Page 38 - CityofSouthlakeFY27Budget

TABLE OF CONTENTS

Figure 7

Comparison of property values since FY 2018
(assessed and taxable)

^^ ^^ s >h d y > s >h Ύ
Ψϭϳ͕ϬϬϬ
Ψϭϱ͕ϰϳϴ Ψϭϱ͕ϯϲϰ
Ψϭϰ͕ϵϭϭ
Ψϭϱ͕ϬϬϬ
Ψϭϯ͕ϵϳϱ

Ψϭϯ͕ϬϬϬ Ψϭϭ͕ϭϯϴ ΨϭϮ͕ϭϳϳ
s >h d/KE /E D/>>/KE^ K& Ψ Ψϭϭ͕ϬϬϬ Ψϴ͕ϳϰϯ Ψϵ͕ϴϭϬ ΨϭϬ͕ϱϮϲ ΨϭϬ͕ϳϭϰ ΨϭϬ͕ϱϲϱ Ψϭϭ͕Ϯϳϱ Ψϭϭ͕ϳϭϴ Ψϭϭ͕ϲϰϵ
Budget Overview

Ψϵ͕ϬϬϬ

Ψϳ͕ϬϬϬ Ψϳ͕ϳϳϬ Ψϳ͕ϳϲϵ Ψϴ͕ϮϮϭ Ψϵ͕Ϭϲϱ
Ψϳ͕Ϯϴϳ
Ψϲ͕ϲϲϮ
Ψϱ͕ϬϬϬ

Ψϯ͕ϬϬϬ
ϮϬϭϴ ϮϬϭϵ ϮϬϮϬ ϮϬϮϭ ϮϬϮϮ ϮϬϮϯ ϮϬϮϰ ϮϬϮϱ ϮϬϮϲ ϮϬϮϳ

*Net TIRZ value

Ad Valorem (Property Tax) Revenues. The FY 2027 budget reflects a decrease in total ad valorem revenues
($1,596,150 or 4.6%). This decrease is based on a taxable property value base of $12.3 billion, a 0.5%
decrease from FY 2026 taxable property value. A portion of the City’s taxable value is located within Tax
Increment Reinvestment Zone #1 and any revenues generated from growth within this zone are restricted
for use in accordance with the approved project and financing plan. For FY 2027, TIRZ taxable value is
$643,241,626. Figure 6 shows the change in taxable value (net TIRZ) since 2018 and documents the impact
of new construction on the values during the same time period. The total taxable value shown reflects the
tax rate decreases from year to year and excludes the value related to the City’s homestead and other
exemptions. Southlake’s property values have increased appreciably over time, as shown in Figure 7. The
difference between assessed value and taxable value is primarily due to exemptions.

State law requires a taxing unit to calculate two rates after receiving its certified appraisal roll: the no-new-
revenue tax rate and the voter-approval tax rate. The no-new-revenue rate is the rate that will generate the
same amount of property tax dollars as the previous year when the two years are compared, excluding new
construction and annexations.

If a city adopts a tax rate exceeding the voter-approval rate, then the city must hold an automatic election.
Depending on the ultimate rate that is chosen by the city and its relationship to these legally defined rates,
there are requirements that must be followed to comply with truth-in-taxation laws. These requirements
protect the public’s right-to-know concerning tax rate decisions.

Ad Valorem revenues in the FY 2027 budget are based on a tax rate of $0.290 per $100 valuation. This

38 FY 2027 City of Southlake | Budget Book FY 2027 City of Southlake | Budget Book 39