Page 119 - CityofColleyvilleFY25AdoptedBudget

Commentary on Available Funds
The TIF Fund began FY 2024 with a negative balance of $3.2 million and is projected to reduce the de cit to $290k by
9/30/2024 before increasing to a larger de cit of $8.7 million by 9/30/2025. This fund is primarily funded through property
tax increment revenue, a stable and increasing source driven by rising appraised values. As the TIF is set to expire in 2030,
the City is collecting these funds to support capital projects, economic development, and operational initiatives within
the zone.

Revenue
The TIF Fund is solely supported by property tax increment revenue, which remains a stable and growing source as
property values within the TIRZ continue to rise. These revenues are highly collectible and are projected to remain stable
through the TIF’s expiration in 2030.

Expenditures
The TIF Fund supports both operating, economic development, and capital expenditures within the TIRZ. The FY 2024
budget includes $975k in capital projects, while FY 2025 sees a signi cant increase with $12 million in capital outlays,
primarily driven by the Hero’s Park project ($7 million commitment). Additionally, the TIF funds the City’s gift card
program, several smaller economic development grants, and a new $900k annual contribution to Grapevine-Colleyville
ISD for the School Resource Of cer (SRO) program, starting in FY 2025 and continuing through the TIF’s expiration in
2030.

Fund Balance & Reser ve Policy
The TIF Fund operates without a speci c target reserve, as it is designed to be fully spent down by the end of the TIF’s life
in 2030. The current negative fund balance is due to signi cant capital commitments, with the de cit projected to
increase further in FY 2025. The City has strategically borrowed funds from other Colleyville funds instead of issuing debt,
reducing the cost to taxpayers. As the TIF owns land held for sale, the City anticipates future proceeds from land sales and
incremental tax revenues will help bring the fund to a zero balance by 2030.

Future Considerations
The TIF has been highly successful in funding critical capital improvements and driving economic development within
the district. However, as the TIF approaches its expiration in 2030, discussions will be needed regarding how to handle
expenses currently funded by the TIF. If the TIF is not extended or renewed, some expenses may need to shift to the
General Fund, potentially leading to tax increases or service reductions. Additionally, the expiration will limit the City’s
ability to cash-fund large-scale infrastructure projects, increasing the likelihood of future debt issuance for such projects.
The City has several years to explore sustainable strategies for transitioning after the TIF’s expiration.

Another option to be explored is extending the life of the TIF, although this would be at reduced participation levels since,
under current state law, GCISD would no longer be eligible to participate.

Summary

The City of Colleyville is projecting $6.06M of revenue in FY2025, which represents a 0% increase over the prior year.
Budgeted expenditures are projected to increase by 0% or $2.47M to $2.47M in FY2025.

City of Colleyville | Budget Book 2025 Page 119