Item 4D - MemoM E M O R A N D U M
March 14, 2023
To: Shana Yelverton, City Manager
From: Sharen Jackson, Chief Financial Officer
Subject: Approve the 2022 Comprehensive Annual Financial Report
Action
Requested: Approval of September 30, 2022, Comprehensive Annual
Financial Report.
Background
Information: The purpose of this item is to seek approval of the 2022
Comprehensive Annual Financial Report.
•City Charter requires the city at the close of each
fiscal year have an independent audit performed by a
Certified Public Accountant. Weaver L.L.P., Certified
Public Accountants, performed the audit for fiscal year
2022.
•City received a “clean” audit on the City’s financial
statements for the year ended September 30, 2022.
There were not any instances of noncompliance or
other reportable findings.
•Jennifer Ripka, Partner, will present the report to the
audit committee on Tuesday during the committee
meeting scheduled at 5:00 prior to the city council
meeting.
Financial
Considerations: None required
Strategic Link: F4 Establish and maintain effective internal controls.
Citizen Input/
Board Review: None required.
Legal Review: None required.
Alternatives: None required
Supporting
Documents: 2022 Comprehensive Annual Financial Report
Staff
Recommendation: Approval of 2022 Comprehensive Annual Financial Report
Item 4D
CITY OF SOUTHLAKE, TEXAS
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022
As Prepared By
Sharen Jackson, CPA
Chief Financial Officer
City of Southlake, Texas
Annual Comprehensive Financial Report
For the Fiscal Year Ended September 30, 2022
Table of Contents
i
Exhibit Page
I.INTRODUCTORY SECTION
Letter of Transmittal vii
Certificate of Achievement xiv
Organizational Chart xv
List of Principal Officials xvi
II.FINANCIAL SECTION
Independent Auditor’s Report 3
A.MANAGEMENT'S DISCUSSION AND ANALYSIS 9
B.BASIC FINANCIAL STATEMENTS
Government-Wide Financial Statements
Statement of Net Position 1 22
Statement of Activities 2 23
Fund Financial Statements
Governmental Funds Financial Statements
Balance Sheet 3 28
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Position 4 30
Statement of Revenues, Expenditures, and Changes in Fund Balance 5 32
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures
and Changes in Fund Balance to the Statement of Activities 6 34
Proprietary Funds Financial Statements
Statement of Net Position 7 37
Statement of Revenues, Expenses, and Changes in Net Position 8 38
Statement of Cash Flows 9 39
Fiduciary Fund Financial Statements
Statement of Fiduciary Net Position 10 43
Statement of Changes in Fiduciary Net Position 11 44
Notes to the Basic Financial Statements 47
City of Southlake, Texas
Annual Comprehensive Financial Report
For the Fiscal Year Ended September 30, 2022
Table of Contents – Continued
ii
Exhibit Page
C.REQUIRED SUPPLEMENTARY INFORMATION
Budgetary Comparison Schedule - General Fund A-1 90
Budgetary Comparison Schedule - Southlake Parks Development Corporation Special
Revenue Fund A-2 91
Budgetary Comparison Schedule - Tax Increment Financing District Special
Revenue Fund A-3 92
Budgetary Comparison Schedule - Community Enhancement Development
Corporation Special Revenue Fund A-4 93
Notes to Budgetary Comparison Schedules 94
Schedule of Changes in Net Pension Liability and Related Ratios - TMRS A-5 95
Schedule of Pension Contributions - TMRS A-6 96
Schedule of Changes in Net OPEB Liability (Asset) and Related Ratios - Southlake Net OPEB (Asset)
Liability for Health Insurance A-7 97
Schedule of Contributions - Southlake Net OPEB Liability (Asset) for Health Insurance A-8 98
Schedule of Changes in the Total OPEB Liability and Related Ratios - TMRS -
Supplemental Death Benefits A-9 99
Schedule of OPEB Contributions - TMRS - Supplemental Death Benefits A-10 100
Condition Rating of Street System A-11 101
D.COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES
Major Governmental Funds
Budgetary Comparison Schedule - General Obligation Debt Service Fund B-1 105
Nonmajor Governmental Funds
Combining Balance Sheet - Nonmajor Governmental Funds C-1 108
Combining Statement of Revenues, Expenditures, and Changes in Fund Balance -
Nonmajor Governmental Funds C-2 112
Budgetary Comparison Schedule - Parks and Recreation Special Revenue Fund C-3 116
Budgetary Comparison Schedule - Parks Dedication
Special Revenue Fund C-4 117
Budgetary Comparison Schedule - Crime Control District Special Revenue Fund C-5 118
Budgetary Comparison Schedule - Hotel Occupancy Special Revenue Fund C-6 119
Budgetary Comparison Schedule - Storm Water Utility Special Revenue Fund C-7 120
Budgetary Comparison Schedule - Court Security Special Revenue Fund C-8 121
Budgetary Comparison Schedule - Court Technology
Special Revenue Fund C-9 122
Budgetary Comparison Schedule - Library
Special Revenue Fund C-10 123
Budgetary Comparison Schedule -Red Light Camera
Special Revenue Fund C-11 124
Budgetary Comparison Schedule - Commercial Vehicle Enforcement C-12 125
Budgetary Comparison Schedule - Southlake Parks Development Corporation
Debt Service Fund C-13 126
Budgetary Comparison Schedule - Southlake Community Enhancement Development
Corporation Special Debt Fund C-14 127
City of Southlake, Texas
Annual Comprehensive Financial Report
For the Fiscal Year Ended September 30, 2022
Table of Contents – Continued
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Table Page
III.STATISTICAL SECTION
Net Position By Component 1 132
Changes in Net Position 2 134
Fund Balances, Governmental Funds 3 136
Changes in Fund Balances, Governmental Funds 4 137
Assessed Value and Estimated Actual Value of Taxable Property 5 138
Direct and Overlapping Property Tax Rates 6 139
Principal Property Tax Payers 7 140
Ad Valorem Tax Levies and Collections 8 141
Ratio of Outstanding Debt By Type 9 142
Ratio of General Bonded Debt Outstanding 10 143
Direct and Overlapping Governmental Activities Debt 11 144
Pledged-Revenue Coverage 12 145
Demographic and Economic Statistics 13 146
Principal Employers 14 147
Full-Time Equivalent City Government Employees By Function/Program 15 148
Operating Indicators By Function/Program 16 149
Capital Asset Statistics By Function/Program 17 150
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v
Introductory Section
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400 Main Street, Suite 440, Southlake, TX 76092 (817) 748-8345
Innovation ◊ Integrity ◊ Accountability ◊ Commitment to Excellence ◊ Teamwork
Finance Department
March 4, 2023
Honorable Mayor John Huffman and
Members of City Council
City of Southlake
Southlake, Texas
Honorable Mayor and Councilmembers:
It is with pleasure that we submit to you the Annual Comprehensive Financial Report
(ACFR) of the City of Southlake for the fiscal year ended September 30, 2022. This report
was prepared by the Finance Department in accordance with the Southlake Charter,
Statutes and generally accepted accounting principles for governments. In addition to
meeting legal requirements, this report reflects the City’s commitment to full financial
disclosure. We encourage you to thoroughly read this report and take the opportunity
to discuss some of the important items it addresses.
In developing and evaluating the City’s accounting system, consideration is given to
the adequacy of internal accounting controls. These controls are designed to provide
reasonable, but not absolute, assurance regarding the safeguarding of assets against
loss from unauthorized use or disposition, and the reliability of financial records for
preparing financial statements and maintaining accountability for assets. The concept
of reasonable assurance recognizes that the cost of a control should not exceed the
benefits likely to be derived, and the evaluation of costs and benefits requires estimates
and judgments by management. We believe that the City’s current system of internal
controls adequately safeguards assets and provides reasonable assurance of proper
recording of financial transactions.
Responsibility for both the accuracy of the presented data and the completeness and
fairness of the presentation, including all disclosures, rests with the City. To the best of our
knowledge and belief, the data, as presented, is accurate in all material respects and
is reported in a manner designed to present fairly the financial position and results of
operations. All disclosures necessary to enable the reader to gain an understanding of
the City’s financial activities have been included.
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Weaver & Tidwell, LLP, Certified Public Accountants, has issued an unmodified (“clean”)
opinion on the City’s financial statements for the fiscal year ended September 30, 2022.
The independent auditor’s report is located at the front of the financial section of this
report.
Management’s discussion and analysis (MD&A) immediately follows the independent
auditor’s report and provides a narrative introduction, overview, and analysis of the
basic financial statements. MD&A complements this letter of transmittal and the two
should be read in conjunction with each other.
PROFILE OF THE GOVERNMENT
General Information
Although Southlake has been a high-growth community for years, when the first settlers
arrived in 1845 they found only a vast area of land and trees where the grand prairie
and cross timbers merged. As the site of the first permanent settlement in Tarrant County,
a portion of present day Southlake was homesteaded in 1866, which consisted of
360 acres. Keeping with the time, the primary industry was agriculture. Farmers grew
peanuts, grains and cotton, and families raised their own livestock.
The area that would become Southlake remained a rural farming community for more
than 100 years until the U.S. Army Corps of Engineers built Lake Grapevine in 1952. The
lake spurred much of the area’s early growth and was the beginning of dramatic
change. The town officially incorporated on September 25, 1956, by a public vote of
30 in favor and 24 against. The original town contained 1.62 square miles and had a
population of just over 100. The residents chose to call this new town Southlake because
it was… south of Lake Grapevine! The Southlake Fire Department was launched in 1965
and the first piece of fire equipment was a 1950 Diamond T-Military unit with a tank
capacity of 1,000 gallons and an auxiliary pump. The first chief of police was hired in
1966, and the City purchased its first patrol car in 1967.
The opening of the Dallas-Fort Worth International Airport in 1974 served as the next
catalyst of growth in the area and Southlake residents adopted a home-rule charter in
April 1987, which created the current council-manager form of government with
six Council Members and a Mayor who are elected at large on a non-partisan basis for
staggered three-year terms. But the single most important event in bringing residential
subdivision development to Southlake was the completion of water and sewer lines in
the southern portion of the City in the early 1990s.
By the 2000s, Southlake had become a boom-burb with the population tripling to almost
22,000 and was well known for its picturesque countryside, exemplary school district and
luxury neighborhoods. Today, the City’s population stands at just over 31,100 and is
estimated to reach 34,000 residents by the year 2050.
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Since that time, much like the area’s first settlers were attracted to the area with its
endless possibilities, Southlake has continued to attract the suburban settler desiring a
high quality of life and the small town charm that has been preserved from Southlake’s
past.
Services Provided
Services provided by the City under general governmental functions include public
events, public safety, planning and development, engineering, street maintenance,
parks operation and maintenance, recreation, library services, and general
administrative services. The City does not provide educational or welfare services.
Water and sewer services and solid waste collection are provided under an enterprise
fund concept, with user charges set by the City Council to ensure adequate coverage
of operating expenses and payments of outstanding debt.
Component Units
The financial reporting entity includes all the funds of the primary government, as well
as all its component units in accordance with GASB Codification of Governmental
Accounting and Financial Reporting Standards, Section 2100, “Defining the Reporting
Entity.” Component units are legally separate entities for which the primary government
is financially accountable and for which the nature and significance of their relationship
with the primary government are such that exclusion would cause the City’s basic
financial statements to be misleading or incomplete.
The City’s financial statements include the following blended component units:
The Southlake Parks Development Corporation (“SPDC”) was formed in January 1994
pursuant to a successful election in November 1993 to adopt an additional half-cent
sales tax for park and recreation facility development. SPDC is organized exclusively to
act on behalf of the City for the financing, development and operation of parks and
recreation facilities.
Also included in this report is financial information for the Southlake Crime Control and
Prevention District (the “District”). In November 1997, voters approved an additional
half-cent sales tax for Crime Control and Prevention initiatives. The District is organized
exclusively to act on behalf of the City for the financing, development and crime control
throughout the City.
In May 2015, Southlake voters overwhelmingly approved the reallocation of a portion of
the District half-cent sales tax for the purpose of constructing and operating a recreation
center through the Southlake Community Enhancement and Development
Corporation (“CEDC”). The District’s 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 CEDC.
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Also, included are the financial statements of the Tax Increment Reinvestment Zone
(“TIF”) which was created in 1997 to encourage quality commercial growth. The TIF
was formed to finance and make public improvements, under the authority of the
Tax Increment Financing Act.
Additional information on these legally separate entities can be found in the notes to
the financial statements (see Note 1).
ECONOMIC CONDITION AND OUTLOOK
The City is in a prime location in Northeast Tarrant County, 5 minutes west of Dallas/
Fort Worth International Airport, and 10 minutes east of the Alliance Airport, a
commercial aviation and industrial complex in north Fort Worth. State Highway 114,
FM 1709, and FM 1938, the regional road arterials, serve the City.
Businesses from many industries including healthcare, hospitality, legal, and financial
services have come together to make Southlake a full-service business community for
all of north central Texas. Sabre, home of Travelocity.com, is the city’s largest employer
with approximately 2,500 employees and Verizon Wireless’ Network Control Center
takes advantage of high-tech infrastructure to manage all wireless communications
west of the Mississippi River from its Southlake location.
Housing Permits
There were 99 single family residential permits issued in Fiscal Year 2022 with an average
new home construction value, excluding land value, of approximately $1,290,000. As
noted on the chart below, the City experienced an increase in residential home
construction.
0
20
40
60
80
100
120
140
2018 2019 2020 2021 2022
Single Family Residential Home Permits
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Water Services
Water customers increased from 11,392 in Fiscal Year 2021 to 11,461 in 2022, while
wastewater customers increased from 9,200 to 9,229 respectively. The chart shows the
five-year trend of increasing water customers, the result of the building permit activity.
The City has developed master plans for land use, water, sewer, parks, trails, and
thoroughfares, and has implemented regulatory controls that will maintain the
anticipated quality growth into the future.
