Page 15 - Southlake FY20 Budget

Transmittal Letter

August 15, 2019

Honorable Mayor and
Members of the City Council
1400 Main Street, Suite 270
Southlake, Texas 76092

Dear Mayor and Members of the City Council, FY 2020 Budget Accomplishments

In accordance with the Texas Local Government Code and the
Charter of the City of Southlake, the proposed annual budget Tax Rate Reduction
for the fiscal year beginning October 1, 2019, and ending Maximum Homestead Exemption
September 30, 2020, is submitted for your consideration. The Optimum Fund Balances
budget, as filed with the City Secretary, presents in summary Debt Management
form the revenues and expenditures for each of the funds.
Cash Funding for Capital Projects

The proposed budget is a plan that reflects the City’s Structural Balance
commitment to strong financial principles. It is a strategic Strong Net Revenues
budget that aligns resources with organizational goals and Limited Expenditure Growth
aspirations. It provides for investments in safety, mobility,
infrastructure, high performance management, and continued Multiyear Sustainability
quality development. It is a budget that, in many ways, is built Competitive Compensation and Benefits
upon the strength of partnerships and volunteerism. No Service Level Reductions

Budget Goals

The FY 2020 proposed budget has been developed with a clear set of goals to guide decision-making and
promote long-term financial sustainability.

The first goal is to develop a financial plan to support the City’s strategic priorities and ensure high quality
service delivery. As City Council, you have set a clear vision with associated priorities, known as strategic
focus areas. Figure 1 is the City of Southlake Strategy Map, illustrating the City’s focus areas, objectives,
critical business outcomes, and values. For more information about the City’s future direction, please see the
Strategic Direction section of the budget document.

Thoroughly understanding the economic conditions that will impact the budget for the current year and
into the future is critical for proper budgeting. Figure 2 shows the approach used to gather and analyze local
economic information for projecting budget revenues.

As the city’s economy has grown, it has been possible to
DID YOU KNOW? implement relief measures aimed at reducing residential
property taxes. Nine homestead exemption initiatives have
The FY 2020 Proposed Budget been approved by the City Council since 2009, including the
includes a 3.7 cent tax rate reduction, continuation of the 20% homestead exemption proposed for
the largest in more than 25 years. FY 2020.

14 www.CityofSouthl ake.com