will
undergo beautification efforts in the next budget year. Fiscal year 2021 sales tax is
projected to see a modest, 1.5% increase compared to the fiscal year 2020 budget.
However, while the effects of the COVID-19 pandemic have resulted in major
difficulties for area businesses, Colleyville’s sales tax revenue has surprisingly
increased dramatically through the last half of the fiscal year. It is certain the City
will exceed initial revenue expectations, and this effect could continue through the
next fiscal year. The City has a history of being proactive and creative in supporting
local establishments during business interruptions, whether those interruptions come
from construction or factors outside of the City’s control. During the SH26
construction, staff created quarterly promotional programs that were extremely
successful in encouraging citizens to shop locally. Similar programs were utilized
throughout the COVID pandemic, and they were well-received by citizens and
businesses alike. We do not create programs to receive awards; however, it is
important to note that these efforts have been lauded by the Texas Municipal League
and the Texas Economic Development Council for their creativity and innovation.

Colleyville continues to prioritize and address the City’s critical infrastructure
including streets, water, wastewater, sidewalks/trails, and parks. This budget
includes a robust 5-year Capital Improvement Plan (CIP), completely funded with
cash, to insure infrastructure is maintained and built new where needed to maintain
an exceptional quality of life for residents and businesses.

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