Page 49 - CityofSouthlakeFY26AdoptedBudget

operating expenditures, with the optimum goal of
25%.” Utility Fund
Expenditure Highlights
The adopted budget reflects an undesignated Personnel
General Fund balance of 25.6% of expenditures,
which represents $14,441,822, and falls within the Item Expenditure
fund balance requirements defined in the City’s All Employees - Budget Overview
policy. 2% - 4%
Pay Adjustment - Merit
Performance-Based
Excess revenue and unspent appropriation above Adjustment
the 25% level are set aside for critical, high-impact
projects as a transfer to the Strategic Initiative Health Insurance 5% rate increase
Fund (SIF). Details about the transfer into the SIF Operations
and the use of these dollars can be found later in
this overview. Tyler Technologies
Access Portals
(Resident, Vendor, $12,097
Debt Service Fund Employee)

For this budget, revenues are estimated at Network Redundant $98,832
Connectivity -
$6,581,725, with $6,496,725 coming from ad Infrastructure
valorem taxes, and $85,000 from interest income.
Transfers into the fund are budgeted at $400,552 Wastewater Odor
to pay the debt service for the bonds issued for Treatment Demand $20,000
Increase
storm water improvements. Total expenditures
are adopted at $7,616,297 for annual principal and 811 Software Integration $8,000
Ticket Management
interest payments, as well as related administrative
costs. Fats, Oils, and Grease
(FOG) Ordinance and $9,850
Manual Review and
The Debt Service Fund is projected to end the Revisions
fiscal year with reserves of $1,166,990, a 41.2% Lead and Copper Rule
decrease from the prior year adopted budget. The Improvements (LCRI)
fund balance allows us to meet our debt service Compliance Assistance - $235,724
fund balance policy which states that the City of Phase 4
Southlake “…shall also maintain Reserve Funds for SCADA Cabinet
Preventative
all statutorily required reserve funds to guarantee Maintenance $12,500
debt service.”

Utility Fund

The Utility Fund is used to account for the acquisition, operation, and maintenance of Southlake’s
municipal water and sewer utility, supported primarily by user charges to utility customers. The fund
accounts for operational costs as well as debt service for utility system improvement bonds. The intent
of this fund is for the direct beneficiaries to pay for all costs of the fund – including debt service –
through fees levied for the services provided. Revenue and expenses related to garbage service are also
accounted for in the Utility Fund.

FY 2026 City of Southlake | Budget Book 49