Page 276 - Southlake FY23 Budget

Sales Tax Districts

SaleS tax diStriCtS

As with all other special revenue funds, sales tax districts Southlake 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 fy 2018
resIdents? GENERAL FUND COMMUNITY ENHANCEMENT & DEVELOPMENT CORPORATION
CRIME CONTROL & PREVENTION DISTRICT
SOUTHLAKE PARKS DEVELOPMENT CORPORATION
We estimate that non-residents $45,000,000
that shop and dine in Southlake
generate up to 70% of the sales tax $40,000,000
revenue. Why is this important? $35,000,000
This means that “imported tax
payers” visiting the City are $30,000,000 $18,598,638 $19,715,165 $19,908,000
footing a large portion of the bill $25,000,000
for important infrastructure and DOLLARS $14,111,661 $15,104,616 $15,660,985
services that these funds provide. $20,000,000
These monies are used to fund parks $15,000,000 $6,851,800 $7,350,000 $7,423,500
development, crime prevention and $5,707,414 $5,734,078 $5,858,223
safety initiatives, construction and $10,000,000
operations of The Marq Southlake, $7,705,009 $7,741,005 $7,908,601 $9,249,931 $9,800,000 $9,898,000
and economic development, as well $5,000,000
as pay off the debt for these funds. $- $1,923,567 $1,898,389 $1,921,480 $2,814,078 $2,400,000 $2,424,000
Utilizing special sales tax districts 2018 2019 2020 FISCAL YEAR 2021 2022* 2023**
*Amended
has allowed the City of Southlake **Proposed
to maintain an excellent financial
condition and reduce the property tax burden. In FY 2023, about 34% 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 2023, we anticipate total sales tax revenue to be $39,653,500.
This is a 21.8% increase over the Adopted FY 2022 Budget. The chart above shows the sales tax collection since
2018.

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

BUDGET BOOK | FY 2023 City of Southlake 275
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