Page 22 - Southlake FY22 Budget

TrAnSMITTAL LETTEr

roll – the no new revenue tax rate
and the voter approval tax rate. The ASSESSED VALUE TAXABLE VALUE
no new revenue rate is the rate that $12,000
will generate the same amount of $10,714 $11,138
property tax dollars as the previous $11,000 $10,526
year, excluding new construction $10,000 $9,810
and annexations, when the two
years are compared. $9,000 $8,269 $8,743

If a city adopts a tax rate exceeding VALUATION IN MILLIONS OF $ $8,000 $7,323 $7,770 $7,769 $8,221
the voter approval rate (3.5 percent $7,000 $6,654 $6,760 $7,287
maintenance and operation rate $6,000 $6,369 $6,662
growth, plus “unused increment $5,785
rate”), then the city must hold an $5,000 $5,495 $5,680
automatic election. Depending on
the ultimate rate that is chosen $4,000
by the City and its relationship to $3,000
these legally defined rates, there 2014 2015 2016 2017 2018 2019 2020 2021 2022
are requirements that must be Figure 7: Comparison of property values since FY 2014 (assessed and taxable)
followed to comply with truth-in-
taxation laws. These requirements protect the public’s right-to-know concerning tax rate decisions.

As shown in Figure 8, Southlake’s calculated no new revenue and voter approval rates are higher for FY 2022
than the adopted tax rate. Therefore, the tax rate is not subject to an automatic election.

Revenue highlights. The adopted FY 2022 budget projects $49.6 million in General Fund revenues, an
increase of more than $3.1 million or 6.7% from the FY 2021 adopted budget.

The largest single revenue source in the adopted General Fund budget is the property tax. Staff is estimating
$26,662,376 in property tax revenue, an estimated increase of $1,080,851 or 4.2% over the FY 2021 adopted
budget.

The second largest revenue source for the General Fund is sales tax. Staff forecasts a 14.6% increase in sales tax
revenue. The sales tax collection trend is shown in Figure 9 on the next page. The City expects to collect $16.4
million in the General Fund for FY 2022.
When reviewing the chart, please note
that the City has levied special purpose Tax raTe COmParisOn
sales taxes for park development, crime
control, and community enhancement. fisCal year Tax raTe nO new revenue vOTer aPPrOval
These funds will be discussed later in this raTe raTe*
letter. 2021 $0.405 $0.422415 $0.437526
2022 $0.390 $0.397100 $0.435175
Franchise fees collected from private Figure 8: Comparison of tax rate, no new revenue rate, and voter
utility companies operating in the City
provide another source of General approval rate.
*Note the Voter Approval Rate is adjusted for unused increment credit.

BUDGET BOOK | FY 2022 City of Southlake 21
WWW.CITYOFSOUTHLAKE.COM