Page 33 - Southlake FY22 Budget

TrAnSMITTAL LETTEr

COmmuniTy enhanCemenT and
develOPmenT COrPOraTiOn CedC exPendiTure highlighTs

fund iTem exPendiTure
In May 2015, Southlake voters overwhelmingly
approved the reallocation of a portion of 2.5% cost of
the CCPD half-cent sales tax for the purpose living base pay
of constructing and operating a recreation adjustment;
center through a Community Enhancement Pay adjustment Merit, Market
and Development Corporation (CEDC). The where
CCPD half-cent sales tax was reduced to Personnel applicable
a one-eighth cent tax and the remaining
three-eighths was reallocated to address Health insurance 0.1% rate
recreational and economic development decrease
needs for the City, as permitted by State law,
through the CEDC. Dental insurance 1% rate
decrease
The three-eighths cent sales tax collected Target industry and
for this corporation was largely used to Operations daytime population $50,000
construct Phase 2 of The Marq Southlake, analysis study
known as Champions Club. (Recall that Phase
1 was funded using a combination of General
Fund and Southlake Parks Development Transfer Transfer to CEDC $160,000
Corporation cash.) Replacement Fund

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.

Sales tax collections for the district began in October 2015. A seven-member board of directors works with
the City Council to oversee the budget.

The CEDC operating fund highlights are shown as follows:

Revenue highlights. For FY 2022, $8,904,709 in total revenue is anticipated for this fund. This represents a
projected increase of 16.7% for the CEDC operating budget.

Expenditure highlights. Total operating expenses for the CEDC are estimated at $4,369,739. Transfers for
the indirect charge, CEDC Replacement Fund and debt service total $2,967,244. The ending fund balance is
projected at $12,347,726. The CEDC Board of Directors approved the operating budget.

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. Total personnel costs for FY 2022 are
$2,729,159.

32 FY 2022 City of Southlake | BUDGET BOOK
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