Page 243 - Southlake FY24 Budget

Figure 2
Total Tax Bill for Average Residential Property in Southlake

CITY-OPERATIONS CITY-DEBT OTHER TAXING ENTITIES
$2,128

$443 Debt Service

$18,107

Going back to Figure 1, the remainder of the City’s debt service (56%) for FY 2024 will be funded by self-
supporting debt. These debt payments will be made from special revenue, such as voter-approved sales
tax levies. FY 2024 debt service to be paid as self-supporting debt is $8,502,446. 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 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.

FY 2024 City of Southlake | Budget Book 243