Page 111 - Southlake FY24 Budget

Unreserved General Fund Balance as a
% of Operating Expenditures
50.00%

45.00% 43.01%
39.95% Desired Fund
Balance
40.00%
36.51%
Transferred to
35.00% 31.60% 32.79% Strategic Initiative City Profile
% OF OPERATING EXPENDITURES 25.00% 25.10%
Fund
30.00%
25.93%

20.00%

15.00%

10.00%

5.00%

0.00%
2018 2019 2020 2021 2022 2023* 2024**
FISCAL YEAR

*Unaudited **Adopted Budget
General fund operating deficit or surplus
Net operating expenditures

Warning Trend: Increase in general fund operating deficit or surplus as a percentage of 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 Comprehensive Plan,
technology needs, and capital projects such as roads and sidewalks. In fact, the SIF has funded more
than $89 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 $39,164,738 $15,388,606
2016 $34,834,913 $12,214,105 2023* $48,266,972 $12,692,381
2017 $35,742,544 $11,758,431 2024** $52,625,123 $13,211,435

FY 2024 City of Southlake | Budget Book 111