Page 172 - CityofSouthlakeFY27Budget

TABLE OF CONTENTS

The City’s long-term approach also reflects its commitment to sustainability. In 2015, the City Council
adopted the Southlake Sustainability Plan, which seeks to protect and enhance quality of life for present
and future generations through both environmental and financial stewardship. The plan’s priorities
serve as a roadmap for long-term economic and fiscal wellness (Figure 2), and the full Economic/Fiscal
Wellness section is available in the Appendix.

The multi-year operating plan is updated annually alongside the budget process. It is built on conservative
revenue growth assumptions and a disciplined property tax rate strategy that supports tax relief
goals. The plan assumes no reduction in service levels and accounts for inflationary and market-driven
cost pressures, anticipated infrastructure investments from the City’s most recently adopted Capital
Improvements Program, and adjustments necessary to uphold the City’s compensation philosophy and
maintain its position as an employer of choice.

REVENUES

Southlake’s ability to provide exceptional services depends on a diverse and stable revenue base,
supported by strategic use of reserves. The largest sources are ad valorem (property) and sales taxes,
Multi-year Operating Plan
followed by franchise fees, charges for services, and usage fees.

Taxes. Taxes, both property and sales, are levied to fund governmental activities and are distinct from
fees in that they are not tied directly to a specific benefit received by an individual or property. The
majority of the City’s tax revenues are collected in the General Fund, which supports essential services
such as police, fire, road maintenance, library, and parks. Taxes account for nearly 84% of General
Fund revenues. In addition to the General Fund, a portion of sales tax supports the Crime Control
and Prevention District, Southlake Parks Development Corporation, and Community Enhancement and
Development Corporation, as authorized by state law. Details for these funds can be found in the Special
Revenue Fund section of this document.

Fees. Service fees are another important revenue source. These charges recover all or part of the City’s
costs for providing specific services, granting access to public property, or mitigating the impact of
certain activities on the community. Fees are set to cover the reasonable cost of providing the related

Figure 3

Economic Information Used for City Financial Projections

Economic Labor & Housing and Consumer
Commercial
Indicators Employment Growth Spending

Interest Rates Wages Building Permits Retail Sales
GDP Growth Unemployment Home Values Projections
Fuel Costs Healthcare Costs Top Taxpayer Meetings

172 FY 2027 City of Southlake | Budget Book FY 2027 City of Southlake | Budget Book 173