Page 112 - Southlake FY24 Budget

Property Tax Supported Long-Term
Debt as a % of Assessed Valuation

Desired Range

LONG-TERM DEBT DEBT AS % OF ASSESSED VALUATION
3.50% $120,000,000

2.79% $100,000,000
3.00%
3.01%
2.50% 2.36%
2.07% 2.00% 1.71% $80,000,000
City Profile
PERCENTAGE OF VALUATION 1.50% 1.46% 1.49% 1.51% 1.49% 1.37% 1.19% 1.12% $60,000,000 DOLLARS
2.00%

0.72% 0.92% 0.58% $40,000,000
1.00%

0.50% 0.44% 0.34% 0.27% 0.22% 0.24% 0.28% $20,000,000

0.00% $-
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

FISCAL YEAR
Warning Trend: Increasing net long-term debt as a percentage of assessed valuation
Long-term debt Assessed valuation
This chart shows the debt issued by Southlake that is supported by property tax revenues relative to
the total assessed valuation. Credit industry benchmarks state debt exceeding ten percent of assessed
valuation as well as increasing long-term debt as a percentage of assessed valuation are warning signals.
Neither of these trends are reflected in this chart which shows that the property tax supported long-
term debt as a percentage of assessed valuation has been falling since 2003 and remains well below the
ten percent benchmark. The City has established its own target of two percent or below, as outlined in
the Financial Principles section of the Appendix, and since 2007, our debt as a percentage of assessed
valuation has been at or below two percent.

Debt as % Debt as %
Long-Term Assessed Long-Term Assessed
Fiscal Year of Assessed Fiscal Year of Assessed
Debt Valuation Debt Valuation
Valuation Valuation
2003 $108,251,208 $3,590,810,881 3.01% 2014 $79,129,909 $6,653,765,251 1.19%
2004 $104,384,962 $3,737,260,696 2.79% 2015 $75,779,902 $6,760,119,917 1.12%
2005 $92,345,898 $3,913,240,543 2.36% 2016 $67,555,109 $7,322,599,520 0.92%
2006 $86,977,885 $4,207,074,169 2.07% 2017 $59,439,993 $8,269,475,160 0.72%
2007 $91,759,026 $4,593,954,505 2.00% 2018 $50,477,189 $8,743,046,226 0.58%
2008 $87,122,650 $5,088,802,161 1.71% 2019 $43,475,681 $9,810,068,614 0.44%
2009 $88,846,144 $5,582,058,197 1.46% 2020 $36,272,575 $10,526,366,088 0.34%
2010 $93,169,077 $6,252,920,129 1.49% 2021 $28,784,272 $10,714,248,031 0.27%
2011 $93,402,615 $6,178,132,589 1.51% 2022 $24,528,447 $11,138,315,427 0.22%
2012 $95,940,907 $6,226,088,861 1.49% 2023 $29,497,940 $12,177,275,938 0.24%
2013 $87,681,533 $6,442,291,913 1.37% 2024 $38,547,405 $13,974,849,859 0.28%

112 FY 2024 City of Southlake | Budget Book