Page 75 - CityofSouthlakeFY26AdoptedBudget

What follows is an explanation of the funds themselves and how they contribute to the overall budget.

General Fund. Technology Infrastructure & Security Fund.
The City’s principal operating fund, which is The Technology Infrastructure & Security Fund
supported by taxes, fees, and other revenues that was created in 2017 to build capacity for current
may be used for any lawful purpose. This fund and future technology needs. Expenditures in this Budget Basics
accounts for all activity not specifically accounted fund are used to maintain, enhance and replace
for in other funds. It includes such operations as technology infrastructure and enterprise software
police, fire, engineering, planning, finance and to ensure the City receives the most reliable
administration. It also supports maintenance and best value with technology investments. In
of the city’s roadway, facilities, stormwater, and order to keep up with the increasing number
technology infrastructure. It is City policy to and complexity of security threats, this fund
maintain an undesignated fund balance (reserves) also supports technology security projects and
for emergencies or unforeseen circumstances programs.
equivalent to 15-25% of planned expenses.
Utility Fund.
Strategic Initiative Fund. The Utility Fund is an enterprise or business fund.
This fund was created in 2006 for the purpose of This means that the direct beneficiaries of the
taking General Fund balance reserves in excess “business” pay for all costs through fees or rates.
of the City identified optimal fund balance level Water, sewer service, and solid waste service
and using them for one-time expenditures for revenues generated through our rates, as well
high-impact projects such as infrastructure as the expenses for providing these services are
maintenance, community enhancement, accounted for in the Utility Fund. As with the
technology and capital acquisition. General Fund, prudent financial management and
bond requirements make it necessary to have
Economic Development Investment Fund. healthy reserves. Rather than stating the reserves
The Southlake 2035 Economic Development & as a percentage of operating expenses, it is stated
Tourism Strategic Plan includes the following as as days of working capital. It is our goal to have
recommendation 4.3: “Southlake should establish no less than 60 to 90 days of working capital on
a fund to use to attract and retain employers, hand.
as well as to help retain and expand existing
businesses.” This fund was created in 2013 for Vehicle Replacement Fund.
that purpose and its use is governed by a City This fund accounts for the resources needed to
Council-adopted policy. manage the purchase of vehicles for the City’s
fleet. The establishment and funding of the vehicle
Facility Maintenance Reserve. replacement program was designed to even out
The purpose of this fund is to build capacity expenses for the City’s fleet from year to year
for future maintenance projects as we will have and provide a logical method for purchasing and
many needs to address as our facilities age. The retiring vehicles.
Strategic Initiative Fund (SIF) has provided regular
transfers for this fund, an important element of Debt Service Fund.
our budget given the size and complexity of the Although the Strategic Initiative Fund provides
City’s facility infrastructure. For the upcoming cash for pay-as-you-go capital projects, the City
fiscal year, we will continue our practice of still must borrow to build needed infrastructure.
transferring SIF money into this fund, but we are
also budgeting expenses in the operating budget
for facility projects. FY 2026 City of Southlake | Budget Book 75