Page 65 - Forest Hill FY20 Annual Budget

CITY OF FOREST HILL

SALES TAX ENTITIES

Sales Tax

The City of Forest Hill has a Sales Tax Rate of 8.25%. The rate is composed of the following
components:
State of Texas 6.25%
City of Forest Hill 1.75%
Special Library Rate .25%
Total 8.25%

For the 1.75% that the City receives, it is broken out as follows:

General Fund 1.00%
Community Development .50%
Street Improvement .25%
Total 1.75%

COMMUNITY DEVELOMENT CORPORATION FUND

The Community Development Corporation Fund is a special revenue fund type and its uses of
sales tax revenues are restricted by State Law for community and economic development. The
programs of the fund are administered by the Community Development Corporation Board
appointed by the City Council.

The Community Development Corporation Fund also includes inter-fund transfer to the Debit
Service Fund to provide 100% of the annual debt service payment requirements for the Series
2014 general obligation refunding bonds.

STREET IMPROVEMENTS SALES TAX FUND

The street improvement fund accounts for the use of sales tax that is restricted for the use of
street repairs and maintenance in the City. The fund also provides resources for the Streets-CIP
Program via budgeted inter-fund transfer to the capital projects fund.

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