Page 13 - CityofColleyvilleFY23AdoptedBudget

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 th
Legislative Session. This legislation will signi cantly 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 subsequently declined to almost $2.1 million in FY22. Staff has
conservatively budgeted for this revenue going forward. The second issue re ected 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 2023 Focus
The adopted budget accomplishes a number of priorities, including the following highlights:

Maintains a low tax rate

2022 certi ed values increased 10.2% in total compared to 2021 certi ed values. The scal year 2023 proposed budget
includes a proposed tax rate of $0.265618/$100 of valuation, a $0.02616 reduction from the current $0.291778 tax rate.
This marks the {fth 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 scal year 2023 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 nancial 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 speci{c expenditures with restricted funds

City of Colleyville | Budget Book 2023 Page 13