Page 41 - CityofSouthlakeFY25AdoptedBudget

Debt Service Fund

For FY 2025, revenues are estimated at $6,383,136, with $6,253,136 coming from ad valorem taxes, and
$130,000 from interest income. Transfers into the fund are budgeted at $401,762 to pay the debt service for
the bonds issued for storm water improvements. Total expenditures are adopted at $7,068,770 for annual
Budget Overview
principal and interest payments, as well as related administrative costs.

The Debt Service Fund is projected to end the 2025 fiscal year with reserves of $1,940,861, a 24.7% decrease
from the FY 2024 adopted budget. The fund balance allows us to meet our debt service fund balance
policy which states that the City of Southlake “…shall also maintain Reserve Funds for all statutorily required
reserve funds to guarantee debt service.”

DID YOU Through the city’s use of cash and aggressive amortization schedules
DID YOU when debt is issued, the City has reduced the property tax supported
KNOW?
debt per capita from $3,506 in 2010 to $954 in 2025.
KNOW?

Utility Fund

The Utility Fund is used to account for the acquisition, operation, and maintenance of Southlake’s municipal
water and sewer utility, supported primarily by user charges to utility customers. The fund accounts for
operational costs as well as debt service for utility system improvement bonds. The intent of this fund is for
the direct beneficiaries to pay for all costs of the fund – including debt service – through fees levied for the
services provided. Revenue and expenses related to garbage service are also accounted for in the Utility
Fund.

Revenue highlights. The Utility Fund revenues Utility Fund
are projected at $39,442,350 for a decrease of Expenditure Highlights
$984,250. This is a 2.4% decrease when compared
with the FY 2024 adopted budget. This reduction Personnel
can be attributed to a reduction in revenue related Item Expenditure
to sewer sales driven by less than projected use. Pay Adjustment – 3.5% Market
Additionally, in FY 2024, the budget included Maintain Compensation - General
adjustments to account for a rate increase and the Market Position Government
impact of that increase was less than projected. Health Insurance 6.9% rate increase

Expenditure highlights. Total expenditures in Operations
the Utility Fund are adopted at $29,584,559 Infrastructure Inspection
a 5.7% decrease from the FY 2024 adopted - Camera Van Buildout $61,000
budget. This decrease is a result of a one-time
expense in 2024 that was removed for 2025 and Gateway Sanitary Sewer $45,000
Lift Station Control
wastewater expenses were reduced in anticipation Panel
of a reduction in costs with our wastewater service
provider as a result of anticipated consumption Roadway Plates $15,000
reductions.

FY 2025 City of Southlake | Budget Book 41