Page 532 - Southlake FY22 Budget

APPEnDIX

FrEQUEnTLY ASKED QUESTIOnS

What percentage change are we anticipating in general fund sales tax revenue for FY 2021
(Adopted) to FY 2022 (budget)?

It is estimated that we will collect $16,405,450 in General Fund sales tax in FY 2022. This number represents a 14.6%
decrease when compared to the FY 2021 Adopted Budget. This projection is based on the anticipated recovery of the
retail and business economy from the impacts of COVID-19 in FY 2020.

General Fund

What is meant by achieving a structurally balanced budget?
A structurally balanced budget is one in which revenues exceed planned operating expenditures, making it unnecessary
to use reserves for recurring operational expenses.

What is meant by the term “fund balance?”
Fund balance is the term used to describe the General Fund reserves. Under City policy, the fund balance should be
15-25% of the City’s operating expenses.

How is the fund balance used?
Typically the fund balance is an unrestricted reserve of funds that is used to address emergencies or unanticipated
needs.

May a portion of the fund balance be designated for particular needs as part of the budget process?
Yes. It may be used for one-time expenditures such as capital needs, provided that the percentage of funds on hand
remains within the desired range of 15-25%. It would not be wise, however, to use the fund balance to cover recurring
expenses (e.g. salaries or other operational expenses).

What percentage of General Fund expenditures go to various departments?
The general fund is allocated as follows:

Public Safety 43.2%

General Government* 19.1%
Community Services** 14.6%

Public Works 11.3%
Finance 5.8%

Planning 5.4%
Economic Development 0.6%

*Includes City Manager’s Office, Communications, City Secretary’s Office, Human Resources, Information Technology,
and Support Services.
**Includes Parks and Recreation, Community Services, and Library.
BUDGET BOOK | FY 2022 City of Southlake 531
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