Page 52 - Southlake FY23 Budget

BUDGET OvERvIEw

GUIDE TO THE BUDGET DOCUmEnT
Guide to the Budget Document

understanding of the core services each department provides as well as performance data related to those services.
Fund Summaries - This section provides an analysis of each separate fund including revenues, expenditures and fund
balance. For comparative purposes, the immediately preceding fiscal year’s audited figures are illustrated, as well as
current year budget, revised current year and proposed budget for the impending fiscal year.

General Fund Expenditures - This section provides the General Fund Summary. The General Fund is the City’s
principal operating fund which is supported by taxes, fees, and other revenues that may be used for any lawful
purpose. This fund accounts for all activity not specifically accounted for in other funds and includes funding for
operations such as police, fire, engineering, planning, finance and administration.

Strategic Initiative Fund - This section provides information about the Strategic Initiative Fund. This fund was
created in 2005 for the purpose of taking General Fund balance reserves in excess of the City identified optimal fund
balance level and using them for one-time expenditures for high-impact projects such as infrastructure maintenance,
community enhancement, technology and capital acquisition.

Facility Maintenance Fund - This section provides information about the Facility Maintenance Fund. The purpose of
this fund is to build capacity for annual or future maintenance projects as we will have many needs to address as our
facilities age. The Strategic Initiative Fund has provided regular transfers for this fund, an important element of our
budget given the size and complexity of the City’s facility infrastructure.

Technology Infrastructure & Security Fund - This section provides information about the Technology Infrastructure &
Security Fund. This fund was created in 2017 to build capacity for current and future technology needs. Expenditures
in this fund are used to maintain, enhance and replace technology infrastructure and enterprise software to ensure
the City receives the most reliable and best value with technology investments.

Economic Development and Investment Fund - The Southlake 2035 Economic Development & Tourism Strategic
Plan includes the following as recommendation 4.3: “Southlake should establish a fund to use to attract and retain
employers, as well as to help retain and expand existing businesses.” This fund was created in 2013 for that purpose.

Utility Fund - This section provides the Utility Fund Summary. The Utility Fund is an enterprise or business fund. This
means that the direct beneficiaries of the “business” pay for all costs through fees or rates. Water, sewer service, and
solid waste service revenues generated through our rates, as well as the expenses for providing these services are
accounted for in the Utility Fund.

Vehicle Replacement Fund - This section provides a fund summary and detailed spending plan for funds to manage
the purchase of vehicles for the City’s fleet. The establishment and funding of the vehicle replacement program was
designed to even out expenses for the City’s fleet from year to year and provide a logical method for purchasing and
retiring vehicles.

Debt Service Funds & Debt Schedules - This section provides a summary of the annual principal and interest
payments for all outstanding bonded debt and capital leases. Also included are some fast facts about the City’s use
of debt and how that debt is funded both through property tax revenue and through dedicated, self-supporting
revenue streams such as sales tax revenues for park development.

Special Revenue Funds - This section provides a detailed spending plan for funds generated from the proceeds of
specific revenue sources that are legally restricted for certain purposes.

Capital Improvements Program - A Capital Improvements Program is for the purchase, construction or replacement
of the physical assets of the City. This section includes a listing of proposed projects for the capital budget as well as
projects that are planned for implementation over a five-year period.

BUDGET BOOK | FY 2023 City of Southlake 51
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