Page 309 - CityofSouthlakeFY25AdoptedBudget

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
2025 Proposed and 2024 Revised Budget
Carroll ISD are the only participating entities with the 20 year extension.

$ Increase/ $ Increase/
2023 2024 2024 (Decrease) % Increase/ 2025 (Decrease) % Increase/
Actual Adopted Amended Adopted -Decrease Proposed Adopted -Decrease
REVENUES
Ad Valorem $9,834,043 $9,562,848 $10,470,200 $907,352 9.5% $9,605,358 $42,510 0.4%
Interest Income $279,968 $160,000 $300,000 $140,000 87.5% $300,000 $140,000 87.5%
Total Revenues $10,114,011 $9,722,848 $10,770,200 $1,047,352 10.8% $9,905,358 $182,510 1.9%
EXPENDITURES
Personnel $389,746 $378,694 $378,694 $0 0.0% $344,695 ($33,999) -9.0%
Operations $7,097,435 $6,840,935 $7,434,156 593,221 8.7% $7,803,696 962,761 14.1%
Capital $943,606 $0 $0 (0) 0.0% $0 (0) 0.0%
Total Expenditures $8,430,787 $7,219,629 $7,812,850 $593,221 8.2% $8,148,391 $928,762 12.9%

Net Revenues $1,683,224 $2,503,219 $2,957,350 $454,131 $1,756,968 ($746,251)

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 $6,663,971 $8,347,195 $8,347,195 $11,304,545
Prior period adjustment
Ending Fund Balance $8,347,195 $10,850,414 $11,304,545 $13,061,513

FY 2025 Highlights

- The incremental taxable value assigned to TIRZ #1 for the 2024 tax year is $600,347,161 which is a
1.0% increase from the valuation for the 2023 tax year. This translates into anticipated revenues for the
TIF District Fund of $9,605,358, including interest income. Revenue projections include estimated CISD
payments based on a three year average.

- Total planned expenditures for FY 2025 are $8,148,391. These expenditures are attributable to projects
identified in the project and financing plan.

- The ending balance for this fund is projected at $13,061,513.
FY 2025 City of Southlake | Budget Book 309