Page 85 - CityofSouthlakeFY27Budget

TABLE OF CONTENTS

properties are calculated individually in proportion such as bond covenants. Fund balance is a
to each property’s storm water runoff potential. fundamental barometer of fiscal wellness and it
is important to note that the fund balance for all
Tax Increment Finance District. funds meets every established requirement.
Tax Increment Reinvestment Zone (TIRZ) Number
One or the Tax Increment Finance (TIF) District was
created in 1997, with an effective beginning date Budget Basics
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
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 the zone,
such as water, sewer and roads within the District.
CISD projects are also funded in accordance with
the approved project and financing plan. 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 defined as, “The
excess of an entity’s assets over its liabilities in a
particular fund.” In other words, it is the balance
that 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 other parameters

FY 2027 City of Southlake | Budget Book 85