Page 287 - CityofSouthlakeFY25AdoptedBudget

Sales Tax Districts

As with all other special revenue funds, sales tax
districts revenues are designated for specific
purposes. State law regulates both the types of Southlake Sales Tax Districts
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
limits (the remainder goes to the State). Special Revenue Funds

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 2025, about 32% of the total debt service is adopted to be repaid using sales
tax collected for these districts.

Southlake’s strong shopping Sales Tax Revenue Since FY 2019
and dining economy has helped
maintain steady sales tax growth
since the economy began ' E Z > &hE KDDhE/dz E, E D Ed Θ s >KWD Ed KZWKZ d/KE
^Khd,> < W Z<^ s >KWD Ed KZWKZ d/KE Z/D KEdZK> Θ WZ s Ed/KE /^dZ/ d
recovering from the recession in ΨϱϬ͕ϬϬϬ͕ϬϬϬ
2011. For FY 2025, we anticipate
Ψϰϱ͕ϬϬϬ͕ϬϬϬ
total sales tax revenue to be
ΨϰϬ͕ϬϬϬ͕ϬϬϬ
$43,739,684. The chart to the right
shows the sales tax collection Ψϯϱ͕ϬϬϬ͕ϬϬϬ ΨϮϮ͕ϳϵϬ͕ϲϵϴ ΨϮϭ͕ϵϳϴ͕ϰϲϵ
since 2019. ΨϯϬ͕ϬϬϬ͕ϬϬϬ ΨϮϭ͕Ϭϰϳ͕ϯϲϵ ΨϮϭ͕ϱϰϲ͕Ϯϴϰ
Ψϭϴ͕ϱϵϴ͕ϲϯϴ
K>> Z^ ΨϮϱ͕ϬϬϬ͕ϬϬϬ
The remainder of this section will Ψϭϱ͕ϭϬϰ͕ϲϭϲ Ψϭϱ͕ϲϲϬ͕ϵϴϱ
ΨϮϬ͕ϬϬϬ͕ϬϬϬ
provide more detail about each of Ψϳ͕ϴϱϵ͕ϵϵϱ Ψϴ͕ϰϲϯ͕ϴϯϮ Ψϳ͕ϵϴϲ͕ϴϳϱ Ψϴ͕ϭϰϲ͕ϲϭϮ
the special sales tax districts and Ψϭϱ͕ϬϬϬ͕ϬϬϬ Ψϲ͕ϴϱϭ͕ϴϬϬ
Ψϱ͕ϳϯϰ͕Ϭϳϴ Ψϱ͕ϴϱϴ͕ϮϮϯ
their uses. ΨϭϬ͕ϬϬϬ͕ϬϬϬ
Ψϵ͕Ϯϰϵ͕ϵϯϭ ΨϭϬ͕ϲϭϬ͕ϵϵϯ Ψϭϭ͕ϰϮϲ͕ϭϳϯ ΨϭϬ͕ϳϰϳ͕ϲϱϬ ΨϭϬ͕ϵϲϮ͕ϲϬϯ
Ψϱ͕ϬϬϬ͕ϬϬϬ Ψϳ͕ϳϰϭ͕ϬϬϱ Ψϳ͕ϵϬϴ͕ϲϬϭ
ΨͲ Ψϭ͕ϴϵϴ͕ϯϴϵ Ψϭ͕ϵϮϭ͕ϰϴϬ ΨϮ͕ϴϭϰ͕Ϭϳϴ ΨϮ͕ϱϲϳ͕ϵϳϰ Ψϯ͕ϬϱϬ͕ϰϱϵ ΨϮ͕ϲϬϬ͕ϬϬϬ ΨϮ͕ϲϱϮ͕ϬϬϬ
ϮϬϭϵ ϮϬϮϬ ϮϬϮϭ ϮϬϮϮ ϮϬϮϯ ϮϬϮϰΎ ϮϬϮϱΎΎ
&/^ > z Z *Amended
**Adopted
Figure 3
FY 2025 City of Southlake | Budget Book 287