Page 171 - CityofSouthlakeFY27Budget

TABLE OF CONTENTS

INTRODUCTION
Southlake’s multi-year operating plan is a cornerstone of responsible Figure 1
financial stewardship, ensuring that today’s decisions set the stage
for tomorrow’s success. By looking beyond a single fiscal year, the Financial Principles
City gains a clear view of the long-term fiscal implications of policy
and investment choices. This forward-looking approach helps
anticipate challenges, identify opportunities, and align resources Strategic Alignment
with the City’s strategic vision—delivering consistent, high-quality Tax Relief
services to residents while maintaining financial stability. Cash Funding of
Capital Projects Multi-year Operating Plan
True economic and fiscal wellness requires balancing our current Managed
financial position with the needs of the future. This means carefully Expenditure Growth
managing reserves, debt, and expenditures to ensure we can meet Structural Balance
tomorrow’s obligations without compromising today’s service
quality. Twice a year, the City Council and staff meet in strategic Strategic Debt Management
planning sessions to refine policy direction and set priorities. These Optimum Fund Balance
discussions, guided by Council’s adopted financial policies and
management principles (Figure 1), directly shape the development Employer of Choice
of both the annual budget and long-range forecasts. Multi-Year Sustainability

Maintain Service Levels
These guiding principles are not static. The City reviews them
regularly and updates its guidelines and policies with the future
in mind, so that the framework keeps pace with changing needs.
As part of the FY 2027 budget, staff worked with the City Council at the summer strategic priorities
workshop to establish additional expenditure guidelines for Southlake’s three dedicated sales tax
districts, which fund parks, public safety, and economic development largely through sales tax paid by
visitors rather than by local property owners.

New guiding principles and cost-sharing guidelines for the Southlake Parks Development Corporation
and the Community Enhancement and Development Corporation are incorporated into the City’s
financial policies as part of this budget, and a phased, long-term sustainability strategy was established
for the Crime Control and Prevention District. Reviewing and refining these frameworks before cost
pressures materialize is a deliberate practice, one that keeps the City’s policies aligned with today’s
realities while positioning Southlake to meet the needs of the years ahead.
Figure 2

Economic / Fiscal Wellness Priorities identified
in the Southlake Sustainability Plan

EFW1: Apply sound financial
policies to the City’s budget by EFW3: Fund and adopt
maintaining structural balance, EFW2: Apply debt annual City operating budget,
strong reserves, conservative management strategies to
budgeting, effective economic the City’s budgeting capital projects and equipment
analysis and understanding the through sound financial policies
true cost of doing business

FY 2027 City of Southlake | Budget Book 171