Page 299 - CityofSouthlakeFY27Budget

TABLE OF CONTENTS

STRATEGIC INITIATIVE FUND

The Strategic Initiative Fund (SIF) was created in FY 2006 for the purpose of taking General Fund
balance reserves in excess of the City identified optimal fund balance level and using them for one-time
expenditures for high impact projects such as infrastructure maintenance, community enhancement,
technology and capital acquisition.

The City of Southlake is recognized for its strong financial management as evidenced by the assignment
of ‘AAA’ ratings by both Standard and Poor’s (S&P) and Fitch Rating Services and a Aaa from Moody’s. Strategic Initiative Fund
Three ‘AAA’ ratings put the City into a small and elite group of municipalities that enjoy the highest
possible credit ratings assigned from all rating agencies.

In the most recent credit report issued, S&P noted:
“The rating reflects our opinion of Southlake’s:
• Robust economy in the Dallas-Fort Worth MSA with local income metrics that are significantly above
county and national metrics;
• Well-embedded management policies and practices, highlighted by monthly budget-to-actual
reports, quarterly investment reports, and comprehensive long-term financial and capital plans that
are incorporated into the budget. The city is taking steps to mitigate its exposure to cyber incidents;
• Stable financial performance even with the inclusion of sizable transfers out for capital, coupled with
the maintenance of reserves in excess of its formal fund balance policy;
• Manageable debt profile with rapid amortization, with additional debt issuance plans that we don’t
believe will be meaningful, coupled with manageable pension and other post employment benefit
obligations that represent a relatively small amount of total expenditures.”

FY 2027 City of Southlake | Budget Book 299