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Capital Improvements

The City ’s Capital Improvement Plan (CIP) for Fiscal Years 2026-2030 is a strategic framework designed to address
Colleyville's long- term infrastructure and facility needs. This 5-Year plan outlines signi{cant projects that have been
identi{ed and prioritized to enhance public safety, improve the quality of life for our citizens, and maintain the City ’s
ser vice delivery systems.

The {rst year of the CIP, Fiscal Year 2026 , is fully integrated into the City's operating budget , re|ecting the projects
approved for funding in the current {scal year. However, years two through {ve (FY 2027–FY 2030) are included for
planning purposes only and are not currently funded. These future projects will be assessed annually, with funding
determined based on available {nancial resources and evolving community needs and priorities.

Consistent with our commitment to {scal responsibility, the City continues to fund capital projects on a pay-as-you- go,
cash-funded basis. This approach is balanced by effor ts to secure external funding sources, including several proposed
grants to offset City funding needs, ensuring that we maximize outside funding whenever possible.

The FY 2026 budget prioritizes projects focused on public safety and quality of life improvements, including funding for
Heroes Park , improvements at the Recreation & Voting Center including a splash pad, and various road projects. The CIP
de{nes capital projects as those requiring an investment of $50,000 or more and having a useful life of at least {ve years.
This plan allows City leaders to evaluate capital needs comprehensively over the next {ve years, determine project
priorities, and assess the adequacy of available funding resources.

Projects within the CIP are identi{ed and proposed by the Colleyville Leadership Team, which includes depar tment heads,
the City Manager's Of{ce, and members of the City Council. After being incorporated into the 5-year plan by City
Management and the Finance Depar tment , the City Council reviewed the CIP during a Worksession in July and approved
it in September, alongside the operating budget .

For FY 2026 , the Capital Improvement Plan (CIP) includes projects with minimal operating impacts beyond regular repair,
maintenance, and supply costs. These costs are anticipated to be manageable and will be absorbed within the currently
approved operating budget . The City is committed to maintaining its infrastructure and ser vices while ensuring that any
additional operational expenses related to new capital projects are sustainable and do not necessitate signi{cant increases
in future budgets. This strategy allows us to continue investing in essential improvements without straining operational
resources.

The City remains committed to balancing necessary improvements and enhancements with available resources, while
being mindful of infrastructure needs, public safety, and quality of life for our community. For full information, please see
the separately available Capital Improvement Program for FY26-30 on the City ’s website or contact the Finance
Depar tment .

Funds Used for Capital Projec ts

Capital Projects Fund — The Capital Projects Fund is a general fund used to account for a wide range of capital
improvements across the City of Colleyville. It does not have a dedicated revenue source of its own and is funded primarily
through transfers of excess reser ves from the General Fund. Additionally, it holds restricted street impact fees received,
which can only be used for speci{c approved projects.

Capital Utility Fund — The Capital Utility Fund is dedicated solely to water and wastewater projects. It is funded through a
capital project utility fee charged on customers' water bills and through transfers of excess revenue from the Utility
Operating Fund. The fund also manages water and wastewater impact fees, which are restricted for use on speci{c
approved projects, and these funds are kept separate to ensure compliance with restrictions.

FY 2025-2026 Annual Budget | Colleyville Page 152