Page 272 - Southlake FY23 Budget

SPECIAL REVENUE FUNDS

• Red Light Camera
This fund accounts for funds collected from violations issued from the City’s red light enforcement camera
system. Funds collected by the City of Southlake as a result of violations/citations issued, must be used for
traffic safety programs, per State law. Governor Greg Abbott signed a bill into law banning the use of red
light cameras on June 1, 2019. Under the new law, the City’s red light camera program immediately ceased
operation.

• Reforestation
This fund accounts for monies derived from assessments related to the tree preservation ordinance and
policies.

• 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.

hoW are SPeCial revenue fundS uSed?
The charts on the following pages illustrate all City revenues and expenditures and show that the General Fund and
Utility Fund account for about 65% of revenues and expenditures (to read more about these funds see the General
Fund and Utility Fund sections). These charts also show that aside from debt service, special revenue funds account
for the remainder.

So what does this mean for Southlake? By utilizing special revenue funds, the City is able to strategically invest
dollars in projects that can be funded through dedicated revenue streams rather than spreading these costs to the
property taxpayers by spending General Fund property tax revenues.

BUDGET BOOK | FY 2023 City of Southlake 271
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