Page 13 - City of Colleyville FY22 Adopted Budget

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.

As fortunate as the City has been throughout the pandemic, Colleyville isn’t without
its revenue issues. Among them is a marked increase in the number of properties
that qualify for a property tax exemption. While Colleyville does not currently have a
homestead exemption as some surrounding areas do, the City does offer a property
tax exemption for citizens aged 65 and older. When applied, this exemption discounts
the taxable value of the residence by $65,000 and subsequently freezes the tax bill
owed on the property for as long as the exemption is in place. Growth in the amount
of exempt properties each year further suppresses any total assessed value growth,
reducing the amount the City can raise from its tax rate. Over a ten-year period,
these exemptions went from being 11% of the total assessed value to 23.5% as of
the most recent assessment. For a City that prides itself on keeping its property tax
rate low, this trend will continue to present a challenge.

$7,000,000,000
$6,000,000,000

$5,000,000,000
$4,000,000,000

$3,000,000,000
$2,000,000,000

$1,000,000,000
$-

Non-Exempt Values Exempt Values

There are two other revenue pressures facing Colleyville, one of which began in FY
2020 and will continue forward. First, the proposed budget accounts for H.B. 3535
which was approved by the Texas Legislature during the 84 Legislative Session. This
th
legislation will significantly reduce franchise fee revenue by allowing companies that
provide telecommunications and cable or video services to pick whether they want to
pay telecommunications franchise fees or cable/video franchise fees, but not both.
The City has already experienced a decline in this franchise fee revenue, which
peaked in FY19 at almost $2.3 million and is projected to bring in close to $2 million

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