Page 320 - Southlake FY22 Budget

DEBT SErVICE FUnDS EXPEnDITUrES

CITY-OPERATIONS CITY-DEBT OTHER TAXING ENTITIES

$2,064

$413

$14,887

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

Going back to Figure 1, the remainder of the City’s debt service (62%) for FY 2022 will be funded by self-supporting
debt. These debt payments will be made from special revenue, such as voter-approved sales tax levies. FY 2022 debt
service to be paid as self-supporting debt is $8,568,999. 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 cash from the General Fund and Southlake Parks
Development Corporation (SPDC). Phase II, known as Champions Club was funded through the voter-approved three-
eighths cent sales tax collected by Community Enhancement and Development Corporation (CEDC). Thanks to these
sales tax dollars, the corporation funding is 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 are 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 SPDC and CEDC funds are used almost
exclusively for capital, not operations. Town Square developers have estimated that 70% of sales in Town Square
are to patrons living outside the city, and these imported taxpayers, if you will, are helping to construct Southlake’s
infrastructure development.
BUDGET BOOK | FY 2022 City of Southlake 319
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