Page 358 - CityofSouthlakeFY26AdoptedBudget

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 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
DID YOU District, and the Carroll Independent School District have participated at varying
KNOW? 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
TIF OPERATING FUND
in the zone for an additional twenty years. The City of Southlake and Carroll ISD are
Special Revenue Funds
the only participating entities with the 20 year extension.
2026 Proposed and 2025 Revised Budget

$ Increase/ $ Increase/
2024 2025 2025 (Decrease) % Increase/ 2026 (Decrease) % Increase/
Actual Adopted Amended Adopted -Decrease Proposed Adopted -Decrease
REVENUES
Ad Valorem $10,470,200 $9,605,358 $10,685,868 $1,080,510 11.2% $10,376,956 $771,598 8.0%
Interest Income $474,432 $300,000 $375,000 $75,000 25.0% $300,000 $0 0.0%
Total Revenues $10,944,632 $9,905,358 $11,060,868 $1,155,510 11.7% $10,676,956 $771,598 7.8%

EXPENDITURES
Personnel $340,660 $344,695 $344,695 $0 0.0% $364,375 $19,680 5.7%
Operations $7,386,161 $7,803,696 $8,301,135 497,439 6.4% $10,036,684 2,232,988 28.6%
Capital $0 $0 $700,000 700,000 0.0% $0 (0) 0.0%
Total Expenditures $7,726,821 $8,148,391 $9,345,830 $1,197,439 14.7% $10,401,059 $2,252,668 27.6%
Net Revenues $3,217,811 $1,756,967 $1,715,038 ($41,929) $275,897 ($1,481,070)

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 $8,347,195 $11,565,006 $11,565,006 $13,280,044
Prior period adjustment
Ending Fund Balance $11,565,006 $13,321,973 $13,280,044 $13,555,941

FY 2026 Highlights

- The incremental taxable value assigned to TIRZ #1 for the 2025 tax year is $632,165,088 which is a 5.3%
increase from the valuation for the 2024 tax year. This translates into anticipated revenues for the TIF
District Fund of $10,676,956, including interest income. Revenue projections include estimated CISD
payments based on a three year average.

- Total planned expenditures for FY 2026 are $10,401,059. These expenditures are attributable to
projects identified in the project and financing plan.

- The ending balance for this fund is projected at $13,555,941.

358 FY 2026 City of Southlake | Budget Book