Page 77 - CityofForestHillFY26Budget
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CITY OF FOREST HILL
Summary Other Special Funds
There are 4 funds with special purposes that are 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 an Interlocal Agreement with the Forest Hill Public 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.”
2026 Adopted
FUND 10 HOTEL OCCUPANCY Budget
HOTEL TAX REVENUE $(550,000.00)
INTEREST REVENUE $(230,000.00)
TOTAL HOTEL OCCUPANCY REVENUE $(780,000.00)
FURNITURE & FIXTURES $200,000.00
CAPITAL EQUIPMENT $100,000.00
ADMN FEE-SALARIES, INS, IT, MORE $150,000.00
TOTAL HOTEL OCCUPANCY EXPENDITURE $450,000.00
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