Page 40 - CityofSouthlakeFY27Budget

TABLE OF CONTENTS

Figure 9
Assessed vs. Taxable Value - Average Home & Property
Tax Bill - Historical

Budget Overview

the original referendum presented to the voters, so we set up separate funds to account for the revenues
and expenditures of each unit. Later sections of this overview provide details about these specific funds
and investments for FY 2027.

Sales taxes are an important source of revenue for the City, making up approximately 31% of total revenues.
It is estimated that non-residents that shop and dine in Southlake generate up to 70% of the sales tax
revenue. Why is this important? This means that “imported taxpayers” visiting the City are supporting a
large portion of the bill for important infrastructure and services that these funds provide. These monies
are used to support the City’s general operations, fund parks development, crime prevention and safety
initiatives, construction and operations of The Marq Southlake, and economic development, as well as pay
off the debt for these funds. Utilizing special sales tax districts has allowed the City of Southlake to maintain
an excellent financial condition and reduce the property tax burden. In FY 2027, about 28% of the total debt
service will be repaid using sales taxes collected for special districts.

For FY 2027, sales tax revenues for all funds (General Fund, SPDC, CEDC and CCPD) are projected to
be $48,917,600, which is $3,754,560, or 8.3% more than the prior year adopted budget. This growth
reflects continued strength in the City’s mature commercial districts rather than the addition of new retail
development. When compared to the FY 2026 amended budget of $48,204,802, the FY 2027 projection
represents growth of approximately 1.5%.

Figure 10 shows the sales tax collection trend since 2022.

Hotel Occupancy Tax Revenues. The Hotel Occupancy Tax is authorized under the Texas Tax Code,
Chapter 351. The City of Southlake adopted Ordinance No. 769 in February 2000, levying a 7% tax on

40 FY 2027 City of Southlake | Budget Book FY 2027 City of Southlake | Budget Book 41