Sales Tax Revenue
The City of Southlake experienced an increase in sales tax collections during the fiscal
year as indicated on the chart. Sales tax collections totaled $41,867,949 in fiscal year
2022, a 11.52% increase from the previous year.
10,900
11,000
11,100
11,200
11,300
11,400
11,500
2018 2019 2020 2021 2022
Number of Water Customers
-
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
2018 2019 2020 2021 2022
Sales Tax Revenue
General SPDC Crime CEDC
xii
Future Development
The City’s dedication to quality development, sound fiscal policies, and effective
strategic management has made it an exemplary community in the Dallas-Fort Worth
region. With impeccably built neighborhoods, a successful downtown, and a diverse
business community, the City offers an enhanced quality of life for both residents and
visitors.
During 2022, 19 new construction commercial permits were issued by the City
representing over 297,220 square feet of future retail/office space.
The City also has the following significant development projects
• Southlake Town Square's second Class-A office building is set to open in FY 2023.
The new five-story, 151,000 square-foot office building is being built adjacent to
the existing Granite Place One building that opened in 2016.
• The XO Marriage Center will include a three-story, approx. 32,190 sq. ft. building
with office, assembly, and studio uses.
• GMI Southlake will include 3 flex light industrial/corporate office buildings totaling
approx. 58,780 sq. ft.
• Methodist Southlake Hospital Emergency Department expansion will include a
one-story, approximately 6,000 sq. ft. addition to the existing hospital building to
provide new nuclear medicine facilities.
Financial Management Principles
The City has strong financial management principles that provide the framework for
financial sustainability.
• Tax rate management. The tax rate is allocated properly between maintenance
/operations and debt service.
• Structural balance. The City’s ability to weather potential economic downturns or
other financial challenges is critical. The City does not use reserves to balance the
operating budget.
• Reserve management. The City’s fund balance policy requires a minimum 15%
and optimum 25% balance. The City uses “excess” reserves as a means to fund
one-time, “pay-as-you-go” projects.
• Multi-year financial plan. The long-term effect of today’s decisions on tomorrow’s
financial situation is an important consideration during the budget process.
• Quality service delivery. The City is committed to meeting the needs of our
community through high quality service delivery.
• Risk management. The City supports ongoing initiatives to safeguard the public
trust by internal audits and other initiatives to maintain a strong control
environment.
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OTHER INFORMATION
Independent Audit
The City Charter requires an annual audit of the financial status of the City by
independent Certified Public Accountants selected by the City Council. This
requirement has been met and the auditor’s report has been included in this report.
Awards
The Certificate of Achievement is a prestigious national award recognizing
conformance with the highest standards for preparation of state and local government
financial reports. In order to be awarded a Certificate of Achievement, a government
unit must publish an easily readable and efficiently organized comprehensive annual
financial report, whose contents conform to program standards.
Such Annual Comprehensive Financial Report must satisfy both generally accepted
accounting principles and applicable legal requirements. A Certificate of Achievement
is valid for a period of one year only. The City of Southlake received a Certificate of
Achievement for the year ended September 30, 2021, and believes our current report
conforms to the Certificate of Achievement program requirements, and we are
submitting it to GFOA.
In addition, the City also received the GFOA’s Distinguished Budget Presentation award
for its annual budget dated October 1, 2021. In order to qualify for this award, the City’s
budget document was judged to be proficient in all categories, including as a policy
document, a financial plan, and operations guide, and a communications device.
Acknowledgments
The preparation of this report could not be accomplished without the dedication and
efficiency of the entire staff and our independent auditor. I would like to express my
sincere appreciation to all employees who contributed to its preparation. I would also
like to thank the Mayor and members of the City Council for their support in planning
and conducting the financial operations of the City in a responsible and efficient
manner.
Respectfully submitted,
Sharen Jackson, CPA
Chief Financial Officer
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City of Southlake, Texas
List of Principal Officals
September 30, 2022
xvi
John Huffman Mayor
Randy Williamson Mayor Pro Tem
Shawn McCaskill Deputy Mayor Pro Tem
Kathy Talley Council Member
Randy Robbins Council Member
Ronell Smith Council Member
Amy Torres-Lepp Council Member
Shana K. Yelverton City Manager
Alison Ortowski Assistant City Manager
Amy Shelley City Secretary
Sharen Jackson Chief Financial Officer
Daniel Cortez Director of Economic Development/Tourism
Robert Cohen Director of Public Works
Chris Tribble Director of Community Services
Stacey Black Director of Human Resources
Dennis Killough Director of Planning/Development
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Financial Section
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Weaver and Tidwell, L.L.P.
2300 North Field Street, Suite 1000 | Dallas, Texas 75201
Main: 972.490.1970
CPAs AND ADVISORS | WEAVER.COM
Independent Auditor’s Report
To Members of the City Council
and City Manager
City of Southlake, Texas
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the governmental activities, the business-type activities,
each major fund and the aggregate remaining fund information of the City of Southlake, Texas (the City)
as of and for the year ended September 30, 2022, and the related notes to the financial statements which
collectively comprise the City’s basic financial statements as listed in the table of contents.
In our opinion, the accompanying financial statements present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, each major fund,
and the aggregate remaining fund information of the City, as of September 30, 2022, and the respective
changes in financial position and, where applicable, cash flows thereof for the year then ended in
accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States
of America (GAAS) and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Our responsibilities under those
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements
section of our report. We are required to be independent of the City and to meet our other ethical
responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe
that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinions.
Emphasis of Matter
As discussed in Note 1 to the basic financial statements, during the year ended September 30, 2022, the
City implemented Governmental Accounting Standards Board (GASB) Statement No. 87, Leases.
Beginning net position and fund balance have been restated as a result of the implementation of this
statement. Our opinions are not modified with respect to this matter.
Responsibilities of Management for the Financial Statements
The City’s management is responsible for the preparation and fair presentation of these financial
statements in accordance with accounting principles generally accepted in the United States of
America; this includes the design, implementation, and maintenance of internal control relevant to the
preparation and fair presentation of financial statements that are free from material misstatement,
whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions
or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue
as a going concern for twelve months beyond the financial statement date, including any currently
known information that may raise substantial doubt shortly thereafter.
The Members of the City Council
and City Manager
City of Southlake, Texas
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Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance
and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect
a material misstatement when it exists. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control. Misstatements are considered material if
there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment
made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, and design and perform audit procedures responsive to those risks. Such procedures
include examining, on a test basis, evidence regarding the amounts and disclosures in the
financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is
expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate,
that raise substantial doubt about the City’s ability to continue as a going concern for a
reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit, significant audit findings, and certain internal control–related
matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis and the required supplementary information, as listed in the table
of contents, be presented to supplement the basic financial statements. Such information is the
responsibility of management and, although not a part of the basic financial statements, is required by
the Governmental Accounting Standards Board who considers it to be an essential part of financial
reporting for placing the basic financial statements in an appropriate operational, economic, or historical
context. We have applied certain limited procedures to the required supplementary information in
accordance with auditing standards generally accepted in the United States of America, which
consisted of inquiries of management about the methods of preparing the information and comparing
the information for consistency with management’s responses to our inquiries, the basic financial
statements, and other knowledge we obtained during our audit of the basic financial statements. We do
not express an opinion or provide any assurance on the information because the limited procedures do
not provide us with sufficient evidence to express an opinion or provide any assurance.
The Members of the City Council
and City Manager
City of Southlake, Texas
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Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City’s basic financial statements. The accompanying combining and individual fund
statements and schedules are presented for purposes of additional analysis and are not a required part
of the basic financial statements.
The combining and individual fund statements and schedules are the responsibility of management and
were derived from and relate directly to the underlying accounting and other records used to prepare
the basic financial statements. Such information has been subjected to the auditing procedures applied
in the audit of the basic financial statements and certain additional procedures, including comparing
and reconciling such information directly to the underlying accounting and other records used to prepare
the basic financial statements or to the basic financial statements themselves, and other additional
procedures in accordance with auditing standards generally accepted in the United States of America.
In our opinion, the accompanying combining and individual fund financial statements and schedules are
fairly stated in all material respects in relation to the basic financial statements as a whole.
Other Information Included in the Annual Comprehensive Financial Report (ACFR)
Management is responsible for the other information included in the ACFR. The other information
comprises the introductory section and statistical section but does not include the financial statements
and our auditor's report thereon. Our opinions on the financial statements do not cover the other
information, and we do not express an opinion or any form of assurance thereon. In connection with our
audit of the financial statements, our responsibility is to read the other information and consider whether
a material inconsistency exists between the other information and the financial statements, or the other
information otherwise appears to be materially misstated. If, based on the work performed, we conclude
that an uncorrected material misstatement of the other information exists, we are required to describe it
in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated March 14,
2023 on our consideration of the City’s internal control over financial reporting and on our tests of
its compliance with certain provisions of laws, regulations, contracts and grant agreements, and
other matters. The purpose of that report is solely to describe the scope of our testing of internal
control over financial reporting and compliance and the results of that testing, and not to provide an
opinion on the effectiveness of the City’s internal control over financial reporting or on compliance.
That report is an integral part of an audit performed in accordance with Government Auditing
Standards in considering the City’s internal control over financial reporting and compliance.
WEAVER AND TIDWELL, L.L.P.
Dallas, Texas
March 14, 2023
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Management’s Discussion and Analysis
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Management’s Discussion and Analysis
The City of Southlake’s Management’s Discussion and Analysis (MD&A) is designed to provide an
objective and easy to read analysis of the City’s financial activities based on currently known facts,
decisions, and conditions. It is intended to provide a broad overview and short-term analysis of the City’s
activities based on information presented in the financial statements. Specifically, this information is
designed to assist the reader in focusing on significant financial issues, provide an overview of the City’s
financial activity, identify changes in the City’s financial position (its ability to address the next and
subsequent years’ challenges), identify material deviations from the approved budget, and identify
individual fund issues.
The City presents its financial statements in accordance with the reporting model required by
Governmental Accounting Standards Board Statement 34, Basic Financial Statements-and
Management’s Discussion and Analysis- for State and Local Governments. This reporting model
significantly changes not only the presentation of financial data, but also the manner in which the
information is recorded.
The information contained within this MD&A is only a component of the entire financial statement report.
Readers should consider the information presented here in conjunction with additional information that
we have furnished in our letter of transmittal, which can be found on pages vii‐xiii of this report.
Financial Highlights
• The assets and deferred outflows of resources of the City of Southlake exceeded its liabilities and
deferred inflows of resources at September 30, 2022 by $739,804,186 (net position). Of this amount,
$108,544,841 (unrestricted net position) may be used to meet the government’s ongoing
obligations to citizens and creditors.
• The City’s total net position increased by $47,138,501. This increase can be largely attributed to a
rise in sales tax revenue, charges for services, and operating grants and contributions.
• At September 30, 2022, the City’s governmental funds reported combined ending fund balances
of $169,456,551. Approximately $401,529 is nonspendable, $99,675,596 is restricted by an outside
source, $1,224,764 is committed for future uses, $53,473,106 is assigned by management for
specified purposes, and $14,681,556 is available for spending at the government’s discretion
(unassigned fund balance).
• At the end of the current fiscal year, unassigned fund balance for the General Fund was
$14,681,556 or 39.0% of total General Fund expenditures.
• At the end of the current fiscal year, the City of Southlake outstanding debt totals $108,885,382 a
net decrease of $7,670,209 from the previous year.
Overview of the Financial Statements
The discussion and analysis is intended to serve as an introduction to the City’s basic financial statements.
The reporting focus is on the City as a whole and on individual major funds. It is intended to present a
more comprehensive view of the City’s financial activities.
The basic financial statements are comprised of three components: 1) government-wide financial
statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains
other supplementary information in addition to the basic financial statements themselves.
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Government-Wide Financial Statements
The government-wide financial statements include the Statement of Net Position and the Statement of
Activities. These statements are designed to provide readers with a broad overview of the City’s finances
in a manner similar to a private-sector business. Both are prepared using the economic resources
measurement focus and the accrual basis of accounting; meaning that all the current year’s revenues
and expenses are included regardless of when cash is received or paid.
The Statement of Net Position presents information on all of the City’s assets and deferred outflows of
resources and liabilities and deferred inflows of resources, including capital assets and long-term
obligations. The difference between the two is reported as net position. Over time, the increases or
decreases in net position may serve as a useful indicator of whether the financial position of the City is
improving or deteriorating. Other indicators of the City’s financial position should be taken into
consideration, such as the change in the City’s property tax base and condition of the City’s infrastructure
(i.e., roads, drainage systems, water and sewer lines, etc.), in order to more accurately assess the overall
financial condition of the City.
The Statement of Activities presents information showing how the City’s net position changed during the
most recent fiscal year. It focuses on both the gross and net costs of the government’s various activities
and thus summarizes the cost of providing specific government services. This statement includes all current
year revenues and expenses.
The Statement of Net Position and the Statement of Activities divide the City’s activities into two types:
Governmental activities – Most of the City’s basic services are reported here, including general
administration, debt services, public safety, public works, parks and community services, public library,
public events and facilities, planning and development and finance. Property, sales and franchise taxes
provide the majority of the financing for these activities.
Business-Type activities – Activities for which the City charges a fee to customers to pay most or all of the
costs of a service it provides are reported here. The City’s business-type activities include water
distribution, wastewater collection and solid waste collection and disposal.
The government-wide financial statements are found on pages 22-23 of this report.
Fund Financial Statements. The City of Southlake, like other state and local governments, uses fund
accounting to ensure and demonstrate compliance with finance-related legal requirements. A fund is a
grouping of related accounts that is used to maintain control over resources that have been segregated
for specific activities or objectives. These statements focus on the most significant funds and may be used
to find more detailed information about the City’s most significant activities. All of the funds of the City
can be divided into two categories: governmental funds and proprietary funds.
