TIF Fund FAQs

Just The Facts:

Understanding the Southlake Tax Increment Reinvestment Zone (TIRZ) and Carroll ISD

What is a TIRZ?

A Tax Increment Reinvestment Zone (TIRZ) is a financing tool authorized by the State of Texas to encourage economic development and public infrastructure improvements within a designated area.

When a TIRZ is created, the property values inside the zone are "frozen" at their current level (the base value). As new development occurs and property values increase, the additional property tax revenue generated by that growth (called the tax increment) is dedicated to projects within the zone rather than immediately flowing into each participating entity's general budget.

Importantly, a TIRZ does not create a new tax or increase anyone's tax rate.

Keep reading for more FAQs.

TIRZ FAQs

Where do Carroll ISD's TIRZ dollars come from?

The dollars contributed by Carroll ISD originate as school property taxes paid by property owners within the TIRZ.

Those taxes are first assessed as Carroll ISD property taxes. The portion representing the increase in taxable value inside the TIRZ is then contributed to the Tax Increment Fund under the participation agreement.

In other words:

Property owners continue paying Carroll ISD school taxes.
No additional tax is charged because of the TIRZ.

The incremental growth in school tax revenue from properties inside the zone is invested back into eligible projects within the TIRZ.

How does Carroll ISD benefit?

Carroll ISD has four district facilities located within the TIRZ boundaries:

Dragon Stadium
Dawson Middle School
Eubanks Intermediate School
Old Union Elementary School

Because these campuses are located inside the TIRZ, they are eligible to receive funding for qualified capital improvement projects.

Recent projects funded through the TIRZ include:

Roof replacement at Dawson Middle School
Roof replacement at Eubanks Intermediate School
Roof replacement at Old Union Elementary School

These improvements totaled approximately $2.24 million in 2025 and were funded through TIRZ allocations for Carroll ISD.

What types of school projects can be funded?

Subject to the TIRZ Project and Financing Plan and applicable law, TIRZ funds may be used for eligible capital improvements at Carroll ISD facilities located within the zone, including projects such as:

Building renovations
Roof replacements
Site improvements
Utility infrastructure
Public access improvements
Other qualifying capital projects

TIRZ funds cannot be used for everyday operating expenses such as teacher salaries, classroom supplies, or routine instructional costs.

Who decides how the money is used?

How would Carroll ISD spend TIRZ funds if allocated an additional $500,000 for the 2026-27 fiscal year?

If Carroll ISD received an additional $500,000 in TIRZ funding, the district would prioritize high-impact capital improvement projects that address facility maintenance, safety, and student learning environments. Carroll ISD has previously provided City administration with a prioritized list of potential projects that could be funded through additional TIRZ revenues. These identified needs include replacing aging exterior lighting, resurfacing the Dawson Middle School track, updating classroom and cafeteria furnishings, improving campus safety and security, repairing HVAC and mechanical systems, and completing deferred maintenance such as painting, flooring, parking lot repairs, playground improvements, and restroom renovations. These investments would help preserve district facilities, improve operational efficiency, enhance student and staff safety, and provide better learning and extracurricular environments across Carroll ISD campuses.

How much money is in the TIRZ this year?

According to the City's current budget estimates, the TIRZ is projected to receive $10.98 million in revenue this year. The City estimates $9.01 million in expenditures, including $1 million for Carroll ISD projects and the remaining funds for City projects. The TIRZ is also projected to end the year with a fund balance of approximately $16.68 million. Based on these estimates, nearly 17% of this year's revenue is expected to be added to the fund balance, despite Carroll ISD's request for additional TIRZ funding to address previously identified capital improvement needs.

TIRZ Quick Facts:

✓ No new taxes are created.

✓ Property owners continue paying Carroll ISD school taxes.

✓ The dollars contributed by Carroll ISD originate as school property taxes generated inside the TIRZ.

✓ Those funds are reinvested in eligible public improvements within the TIRZ, including improvements at Carroll ISD campuses located in the zone.

✓ Carroll ISD currently has four facilities within the TIRZ that are eligible for qualifying capital improvements.

District

In This Section