Page 42 - Southlake FY22 Budget

TrAnSMITTAL LETTEr

Recycling Fund. The City’s contract for solid waste services provides for an annual payment of $6,000 to the
City for total projected revenue of $6,125 including interest. The adopted budget includes $5,600 for special
projects for FY 2022.

The ending fund balance is projected to be $71,420.

Red Light Camera Fund. In August 2008, the City of Southlake initiated a red-light enforcement camera
system. This was a traffic safety program in which the City used a state-of-the-art digital camera and violation
detection system installed at intersections for the purpose of decreasing the number of red-light runners
and reducing serious vehicle collisions.

The City of Southlake collected 50% of the gross revenue generated from the violations issued and collected
as a result of the program. The City was required to remit 50% of the gross revenue to the State, excluding
program expenditures. Funds collected by the City of Southlake as a result of violations/citations issued were
required to be used for traffic safety programs.

Texas lawmakers passed a bill several years ago to prohibit the use of the cameras. The City immediately
cancelled its contract and ceased operations of the program. The budget accounting for the revenue
generated from the fines previously levied has a beginning fund balance of $550,222. With interest earnings
of $1,200 projected, the fund will still be able to support traffic safety programs in FY 2022. Expenditures for
traffic safety operations have been budgeted at $128,705. This budget also includes a transfer to the Capital
Improvements Program of $100,000.

Ending fund balance for FY 2022 is projected at $322,717.

Initiatives funded through the Red Light Camera Fund address the City’s “Safety and
Security” Focus Area.

Reforestation. The adopted budget includes the special revenue fund to account for revenues and
expenditures dedicated for reforestation. These funds are derived from assessments related to the tree
preservation ordinance and policies. The adopted budget reflects permits/fees of $5,000. No expenditures
are budgeted from this fund for FY 2022. The ending fund balance is projected at $25,307.

The activities supported by the Reforestation Fund support the Council’s desire for
quality development by ensuring that the natural environment is protected and
preserved, or at a minimum replaced.

Storm Water Utility Fund. On October 17, 2006, the City Council established a Storm Water Utility System.
This utility requires a monthly fee for all of Southlake’s developed properties. These fees provide a funding
source for maintenance, repair, and construction of public storm water facilities, and can only be spent
for these purposes. The monthly storm water fee is the same for all residential dwelling units. Residential
properties are charged $8 per month for each dwelling unit that is on the property. Fees for non-residential
properties are calculated individually in proportion to each property’s storm water runoff potential.

For FY 2022, total revenues for this fund are projected at $1,572,600 including $2,100 in interest earnings. This
is a decrease of 0.2% when compared to the FY 2021 adopted budget. Planned expenditures for FY 2022 total

BUDGET BOOK | FY 2022 City of Southlake 41
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