Page 266 - Southlake FY24 Budget

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,
Special Revenue Funds
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.

266 FY 2024 City of Southlake | Budget Book