Page 71 - CityofSouthlakeFY25AdoptedBudget

proportion to each property’s storm water runoff potential.

Tax Increment Finance District.
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 Budget Basics
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 balance.” Fund balance is August 20
defined as, “The excess of an entity’s assets over its liabilities
in a particular fund.” In other words, it is the balance that City Council Budget Work Session
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 September 3
other parameters such as bond covenants. Fund balance is a Proposed Budget First Reading and
fundamental barometer of fiscal wellness and it is important to Public Hearing
note that the fund balance for all funds meets every established
requirement.

Changes From FY 2025
Proposed to Adopted

Before adopting the budget, City Council may choose to September 17
change any aspect of the proposed budget, as long as the Proposed Budget Second Reading and
changes result in a balanced budget. A copy of the budget, Public Hearing
as finally adopted, is filed with the City Secretary’s Office and
the County Clerk of Tarrant County. The final budget is made
available for the use of all departments, offices and agencies
of the City, and for the use of interested persons, agencies, and
civic organizations.
October 1

Beginning of FY 2025

FY 2025 City of Southlake | Budget Book 71