Page 178 - CityofSouthlakeFY27Budget

TABLE OF CONTENTS

Integration with the Multi-Year Operating Plan. The capital expenditures identified in the current multi-
year CIP (Figure 5) are incorporated into the City’s multi-year financial analysis. This integration ensures
that the operating impacts of capital investments, such as ongoing maintenance costs, are factored into
long-term financial planning, protecting the City’s ability to sustain high-quality services well into the
future.

STRATEGIC RESERVES

Maintaining healthy reserves is one of Southlake’s most important financial safeguards. Strategic
reserves strengthen the City’s ability to respond to unexpected events, economic shifts, or changes in
revenue without disrupting essential services. They also demonstrate strong fiscal discipline, supporting
the City’s excellent credit ratings and financial reputation.

Policy Framework. The City’s fund balance policies, found in the Appendix, set clear targets for reserves
in each major operating fund:
• General Fund: Undesignated fund balance should range between 15% and 25% of operating expenses.
For FY 2027, the City projects a balance of 25.78%, providing a robust cushion for unanticipated or
emergency needs.
Multi-year Operating Plan
• Utility Fund: The target is 60–90 days of working capital. FY 2027 projections exceed this range to

Southlake Reserves and Projected Fund Balances -
Major Funds FY 2027 - FY 2031

FY 2027 FY 2028 FY 2029 FY 2030 FY 2031
Fund
Budget Forecast Forecast Forecast Forecast

$14,837,424 $14,935,410 $14,178,932 $13,487,324 $14,058,500
25.78%
General Fund fund balance as
% of operating
expenditures 25.19% 23.22% 21.45% 21.70%

$25,779,812 $24,721,027 $23,318,688 $21,547,853 $19,382,449
Utility Fund 283 days working 262 days working 239 days working 213 days working 185 days working
capital capital capital capital capital

Hotel
Occupancy Tax 6,180,680 $6,794,875 $6,093,116 $5,940,534 $6,175,531
Fund
Southlake
Parks
Development $15,312,397 $15,535,049 $16,146,375 $16,982,701 $15,831,946
Corporation

Crime Control
& Prevention $5,558,309 $5,195,388 $4,723,124 $4,165,976 $3,518,104
District Fund

Community
Enhancement
& Development $27,267,575 $27,872,953 $28,553,508 $29,268,143 $29,109,501
Corporation
Fund

178 FY 2027 City of Southlake | Budget Book FY 2027 City of Southlake | Budget Book 179