Page 31 - Southlake FY20 Budget

Transmittal Letter

Indirect charge/transfers. A transfer of $79,040 to the General Fund is planned for an indirect charge.

Fund balance. The ending fund balance for the CCPD Operating Fund is projected at $3,801,831.

The budget of the Crime Control and Prevention District supports the focus area
of Safety & Security and the strategic corporate objective of “Achieve the highest
standards of safety and security.”

Community Enhancement and Development Corporation

In May 2015, Southlake voters overwhelmingly approved the reallocation of a portion of the CCPD half-
cent sales tax for the purpose of constructing and operating a recreation center through a Community
Enhancement and Development Corporation (CEDC). The CCPD half-cent sales tax was reduced to a one-
eighth cent tax and the remaining three-eighths was reallocated to address recreational and economic
development needs for the City, as permitted by State law, through the CEDC.

The three-eighths cent sales tax collected for this corporation was largely used to construct Phase 2 of The
Marq Southlake, known as Champions Club. (Recall that Phase 1 was funded using a combination of General
Fund and Southlake Parks Development Corporation cash.)

The corporation funding will also be used to supplement the operating expenses for The Marq Southlake
not recovered with facility and program fees. Finally, a portion of the funds will also be used for economic
development initiatives.

The CEDC, which is governed by a seven-member Board of Directors, began collecting the sales tax in October
2015.

The CEDC operating fund highlights are shown as follows:

Revenue highlights. For FY 2020, $5,650,340 is anticipated in sales tax collections, along with $2,524,105
in charges for services. Staff projects $140,000 in interest income for total revenues of $8,314,445.

Expenditure highlights. Total operating expenses for the CEDC are estimated at $4,303,670. Transfers for
the indirect charge, debt service, and the Capital Improvements Program total $2,922,484. The ending fund
balance is projected at $7,905,233. The CEDC Board of Directors approved the operating budget at the July
25, 2019, meeting.

Highlights of planned expenditures for the CEDC operating fund are shown below:

• Personnel. The CEDC budget includes resources needed to manage and operate both Legends Hall
and Champions Club at The Marq. This fund will cover its portion of employee pay adjustments and
the increases in benefit costs as described in the General Fund portion of this letter.

The FY 2020 proposed CEDC budget also includes the addition of four full-time equivalent employees
to support Champions Club operations and upgrades 2.85 FTEs from Recreation Attendant I to
Recreation Attendant II.
30 www.CityofSouthl ake.com