Page 36 - Southlake FY23 Budget

TRAnSmITTAL LETTER

Hotel Occupancy Tax. The Hotel Occupancy Tax speciAl reVenue Funds
is authorized under the Texas Tax Code, Chapter
351. The City of Southlake adopted Ordinance No. expenditure highlights
769 in February 2000, levying a 7% tax on room Fund item expenditure
receipts. The tax on hotel rooms is providing the
revenues to the city in this category. The first 5% cost of
expenditures from this fund were made in FY Commercial Pay adjustment living base pay
2008. Planned expenses must be authorized uses Vehicle adjustment
under the Texas Tax Code, Chapter 351. Enforcement
Fund Health insurance 9.4% rate
For FY 2023, revenues are estimated at increase
$1,707,800, an increase of 76.4% compared
to the FY 2022 adopted budget. This increase 5% cost of
is attributable to post-pandemic recovery and Pay adjustment living base pay
the addition on a new hotel. The operating adjustment
budget currently includes funding for the Court Security
Tourism Marketing Manager, and a portion of
the cost of the Assistant City Manager, Economic Metal detector for Court $4,000
Development & Tourism Director, Marketing and
Graphic Design Coordinator, and administrative
support staff costs directly attributable to tourism. Replacement citation $37,500
writers
Total planned expenditures for this fund for FY
2023 are $965,493. Transfers to other funds total Court Code Enforcement
$824,482, including the indirect transfer to the Technology module $12,000
General Fund of $68,312, $256,170 to the Public
Art Fund, and $500,000 to create a fund set-aside
for a future performing arts facility. Replacement credit card
terminals $1,500
The ending fund balance is projected at
$2,405,749. This balance will carry forward for 5% cost of
future initiatives to promote tourism in the city. Pay adjustment living base pay
adjustment
Hotel Occupancy Tax Funds Hotel
support the strategic Occupancy Tax
focus area of Performance Fund Health insurance 9.4% rate
Management and Service increase
Delivery, and the strategic corporate Wayfinding sign
objective of “Enhance resident quality of maintenance / $50,000
life & business vitality through tourism.” replacement

Library Donations. Staff is anticipating Library Special projects Defined by
approximately $4,070 in donations and the $8,000 Donations donor
in expenditures will be for library special projects,
which are often defined by the donor. Ending fund Parks and Swim Safety Program $10,000
balance is projected at $10,145. Recreation Fund

Park Dedication Fees. This special revenue fund accounts for funds from park dedication fees on new development.
Use of park dedication fees is restricted to park improvements and primarily used for capital expenses. No projects
are planned for funding through this budget for FY 2023.

BUDGET BOOK | FY 2023 City of Southlake 35
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