Page 69 - Southlake FY22 Budget

BUDGET OVErVIEW

BUILDInG THE BUDGET

OVErVIEW

Building a budget requires careful consideration of a number of environmental Financial PrinciPles
factors to ensure that it is structurally balanced. This section describes the key structural Balance
factors, growth assumptions, and priorities that are evaluated when developing
the annual budget. taxpayer relieF

CITY COUnCIL POLICY DIrECTIOn strong net revenues
City Council holds two strategic planning sessions with staff annually to discuss optimum Fund
policy direction and strategic priorities. For FY 2022, the City Council prioritized
financial principles for this budget as shown in Figure 3. These financial principles Balances
serve as a guide to staff during the development of the budget. A discussion of limited expenditure
how these financial principles are implemented in this budget can be found in
the Transmittal Letter. growth
multiyear
Economic and fiscal wellness is a balance between today’s
financial position and the financial needs of tomorrow. It is sustainaBility
maintaining control over current reserves, debt and expenditures aaa Bond rating
to ensure the City is able to meet the financial requirements
of the future. In addition to the annual feedback from City Council, the City’s maintenance
budget and policy direction is guided by adopted 2030/2035 Comprehensive cash Funding
Plans. These City Council adopted long-term plans are linked to new requests
for the annual operating budget and the Capital Improvements Program. More / strategic
information about these plans and how they impact operations can be found in management oF deBt
the Strategic Direction section or at www.Southlake2035.com.
Figure 3: Financial Principles
It is also important to note that in 2015, the City Council adopted the Southlake
2030 Sustainability Plan, which works to protect and enhance the quality of
life for present and future generations in Southlake through both environmental and financial sustainability. The
priorities identified in this plan provide a map for the long term economic and fiscal wellness of the city. The plan
recommendations can be found below in Figure 4. The full Economic/Fiscal Wellness section of the plan, which includes
plan recommendations and financial modeling through 2035 can be found in the Appendix.

southlake 2030 sustainability Plan - economic/Fiscal Wellness
Priorities

eFw1: apply sound Financial
policies to the city’s Budget
By maintaining structural eFw2: apply deBt eFw3: Fund and adopt
Balance, strong reserves, management strategies to annual city operating
conservative Budgeting, the city’s Budgeting Budget, capital projects
eFFective economic analysis and equipment through
and understanding the true sound Financial policies
cost oF doing Business

Figure 4: Economic / Fiscal Wellness Priorities identified in the Southlake 2030 Sustainability Plan

68 FY 2022 City of Southlake | BUDGET BOOK
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