Page 117 - CityofSouthlakeFY25AdoptedBudget

Unreserved General Fund Balance as a
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*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 approximately $92 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
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 $37,780,851 $15,388,606
2016 $34,834,913 $12,214,105 2023 $47,769,084 $17,585,348
2017 $35,742,544 $11,758,431 2024* $53,490,141 $13,650,562
2018 $37,561,818 $11,870,887 2025** $54,489,851 $13,969,152

FY 2025 City of Southlake | Budget Book 117