Page 49 - Forest Hill FY21 Annual Budget

Hotel/ Motel Tax

Motel taxes are 13% (6% State of Texas and 7% City of Forest Hill) of the cost of the stay. The taxes are
remitted to the City monthly by each hotel/ motel property in the City. Periodic audits may be
conducted by the Director of Finance.

Other Governmental Fund Revenue Sources

The City has other types of revenue. Two categories are I) Licenses, pennits and fees estimated to collect
$310,000 and 2) Fines and forfeitures estimated to collect £525,000. Licenses and pennits include items
such as construction permits, impact fees, fence pennit s, pet licenses, and garage sale permits. Fines and
forfeitures include items related to the Municipal Court and Police Department such as traffic
f
enorcement ticket collections. code enforcement collections, and warrant collections.

I Water and Sewer Service Revenues

The City's Water and Sewer Fund is a proprietary fund that is set up to run much like that of a private
r
business/ for profit entity, by recovering operating, debt and capital costs fom user charges and
maintaining a reserve for emergencies. The major revenue sources are water, sewer, drainage, and
sanitation (trash) service charges. Bills are sent to residents monthly and fees collected. Consumption
trends are monitored for providing services and projecting revenues. The City purchases water and sewer
services from the City of Fort Wo1ih. A franchise contract is in effect for sanitation. The City provides
drainage services.

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