Page 348 - CityofSouthlakeFY26AdoptedBudget

Hotel Occupancy Tax Fund

The Hotel Occupancy Tax is authorized under the Texas Tax Code, Chapter
351. The City of Southlake adopted Ordinance No. 769 in February 2000,
levying a 7% tax on room receipts. The tax on rooms is providing the
DID YOU revenues to the City in this category. The first expenditures from this fund
KNOW? were made in FY 2008. Use of these funds is restricted. Expenses must be
SPECIAL REVENUE FUND
authorized uses under the Texas Tax Code, Chapter 351.
Hotel Occupancy
2026 Proposed and 2025 Revised Budget

$ Increase/ $ Increase/
Special Revenue Funds
2024 2025 2025 (Decrease) % Increase/ 2026 (Decrease) % Increase/
Actual Adopted Amended Adopted -Decrease Proposed Adopted -Decrease
REVENUES
Taxes $2,403,888 $2,347,250 $2,500,000 $152,750 6.5% $2,600,000 $252,750 10.8%
Interest 185,121 125,000 125,000 0 0.0% 125,000 0 0.0%
Total Revenues $2,589,009 $2,472,250 $2,625,000 $152,750 6.2% $2,725,000 $252,750 10.2%
EXPENDITURES
Personnel $249,665 $290,823 $290,823 $0 0.0% $325,621 34,798 12.0%
Operations 642,540 1,257,295 1,257,295 0 0.0% 1,126,275 (131,020) -10.4%
Capital 0 0 0 0 0.0% 0 0 0.0%
Total Expenditures $892,205 $1,548,118 $1,548,118 $0 0.0% $1,451,896 ($96,222) -6.2%

Net Revenues $1,696,804 $924,132 $1,076,882 $152,750 $1,273,104 $348,972

Transfer to other funds ($658,850) (669,728) (698,751) (717,750)
Total Other Sources/(Uses) ($658,850) ($669,728) ($698,751) ($717,750)
Beginning Fund Balance $3,185,162 $4,223,116 $4,223,116 $4,601,247
Ending Fund Balance $4,223,116 $4,477,520 $4,601,247 $5,156,601

FY 2026 Highlights

- For FY 2026, total revenues are estimated at $2,725,000.

- Total planned expenditures for this fund are $1,451,896 and includes funding for marketing, advertising,
and Tourism Comprehensive Plan implementation. The operating budget also includes funding for the
personnel costs directly attributable to tourism.
- The budget includes an indirect transfer to the General Fund of $109,000 and a transfer of $408,750
to the Public Art Fund for implementation of the Public Art Comprehensive Plan, and a transfer of
$200,000 to the Capital Improvements Program (CIP) for the Visitor Amenities Facility planned for
Town Square.

- The ending fund balance is projected at $5,156,601.

348 FY 2026 City of Southlake | Budget Book