Page 153 - CityofSouthlakeFY25AdoptedBudget

exercises to further identify areas for efficiency gains. At the Figure 4
time of each annual budget process, Department leaders come
together as a team to evaluate requests for funding. This results Consumer
in a city-wide leadership team review of budget requests that Price Index (CPI)
consider citywide priorities. A ranking of the requests with Reporting
recommendations is provided to the City Manager.
All urban consumers, Dallas-
As a service delivery organization, salaries and benefits costs Fort Worth
for personnel make up the majority of operating expenditures. Month - FY 24 CPI Growth
Another strategy the City has employed to manage and help November 5.23%
forecast expenditures is the use of an adopted compensation
philosophy and system. City Council adopted its current January 5.34%
compensation system on August 6, 2013, and amended it Multiyear Operating Plan
mid-year in FY 2022. The compensation system establishes a March 4.86%
defined labor market, market position, pay structure, and plan May 5.03%
for movement through the pay ranges. The City has established
a market compensation target and, on average, endeavors to July 4.08%
pay better than 70% of the designated labor market for general
Average
government employees and better than 85% of the market for (Used to calculate 4.91%
sworn public safety personnel. The system supports the City’s General Fund Existing
Service Growth)
strategic approach, provides for a financially sustainable model,
and ensures a fair and predictable method of career progression
and internal equity.

Major expenditure assumptions in the forecast include inflationary growth factors, impact of maintaining
the existing compensation philosophy and employer of choice goals as well as annual estimated capital
outlay needed to support infrastructure needs. For the period of FY 2025 to FY 2029, major expenditure
growth rates were forecasted as follows:

Five Year Financial Forecast Expenditure Assumptions
FY 2025 - FY 2029

FY 2025
FY 2027
FY 2028
Assumption Adopted FY 2026 Forecast Forecast FY 2029
Forecast
Forecast
Budget
CPI / Inflation 4.91% 3.0% 3.0% 3.0% 3.0%

Compensation
System Market 4.5% 4.0% 4.0% 4.0% 4.0%
– Public Safety

Compensation
System Market 3.5% 4.0% 4.0% 4.0% 4.0%
– General
Government

Benefits 6.9% 8% 8% 8% 8%

*Adopted budget growth (General Fund) of 3.5% achieved through base budget reallocations.
FY 2025 City of Southlake | Budget Book 153