Page 150 - CityofSouthlakeFY25AdoptedBudget

Introduction

A multi-year operating plan is an essential tool for effective Financial Principles
financial management and strategic planning. By extending Tax Relief
financial analysis beyond the current fiscal year, it allows for a
comprehensive understanding of the long-term fiscal implications Cash Funding of Projects
of today’s decisions. This forward-looking approach helps identify Managed Growth
potential challenges and opportunities, ensuring that the City
can proactively address them and maintain fiscal stability. It also Structural Balance
promotes sustainable budgeting practices by aligning short-term Optimum Fund Balance
actions with long-term goals, supporting the city’s commitment
to providing consistent, high-quality services to its residents. Employer of Choice
Ultimately, a multi-year operating plan fosters transparency, Multi-Year Sustainability
accountability, and informed decision-making, laying a strong
foundation for the City’s financial health and growth. Figure 1

Economic and fiscal wellness is a balance between today’s financial position and the financial needs of
tomorrow. It is maintaining control over current reserves, debt and expenditures to ensure the City is able to
meet the financial requirements of the future. To ensure that the City is guided strategically, staff holds two
strategic planning sessions with the City Council annually to discuss policy direction and strategic priorities.
Multiyear Operating Plan
In addition to the annual feedback from City Council, the City Council has established financial policies and
financial management guiding principles (Figure 1) that are used to guide development of current budgets
and long-range forecasts.

It is also important to note that in 2015, the City Council adopted the Southlake Sustainability Plan, which
works to protect and enhance the quality of life for present and future generations in Southlake through
both environmental and financial sustainability. The priorities identified in this plan provide a map for the
long term economic and fiscal wellness of the city. The plan recommendations can be found below in
Figure 2. The full Economic/Fiscal Wellness section of the plan, which includes plan recommendations and
financial modeling can be found in the Appendix. This plan is also scheduled for review and update in FY
2025, charting the course for the City’s next decade.

The City’s multi-year operating plan is updated each year as the annual budget is prepared. It assumes
conservative revenue growth with conservative property tax rate management guided by tax relief goals.
The plan assumes no service level reductions and provides for growth in expenditures due to inflation and
other known market pressures or cost drivers. Additionally, this plan includes the infrastructure development
costs planned for in the City’s most recently adopted Capital Improvements Program and contemplates
adjustments needed to implement the City’s compensation philosophy and remain an employer of choice.

Figure 2
Economic / Fiscal Wellness Priorities identified
in the Southlake Sustainability Plan

EFW1: Apply sound financial
policies to the City’s budget by EFW3: Fund and adopt
maintaining structural balance, EFW2: Apply debt annual City operating budget,
strong reserves, conservative management strategies to the
budgeting, effective economic City’s budgeting capital projects and equipment
analysis and understanding the through sound financial policies
true cost of doing business

150 FY 2025 City of Southlake | Budget Book