Did You Know? TIF Funds Drive Capital Improvements in CISD!

Did you know that Carroll ISD is able to fund critical facility improvements through a tool called Tax Increment Financing (TIF), in partnership with the City of Southlake?

In Texas, cities may establish a Tax Increment Reinvestment Zone (TIRZ) to encourage redevelopment and economic growth in a specific area. When a TIRZ is created, the taxable value of property within the zone is set at a baseline. As development occurs and property values increase, the growth above that baseline, called the tax increment, is captured and deposited into a Tax Increment Fund (TIF). These dollars are restricted by law and may only be used for public improvements, including public school infrastructure, that support long-term growth. Importantly, TIFs leverage future growth without raising tax rates.

The City of Southlake established its TIRZ in the late 1990s to support redevelopment in a defined area of the city. Participating taxing entities, including the Carroll Independent School District, voluntarily contribute a portion of their incremental property tax revenue from the zone to the TIF. Carroll ISD has representation on the TIRZ Board, which oversees the financing plan and use of funds, providing the District with a voice in how projects are prioritized.

Four Carroll ISD facilities are located within the TIRZ boundaries: Dawson Middle School, Eubanks Intermediate School, Old Union Elementary School, and Dragon Stadium. Over time, TIF dollars have been used not only for public infrastructure in the zone but also for projects that directly benefit District facilities.

In 2025, the City of Southlake allocated $1.5 million per year for 2025, 2026, and 2027 to support projects within the TIRZ. Carroll ISD used its 2025 allocation and drew down a portion of 2026 funds to complete major roof replacements at three campuses, totaling $2.241 million in 2025 expenditures. This investment addressed critical facility needs while leveraging resources intended for economic development and community support.

Completed TIF-supported projects include:

• Dawson Middle School roof replacement: $910,000, completed August 2025
• Old Union Elementary School roof replacement: $693,426.23, completed December 2025
• Eubanks Intermediate School roof replacement: $585,900, completed August 2025

Participating in the TIRZ means Carroll ISD temporarily forgoes a portion of local property tax revenue that would otherwise flow through the state’s recapture system. Texas law provides state aid to offset this contribution, so the District is not permanently impacted. When the TIRZ expires and development fully matures, all taxing entities, including Carroll ISD, receive the full tax revenue generated in the area.

The TIRZ represents a shared, strategic investment between the City of Southlake and Carroll ISD: the city invests in infrastructure to promote growth, and the school district benefits from improved facilities today and a stronger tax base in the future.

This is just one way the Carroll ISD Board continues to address funding challenges creatively, with long-term solutions in mind.

Read more about TIF Funds here.