Page 311 - CityofSouthlakeFY26AdoptedBudget

DEBT

What you should know about the City’s Debt Management

AAA Debt Service

2.62% Some debt is necessary Our debt management Voter-approved special
and appropriate to
If all taxing entities hold ensure intergenerational strategies receive tax levies have been
pledged to pay for
a rigorous annual
their tax rates steady equity. In other words, review from bond bonds used to construct
for FY 2026, 2.62% 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 Comprehensive plans,
property will go to of 20-year assets on credit-worthy the as well as public safety
support the City’s annual today’s taxpayer. City is. Right now the facilities.
debt payments. This City has three AAA
is equivalent to $501 ratings — a strong
annually or about $41 external endorsement
per month. of the City’s financial
management.

Strategies

$94M

100% Initiative Fund to pay cash for capital projects.
Since 2006, the City has used the Strategic
The City uses aggressive amortization schedules. Approximately $94 million has been allocated
As such, initial debt payments may be higher, but for this purpose. This means less borrowing.
borrowing costs are lower and debt is paid off more Additionally, this use of cash funding when
quickly. All of the existing property tax supported combined with aggressive amortization
debt will be paid off in less than 10 years. schedules has allowed the City to reduce its total
outstanding property tax supported debt by 62%
since 2010.

Three highlights about FY 2025 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 the property tax supported debt per capita from $3,506 in 2010 to $1,058 in
2026.
2. Self-Supporting debt reduced: Through the City’s use of cash and aggressive amortization schedules when debt is
issued, the City has reduced the total self-supporting debt from $148,515,869 in 2010 to $78,477,648 in 2026.

3. Long-Term debt as a percentage of assessed valuation reduced: Through the City’s use of cash and aggressive
amortization schedules when debt is issued, the City has reduced the total long-term debt as a percentage of assessed
valuation from 2.79% in 2004 to 0.23% in 2026.

FY 2026 City of Southlake | Budget Book 311