Page 39 - CityofForestHillFY25AdoptedBudget

COMMUNITY DEVELOPMENT FUND – SALES TAX RECIPIENT

The Community Development Corporation (CDC) Fund is a component entity of the City of Forest Hill. The
CDC receives sales tax revenues which are restricted by State Law for community and economic
development uses. The programs of the CDC are administered by the Community Development
Corporation Board appointed by the City Council.

The CDC also transfers funds to the Debit Service Fund to provide 100% of the annual debt service
payment requirements for the Series 2014 general obligation refunding bonds.

The CDC does not have any physical location or any employees and therefore transfers funds annually to
the General Fund to pay for services received from use of City facilities and City staff.

STREET IMPROVEMENT FUND – SALES TAX RECIPIENT
The Street Improvement Fund accounts for the use of sales tax that is restricted for street repairs and
maintenance in the City. The fund also provides resources for the Streets-CIP Program via budgeted inter-
fund transfer to the capital projects fund. Street personnel are paid from the General Fund, so the Street
Improvement Fund transfers funds to the General Fund annually to pay for street repairs.

FRANCHISE FEES
The City of Forest Hill receives franchise fee payments for the use of its streets and right-of-ways.
Companies involved in sanitation, telecommunications, and utilities must pay the City for the use of its
streets and right-of-ways. Franchise fees are a significant source of income for the City.
HOTEL / MOTEL OCCUPANCY 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 1) Licenses, permits and fees and 2) Fines and
forfeitures. Licenses and permits include items such as construction permits, impact fees, fence permits,
pet licenses, and garage sale permits. Fines and forfeitures include items related to the Municipal Court
and Police Department such as traffic enforcement ticket collections, code enforcement collections, and
warrant collections.
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
business / for profit entity, by recovering operating, debt and capital costs from 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 Worth. A franchise contract is in effect for sanitation. The City provides
drainage services.

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