Page 20 - Southlake FY22 Budget

TrAnSMITTAL LETTEr

changes related to operating revenues. This budget provides for optimum fund balances, see Figure 4.

More than 70% of the City’s General Fund budgeted expenditures are related to personnel costs. It is the
City’s goal to provide for a fair compensation and benefit program to ensure a stable and high performing
workforce.

Multi-year financial planning is another budget development consideration, perhaps one of the most
important. The multi-year Capital Improvements Program (CIP) identifies the projects that will be undertaken
for the upcoming five-year period, as well as projects beyond that timeframe. The operational impact of
all identified projects is evaluated, and those costs are incorporated into future budget projections. Trends
that depict the long-term financial health of the City are monitored and ultimately used to make deliberate
decisions in order to reach financial and service goals.

The City has taken an additional formal step to understand and plan for the organization’s financial future
by adopting the Sustainability Master Plan as an element of Southlake 2030. The development of this
plan involved a deep dive into economic and financial trends that will influence the budget long term. It
contains formal recommendations to ensure desired positive outcomes. The Sustainability Master Plan is
included in the Appendix of this document.

serviCe delivery exCellenCe

The City of Southlake is committed to providing residents, businesses, and visitors with high quality, high
value public services.

Figure 5 is the City of Southlake’s organizational chart, showing the departments and reporting relationships.
Strategy execution is a fundamental part of the City’s operations. Department Directors regularly review
progress toward meeting performance targets, including assessments of key accountability indicators
(performance measures) and success in addressing Council-identified critical business outcomes.

Each department has its own Strategy Map built around the department’s core services and a performance
scorecard that includes performance measures and targets that drive business decisions (see City
Department Overview section for more information). Attention is also given to meeting performance
expectations in accordance with the City’s values: Integrity, Innovation, Accountability, Commitment to
Excellence, and Teamwork.

finanCial infOrmaTiOn and fund summaries

The City’s budget is comprised of specific “funds” to account for the revenue and expenditures that support
operations. Funds also account for debt incurred for capital improvements. Some funds are supported
by tax revenue, while others are supported by fees that have been put into place to cover the cost of the
service. Some funds are restricted for specific purposes, while others offer more spending flexibility.

This letter has been organized to describe each fund and to highlight key aspects of the budget for each.

BUDGET BOOK | FY 2022 City of Southlake 19
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