Page 26 - Approved Annual Budget FY 2019-2020_Flat

P.D. Seized Fund
The P.D. Seized Fund was established to account for the deposit and use of confiscated monies seized by the Police
Department. The revenues will be used for the enhancement of the Police Department, previously accounted for in the
General Fund.

This year, the P.D. Seized Fund will have no appropriated activity this fiscal year with a fund balance of $3.1M.

Downtown Services Fund
The Downtown Services Fund was established to account for the parking meter fees and parking fines, as well as the activities
associated with downtown services, includes operation of a new parking garage.

Revenues are estimated at $1.27M. This year’s budgeted expenditures amount to $1.28M, inclusive of a provision
that has been made to reimburse, by transfer, $55K to the General Fund.

Drainage Fee Fund
The Drainage Fee Fund was established to account for the resources received under Ordinance 2018-02 for
providing improvements that relate to a stormwater management system within the corporate City limits.

Revenues are estimated at $1.3M with improvements to be undertaken in the amount of $2.4M. Seven projects
have been budgeted as listed on page 124. The difference in amounts is attributed to the fund balance of $674K.

DEBT SERVICE FUNDS

Debt Service Fund - General Obligation Bonds
The Debt Service Fund is established by Ordinances authorizing the issuance of general obligation bonds. The fund provides
for payment of bond principal, interest, paying agent fees, and a debt service reserve as a sinking fund each year. An ad
valorem tax rate and tax levy is required to be computed and levied, which will be sufficient to produce the money required to
pay principal and interest as it comes due and provide the interest and sinking fund reserve.

Legal Debt Limit

The State of Texas limits the ad valorem tax rate to $2.50 per $100 valuation. Other than the amount resulting
from such rate limitation, there is no legal debt limit. The computation of this limit is presented on page 17. The
City held a Bond Election (Series 2014) and issued $45M in Bonds for the construction of a New Performing Arts
Facility, a Sports Facility Complex, and Street Improvements with each major project allocated $15M; an
outstanding balance of $35.6M remains. The City has a Refunding Bond Series 2015 in the initial amount of
$12M with an outstanding amount of $3.3M. The City issued $25M General Obligations for Drainage
Improvements. The City issued a Certificate of Obligations in the amount of $5.9M for the construction of a
Parks Facility building and the reconstruction of Fire Station #2; an outstanding balance of $5.8M remains. In
addition, the City issued Series 2018 and Series 2019 General Obligations for Traffic and Drainage Improvements
for $4M and $19M, respectively. The total outstanding amount for the current year is $92M.

The City also has a $12M Certificate of Obligation for the Performing Arts Facility, which is to be paid with
revenue generated from the Hotel Tax Venue. This Certificate of Obligation has a remaining outstanding balance
of $9.8M. In addition, the City has a Combination Tax and Revenue Certificates of Obligation (Series 2011) in the
amount of $7.5M which will be paid with the Passenger Facility Charge (PFC) Fund. This Certificate of Obligation
has a remaining outstanding balance of $6.7M. Therefore, a provision has been made in the Airport Fund to
allocate a portion of the revenues for debt service.

Debt Service Funds – Revenue Bond Issues
Enterprise Fund/Sales Tax Revenue Bonds
The Debt Service Funds other than general obligation bonds are established by Ordinances authorizing the issuance of
revenue bonds. The fund provides for payment of bond principal, interest, paying agent fees, and a debt service reserve as a

Executive Summary Page xv