Page 130 - CityofColleyvilleFY25AdoptedBudget

Sales Tax Summary
Sales tax is the second largest operational revenue source for the City of Colleyville governmental funds, spanning three key
funds: the General Fund, Colleyville Crime Control and Prevention District (CCCPD), and the Colleyville Economic
Development Corporation (CEDC). The State of Texas allows cities to levy a maximum sales tax of 2% on top of the state's
6.25% sales tax. In Colleyville, the General Fund receives 1% of the local sales tax, while CCCPD and CEDC each receive 0.5%.

Sales tax revenue in the General Fund is allocated towards essential city services, including public safety, public works, and
leisure services. The CCCPD's portion is dedicated to police operational and capital expenses, ensuring the safety and
security of our community. The CEDC's share supports eligible economic development and leisure services, such as parks
and libraries, enhancing the quality of life for Colleyville residents.

Over the past few years, sales tax has become a more substantial source of revenue, with signi cant growth observed
during and following the COVID-19 pandemic. However, we are now seeing a leveling out of this growth. While increased
sales tax revenue is bene cial and more is always welcome, it is also more susceptible to economic uctuations. This
volatility underscores the importance of Colleyville’s strong property tax base, which provides a stable and reliable source of
revenue to support the City's operations even during economic downturns.

It is important to note that this revenue gure also includes mixed beverage sales tax, which is separately remitted to the
City by the Texas Comptroller and is allocated entirely to the General Fund, though it represents an inconsequential amount.

A10,540,000 $120,040
(1.15% vs. prior year)

Sales Tax Proposed and Historical Budget vs. Actual
$12.5M

$10M

$7.5M

$5M

$2.5M

$0
FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025
Actual Budgeted

City of Colleyville | Budget Book 2025 Page 130