Page 46 - CityofSouthlakeFY27Budget

TABLE OF CONTENTS

reflecting an annual cost of $471 for property tax supported debt. For this, the City is able to ensure
the necessary infrastructure is updated and maintained proactively and in alignment with community
sustainability standards.

Going back to Figure 14, the remainder of the City’s debt service (55%) in this fiscal year 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 uses funds collected by shoppers in the
City, many of which reside elsewhere.

Budget Overview
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.

Voter-approved special levy sales tax districts also provide a source of funding for park development
and crime control initiatives. Self-supporting debt is another resource used to implement the Capital
Improvements Program. Estimates show that as much as 70% of sales in Southlake are from patrons
living outside the city, and these imported taxpayers, if you will, are helping to construct Southlake’s
infrastructure development.

To learn more about the City’s strategic use of debt, see the Debt Service Fund section of this document.

Figure 15

Total Tax Bill for Average Residential Property in Southlake*
/dzͲKW Z d/KE^ /dzͲ d Kd, Z d y/E' Ed/d/ ^
ΨϮ͕Ϭϰϲ

Ψϰϳϭ

Ψϭϯ͕Ϭϯϴ
*For illustration purposes only.
This chart depicts the total tax bill for the average residential property in Southlake with only the homestead exemption applied.

46 FY 2027 City of Southlake | Budget Book FY 2027 City of Southlake | Budget Book 47