Page 19 - CityofSouthlakeFY27Budget

TABLE OF CONTENTS

plans in about 5.5 days against a 45-day statutory allowance and completing inspections the same
day 99.97% of the time. That speed and predictability, recognized in FY 2026 through the Platinum
Scenic City designation, a 21st consecutive Richard R. Lillie Planning Excellence Award, and Economic
Excellence recognition from the Texas Economic Development Council, gives residents and investors
confidence: 77% of new businesses survive their first five years against a national rate near 52%, and in
the March 2026 Business Climate Survey, the strongest in six years, 97% of businesses rated Southlake
a good or excellent place to operate. Budget Overview

The return is greater still because of how the City is funded. Property tax provides less than half of the
General Fund, about 44%, while sales tax and other sources, much of it paid by shoppers and visitors
rather than residents, cover the rest. Every one of these services is delivered by a financial operation that
holds the GFOA Triple Crown and whose AAA credit rating S&P reaffirmed in FY 2026, so Southlake
households receive a level and quality of service whose full cost exceeds what their property tax alone
contributes.

In short, the FY 2027 budget continues to align resources with strategy, protect service quality, and
position Southlake to meet emerging needs through continuous improvement. Detailed information on
these strategic investments is provided later in the Budget Overview section.

GOAL: ALIGNMENT WITH FINANCIAL POLICIES AND FINANCIAL

MANAGEMENT GUIDING PRINCIPLES

Southlake budgets from a defined set of financial management guiding principles, adopted by the City
Council and reviewed with Council at each budget cycle. These principles govern how the City balances
competing priorities such as service quality, tax relief, reserves, and long-term sustainability, and they
anchor every funding decision in a consistent, disciplined framework. Their value is evident in results
that are validated not by internal standards alone, but by independent, national authorities, year after
year:

• AAA bond rating, the highest possible, from all three major rating agencies (S&P, Fitch, and Moody’s)
• Government Finance Officers Association Triple Crown, earned again in FY 2026 and held by fewer
than 1% of governments nationally
• Fourteenth consecutive Achievement of Excellence in Procurement Awards
• Clean, unmodified opinions from the City’s independent external auditor, year after year
• Texas Municipal Retirement System pension 90.6% funded, with an amortization period of 18.1 years
against a 20-year target
• 96% of residents agree they receive strong value for their City tax dollars

These results are the product of a structurally balanced operating budget and the City’s commitment
to quality and sustainable financial management, applied consistently through the following guiding
principles:

FY 2027 City of Southlake | Budget Book 19