Page 45 - CityofSouthlakeFY27Budget

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Figure 13
Long-term Debt as a Percentage of Assessed Valuation

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ΨϭϬϬ͕ϬϬϬ͕ϬϬϬ Budget Overview

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Southlake Desired Range
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rating from Fitch Ratings, Moody’s, and Standard & Poor’s. This is the highest possible credit rating the
City can receive. Not only does it reinforce that the City has strong financial management tools, it also
allows for favorable borrowing conditions when the time is right. The City has been able to effectively
manage its debt during a period of growth using cash to partially offset borrowing needs. Additionally,
managing debt amortization has been a tool used to reduce borrowing costs.

Tax Supported vs. Self-Supporting Debt. As Figure 14
you can see in Figure 14, less than half (45%) of
the City’s debt service will be funded through FY 2027 Total Debt Service
bonds tied to the City’s property taxes. For FY
2027, property tax supported debt service is
about $7.3 million. Property tax supported debt
is primarily used for the construction of local
roads, sidewalks and storm water infrastructure.
The City estimates that it will be necessary to WZKW Zdz d y ^hWWKZd
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issue property tax supported debt to fund capital ϰϱй
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critical infrastructure planned for FY 2027 in the ϱϱй
current Capital Improvements Program.

So, what does this mean for Southlake property
owners? Figure 15 shows the total tax bill for
an average residential property in Southlake,

FY 2027 City of Southlake | Budget Book 45