Page 21 - CityofSouthlakeFY26AdoptedBudget

evaluated for cost-saving opportunities and value enhancements. By adjusting terms and tapping
cooperative purchasing agreements, the City secures more favorable unit pricing and multi-year rate
stability without disrupting service quality.

• Process & Technology Efficiencies. Each year cross-functional teams conduct lean process reviews
to map workflows, pinpoint bottlenecks, and eliminate redundant steps. The resulting improvements
are paired with targeted technology investments—such as automated approvals, self-service portals,
enhanced digital records management and process, and real-time performance dashboards—that Budget Overview
shorten turnaround times, enhance data accuracy, and free staff capacity for higher-value service
delivery. These continuous-improvement efforts keep operating costs in check while elevating the
customer experience.
• Lifecycle Asset Planning. A comprehensive asset-management approach guides when to maintain,
repair, or replace City assets. By prioritizing preventive care and aligning multi-year replacement
schedules with funding plans, we reduce total cost of ownership, limit unexpected downtime, and
ensure that essential resources remain reliable throughout their service life—all while smoothing
year-to-year budget impacts.
• Targeted Use of One-Time Funds. Where appropriate, one-time revenues and dedicated reserves are
deployed for non-recurring needs removing those costs from the operating baseline.

Through this disciplined blend of optimization, resource realignment, and strategic cost containment,
the FY 2026 budget limits expenditure growth in the General Fund to approximately 3.5 percent—just
one percentage point above the CPI benchmark—while still honoring our market-leadership Employer
of Choice pay philosophy and maintaining high service standards. These measures reinforce the City’s
financial guiding principle of managed expenditure growth and position Southlake to deliver exceptional
value to residents today and in the years ahead.

Goal: Tax Rate Management and Tax Relief

Tax rate management and tax relief has been a guiding financial management principle that Southlake
has strategically implemented over time, beginning in 2009 with the adoption of a homestead exemption.
Since that time, Southlake has annually implemented tax relief, first in the form of the homestead
exemption and then beginning in 2019 with tax rate reductions. New development and strong sales tax
revenues combined with expenditure management have made it possible to implement fourteen relief
initiatives since 2009.

State law requires a taxing unit to calculate two rates after receiving its certified appraisal roll – the
no new revenue tax rate and the voter approval tax rate. The no new revenue rate is the rate that will
generate the same amount of property tax dollars as the previous year, excluding new construction and

DID YOU Southlake homeowners benefit from some of the most robust tax
DID YOU
relief options available, including a maximum 20% homestead
KNOW? exemption.
KNOW?

FY 2026 City of Southlake | Budget Book 21