Page 58 - CityofForestHillFY25AdoptedBudget

Summary Capital Type Funds (Continued)

The Fleet Fund is an internal fund used to keep track of the cost of the City vehicle program with
Enterprise Rental Car Company. The vehicles are leased from 5 to 7 years and are refreshed as
needed.

Summary Other Special Funds

There are 4 funds with special purposes that are not not grouped above as Court, Police, Grant,
or Capital Type funds.
1) Hotel Occupancy Tax Fund -- accounts for the hotel taxes collected from hotels and motels
located in the City of Forest Hill. These taxes are restricted for use for the promotion of
tourism and economic development in the City.
2) Park Improvement Fund accounts for donations for park improvements and uses are
specified by City ordinance.
3) Library Fund – through inter-local agreement with the Forest Hill Library, the City pays the
salary and benefits of the librarian. The City issues a quarterly invoice for the cost, and
the library pays the invoice within 10 days.
4) PEG Channel Fund – Under Chapter 66 of the Texas Utilities Code and Chapter 283 of the
Texas Local Government Code, cities receive quarterly a 5% right-of-way rental (franchise)
fees from “bundled” cable and telecommunications providers. Funds are deposited in
the General Fund and the City Council determines how they are spent. However, state
law imposes limitations on the use of and accounting related to a one-percent PEG fee
from the same providers. Under Chapter 66, the Public, Educational, and Government
(PEG) fee is paid quarterly in the same manner as the five percent franchise fee; however,
the law requires the City to: (a) establish a separate account for the PEG fee revenue; and
(b) maintain “a record of each deposit to and disbursement from [the PEG fee] the
separate account, including a record of the payee and purpose of each disbursement.”
Additionally, under Chapter 66, a PEG fee may be spent only as permitted by federal law
(47 U.S.C. § 521, et seq. Federal Cable Law). Federal law provides that the fee must be
used for “capital costs for PEG facilities.”

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