Governmental Funds. These funds are used to account for the majority of the City’s activities, which are
essentially the same functions reported as governmental activities in the government-wide statements.
However, unlike the government-wide financial statements, governmental fund financial statements
focus on near-term inflows and outflows of spendable resources, as well as spendable resources available
at the end of the fiscal year for future spending. Such information may be useful in evaluating a
government’s near-term financing requirements.
11
The focus of the governmental funds financial statements is narrower than that of the government-wide
financial statements. Therefore, it is useful to compare the information presented for governmental funds
with similar information presented for governmental activities in the government-wide financial
statements. By doing so, readers may better understand the long-term impact of the government’s
near-term financing decisions. Both the governmental funds Balance Sheet and the governmental funds
Statement of Revenues, Expenditures and Changes in Fund Balances provided a reconciliation to
facilitate this comparison. The reconciliation explains the differences between the government’s activities
as reported in the government-wide financial statements and the information presented in the
governmental funds financial statements.
The City maintains 26 individual governmental funds. Information is presented separately in the
governmental funds Balance Sheet and in the governmental funds Statement of Revenues, Expenditures
and Changes in Fund Balances for the General Fund, General Obligation Debt Service Fund, General
Capital Projects Fund, Southlake Parks Development Corporation, Tax Increment Financing District Fund,
and Community Enhancement Development Corporation Special Revenue Fund, all of which are
considered to be major funds. Data for the other governmental funds are combined into a single,
aggregated presentation. Individual fund data for each of the non-major governmental funds is provided
in the form of combining statements elsewhere in this report.
The basic governmental funds financial statements can be found on pages 28-34 of this report.
Proprietary Funds. When the City charges customers for services it provides, the activities are generally
reported in proprietary funds. The City of Southlake maintains two different types of proprietary funds:
enterprise and internal service funds.
Enterprise funds are used to report the same functions presented as business-type activities in the
government-wide financial statements. The City uses enterprise funds to account for its water and sewer
operations and solid waste. These services are primarily provided to outside or non-governmental
customers.
Internal service funds are an accounting device used to accumulate and allocate costs internally among
the City’s various functions. The City uses internal service funds to account for vehicle and equipment
replacement. Because these services predominantly benefit the governmental rather than business-type
functions, they have been included within the governmental activities in the government-wide financial
statements.
Proprietary fund financial statements provide the same type of information as the government-wide
financial statements, only in more detail. The proprietary funds financial statements can be found on
pages 37-39 of this report.
Fiduciary funds. The City presents one trust fund, the Southlake OPEB Liability Trust Fund, which accounts
for the funding of post-employment healthcare benefits for retirees of the City and their dependents. The
financial statements for the fiduciary funds can be found on pages 43-44 of this report.
Notes To The Financial Statements. The Notes provide additional information that is essential to a full
understanding of the data provided in the government-wide and fund financial statements. The Notes to
the Financial Statements can be found on pages 47-85 of this report.
12
Government-Wide Financial Analysis
As noted earlier, net position over time may serve as a useful indicator of the City’s financial position. As
of September 30, 2022, the City’s assets and deferred outflows of resources exceeded liabilities and
deferred inflows of resources by $739,804,186 (net position), at the close of the most recent fiscal year.
The largest portion of the City’s net position, $522,021,593 reflects its investment in capital assets (land and
improvements, building, infrastructure, machinery and equipment net of accumulated depreciation); less
any related debt used to acquire those assets that is still outstanding. The City uses these assets to provide
services to its citizens; consequently, these assets are not available for future spending. Although the City
reports its capital assets net of related debt, the resources needed to repay this debt must be provided
from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.
Governmental Activities net position increased by $38,449,409. This can be largely attributed to higher
levels of sales tax revenues received by the City which were due to sharp inclines in inflation and
increased economic activity within the City. This increased economic activity also spurred higher levels
of development in the City which is reflected in the increases in charges for services, primarily license and
permit revenue. Additionally, there was a large increase in operating grants and contributions related to
the receipt of American Rescue Plan Act (ARPA) funding.
Business-type Activities net position increased by $8,689,092. The majority of this change can be attributed
to an increase demand for water as the region experienced significantly less rainfall than average for FY
2022.
The following analysis highlights the net position as of September 30, 2022:
Governmental Business-Type 2022
Activities Activities T otal
Current and other assets 190,955,229$ 69,996,562$ 260,951,791$
Capital assets 508,388,715 97,474,702 605,863,417
Total assets 699,343,944 167,471,264 866,815,208
Deferred outflows of resources 4,961,219 580,775 5,541,994
Other liabilities 9,782,068 4,646,604 14,428,672
Long-term debt
outstanding 79,872,374 29,013,008 108,885,382
Total liabilities 89,654,442 33,659,612 123,314,054
Deferred inflows of resources 8,402,281 836,681 9,238,962
Net position
Net investment in
capital assets 444,246,656 77,774,937 522,021,593
Restricted-debt service 5,436,574 - 5,436,574
Restricted-other 93,924,011 9,877,167.00 103,801,178
Unrestricted 62,641,199 45,903,642 108,544,841
Total net position 606,248,440$ 133,555,746$ 739,804,186$
13
The following analysis highlights the net position as of September 30, 2021:
Governmental Business-Type 2021
Activities Activities Total
Current and other assets:156,776,182$ 58,951,991$ 215,728,173$
Capital assets 505,260,116 100,879,682 606,139,798
Total assets 662,036,298 159,831,673 821,867,971
Deferred outflows of resources 5,196,854 639,298 5,836,152
Other liabilities 12,097,048 2,764,375 14,861,423
Long-term debt
outstanding 84,047,124 32,256,553 116,303,677
Total liabilities 96,144,172 35,020,928 131,165,100
Deferred inflows of resources 3,289,949 583,389 3,873,338
Net position:
Net investment in
capital assets 432,717,828 77,068,608 509,786,436
Restricted-debt service 5,315,367 - 5,315,367
Restricted-other 34,554,684 - 34,554,684
Unrestricted 95,211,152 47,798,046 143,009,198
Total net position 567,799,031$ 124,866,654$ 692,665,685$ The following analysis highlights the changes in net position for the year ended September 30, 2022:
Governmental Business-Type 2022
Activities Activities Total
Revenues:
Program revenues:
Charges for services 11,524,968$ 37,241,976$ 48,766,944$
Operating grants and
contributions 8,736,294 - 8,736,294
Capital grants and
contributions 2,653,556 1,376,002 4,029,558
General revenues:
Taxes 88,105,225 - 88,105,225
Investment losses (475,934) (171,020) (646,954)
Miscellaneous 804,354 - 804,354
Total revenues 111,348,463 38,446,958 149,795,421
Expenses:
General government 20,685,238 - 20,685,238
Public safety 24,915,801 - 24,915,801
Public works 10,111,585 - 10,111,585
Culture and recreation 16,970,272 - 16,970,272
Interest on long-term debt 1,979,546 - 1,979,546
Water and sewer - 28,397,036 28,397,036
Total expenses 74,662,442 28,397,036 103,059,478
Increase in net position
before transfers 36,686,021 10,049,922 46,735,943
Transfers 1,360,830 (1,360,830)-
Increase in net position 38,046,851 8,689,092 46,735,943
Net position, beginning of year 567,799,031 124,866,654 692,665,685
Cumulative effect of
change in accounting principle 402,558 - 402,558
Net position-End of Year 606,248,440$ 133,555,746$ 739,804,186$
14
The following analysis highlights the changes in net position for the year ended September 30, 2021:
Governmental Business-Type 2021
Activities Activities Total
Revenues
Program revenues:
Charges for services 8,945,731$ 32,071,140$ 41,016,871$
O perating grants and
contributions 894,423 - 894,423
Capital grants and
contributions 5,882,015 3,332,452 9,214,467
General revenues:
Taxes 82,793,407 - 82,793,407
Investment income 101,746 32,272 134,018
Miscellaneous 709,736 - 709,736
Total revenues 99,327,058 35,435,864 134,762,922
Expenses
General government 20,990,841 - 20,990,841
Public safety 23,642,969 - 23,642,969
Public works 9,122,951 - 9,122,951
Culture and recreation 15,367,103 - 15,367,103
Interest on long-term debt 2,076,809 - 2,076,809
Water and sewer - 25,730,741 25,730,741
Total expenses 71,200,673 25,730,741 96,931,414
Increase in net position
before transfers 28,126,385 9,705,123 37,831,508
Transfers 1,284,122 (1,284,122)-
Increase in net position 29,410,507 8,421,001 37,831,508
Net position, beginning of year 538,388,524 116,445,653 654,834,177
Net position-End of Year 567,799,031$ 124,866,654$ 692,665,685$ Financial Analysis of the Governmental Funds
Governmental Funds- The focus of the City of Southlake’s governmental funds is to provide information
on near-term inflows, outflows and balances of spendable resources. Such information is useful in
assessing the City’s financing requirements. In particular, unassigned fund balance may serve as a useful
measure of a government’s net resources available for spending at the end of the fiscal year.
As of the end of the current fiscal year, the City’s governmental funds reported combined fund balances
of $169,456,551. Approximately 8.7% or $14,681,556 constitutes unassigned fund balance, which is
available for spending at the government’s discretion. Other portions of the fund balance are either
nonspendable, restricted, committed or assigned to indicate that it is (1) not in spendable form, $401,529;
(2) restricted for particular purposes, $99,675,596; (3) committed for particular purposes, $1,224,764; or
(4) assigned for particular purposes, $53,473,106.
The General Fund is the chief operating fund of the City. At the end of the current fiscal year, unassigned
fund balance of the General Fund was $14,681,556. As a measure of the General Fund’s liquidity, it may
be useful to compare both the unassigned fund balance and total fund balance to total fund
expenditures. Unassigned fund balance represents 39.0% of total General Fund expenditures, while total
fund balance represents 130.6 % of total General Fund expenditures.
The fund balance of the General fund increased $5,387,860 during the current fiscal year. This net increase
was the result of several factors including (1) as previously mentioned, sales tax and license and permits
revenues increased significantly due to economic growth and inflation spikes, which produced an
increase in revenues of $3,569,892 in the General Fund; (2) police and fire services saw a significant
decline in expenditures, $6,280,176, as public safety related costs were allocated to the ARPA grant
funding received by the City; and (3) transfers out to other funds increased by $11,913,170 primarily to
fund capital projects.
15
The General Obligation Debt Service Fund has a fund balance of $3,287,396, all of which is restricted for
the payment of debt service. The fund balance increased during the year by $176,857. This increase was
expected as reserves, collections, and future debt service requirements are all considered in the
determination of tax rates.
The fund balance in the General Capital Projects Funds ended the year at $45,838,424, an increase of
$15,676,795. This increase can be attributed to the issuance of $8,595,000 of certificates of obligation and
interfund transfers of $15,368,170, which were made available to fund various capital projects for
the City.
The Southlake Parks Development Corporation Special Revenue fund balance increased by $1,852,991
primarily due to increases in sales tax revenue of $1,361,062. As previously noted, this sales tax revenue
increase was due to higher inflation and economic activity.
The Tax Increment Financing District fund balance increased by $1,022,077, primarily due to decreased
expenditures from capital outlays. The Community Enhancement Development Corporation Special
Revenue Fund balance increased $4,039,814, due to increased sales taxes and charges for services
revenues related to higher inflation and economic activity.
Financial Analysis of the Proprietary Funds
The City’s proprietary funds provide the same type of information found in the government-wide financial
statements, but in more detail.
Unrestricted net position reported in the Proprietary Funds were: $45,903,642 in the Water and Sewer Fund
and $10,173,848 in the Vehicle and Equipment Replacement Fund. Total net position in the Water and
Sewer Fund increased by $8,689,092 while the Vehicle and Equipment Replacement Fund net position
increased by $1,700,307. Increases in demand for water due to significantly lower than average rainfall
is the primary reason for the respective change in the Water and Sewer Fund net position.
General Fund Budgetary Highlights
The City made revisions to the original budget approved by the City Council. Management’s estimate
of the General Fund’s budgeted revenues increased $5,152,968 or 10.3% from original budget based on
year-to-date experience. Actual revenues exceeded budget by $2,008,782 primarily due to municipal
sales and mixed beverage taxes exceeding budget by $1,332,204. Actual expenditures were $3,991,975
less than budgeted due to costs savings realized by all departments.
Capital Assets and Debt Administration
Capital Assets - The City’s investment in capital assets for its governmental and business-type activities as
of September 30, 2022 amount to $605,863,417 (net of accumulated depreciation). This investment in
capital assets includes land, buildings, improvements, machinery and equipment, infrastructure and
construction in progress.
The City has elected to use the modified approach for its street system in lieu of the depreciation method.
An up-to-date inventory of these infrastructure assets was performed and the annual costs to maintain
and preserve these assets was established and disclosed through administrative policy. The current
condition level of the street system meets the target condition level established by the City. There were
no significant changes in the condition levels of infrastructure assets, and the differences between the
estimated amounts necessary to maintain and preserve the street system at target condition levels and
the actual amount of expense incurred for that purpose for 2022 was not material. Major capital projects
completed during the current year included the following:
• N. White Chapel Blvd., Emerald to Highland
• FM 1938 Utility Relocations
• Lake Carillon Erosion Control project
16
Governmental Business-Type 2022
Activities Activities Total
Land and improvements 112,488,586$ 21,033,596$ 133,522,182$
Buildings and improvements 109,721,666 137,961 109,859,627
Improvements - 74,823,256 74,823,256
Infrastructure 265,262,406 - 265,262,406
Machinery and equipment 10,537,317 65,216 10,602,533
Right to use leased assets 333,639 - 333,639
Construction in Progress 10,045,101 1,414,673 11,459,774
Total 508,388,715$ 97,474,702$ 605,863,417$
Governmental Business-Type 2021
Activities Activities Total
Land and improvements 114,028,157$ 21,009,675$ 135,037,832$
Buildings and improvements 113,071,566 168,279 113,239,845
Improvements - 79,981,172 79,981,172
Infrastructure 250,632,439 - 250,632,439
Machinery and equipment 9,785,083 141,372 9,926,455
Right to use leased assets, as restated 452,021 - 452,021
Construction in Progress 17,742,871 579,184 18,322,055
Total 505,712,137$ 101,879,682$ 607,591,819$ Additional information on the City’s capital assets can be found in Note 4 on pages 66-67 of this report.
