Page 531 - Southlake FY22 Budget

APPEnDIX

FrEQUEnTLY ASKED QUESTIOnS

Taxation

What is the current tax rate?
The FY 2022 tax rates are shown below. These rates are based on the certified Tarrant Appraisal District taxable values.

General Fund .325
Debt Service .065
Total .390

The FY 2022 tax rate of $0.390 is $0.015 less than the FY 2021 tax rate of $0.405.

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 2022 budget is
$8,220,731,143 (net TIF). One cent is the equivalent of $822,073 (net TIF) in revenue to the City of Southlake.

What percentage change occurred from the FY 2021 certified tax base to the FY 2022 tax base?
The percentage change from FY 2021 certified taxable value to FY 2022 certified was 5.8% (net TIF).

What additional revenue will this growth generate for the General Fund?
The City of Southlake is proposing a reduced tax rate for FY 2022, 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 2022, residential property accounted for 70% and commercial/industrial/retail property accounted for 30% of
the total tax base.

What is meant by the terms “No New Revenue Rate” and “voter Approval Rate”?
The “no new revenue rate” (formerly called 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 “Voter Approval Rate”
(formerly called the rollback rate) is that rate which is three and a half percent higher than the maintenance and
operation portion of the no new revenue 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 no new revenue rate and voter approval rate for FY 2021?
The no new revenue tax rate for FY 2022 is $0.3971, which is 1.8% higher than the proposed rate of $0.390. The voter
approval rate (adjusted for unused increment rate) for FY 2022 is $0.435175.

530 FY 2022 City of Southlake | BUDGET BOOK
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