Page 20 - Southlake FY21 Budget

• Maintenance and upgrade of existing infrastructure (water, wastewater, streets,
drainage, and community facilities) include: Complete design and begin
construction of a new Central Fire Station, construction of Phase 2 of the Saginaw
Boulevard 16” water line, design and construction of a northwest booster pump
station. Construction of Phase 2 of the East Cement Creek drainage
improvements. Construction of the Bailey Boswell Overpass. Design for future
improvements to Knowles Drive, signals at Knowles/Bailey Boswell and WJ Boaz/
Old Decatur, and design of Old Decatur Road North. Street repairs will be made
on East Industrial between Blue Mound Road and Watson Boulevard,
reconstruction of Opal Street from McLeroy to Ruidoso, and White Rock Drive from
Longhorn to West Cliff Avenue.

Other major issues in each of the operating funds of the City are outlined as follows:

GENERAL FUND

This year our estimated General Fund Revenues total $17,053,925. Expenditures total
$19,936,775. The difference of $2,882,850 will be funded using existing fund balance.
The draw-down of fund balance will be used for non-recurring and one-time capital
purchases. $2,600,000 of the use of fund balance is partial funding for the Bailey Boswell
Overpass project. Our ending balance on September 30, 2020 is estimated at
$12,205,852.

The two major sources of revenue consist of $5,392,875 from sales tax revenue and
$6,249,000 from ad valorem tax revenue. The 2020 taxable value is $2,198,509,226 and
reflects $56,778,169 in new construction. The taxable value increased by 3.4% this fiscal
year. The approved budget is based on a 2020 tax rate of $0.461579, which is 2.579
cents more than the 2019 rate of $0.459, with $0.284238 for maintenance and operations,
and $0.177341 for debt service.

Sales tax revenues fluctuate from month to month. We estimate that we will receive
$5,392,875 in sales tax revenue, which is slightly lower than the amount we expect to
collect in FY2019-2020. We use a conservative approach in projecting this volatile
revenue source and have taken into account the anomalies of the pandemic.

General Fund expenditures have increased by $2,375,740 or 14% when compared to the
previous year’s revised budget. The increase is due to $2.6 million included for partial
funding of the Bailey Boswell Overpass project. There is a decrease in one-time items in
FY 2020-2021; these decreases are partially offset by the cost of compensation
increases. The changes by department are described below.

A separate document (Budget Guidelines) is prepared for Department Heads and
identifies the expenditures by account number with explanations for each. The FY 2019-
2020 General Fund Revised Budget is $17,561,035. The approved 2020-2021 budget is
$19,936,775. Capital outlays and transfers total $2,930,890. The following chart shows
the changes in expenditures for each department in the General Fund.

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