Page 37 - CityofSouthlakeFY26AdoptedBudget

All Funds - FY 2026 Adopted Debt Profile
Total Expenditures by The City takes its debt obligation very seriously.
Category Several years ago, the City Council working with
Figure 12 City staff set goals to reduce the debt as percentage
of assessed valuation over the total long term
debt. As you can see in Figure 13, we have reduced Budget Overview
the percentage from 2.79% in 2004 to 0.23% in
2026, during a time of growth for the city. The line
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that you see on this chart is a graphic illustration
of one of the reasons why three bond agencies
W/d > Khd> z have rated Southlake AAA. It should be noted
ϵй
W Z^KEE >
ϯϴй 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 have a AAA credit rating from Fitch
Ratings, Moody’s, and Standard & Poor’s. This is
the highest possible credit rating the City can
KW Z d/KE^
ϰϭй receive. 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 13

Long-term Debt as a Percentage of Assessed Valuation

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FY 2026 City of Southlake | Budget Book 37