Page 59 - 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. Budget Overview
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,
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.

Fund Balance

It should be noted that each fund summary for all of the City’s funds ends with a line named “fund bal-
ance.” Fund balance is defined as, “The excess of an entity’s assets over its liabilities in a particular fund.”
In other words, it is the balance that remains once the fund’s expenditures have been deducted from
its revenues. In the City of Southlake, the amount of fund balance for each fund is dictated by different
parameters. In the case of the General Fund and the Utility Fund, fund balance is defined in the City’s
Statement of Financial Policies (see the Appendix). Balances for other funds are determined by other
parameters such as bond covenants. Fund balance is a fundamental barometer of fiscal wellness and it is
important to note that the fund balance for all funds meets every established requirement.

FY 2024 City of Southlake | Budget Book 59