Page 169 - CityofSouthlakeFY26AdoptedBudget

rate above 70% of the market for general government employees and above 85% for sworn public safety
personnel, supporting its employer-of-choice goals and reinforcing the City’s ability to attract and retain
top talent.

Forecasting. The multi-year expenditure forecast for FY 2026 through FY 2030 includes these major
assumptions:
• Inflationary growth in the cost of goods and services.
• Continued application of the compensation philosophy to maintain competitiveness.
• Planned capital outlay to support ongoing infrastructure maintenance and replacement.

Through these strategies, the City works to ensure that expenditures grow in line with available revenues Multi-year Operating Plan
while maintaining high service standards for the Southlake community. For the period of FY 2026 to FY
2030, major expenditure growth rates were forecasted as follows:

Five Year Financial Forecast Expenditure Assumptions
FY 2026 - FY 2030

FY 2026
FY 2030
FY 2028
FY 2027
Assumption Adopted Forecast Forecast FY 2029 Forecast
Forecast
Budget
CPI / Inflation 2.5% 3.0% 3.0% 3.0% 3.0%

Compensation 5.5% (includes
System Market Merit pay) 4.0% 4.0% 4.0% 4.0%
– Public Safety

Compensation
System Market
– General 2% - 4% 4.0% 4.0% 4.0% 4.0%
Government +
Merit Pay

Benefits 5.0% 8% 8% 8% 8%

*Adopted budget growth (General Fund) of 3.5% achieved through base budget reallocations, including staffing adjustments.. .

Capital Projects & Infrastructure Investments

Each year, the City of Southlake develops and funds a multi-year Capital Improvement Program (CIP) to
guide investments in major public facilities and infrastructure. The CIP is more than a project list—it is a
strategic planning and financial management tool that ensures capital improvements are delivered in a
timely, cost-effective manner and aligned with the City’s long-term vision.

FY 2026 City of Southlake | Budget Book 169