Colleyville City Council approved a 4.5% budget increase for the 2026-27 fiscal year and a higher tax rate at the Sept. 15 meeting.
The details
Increases in the budget come primarily from higher allocations for capital projects at $27.88 million and debt service at $1.85 million. The adopted FY 2026-27 budget also includes a pool of funds to cover merit-based increases for city staff, Assistant City Manager Adrienne Lothery said.
The FY 2026-27 general fund budget has revenues of nearly $31.53 million compared to $30.79 million in expenditures. The general fund expenditures are 1.5% lower than the $31.27 million for FY 2025-26.
The overall budget has $98.33 million in expenditures compared to $72.35 million in revenues, according to city documents.
Diving deeper
For the third straight year, the city will be raising the tax rate. The FY 2026-27 tax rate is $0.352480 per $100 valuation, an increase compared to $0.311931 per $100 valuation for FY 2025-26.
The maintenance and operations component of the rate, which covers general operating expenses, is $0.3185 per $100 valuation. The interest and sinking portion of the rate is $0.03383 per $100 valuation.
The higher interest and sinking portion of the tax rate will help cover an additional $766,000 in debt service payments for the recreation center project and fire apparatus payment schedule, Finance Director Cassie Smith said.
The tax bill for a home with the average taxable value of $678,440 for FY 2026-27 is $2,391.37, which is an 8.66% increase of $190.72 compared to the tax bill of $2,200.65 for an average-valued home of $705,492 for FY 2025-26, per city documents.
Mayor Bobby Lindamood said the increases will help the city maintain existing service levels and keep the city from reducing its employee count.
“We have exceptional services here in Colleyville,” he said. “For $20 a month for those who have to pay it, I think that’s a pretty good deal. I don’t like to increase taxes, but we live in a place where for me, the $20 is worth it.”
What’s next
FY 2026-27 begins Oct. 1 and runs through Sept. 30, 2027.
