Page 346 - Southlake FY22 Budget

SPECIAL rEVEnUE FUnDS EXPEnDITUrES

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 2017
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 up to 70% 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 $15,660,985 $16,166,000 $16,405,450
footing a large portion of the $13,732,007 $14,111,661 $15,104,616
bill for important infrastructure $20,000,000
and services that these funds DOLLARS
provide. These monies are used $15,000,000 $6,006,255
to fund parks development, crime $5,613,663 $5,707,414 $5,734,078 $5,858,223 $5,930,500
prevention and safety initiatives, $10,000,000
construction and operations of The $8,020,000 $8,140,300
Marq Southlake, and economic $5,000,000 $7,578,446 $7,705,009 $7,741,005 $7,908,601
development, as well as pay off $1,879,292 $1,923,567 $1,898,389 $1,921,480 $1,970,000 $1,999,550
the debt for these funds. Utilizing $- 2017 2018 2019 2020 2021* 2022**
special sales tax districts has FISCAL YEAR
allowed the City of Southlake to
maintain an excellent financial
condition and reduce the property tax burden. In FY 2022, more than 38% 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 2022, we anticipate total sales tax revenue to be $32,551,555.
This is a 1.9% increase over the Adopted FY 2021 Budget. The chart above shows the sales tax collection since 2017.

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

BUDGET BOOK | FY 2022 City of Southlake 345
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