Page 31 - CityofSouthlakeFY26AdoptedBudget

Figure 7

Comparison of property values since FY 2016
(assessed and taxable)

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Ψϭϱ͕ϰϳϴ Budget Overview
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Ψϲ͕ϯϲϵ Ψϲ͕ϲϲϮ
Ψϱ͕ϬϬϬ Ψϱ͕ϳϴϱ

Ψϯ͕ϬϬϬ
ϮϬϭϲ ϮϬϭϳ ϮϬϭϴ ϮϬϭϵ ϮϬϮϬ ϮϬϮϭ ϮϬϮϮ ϮϬϮϯ ϮϬϮϰ ϮϬϮϱ ϮϬϮϲ

*Net TIRZ value

Ad Valorem (Property Tax) Revenues

The FY 2026 budget includes a moderate increase in total ad valorem revenues ($179,008 or 0.5%). This
increase in revenue is based on a taxable property value base of $12,350,210,300, a 4% increase from FY 2025
taxable property value. A portion of the City’s taxable value is located within Tax Increment Reinvestment
Zone #1 and any revenues generated from growth within this zone are restricted for use in accordance with
the approved project and financing plan. For FY 2026, TIRZ taxable value is $632,165,088. Figure 6 shows
the change in taxable value (net TIRZ) since 2018 and documents the impact of new construction on the
values during the same time period. The total taxable value shown reflects the tax rate decreases from year
to year and excludes the value related to the City’s homestead and other exemptions. Southlake’s property
values have increased appreciably over time, as shown in Figure 7. The difference between assessed value
and taxable value is primarily due to tax rate reductions and exemptions.

State law requires a taxing unit to calculate two rates after receiving its certified appraisal roll: the no-new-
revenue tax rate and the voter-approval tax rate. The no-new-revenue rate is the rate that will generate the
same amount of property tax dollars as the previous year when the two years are compared, excluding new
construction and annexations.
If a city adopts a tax rate exceeding the voter-approval rate, then the city must hold an automatic election.
Depending on the ultimate rate that is chosen by the city and its relationship to these legally defined rates,
there are requirements that must be followed to comply with truth-in-taxation laws. These requirements
protect the public’s right-to-know concerning tax rate decisions.

FY 2026 City of Southlake | Budget Book 31