Page 81 - City of Westlake FY20 Budget

Section 2 Financial Analysis
Funds and Departments

• The Public Improvement District Fund (Local) accounts for monies received from bond
proceeds, inspection fees and payments related to the Solana Public Improvement District.
The District was created by ordinance in February 2014 to finance the construction of public
infrastructure (such as water lines and streets) in the Entrada subdivision. Revenues
deposited into the PID Fund are used to cover engineering, consulting, legal, and advertising
costs attributable to Entrada development and construction.

• The Lone Star Public Facilities Corporation was founded in 1996 and was designed “to
provide for the acquisition, construction, rehabilitation, repair, equipping, furnishing and
placement in service of public facilities in an orderly, planned manner and at the lowest
possible borrowing costs.” The idea was to “acquire, through the issuance of installment sale
obligations, office buildings located within the State of Texas but outside the boundaries of
Westlake, whose tenants will be limited to those entities which are qualifying tenants under
applicable federal income tax law so that the interest payable with respect to the installment
sale obligations will be exempt from federal income taxation.” There has been no activity in
the fund for several years.

• The 4B Economic Development Corporation Fund is a local option established under the
Texas local government code. 4B funds are generated from a ½ cent sales tax levy and
proceeds are used for debt service.

• The Economic Development Fund was set up to maintain all receipts and disbursements of
agreements between the Town and various corporations for economic development. There
was confusion regarding the additional revenues being recorded in the General Fund and
offset by expenditures. These balances offset to zero but skew the analysis of each prior to
creating this fund. This fund is used to create more transparency to the public regarding
these receipts and payments.

DEBT SERVICE FUNDS
These funds were established to account for, and the payment of, general long-term debt principal
and interest. This fund provides a clearer accounting of ongoing debt obligations compared to
operating budgets. The Debt Service Fund is used to make scheduled payments for all bond
issuances.

• The Debt Service Fund (Property Tax) was created to keep property tax payments separate
from all remaining debt.

• The Debt Service Fund provides payments for all remaining debt being paid with transfers from
the General Fund and 4B Economic Development Corporation Fund.

CAPITAL PROJECT FUNDS

The Capital Projects funds are used to account for financial resources to be used for the acquisition
or construction of major capital facilities (other than those financed by proprietary fund types) and
consist of these two funds:

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