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Colleyville presents FY2026 budget, proposes 0.311931 tax rate in first readings
Summary
Council held the first readings of the FY2026 budget and the tax ordinance, presenting a proposed property-tax rate of 0.311931 per $100 valuation and a proposed operating budget across funds; second readings are scheduled for Sept. 16.
City staff presented the Colleyville proposed budget for fiscal year 2026 and the tax ordinance during the council’s Sept. 3 meeting; both items were heard as first readings and will return for a second reading and potential adoption on Sept. 16.
Finance Director Cassie Smith and city staff outlined highlights of the proposed budget: total projected revenues across major operating funds of about $68.9 million and expenditures of about $68.6 million. The general fund revenue proposal is $30.7 million; staff identified property tax and sales tax as the largest revenue sources. The proposed budget includes increases tied to personnel costs and insurance, including staffing in public safety and a new cybersecurity administrator funded by the utility fund and other sources.
City staff presented a proposed ad valorem tax rate of 0.311931 per $100 valuation, comprised of an M&O (maintenance and operations) component of 0.294232 and an I&S (interest and sinking) component of 0.017699. Smith described state-required calculations including the “no-new-revenue” and “voter-approval” rates and how the recently adopted expansion of the homestead exemption to 14% affects comparisons with prior years. Council members and staff discussed how frozen values for over‑65 or disabled taxpayers shift tax burdens and how TRA (Tarrant Regional Water District) pass-through charges affect the utility fund projections.
Smith told the council the proposed budget anticipates transfers to capital funds and includes a previously omitted transfer of $552,000 from the general operating fund to the debt service fund. Staff said revenue estimates reflect Tra’s proposed pass-through charges for water and wastewater and noted that the city controls only some components of utility rates.
The tax ordinance and the proposed budget were presented as first readings; no action was taken. The council will hold second readings and final votes at a future meeting. During the public hearing portion of the budget discussion, resident Syeda (Sahina) raised questions about tax collections and county tax‑collector practices and noted TRA’s budget increases; staff said they would provide follow-up information.
Staff recommended the budget for second-reading consideration and noted timing to begin the city’s fiscal year on Oct. 1.
