Page 61 - Southlake FY20 Budget

Budget 101

• Red Light Camera
This fund accounts for fines collected from violations issued from the City’s red light enforcement camera
system. Funds collected by the City of Southlake as a result of violations/citations issued must be used for
traffic safety programs, per State law.

• Reforestation
This fund accounts for monies derived from assessments related to the tree preservation ordinance and
policies.

• Southlake Parks Development Corporation (SPDC)
The Southlake Parks Development Corporation was formed when Southlake voters approved the special levy
of a half-cent sales tax in the mid-1990s. The half-cent, which generates about $5 million per year, is dedicated
toward the acquisition and development of Southlake’s park land. The specific projects are identified in the
City’s Capital Improvements Program (CIP). State law permits these funds to be used for operational costs, as
well as capital costs.

• Storm Water Utility
This fund accumulates dollars collected by the storm water utility fee paid monthly by the owners of all
of Southlake’s developed properties. These fees provide a funding source for maintenance, repair, and
construction of storm water facilities, and can only be spent for these purposes. The monthly storm water fee
is the same for all residential dwelling units. Residential properties are charged $8 per month for each dwelling
unit that is on the property. Fees for non-residential properties are calculated individually in proportion to
each property’s storm water runoff potential.

• Tax Increment Finance District
Tax Increment Reinvestment Zone (TIRZ) Number One or the Tax Increment Finance (TIF) District was created
in 1997, with an effective beginning date of January 1, 1998 to encourage quality commercial development
in the City. Incremental values subsequent to January 1997 are taxed at the City’s tax rate of $.462 per $100
of assessed value; however, 100% of the ad valorem tax revenues are utilized within the District, rather than
being allocated to the City’s overall budget. These funds pay for public projects in Town Square, such as water,
sewer and roads within the District. Overlapping taxing entities, including Tarrant County, Tarrant County
College District, Tarrant County Hospital District, and the Carroll Independent School District have agreed to
participate at varying levels in the TIF District by assigning their ad valorem tax dollars as well.

Fund Balance
It should be noted that each fund summary for all of the City’s funds ends with a line named “fund balance.” Fund
balance is defined as, “The excess of an entity’s assets over its liabilities in a particular fund.” In other words, it is the
balance that remains once the fund’s expenditures have been deducted from its revenues. In the City of Southlake,
the amount of fund balance for each fund is dictated by different parameters. In the case of the General Fund and
the Utility Fund, fund balance is defined in the City’s Statement of Financial Policies (see the Appendix). Balances for
other funds are determined by other parameters such as bond covenants. Fund balance is a fundamental barometer
of fiscal wellness and it is important to note that the fund balance for all funds meets every established requirement.

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