Page 17 - FY 2020-21 Budget Cover.pub

The Hotel/Motel Tax Fund derives revenue from a seven percent tax levied upon the cost of
hotel occupancy. The purpose of this tax and these funds is to benefit tourism and the hotel
industry within Azle. Projected revenues are $16,600 for total available resources of $230,061.
Revenue projections are based on previous year occupancy rates. No expenditures are
proposed for this fund.

The Cable PEG Fee Capital Projects fund was established to account for Cable PEG fees.
Chapter 66 of the Texas Utilities Code provides for funds, over-and-above franchise fees, to
support public, educational, and governmental (PEG) access facilities to assist cities with
providing PEG channel capacity. The funds are collected from an additional one percent of a
provider's gross revenues. Permissible capital expenditures include all facilities and equipment
that have a useful life of longer than one year and that are used for PEG access facilities to
provide or enhance the provisioning of PEG channel capacity, programming, and transmissions
for a governmental use. Projected revenue for FY 2020-21 is $17,500 which will result in an
ending balance of $236,306. No expenditures are proposed for this fund.

Capital Projects

The Capital Projects Fund consists of facility projects. A beginning balance of $157,200 is
projected for this fund. Included in this beginning balance is $10,000 in gas royalties and a
$147,200 transfer from the Municipal Development District.

Revenue of $65,500 is projected for the Capital Projects Fund, of which $40,000 is from gas
well royalties, $25,000 from the Municipal Development District and $500 from interest earnings.

The Utility Capital Projects Fund consists of the construction the Emergency Process
Equipment Generator And Onshore Pump Intake Station Project for the Water Plant ($435,000).

Summary

While the national and regional economies are struggling during the COVID-19 pandemic, the
City still faces many challenges. Property values increased slightly this year, which may
indicate declining values for the next few years. The cost of providing City services continues to
rise. New home construction continues to be very active in the City with the potential to add
new residential subdivisions in the near future. However, attention will need to be given to
streets as traffic congestion will become a problem. As always, Staff will keep a close eye on
the economy and stay prepared to respond to changes as they come. Staff has made every
effort to create a budget that will provide the services our citizens have come to expect and Staff
will continue to seek improvements where they can be found. Furthermore, it is important to
take a cautious approach in the coming year while at the same time intensifying our efforts to
attract new businesses to Azle.

Respectfully submitted,

Thomas J. Muir
City Manager

City of Azle FY 2020-2021 Budget 7