Page 165 - CityofSouthlakeFY26AdoptedBudget

Introduction
Southlake’s multi-year operating plan is a cornerstone of responsible Figure 1
financial stewardship, ensuring that today’s decisions set the stage
for tomorrow’s success. By looking beyond a single fiscal year, the Financial Principles
City gains a clear view of the long-term fiscal implications of policy
and investment choices. This forward-looking approach helps
anticipate challenges, identify opportunities, and align resources Strategic Alignment
with the City’s strategic vision—delivering consistent, high-quality Tax Relief
services to residents while maintaining financial stability. Cash Funding of
Capital Projects Multi-year Operating Plan
True economic and fiscal wellness requires balancing our current Managed
financial position with the needs of the future. This means carefully Expenditure Growth
managing reserves, debt, and expenditures to ensure we can meet Structural Balance
tomorrow’s obligations without compromising today’s service
quality. Twice a year, the City Council and staff meet in strategic Strategic Debt Management
planning sessions to refine policy direction and set priorities. These Optimum Fund Balance
discussions, guided by Council’s adopted financial policies and
management principles (Figure 1), directly shape the development Employer of Choice
of both the annual budget and long-range forecasts. Multi-Year Sustainability

The City’s long-term approach also reflects its commitment to Maintain Service Levels
sustainability. In 2015, the City Council adopted the Southlake
Sustainability Plan, which seeks to protect and enhance quality
of life for present and future generations through both environmental and financial stewardship. The
plan’s priorities serve as a roadmap for long-term economic and fiscal wellness (Figure 2), and the full
Economic/Fiscal Wellness section is available in the Appendix. This plan is currently under review, with
a policy update scheduled in the coming year to chart Southlake’s course for the next decade.

The multi-year operating plan is updated annually alongside the budget process. It is built on conservative
revenue growth assumptions and a disciplined property tax rate strategy that supports tax relief
goals. The plan assumes no reduction in service levels and accounts for inflationary and market-driven
cost pressures, anticipated infrastructure investments from the City’s most recently adopted Capital
Improvements Program, and adjustments necessary to uphold the City’s compensation philosophy and
maintain its position as 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
budgeting, effective economic the City’s budgeting capital projects and equipment
analysis and understanding the through sound financial policies
true cost of doing business

FY 2026 City of Southlake | Budget Book 165