Long-term Debt- At the end of the current fiscal year, the governmental activities had $74,015,056 total
bonds outstanding which were issued to finance capital improvements for roadway, parks and
recreation, public building and infrastructure. The business-type activities had $28,512,757 of total bonds
outstanding which were issued to finance projects to increase capacity of the utility system.
Governmental Business-Type 2022
Activities Activities Total
Bonds payable 74,015,056$ 28,512,757$ 102,527,813$
Total OPEB liability for SDBF 1,059,723 82,972 1,142,695
Net pension liability 1,332,735 300,064 1,632,799
Financed purchase liabilities 405,368 - 405,368
Other lease liabilities 338,051 - 338,051
Compensated absences 2,721,441 117,215 2,838,656
Total 79,872,374$ 29,013,008$ 108,885,382$
Governmental Business-Type 2021
Activities Activities Total
Bonds payable 73,797,108$ 31,133,829$ 104,930,937$
Total OPEB liability for SDBF 978,660 77,178 1,055,838
Net pension liability 7,732,031 757,402 8,489,433
Other lease liabilities, as restated 452,688 - 452,688
Compensated absences 1,539,325 87,370 1,626,695
Total 84,499,812$ 32,055,779$ 116,555,591$
The City takes it debt obligation very seriously. Several years ago, the City Council working with City staff
set goals to reduce the debt as percentage of assessed valuation over the total long term debt. As you
can see in the figure below, the City has reduced the percentage from 3.01% in 2003 to 0.22% in 2022,
during a time of growth for the City. The line that you see on this chart is a graphic illustration of one of
the reasons why two bond rating agencies have rated Southlake’s bonds “AAA”.
17
The City has been able to effectively manage its debt during a period of growth using cash to partially
offset borrowing needs. Additionally, managing debt amortization has been a tool used to reduce
borrowing costs.
The City’s bonds are rated “AAA” by Standard and Poor’s and Fitch Ratings. The City is permitted by
Article XI, Section 5, of the State of Texas Constitution to levy taxes up to $2.50 per $100 of assessed
valuation for general governmental services including the payment of principal and interest on general
obligation long-term debt.
Additional information on the City’s long-term debt can be found in Note 5 on pages 67-72 of this report.
Economic Factors and Next Year’s Budgets and Rates
The State of Texas, by constitution, does not have a personal income tax and therefore the State operates
primarily using sales and gasoline taxes. Local governments primarily rely on property and sales taxes and
fees to fund their government activities.
While property taxes are important to the City, they represent 37.5% of total governmental revenue. Sales
tax has grown to the largest governmental resource representing 39.6% of total governmental revenue.
The City monitors all of its resources and determines the need for program adjustment or fee increases
accordingly.
18
The FY 2023 adopted budget reduced the City’s property tax rate from $0.39 to $0.36 per $100 net taxable
valuation. The City’s net taxable value increased by 10 percent as demand for housing in the DFW market
has continued to push values higher and higher over the last few years. As an element of the City’s tax
relief initiative the homestead exemption was held at the maximum level of 20%. The estimate of the
FY 2023 tax roll is based on the certified roll as provided by the Tarrant Appraisal District (TAD) in July. The
assumed collection rate is 100 percent.
Requests for Information
This financial report is designed to provide a general overview of the City of Southlake’s finances for all
those with an interest in the government’s finances. Questions concerning any of the information
provided in this report or requests for additional financial information should be addressed to the Office
of the Chief Financial Officer, 1400 Main Street, 4th Floor Finance Department, Southlake, Texas 76092.
19
Basic Financial Statements
20
21
Government-Wide Financial Statements
City of Southlake, Texas Exhibit 1
Statement of Net Position
September 30, 2022
The Notes to Financial Statements are an integral part of this statement.
22
GOVERNMENTAL BUSINESS-TYPE
ACTIVITIES ACTIVITIES TOTAL
ASSETS
Cash and investments 177,023,007$ 44,442,878$ 221,465,885$
Receivables (net of allowance for uncollectibles)9,519,899 6,077,370 15,597,269
Prepaid items 380,512 - 380,512
Inventories 21,017 - 21,017
Restricted assets
Cash and cash equivalents 3,279,684 19,152,552 22,432,236
Restricted cash for customer deposits - 323,762 323,762
Receivables 13,703 - 13,703
OPEB asset 717,407 - 717,407
Capital assets:
Not being depreciated/amortized 339,360,501 22,448,269 361,808,770
Net of depreciation/amortization 169,028,214 75,026,433 244,054,647
Total assets 699,343,944 167,471,264 866,815,208
Deferred loss on refunding 969,501 297,694 1,267,195
Deferred outflows - TMRS pension 3,278,401 265,166 3,543,567
Deferred outflows - TMRS OPEB 239,006 17,915 256,921
Deferred outflows - OPEB Health 474,311 - 474,311
Total deferred outflows of resources 4,961,219 580,775 5,541,994
Accounts payable 5,505,327 3,602,467 9,107,794
Accrued liabilities 1,235,348 311,189 1,546,537
Accrued interest payable - 116,356 116,356
Retainage payable 920,965 100,365 1,021,330
Deposits payable 639,361 - 639,361
Unearned revenue 1,160,065 192,465 1,352,530
Liabilities payable from restricted assets
Accrued interest 321,002 - 321,002
Customer meter deposits - 323,762 323,762
Non-current liabilities:
Due within one year 11,761,551 2,535,020 14,296,571
Due in more than one year 68,110,823 26,477,988 94,588,811
Total liabilities 89,654,442 33,659,612 123,314,054
Deferred gain on refunding 90,001 331,162 421,163
Deferred inflows - leases 706,608 - 706,608
Deferred inflows - TMRS pension 6,976,554 499,373 7,475,927
Deferred inflows - TMRS OPEB 82,178 6,146 88,324
Deferred inflows - OPEB Health 546,940 - 546,940
Total deferred inflows of resources 8,402,281 836,681 9,238,962
NET POSITION
Net investment in capital assets 444,246,656 77,774,937 522,021,593
Restricted for
Debt service 5,436,574 - 5,436,574
Capital projects 26,395,656 26,395,656
Municipal court 835,268 - 835,268
Reinvestment zone 6,663,970 - 6,663,970
Police 7,791,993 7,791,993
Parks and recreation 47,632,465 - 47,632,465
Library 14,604 14,604
Storm water 1,936,358 - 1,936,358
Promotion of culture and tourism 2,653,697 - 2,653,697
Impact fees - 9,877,167 9,877,167
Unrestricted 62,641,199 45,903,642 108,544,841
TOTAL NET POSITION 606,248,440$ 133,555,746$ 739,804,186$
PRIMARY GOVERNMENT
LIABILITIES
DEFERRED OUTFLOWS OF RESOURCES
DEFERRED INFLOWS OF RESOURCES
City of Southlake, Texas Exhibit 2
Statement of Activities
For the Year Ended September 30, 2022
The Notes to Financial Statements are an integral part of this statement.
23
Charges for Operating Grants Capital Grants Governmental Business - Type
Expenses Services and Contributions and Contributions Activities Activities TOTAL
PRIMARY GOVERNMENT:
Governmental Activities:
General government 20,685,238$ 1,957,434$ 220$ -$ (18,727,584)$ -$ (18,727,584)$
Public safety 24,915,801 803,365 8,642,530 - (15,469,906) - (15,469,906)
Public works 10,111,585 4,287,138 - 2,498,556 (3,325,891) - (3,325,891)
Culture and recreation 16,970,272 4,477,031 93,544 155,000 (12,244,697) - (12,244,697)
Interest on long-term debt 1,979,546 - - - (1,979,546) - (1,979,546)
Total governmental activities 74,662,442 11,524,968 8,736,294 2,653,556 (51,747,624) - (51,747,624)
Business-type Activities:
Water and sewer 28,397,036 37,241,976 - 1,376,002 - 10,220,942 10,220,942
Total business-type activities 28,397,036 37,241,976 - 1,376,002 - 10,220,942 10,220,942
TOTAL PRIMARY GOVERNMENT 103,059,478$ 48,766,944$ 8,736,294$ 4,029,558$ (51,747,624) 10,220,942 (41,526,682)
General revenues and transfers:
General revenues
Property taxes, levied for general purposes 41,392,861 - 41,392,861
Sales taxes 43,723,490 - 43,723,490
Franchise taxes 2,988,874 - 2,988,874
Investment losses (475,934) (171,020) (646,954)
Miscellaneous 804,354 - 804,354
Transfers 1,360,830 (1,360,830) -
Total general revenues and transfers 89,794,475 (1,531,850) 88,262,625
Change in net position 38,046,851 8,689,092 46,735,943
Net position, beginning of year 567,799,031 124,866,654 692,665,685
Cumulative effect of change in accounting principle 402,558 - 402,558
Net position, beginning of year-- as restated 568,201,589 124,866,654 693,068,243
NET POSITION, end of year 606,248,440$ 133,555,746$ 739,804,186$
Changes in Net Position
Net (Expense) Revenue and
Primary Government
Program Revenues
Functions/Program Activities
24
25
Fund Financial Statements
26
27
Governmental Funds
Financial Statements
City of Southlake, Texas
Balance Sheet
Governmental Funds
September 30, 2022
The Notes to Financial Statements are an integral part of this statement.
28
GENERAL
OBLIGATION GENERAL
DEBT CAPITAL
GENERAL SERVICE PROJECTS
ASSETS
Cash and investments 49,415,278$ 3,279,684$ 48,803,791$
Receivables, net of allowances for uncollectibles:
Ad valorem taxes 52,261 10,453 -
Franchise taxes 741,575 - -
Sales taxes 3,392,571 - -
Interest 40,567 3,053 45,471
Leases 870,124 - -
Other 93,444 197 48,290
Inventories 21,017 - -
Prepaid items 380,512 - -
TOTAL ASSETS 55,007,349$ 3,293,387$ 48,897,552$
LIABILITIES, DEFERRED INFLOWS OF RESOURCES,
AND FUND BALANCES
LIABILITIES
Accounts payable 3,214,988$ -$ 1,683,393$
Accrued liabilities 1,037,187 - -
Retainage payable - - 806,639
Deposits payable 57,005 - 520,806
Unearned revenue 660,546 - -
TOTAL LIABILITIES 4,969,726 - 3,010,838
DEFERRED INFLOWS OF RESOURCES
Unavailable resources 383,966 5,991 48,290
Deferred inflows- leases 540,234 - -
TOTAL DEFERRED INFLOWS OF RESOURCES 924,200 5,991 48,290
FUND BALANCES
Nonspendable 401,529 - -
Restricted - 3,287,396 26,395,656
Committed - - -
Assigned 34,030,338 - 19,442,768
Unassigned 14,681,556 - -
TOTAL FUND BALANCES 49,113,423 3,287,396 45,838,424
TOTAL LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES 55,007,349$ 3,293,387$ 48,897,552$
Exhibit 3
29
COMMUNITY
ENHANCEMENT
SOUTHLAKE TAX DEVELOPMENT
PARKS INCREMENT CORPORATION NON-MAJOR TOTAL
DEVELOPMENT FINANCING SPECIAL GOVERNMENTAL GOVERNMENTAL
CORPORATION DISTRICT REVENUE FUNDS FUNDS
12,446,937$ 6,676,864$ 15,963,057$ 33,552,419$ 170,138,030$
- - - - 62,714
- - - - 741,575
1,681,020 - 1,245,200 651,274 6,970,065
12,043 6,215 14,940 31,236 153,525
188,613 - - - 1,058,737
- 490 174,939 220,437 537,797
- - - - 21,017
- - - - 380,512
14,328,613$ 6,683,569$ 17,398,136$ 34,455,366$ 180,063,972$
133,889$ 4,668$ 76,558$ 391,831$ 5,505,327$
11,911 14,931 92,084 79,235 1,235,348
- - - 114,326 920,965
- - 61,550 - 639,361
- - 499,519 - 1,160,065
145,800 19,599 729,711 585,392 9,461,066
- - - 1,500 439,747
166,374 - - - 706,608
166,374 - - 1,500 1,146,355
- - - - 401,529
14,016,439 6,663,970 16,668,425 32,643,710 99,675,596
- - - 1,224,764 1,224,764
- - - - 53,473,106
- - - - 14,681,556
14,016,439 6,663,970 16,668,425 33,868,474 169,456,551
14,328,613$ 6,683,569$ 17,398,136$ 34,455,366$ 180,063,972$
City of Southlake, Texas Exhibit 4
Reconciliation of the Governmental Funds
Balance Sheet to the Statement of Net Position
For the Fiscal Year Ended September 30, 2022
The Notes to Financial Statements are an integral part of this statement.
