Page 61 - CityofSouthlakeFY27Budget

TABLE OF CONTENTS

Revenue highlights. For this fiscal year, $2,896,800 is anticipated in sales tax collections for the district,
along with $175,000 in interest income for total revenues of $3,071,800. This is a projected increase of
6.7% compared to the prior adopted budget.

Expenditure highlights. Total operating expenditures are adopted at $3,054,004. This is a projected
increase of 13.1% compared to the prior adopted budget. This increase is attributed to Police Department
equipment replacement, including a body camera system upgrade budgeted at $484,138. Budget Overview

Personnel. CCPD provides for the ongoing allocation of dollars for personnel expenses related to the
School Resource Officer Program. This budget includes $2,366,535 for this purpose, a 4.3% increase
from the prior year adopted budget. All compensation and benefit adjustments previously mentioned
will be funded by CCPD for these employees. As recurring personnel costs continue to grow and
revenue growth in the district slows, the City is closely monitoring the long-term sustainability of the
fund. As expenditures begin to outpace revenues, the strategy will be to first draw down the CCPD
fund balance to cover any gap between recurring revenues and expenditures. Over time, to maintain
structural balance and ensure continued support of the School Resource Officer Program and to fund
the replacement of necessary public safety equipment, the City anticipates that a portion of these costs
will need to be transitioned back into the General Fund. While the exact timing of this shift is uncertain,
it is a key consideration in the City’s multi-year financial projections and long-term planning efforts.

Operations. This fund also includes funding for necessary equipment to support the operations of the
Police Department, detailed in the expenditure table for this fund.

Indirect charge/transfers. A transfer of $122,872 to the General Fund is planned for an indirect charge.

Sustainability approach. As part of the FY 2027 budget, the City established a phased, long-term
sustainability strategy for the Crime Control and Prevention District, developed with the City Council at
the summer strategic priorities workshop. Reviewing and refining this framework before cost pressures
materialize is a deliberate practice, one that positions the District to continue supporting the School
Resource Officer program and public safety equipment replacement as recurring personnel costs grow
and revenue growth in the district slows.

Fund balance. The ending fund balance for the CCPD Operating Fund is projected at $5,588,309, a 0.7%
increase compared to the prior adopted budget. The budget was approved by the District Board of
Directors at their July 29, 2026, meeting.

COMMUNITY ENHANCEMENT AND DEVELOPMENT
CORPORATION

In May 2015, Southlake voters overwhelmingly approved the reallocation of a portion of the CCPD half-
cent sales tax for the purpose of constructing and operating a recreation center through the Community
Enhancement and Development Corporation (CEDC). The CCPD half-cent sales tax was reduced to
a one-eighth cent tax and the remaining three-eighths was reallocated to address recreational and
economic development needs for the City, as permitted by State law, through the CEDC.

FY 2027 City of Southlake | Budget Book 61