Page 39 - CityofSouthlakeFY26AdoptedBudget

For example, the construction of The Marq Phase I was funded using cash from the General Fund and
Southlake Parks Development Corporation (SPDC). Phase II, known as Champions Club was funded
through the voter-approved three-eighths cent sales tax collected by Community Enhancement and
Development Corporation (CEDC). Thanks to these sales tax dollars, the corporation funding is used
to pay the debt incurred from construction and to supplement the operating expenses for The Marq
Southlake not recovered with facility and program fees. Additionally, a portion of the funds are used for Budget Overview
economic development initiatives.

Voter-approved special levy sales tax districts also provide a source of funding for park development
and crime control initiatives. Self-supporting debt is another resource used to implement the Capital
Improvements Program. Estimates show that as much as 70% of sales in Southlake are from patrons
living outside the city, and these imported taxpayers, if you will, are helping to construct Southlake’s
infrastructure development.

To learn more about the City’s strategic use of debt, see the Debt Service Fund section of this document.

Capital Improvements Program

Each year, the City of Southlake identifies funding for a multi-year Capital Improvements Program (CIP).
The CIP is a tool used for planning and financial management, designed to coordinate the location,
timing and financing of capital improvements over a five-year period.

Capital improvements refer to major expenditures for things like land, buildings, and public infrastructure,
identified for the purpose of advancing the City’s strategic and comprehensive plans.

The goals of Southlake’s capital project planning efforts include:

• Ensure timely construction of and/or repair of infrastructure to effectively meet ongoing community
needs, as defined by the City’s strategic and comprehensive plans;
• Establish a methodical approach to public infrastructure funding and construction to eliminate
unanticipated, poorly planned, or unnecessary capital expenditures and to avoid sharp increases in
tax rates, user fees, or debt; and,
• Align public projects with community growth patterns and development, as defined by the City’s
comprehensive plans.

Preparation of the City’s annual budget and the CIP are closely linked. As part of the operating budget,
financial resources are identified and allocated in accordance with established guiding principles shown
in Figure 16. The current five-year implementation plan, identifying specific projects, funding sources,
and priorities, was adopted by City Council in February 2025 in accordance with the schedule shown in
Figure 17. The plan is scheduled for annual review and adoption in February 2026. Projects included in
the implementation plan will address needs identified in the Southlake Comprehensive Plan.

General Fund. The General Fund is used to address capital projects such as streets and road construction
and/or rehabilitation, pathway improvements, improvements to support access as required by the
Americans with Disabilities Act (ADA), and municipal facilities. For FY 2026, a total of $1,500,000 million

FY 2026 City of Southlake | Budget Book 39