Page 36 - City of Mansfield FY22 Operarting Budget

Special Revenues Funds

The Special Revenue Funds are used to account for the proceeds of specific revenue resources (other than
major capital projects) that are legally restricted to expenditures for specified purposes. These funds
include Hotel/Motel Tax, Mansfield Park Facilities Development Corporation (MPFDC), and Mansfield
Economic Development Corporation (MEDC).

Debt Service Funds

The Debt Service Funds include the General Debt Service Fund, Water & Sewer, Environmental
Services, MPFDC and MEDC. These funds are used to account for the accumulation of resources for and
the payment of principal and interest on general long-term debt and revenue bond debt. The primary
sources of revenues are ad valorem taxes which are levied by the City for the General Debt Service Fund,
sales tax for the MPFDC and MEDC Debt Service Funds, and user fees for the Water & Sewer Fund and
Environmental Services Fund.

Capital Projects Funds

The Capital Projects Funds account for the financial resources to be used for the acquisition of capital
facilities other than those recorded in Proprietary Funds. The Capital Projects Funds are used to account
for the acquisitions of capital facilities financed from general obligation bond proceeds or certificate of
obligation proceeds, or transfers from other funds. The City's Capital Projects Funds consist of the
following: Street Improvements, Utility Improvements, Drainage Improvements, Building Construction,
MPFDC Construction, MEDC Construction, and Equipment Replacement.

TIRZ (Tax Increment Reinvestment Zone)

The Tax Increment Reinvestment Zone is a specific fund designated to capture the tax increment in a
defined geographic zone. The tax increment is to pay for the public improvements specific to the zone or
area defined by ordinance. Any increase in value or property value increment may be used to pay for the
debt for these public improvements or be used to reimburse the developer for the public improvements
paid for by the developer on behalf of the City.

PROPRIETARY FUND TYPES:

Enterprise Funds

The Enterprise Funds are used to account for operations that are financed and operated in a manner
similar to private business enterprises where the costs (expenses, including depreciation) of providing
goods or services to the general public on a continuing basis are financed through user charges. The
City's Enterprise Funds are the Water & Sewer Fund and Environmental Services Fund.

OPERATING AND CAPITAL BUDGET RELATIONSHIP/ORGANIZATION

The City of Mansfield Budget for Fiscal Year 2021-2022 is comprised of the operating budget, which
includes all departmental budgets: General Fund, Debt Service Funds, Enterprise Funds, Special Revenue
Funds and Capital Projects Funds. The operating budget includes portions of the City’s Strategic Plan
which contains both operational and capital requirements.

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