Council members discussed the fiscal year 2025-26 budget at the Sept. 3 council meeting. The proposed budget is expected to increase expenditures by $2.2 million from fiscal year 2024-25, according to city documents.
The overview
The $2.2 million increase in expenditures would pay for city staff salaries and benefits, which is anticipated to cost $1.6 million with $1.1 million of that going to firefighters and police officers, Colleyville Finance Director Cassie Smith said. The remaining amount will go to three areas, including:
- $424,000 for increased transfers into the capital fund for vehicle replacements and the debt service fund
- $106,000 for increased supplies for park maintenance
- $92,000 for increased contractual obligations related to information technology
The proposed tax rate for FY 2025-26 is $0.311931 per $100 valuation, which is an $0.035727 increase from the last fiscal year's rate of $0.276204 per $100 valuation, according to city documents.
City Council raised the homestead exemption to 14% at the June 3 meeting, which would result in a $2 decrease to the average homeowner’s tax bill, Smith said.
The tax rate is broken down into two parts including the maintenance and operation rate, which is $0.294232, and the interest and sinking rate, which is $0.017699. The maintenance and operation tax revenues are used for Colleyville’s day-to-day operational costs, including public safety, infrastructure maintenance and general services, according to the city’s website. The interest and sinking rate is dedicated to repaying debt obligations for capital projects, the website states.
The proposed tax rate increase would bring in $850,000 more for the general fund than last fiscal year, which will help offset the increased expenditures for FY 2025-26, Smith said.
What else?
City officials are also proposing to increase the utility rates to fund regular programs in the utility fund, Smith said.
The proposed water rate is $18.24 for 1-inch meters, which is a $0.60 increase from last fiscal year. The proposed wastewater rate is $15.49, which is a $1.07 increase from last fiscal year, according to city documents.
If the increase to utility rates is approved by council members, the residential base bill would be $39.56 for 1-inch meters of water and wastewater, and a nonresidential base bill would be $45.56 for 1-inch meter of water and wastewater, Smith said.
If approved, these rates will go into effect Oct. 1, she said. The volumetric rates will be adjusted effective Jan. 1 based on the new Trinity River Authority rates, per city documents. The new rates will be brought to council later this year, Smith said.
Looking ahead
Council members will vote on adopting the budget, tax rate and utility rates at the Sept. 16 meeting, per city documents.
