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Water Impact Fee and Sewer Impact Fee Funds

Each of these funds receive revenue from fees associated with new development. Expenditures
are tied to projects within the scope of each fund and can be used to pay related debt through
a transfer to the appropriate fund, typically the Water/Sewer Fund.

CAPITAL PROJECT FUNDS

Capital Project Fund

The Capital Project Fund receives revenues from the City’s waste collection contractor,
Waste Connections, based on their overall landfill revenue. Funds are transferred to Debt
Service to pay for debt requirements related to improvements to Dick Price Road, the road
that leads to the landfill.

Capital Bond Fund

The Capital Bond Fund receives proceeds from bonds and records the project expense
associated with the bond proceeds. Projects in this fund are independent from those recorded
in the Water/Sewer Fund.

Park Dedication Fund

Revenue for the Park Dedication Fund comes primarily from fees associated with certain
residential developments within the City and proportionate interest income from pooled
investments. Expenditures from this fund are tied to park maintenance and improvements.

Library Building Fund

This fund was established to fund the current facility. Without any new capital projects, this
fund is essentially sitting dormant.

Roadway Impact Fee Fund

Roadway Impact Fee Fund is funded primarily with new development fees and used to fund
related projects

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

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