Page 128 - CityofSouthlakeFY26AdoptedBudget

Unreserved General Fund Balance as a %
of Operating Expenditures

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City Profile
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*Unaudited **Proposed 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 $93.1 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
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 $51,225,330 $17,063,277
2018 $37,561,818 $11,870,887 2025* $54,489,851 $14,114,254
2019 $38,428,580 $12,601,730 2026** $56,413,838 $14,441,822

128 FY 2026 City of Southlake | Budget Book FY 2026 City of Southlake | Budget Book 129