Page 350 - Southlake FY20 Budget

CIP

• Guides future growth and development.
The location and capacity of capital improvements shape the growth and development of the City. City decision
makers can use the Capital Improvements Program to develop well thought-out policies to guide future land use
and economic development.

• Encourages efficient government.

Interdepartmental coordination of capital improvements programming can reduce scheduling conflicts and ensure
that no single function receives more than its fair share of resources. In addition, the CIP can be used to promote
innovative management techniques and improve governmental efficiency and effectiveness.

• Improves the basis for intergovernmental and regional cooperation.
Capital improvements programming offers public officials of all governmental units (City of Southlake, Tarrant
and Denton Counties, and local school districts) an opportunity to plan the location, timing, and financing of
improvements in the interest of the community as a whole.

• Maintains a sound and stable financial program.

Having to make large or frequent unplanned expenditures can endanger the financial well-being of the City. Sharp
changes in the tax structure or bonded indebtedness may be avoided when construction projects are planned
in advance and scheduled at intervals over a number of years. When there is ample time for planning, the most
economical means of financing each project can be selected in advance. Furthermore, a CIP can help the City avoid
commitments and debts that would prevent the initiation of other important projects at a later date.

• Enhances opportunities for participation in federal or state grant programs.

Preparing a CIP improves the City’s chance of obtaining aid through federal and state programs that provide funds for
planning, construction, and financing of capital improvements. The CIP is considered a “public works shelf” that contains
projects that can be started quickly by having construction or bid documents ready should any grants become available.

Potential Funding Sources
The FY 2020 Capital Budget contains 33 projects submitted by various City Departments. The total cost of all projects
submitted for FY 2020 represents an expenditure of $18,700,000. Although the Strategic Initiative Fund provides cash
for pay-as-you-go capital projects, the City may still borrow to build needed infrastructure. A portion of the revenue
generated by the property tax rate is allocated to support long-term bond projects through the Debt Service Fund
(see the “Debt Services Fund Expenditures” section for more information). This budget proposes that eight cents
of the current tax rate be allocated to support the City’s General Fund debt. Fees and special revenue are used to
support special purpose debt. A Capital Improvements Program details the projects and costs for a five-year period
and identifies future unfunded projects. Debt Service Funds as well as cash provide the needed money to build these
projects.

The following is a summary of the funding sources for these projects:

Cash
For FY 2020, the Capital Budget includes cash funding in the amount of $18,700,000. This includes funds transferred
from the Strategic Initiative Fund as well as cash from other funding sources such as the Public Art Fund, Impact
Fee funds, Storm Water Utility Fund, the Hotel Occupancy Tax Fund, the Park Dedication Fee Fund, Community

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