First Reading and Public Hearing THIS BUDGET WILL RAISE MORE TOTAL PROPERTY TAXES THAN LAST YEAR'S BUDGET BY $1,240,578 OR 6.3%, AND OF THAT AMOUNT, $207,906 IS TAX REVENUE TO BE RAISED FROM NEW PROPERTY ADDED TO THE TAX ROLL THIS YEAR. The annual budget represents the culmination of extensive efforts that began with the staff budget kickoff in March. The process included department submissions and detailed line-by-line internal reviews throughout the spring, followed by Council feedback during multiple worksessions. Preliminary FY 2027 budget numbers were provided to the Council in June, the 5-year Capital Improvement Plan (CIP) was presented in July, and the proposed budget was delivered on August 5, 2026. The proposed budget has been available on the City's website since July 29, 2026. This agenda item includes a public hearing on the budget and provides for its formal approval upon the second reading of the ordinance. Attached to this agenda item is the City's proposed FY 2027 budget as originally presented. There have been no substantial changes since its initial presentation. The total proposed fund expenditures are as follows: Budget Category FY2026 Expenditures FY2027 Expenditures % Change FY2027 Revenue General Fund Operating $ 31,268,504 $ 30,786,885 -1.5% $ 31,528,143 Utility Fund Operating 26,855,702 27,360,164 1.9% 27,540,741 Debt Service 1,693,245 1,854,868 9.5% 1,548,784 Drainage Fund Operating 1,994,787 1,822,758 -8.6% 1,904,000 Colleyville Economic Development Corporation (CEDC) Operating 4,444,665 4,480,785 0.8% 2,985,000 Colleyville Crime Control & Prevention District (CCCPD) Operating 3,762,684 3,593,352 -4.5% 3,645,000 Hotel Tax Operating 260,439 174,920 -32.8% 200,000 Miscellaneous Special Revenue Funds Operating 323,962 206,600 -36.2% 539,680 Capital Improvement Projects 23,472,628 27,632,000 17.7% 2,481,000 Total $ 94,076,616 $ 97,912,332 4.1% $ 72,372,348

Bastiat Liberty & Property Rights Analysis

This motion is scored as RESTRAINS_GOVERNMENT (Impact Weight: 2.5/10). Under the Bastiat Liberty Watchdog Index, voting YES on measures that cap or reduce ad valorem tax burdens, expand taxpayer exemptions, retire debt early, enforce competitive bidding caps, or remove regulatory/zoning barriers to private property rights earns a positive Pro-Liberty score.