Page 376 - CityofSouthlakeFY26AdoptedBudget

Investments
Investments shall be made in conformance with the City’s Investment Policy, with the primary objectives of:
- Safety-preservation of capital in the investment portfolio;

- Liquidity-portfolio remain sufficiently liquid to meet operating requirements; and,

- Yield-goal of rate of return of 102% of U.S. treasury curve at average maturity.

Grants
All grants and other federal and state funds shall be managed to comply with the laws, regulations, and
Appendix
guidance of the grantor, and all gifts and donations shall be managed and expended according to the
wishes and instructions of the donor.

Tax Collection
The City shall encourage the Tax-Assessor-Collector to follow an aggressive policy of collecting
property tax revenues. An average collection rate of at least 98% of current levy shall be maintained.

Reserves
- The City’s General Fund unreserved ending balance may only be used for one-time purchases such as
capital equipment.

- The General Fund unreserved/undesignated balance shall be maintained at a minimum of 15% up to an
optimum balance of 25% of annual General Fund expenditures.

- The fund balance in the debt service fund shall be maintained at a minimum level of 4.0% of annual debt
service expenditures.

- Utility Fund unreserved/undesignated retained earnings balance shall be maintained at a minimum of 60
up to an optimum balance of 90 days of working capital.

Debt Management
- Debt financing which includes permanent improvements bonds, revenue bonds, certificates of obligation,
lease/purchase agreements and other obligations allowed under Texas law shall be used to acquire or
construct land and improvements that cannot be funded by current revenues. The term of debt shall not
exceed the expected useful life of the capital asset being financed and in no case shall it exceed 25 years.

- Debt will not be used to fund current expenditures.

- Permanent Improvement Bonds shall normally be issued with a level principal structure. This structure
equates to an average life of 11 years or less for a 20-year issue. Interest shall be paid in the first fiscal year
after a bond sale and principal must be paid no later than the second fiscal year after the bond sale.

- Each year the City will adopt a Capital Improvements Program (CIP). The plan will recommend specific
funding of projects for the following fiscal year and will identify projects for further consideration in years
two through five.

- The City is committed to providing continuing disclosure of certain financial and operating data and
material event notices as required by Securities and Exchange Commission (SEC) Rule 15c2-12. The
Finance Department shall be responsible for the preparation of all disclosure documents and releases
required under Rule 15c2-12.

376 FY 2026 City of Southlake | Budget Book