Colleyville council adopts FY2026 budget, sets tax rate, funds five‑year CIP and approves multiple ordinances

The Colleyville City Council on Sept. 16 adopted the city’s fiscal 2026 budget, set an ad valorem tax rate of $0.311931 per $100 of valuation, approved a five‑year capital improvement plan (CIP) funded with cash, and approved a package of ordinances and agreements, including a negotiated settlement with Atmos Energy that the council and staff say reduces a larger requested increase.

The budget ordinance, approved 7–0, covers the fiscal year starting Oct. 1, 2025; the council also adopted Ordinance O‑25‑2‑343 setting the tax rate at $0.311931. Assistant City Manager Mark Wood summarized the CIP and the budget and said the first‑year CIP totals $33,601,488 and the five‑year program totals about $112,000,000, all planned to be paid from available cash. “All these numbers here are in the black, all paid for in cash,” Wood said of the CIP.

Why it matters: The budget, tax rate and CIP set the city’s near‑term spending priorities and capital projects — including streets, drainage, parks, water system repairs and a library makerspace — and establish how those projects will be financed. The Atmos settlement affects natural‑gas customers’ monthly bills in Colleyville.

Most important actions and outcomes - Budget and tax rate: The council approved the FY2026 budget and set a combined rate of 0.311931 per $100 valuation (M&O 0.294232; I&S 0.017699). Staff said the proposed city revenue increase is about $880,000 compared with the prior year; council approved the budget and tax levy 7–0.

- Five‑year Capital Improvement Plan (CIP): The council approved adoption of the FY2026–2030 CIP as part of consent actions and then received a staff presentation. Staff described the CIP as a planning document; individual projects will return for council approval as details are finalized. Highlights discussed included: Bedford Road low‑water crossing design (grant from Congresswoman Beth Van Duyne’s office), regional stormwater enhancement funding for neighborhood drainage partnerships, continued street resurface work in partnership with Tarrant County, water and sewer replacements (Tinker Road; Woodbrier and Quailcrest phase 1 completed), Pecan Park drainage phases, water‑tower rehabilitation (McPherson and Hall Johnson), and Heroes Park construction. The first year was presented as $33,601,488 (all cash); five‑year total $112,000,000. The consent resolution adopting consent items (which included the CIP) passed 7–0.

- Atmos Energy negotiated settlement: By ordinance (O‑25‑2‑346) the council approved a settlement the Atmos City Steering Committee reached with Atmos Energy. According to staff, Atmos originally requested a system‑wide increase of $245,000,000; the negotiated settlement reduces that request to about $205,600,000. Staff said the settlement would raise the average residential Atmos customer bill by $7.83 and the average commercial customer bill by $25.73, effective Oct. 1; the ordinance passed 7–0. Staff noted that denying the settlement could lead to appeal to the Texas Railroad Commission and that the Atmos City Steering Committee attorneys view this as a preferred negotiated outcome.

- Sign code amendments: Council approved changes to Chapter 7 (sign regulations) to reduce clutter from large or long‑standing commercial real‑estate signs, add standards for changeable‑message reader boards (15‑second change allowed for schools), require review of wall/window signage, and create a process for removal of obsolete signs. The council adjusted proposed dimensions so that window or building‑attached vacancy signs could be 4×3 feet when the leasable space/building is set back more than 100 feet; roadside ground signs for typical buildings would be limited to 3×3 feet. The council also changed the allowable temporary ground sign permit period from 30 to 60 days and required council review of commercial murals; the ordinance (O‑25‑2‑340) passed 7–0.

- Zoning and land‑use votes: The council approved a rezoning (O‑25‑2‑338) of ~1.9 acres (Lot 1, Block 1, McCarrie Addition) from PUDR to RE (single‑family estate residential) to permit a new house and an accessory dwelling; staff and the Planning & Zoning Commission recommended approval and the ordinance passed 7–0. The council also approved a special use permit (O‑25‑2‑339) for a veterinary clinic at 5615 Colleyville Blvd., Suite 120 (no overnight stays allowed); passed 7–0.

- Technology and vendor contract (consent): The council approved a one‑year Microsoft licensing and migration contract and project plan with a vendor (Loomis Technology Services) not to exceed $124,649.76; staff presented details during the meeting and the consent resolution including this contract passed 7–0.

- Economic development grant programs and Chamber agreement (consent): The council approved FY26 economic development grant programs (holiday and seasonal gift‑card programs, Colleyville Gives advertising grants, and the Receipt Race school PTA program) and renewed the annual agreement with the Colleyville Chamber of Commerce (the city’s contribution cited as $9,545). Staff noted the city has invested about $5,389,220 in gift‑card programs since 2018 and $529,100 in Colleyville Gives advertising grants; the consent action passed 7–0.

- Other ordinances and fees: The council adopted several additional ordinances, all by 7–0 votes, including: reallocation of FY2025 operating surpluses to capital funds (O‑25‑2‑341); water‑and‑sewer base‑rate adjustments (O‑25‑2‑345) that would increase the typical 1‑inch meter base by $1.67 per month (combined water and wastewater base changes); library fees to add makerspace charges (O‑25‑2‑344); and the city’s annual budget ordinance (O‑25‑2‑342).

Discussion, process and next steps Staff emphasized the CIP is a planning document and that each project will return to council for specific approvals, designs and contracts. Councilmembers and staff discussed publishing the CIP documents and interactive maps online for transparency, aggressive pursuit of external grants (staff said the city has received roughly $30–$40 million in grants in recent years), and using in‑house crews when possible to reduce construction costs (staff cited examples where in‑house work reduced costs from an estimated $500,000 to about $90,000 for a bridge repair).

On the sign code, staff and council negotiated size and timing provisions during the meeting (for example, allowing a 4×3 window/ground sign only for properties set back more than 100 feet and increasing temporary sign permit duration to 60 days) before final vote.

On Atmos, staff recommended approval of the negotiated settlement as the best available outcome after city‑coalition review and attorney work; the settlement will be reflected in tariffs effective Oct. 1.

Ending The council concluded its meeting with citizen comment (no speakers) and adjourned after the recorded votes. Individual project approvals, contract awards and design documents referenced in the CIP will return to council at later meetings for specific approval.