Page 84 - Southlake FY23 Budget

CITY PROFILE

The question most associated with the analysis of this category in regards to its impact on financial condition is, “Do
legislative policies and management practices provide the opportunity to make the appropriate response to changes
in the environment?”

Financial Factors reflect the condition of the government’s internal finances. They are in some regards a result of
the influence of environmental and organizational factors. Financial factors will eventually show signs of cash or
budgetary problems if there is a problem in regards to the previous two factors. The question most associated with
the analysis of this category in regards to its impact on financial condition is, “Is government paying the full cost of
operating without postponing costs to a future period when revenues may not be available to pay these costs?”

Tools of the Financial Trend Monitoring System
The primary tools of the FTMS are the financial indicators. They represent a way to quantify changes in the FTMS
factors. Many aspects of financial condition cannot be measured explicitly; however, quantifying the indicators
and plotting them over a period of years can allow decision-makers to monitor and evaluate the City’s financial
performance. These indicators do not provide answers as to why a problem occurs or how to solve it but do
allow for an informed response. The following pages include a number of charts displaying indicator data that is
designed to track the financial condition of the City across a period of time. These charts examine data ranging from
population growth to the use of revenues and expenditures per capita, all of which help to identify warning signs in
the City’s fiscal health that could lead to future trouble. By keeping an eye on these important indicators, the City can
carefully monitor the financial trends, and make any necessary adjustments in long-range planning to ensure future
economic stability.

How is the Financial Trend Monitoring System used?
The City maintains a database of monitored trends that are updated and reviewed annually as a part of the budget
process. By reviewing historical actuals over an extensive period of time, long ago forgotten financial impacts may
be reviewed for validity to current economic conditions and variables. Department staff also utilizes FTMS data to
inform their departmental business plans.

BUDGET BOOK | FY 2023 City of Southlake 83
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