Page 65 - CityofColleyvilleFY23AdoptedBudget

as the health insurance deductible reimbursement program are able to be absorbed without needing any additional
property tax revenue. Helping this effort is Colleyville’s 2023 health insurance re-rate, which showed no increases in
insurance costs.

Expands public safety ser vices
Public safety continues to be one of the community’s highest priorities and this budget expands funding for the high
level of services Colleyville citizens expect. The scal year 2023 budget includes funding for 44 sworn police of cers, 13 of
whom are funded out of the Colleyville Crime Control and Prevention District (CCCPD) budget (funded by a ½ cent sales
tax). Additionally, the City has agreed to create 6 new School Resource Of cer positions to help ensure the safety of
Grapevine-Colleyville ISD students and facilities. When possible, the City will continue to move of cers from the General
Fund into the CCCPD fund. The City’s strategy is to fund police of cers and services from CCCPD as opposed to capital
items to connect the sales tax approved by the voters to direct public safety. This strategy has the added bene t of
reducing reliance on property tax.

Makes long-term plans for adjusting the Utility Capital Improvement Plan rate in order to fund 5-year CIP
In 2017, the City Council voted to create a new component of the City’s utility rates dedicated solely to funding capital
projects. The rate is tiered based on meter size and as of FY22 yields approximately $780,000 in revenue each year. In past
years, the City had built up a substantial cash balance in the Utility Fund, and these ample reserves have been used to
pay for the majority of the projects. Because this excess balance is projected to run out in the coming years, Council has
begun adjusting the CIP rate incrementally to provide for adequate capital project funding. This rate was increased to
$5.83 per month for the smallest meter sizes in FY22, and no adjustment is necessary for FY23.

Includes investment in and replacement of the City ’s infrastructure
Year 1 ( scal year 2023) of the City’s 5-Year Capital Improvement Plan (CIP) includes over $27 million in projects to replace
aging infrastructure, both above and below ground. These projects include street rehabilitation and reconstruction, water
line replacements, park improvements including a new restroom facility and security enhancements, and reinvestment
in City facilities such as City Hall, the Colleyville Library, Central Fire Station, and the Justice Center. The CIP also includes
funding for drainage improvements and sidewalks/trails. Ensuring that these community assets are well maintained is
and will continue to be a high priority. These projects are all fully-funded with cash that is currently available or with
revenues projected to be received during this time period. While the City is planning to issue new debt for the purchase
and renovation of property for a new recreation center, the City does not plan to heavily rely on debt nancing for the
future.

Fur thers beauti{cation effor ts throughout the community
The scal year 2023 budget also provides funding to further beauti cation efforts throughout the community. This
includes improvements to pedestrian crosswalks and roundabouts, as well as landscaping and street lighting. Funding is
also included to complete the installation of towers at the City’s northern gateway along the SH26 corridor. The City
recognizes that this corridor is truly Colleyville’s main street, and the look and feel should be re ective of the exceptional
quality found throughout Colleyville.

Issues & Challenges

Colleyville bene ts from a strong residential base, which helps mitigate the negative effects of economic uctuations,
such as those we have seen recently. Property values all over Texas has been experiencing tremendous growth recently,
and Colleyville is no exception. While the City is close to build-out, Colleyville did see close to $60 million in new property
growth in both the current year and previous year, most of which is located outside of the Tax Increment Financing
District. One of the City Council’s highest priorities has been minimizing the tax burden of our citizens, so this new
growth is crucial to maintaining that goal. Each year, careful consideration is given to the amount of revenue (and
associated tax rate) needed, as opposed to simply maintaining a tax rate that brings in additional revenue due to
increased property values. The City Council’s budgeting strategy is that any tax rate above the no-new-revenue rate must
be fully justi ed for speci c programs or services. For reference, the no-new-revenue rate is a tax rate that aims to keep
the average property owner’s tax bill static from year-to-year, meaning only brand new property that didn’t exist in the
previous year can result in new revenue. Fiscal Year 2023 represents the fth consecutive scal year in which the budget
is funded with the no-new-revenue tax rate.

City of Colleyville | Budget Book 2023 Page 65