Page 25 - CityofKennedaleFY25AdoptedBudget

SPECIAL REVENUE FUNDS

TIF #1 New Hope Fund

Tax Increment Financing (TIF), authorized by Texas Tax Code Chapter 311, states local
governments can publicly finance needed structural improvements and enhanced
infrastructure within a defined area – a Tax Increment Reinvestment Zone (TIRZ) – to
encourage desired development. The tax increment is derived from the difference in
appraised value between the year in which the reinvestment zone is established (base year)
and each year the reinvestment zone is in existence.
Hotel Occupancy Tax Fund

Revenue for this Fund comes primary from taxes related to overnight stays within the City.
This is calculated as 7% of gross rents and remitted directly to the City each quarter. Presently,
this tax comes exclusively from short-term rentals.

Public Seizure Fund

Revenue for the Public Seizure Fund comes from property seizures related to law enforcement
activity. Expenditures are confined to law enforcement uses.

Law Enforcement Officer Standards and Education (LEOSE) Fund

The State Comptroller of Public Accounts collects and deposits proceeds from court costs into
the Law Enforcement Officer Standards and Education (LEOSE) account of the state treasury,
which is then distributed to local law enforcement agencies. Local agencies must use the funds
to provide continuing education or necessary training for law enforcement officers.

Disaster Recovery Fund

The Disaster Recovery Fund (35) tracks transactions related to the American Rescue Plan Act of
2021 (ARPA).

OTHER FUNDS

Capital Replacement Fund

The Capital Replacement Fund receives transfers from other funds that utilize vehicles.

Court Security Fund

Revenue for the Court Security Fund comes from a $3 fee assessed to defendants
convicted of misdemeanors as a cost of court. Expenditures may only be used for security
personnel, services, and items related to buildings that house the operations of our Municipal
Court.

CITYOFKENNEDALE.COM/BUDGET 25