Page 271 - Southlake FY24 Budget

Sales Tax Districts

As with all other special revenue funds, sales tax
districts revenues are designated for specific Southlake Sales Tax Districts
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 Special Revenue Funds
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 residents?
We estimate that non-residents that shop and dine in Southlake generate up to 70% of the sales tax
revenue. Why is this important? This means that “imported tax payers” visiting the City are supporting a
large portion of the bill for important infrastructure and services that these funds provide. These monies
are used to fund parks development, crime prevention and safety initiatives, construction and operations
of The Marq Southlake, and economic development, as well as pay off the debt for these funds. Utilizing
special sales tax districts has allowed the City of Southlake to maintain an excellent financial condition and
reduce the property tax burden. In FY 2024, about 34% of the total debt service will be repaid using sales
tax collected for these districts.

Sales Tax Revenue Since FY 2019
Southlake’s strong shopping
and dining economy has helped
maintain steady sales tax growth GENERAL FUND COMMUNITY ENHANCEMENT & DEVELOPMENT CORPORATION
SOUTHLAKE PARKS DEVELOPMENT CORPORATION CRIME CONTROL & PREVENTION DISTRICT
since the economy began $45,000,000
recovering from the recession in
$40,000,000
2011. For FY 2024, we anticipate
total sales tax revenue to be $35,000,000
$39,653,500. The chart to $30,000,000 $21,047,369 $19,908,000 $19,908,000
the right shows the sales tax $18,598,638
$25,000,000
collection since 2019. $15,660,985
DOLLARS $20,000,000 $15,104,616

The remainder of this section will $7,859,995 $7,423,500 $7,423,500
$15,000,000 $6,851,800
provide more detail about each of $5,734,078 $5,858,223
the special sales tax districts and $10,000,000 $9,249,931 $10,610,993 $9,898,000 $9,898,000
their uses. $5,000,000 $7,741,005 $7,908,601

$1,898,389 $1,921,480 $2,814,078 $2,567,974 $2,424,000 $2,424,000
$-
2019 2020 2021 2022 2023* 2024**
FISCAL YEAR *Amended
**Adopted
Figure 3
FY 2024 City of Southlake | Budget Book 271