Page 23 - Colleyville FY21 Budget

the Colleyville Center Manager and its Sales and Event Specialist. Because all or part
of these positions are dedicated to advertising the City and bringing guests in from
out of town, they meet the state’s tourism requirement for hotel taxes, allowing the
City to shift the costs away from the General Fund. This reliance on restricted revenue
sources for operational costs is part of the City’s ongoing initiative to keep its property
tax rate as low as possible.

This fund is budgeted to bring in $237,500 in anticipated revenue while spending
$327,000, requiring the use of just under $90,000 in fund balance for non-recurring,
special event related expenses.

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 $450,961,761 (TIF Zone #1 adopted in 1998- $435,298,848 and
TIF Zone #1A adopted in 2012- $15,662,913). The final TIF value is subject to
change, as valuation is still under appeal. This represents an increase of $12,190,121
(2.8%) over the current year TIF valuation of $438,771,640.

Colleyville Crime Control and Prevention District (CCCPD)
The primary goal of the district is to fund public safety and crime control activities
throughout the city. The district was created by voter approval in 1999, with oversight
of funds assigned to the board of directors, composed of the City Council. State law
provides that a district’s life is limited to five years, unless voters continue the district
by approval of a referendum. In September 2003, Colleyville voters approved
continuation of the district for an additional 20 years.

Expected revenue from the 0.5 percent special purpose sales tax, use of funds
generated from prior years’ coverage ratio, and related interest income for the CCCPD

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