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Fund Structure

The City of Colleyville’s accounting and {nancial repor ting 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 (GA AP) 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 Ser vice 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 Ser vice Fund is suppor ted primarily by annual proper ty tax
assessments and is governed by a legally adopted annual budget .

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 Cour t Technology and Building Security Funds, Voluntary Library and Voluntary Parks Funds,
Colleyville Tomorrow Fund, Parks Tomorrow Fund, Park Land Dedication Fund, Sesquincentennial Fund, Special Donations
Fund, Public Ar ts Fund, Deployment Fund, Tree Preser vation Fund, Library Building Donation Fund, Recreation Event
Fund, Leose Fund, and the Juvenile Case Manager Fund, focus on nonrecurring costs and are not subject to annual
operating budgets.

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
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 char ter. Funded through proper ty taxes from par ticipating entities, the TIF suppor ts 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 in 2030.

Proprietary 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.

FY 2025-2026 Annual Budget | Colleyville Page 23