Southlake’s proposed FY 2027 property tax rate of $0.290 is 1.16 cents below the no-new-revenue rate and a half-cent lower than the current rate. The proposal reflects the City’s 10 financial guiding principles, including tax relief, managed expenditure growth, structural balance, and maintaining service levels.
Those principles help shape a budget that combines continued tax relief with investments designed to maintain the high quality of service residents expect while focusing on the City’s long-term financial sustainability.
The proposed rate represents approximately $1.35 million in revenue that the City would otherwise collect. The City also proposes continuing its 20% homestead exemption, which reduces the taxable value of the average Southlake home by more than $217,000.
“The property tax relief is something that has been a policy and a priority of City Council since I’ve been involved and even before that,” Mayor McCaskill said at the August 18, 2026 City Council Meeting.
Maintaining city services while providing tax relief requires careful financial planning. The City’s 10 financial guiding principles include tax relief, as well as managing expenses, maintaining strong reserves, responsibly managing debt, and planning for the future, while continuing to provide the services that residents rely on.
“The good news is the proposed budget matches our recurring revenues and expenses to ensure that we’re not relying on one-time revenue to fund ongoing obligations. This approach ensures we have long-term sustainability and avoids creating future gaps,” said Chief Financial Officer Sharen Jackson.
Southlake residents see that investment throughout the community. The City maintains more than 200 miles of roads, 1,139 acres of parks and open space, more than 110 miles of water lines, and more than 880,000 square feet of facilities. Public safety, infrastructure, and quality-of-life programs remain priorities in the proposed budget, with no reductions to existing service levels.
The proposed budget also maintains a strong financial position. The General Fund balance remains above the City’s 25% optimum target, while $21.05 million in cash funding is provided for capital needs across eight funding sources. Existing property-tax- supported debt also remains on track to be paid off within 10 years.
“Disciplined by design and built to last, this budget reflects the values and discipline that have made Southlake strong for years, and it is a reflection of the strategic policy direction that Council has established,” said City Manager Alison Ortowski.
Residents can continue participating in the budget process during public hearings scheduled for September 1 and September 15. Visit CityofSouthlake.com to review the document in its entirety.
