Page 79 - CityofSouthlakeFY27Budget

TABLE OF CONTENTS

Figure 2

2025 Citizen Survey Top 10 Most Important Services
Budget Basics

BASIS OF ACCOUNTING

The City of Southlake utilizes the modified accrual basis of accounting which is a method of accounting
for revenues and expenses when earned or incurred instead of when cash is received or spent.

BASIS OF BUDGETING

The City of Southlake’s basis of budgeting for its major fund groups (General Fund, Utility Fund, Storm
Water Utility Fund, Southlake Parks Development Corporation Fund, Crime Control & Prevention District
Fund and Tax Increment Finance District Fund) and for all Special Revenue Funds is modified accrual,
per the Generally Accepted Accounting Principles (GAAP).

Revenues are budgeted according to when they are both measurable and available. Revenues are
considered to be available when they are collected within the current period, or soon enough thereafter
to pay liabilities of the current period. The City considers property taxes, franchise taxes, licenses, and
interest associated with the current fiscal period susceptible to accrual if they are collected within 60
days of the end of the current fiscal period. Only the portion of special assessments receivable due within
the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All
other revenue items are considered to be measurable and available only when cash is received.

FY 2027 City of Southlake | Budget Book 79