Page 332 - CityofSouthlakeFY27Budget

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Figure 2

Total Tax Bill for Average Residential Property in Southlake*

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Debt Service

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*For illustration purposes. Includes
only Southlake homestead exemption.

So, what does this mean for Southlake property owners? Figure 2 shows the total tax bill for an average
residential property in Southlake, reflecting an annual cost of $471 for property tax supported debt. For
this, the City is able to provide necessary infrastructure.

Going back to Figure 1, the remainder of the City’s debt service (55%) for FY 2027 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 utilizes funds collected by shoppers in
the City, many of which reside elsewhere.

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
economic development initiatives.

332 FY 2027 City of Southlake | Budget Book FY 2027 City of Southlake | Budget Book 333