Page 23 - CityofSouthlakeFY27Budget

TABLE OF CONTENTS

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Purchasing & Internal Controls. Disciplined spending depends as much on strong purchasing practices
and internal controls as on any single funding decision. The City buys competitively, including through
cooperative purchasing agreements, which combine the buying power of many public agencies to
secure unit pricing and multi-year rate stability a single city could not achieve alone, with best value,
not lowest price, as the standard. Those purchases sit within a framework of layered controls: defined Budget Overview
approval levels, independent review, and expenditures monitored against budget throughout the year
so variances are identified and addressed early. Together, these safeguards ensure that public funds are
spent as authorized, as budgeted, and to the community’s greatest benefit.

Process & Technology Efficiencies. Continuous improvement is a dedicated function in Southlake,
not an occasional exercise. A Process Improvement Manager leads a structured program that spans
the organization, working with departments to map workflows, remove redundant steps, standardize
procedures, and pair each improvement with the right technology. This year’s work included consolidating
multiple enterprise software inventories into one and retiring redundant or unused applications,
automating the daily import of purchasing-card transactions that had previously been handled manually
each month, standardizing electronic signature routing across dozens of contract and agreement types,
and centralizing contract records in a single system of record. Much of the underlying technology work
is delivered in-house rather than contracted out: the City’s own developers build, automate, maintain,
and secure the systems behind its financial and business operations, proactively solving problems and
taking on challenges that are often outsourced elsewhere, which stretches the City’s capacity well
beyond its numbers and avoids the vendor and consulting costs that comparable work would otherwise
carry. Together, these efforts shorten turnaround times, strengthen data accuracy and controls, and
free staff capacity for higher-value work, keeping operating costs in check while elevating the customer
experience.

Lifecycle Asset Management & Equipment Replacement. A structured asset-management approach
guides when to maintain, repair, or replace City assets. By prioritizing preventive care and aligning multi-
year replacement schedules with funding plans, we reduce total cost of ownership, limit unexpected
downtime, and ensure that essential resources remain reliable throughout their service life, all while
smoothing year-to-year budget impacts. The FY 2027 budget advances this discipline with a new
Public Safety Equipment Replacement Fund, which builds dedicated capacity to replace the protective,
communications, medical, rescue, and operational equipment that police officers and firefighters depend
on. Because this equipment is acquired and retired in fleets, its replacement cost would otherwise arrive
as periodic spikes; sizing a level annual contribution to the long-term replacement obligation keeps that
cost stable and known in advance, ensures equipment is replaced on schedule rather than deferred, and
protects the General Fund operating budget from year-to-year swings.

Targeted Use of One-Time Funds. Where appropriate, one-time revenues and dedicated reserves are
deployed for non-recurring needs, removing those costs from the operating baseline. Since 2006, the
City’s primary tool for this has been the Strategic Initiative Fund (SIF), which draws on excess revenue
and unspent appropriation to build strategic reserves and fund capital and other one-time needs.
Beyond direct project funding, the SIF sustains the dedicated funds that keep the City’s assets current,
including the Facilities Maintenance and Technology Infrastructure and Security funds. This disciplined
use of one-time resources is a central reason Southlake can advance major projects and maintain its
FY 2027 City of Southlake | Budget Book 23