Page 392 - CityofColleyvilleFY23AdoptedBudget

5-Year Capital Improvement Program Overview

In keeping with the City’s focus to sustain and plan for Colleyville’s long-term needs, the scal year 2022 budget includes the
City’s 5-Year comprehensive Capital Improvement Plan (CIP). This plan identi es planned projects for the next ve years, based
on funding availability, and a schedule for completion. Capital projects are de ned as those projects requiring an investment of
$50,000 or more and that have a useful life of at least ve 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
suf cient to support those expenditures. Projects are identi ed by members of the Colleyville Leadership Team (predominately
the City's Parks Director and Public Works Director), the City Manager's Of ce, and members of the Council. After City
Management and Finance incorporate all necessary projects into the 5-year program refresh, Council then reviews this plan in
early July of each year. It is then passed with the operating budget in October.

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 nancing 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 librar y, a
community center, open space improvements, and other facilities and improvements only as authorized by
Section 4B of Ar ticle 5190.6" of the Local Government Code.

Impact Fees
Transpor tation, water, and wastewater impact fees are collected throughout the City. These impact fees can only
be spent in the Ser vice Area they were collected and/or the speci{c CIP project identi{ed in the impact fee study.
Tax Increment Financing (TIF) District Fund
Projects included in the original and amended TIF plan are funded through this fund.

Third Par ty Par tnerships
Funding for various improvements is provided by external sources or third par ties. These work effor ts are usually
associated with individual projects and programs and are developed on a project/program basis. The City
continues to aggressively pursue federal, state, and regional grant funding, and have been successful in many of
these effor ts.

City of Colleyville | Budget Book 2023 Page 392