The Colleyville City Council proposed a tax rate of $0.352480 per $100 valuation for fiscal year 2026-27 at its Aug. 18 meeting. If adopted, the rate would be a 13% increase over the current rate of $0.311931 per $100 valuation.
What it means
Because the proposed rate is above the no-new-revenue rate, a public hearing is required before adoption and is scheduled during the council's Sept. 1 meeting. A second hearing and possible adoption of the rate is scheduled for the council’s Sept. 15 meeting.
The no-new-revenue rate is the tax rate that would produce the same revenue as the previous year, accounting for changes in property value and was $0.321034 per $100 valuation, according to city documents.
Because the rate is not above the voter-approval rate of $0.352480 per $100 valuation, the city does not have to hold an election to get voter approval. However, voters can still show their support or opposition at the public hearings.
The cause
One of the main reasons for the tax increase is the decrease in appraised property value, Finance Director Cassie Smith said during the meeting.
When property values go down, the taxable value of the property also decreases so the city receives less revenue at the same tax rate.
The average taxable value of a home was $705,492 in 2025 and $678,440 after the decrease, according to the city.
Under the new tax rate, the average home would see an increase of 8.66% or $190.72 annually.
The breakdown
Tax rates are made up of maintenance and operations and interest and sinking.
Maintenance and operations funds services in the city like public safety, infrastructure and community programs and is increasing from $0.294232 per $100 valuation to $0.318650 per $100 valuation.
Interest and sinking funds debt repayments for projects like new facilities and equipment and is increasing from $0.017699 per $100 valuation to $0.033830 per $100 valuation. I&S is increasing to help fund the purchase of police vehicles and payments toward the recreation center, Smith said.
The total tax rate has increased every year since 2023 and the proposed rate would be the highest it has been since 2015, according to city data.
Mayor Bobby Lindamood said the increase was important for proper upkeep of the city.
“It's not that we're being frivolous or just spending money to spend money," Lindamood said. “We're able to keep our city beautiful, our city safe, and so it does cost a little more money.”
The background
The council previously discussed the proposed 2026-27 budget at its Aug. 4 meeting, showing an increase in total revenues and expenses over the original 2026 budget.
The proposed total revenue for FY 2026-27 is $31.25 million, while the original budget for fiscal year 2025-26 was $30.75 million. Similarly, total expenses are $30.67 million in the proposed budget and $29.88 million in the current budget.
The projected operating surplus is also increasing from $17,347 to $741,258.
What they’re saying
Lindamood also talked about the different factors that went into proposing the new rate.
“I want to make sure that people understand that some of the the elements that have caused this, number one, TAD went down 3%. So, we have to make that up,” he said. “We have had more people added to the over 65. It's now 24%. And so, that means other people are going to have to pick those those pennies up.”
Other factors were insurance increases, staff retention and new fire station equipment.
“So that's some of the reasons, and I probably forgot a couple,” Lindamood said.
