Colleyville discusses $20 million bond proposition to expand recreation center; council to consider calling measure for May 2025 ballot

City staff and financial advisors briefed the Colleyville City Council during a work session on a proposed $20 million general-obligation bond measure to expand the Colleyville Recreation Center and related parks improvements. Staff said the city would place a proposition on the May 2025 ballot if the council approves a resolution on the regular meeting agenda.

Assistant City Manager Mark (last name provided in the transcript as Mark) reviewed the project history and proposed scope. The city purchased the Covenant Christian campus in December 2022, converting a 38,000-square-foot building into the current recreation center and a 4,000-square-foot annex used for voting and other uses. Staff opened the renovated facility in August 2024 and a North Auxiliary Gym in December 2024. "We've had a lot of public input," Mark said, summarizing open houses, comment cards and Parks and Recreation Advisory Board feedback that informed the expansion concepts.

The schematic concept presented to council would add about 31,000 square feet of new space on the Roberts Road side of the facility. Key elements identified in the presentation include an 8,900-square-foot two-story fitness area, a 6,100-square-foot third gymnasium, expanded locker rooms and an elevated second-floor indoor track that overlooks the gym and fitness areas. Staff displayed renderings and said refinements would occur during design and public review if the bond measure is approved.

City finance advisers from Specialized Public Finance outlined the funding plan. The bond package under consideration would authorize the issuance of up to $20,000,000 in general-obligation bonds; the presenters modeled an illustrative interest rate of 4.17 percent and an estimated annual debt service of about $1,500,000. The model assumed no growth in taxable value and included conservative assumptions; the estimated interest-rate assumption included a 30-basis-point cushion.

Using the city’s taxable value assumptions in the model, financial staff said the additional interest and sinking (I&S) tax rate to support the new debt would be roughly 3.1 cents (0.031). The presenters said that equates to about $19 per month for a household with a taxable value of $731,000; staff also displayed illustrative monthly impacts ranging from about $13 to $26 depending on taxable value assumptions. The presentation noted that existing FY25 I&S tax obligations are about 1.6 cents and that the combined rate to support all existing and proposed debt would be about 4.7 cents under the model’s assumptions.

Staff and advisers emphasized timing and market risk. Advisors said the city could sell bonds in installments or as a single issue, with a potential earliest sale after certified tax values are available in July and a likely closing in September if the council moves forward. Presenters said Colleyville is rated AAA by major credit agencies and that adding $20 million of debt should not put downward pressure on that rating. "You're probably looking at high 3% range fixed for 20 years," one adviser said when describing a competitive sale in the current market.

Council members asked about ballot language, statutory constraints on what the city may explain in voter materials, and how changes in property valuations or legislation could affect the tax rate. Staff said statutory requirements limit the extent of explanatory language on ballots and that an FAQ would be placed on the city website to provide more detail. The transcript records council members raising concerns about early voting logistics and whether a separate voting building on the campus would remain a dedicated voting facility or be repurposed as part of the expansion; staff said designs could preserve a separate entrance and secure space for voting if desired.

No formal council vote on the resolution to call the May 2025 proposition was recorded during the work session. Staff said a resolution to place the proposition on the May 2025 ballot was on the regular meeting agenda for the same evening and that, if adopted, the proposition would appear on the May ballot. The presenters also noted that an advisory referendum in May 2024 asked residents whether the city should place a proposition on a future ballot; that advisory question received approximately 74 percent support.

Council moved to an executive session after the discussion. The meeting record also noted two agenda items — the proposed vet clinic and a prayer room — had been withdrawn from consideration that night.