Colleyville council sets proposed 2025 tax rate at $0.311931 per $100; public hearings scheduled

The Colleyville City Council on Aug. 19 voted 6-0 to state its intent to adopt a proposed fiscal-year 2026 tax rate of $0.311931 per $100 valuation and scheduled a public hearing for Sept. 3 and adoption for Sept. 16.

City finance staff explained the proposed rate is the sum of an operations and maintenance (O&M) portion of 0.294232 and an interest-and-sinking (debt service) portion of 0.017699, yielding a total proposed rate of 0.311931. Staff said that calculation equals the voter-approval tax rate under Texas Property Tax Code procedures; because the proposed rate does not exceed the voter-approval rate, no voter referendum is required.

Finance director Cassie Smith told the council the proposed numbers were calculated from the certified 2025 tax roll and the appraisal district’s July values. Smith said the city’s no-new-revenue rate would have been 0.290965; the adopted homestead exemption results in a rate presentation that makes most eligible homestead residential taxpayers see a modest reduction in their tax bill despite the higher published rate number. The council and staff emphasized the difference between a tax “rate” and a taxpayer’s actual “bill.”

Council debate and public comment Council members asked whether new debt was driving the change in the debt-service portion of the rate. Staff and the assistant city manager, Adrian Lottery, said no new debt has come online; the debt-service calculation reflects existing obligations and an internal transfer from operating funds that reduces the tax levy for debt service. Council members and staff also explained the city uses a conservative collection assumption (about 99.3%) and that appeals or litigation can change final collections.

A member of the public, identified as residing at 6705 Sapphire Circle North, asked about the share of properties with over-65 homestead freezes and about the underlying assumptions in the tax-rate calculation; staff answered that the estimates use the appraisal district’s July numbers (commonly a 95% confidence figure) and that new development is not included in the no-new-revenue calculation because its value is not yet on the rolls.

Formal action The council approved Resolution R-25-5096 (intent to adopt tax rate 0.311931) by motion and second and a recorded vote of 6-0. The resolution references Sections 26.04 and 26.05 of the Texas Property Tax Code and directs staff to hold the required public hearings before final adoption.

Next steps Staff will publish required notices and hold the public hearing on Sept. 3 at 7 p.m.; final tax-rate adoption is scheduled for the Sept. 16 council meeting.