Page 20 - CityofColleyvilleFY23AdoptedBudget

STORMWATER DRAINAGE UTILITY FUND

In 1993, the City Council adopted a monthly fee assessed on residential and commercial utility billing accounts for
stormwater management. The Stormwater Drainage Utility Fund supports the operation and maintenance of the
City’s drainage system and complies with federally mandated requirements for stormwater systems.

This fund is designated to maintain streets, sewers, and drainage ditches to manage runoff from commercial and
residential development, including related personnel and operating costs.

The fund is projected to receive revenues of $1,045,000 in scal year 2023, primarily from the collection of the monthly
fee. The nal annual debt payment for the outstanding bonds were paid off in scal year 2021, making this fund debt
free. The Drainage Utility Fund has substantial capital improvement plans that were identi ed from the stormwater
master plan that concluded in FY20. All improvements speci ed in the plan will be paid for through cash.

SPECIAL REVENUE & CAPITAL PROJECT FUNDS

The City Council continues to be innovative in evaluating nancing options for various City programs. Use of special
revenue funds and capital project funds include:

Hotel Tax Fund
In 1998, Colleyville City Council passed an ordinance establishing a hotel occupancy tax equal to 7 percent of the
lodging cost of a hotel room within city limits. Texas state law mandates that the revenue derived from this tax must
only be used for expenses that promote the tourism industry, including (but not limited to) convention/civic center
facilities, general promotional and tourist advertising for the City, and the encouragement, promotion, improvement
and application of the arts. Although authorized in 1998, the City did not have a hotel within its boundaries until 2017.
Since that time, all revenue derived from the tax has been used on non-recurring expenses relating to special events.
However, beginning in scal year 2021 the City allocated operating costs to this fund as authorized by state law. This
includes a signi cant portion of the City’s advertising expenses as well as personnel costs for Colleyville’s Community
Relations Specialist and partial personnel costs for 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 $275,000 in anticipated revenue while spending $273,569.

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.

City of Colleyville | Budget Book 2023 Page 20