Page 21 - CityofColleyvilleFY25AdoptedBudget

Budgetary Fund Structure
The City of Colleyville’s accounting and nancial reporting are conducted in accordance with methods prescribed by the
Governmental Accounting Standards Board (GASB) and the Government Finance Of cers Association (GFOA). The City’s
accounting policies conform to generally accepted accounting principles (GAAP) applicable to governmental entities.
Accordingly, the City’s accounts are organized on the basis of funds, each considered a separate accounting entity with its
own set of self-balancing accounts, which comprise its assets, liabilities, fund balance, revenues, and expenditures.

Funds are used in governmental accounting to segregate sources and uses of monies, ensuring that resources are
properly allocated to their intended purposes. The City of Colleyville employs several fund types to manage its nancial
operations:

Governmental Funds
Governmental funds are budgeted on a modi ed accrual basis. Revenues are recognized when they are both measurable
and available, meaning collectible within the current period or 60 days thereafter to pay the liabilities of the current
period. Expenditures are budgeted when the liability is expected to be incurred.

General Fund: The General Fund is the general operating fund of the City and its most signi cant fund. It accounts for all
nancial resources not required to be accounted for in another fund. This fund covers essential City functions such as
public safety, public works, community development, parks, and general administration. Temporary grant programs that
are ultimately funded by the General Fund are also included here. The General Fund is governed by a legally adopted
annual budget.

Debt Service Fund: This fund is used to account for the accumulation of resources for, and the payment of, general long-
term debt principal, interest, and related costs. The Debt Service Fund is supported primarily by annual property tax
assessments and is governed by a legally adopted annual budget.

General Capital Project Fund: This fund is utilized for nancial resources earmarked for the acquisition or construction of
major capital improvements and facilities. While the City Council adopts a rolling 5-year Capital Improvement Plan (CIP),
the General Capital Project Fund itself does not have an annual operating budget. Instead, it focuses on long-term capital
projects, ensuring that Colleyville’s infrastructure and facilities meet future needs.

Tax Increment Financing District (TIF): The TIF Fund accounts for revenues and expenditures related to projects
authorized by the TIF charter. Funded through property taxes from participating entities, the TIF supports infrastructure
improvements within its designated area. This fund is considered a component unit of the City and is governed by a
separate Board of Directors. The TIF Fund houses projects adopted through the CIP and does have an annual operating
budget. The TIF is set to expire on 2030.

Special Revenue Funds: These funds are used to account for revenues that are legally restricted to speci c purposes. The
Colleyville Economic Development Corporation (CEDC) Fund, Colleyville Crime Control and Prevention District (CCCPD)
Fund, and Hotel Tax Fund are examples of special revenue funds with legally adopted annual budgets. Other special
revenue funds, such as the Court Technology and Security Funds, Voluntary Library and Voluntary Parks Fund, Colleyville
Tomorrow Fund, Parks Tomorrow Fund, Park Land Dedication Fund, and the Vehicle and Equipment Replacement Fund,
focus on nonrecurring costs and are not subject to annual operating budgets.

Proprietar y Funds
Proprietary funds are budgeted on a full accrual basis. Revenues are budgeted in the period when earned, and expenses
are budgeted in the period when they are expected to occur.

Enterprise Funds: These funds account for operations that are nanced and operated in a manner similar to private
businesses. The City of Colleyville utilizes Enterprise Funds to manage its Utility Fund and Drainage Utility Fund. These
funds cover the costs of providing water, sewer, and drainage services, with operations primarily nanced through user
charges. Each of these funds is governed by a legally adopted annual budget, and they also include capital improvement
components, which are integrated into the City's audit processes.

City of Colleyville | Budget Book 2025 Page 21