Page 22 - Southlake FY24 Budget

General Fund Revenue by Source

CHARGES FOR SERVICES PERMITS / FEES MISCELLANEOUS
0.6%
Compensation: The City Council adopted 2.8% 2.7% INTEREST INCOME
FINES 1.1%
its current compensation system on 1.3%
FRANCHISE TAXES
August 6, 2013, and amended it mid-year 5.3%
in FY 2022. The system supports the
city’s strategic approach, provides for a
financially sustainable model, and ensures
a fair and predictable method of career

progression and internal equity.
Transmittal Letter
AD VALOREM TAX
The compensation system establishes a 50.4%

defined labor market, market position, pay GENERAL FUND SALES TAX
35.7%
structure, and plan for movement through
the pay ranges. The city has established
a market compensation target and, on
average, endeavors to pay better than 70%

of the designated labor market for civilian
employees and better than 85% of the
market for sworn public safety personnel. Figure 10

For FY 2024, merit increases up to 4.5% may be earned by employees. Also, note that the City’s pay plan
will be adjusted by increasing starting salaries by 2% to compete with market changes from index cities.

Benefits: The City recently renewed a contract agreement with Cigna for health and dental insurance.

Medical and prescription claims continue to be high, and the renewal includes a 6.9% increase for health
insurance and 5% for dental insurance. For FY 2024, the budget increases the City’s contribution towards
the cost of employee dependent coverage to maintain competitive health insurance rates with the labor

market. The cost of the additional health insurance increase is approximately $388,671 (all funds).

Personnel expenses support the focus area of Performance
Management and Service Delivery, and the Strategic Corporate
Objective of “Attracting, developing, and retaining a talented
and motivated workforce for lasting world-class performance.”

22 FY 2024 City of Southlake | Budget Book