Page 16 - CityofEulessFY26AdoptedBudgetOrdinance2432

RISK MANAGEMENT & WORKERS COMPENSATION FUND

This fund is used to account for the revenue and expenses applicable to providing workers'
compensation coverage for all City employees, as well as, general liability and property
coverage. The reserve in this fund is $ 1, 000, 000.

SPECIAL REVENUE FUNDS

Hotel/ Motel Fund

The Hotel/ Motel Fund was established to account for a 7% hotel/ motel occupancy tax
allowed by the State of Texas. The tax is levied on the rental of a hotel/ motel room within
the City of Euless. Funds generated by this occupancy tax must be expended for items
that qualify in accordance with state law including the promotion of tourism, programs
which enhance the arts, historical restoration programs, and convention facilities.

The hotel/ motel tax receipts are projected to increase over the current year's budget due to
the planned opening of three new hotels during the fiscal year. Historical preservation,
conference center operations, and contractual rebates are included in the proposed
budget. Capital expenses are proposed to fund a new wall system and hallway expansion
at the Texas Star Conference Centre. Increased funding for Arbor Daze is included in the
budget.

Half -Cent Sales Tax Fund — Euless Development Corporation ( EDC)

Euless citizens approved an additional 1/ 2¢ sales tax in 1993 that is restricted for parks,
library, and economic development activities. Sales tax revenue projections assume a 6%
increase over current budget. Recommended capital programs include transfers to CIP for
miscellaneous parks projects and future projects identified in the updated Parks Master
Plan. Other capital projects include funding for a mobile teaching kitchen, enhanced
technology, and resilient flooring for the library. This budget maintains the required
reserves equal to 60 days of working capital.

Car Rental Tax Fund

In November 1999, Euless citizens approved a 5% tax to be collected on all short- term
motor vehicle rentals within the City limits. In the spring of 2000, the Dallas -Fort Worth
International ( DFW) Airport opened a consolidated car rental facility within Euless city
limits. These funds are divided equally among Euless, Dallas, and Fort Worth per the
requirements of a revenue sharing agreement established by the parties in FY1997-98.

Revenue from car rentals continue to be strong. We expect revenues of $ 21, 104, 938 in
FY2025- 26 in the fund.

201 N. Ector Drive, Euless, Texas 76039- 3595
817/ 685- 1400 • Metro 817/ 267- 4403 • Fax 817/ 685- 1416
www. eulesstx. gov

Ordinance No. 2432, Page 16 of 474
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