Page 314 - CityofSouthlakeFY26AdoptedBudget

Debt Service Fund

This fund accumulates ad valorem tax dollars to pay for the annual portion of
DID YOU outstanding tax supported debt.
KNOW?
DEBT SERVICE FUND
2026 Proposed and 2025 Revised Budget

Debt Service
$ Increase/ $ Increase/
2024 2025 2025 (Decrease) % Increase/ 2026 (Decrease) % Increase/
Actual Adopted Amended Adopted -Decrease Proposed Adopted -Decrease
REVENUES
Ad Valorem Taxes $5,690,222 $6,253,136 $6,069,800 ($183,336) -2.9% $6,496,725 $243,589 3.9%
Miscellaneous Income $0 $0 $0 $0 0.0% $0 $0 0.0%
Interest Income 168,430 130,000 130,000 0 0.0% 85,000 (45,000) -34.6%
Total Revenues $5,858,652 $6,383,136 $6,199,800 ($183,336) -2.9% $6,581,725 $198,589 3.1%

EXPENDITURES
Principal $5,771,358 $6,123,304 $6,123,304 $0 0.0% $6,346,251 $222,947 3.6%
Interest $1,202,050 $925,966 $925,966 0 0.0% $1,250,546 324,580 35.1%
Admin. Expenses $7,630 $19,500 $19,500 0 0.0% $19,500 0 0.0%
Total Expenditures $6,981,038 $7,068,770 $7,068,770 $0 0.0% $7,616,297 $547,527 7.7%
Net Revenues ($1,122,386) ($685,634) ($868,970) ($183,336) ($1,034,572) ($348,938)

Transfers In 397,341 401,762 401,762 0 400,552
Transfer Out 0 0 0 0
Total other Sources/(Uses) $397,341 $401,762 $401,762 $400,552

Beginning Fund Balance $2,993,263 $2,268,218 $2,268,218 $1,801,010
Ending Fund Balance $2,268,218 $1,984,346 $1,801,010 $1,166,990

FY 2026 Highlights

For FY 2026, revenues are estimated at $6,581,725 with $6,496,725 coming from ad valorem taxes and
$85,000 from interest income. Transfers into the fund are budgeted at $400,552 from the Storm Water
Utility District to pay the debt service for the bonds issued on the District’s behalf. Total expenditures
are $7,616,297 for annual principal and interest payments, as well as related administrative costs.

The Debt Service Fund will end the current fiscal year with undesignated reserves of $1,166,990. The
fund balance allows us to meet our fund balance policy which states that the City of Southlake “…shall
also maintain Reserve Funds for all statutorily required reserve funds to guarantee debt service.”

314 FY 2026 City of Southlake | Budget Book FY 2026 City of Southlake | Budget Book 315