Page 13 - CityofForestHillFY26Budget

CITY OF FOREST HILL

COMMUNITY DEVELOPMENT FUND –SALES TAX RECIPIENT
The Community Development Corporation (CDC) Fund is a component entity of the City of Forest Hill.
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.

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 rights-of-way.
Companies involved in sanitation, telecommunications, and utilities must pay the city for the use of its
streets and rights-of-way. 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 as well. Two categories are 1) Licenses, permits and fees and 2) Fines
and forfeitures. Licenses and permits include items such as construction permits, impact fees, zoning and
developer’s fee, 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 are 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.

Page 9 of 102