Page 29 - CityofSouthlakeFY26AdoptedBudget

Budget Overview

The City’s budget is made up of specific funds to account for the revenue and expenditures that support
operations. Funds also account for debt incurred for capital improvements. There are funds supported
by tax revenue, while others are supported by fees that have been put into place to cover the cost of the
service. Some funds are restricted for specific purposes, while others offer more spending flexibility.

This overview is organized to first provide an analysis of the comprehensive budget, providing an overview Budget Overview
of revenue and expenditures across all funds along with a multi-year forecast that incorporates the impact
of FY 2026 budget and includes any anticipated changes to revenues or expenditures within the multi-year
window. Following that, each fund will be highlighted, noting key aspects for each as well as identifying
strategic investments that each fund provides.

Revenues – Total Operating Resources

Total revenues or operating resources in the budget equal $154,402,294, a $5.1 million or 3.4% increase from
the prior year adopted budget – see Figure 5 for a comparison of revenue by source. As shown in Figure
5, sales tax is the largest source of total revenue received by the City and makes up about 29% of total
revenues received. This is followed closely by Ad Valorem or property taxes which make up about 23% of
total revenues received by the City. The table on the next page provides an overview of revenue sources
showing the comparison from the prior year adopted budget to the estimates for this fiscal year.

Figure 5
All funds - Revenue by Source

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FY 2026 City of Southlake | Budget Book 29