Page 112 - Southlake FY23 Budget

CITY PROFILE

unreSerVeD general funD balanCe aS a % of oPerating
exPenDitureS

45.00%
39.95% Desired Fund Balance
40.00%
31.60% 36.51% Transferred to
32.79% Strategic Initiative
35.00% Fund

30.00%
% OF OPERATING EXPENDITURES 25.00% 25.20% 25.39%

20.00%

15.00%

10.00%

5.00%

0.00%
2018 2019 2020 2021 2022* 2023**
FISCAL YEAR
Warning Trend: Increase in general fund operating deficit or *Unaudited General fund operating deficit or surplus
surplus as a percentage of net operating expenditures **Proposed Budget Net operating expenditures

The size of a local government’s fund balance can affect its ability to withstand financial emergencies. While the
availability of unencumbered reserves is a positive, it should also be noted that too large of a fund balance is also
viewed as a red flag. The City of Southlake’s Fund Balance Policy states, “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%.”

Since 2006, any dollars beyond the optimal goal of 25% have been transferred to the Strategic Initiative Fund (SIF)
whose use is limited to one-time, non-recurring expenses. This fund has been used for infrastructure maintenance
(City facility repairs and renovations), Southlake 2030, technology needs, and capital projects such as roads and
sidewalks. In fact, the SIF has funded more than $81 million of capital projects since 2006, allowing the City to avoid
borrowing money to fund these projects. The City has also been able to purchase needed public safety equipment
such as a fire ladder truck, engine and an ambulance, as well as a portion of the outdoor warning system. This fund
has been a valuable tool for funding high impact projects.

Fiscal Year Actual Funds Spent Fund Balance Fiscal Year Actual Funds Spent Fund Balance
2011 $29,907,850 . $10,238,177 2018 $37,561,818 $11,870,887
2012 $30,208,8040 $10,764,774 2019 $38,428,580 $12,601,730
2013 $32,791,958 $11,296,929 2020 $38,481,661 $14,049,369
2014 $33,429,210 $11,394,336 2021 $40,559,152 $16,203,389
2015 $34,249,021 $12,246,504 2022* $39,164,378 $9,868,885
2016 $34,834,913 $12,214,105 2023** $48,266,972 $12,257,247
2017 $35,742,544 $11,758,431

BUDGET BOOK | FY 2023 City of Southlake 111
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