Page 282 - CityofSouthlakeFY25AdoptedBudget

Tax Increment Finance District
Tax Increment Reinvestment Zone (TIRZ #1) 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.

How are special revenue funds used?
Special Revenue Funds
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.

282 FY 2025 City of Southlake | Budget Book