Page 253 - City of Colleyville FY22 Adopted Budget

Overview

In keeping with the City’s focus to sustain and plan for Colleyville’s long-term needs, the fiscal year 2022
budget includes the City’s 5-Year comprehensive Capital Improvement Plan (CIP). This plan identifies
planned projects for the next five years, based on funding availability, and a schedule for completion.
Capital projects are defined as those projects requiring an investment of $50,000 or more and that have
a useful life of at least five years. The CIP provides an opportunity to consider all of the city’s capital needs
in the coming years and determine the priority of each, as well as whether available funding resources are
sufficient to support those expenditures.

The Capital Projects Fund itself has no dedicated revenue source; any income received is from transfers
from other funds, to set aside funding for capital projects that are often multi-year in nature and not
appropriate for an annual operating budget. It is also the holding place for street impact fees, perimeter
street fees, and other escrows until they are used for eligible purposes. Similarly, the Utility Capital
Projects Fund (created in FY 2017) receives funding from transfers from surpluses from the Utility
(operating) Fund and revenue from the Utility Capital Projects base rate on utility bills, for use on utility
capital projects. It is also the holding place for water and wastewater impact fees, until they are used for
eligible utility capital projects. The 5-Year CIP utilizes a variety of funding sources including the City’s major
operating funds, capital projects funds, special revenue funds, and other entities such as the state and
regional grants.

Project descriptions also include information relating to any anticipated operating costs associated with
the capital project, however, most capital projects do not require any new operating costs if they are
primarily improvement to or replacement of already existing infrastructure.

Capital Revenue Sources and Strategy

The Capital Improvement Plan is simply that – a plan. As such, projects are subject to change based on
new or shifting service needs, special financing opportunities, emergency needs, or other directives or
priorities established by the Mayor and City Council. Because priorities can change, projects included in
outward planning years are not guaranteed for funding. All budgets are constrained by available revenues.
Capital projects are prioritized so that available funds are allocated based on need, Council priority, and
their impact on service provision. The 5-year Capital Improvement Plan includes funding for a variety of
City projects.

Pay as you Go – Capital Projects Fund, Capital Utility Fund, and Drainage Fund

Whenever possible, pay-as-you-go (“operating revenue” or “Transfer from --- Fund”) funding is the
preferred method of funding CIP projects. These funds provide for a majority of the street maintenance
projects as well as drainage and utility related projects.

Colleyville Economic Development Corporation (CEDC)
The Colleyville Economic Development Corporation (CEDC) is funded by a one-half cent sales tax approved
by voters in 1996. The ballot language states that the sales tax will "provide for parks and park facilities, a
library, a community center, open space improvements, and other facilities and improvements only as
authorized by Section 4B of Article 5190.6" of the Local Government Code.

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