Page 260 - CityofSouthlakeFY25AdoptedBudget

Debt Management
The City takes it debt obligation very seriously. Several years ago, the City Council working with City staff
set goals to reduce the debt as percentage of assessed valuation over the total long term. As you can see
in Figure 3 (below), we have reduced the percentage from 3.01% in 2003 to 0.21% in 2025, during a time
of growth for the city. The line that you see on this chart is a graphic illustration of one of the reasons why
three bond agencies have rated Southlake AAA. It should be noted that although the total debt issued
has fluctuated based on the timing of important projects, the City has generally reduced its property tax
supported obligations since 2003.

The City of Southlake is fortunate to hold AAA credit ratings from Fitch Ratings, Moody’s, and Standard &
Poor’s. This is the highest possible rating given to a credit. Not only does it reinforce that the City has strong
Debt Service
financial management tools, it also allows for favorable borrowing conditions when the time is right.

The City has been able to effectively manage its debt during a period of growth using cash to partially offset
borrowing needs. Additionally, managing debt amortization has been a tool used to reduce borrowing
costs.

Figure 3

Long-term Debt as a Percentage of Assessed Valuation

>KE'Ͳd ZD d d ^ й K& ^^ ^^ s >h d/KE
ϯ͘ϱϬй ΨϭϮϬ͕ϬϬϬ͕ϬϬϬ
Southlake Desired
Range per Policy
ϯ͘ϬϬй Ϯ͘ϳϵй ΨϭϬϬ͕ϬϬϬ͕ϬϬϬ

ϯ͘Ϭϭй

Ϯ͘ϱϬй Ϯ͘ϯϲй
Ϯ͘Ϭϳй Ϯ͘ϬϬй ΨϴϬ͕ϬϬϬ͕ϬϬϬ

s >h d/KE Ϯ͘ϬϬй ϭ͘ϳϭй ϭ͘ϰϵй ϭ͘ϱϭй ϭ͘ϰϵй ΨϲϬ͕ϬϬϬ͕ϬϬϬ K>> Z^

K& ϭ͘ϱϬй ϭ͘ϰϲй ϭ͘ϯϳй ϭ͘ϭϵй
W Z Ed ' ϭ͘ϭϮй Ϭ͘ϵϮй ΨϰϬ͕ϬϬϬ͕ϬϬϬ

ϭ͘ϬϬй
Ϭ͘ϳϮй Ϭ͘ϱϴй

Ϭ͘ϱϬй Ϭ͘ϰϰй Ϭ͘ϯϰй Ϭ͘Ϯϳй Ϭ͘ϮϮй Ϭ͘Ϯϰй Ϭ͘Ϯϴй Ϭ͘Ϯϭй ΨϮϬ͕ϬϬϬ͕ϬϬϬ

Ϭ͘ϬϬй ΨͲ
ϮϬϬϯ ϮϬϬϰ ϮϬϬϱ ϮϬϬϲ ϮϬϬϳ ϮϬϬϴ ϮϬϬϵ ϮϬϭϬ ϮϬϭϭ ϮϬϭϮ ϮϬϭϯ ϮϬϭϰ ϮϬϭϱ ϮϬϭϲ ϮϬϭϳ ϮϬϭϴ ϮϬϭϵ ϮϬϮϬ ϮϬϮϭ ϮϬϮϮ ϮϬϮϯ ϮϬϮϰ ϮϬϮϱ

&/^ > z Z
260 FY 2025 City of Southlake | Budget Book