Page 523 - Southlake FY22 Budget

APPEnDIX

FInAnCIAL POLICIES

CiTy Of sOuThlake
fund BalanCe POliCy

(adOPTed augusT 1993)
(amended sePTemBer 2011)

The City of Southlake’s goal shall be to maintain a fund balance in the General Fund equal to a minimum of 15% of
General Fund budgeted operating expenditures, with the optimum goal of 25%.

The City of Southlake’s goal shall be to maintain a fund balance of 60 days of working capital in the Utility Fund, an
Enterprise Fund, with the optimum goal of 90 days of working capital.

The City of Southlake shall also maintain Reserve Funds for all statutorily required reserve funds to guarantee debt
service.

The reserves shall be created and maintained to provide the capacity to:

1. Offset significant downturns in revenues;

2. Provide for emergency expenditures;

3. Provide sufficient working capital; and,

4. Provide a sufficient cash flow for daily financial needs at all times.

In September 2011, City Council amended the policy the change the reporting presentation of fund balance to include
fund balance categories and classifications in accordance with GASB 54.

522 FY 2022 City of Southlake | BUDGET BOOK
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