Page 33 - CityofColleyvilleFY23AdoptedBudget

TAX INCREMENT FINANCING DISTRICT (TIF) Accounts for revenues and expenditures to be collected and used for projects
authorized by the TIF charter that was adopted at it's creation in 1998 and its amendment in 2012. All TIF expenses are funded
through property taxes collected from all participating taxing entities off of the tax growth within the boundaries of the TIF. In
this case, large portions of the property tax revenues from the City of Colleyville, Grapevine-Colleyville Independent School
District, and the Tarrant County College District collected along the State Highway 26 commercial corridor are captured to be
used for speci ed improvements along that corridor. Tarrant County and the Tarrant County Hospital District were prior
participants in the TIF but met their nancial obligation threshold in 2012. Because several taxing entities are participants, the
TIF is considered a component unit of the City, governed by a separate Board of Directors. The TIF is set to expire in 2030. The
TIF Fund houses many of the projects adopted through the CIP, but does not have an annual operating budget.

SPECIAL REVENUE FUNDS Accounts for the revenues and expenditures associated with a special project or purpose, as all
special revenue funds are legally restricted for their uses. Three of these funds have annually adopted operating budgets, and
they are as follows:
The Colleyville Economic Development Corporation (CEDC) Fund is paid for through a half-cent sales tax levied on retail
sales sourced inside city limits. Expenses here are limited to operations and capital improvements associated with parks,
community centers, and the library.
Similarly, the Colleyville Crime Control and Prevention District (CCCPD) Fund is also paid for through a separately
authorized half-cent sales tax levied on retail sales sourced inside city limits, and allowable expenses here are limited to
operations and capital improvements associated with the Colleyville Police Department.
The Hotel Tax Fund is paid for through revenue derived from lodging taxes on hotel rooms inside city limits, and only be
used for expenses that promote the tourism industry, including (but not limited to) convention/civic center facilities,
general promotional and tourist advertising for the City, and the encouragement, promotion, improvement and
application of the arts. The City’s rst hotel opened in 2017, all revenue derived from the tax had been used on non-
recurring expenses relating to special events. However, beginning in scal year 2021 the City allocated operating costs to
this fund as authorized by state law. This includes a signi cant portion of the City’s advertising expenses as well as
personnel costs for Colleyville’s Community Relations Specialist and partial personnel costs for the Colleyville Center
Manager and its Sales and Event Specialist. Because all or part of these positions are dedicated to advertising the City
and bringing guests in from out of town, they meet the state’s tourism requirement for hotel taxes, allowing the City to
shift the costs away from the General Fund.

The following special revenue funds do not contain annual operating costs, but instead are used for nonrecurring supplies,
contractual, and capital costs. Many of these funds are included on the annually adopted capital improvement plan.
Court Technology and Security Funds are paid for through fees added to case convictions through the Colleyville/Keller
Municipal Court, and can only be spent on technology and security purposes.
Voluntary Library and Voluntary Parks Funds are paid for through citizen-elected contributions added on to their utility
bills. Funds here can only pay for improvements related to Colleyville parks and the library.
Vehicle and Equipment Replacement Fund is dedicated to long-term replacement of vehicles and technological
equipment in the City, and is paid for through annual transfers from the General Fund.
Colleyville Tomorrow Fund accounts for proceeds received on gas leases on city-owned property, and may only be used
for capital purchases.
Similarly, the Parks Tomorrow Fund accounts for proceeds received on gas leases on city-owned parks property, and may
only be used for capital purchases.
Park Land Dedication Fund accounts for acquisition of land and improvements for new parks sites. Fees collected from
platting of new residential and commercial property fund these costs.

PROPRIETARY FUNDS budgeted on a full accrual basis. Under this method revenues are budgeted in the period when earned
and expenses are budgeted in the period when they are expected to occur.

ENTERPRISE FUNDS Accounts for operations that are nanced in a manner similar to private business enterprises where the
intent of the governing body is that the costs of providing goods or services be nanced or recovered through charges to the
user. The Utility Fund and Drainage Utility Fund are examples of this type of fund. The Utility Fund provides water and sewer
services and the Drainage Utility Fund provides for maintenance of drainage facilities. There is a legally adopted annual budget
for each of these funds.

Both the Utility Fund and Drainage Utility Fund have capital improvement fund components that are budgeted separately. For
the purposes of the City’s audit, however, the capital and operating components of each are combined.

City of Colleyville | Budget Book 2023 Page 33