Page 247 - Southlake FY24 Budget

DEBT

Debt Service

What you should know about the City’s Debt Management

AAA

2.14% Some debt is necessary Our debt management Voter-approved special
strategies receive
and appropriate to
tax levies have been
If all taxing entities hold ensure intergenerational a rigorous annual pledged to pay for
their tax rates steady equity. In other words, review from bond bonds used to construct
for FY 2024, 2.14% of paying cash for 100% of rating agencies tasked facilities identified in the
the total tax bill for capital projects would with letting potential City’s parks and trails
an average residential front-load the cost borrowers know how master plans, as well as
property will go to of 20-year assets on credit-worthy the public safety facilities.
support the City’s annual today’s taxpayer. city is. Right now the
debt payments. This City has three AAA
ratings — a strong
is equivalent to $443 external endorsement
annually or about $37 of the City’s financial
per month. management.

Strategies Three highlights
about FY 2024 Debt

1. Property tax supported debt per capita
reduced: Through the City’s use of cash
and aggressive amortization schedules
when debt is issued, the City has reduced
$89M 100% the property tax supported debt per capita
from $3,506 in 2010 to $1,179 in 2024.

2. Self-Supporting debt reduced: Through
Since 2006, the City The City uses aggressive the City’s use of cash and aggressive
has used the Strategic amortization schedules. As amortization schedules when debt is issued,
the City has reduced the total
Initiative Fund to pay cash such, initial debt payments self-supporting debt from $148,515,869 in
for capital projects. Over may be higher, but 2010 to $74,285,069 in 2024.
$89.4 million has been borrowing costs are lower
allocated for this purpose. and debt is paid off more 2. Long-Term debt as a percentage of
This means less borrowing. quickly. All of the existing assessed valuation reduced: Through
the City’s use of cash and aggressive
Additionally, this use property tax supported amortization schedules when debt is issued,
of cash funding when debt will be paid off in less the City has reduced the total long-term
combined with aggressive than 10 years. debt as a percentage of assessed valuation
amortization schedules from 3.01% in 2003 to 0.28% in 2024.
has allowed the City to
reduce its total outstanding
property tax supported
debt by 59% since 2010.
FY 2024 City of Southlake | Budget Book 247