Page 15 - Southlake FY23 Budget

TRAnSmITTAL LETTER

August 15, 2022
FY 2023 Budget
Honorable Mayor and Accomplishments
Members of the City Council Tax RaTe ReducTion
1400 Main Street, Suite 270
Southlake, Texas 76092 MaxiMuM HoMesTead exeMpTion

Dear Mayor and Members of the City Council, opTiMuM Fund Balances
deBT ManageMenT
In accordance with the Texas Local Government Code and the
Charter of the City of Southlake, the proposed annual budget for casH Funding FoR capiTal pRojecTs
the fiscal year beginning October 1, 2022, and ending September sTRucTuRal Balance
30, 2023, is submitted for your consideration. The budget presents
a summary of the revenues and expenditures for each of the funds sTRong neT Revenues
comprising the city’s budget and provides information about how
planned resource allocation advances the city’s strategic priorities. liMiTed expendiTuRe gRowTH
MulTi-yeaR susTainaBiliTy
Budget Goals coMpeTiTive coMpensaTion and

The FY 2023 proposed budget has been developed with a clear set BeneFiTs
of goals to guide decision-making and promote long-term financial no seRvice level ReducTions
sustainability.

The first goal is to support the City’s strategic priorities and ensure
high quality service delivery. Figure 1 is the City of Southlake Strategy Map, illustrating the City’s focus areas,
objectives, critical business outcomes, and values that guide City work. For more information about the City’s future
direction, please see the Strategic Direction section of the budget document.

Thoroughly understanding economic conditions is critical for proper budgeting. Figure 2 shows the approach used to
gather and analyze local economic information for projecting revenues and multi-year sustainability of the budget.

As the city’s economy has grown, it has been possible to implement twelve tax relief measures since 2009. The
City has provided for maximum homestead exemption relief for homeowners for many years and is including the
maximum allowable 20% exemption in the proposed FY 2023 budget. For FY 2023, a three-cent reduction of the tax
rate has also been proposed as another method of providing tax relief.

Debt management has been a key financial principle that has guided the development of the City’s budget. The City
of Southlake has been able to manage debt so that 100% of the City’s current tax-supported debt will be retired in
less than 10 years.

Methods used to reduce the City’s debt obligations include:
Did You Know?
• careful budgetary management;
• the use of voter-approved special revenue funds; The FY 2023 proposed budget includes a
• aggressive amortization schedules; three cent tax rate reduction, reducing the
• ongoing attention to refunding opportunities; and, tax rate for a fourth consecutive year.
• the use of cash for projects when possible.

14 FY 2023 City of Southlake | BUDGET BOOK
WWW.CITYOFSOUTHLAKE.COM