Page 293 - Southlake FY24 Budget

Tax Increment Finance (TIF) District Fund

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
DID YOU are taxed at the City’s tax rate; however, 100% of the “captured” ad valorem
KNOW? revenues are utilized within the zone, rather than being allocated to the City’s
DID YOU
KNOW? overall budget. Overlapping taxing entities, including Tarrant County, Tarrant Special Revenue Funds
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
TIF OPERATING FUND
invested in the zone for an additional twenty years. The City of Southlake and
2024 Proposed and 2023 Revised Budget
Carroll ISD are the only participating entities with the 20 year extension.

$ Increase/ $ Increase/
2022 2023 2023 (Decrease) % Increase/ 2024 (Decrease) % Increase/
Actual Adopted Amended Adopted -Decrease Proposed Adopted -Decrease
REVENUES
Ad Valorem $9,343,619 $9,468,834 $9,834,043 $365,209 3.9% $9,562,848 $94,014 1.0%
Interest Income ($12,950) $3,990 $170,000 $166,010 4160.7% $160,000 $156,010 3910.0%
Total Revenues $9,330,669 $9,472,824 $10,004,043 $531,219 5.6% $9,722,848 $250,024 2.6%

EXPENDITURES
Personnel $365,816 $366,754 $366,754 $0 0.0% $378,694 $11,940 3.3%
Operations $6,527,776 $6,715,639 $7,118,809 403,170 6.0% $6,840,935 125,296 1.9%
Capital $1,415,000 $0 $0 0 0.0% $0 0 0.0%
Total Expenditures $8,308,592 $7,082,393 $7,485,563 $403,170 5.7% $7,219,629 $137,236 1.9%

Net Revenues $1,022,077 $2,390,431 $2,518,480 $128,049 $2,503,219 $112,788

Transfers Out-General Fund 0 0 0 0
Transfers Out -Debt Service 0 0 0 0
Total Other Sources (Uses) $0 $0 $0 $0

Beginning Fund Balance $5,641,894 $6,663,971 $6,663,971 $9,182,451
Prior period adjustment
Ending Fund Balance $6,663,971 $9,054,402 $9,182,451 $11,685,670

FY 2024 Highlights

- The incremental taxable value assigned to TIRZ #1 for the 2023 tax year is $594,407,828 which is a 11.3%
increase from the valuation for the 2022 tax year. This translates into anticipated revenues for the TIF
District Fund of $9,722,848, including interest income. Revenue projections include estimated CISD
payments based on a three year average.

- Total planned expenditures for FY 2024 are $7,219,629. These expenditures are attributable to projects
identified in the project and financing plan.

- The ending balance for this fund is projected at $11,685,670.
FY 2024 City of Southlake | Budget Book 293