Page 298 - Southlake FY20 Budget

Debt Service Funds Expenditures

City-Operations City-Debt Other Taxing Entities

$1,956

$474

$14,626

Figure 2: Total Tax Bill for Average Residential Property in Southlake

Going back to Figure 1, the remainder of the City’s debt service (55%) for FY 2020 will be funded by self-supporting
debt. These debt payments will be made from special revenue, such as voter-approved sales tax levies. FY 2020 debt
service to be paid as self-supporting debt is $9,547,848. Why is it important to make the distinction between tax-
supported and self-supporting debt? Because self-supporting debt has a specific revenue streams, many of which are
voter approved, for the repayment of the bonds. Also, sales tax-supported debt uses funds collected by shoppers in
the City, many of which reside elsewhere.

For example, the construction of The Marq Phase I was funded using General Fund and Southlake Parks Development
Corporation (SPDC) cash. Phase II, known as Champions Club was funded through the voter-approved three-eighths
cent tax collected by Community Enhancement and Development Corporation (CEDC). Thanks to these sales tax
dollars, the corporation funding will be used to pay the debt incurred from construction and to supplement the
operating expenses for The Marq Southlake not recovered with facility and program fees. Additionally, a portion of
the funds will also be used for economic development initiatives.

Voter-approved special levy sales tax districts also provide a source of funding for park development and crime control
initiatives. Projects built implement the Capital Improvements Program and funds are used almost exclusively for
capital, not operations. Town Square developers have estimated that 70-75% of sales in Town Square are to patrons
living outside the city. Imported taxpayers, if you will, helping to construct Southlake’s infrastructure development.

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