Page 103 - Southlake FY20 Budget

City Profile

Unreserved General Fund Balance as a % of Operating Expenditures

40.00%
35.76% 35.06% Desired Fund Balance
35.00% 32.90%
31.60% Transferred to
Strategic Initiative
Fund
30.00% 25.40% 25.05%

% OF OPERATING EXPENDITURES 20.00%
25.00%

15.00%

10.00%

5.00%

0.00%
2015 2016 2017 2018 2019* 2020**
FISCAL YEAR
Warning Trend: Increase in general fund operating deficit or *Unaudited General fund operating deficit or surplus
surplus as a percentage of net operating expenditures **Proposed Budget Net operating expenditures

The size of a local government’s fund balance can affect its ability to withstand financial emergencies. While the
availability of unencumbered reserves is a positive, it should also be noted that too large of a fund balance is also viewed
as a red flag. The City of Southlake’s Fund Balance Policy states, “The City of Southlake’s goal shall be to maintain a
fund balance in the General Fund equal to a minimum of 15% of General Fund budgeted operating expenditures, with
the optimum goal of 25%.”

Since 2006, any dollars beyond the optimal goal of 25% have been transferred to the Strategic Initiative Fund (SIF)
whose use is limited to one-time, non-recurring expenses. This fund has been used for infrastructure maintenance
(City facility repairs and renovations), Southlake 2030, technology needs, and capital projects such as roads and
sidewalks. In fact, the SIF has funded more than $55 million of capital projects since 2006, allowing the City to avoid
borrowing money to fund these projects. The City has also been able to purchase needed public safety equipment such
as a fire ladder truck, engine and an ambulance, as well as a portion of the outdoor warning system. This fund has
been a valuable tool for funding high impact projects.

Fiscal Year Actual Funds Spent Fund Balance Fiscal Year Actual Funds Spent Fund Balance
2010 $29,127,729 $10,715,706 2016 $34,834,913 $12,214,105
2011 $29,907,850 $10,238,177 2017 $35,742,544 $11,758,431
2012 $30,208,804 $10,764,774 2018 $37,561,818 $11,870,887
2013 $32,791,958 $11,296,929 2019* $39,884,408 $10,132,202
2014 $33,429,210 $11,394,336 2020** $41,869,166 $10,487,760
2015 $34,249,021 $12,246,504

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