Page 42 - CityofSouthlakeFY25AdoptedBudget

Personnel: The Utility Fund includes resources needed to manage and operate the City’s utility system. As
noted in the “Employer of Choice” section earlier, the budget includes compensation increases and provides
funding for benefit cost increases. No new personnel are requested to be funded through the Utility Fund.

Other highlights: A few highlights of supplemental requests for the Utility Fund are shown in the Utility
Fund Expenditure Highlights table on the previous page and are specifically related to providing water, and
or sewer services.

Indirect charge/transfers: We have budgeted a transfer of $1,577,694 from the Utility Fund to the General
Fund to cover indirect expenses and for payment of a franchise fee. A transfer of $8,000,000 to the Capital
Improvements Program (CIP) is also budgeted.

Fund balance: The FY 2025 Utility Fund budget provides 279 days of working capital, or $22,653,172, a 3%
Budget Overview
increase from FY 2024. In anticipation of future funding needed to replace aging infrastructure, this exceeds
the City’s fund balance policy, which states that the “…goal shall be to maintain a fund balance of 60 days
of working capital in the Utility Fund…with the optimum goal of 90 days of working capital.”

Vehicle Replacement Fund Vehicle Replacement Fund
The Vehicle Replacement Fund accounts for the Expenditure Highlights
resources needed to manage the purchase of
vehicles and heavy equipment for the City’s fleet. Equipment
Item Expenditure

Revenue and transfer highlights. For FY 2025, we Fleet replacement per $6,869,876*
are estimating revenue of $420,000 and a transfer schedule
of $3,000,000 from the General Fund to the Vehicle *Includes FY 2022, FY 2023 and FY 2024 vehicles that have not been
received due to supply chain issues and have been re-budgeted.
Replacement Fund.

Expenditure highlights. Expenditures are estimated at $6,869,876 to replace aging vehicles and heavy
equipment coming off-line. It should be noted that supply chain issues continue to affect the City’s ability
to acquire vehicles on a timely schedule. As such, many vehicles slated for replacement during recent fiscal
years have not been received. Funds have been re-budgeted as needed to ensure availability of dollars as
we are able to receive the vehicles.

Fund balance. The projected ending fund balance is $7,246,588, an 12% increase from the FY 2024 adopted
budget. The change can be attributed to funds accumulating related to delays in supply chain for previously-
planned purchases. The planned fund balance provides adequate reserves for the program.

Southlake Sustainability Comprehensive Plan

“The Vehicle
EFW3: Fund and
adopt annual City Replacement The FY 2025 budget
operating budget, Fund should includes a transfer
capital projects and maintain three from the General
equipment through years of reserves Fund of $3,000,000
sound financial as identified in towards this goal.
policies. replacement
schedule.”

42 FY 2025 City of Southlake | Budget Book