To learn more about how the transcript that informed this report was created, visit Cambridge Artificial Intelligencer<\/a>.<\/p>\n Colleyville property owners will see an increase in their city property tax rate as part of long-term strategy to \u201cbank\u201d revenue now and keep the city\u2019s finances stable without forcing \u201cdraconian\u201d moves years from now.<\/p>\n The city council is considering a 13% increase in the tax rate, to 35.24 cents per $100 of property value appraised for tax purposes. That compares to the 31.19-cent rate for the current year.<\/p>\n The change would put the city\u2019s proposed 2026-27 budget into surplus, and Colleyville would transfer the surplus into its capital expense fund, keeping a lid on debt and interest payments, City Manager Jerry Ducay\u00a0said.<\/p>\n Ducay told Mayor Bobby Lindamood and city council members that raising the tax rate now could forestall a \u201cmuch more draconian change\u201d in the future.<\/p>\n That\u2019s due to state law that limits property tax revenue cities can collect for operations and maintenance without going to voters for an election, Ducay said.<\/p>\n \u201cIf you don\u2019t take advantage of some of that opportunity and bank that revenue, years down the line, you\u2019re going to have a problem where you\u2019re going to have a much more draconian change that\u2019s going to have to be undertaken,\u201d Lindamood said.<\/p>\n Colleyville is proposing the tax rate increase for three reasons, Ducay said.<\/p>\n As in other cities, property appraisal values in Colleyville have dropped, resulting in less revenue for the city. The decreased values are\u00a0due in part to the Tarrant Appraisal District\u2019s policy of reappraising residential properties every two years and because of rising protests, arbitration and litigation.<\/p>\n In addition, interest payments on debt for a new fire truck and recreation center are coming due. And maintenance and operations costs are going up.<\/p>\n Protests, litigation and arbitration lower tax rolls, meaning cities collect less money by leaving the tax rate the same.<\/p>\n The average value of a single-family home in Colleyville is $678,440 under the new appraisals, down from $705,492 from the prior year, city staff told council members.<\/p>\n The proposed hike in the tax rate would raise the city tax bill for that home from $2,200.64 to $2,391.41.<\/p>\n The Tarrant Appraisal District this summer appraised Colleyville\u2019s tax rolls at $8.9 billion, down 3.09%, city staff said. Residential values were $7.8 billion, down 3.52%. Commercial values were $1.1 billion, up 0.17%.<\/p>\n Ducay proposed a general fund budget that includes $31.25 million in revenue and $30.7 million of expenses. The general fund pays for most basic city services. The current year\u2019s original budget projected $30.7 million in revenue and $29.8 million in expenses.<\/p>\n The council will take up the formal tax rate discussion at its Aug. 18<\/a> meeting and is expected to set the first public hearing for Sept. 1, followed by final adoption of the budget and rates on Sept. 15. The new fiscal year begins in October.<\/p>\n The proposed budget would also raise utility bills for many homes. For customers with a 1-inch meter, monthly bills would go up by:<\/p>\n\n