Page 72 - CityofColleyvilleFY23AdoptedBudget

The City of Colleyville’s operational budget is encapsulated in 7 different funds,
each with different restrictions.
The General Fund is the least restrictive of these funds, making it the most
heavily utilized. This fund touches almost every department in the City and
is funded primarily through property and sales taxes. Other revenues, such
as general nes, building permits, franchise taxes, and intergovernmental
agreements with the City of Keller and Grapevine-Colleyville ISD also
contribute.
The Utility Fund is designed to operate as a stand-alone enterprise, with
revenues being paid through utility rates that are suf cient to cover all costs
contained herein. Oftentimes, many cities will charge its utility fund a
franchise fee, resulting in a large payment from the utility fund into their
general fund, but Colleyville chooses not to operate this way. The Utility
Fund does, however, pay its share of internal services, such as human
resources, nance, city management, and information technology, resulting
in a transfer into the General Fund of approximately $325,000. By and large,
though, this fund solely pays for water and sewer utility services.
The Debt Ser vice Fund is funded predominately through property taxes
which are legally obligated to pay the City’s debt payments. These funds are
legally unable to be used for any other purposed. In future years, the City’s
Tax Increment Financing Zone (TIRZ) is anticipated to assist with paying for
the new 2022 Certi cates of Obligation.
The Drainage Utility Fund essentially operates just like the City’s Utility
Fund, albeit for stormwater and drainage issues rather than water and
wastewater treatment. It is funded through monthly charges levied on each
customer’s water bill.
The Hotel Tax Fund is funded by taxes on any lodging costs inside City
limits, and is one of the most restricted funds in the City. Legally, these
dollars can 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.
The Crime Control and Prevention District Fund was created by voter
approval in 1999, with oversight of funds assigned to the board of directors,
composed of the City Council. Funded through a half-cent sales tax levied
All Funds
on all sales sourced within city limits, funds here are only permitted to be
Summary
utilized on police expenses. This fund is up for another 20 year continued
authorization through general vote in 2023.
The Colleyville Economic Development Corporation Fund was also
created by voter approval in 1996, with oversight of funds assigned to a
board of directors. This additional half-cent sales tax is dedicated to
municipal park improvements, the purchase of land and equipment for
parks, and for the construction and operation of a community center and
library. Consistent with state law, some funds may be allocated by the board
of directors for promotional efforts for special events and marketing.
A breakdown of each fund along with its revenue streams and operational
responsibilities are as follows (please note that any surplus balances left over at
year's end in the General, Utility, and Drainage Utility Funds will be moved into
the City's ve-year capital improvement plan):

City of Colleyville | Budget Book 2023 Page 72