Page 127 - CityofColleyvilleFY25AdoptedBudget

Property Taxes Summary
Property taxes are the largest revenue source for the City of Colleyville's governmental funds, essential for funding
general city services, including public safety, public works, and leisure services. The City bene ts from a strong
residential base, which provides stability and helps mitigate the negative effects of economic uctuations. In recent
years, property values across Texas have experienced signi cant growth, and Colleyville is no exception.

The Tarrant Appraisal District (TAD) is responsible for assessing property values in Colleyville, while the City has a
contract with Grapevine-Colleyville Independent School District (GCISD) to collect property taxes on its behalf.
According to the City's charter, the maximum property tax rate cannot exceed $1.50 per $100 in valuation.
Furthermore, any tax rate set per budget year shall not result in an ad valorem tax revenue increase greater than seven
percent (7%) of the total ad valorem tax revenue collected in the preceding budget year, unless authorized by the
voters of the City at a special election. It is important to note that any additional ad valorem tax revenue generated
from new construction is excluded when determining whether the increase exceeds the 7% threshold.

For Fiscal Year 2025, the City Council has set the property tax rate at $0.276204 per $100 in valuation, which is above
the no-new-revenue (NNR) rate and the Fiscal Year 2024 rate of $0.260991 per $100 in valuation. This decision aligns
with the City’s long-standing philosophy of only raising taxes when absolutely necessary. The City is committed to
ensuring that any tax increase is clearly justi ed and necessary to meet the community's needs.

This year's tax rate adjustment was driven by several factors, including increased operating costs brought on by
in ation, higher material costs, and ongoing supply chain issues. Additionally, the City has faced increased debt service
obligations related to the purchase of a new re apparatus and higher costs associated with police vehicles.

To provide relief to residents, the City implemented a new 7% general residential homestead exemption this year. This
exemption is part of the City Council's continued commitment to minimizing the tax burden on citizens. While the
rate increase was necessary to maintain the high level of services expected by the community, the homestead
exemption helps offset the impact on homeowners, re ecting the City’s balanced approach to scal management.

Looking ahead, the City Council will continue to carefully consider the amount of revenue required and set tax rates
accordingly, ensuring that any increase is fully justi ed for speci c programs or services that bene t the community.
The approach remains focused on balancing the need for high-quality services with the goal of minimizing the tax
burden on residents.

A19,014,256 $677,751
(3.70% vs. prior year)

City of Colleyville | Budget Book 2025 Page 127