Page 309 - CityofSouthlakeFY26AdoptedBudget

Voter-approved special levy sales tax districts also provide a source of funding for park development
and crime control initiatives. Projects that are built implement the Capital Improvements Program.
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.

Debt Management Debt Service

The City takes it debt obligation very seriously. Several years ago, the City Council worked with City staff
to set goals to reduce the debt as percentage of assessed valuation over the total long term. As you can
see in Figure 3, we have reduced the percentage from 2.79% in 2004 to 0.23% in 2026, 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 2004.

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 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

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FY 2026 City of Southlake | Budget Book 309