Page 324 - Southlake FY20 Budget

Sales Tax Districts
Special Revenue Funds

SALES TAx DISTRICTS

Sales Tax Districts Southlake Sales Tax Districts
As with all other special revenue funds, sales tax districts
revenues are designated for specific purposes. State law
regulates both the types of sales tax districts cities may
utilize and the use of their funds, and the final approval of
all sales tax districts is up to the voters. In Southlake, the
total sales tax rate is 8.25%. Of that, the City receives a
$0.02 of sales tax for every dollar spent in our city limits (the
remainder goes to the State).

One of those pennies goes to the General Fund and can
be spent on general operating costs, like supplies, salaries,
and general maintenance. The other penny is split between our Crime Control and Prevention District (CCPD), the
Southlake Parks Development Corporation (SPDC), and the Community Enhancement and Development Corporation
(CEDC). The money collected in these districts can only be used for the purposes outlined in the original referendum
presented to the voters, so we set up separate funds to account for the revenues and expenditures of each unit.

How does sales tax
benefit Southlake Sales Tax Revenue Since 2015

residents? CRIME CONTROL & PREVENTION DISTRICT SOUTHLAKE PARKS DEVELOPMENT CORPORATION
We estimate that non-residents COMMUNITY ENHANCEMENT & DEVELOPMENT CORPORATION GENERAL FUND
that shop and dine in Southlake $35,000,000
generate 70 to 75% of the sales tax
revenue. Why is this important? $30,000,000
This means that “imported tax
payers” visiting the City are $25,000,000
footing a large portion of the $14,339,915 $13,480,025 $13,732,007 $14,111,661 $14,700,000 $15,000,000
bill for important infrastructure $20,000,000
and services that these funds DOLLARS
provide. These monies are used $15,000,000
to fund parks development, crime $7,440,726 $5,421,104 $5,613,663 $5,707,414 $5,650,340 $5,650,340
prevention and safety initiatives, $10,000,000
construction and operations
of The Marq Southlake, and $5,000,000 $7,335,505 $7,318,490 $7,578,446 $7,705,009 $7,650,000 $7,650,000
economic development, as well as $1,803,605 $1,879,292 $1,923,567 $1,881,000 $1,881,000
pay off the debt for these funds. $- 2015 2016 2017 2018 2019* 2020**
Utilizing special sales tax districts FISCAL YEAR
has allowed the City of Southlake
to maintain an excellent financial
condition and reduce the property tax burden. In FY 2020, more than 30% of the total debt service will be repaid
using sales tax collected for these districts.

Southlake’s strong shopping and dining economy has helped maintain steady sales tax growth since the economy
began recovering from the recession in 2011. For FY 2020, we anticipate total sales tax revenue to be $30,181,340.
This is a 0.8% increase over the Adopted FY 2019 Budget. The chart above shows the sales tax collection since 2015.

The remainder of this section will provide more detail about each of the special sales tax districts and their uses.

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