30
Total fund balances - governmental funds 169,456,551$
Amounts reported for governmental activities in the statement of net position are different because:
Capital assets used in governmental activities are not current financial resources and therefore, are not
503,066,727
Interest payable on long-term debt does not require current financial resources; therefore, interest
(321,002)
Internal service funds are used by management to charge the cost of certain activities, such as fleet
15,495,836
OPEB asset has not been included in the governmental fund financial statements, as these assets do
not represent current financial resources.717,407
Revenues earned but not available within sixty days of the year end are not recognized as revenue on
the fund financial statements.439,747
For debt refundings, the difference between the acquisition price and net carrying amount of the debt
879,500
Deferred outflows of resources related to the City's pension and OPEB liabilities result in an increase in
net position in the government-wide financial statements.3,991,720
Deferred inflows of resources related to the City's pension and OPEB liabilities result in a decrease in
net position in the government-wide financial statements.(7,605,672)
Long-term liabilities, including bonds payable, are not due and payable in the current period and
therefore are not reported in the fund financial statements.(79,872,374)
NET POSITION OF GOVERNMENTAL ACTIVITIES 606,248,440$
reported in the governmental funds balance sheet (Less $5,321,988 in assets allocated to
governmental activities from the internal service fund).
payable is not reported as a liability in the governmental funds balance sheet.
management, to individual funds. This amount represents the assets less the liabilities of the internal
service fund allocated to governmental activities.
has been deferred and amortized in the government-wide financial statements. This amount is the net
of deferred losses, $969,501 and gains ($90,001) on refundings.
31
City of Southlake, Texas
Statement of Revenues, Expenditures, and
Changes in Fund Balances
Governmental Funds
For the Year Ended September 30, 2022
The Notes to Financial Statements are an integral part of this statement.
32
GENERAL
OBLIGATION GENERAL
DEBT CAPITAL
GENERAL SERVICE PROJECTS
REVENUES
Ad valorem taxes, penalties and interest 26,713,569$ 5,372,684$ -$
Franchise taxes 2,988,874 - -
Municipal sales and mixed beverage taxes 21,047,369 - -
Licenses, permits and fees 2,855,591 - -
Charges for services 1,997,797 - -
Fines and forfeitures 973,523 - -
Intergovernmental revenue 574,254 - 1,320,076
Capital recovery fees - - 773,745
Investment income (losses)(162,864) (17,970) (98,724)
Contributions 40,986 - 6,070
Miscellaneous 191,266 - -
Total revenues 57,220,365 5,354,714 2,001,167
EXPENDITURES
Current
General government
City secretary/mayor 587,120 - -
City manager's office 1,085,236 - -
Human resources 874,724 - -
Support services 4,247,552 - -
Economic development 361,298 - -
Finance 1,607,797 - -
Municipal court 757,460 - -
Teen court 161,550 - -
Information technology 3,172,551 - -
Public safety
Police services 4,132,359 - -
Fire services 6,705,764 - -
Public safety support 1,494,011 - -
Public works
Public works administration 1,932,212 - -
Streets and drainage 1,006,161 - 2,949,647
Planning 1,184,574 - -
Building inspection 1,114,921 - -
Cultural and recreation
Community services 1,329,819 - -
Parks and recreation 3,855,677 - -
Library services 917,538 - -
Promotion of tourism - - -
Intergovernmental - - -
Capital outlay 945,293 - 7,944,514
Debt service:
Principal retirement 114,636 4,675,306 -
Interest and fiscal charges 11,638 676,410 131,146 Total expenditures 37,599,891 5,351,716 11,025,307
Excess (deficiency) of revenues
over (under) expenditures 19,620,474 2,998 (9,024,140)
OTHER FINANCING SOURCES (USES)
Issuance of long-term debt - - 8,595,000
Issuance of financed purchases - - -
Premium on issuance of long-term debt - - 737,765
Sale of capital assets 52,124 - -
Transfers from other funds 2,635,219 173,859 15,368,170
Transfers to other funds (17,288,170) - -
Total other financing sources (uses)(14,600,827)173,859 24,700,935
Net change in fund balances 5,019,647 176,857 15,676,795 Fund balances, beginning of year 43,725,563 3,110,539 30,161,629
Cumulative effect of change in accounting principle 368,213 - -
Fund balances, beginning of year - as restated 44,093,776 3,110,539 30,161,629
FUND BALANCES, END OF YEAR 49,113,423$ 3,287,396$ 45,838,424$
EXHIBIT 5
33
COMMUNITY
ENHANCEMENT
SOUTHLAKE TAX DEVELOPMENT
PARKS INCREMENT CORPORATION NON-MAJOR TOTAL
DEVELOPMENT FINANCING SPECIAL GOVERNMENTAL GOVERNMENTAL
CORPORATION DISTRICT REVENUE FUNDS FUNDS
-$ 9,343,619$ -$ -$ 41,429,872$
- - - - 2,988,874
10,610,993 - 7,859,995 4,205,133 43,723,490
- - - 215,837 3,071,428
- - 3,512,532 1,594,554 7,104,883
- - - 239,688 1,213,211
- - - 8,080,465 9,974,795
- - - - 773,745
(11,760) (12,950) (31,727) (112,122) (448,117)
- - 4,982 190,607 242,645
133,099 - 183 - 324,548
10,732,332 9,330,669 11,345,965 14,414,162 110,399,374
- - - - 587,120
- - - - 1,085,236
- - - - 874,724
- 586,380 - - 4,833,932
- - - - 361,298
- - - - 1,607,797
- - - 51,926 809,386
- - - - 161,550
- - - - 3,172,551
- 372,628 - 1,957,519 6,462,506
- - - 8,057,625 14,763,389
- - - - 1,494,011
- - - - 1,932,212
- - - 673,981 4,629,789
- - - - 1,184,574
- - - - 1,114,921
- - - - 1,329,819
1,657,795 - 4,426,956 159,569 10,099,997
- - - 7,976 925,514
- - - 762,948 762,948
- 5,934,584 - - 5,934,584
62,404 1,415,000 - 1,233,951 11,601,162
- - - 3,855,795 8,645,737
- - - 1,502,644 2,321,838
1,720,199 8,308,592 4,426,956 18,263,934 86,696,595
9,012,133 1,022,077 6,919,009 (3,849,772) 23,702,779
- - - - 8,595,000
- - - 514,162 514,162
- - - - 737,765
- - - - 52,124
- - - 10,397,852 28,575,100
(7,195,113) - (2,879,195) (2,351,792) (29,714,270)
(7,195,113) - (2,879,195) 8,560,222 8,759,881
1,817,020 1,022,077 4,039,814 4,710,450 32,462,660 12,163,448 5,641,893 12,628,611 29,158,024 136,589,707
35,971 - - - 404,184
12,199,419 5,641,893 12,628,611 29,158,024 136,993,891
14,016,439$ 6,663,970$ 16,668,425$ 33,868,474$ 169,456,551$
City of Southlake, Texas Exhibit 6
Reconciliation of the Statement of Revenues,
Expenditures and Changes in Fund Balances of
Governmental Funds to the Statement of Activities
For the Year Ended September 30, 2022
The Notes to Financial Statements are an integral part of this statement.
34
Net change in fund balances - total governmental funds 32,462,660$
Amounts reported for governmental activities in the statement of activities
are different because:
Governmental funds report capital outlays as expenditures. However, in the statement of activities,
11,601,162
Depreciation and amortization expense on capital assets are reported in the statement of activities
(8,759,213)
The issuance of long-term debt (e.g. bonds) provides current financial resources to governmental
Issuance of bonds (8,595,000)$
Bond premiums (737,765)
Issuance of financed purchases (514,162)
Principal payments on debt 8,422,306
Principal payments on financed purchases and other lease liabilities 223,431
Amortization of premiums and deferred gains and losses 317,486
(883,704)
The changes in net pension liability and deferred outflows/inflows from TMRS are not reported in the
2,411,821
The changes in total OPEB liability and deferred outflows/inflows from TMRS are not reported in
(103,477)
The changes in net OPEB liability and deferred outflows/inflows for healthcare are not reported in
208,661
Current year changes in the long-term liability for compensated absences do not require the use of
current financial resources; and therefore, are not reported as expenditures in governmental funds.(1,182,115)
Current year changes in accrued interest payable do not require the use of current financial
resources; and therefore, are not reported as expenditures in governmental funds.(28,280)
Internal service funds are used by management to charge the costs of certain activities, such as
1,700,307
Governmental funds do not recognize assets contributed by developers. However, in the statement
398,665
Loss on disposal of capital assets results in a decrease in net position, but the net effect is not
(36,064)
Certain revenues in the government-wide statement of activities that do not provide current financial
256,428
Change in net position of governmental activities 38,046,851$
the cost of those assets is allocated over their estimated useful lives and reported as depreciation
and amortization expense. This is the amount of capital assets additions recorded in the current
period (does not include additions of $564,186 allocated from internal service fund).
but does not require the use of current financial resources. Therefore, depreciation and amortization
expenses are not reported as expenditures in the governmental funds. (Does not include $1,078,667
allocated from internal service fund).
funds, while the repayment of the principal of long-term debt consumes the current financial
resources of governmental funds. Neither transaction, however, has any effect on net position.
Also, governmental funds report the effect of premiums, discounts, and similar items when debt
is first issued, whereas the amounts are deferred and amortized in the statement of activities. This
amount is the net effect of the following items:
governmental funds. This is the net effect of the decrease in the net pension liability, $6,399,296,
increase in deferred inflows of resources, ($4,287,956), and increase in deferred outflows of resources,
$300,481.
the governmental funds. This is the net effect of the increase in the total SDBF OPEB liability ($81,063),
increase in deferred inflows of resources, ($4,038), and decrease in deferred outflows of resources,
($18,376).
the governmental funds. This is the net effect of the decrease in the total healthcare OPEB liability
(now a net OPEB asset), $465,106, increase in deferred inflows of resources, ($127,098), and decrease
in deferred outflows of resources, ($129,347).
fleet management, to individual funds. The net income of the internal service fund is allocated
entirely to governmental activities.
of activities, the fair value of those assets is recognized as revenue, then allocated over their
estimated useful lives and reported as depreciation expense.
reported in governmental funds (does not include disposals of $37,512 allocated from internal service
fund).
resources are not reported as revenue in the governmental funds.
35
Proprietary Funds
Financial Statements
36
City of Southlake, Texas Exhibit 7
Statement of Net Position
Proprietary Funds
September 30, 2022
The Notes to Financial Statements are an integral part of this statement.
37
BUSINESS-TYPE GOVERNMENTAL
ACTIVITIES ACTIVITIES
WATER AND SEWER VEHICLE AND EQUIPMENT
ENTERPRISE REPLACEMENT INTERNAL
FUND SERVICE FUND
ASSETS
CURRENT ASSETS
Cash and investments 44,442,878$ 10,164,661$
Receivables, net of allowance for uncollectibles:
Billed and unbilled trade accounts 6,017,780 -
Interest 59,590 9,187
Restricted assets:
Cash restricted for capital 19,152,552 -
Restricted cash for customer deposits 323,762 -
Total current assets 69,996,562 10,173,848
NON-CURRENT ASSETS
Capital assets:
Land 21,033,596 -
Buildings and improvements 935,501 -
Distribution system 153,926,558 -
Equipment 2,498,009 703,246
Vehicles 511,817 11,143,039
Capacity rights 9,190,988 -
Construction in progress 1,414,673 -
Total capital assets 189,511,142 11,846,285
Less: accumulated depreciation (92,036,440) (6,524,297)
Capital assets, net of accumulated depreciation 97,474,702 5,321,988
Total non-current assets 97,474,702 5,321,988
TOTAL ASSETS 167,471,264$ 15,495,836$
DEFERRED OUTFLOW OF RESOURCES
Deferred loss on refunding 297,694$ -$
Deferred outflows - TMRS pension 265,166 -
Deferred outflows - TMRS OPEB 17,915 -
Total deferred outflows of resources 580,775 -
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND NET POSITION
CURRENT LIABILITIES
Accounts payable 3,602,467 -
Accrued liabilities 311,189 -
Retainage payable 100,365 -
Accrued interest 116,356 -
Unearned revenue 192,465 -
Current portion of general obligation debt 2,439,168 -
Current portion of compensated absences 95,852 -
Payable from restricted assets:
Customer meter deposits 323,762 -
Total current liabilities 7,181,624 -
NON-CURRENT LIABILITIES
General obligation debt 26,073,589 -
Compensated absences 21,363 -
Net pension liability 300,064 -
Total OPEB liability 82,972 -
Total non-current liabilities 26,477,988 -
TOTAL LIABILITIES 33,659,612 -
DEFERRED INFLOW OF RESOURCES
Deferred gain on refunding 331,162 -
Deferred inflows - TMRS pension 499,373 -
Deferred inflows - TMRS OPEB 6,146 -
Total deferred inflows of resources 836,681 -
NET POSITION
Net investment in capital assets 77,774,937 5,321,988
Restricted for impact fees 9,877,167 -
Unrestricted 45,903,642 10,173,848
TOTAL NET POSITION 133,555,746$ 15,495,836$
City of Southlake, Texas Exhibit 8
Statement of Revenues, Expenses
and Changes in Net Position
Proprietary Funds
For the Year Ended September 30, 2022
The Notes to Financial Statements are an integral part of this statement.
38
BUSINESS-TYPE GOVERNMENTAL
ACTIVITIES ACTIVITIES
WATER AND SEWER VEHICLE AND EQUIPMENT
ENTERPRISE REPLACEMENT INTERNAL
FUND SERVICE FUND
OPERATING REVENUES
Charges for sales and services:
Water, sewer and garbage 37,150,182$ -$
Service charges 91,794 -
Total operating revenues 37,241,976 -
OPERATING EXPENSES:
Personnel services 2,585,073 -
Contractual services 2,240,922 -
Supplies 634,120 15,984
Utilities 11,636,591 -
Administrative 12,483 -
Maintenance 5,382,610 -
Professional benefits 17,668 -
Depreciation and amortization 5,158,368 1,078,667
Total operating expenses 27,667,835 1,094,651
OPERATING INCOME (LOSS)9,574,141 (1,094,651)
NON-OPERATING REVENUES (EXPENSES)
Gain on disposal of capital assets - 322,775
Investment income (losses)(171,020)(27,817)
Interest expense and bond administration expense (729,201)-
Total non-operating revenues (expenses)(900,221)294,958
INCOME (LOSS) BEFORE CAPITAL
CONTRIBUTIONS AND TRANSFERS 8,673,920 (799,693)
CAPITAL CONTRIBUTIONS AND TRANSFERS
Capital contributions - property owners 798,472 -
Contributions - impact fees 577,530 -
Transfers from other funds - 2,500,000
Transfers to other funds (1,360,830) -
Total capital contributions and transfers 15,172 2,500,000
Change in net position 8,689,092 1,700,307
Net postition, beginning of year 124,866,654 13,795,529
NET POSITION, END OF YEAR 133,555,746$ 15,495,836$
City of Southlake, Texas Exhibit 9
Statement of Cash Flows
Proprietary Funds
For the Year Ended September 30, 2022
The Notes to Financial Statements are an integral part of this statement.
