Page 172 - CityofSouthlakeFY26AdoptedBudget

Integration with the Multi-Year Operating Plan. The capital expenditures identified in the current multi-
year CIP (Figure 5) are incorporated into the City’s multi-year financial analysis. This integration ensures
that the operating impacts of capital investments, such as ongoing maintenance costs, are factored into
long-term financial planning, protecting the City’s ability to sustain high-quality services well into the
future.
.
Strategic Reserves

Maintaining healthy reserves is one of Southlake’s most important financial safeguards. Strategic
reserves strengthen the City’s ability to respond to unexpected events, economic shifts, or changes in
revenue without disrupting essential services. They also demonstrate strong fiscal discipline, supporting
the City’s excellent credit ratings and financial reputation.

Policy Framework. The City’s fund balance policies, found in the Appendix, set clear targets for reserves
in each major operating fund:
• General Fund: Undesignated fund balance should range between 15% and 25% of operating expenses.
For FY 2026, the City projects a balance of 25.60%, providing a robust cushion for unanticipated or
emergency needs.
Multi-year Operating Plan
• Utility Fund: The target is 60–90 days of working capital. FY 2026 projections exceed this range to

Southlake Reserves and Projected Fund Balances -
Major Funds FY 2026 - FY 2030

FY 2026
FY 2027
Fund Adopted Forecast FY 2028 FY 2029 FY 2030
Forecast
Forecast
Forecast
Budget
$14,441,822
$15,000,768 $15,062,464 $15,771,131 $16,185,433
25.60%
General Fund
fund balance as
% of operating 25.82% 25.17% 25.58% 25.49%
expenditures
$24,946,535 $25,266,458 $25,204,567 $25,222,378 $24,878,529
Utility Fund 286 days working 282 days working 270 days working 264 days working 250 days working
capital capital capital capital capital

Hotel
Occupancy Tax $5,156,601 $5,811,955 $6,661,322 $6,511,121 $6,612,106
Fund

Southlake
Parks
Development $13,433,665 $13,068,250 $12,404,171 $11,627,718 $11,142,711
Corporation

Crime Control
& Prevention $5,421,251 $5,305,606 $4,604,156 $4,311,399 $3,921,544
District Fund

Community
Enhancement
& Development $23,655,890 $28,446,406 $33,232,483 $35,586,381 $37,688,006
Corporation
Fund

172 FY 2026 City of Southlake | Budget Book FY 2026 City of Southlake | Budget Book 173