Page 55 - CityofSouthlakeFY27Budget

TABLE OF CONTENTS

In the benefits category, the budget includes funding to support both increased insurance costs and
the City’s retirement obligations. Following a favorable 4% rate renewal with the City’s health insurance
provider, the budget allocates funding to cover premium increases as well as enhancements to the
City’s contribution toward employee dependent coverage. Additionally, funds are included to meet the
required contribution rate and support the City’s targeted amortization goals for retirement benefits
provided through the Texas Municipal Retirement System (TMRS). These investments ensure the City
remains competitive in the labor market while upholding long-term financial commitments. Budget Overview

Operations. The General Fund includes the operational dollars needed to provide basic services such
as police and fire, public works, parks, recreation, library services, and inspections. There are requests
that maintain the City’s current service levels but require additional funding to do so. The full list of
expenditure highlights can be found in the General Fund expenditure highlights table.

Service enhancements. The Municipal Service Center and Public Safety Training Tower come online in
FY 2027. Bringing the facility into operation requires $167,168 in new funding, of which $80,693 falls
to the General Fund, most of it for the training tower, and $86,475 to the Utility Fund, recognizing the
shared use of the space. The General Fund cost was absorbed within managed expenditure growth.

Transfers from General Fund to Other Funds. The General Fund is the source of funding for several
important other funds that support the maintenance of critical infrastructure or the acquisition of heavy
equipment. Total transfers out of the General Fund are budgeted at $6,600,000, comprising $4,850,000
to the Strategic Initiative Fund, $1,500,000 to the Vehicle Replacement Fund, $150,000 to the Economic
Development Investment Fund, and $100,000 to the Commercial Vehicle Enforcement Fund.

Fund balance. The City of Southlake Fund Balance Policy, adopted in 1993, states that the “goal shall be
to maintain a fund balance in the General Fund equal to a minimum of 15% of General Fund-budgeted
operating expenditures, with the optimum goal of 25%.”

The adopted budget reflects an undesignated General Fund balance of 25.78% of expenditures, which
represents $14,837,423, and falls within the fund balance requirements defined in the City’s policy.

Excess revenue and unspent appropriation above the 25% level are set aside for critical, high-impact
projects as a transfer to the Strategic Initiative Fund (SIF). Details about the transfer into the SIF and
the use of these dollars can be found later in this overview.

Maintaining a fund balance at the optimum level identified in the City’s
policy addresses the focus area of Performance Management & Service
Delivery and the strategic corporate objective of “Safeguarding the public
trust through a commitment to thoughtful planning and responsible,
conservative financial management.”
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FY 2027 City of Southlake | Budget Book 55