Page 421 - CityofSouthlakeFY27Budget

TABLE OF CONTENTS
City of Southlake
Economic Development Investment Fund Expenditure Guidelines
Community Enhancement and Development Corporation

GUIDING PRINCIPLE:

Appendix
CEDC expenditures will:

- Stimulate the local economy and enhance the community within the voter-authorized purpose

- Comply with statutory provisions and voter authorization (Chapter 504, Texas Local Government Code
— Type A corporation).

- Support the operation, maintenance, and capital replacement of The Marq Southlake, including:

- operations managed toward the Council-approved cost-recovery target (currently 61%); and

- contributions to the facility and equipment replacement fund.

- Support debt service for voter-authorized CEDC projects, including Champions Club.

- Support public infrastructure that promotes economic development within the City, including roadway
and corridor improvements that support commercial activity and grow the City’s tax base.

- Support economic development programs that advance target-industry growth, including incentives,
studies, and recruitment or marketing efforts consistent with the Economic
Development Master Plan.

- Support the City’s economic development administrative and operational costs that have a clear nexus
to CEDC-authorized activities:

- The CEDC will fund a target share of eligible economic development administrative and operational
costs, as established by City Council and incorporated into these financial policies, with the
remaining share funded by the General Fund.

- The cost-sharing target range is established at 25% - 50% of eligible economic development
administrative and operational costs, recognizing the need for flexibility to phase the transition
methodically across budget years and to respond to changes in program scope and available
revenue, while maintaining a clear nexus to the voter-authorized purpose.

- The cost-sharing target will be reviewed annually as part of the budget process.

- Implementation of these guidelines will be phased:

- Additional eligible expenditure categories will be incorporated incrementally, beginning with the
FY 2027 budget.

- R eallocations will be consistent with the original ballot authorization and reviewed annually.

FY 2027 City of Southlake | Budget Book 421