Page 14 - Southlake FY24 Budget

Thoroughly understanding economic conditions is critical for proper budgeting. Figure 2 shows the
approach used to gather and analyze local economic information for projecting revenues and evaluating
multi-year budget sustainability.

It has been possible to implement thirteen tax relief measures since 2009. The City is continuing to
provide for the maximum allowable 20% exemption in the adopted FY 2024 budget. In addition, an over
four-cent reduction of the tax rate has also been adopted as another method of providing tax relief.

Debt management has been a key financial principle that has guided the development of the City’s
budget. The City of Southlake has been able to manage debt so that 100% of the City’s current tax-
Transmittal Letter
supported debt will be retired in less than ten years.

Debt reducing techniques and strong bond ratings have allowed for a reduction in the City’s property
tax-supported debt by 59% since 2010, despite ongoing infrastructure development. Debt as a percent of
assessed value has decreased from over 3% in 2003 to a projected 0.28% in 2024. The FY 2024 budget

continues the use of cash to fund a portion of the General Fund capital improvement projects, continuing
to reduce reliance on debt. Figure 3 shows trend information for Southlake’s debt as a percent of assessed
valuation, as well as total property tax-supported debt.

Figure 2

Economic Information Used for City Financial Projections

Economic Labor & Housing and Consumer
Commercial
Indicators Employment Growth Spending

Interest rates Wages Building Permits Retail sales
GDB Growth Unemployment Home values Projections
Fuel Costs Healthcare Costs Top Taxpayer
Meetings

14 FY 2024 City of Southlake | Budget Book