39
BUSINESS-TYPE GOVERNMENTAL
ACTIVITIES ACTIVITIES
WATER AND SEWER VEHICLE AND EQUIPMENT
ENTERPRISE REPLACEMENT INTERNAL
FUND SERVICE FUND
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers and users 36,692,854$ -$
Cash payments to suppliers (18,308,481) (15,984)
Cash payments to employees (2,720,198) -
Net cash provided by (used in) operating activities 15,664,175 (15,984)
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition and construction of capital assets (908,267) (564,186)
Principal payments on bonds (2,352,694) -
Interest paid on capital debt (983,739) -
Proceeds from disposal of capital assets - 336,266
Contributions - impact fees 577,530 -
Net cash used in capital and related
financing activities (3,667,170) (227,920)
CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES
Transfers from other funds - 2,500,000
Transfers to other funds (1,360,830) -
Net cash provided by (used in) non-capital
financing activities (1,360,830) 2,500,000
CASH FLOWS FROM INVESTING ACTIVITIES
Net investment losses (171,020) (27,817)
Interest received 14,830 1,860
Net cash used in investing activities (156,190) (25,957)
Net change in cash and cash equivalents 10,479,985 2,230,139
CASH AND CASH EQUIVALENTS, beginning of year 53,439,207 7,934,522
CASH AND CASH EQUIVALENTS, end of year 63,919,192$ 10,164,661$
RECONCILIATION TO STATEMENT OF NET POSITION
Cash and cash equivalents 44,442,878$ 10,164,661$
Cash restricted for capital 19,152,552 -
Restricted cash for customer deposits 323,762 -
Total cash and cash equivalents 63,919,192$ 10,164,661$
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH
PROVIDED BY (USED IN) OPERATING ACTIVITIES
Operating income (loss)9,574,141$ (1,094,651)$
Adjustments to reconcile operating income (loss) to net cash
provided by (used in) operating activities:
Depreciation and amortization 5,158,368 1,078,667
Decrease (increase) in assets and deferred outflows
of resources
Receivables (579,416) -
Deferred outflows of resources - pensions and OPEB (20,161) -
Increase (decrease) in liabilities and deferred outflows
of resources
Payables and accruals 1,645,758 -
Customer deposits 38,603 -
Deferred inflows of resources - pensions and OPEB 306,735 -
Decrease in pension and OPEB liabilities (451,544) -
Unearned revenue (8,309) -
Net cash provided by (used in) operating activities 15,664,175$ (15,984)$
NON-CASH CAPITAL AND RELATED FINANCING:
Contributions of capital assets from developers 798,472$ -$
40
41
Fiduciary Fund
Financial Statements
42
City of Southlake, Texas Exhibit 10
OPEB Liability Trust Fund
Statement of Fiduciary Net Position
December 31, 2021
The Notes to Financial Statements are an integral part of this statement.
43
Trust Fund*
Southlake
OPEB
Liability
ASSETS
Investments 2,550,451$
TOTAL ASSETS 2,550,451$
NET POSITION
Restricted for post employment benefits other
t han pensions 2,550,451$
TOTAL NET POSITION 2,550,451$
*The Southlake Other Post Employment Benefit (OPEB) Liability Trust fund is reported as of
December 31, 2021.
City of Southlake, Texas Exhibit 11
OPEB Liability Trust Fund
Statement of Changes in Fiduciary Net Position
For the Year Ended December 31, 2021
The Notes to Financial Statements are an integral part of this statement.
44
Trust Fund
Southlake
OPEB
Liability
ADDITIONS
Employer contributions 323,319$
Investment earnings, net of unrealized/realized gain/(loss)117,346
TOTAL ADDITIONS 440,665
DEDUCTIONS
Benefit payments 83,319
Administrative expenses 7,918
TOTAL DEDUCTIONS 91,237
Change in net position 349,428
Net postition, beginning of year 2,201,023
NET POSITION - END OF YEAR 2,550,451$
45
Notes to Basic Financial Statements
46
City of Southlake, Texas
Notes to Basic Financial Statements
47
Note 1. Summary of Significant Accounting Policies
General Statement
The City of Southlake (the City) operates under a Home Rule Council – Manager form of government. All
powers of the City are vested in an elected council, which enables local legislation, adopts budgets,
determines policies and appoints the City Manager. The City Manager is responsible for executing the
laws and administering the government of the City.
The accounting and reporting policies of the City relating to the funds included in the accompanying
basic financial statements conform to accounting principles generally accepted in the United States of
America applicable to state and local governments. Generally accepted accounting principles for local
governments include those principles prescribed by the Governmental Accounting Standards Board
(GASB). The more significant accounting policies of the City are described below.
Financial Reporting Entity
The City is governed by an elected mayor and six-member council. The accompanying financial
statements present the government and its component units, entities for which the government is
considered to be financially accountable. The criteria for including legally separate organizations as
component units within the City’s reporting entity are set forth in Section 2100 of GASB’s Codification of
Governmental Accounting and Financial Reporting Standards (GASB Codification).
Blended component units are, in substance, part of the primary government’s operations, even though
they are legally separate entities. Thus, blended component units are appropriately presented as funds
of the primary government.
Based on these criteria, the financial information of the following entities has been blended within the
reporting entity. Individual financial statements are not available for these component units.
Southlake Parks Development Corporation (the Corporation) - The Corporation is a nonprofit industrial
development corporation formed in January 1994 under the Development Corporation Act of 1979. The
Corporation is organized exclusively to act on behalf of the City for the financing, development and
operation of parks and recreation facilities. The affairs of the Corporation are managed by a seven
member board of directors, of which four are members of the City Council. The annual corporate budget
and issuance of debt must be approved by the City Council. Since the Board of the Corporation is
substantively the same as the City Council, the Corporation has been reported as a blended component
unit.
Southlake Community Enhancement and Development Corporation (CEDC) – The CEDC was formed
under the Development Corporation Act of 1979, as amended, Title 12, Subtitle C1 of the Texas Local
Government Code. The CEDC is organized to promote economic development within the City, including
developing, implementing, providing and financing projects including a community entertainment and
recreation center for the City. The CEDC is governed by a seven member board appointed by the City
Council. The annual budget and issuance of debt must be approved by the City Council. Since the
CEDC provides services entirely to the City, it has been reported as a blended component unit.
Southlake Tax Increment Financing Districts (the TIF) – The TIF was formed to finance and make public
improvements, under the authority of the Tax Increment Financing Act. The TIF is governed by a nine
member board of directors consisting of the eight members appointed by the City Council, and one
member appointed by Carroll Independent School District. Since the Board of the TIF is substantively the
same as the City Council; the City has operational responsibility for the TIF and the City receives financial
benefit from the TIF, the TIF has been reported as a blended component unit.
City of Southlake, Texas
Notes to Basic Financial Statements
48
Southlake Crime Control and Prevention District (the District) – The District was formed under Chapter 363
of the Texas Local Government Code, the Crime Control and Prevention Act. The District is organized
exclusively to act on behalf of the City for the financing, development and crime control throughout the
City. The District is governed by a seven member board appointed by the City Council. The annual
budget and issuance of debt must be approved by the City Council. Since the District provides services
entirely to the City, it has been reported as a blended component unit.
Basis of Presentation
The government-wide financial statements (the statement of net position and the statement of activities)
report information on all of the activities of the City, except for fiduciary funds. The effect of interfund
activity, within the governmental and business-type activities columns, has been removed from these
statements. Governmental activities, which normally are supported by taxes and intergovernmental
revenues, are reported separately from business-type activities, which rely to a significant extent on fees
and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given program
are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific
program.
Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit
from goods, services, or privileges provided by a given program and 2) operating or capital grants and
contributions that are restricted to meeting the operational or capital requirements of a particular
program. Taxes and other items not properly included among program revenues are reported instead
as general revenues.
Fund Financial Statements
The City segregates transactions related to certain functions or activities in separate funds in order to aid
financial management and to demonstrate legal compliance. Separate statements are presented for
governmental funds and proprietary funds. These statements present each major fund as a separate
column in the fund financial statements; all non-major funds are aggregated and presented in a single
column.
Governmental funds are those funds through which most governmental functions typically are financed.
The measurement focus of governmental funds is on the sources, uses and balances of current financial
resources.
Governmental Funds
The City reports the following major governmental funds:
General Fund
The General Fund is the general operating fund of the City. It is used to account for all financial
resources not accounted for in other funds. All general tax revenues and other receipts that are not
restricted by law or contractual agreement to some other fund are accounted for in this fund.
General operating expenditures, fixed charges and capital improvement costs that are not paid
through other funds are paid from the General Fund.
City of Southlake, Texas
Notes to Basic Financial Statements
49
General Obligation Debt Service Fund
The General Obligation Debt Service Fund is used to account for the accumulation of financial
resources for the payment of principal, interest and related costs on long-term debt paid primarily
from taxes levied by the City. The fund balance of the General Obligation Debt Service Fund is
restricted exclusively for debt service expenditures.
General Capital Projects Fund
The General Capital Projects Fund is used to account for resources used for the acquisition and/or
construction of capital facilities by the City, except those financed by proprietary funds and not
accounted for by another capital projects fund.
Southlake Parks Development Corporation
The Southlake Parks Development Corporation (“SPDC”) Fund was established to account for the
general operations of the non-profit corporation established to finance, develop and operate park
and recreational facilities. The SPDC is funded primarily through the municipal sales taxes.
Tax Increment Financing District
The Tax Increment Financing (TIF) District Fund was established to account for the general operations
of the TIF, which was formed to finance and make public improvements. The TIF is funded primarily
through the assessment of ad valorem taxes.
Community Enhancement and Development Corporation
The Community Enhancement and Development Corporation (CEDC) Fund was established to
account for the general operations of the non-profit corporation established to finance, develop and
operate a community entertainment and recreation center. The CEDC is funded primarily through
municipal sales taxes and user fees.
Debt Service Funds – The City’s Debt Service Funds are utilized to account for the accumulation of
financial resources for, and the payment of, long-term debt principal, interest, and related costs arising
from the issuance of bonds.
Proprietary Funds
Proprietary Funds are accounted for using the economic resources measurement focus and the accrual
basis of accounting. The accounting objectives are determinations of net income, financial position and
cash flow. All assets, deferred outflows of resources, liabilities, and deferred inflows of resources are
included in the Statement of Net Position.
The City reports the following major proprietary fund:
Water and Sewer Enterprise Fund
The Water and Sewer Enterprise Fund is used to account for the acquisition, operation and
maintenance of a municipal water and sewer utility, supported primarily by user charges to the public.
Additionally, the City reports an Internal Service Fund which is used to account for vehicle and equipment
replacement provided to departments of the City.
City of Southlake, Texas
Notes to Basic Financial Statements
50
Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods in
connection with a proprietary fund’s principal ongoing operations. Operating expenses for the
proprietary funds include the cost of personnel and contractual services, supplies and depreciation on
capital assets. All revenues and expenses not meeting this definition are reported as non-operating
revenues and expenses.
Fiduciary Funds
The City also presents one trust fund, Southlake OPEB Liability Trust Fund. The City’s OPEB Liability Trust Fund
accounts for the funding of post-employment healthcare benefits for retirees of the City and their
dependents which is presented as of December 31, 2021.
Measurement Focus and Basis of Accounting
Measurement focus refers to what is being measured; basis of accounting refers to when revenues and
expenditures are recognized in the accounts and reported in the financial statements. Basis of
accounting relates to the timing of the measurement made, regardless of the measurement focus
applied.
The government-wide statements and fund financial statements for proprietary and fiduciary funds are
reported using the accrual basis of accounting. The government-wide, proprietary fund, and fiduciary
trust fund financial statements are prepared using the economic resources measurement focus. The
economic resources measurement focus means all assets and liabilities (whether current or non-current)
are included in the statement of net position and the operating statements present increases (revenues)
and decreases (expenses) in total net position. Under the accrual basis of accounting, revenues are
recognized when earned, including unbilled water and sewer services which are accrued. Expenses are
recognized at the time the liability is incurred.
Governmental fund financial statements are reported using the current financial resources measurement
focus and are accounted for using the modified accrual basis of accounting. Under the modified accrual
basis of accounting, revenues are recognized when susceptible to accrual; i.e., when they become both
measurable and available.
“Measurable” means the amount of the transaction can be determined and “available” means
collectible within the current period or soon enough thereafter to be used to pay liabilities of the current
period. The City considers all revenues as available if they are collected within 60 days after year end.
Expenditures are recorded when the related fund liability is incurred, except for unmatured interest on
long-term debt which is recognized when due, and certain compensated absences and claims and
judgments which are recognized when the obligations are expected to be liquidated with expendable
available financial resources.
Property taxes, sales taxes, franchise taxes and interest are susceptible to accrual. Other receipts become
measurable and available when cash is received by the City and are recognized as revenue at that time.
City of Southlake, Texas
Notes to Basic Financial Statements
51
Cash, Cash Equivalents and Investments
In accordance with GASB Statement No. 31, the City’s general policy is to report money market
investments and short-term participating interest-earning investment contracts at amortized cost and to
report nonparticipating interest-earning investment contracts using a cost-based measure. However, if
the fair value of an investment is significantly affected by the impairment of the credit standing of the
issuer or by other factors, it is reported at fair value. All other investments are reported at fair value unless
a legal contract exists which guarantees a higher value. The term “short-term” refers to investments, which
have a remaining term of one year or less at the time of purchase. The term “nonparticipating” means
that the investment’s value does not vary with market interest rate changes.
