Colleyville homeowners would pay about $191 more per year in city property taxes under a rate the City Council proposed Tuesday, Aug. 18, marking the steepest increase in more than a decade.
The proposed rate of $0.352480 per $100 valuation is 13% above the current rate of $0.311931 and would be the city's highest since 2015, according to Community Impact. For the average Colleyville home, now appraised at $678,440, that translates to an 8.66% jump on the tax bill.
Why the rate is rising
Finance Director Cassie Smith told the council that falling property appraisals are a primary driver. The average taxable home value dropped roughly $27,000 from $705,492 in 2025, shrinking the tax base and forcing a higher rate to maintain revenue.
Mayor Bobby Lindamood listed additional pressures: a 3% decrease in Tarrant Appraisal District valuations, a growing share of over-65 homestead exemptions that now cover 24% of properties, rising insurance costs, staff retention expenses and new fire station equipment.
"I want to make sure that people understand that some of the elements that have caused this, number one, TAD went down 3%. So, we have to make that up," Lindamood said at the Aug. 18 meeting. "We have had more people added to the over 65. It's now 24%. And so, that means other people are going to have to pick those pennies up."
Where the money goes
The rate has two components. The maintenance and operations portion, which funds public safety, infrastructure and community programs, rises from $0.294232 to $0.318650 per $100 valuation.
The interest and sinking portion, used for debt repayment, nearly doubles from $0.017699 to $0.033830. Smith said that jump covers police vehicle purchases and payments toward the city's recreation center.
The total tax rate has climbed every year since 2023.
Before that, Colleyville adopted the no-new-revenue rate for five consecutive years, according to a 2022 city news release.
Budget snapshot
The proposed FY 2026-27 budget projects $31.25 million in total revenue, up from $30.75 million in the current fiscal year. Total expenses rise to $30.67 million from $29.88 million, leaving a projected operating surplus of $741,258.
No election required
Because the proposed rate matches but does not exceed the voter-approval threshold of $0.352480, no election is required. The rate does exceed the no-new-revenue rate of $0.321034, which triggers mandatory public hearings.
What's next
The first public hearing is set for the council's Tuesday, Sept. 1 meeting. A second hearing and possible adoption vote is scheduled for Tuesday, Sept. 15. Residents can attend either meeting to voice support or opposition to the proposed rate.
