Page 24 - CityofSouthlakeFY26AdoptedBudget

continued high medical and prescription claims. The renewal includes modest increases of 5 percent
for health, 1.5 percent for dental, and 8 percent for vision—reflecting both proactive plan management
and the strength of the City’s relationship with the provider. The additional cost of health insurance is
approximately $177,000 (all funds). To remain competitive for dependent coverage, the City will also
increase its employer contribution—an added $138,000 (all funds).

Rather than comparing each benefit in isolation, Southlake evaluates total benefit cost as a percentage
of payroll, a method recommended by the U.S. Bureau of Labor Statistics (BLS). The March 2025 BLS
report places the average benefits load for state and local workers at 38.4% of payroll. The FY 2026
budget holds Southlake’s benefit cost at 30.6% of payroll, a slight increase from 30.2% in FY 2025.

The City also provides retirement benefits through the Texas Municipal Retirement System (TMRS). The
Budget Overview
required contribution rate for FY 2026 is 13.47% (effective January 1, 2026). As of December 31, 2024,
the plan was 90% funded with an amortization period of 19.1 years and supported 359 active members
and 210 retirees.

Benefits Enhancements. Competitive pay and core benefits are only part of being an employer of
choice; Southlake also invests in quality-of-life benefits that foster engagement and well-being. In FY
2026, the following new benefits will be added to the City’s benefits suite:
• Additional Personal Day: Full-time employees will now receive one additional personal day holiday
each year, increasing the paid holiday total from 11 to 12 and allowing flexibility to celebrate a birthday
or personally significant occasion.
• Complimentary Champions Club Membership: All employees will receive a free individual membership
to Champions Club, the City’s premier recreation facility featuring a fitness center, indoor pool, track,
and programs.
• Milestone Service Award Day: Upon reaching specified tenure milestones, eligible employees will be
granted an additional paid day off in recognition of their continued service.
These enhancements, although not strictly compensatory, strengthen Southlake’s overall employee
value proposition and reinforce the City’s culture of recognition and well-being.

Staffing Levels. The FY 2026 budget includes a net decrease of two full-time equivalent (FTE) positions,
bringing the total staffing to 444.1675 FTE. The reduction is a result of a reorganization of the Parks
Maintenance and Operations Division to improve efficiency, strengthen oversight, and align staffing with
key operational functions. The restructuring introduced specialized crews, adjusted leadership roles, and
created a tiered technician structure to support employee development and career progression. These
changes were completed within the existing budget and resulted in a net reduction of two positions.
Department-level staffing is detailed in the City Department Overview section, and a consolidated view
of personnel funded through multiple revenue sources is provided in the Appendix.

Personnel expenses support the focus area of Performance Management
and Service Delivery, and the Strategic Corporate Objective of “Attracting,
developing, and retaining a talented and motivated workforce for lasting
world-class performance.”

24 FY 2026 City of Southlake | Budget Book FY 2026 City of Southlake | Budget Book 25