Page 68 - CityofSouthlakeFY26AdoptedBudget

Budget 101

A former world leader once said, “It’s clearly a
budget. It has a lot of numbers in it.” And while
that’s a true statement about this budget document,
it should be noted that each of these numbers
has purpose and meaning behind it. The annual
budget serves as a policy document, a financial
plan, an operations guide, and a communications
device for the City. It is the foundation for the City’s
allocation of resources toward high quality service
Budget Basics
delivery plans, targeted investments, and continued
improvements. It also encapsulates incremental
changes addressing service requirements and
builds upon initiatives funded in prior years, while
establishing new direction for programs.

This section explains the meaning behind the numbers which are presented in subsequent chapters. It
gives perspective to the City’s budgeting process, basis of budgeting and accounting, how the budget is
amended, and the fund accounting system. All of these components, combined with the City’s Strategic
Management System make up the primary foundation for every City of Southlake budget document.

Budget Sections

The Budget Document is arranged in 17 sections that are separated by their respective tabs. Below is a
brief description of the materials found in each of the sections.

Budget Overview - The Budget Overview provides a summary of key information included in the
adopted budget. The section begins with the Manager’s Message - a letter written to the City Council by
the City Manager describing budget development considerations and summarizing the high-level goals
accomplished with the budget. The section continues with budget overview information, including the
adopted tax rate and expenditure and revenue analysis and provides adopted fund summaries as well
as overviews of the departmental plans. This section helps tie together the core elements which make
up the adopted budget and illustrates how those elements further the City’s goals found within the
Strategic Management System.

Budget Basics - This section helps explain the meaning behind the numbers presented in subsequent
chapters. It gives perspective to the City’s budgeting process, basis of budgeting, fund accounting
system, and an explanation of factors included in budget development.

City Profile - This section of the budget document offers a quick, effective visual of the City’s financial
condition. We believe the ability to monitor and evaluate the financial condition of a local government
is critical to that government’s successful, prosperous future. Recognizing that trends can provide early
warning signals, staff regularly monitors numerous financial indicators. A list of Council members, an
organizational chart, location and a history of the City is also provided in the City Profile.

68 FY 2026 City of Southlake | Budget Book FY 2026 City of Southlake | Budget Book 69