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HomeMy WebLinkAboutCIP November 10 - Minutes City of Colleyville Page 1 City of Colleyville Adhoc General Fund CIP Fee Advisory Committee Agenda City Hall 100 Main Street Colleyville, Texas 76034 817. 503.1000 www.colleyville.com Wednesday, November 10, 2021 6:00 p.m. Colleyville Chambers 100 Main Street, 3rd Floor 1. CALL TO ORDER Chair Shrewsbury called the meeting to order at 6:00 p.m. 2. INTRODUCTION OF COMMITTEE AND PURPOSE Chair Shrewsbury welcomed the committee members, discussed the role of the committee, timeline of the committee’s work, and had the members introduce themselves. 3. REVIEW OF THE CURRENT CAPITAL PROJECT FEE MODEL Mayor Newton was present, provided background on the rationale for forming the committee, and provided insight into discussions from the City Council level. Finance Director Kyle Lester provided a presentation showing the current utility capital fee model, and how it relates to the proposed general capital fee model. The presentation laid the groundwork for the committee’s work. 4. PLAN FOR CREATING A RECOMMENDATION The committee had significant discussion throughout the presentation, including the following items: Property tax There was robust discussion on how capital projects are paid for, and why the City would charge a monthly fee, as opposed to issuing bonds and assuming debt to pay for the improvements. Mayor Newton said the current City Council is opposed to issuing debt and has placed priority on paying cash for everything. Chair Shrewsbury said charging a fee would be transparent so residents know exactly what their dollars are spent. The committee agreed the general capital projects fee would be the path forward for the committee. Unit of Measure The committee discussed how the fee should be applied. The committee discussed a flat fee, a fee based on water meter size, lot size, or zoning category. The committee did not make a decision on the unit of measure but rather needed additional data to make that decision. The committee did agree residential and commercial should be charged differently as businesses generate more traffic General Fund CIP Fee Advisory Committee Agenda November 10, 2021 City of Colleyville Page 2 volume than a single family home, and the fee is primarily used to pay for road improvements. The committee discussed how to charge businesses because a small business should not necessarily pay the same rate as a large business. Chair Shrewsbury said the questions to ask are how much money does the city need and how do we pay for it. She said there are other factors to consider such as cost escalation, inflation, and other revenue sources that help pay for capital projects such as the Tax Increment Financing District that ends in 2030 and the Colleyville Economic Development District. Chair Shrewsbury concluded the meeting by summarizing the committee’s discussion. The chair asked the committee if there was consensus on charging a fee instead of debt. The committee unanimously answered yes. The chair outlined several pieces of data that staff will provide to the committee to aid in next month’s discussion: historical data of capital plan versus actual spend; units of measure; and formula or allocation process. 5. ADJOURNMENT Chair Shrewsbury adjourned the meeting at 7:53 p.m. Minutes taken by Assistant City Manager Mark Wood.