Page 14 - City of Colleyville FY22 Adopted Budget

by the end of FY20. The second issue reflected in this budget is Colleyville’s approach
toward residential build-out, which necessitates transitioning to more of a
redevelopment and rehabilitation focus. This transition is poised to reduce building
permit and associated development fee revenue in the coming years.

Priorities and Fiscal Year 2022 Focus
The adopted budget accomplishes a number of priorities, including the following
highlights:

• Maintains a low tax rate

2021 certified values increased 4.1% in total compared to 2020 certified values.
The fiscal year 2022 proposed budget includes a proposed tax rate of
$0.291778/$100 of valuation, a $0.01259 reduction from the current $0.304365
tax rate. This marks the fourth year that Colleyville has adopted the
calculated no-new-revenue rate, meaning that the City’s property tax rate is
adjusted downward as property values increase. This is designed to keep
taxpayers’ bills from increasing on average, with the City instead relying on the
tax revenue from new property developments to fund budget increases.

• Provides a balanced budget

The fiscal year 2022 proposed budget is a balanced budget, consistent with both
the City’s Charter and state law requirements. Operating expenditures are funded
with operating revenues. Operating funds maintain a fund balance above the 90-
day reserve at all times, as required by the City’s financial policies. The City’s
practice is to a maintain fund balance of at least 100 days, which is accomplished
in the proposed budget.

• Better aligns specific expenditures with restricted funds

As with each year, staff examined the budget line-by-line in an effort to place
expenditures in the most appropriate fund. Last year, this effort led to the
identification of three full-time positions currently being funded in the General
Fund that should be contained in the Hotel Tax and Colleyville Economic
Development Corporation (CEDC) funds. The restrictions on the Hotel Tax Fund
are that expenditures must be limited to (1) efforts to attract guests to our hotel
industry and (2) seven other specific stipulations, one of which is to advertise the
City to individuals and businesses. Staff identified the following positions as being
qualified for this funding source: the Community Relations Specialist whose job is
to advertise Colleyville, and the Colleyville Center Manager who spends
approximately 60% of her time on wedding-related activities at the City-owned
Colleyville Center.

Restrictions on the CEDC Fund expenses include parks and park facilities, our
library, our community center, open space improvements, and other facilities and
improvements. From this, staff determined that Colleyville Center’s Sales and

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