The Colleyville City Council on Nov. 5 held a first reading and public hearing on an amended project-and-financing plan for Tax Increment Reinvestment Zone (TIF) No. 1 that would extend the zone's term to Dec. 31, 2055 and add noncontiguous corridors designated as TIF 1B with a 2025 base year.

Natalie Ayala of Pettit & Ayala Consulting, the city's TIF consultant, told the council the amendment does not change the city's participation rate (the city remains committed to 100% of its real-property increment within the TIF) and that the city's projected share of new incremental revenue over the extended term is roughly $117 million, with approximately $3 million anticipated from Tarrant County College and about $28 million from GCISD, for an overall projection just under $147.7 million. Ayala explained that county and school participation would terminate in 2030 under the current plan.

"We extended the term. As Mark mentioned, it was scheduled to expire 2030, and now it is being extended to expire 12/31/2055," Ayala said during her presentation. Council previously approved extending the TIF's term; this item would finalize the project and financing allocations tied to the extension.

City staff emphasized that the amended plan provides a menu of eligible project costs permissible under state statute and that specific allocations for individual projects will be brought forward for TIF Board and council approval on a case-by-case basis. Ayala described the approval process as a "two-step 'mother may I' process": being in the TIF boundary does not guarantee reimbursement; applicants must present their projects and merits to the TIF Board and council.

Members of the public asked whether recent changes to business personal property (BPP) exemptions or other tax changes would reduce TIF revenue; staff said the city has not yet calculated the impact of the most recent legislative or appraisal-district changes and that those factors could affect future revenue projections.

Next steps: the council took the item as a first reading; if the first reading is approved the council plans a second reading and potential adoption at the next meeting (Dec. 18, 2025). Staff and the consultant said future project allocations will return to the TIF Board and council for approval.

Action details

Item: First reading and public hearing on ordinance (first reading) to amend project-and-financing plan for Tax Increment Reinvestment Zone No. 1 (TIF 1B) and to adopt a final project-and-financing plan tied to the earlier ordinance extending the TIF term to 2055.
Mover/Second: None (first reading; no final action).
Outcome: First reading completed; matter scheduled for second reading on Dec. 18, 2025.

Clarifying details

Projected total incremental TIF revenue (2025-2055): approximately $147,700,000 (all taxing districts combined; city share ~ $117,000,000; Tarrant County College ~$3,000,000; GCISD ~ $28,000,000). Participation by TCC and GCISD scheduled to end in 2030 under current plan.

Council and staff noted the need to evaluate the effect of recent state/local tax changes and the BPP exemption on TIF projections and the municipal tax rate.