Page 327 - CityofSouthlakeFY26AdoptedBudget

Introduction Special Revenue Funds

The City of Southlake has over 50 funds with In another example, the City receives proceeds
specific purposes which are defined by federal, from bonds issued for various projects. The
state, or local laws. They include the General Fund Official Statement for a bond issue outlines how
which is used for general city operations, the much money the City will receive, how that money
Utility Fund which is used to support the City’s will be repaid, and on what the money can be
water, sewer, drainage, and solid waste service, spent. This document is legally binding on City
and a multitude of Special Revenue and Capital officials and is enforced by federal, state, and local
Project Funds. Simply stated, funds are set up like laws. If the Official Statement says we received
separate companies which must operate under $12,000,000 for roadway improvements, City
specific parameters. Council and management may not opt to spend it
on equipment or supplies. The money is recorded in
For example, the City receives $0.02 of sales tax a Capital Project Fund for roadway improvements
for every dollar spent in our city limits. One of and can only be spent on roadway improvements.
those pennies goes to the General Fund and can
be spent on general operating costs, like supplies, Although these examples are for three very
salaries, and general maintenance. The other penny specific funds, the same concept of expense
is split between our Crime Control and Prevention restrictions applies to all special revenue funds. As
District, the Southlake Parks Development a result, reporting revenues and expenses for the
Corporation and the Community Enhancement and City of Southlake includes 54 miniature financial
Development Corporation. These three units of the statements in addition to a Citywide financial
City of Southlake were voted on by the residents, statement. It may appear that money is available
but state law determines how that money is spent. to spend when in fact the majority of the money
We can only use it for the purposes outlined in the is restricted by law. The chart at left shows the
original referendum presented to the voters, so we structure of all of the City of Southlake’s funds.
set up separate funds to account for the revenues
and expenditures of each unit.

FY 2026 City of Southlake | Budget Book 327