Page 342 - Southlake FY24 Budget

Frequently Asked Questions

General Fund

What is meant by achieving a structurally balanced budget?
A structurally balanced budget is one in which revenues exceed planned operating expenditures, making
it unnecessary to use reserves for recurring operational expenses.

What is meant by the term “fund balance?”
Appendix
Fund balance is the term used to describe the General Fund reserves. Under City policy, the fund balance
should be 15-25% of the City’s operating expenses.

How is the fund balance used?
Typically the fund balance is an unrestricted reserve of funds that is used to address emergencies or
unanticipated needs.

May a portion of the fund balance be designated for particular needs as part of the budget process?
Yes. It may be used for one-time expenditures such as capital needs, provided that the percentage of
funds on hand remains within the desired range of 15-25%. It would not be wise, however, to use the fund
balance to cover recurring expenses (e.g. salaries or other operational expenses).

What percentage of General Fund expenditures go to various departments?
The general fund is allocated as follows:

Public Safety 43.5%

General Government* 18.6%
Community Services** 14.6%

Public Works 11.2%
Finance 6.2%

Planning 5.1%

Economic Development 0.8%

*Includes City Manager’s Office, Communications, City Secretary’s Office, Human Resources,
Information Technology, and Support Services.
**Includes Parks and Recreation, Community Services, and Library.

342 FY 2024 City of Southlake | Budget Book