The City’s cash and cash equivalents are defined as cash on hand, cash and pooled investment demand
deposits held with financial institutions, and short-term investments with original maturities of three months
or less from the date of acquisition. Cash and cash equivalents also includes long-term investments with
maturity of greater than one year. The classification of the City’s cash and cash equivalents is reported in
Note 2.
The City pools idle cash from all funds for the purpose of increasing income through coordinated
investment activities. As of September 30, 2022, the investments held by the City had a remaining maturity
of greater than one year from purchase and accordingly are carried at fair value. Interest earnings are
allocated to the respective funds based upon each fund’s relative balance in the pool.
Cash and cash equivalents reported as restricted are restricted for debt service, acquisition and
construction of capital assets, and for utility deposits held by the City.
Property Taxes
The City’s property tax is levied each October 1 on the assessed value listed as of the prior January 1 for
all real and certain personal property located within the City. Appraised values are established by the
Central Appraisal Districts at 100% of estimated market value and certified by the Appraisal Review Board.
The assessed value upon which the 2021 levy was based on was $11,272,064,219. Taxes are due on
October 1 and are delinquent after the following January 31.
The City is permitted by Article XI, Section 5 of the State of Texas Constitution to levy taxes up to $2.50 per
$100 of assessed valuation for general governmental services, including the payment of principal and
interest on general obligation long-term debt. The combined tax rate to finance general governmental
services including the payment of principal and interest on long-term debt for the year ended
September 30, 2022 was 0.390 per $100 of assessed valuation.
In Texas, countywide central appraisal districts are required to assess all property within the appraisal
district on the basis of 100% of its appraised value and are prohibited from applying any assessment ratios.
The value of property within the appraisal district must be reviewed every five years; however, the City
may, at its own expense, require annual reviews of appraised values.
Interfund Receivables and Payables
Activities between funds that are representative of lending/borrowing arrangements outstanding at the
end of the fiscal year are referred to as “due to/from other funds.”
Any residual balances outstanding between the governmental activities and business-type activities are
reported in the government-wide financial statements as “internal balances”.
City of Southlake, Texas
Notes to Basic Financial Statements
52
Transactions between Funds
Interfund services provided and used are accounted for as revenues, expenditures or expenses.
Transactions that constitute reimbursements to a fund for expenditures/expenses initially made from it that
are properly applicable to another fund, are recorded as expenditures/expenses in the reimbursing fund
and as a reduction of expenditures/expenses in the fund reimbursed. All other interfund transactions,
except interfund services provided and used and reimbursements, are recorded as transfers. Interfund
services provided and used are not eliminated in the process of consolidation.
Inventories
Inventories are stated at cost (first-in, first-out) and are determined annually by taking a physical inventory.
Inventory in the general fund consists of gasoline held for consumption and is reported on the
consumption method. Under the consumption method the cost is recorded as an expenditure at the time
individual inventory items are utilized.
Prepaid Items
Certain payments reflect costs applicable to future periods and are recorded as prepaid items in the
government-wide and fund financial statements. These items consist principally of postage and deposits
for purchases and are reported on the consumption method.
Leases
Effective October 1, 2021, the City implemented GASB Statement No. 87, Leases, which required the
recognition of certain lease assets and liabilities for leases that previously were classified as operating
leases and recognized as inflows of resources or outflows of resources based on the payment provisions
of the contract.
Lessee – The City recognizes a lease liability and an intangible right-to-use lease asset (lease asset) in the
government-wide and proprietary funds financial statements.
At implementation of GASB Statement No. 87, the City initially measured the lease liabilities at the present
value of payments expected to be made during the remaining lease term. Subsequently, the lease
liability is reduced by the principal portion of lease payments made. The lease right-to-use asset was
initially measured as the initial amount of the lease liability, adjusted for lease payments made at or before
the lease commencement date, plus certain initial direct costs. Subsequently, the lease right-to use asset
is amortized on a straight-line basis over its useful life.
Key estimates and judgments related to leases include how the City determines (1) the discount rate it
uses to discount the expected lease payments to present value, (2) lease term and (3) lease payments.
• The City uses the interest rate charged by the lessor as the discount rate. When the interest rate
charged by the lessor is not provided, the City generally uses its estimated incremental borrowing
rate as the discount rate for leases.
• The lease term includes the noncancellable period of the lease. Lease payments included in the
measurement of the lease liability are composed of fixed payments and purchase option price
that the City is reasonably certain to exercise.
The City monitors changes in circumstances that would require a re-measurement of its lease and will
remeasure the lease asset and liability if certain changes occur that are expected to significantly affect
the amount of the lease liability.
City of Southlake, Texas
Notes to Basic Financial Statements
53
Lease assets are reported with other capital assets and lease liabilities are reported with long-term debt
on the Statement of Net Position.
Lessor—The City recognizes a lease receivable and deferred inflow of resources in the government-wide,
and governmental funds financial statements.
At implementation of GASB Statement No. 87, the City measured the lease receivable at the present
value of payments expected to be received during the lease term. Subsequently, the lease receivable is
reduced by the principal portion of lease payments received. The deferred inflow of resources is initially
measured as the initial amount of the lease receivable, adjusted for lease payments received at or before
the lease commencement date. Subsequently, the deferred inflow of resources is recognized as revenue
over the life of the lease term.
Key estimates and judgments include how the City determines (1) the discount rate it uses to discount the
expected lease receipts to present value, (2) lease term and (3) lease receipts.
• The City uses its estimated incremental borrowing rate as the discount rate for leases.
• The lease term includes the non-cancellable period of the lease. Lease receipts included in the
measurement of the lease receivable is composed of fixed payments from the lessee.
The City monitors changes in circumstances that would require a re-measurement of its lease, and will
remeasure the lease receivable and deferred inflows of resources if certain changes occur that are
expected to significantly affect the amount of the lease receivable.
Capital Assets
Capital assets, which include property, plant, equipment, right to use leased assets, and infrastructure
assets, are reported in the applicable governmental or business-type activities columns in the
government-wide financial statements and in the fund financial statements for proprietary funds. All
capital assets are valued at historical cost or estimated historical cost if actual historical cost is not
available. Donated assets are valued at acquisition value on the date donated.
The costs of normal repairs and maintenance that do not add to the value of the asset or materially
extend the asset lives are not capitalized. Renewals and betterments are capitalized.
Assets capitalized have an original cost of $5,000 or more and over one year of useful life.
Depreciation/amortization has been calculated on each class of depreciable property using the straight-
line method. Estimated useful lives are as follows:
Buildings 20 - 50 Years
Water and Sewer distribution system 35 - 50 Years
Water hydrants 10 - 15 Years
Water tanks 35 Years
Computer equipment 5 Years
Heavy equipment and vehicles 10 - 20 Years
Light vehicles 2 - 10 Years
Vehicles 5 Years
Improvements 25 Years
Infrastructure 10 Years
City of Southlake, Texas
Notes to Basic Financial Statements
54
The street network is not depreciated. The City has elected to use the modified approach in accounting
for its street infrastructure. The modified approach allows governments to report as expenses in lieu of
depreciation, infrastructure expenditures which maintain the asset but do not add to or improve the asset.
Additions and improvements to the street network are capitalized. The City uses an asset management
system to rate street condition and quantify the results of maintenance efforts.
The City has established the Vehicle and Equipment Replacement Internal Service Fund to account for
City-owned vehicles and equipment. The fund receives transfers from other funds.
Right-to-use assets are amortized over the duration of the lease using the straight-line method.
Compensated Absences
City employees earn vacation and sick leave, which may either be taken or accumulated, up to certain
amounts, until paid upon retirement or termination Employees with 10 or 20 year tenures of continuous
employment with the City are eligible to receive payment of their unused sick leave, within certain
limitations. Upon termination or retirement, an employee is reimbursed up to a maximum number of hours
of vacation pay based upon the years of service. All vacation is accrued in the government-wide and
proprietary fund financial statements. A liability for these amounts is reported in the governmental funds
only if they have matured.
Long-Term Obligations
In the government-wide financial statements and proprietary fund financial statements, long-term debt
and other long-term obligations are reported as liabilities in the applicable governmental activities,
business-type activities, or proprietary fund statement of net position. Bond premiums and discounts, as
well as any deferred losses and gains on the refunding of bonds, are amortized over the life of the bonds
using the effective interest method. Bonds payable are reported net of the applicable bond premium or
discount. Issuance costs are recorded as expenses when incurred.
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as
well as bond issuance costs, during the current period. The face amount of debt issued is reported as
other financing sources. Premiums and discounts received on debt issuances are reported as other
financing sources or uses. Issuance costs, whether or not withheld from the actual debt proceeds
received, are reported as debt service expenditures.
Pensions and Other Post-Employment Benefits (OPEB)
For purposes of measuring the net pension and net OPEB liabilities (assets), pension and OPEB related
deferred outflows and inflows of resources and pension and OPEB expense, City specific information
about its Fiduciary Net Position in the Texas Municipal Retirement System (TMRS) and additions
to/deductions from the City’s Fiduciary Net Position have been determined on the same basis as they are
reported by TMRS. For this purpose, plan contributions are recognized in the period that compensation is
reported for the employee, which is when contributions are legally due. Benefit payments and refunds
are recognized when due and payable in accordance with the benefit terms. Investments are reported
at fair value.
Information regarding the City’s Total Pension Liability and Total OPEB Liability is obtained from TMRS
through reports prepared for the City by TMRS consulting actuary, Gabriel Roeder Smith & Company, in
compliance with Governmental Accounting Standards Board (GASB) Statement No. 68, Accounting and
Financial Reporting for Pensions, and GASB Statement No. 75, Accounting and Financial Reporting for
Postemployment Benefits Other Than Pensions.
City of Southlake, Texas
Notes to Basic Financial Statements
55
Information regarding the City’s Total OPEB Liability of its Retiree Health Care Plan is obtained from Public
Agency Retirement Services (PARS) through reports prepared for the City by PARS consulting actuary,
Gabriel Roeder Smith & Company, in compliance with Governmental Accounting Standards Board
(GASB) Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than
Pensions.
Deferred Outflows of Resources
In addition to assets, the statement of financial position and/or balance sheet will sometimes report a
separate section for deferred outflows of resources. This separate financial statement element, deferred
outflows of resources, represent a consumption of net assets that applies to a future period(s) and so will
not be recognized as an outflow of resources (expense/expenditure) until then. The City has the following
items that qualify for reporting in this category:
Deferred loss on refunding – these deferred outflows result from the difference in the carrying value of
refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the
life of the refunded or refunding debt.
Pensions/OPEB – these deferred outflows result from pension/OPEB contributions after the measurement
date (deferred and recognized as a reduction of the pension/OPEB liability in the following fiscal year);
changes in actuarial assumptions and/or differences between expected and actual economic
experience (deferred and amortized over the estimated average remaining lives of participants) and/or
differences in projected and actual earnings on pension/OPEB assets (deferred and amortized over a
closed five year period).
Deferred Inflows of Resources
In addition to liabilities, the statement of net position and/or balance sheet will sometimes report a
separate section for deferred inflows of resources, which represents acquisitions of net assets that apply
to future periods.
Deferred gain on refunding – these deferred inflows result from the difference in the debt’s reacquisition
price and its carrying value that was refunded. This amount is deferred and amortized over the shorter of
the life of the refunded or refunding debt.
Pensions/OPEB – Differences in expected and actual experience and differences in assumption changes
are deferred and amortized over a closed period equal to the estimated average remaining lives of all
employees provided pensions through the plan, while investment experience differences are amortized
over a closed 5-year period.
Deferred Inflows from Leases
Collections of lease receivables, are deferred in both the governmental fund and government wide
financial statements. These amounts are recognized in a systematic manner over the life of the lease.
Deferred Inflows from Unavailable Revenues
In addition to liabilities, the governmental funds balance sheet reports deferred inflows from receivables
that were not collected within 60 days of year-end. The deferred inflow from receivables balances and
changes are reported as a reconciling amount to the statements of net position and activities. Deferred
inflows from leases are also reported on the governmental fund balance sheet.
City of Southlake, Texas
Notes to Basic Financial Statements
56
Fund Equity
The City classifies governmental fund balances as follows:
1. Nonspendable fund balance – includes amounts that are not in a spendable form or are required
to be maintained intact (example – inventory or permanent funds).
2. Restricted fund balance – includes amounts that can be spent only for the specific purposes
stipulated by external resource providers either constitutionally or through enabling legislation
(example – court technology and court security funds).
3. Committed fund balance – includes amounts that can only be used for specific purposes
determined by City Council (example – capital projects and police expenditures).
4. Assigned fund balance – comprises amounts intended to be used by the City for specific
purposes. Intent can be expressed by the City Council or their designee (Chief Financial Officer).
In governmental funds other than the General Fund, assigned fund balance represents the
amount that is not restricted or committed. This indicates that resources in other governmental
funds are, at a minimum, intended to be used for the purpose of that fund (example – facility
maintenance and economic investments).
5. Unassigned fund balance – is the residual classification of the General Fund and includes all
amounts not contained in other classifications.
The City has also adopted the following policies:
Committed Fund Balance - The City Council is the City’s highest level of decision-making authority and
approval by ordinance is required to establish, modify, or rescind a fund balance commitment. The
ordinance must either be approved or rescinded, as applicable, prior to the last day of the fiscal year.
The amount subject to the constraint may be determined in the subsequent period.
Assigned Fund Balance - The City Council has authorized the City’s Chief Financial Officer as the official
authorized to assign fund balance to a specific purpose as approved by this fund balance policy.
Unassigned Fund Balance - It is the goal of the City 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 City considers a balance of less than 15% to be cause for concern, barring unusual or deliberate
circumstances.
