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Colleyville's philosophy is to maintain a lean staff, with additions or changes only being
made when absolutely necessary and fully justi{ed through the public budget process. For
FY 2026, the only staf{ng change is the addition of a Cybersecurity Administrator position
with costs split between the Utility Fund and CCCPD.

Employee Compensation
3.5% average merit-based pay increase for all employees

The total cost of the pay plan improvements noted above and related bene{ts is what
makes up the 9.2% increase in the cost associated with personnel.

Capital Improvement Program
The FY 26 capital improvement budget is $23.5 million: $17.9 million in general government
capital projects, $5.1 million in water and sewer system projects, and $0.55 million in
drainage system projects. The general government projects are funded from excess
operational funds, grant funds, and donations. The water and sewer and drainage system
projects are funded with cash from excess operational funds planned for capital
improvements and impact fees.
Future Priorities

The FY 26 Budget has prioritized {scal responsibility, public safety, and the implementation
of a general homestead exemption. Going forward, the City will need to identify additional
budget dollars to address the maintenance of aging city facilities and infrastructure,
including streets and park facilities. Of future concern is the State Legislature’s effort to
decrease annual property tax increases by local government. Last session saw legislation
suggesting future tax increase revenue growth limitations of 1% annually. This discussion
presents a concern for long-range operational funding. As part of next year ’s budget
preparation, staff will develop a {ve-year assessment of options to prepare for the likelihood
of future state restrictions on revenue growth. Additionally, staff will examine the end of the
TIF and the transfer of School Resource Of{cer funding obligation to the schools (as
required by state law).
The current Tax Increment Financing (TIF) zone is set to expire in 2030. In October 2025, the
City Council voted to expand and extend the TIF zone to expire in 2055. This will provide
continued funding for economic development, the School Resource Of{cer (SRO) program,
parks programs and staff, and infrastructure funding in the zone and the City in general.
Conclusion

Thank you each for your leadership of our City. Your vision, guidance and service are
invaluable and truly make Colleyville a great community (Colleyville, it’s the People)! Staff
continues to ef{ciently and effectively manage our resources to address Council priorities
and to continue our commitment to exceptional service for the citizens of Colleyville.
Respectfully submitted,

Jerry Ducay
City Manager

FY 2025-2026 Annual Budget | Colleyville Page 12