Page 38 - CityofSouthlakeFY26AdoptedBudget

Figure 14 Tax Supported vs. Self-Supporting Debt
As you can see in Figure 14, less than half (45%)
FY 2026 Total Debt Service
of the City’s debt service will be funded through
bonds tied to the City’s property taxes. For FY
2026, property tax supported debt service is
about $7.6 million. Property tax supported debt
is primarily used for the construction of local
roads, sidewalks and storm water infrastructure.
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The City estimates that it will be necessary to
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issue property tax supported debt to fund capital
infrastructure needs for roadways and other
Budget Overview
^ >&Ͳ^hWWKZd/E' d critical infrastructure planned for FY 2026 in the
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current Capital Improvements Program.

So, what does this mean for Southlake property
owners? Figure 15 shows the total tax bill for
an average residential property in Southlake,
SELF-SUPPORTING DEBT 55%
reflecting an annual cost of $501 for property
PROPERTY TAX SUPPORTED DEBT 45%
tax supported debt. For this, the City is able to
ensure the necessary infrastructure is updated
and maintained proactively and in alignment with
community sustainability standards.

Going back to Figure 14, the remainder of the City’s debt service (55%) in this fiscal year will be funded by
self-supporting debt. These debt payments will be made from special revenue, such as voter-approved
sales tax levies. Why is it important to make the distinction between tax-supported and self-supporting
debt? Because self-supporting debt has specific revenue streams, many of which are voter approved,
for the repayment of the bonds. Also, sales tax-supported debt uses funds collected by shoppers in the
City, many of which reside elsewhere.

Figure 15
Total Tax Bill for Average Residential Property in Southlake
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38 FY 2026 City of Southlake | Budget Book FY 2026 City of Southlake | Budget Book 39