Page 124 - N. Richland Hills General Budget

OVERVIEW OF SPECIAL REVENUE FUNDS

Promotional Fund - The Promotional Fund provides economic development services for the City. This fund
is supported by a 7% hotel/motel occupancy tax, which was established by a state law by which municipalities
are allowed to assess a tax of up to 7% for hotel/motel occupancy. This revenue source is used to promote
tourism and to attract new industry and business to the City. It is estimated that the Promotional Fund will
receive occupancy tax proceeds in the amount of $176,582 for fiscal year 2020/2021. Interest income is
projected to be $4,400. Total Promotional Fund revenues for the new fiscal year are projected to be $276,808.
Total expenditures are projected to be $276,808.

Donations Fund – The Donations Fund derives a significant portion of its revenue from a $1.50 contribution
made by citizens and commercial businesses through monthly City utility bills. Donation Fund revenue also
includes other donations and investment income. Revenue projections for 2020/2021 are $301,164. These
contributions are allocated for library needs, humane services, and public art. Budgeted expenditures for
2020/2021 are $262,388.

Special Investigation Fund – Revenue for this fund is received from Federal and State forfeited funds and
reimbursement from neighboring cities involved in the Mobile Data Terminal (MDT) program, and the
Automated Fingerprint Identification System (AFIS) program. Revenues from forfeited funds are dependent on
which cases go to court and whether or not a judge releases funds to the City. These revenues fluctuate year
to year depending on cases involving court awards. The Special Investigation Fund includes an appropriation
of fund balance of $182,800 for fiscal year 2020/2021. These are unobligated forfeited funds received in
previous years used for one-time, non-recurring expenditures. Total revenues, including the appropriation of
fund balance, are projected to be $267,300. Total expenditures are projected to be $267,300 for fiscal year
2020/2021.

Drainage Utility Fund – This fund accounts for the monthly fees charged to residents and businesses to
pay for the cost of drainage improvements throughout the City. The fee is based on a residential or commercial
unit’s usage of drainage facilities. The fee varies slightly based on zoning category, with total expenses of
$1,651,700.

Gas Development Fund – Revenue for the Gas Development Fund is generated from natural gas
development. In June 2006 City Council adopted a resolution creating a conservative policy on the use of
natural gas development revenues. The policy was established to avoid over-reliance on these revenues and
to establish how the revenues would be used. Caution was taken in considering uses for gas revenues
because it is difficult to predict well production and long term production normally means the production
decreases over time. In general the policy guidelines establish three areas for using the money: (1) to bridge
the gap of sales tax revenue reductions, (2) to use “one time” revenues for projects or non-recurring capital
needs, and (3) to use the revenues for expanding the City’s economic base and for economic development.
Total revenue projected for fiscal year 2020/2021 is $322,600. Total expenditures for fiscal year 2020/2021 are
$322,600.

Traffic Safety Fund - Revenue for the Traffic Safety Fund is generated from Red light camera fines located
at nine intersections along Rufe Snow Drive and Davis Boulevard. In November 2006 City Council adopted 6
resolution creating a conservative policy on the use of traffic safety fine revenues. Total expenditures for
2020/2021 are estimated at $56,911.

120