Page 18 - Southlake FY20 Budget

Transmittal Letter

Southlake

Reserve Funds

Restricted
General Fund Reserves

$10.5M $47.6M

Total Reserves
Special Purpose

Reserves $83.5M

$25.4M

General Fund:
Per the Fund Balance Policy, the undesignated fund balance in the General Fund should range between 15% and 25%
of operating expenses. For FY 2020, $10.5 million will remain in the General Fund, providing 25.05% of operating
expenses for unanticipated or emergency needs. Use of these funds is unrestricted.

Restricted Reserves:
The use of reserves in restricted funds is dictated by Statute, unlike the General Fund reserves whose use is not
restricted. These include: Utility, Debt Service, TIF, CCPD, Storm Water, Commercial Vehicle Enforcement, Hotel
Occupancy Tax, Court Security/Technology, Red Light Camera, Recycling, CEDC, and SPDC funds.

Special Purpose Reserves:
The City has several funds where the use of each fund’s reserves was specified when the fund was created. While not
restricted by Statute, the use is designated in accordance with the purpose of the fund and is not as flexible as the
General Fund. These include: Reforestation, Park Dedication, Parks and Recreation, Library, Vehicle Replacement,
Strategic Initiative, Facility Maintenance, Economic Investment, Public Art, and Technology Infrastructure and
Security funds.
Figure 4: Southlake reserve fund balances

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