Page 39 - CityofSouthlakeFY27Budget

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rate is lower than the no-new-revenue rate and also
lower than last year’s rate of $0.295, reducing the
rate by a half-cent. The tax rate of $0.290 is split
between General Fund operations and debt service.
The allocation for FY 2027 is $0.235 for general
operations and $0.055 for debt service. The FY
2027 reduction has been taken from the operations Budget Overview
portion of the rate.

As shown in Figure 8, Southlake’s calculated voter-
approval rate is higher for FY 2027 than the current
adopted tax rate. Therefore, the tax rate is not
subject to an automatic election.

The ongoing use of the 20% homestead exemption
will complement the current over-65 exemption
of $75,000, disabled exemption of $75,000, and
the over-65 tax freeze. The continuation of these
exemptions offers additional tax relief. Together,
these exemptions reduce revenue in FY 2027 by
$6,925,789.

A 20% homestead exemption will reduce the taxable
value of an average-valued home in Southlake by
$217,006. The property owner of an average-valued home will see the equivalent of a tax rate reduction of
approximately 5.9 cents per $100 valuation with the exemption applied. With the homestead exemption in
place, and considering the tax rate reduction, the equivalent residential tax rate on an average-valued home
is $0.231.

Figure 9 reflects how the City has provided tax relief through the homestead exemption and adjustments
to the property tax rate to conservatively manage taxes paid by property owners.

Sales Tax Revenues. In Southlake, the total sales tax rate is 8.25%. Of that, the City receives $0.02 of
sales tax for every dollar spent in our city limits (the remainder goes to the State). One of those pennies
goes to the General Fund and can be spent on general operating costs, like supplies, salaries, and general
maintenance. The other penny is split between our Crime Control and Prevention District (CCPD), the
Southlake Parks Development Corporation (SPDC), and the Community Enhancement and Development
Corporation (CEDC). The money collected in these districts can only be used for the purposes outlined in

Figure 8
Tax Rate Comparison
Fiscal Year Tax Rate No-new-revenue Rate Voter Approval Rate

2026 $0.295 $0.274049 $0.364506
2027 $0.290 $0.301616 $0.377378
Comparison of tax rate, no-new-revenue rate, and voter-approval rate. Note the voter-approval rate is adjusted for unused increment credit.
FY 2027 City of Southlake | Budget Book 39