Page 82 - CityofSouthlakeFY27Budget

TABLE OF CONTENTS

What follows is an explanation of the funds themselves and how they contribute to the overall budget.

General Fund. also budgeting expenses in the operating budget
The City’s principal operating fund, which is for facility projects.
supported by taxes, fees, and other revenues that Technology Infrastructure & Security Fund.
may be used for any lawful purpose. This fund The Technology Infrastructure & Security Fund
accounts for all activity not specifically accounted was created in 2017 to build capacity for current
for in other funds. It includes such operations as and future technology needs. Expenditures in this
police, fire, engineering, planning, finance and fund are used to maintain, enhance and replace
administration. It also supports maintenance of technology infrastructure and enterprise software
Budget Basics
the city’s roadway, facilities, storm water, and to ensure the City receives the most reliable
technology infrastructure. It is City policy to and best value with technology investments. In
maintain an undesignated fund balance (reserves) order to keep up with the increasing number
for emergencies or unforeseen circumstances and complexity of security threats, this fund
equivalent to 15-25% of planned expenses. also supports technology security projects and

Strategic Initiative Fund. programs.
This fund was created in 2006 for the purpose of
taking General Fund balance reserves in excess Utility Fund.
of the City identified optimal fund balance level The Utility Fund is an enterprise or business fund.
and using them for one-time expenditures for This means that the direct beneficiaries of the
high-impact projects such as infrastructure “business” pay for all costs through fees or rates.
maintenance, community enhancement, Water, sewer service, and solid waste service
technology and capital acquisition. revenues generated through our rates, as well
as the expenses for providing these services are
Economic Development and Investment Fund. accounted for in the Utility Fund. As with the
The Southlake 2035 Economic Development & General Fund, prudent financial management and
Tourism Strategic Plan includes the following as bond requirements make it necessary to have
recommendation 4.3: “Southlake should establish healthy reserves. Rather than stating the reserves
a fund to use to attract and retain employers, as a percentage of operating expenses, it is stated
as well as to help retain and expand existing as days of working capital. It is our goal to have
businesses.” This fund was created in 2013 for no less than 60 to 90 days of working capital on
that purpose and its use is governed by a City hand.
Council-adopted policy.
Vehicle Replacement Fund.
Facility Maintenance Reserve. This fund accounts for the resources needed to
The purpose of this fund is to build capacity manage the purchase of vehicles for the City’s
for future maintenance projects as we will have fleet. The establishment and funding of the vehicle
many needs to address as our facilities age. The replacement program was designed to even out
Strategic Initiative Fund (SIF) has provided regular expenses for the City’s fleet from year to year
transfers for this fund, an important element of and provide a logical method for purchasing and
our budget given the size and complexity of the retiring vehicles.
City’s facility infrastructure. For the upcoming
fiscal year, we will continue our practice of Debt Service Fund.
transferring SIF money into this fund, but we are Although the Strategic Initiative Fund provides
cash for pay-as-you-go capital projects, the City
82 FY 2027 City of Southlake | Budget Book FY 2027 City of Southlake | Budget Book 83