Page 66 - Southlake FY22 Budget

BUDGET OVErVIEW

GUIDE TO THE BUDGET DOCUMEnT

• 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. 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. It was designed to encourage quality
commercial development in the City. Incremental values subsequent to January 1997 are taxed at the City’s
tax rate; however, 100% of the “captured” ad valorem revenues are utilized within the zone, rather than being
allocated to the City’s overall budget. Overlapping taxing entities, including Tarrant County, Tarrant County
College District, Tarrant County Hospital District, and the Carroll Independent School District have participated
at varying levels as investors in TIRZ #1 by assigning their ad valorem tax dollars as well. These funds pay
for public projects in Town Square, such as water, sewer and roads within the District. In 2018, TIRZ #1 was
extended for an additional 20 years. This means that funds will continue to be collected on the incremental
tax value and invested in the zone for an additional twenty years. The City of Southlake and Carroll ISD are the
only participating entities with the 20 year extension.

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.

BUDGET BOOK | FY 2022 City of Southlake 65
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