Page 465 - Southlake FY20 Budget

Appendix

FREqUEnTLY ASKED qUESTIOnS

Taxation

What is the current tax rate?
The FY 2020 tax rates are shown below. These rates are based on the certified Tarrant Appraisal District taxable values.

General Fund .33
Debt Service .08
Total .41

The FY 2020 tax rate of $0.41 is $0.037 less than the FY 2019 tax rate of $0.447.

What revenue does one cent on the property tax rate generate?
The certified total taxable value (discounted for value protest) provided by the appraisal districts for FY 2020 budget is
$7,769,729,082 (net TIF). One cent is the equivalent of $776,973 (net TIF) in revenue to the City of Southlake.

What percentage change occurred from the FY 2019 certified tax base to the FY 2020 tax base?
The percentage change from FY 2019 certified to FY 2020 certified was 6.6% (net TIF) increase.

What additional revenue will this growth generate for the General Fund?
The City of Southlake is proposing a reduced tax rate for FY 2020, which returns 100% of the growth generated back
to the tax payer.

What is the distribution of the tax base between residential and commercial property?
In FY 2020, residential property accounted for 69.1% and commercial/industrial/retail property accounted for 30.9%
of the total tax base.

What is meant by the terms “Effective Tax Rate” and “Rollback Rate”?
The “effective tax rate” is the rate which would generate the same tax revenue in the new year as in the current
year, for properties on the roll in both years. The “rollback rate” is that rate which is eight percent higher than the
maintenance and operation portion of the effective rate, plus the required debt service for the new year. These
calculations determine how the City of Southlake will advertise taxation plans under state truth-in-taxation laws.

What is Southlake’s effective tax rate and rollback rate for FY 2020?
The effective tax rate for FY 2020 is $0.421665, which is 2.8% higher than the proposed rate of $0.41. The roll back
rate for FY 2020 is $0.473772.

What percentage change are we anticipating in general fund sales tax revenue for FY 2019 (Adopted)
to FY 2020 (budget)?
It is estimated that we will collect $15,000,000 in General Fund sales tax in FY 2020. This number represents a 5.2%
increase when compared to the FY 2019 Adopted Budget.

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