It is the goal of the City to maintain 60 days of working capital in the Water and Sewer Enterprise Fund,
with the optimum goal of 90 days of working capital.
The City shall also maintain all reserve funds for all statutorily required reserve funds to guarantee debt
service.
Order of Expenditure of Funds - When multiple categories of fund balance are available for expenditures,
the City will start with the most restricted category and spend those funds first before moving to the next
category with available funds (restricted, committed, assigned and unassigned).
During fiscal year 2006, the City began assigning funds for strategic initiatives. The source of these funds
is reserves in excess of 25% of General Fund expenditures. The funds will be used for one-time high impact
projects involving infrastructure maintenance, community enhancement and capital acquisition; and are
reported as assigned fund balance in the General Fund.
City of Southlake, Texas
Notes to Basic Financial Statements
57
As of September 30, 2022, the City had the governmental fund balances categorized as follows:
COMMUNITY
ENHANCEMENT
GENERAL SOUTHLAKE TAX DEVELOPMENT
OBLIGATION GENERAL PARKS INCREMENT CORPORATION NON-MAJOR TOTAL
DEBT CAPITAL DEVELOPMENT FINANCING SPECIAL GOVERNMENTAL GOVERNMENTAL
GENERAL SERVICE PROJECTS CORPORATION DISTRICT REVENUE F UNDS FUNDS
FUND BALANCES
Nonspendable for:
Inventories 21,017$ -$ -$ -$ -$ -$ -$ 21,017$
Prepaid expenditures 380,512 - - - - - - 380,512
Restricted for:
Debt service - 3,287,396 - - - - 2,464,189 5,751,585
Capital projects - - 26,395,656 - - - - 26,395,656
Municipal court expenditures - - - - - - 835,268 835,268
Reinvestment zone expenditures - - - - 6,663,970 - - 6,663,970
Parks and recreation - - - 14,016,439 - 16,668,425 16,947,601 47,632,465
Storm water - - - - - - 1,936,358 1,936,358
Police expenditures - - - - - - 7,791,993 7,791,993
Library - - - - - - 14,604 14,604
Promotion of tourism - - - - - - 2,653,697 2,653,697
Committed for:
Police expenditures - - - - - - 1,169,498 1,169,498
Parks and recreation - - - - - - 55,266 55,266
Assigned for:
Teen Court expenditures 20,882 - - - - - - 20,882
Senior Center expenditures 11,042 - - - - - - 11,042
Recycling 138,291 - - - - - - 138,291
Reforestation expenditures 96,012 - - - - - - 96,012
Public art 441,984 - - - - - - 441,984
Facility maintenance 10,064,326 - - - - - - 10,064,326
Economic investment 2,950,994 - - - - - - 2,950,994
Strategic initiatives 20,306,807 - - - - - - 20,306,807
Capital projects - - 19,442,768 - - - - 19,442,768
Unassigned 14,681,556 - - - - - - 14,681,556
TOTAL FUND BALANCES 49,113,423$ 3,287,396$ 45,838,424$ 14,016,439$ 6,663,970$ 16,668,425$ 33,868,474$ 169,456,551$ Net Position
Net position represents the difference between assets plus deferred outflows of resources and liabilities
plus deferred inflows of resources. Net investment in capital assets consists of capital assets, net of
accumulated depreciation, reduced by the outstanding balances of any borrowing used for the
acquisition, construction or improvement of those assets, and adding back unspent proceeds. Net
position is reported as restricted when there are limitations imposed on their use either through the
enabling legislations adopted by the City or through external restrictions imposed by creditors, grantors
or laws or regulations of other governments.
Sometimes the City will fund outlays for a particular purpose from both restricted (e.g., restricted bond or
grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted net
position and unrestricted net position in the government-wide and proprietary fund financial statements,
a flow assumption must be made about the order in which the resources are considered to be applied.
It is the City’s policy to consider restricted net position to have been depleted before unrestricted net
position is applied.
Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in
the United States of America requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements, and the reported amounts of revenues and expenses/expenditures during the
reporting period. Actual results could differ from those estimates.
Deficit Fund Balance
There are no deficit fund balances reported as of September 30, 2022.
City of Southlake, Texas
Notes to Basic Financial Statements
58
New Accounting Pronouncements
The GASB pronouncements effective in fiscal year 2022 and beyond are listed as follows:
GASB Statement No. 87, Leases, increases the usefulness of government financial statements by requiring
recognition of certain lease assets and liabilities for leases that previously were classified as operating
leases and recognized as inflows of resources or outflows of resources based on the payment provisions
of the contract. The requirements of this Statement were effective for reporting periods beginning after
June 15, 2021. The City has implemented this Statement in fiscal year 2022.
GASB Statement No. 87, Leases, was implemented by the City effective October 1, 2021, the first day of
the 2022 fiscal year, which resulted in a restatement of opening net position totaling $402,558 for its
Governmental activities.
In the fund financial statements, the implementation of this standard resulted in a restatement of opening
fund balances of $368,213 and $35,971 for the General fund and the Southlake Parks Development
Corporation fund, respectively. These increases in beginning fund balances are the net effect of
establishing the lease receivables of $720,650 and $335,444 against the related deferred inflows from
leases of $352,437 and $299,473 for the General and Southlake Parks Development Corporation Funds,
respectively.
The $402,558 increase in beginning net position reflects the same net effect of the lease receivables and
related deferred inflows of resources from leases, as well as the net effect of establishing the
governmental type right-to-use leased equipment assets of $452,021 (net of accumulated amortization
of $93,048), and the governmental type lease liabilities of $452,688, as well as accrued interest payable
on the lease liabilities of $959 as of October 1, 2021.
GASB Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment
Arrangements, improves financial reporting by addressing these relationships and availability payment
arrangements. The requirements of this Statement are effective for fiscal years beginning after
June 15, 2022. The City is currently evaluating the impact of this Statement.
GASB Statement No. 96, Subscription-Based Information Technology Arrangements (SBITA), provides
guidance on the accounting and financial reporting of contractual arrangements. It defines SBITA;
establishes that a SBITA results in a right-to-use subscription asset; provides capitalization criteria; and
requires note disclosures. The requirements of this Statement are effective for reporting periods beginning
after June 15, 2022. The City is currently evaluating the impact of this Statement.
GASB Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for
Internal Revenue Code Section 457 Deferred Compensation Plans, increases consistency and
comparability related to the reporting of fiduciary component units in circumstances in which a potential
component unit does not have a governing board and the primary government performs the duties that
governing board typically would perform; mitigates costs associated with the reporting of certain defined
contribution pension, OPEB and benefit plans other than pension or OPEB plans; and enhances the
relevance, consistency and comparability of the accounting and financial reporting for Internal Revenue
Code Section 457 deferred compensation plans that meet the definition of a pension plan and for
benefits provided through those plans. The requirements of this Statement related to the accounting and
financial reporting for Section 457 plans was effective for fiscal years beginning after June 15, 2021, and
have no impact on the City’s financial statements.
City of Southlake, Texas
Notes to Basic Financial Statements
59
GASB Statement No. 99, Omnibus 2022, enhances comparability in accounting and financial reporting
and improves the consistency of authoritative literature by addressing (1) practice issues that have been
identified during implementation and application of certain GASB Statements and (2) accounting and
financial reporting for financial guarantees. The requirements of this Statement related to extension of use
of London Interbank Offered Rate (LIBOR), accounting for Supplemental Nutrition Assistance Program
(SNAP) distributions, disclosures of nonmonetary transactions, pledges of future revenues by pledging
governments, clarification of certain provisions in Statement No. 34, as amended and terminology
updates related to Statements No. 53 and 63 are effective immediately and implemented in the current
year. All other requirements of this Statement are effective for fiscal years beginning after June 15, 2022,
or June 15, 2023. The City is currently evaluating the impact of this Statement.
GASB Statement No. 100, Accounting Changes and Error Corrections – an amendment of GASB
Statement No. 62, enhances the accounting and financial reporting requirements for accounting
changes and error corrections to provide more understandable, reliable, relevant, consistent and
comparable information for making decisions or assessing accountability. The requirements of this
Statement are effective for accounting changes and error corrections made in fiscal years beginning
after June 15, 2023, and all reporting periods thereafter. The City is currently evaluating the impact of this
Statement.
GASB Statement No. 101, Compensated Absences, will better meet the information needs of financial
statement users by updating the recognition and measurement guidance for compensated absences.
The objective is achieved by aligning the recognition and measurement guidance under a unified model
and by amending certain previously required disclosures. The requirements of this Statement are effective
for fiscal years beginning after December 15, 2023, and all reporting periods thereafter. The City is
currently evaluating the impact of this Statement.
Subsequent Events
The City has evaluated all events or transactions that occurred after September 30, 2022 through
March 14, 2023, the date the financial statements were available to be issued. During this period, there
were no subsequent events requiring disclosure.
Note 2. Cash and Investments
The funds of the City must be deposited and invested under the terms of a contract, contents of which
are set out in the Depository Contract Law. The depository bank places approved pledged securities for
safekeeping and trust with the City's agent bank in an amount sufficient to protect City funds on a day-
to-day basis during the period of the contract. The pledge of approved securities is waived only to the
extent of the depository bank's dollar amount of Federal Deposit Insurance Corporation (FDIC) insurance.
At September 30, 2022, the carrying amount of the City's on demand deposits was $28,656,450 and the
bank balance was $28,909,672. As of September 30, 2022, none of the City’s deposits were
uncollateralized.
The following legal and contractual provisions govern deposits and investments:
The Public Funds Investment Act (Government Code Chapter 2256) contains specific provisions in the
areas of investment practices, management reports and establishment of appropriate policies.
City of Southlake, Texas
Notes to Basic Financial Statements
60
Among other things, the Public Funds Investment Act (PFIA) requires the City to adopt, implement, and
publicize an investment policy. That policy must address the following areas: (1) safety of principal and
liquidity, (2) portfolio diversification, (3) allowable investments, (4) acceptable risk levels, (5) expected
rates of return, (6) maximum allowable stated maturity of portfolio investments, (7) maximum average
dollar-weighted maturity allowed based on the stated maturity date for the portfolio, (8) investment staff
quality and capabilities, and (9) and bid solicitation preferences for certificates of deposit.
Statutes and the City’s investment policy authorized the City to invest in the following investments as
summarized in the table below:
Maximum
Authorized Maximum Percentage
Investment Type Maturity of Portfolio
U.S. Government Securities 5 years 100%
Municipal Obligations 5 years 50%
Repurchase Agreements 90 days 50%
Certificates of Deposit 5 years 100%
Bankers Acceptances 270 days 20%
Commercial Paper 270 days 20%
Money Market Mutual Funds 60 days*50%
Eligible Investment Pools N/A 100%
Insured Deposit Accounts N/A 20%
*dollar weighted average maturity
The Act also requires the City to have independent auditors perform test procedures related to investment
practices as provided by the Act. The City is in substantial compliance with the requirements of the Act
and with local policies.
Cash and investments as of September 30, 2022, are classified in the accompanying financial statements
as follows:
Primary Government:
Cash and cash equivalents 221,465,885$
Restricted cash and cash equivalents 22,432,236
Restricted cash for customer deposits 323,762
Total primary government 244,221,883
Trust Fund:
Investments at fair value 2,550,451
Total fiduciary funds 2,550,451
Total cash and investments 246,772,334$
City of Southlake, Texas
Notes to Basic Financial Statements
61
Cash and investments of the primary government as of September 30, 2022 consist of the following:
Cash on hand 5,450$
Deposits with financial institutions 28,656,450
Investments at amortized cost 97,141,013
Investments at fair value 118,418,970
Total cash and investments 244,221,883$
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an
investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value
to changes in market interest rates. One of the ways that the City manages its exposure to interest rate
risk is by investing mainly in investment pools which purchase a combination of shorter term investments
with an average maturity of less than 60 days, thus reducing the interest rate risk. The City monitors the
interest rate risk inherent in its portfolio by measuring the weighted average maturity of its portfolio. The
City has no specific limitations with respect to this metric.
As of September 30, 2022, the City did not invest in any securities which are highly sensitive to interest rate
fluctuations.
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of
the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating
organization. Presented below is the minimum rating required by (where applicable) the Public Funds
Investment Act, the City’s investment policy, or debt agreements, and the actual rating as of year-end
for each investment type.
Minimum Rating as
Legal of Year
Amount Rating End
U.S. Government securities 63,509,569$ N/A AAA
Municipal bonds 6,879,457 A AAA
Commercial paper 27,465,485 A-1 / P-1 A-1 - A-1+
Mutual funds 20,564,459 N/A AAAm
TexStar 19,370,978 AAA / AAAm AAAm
TexPool 47,370,966 AAA / AAAm AAAm
Lonestar Investment Pool 25,038,348 AAA / AAAm AAAm
Texas Class 5,360,721 AAA / AAAm AAAm
Total 215,559,983$
Investment Type
Concentration of Credit Risk
The investment policy of the City contains no limitations on the amount that can be invested in any one
issuer. As of September 30, 2022, the City investments other than external investment pools that represent
5% or more of the City’s investments include mutual funds, municipal bonds, commercial paper and U.S.
Government securities as described in the table in the following Custodial Credit Risk section.
City of Southlake, Texas
Notes to Basic Financial Statements
62
Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution,
a government will not be able to recover its deposits or will not be able to recover collateral securities
that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the
event of the failure of the counterparty to a transaction, a government will not be able to recover the
value of its investment or collateral securities that are in the possession of another party. The Public Funds
Investment Act and the City’s investment policy do not contain legal or policy requirements that would
limit the exposure to custodial credit risk for deposits or investments, other than the following provision for
deposits:
The Public Funds Investment Act requires that a financial institution secure deposits made by state or local
governmental units by pledging securities in an undivided collateral pool held by a depository regulated
under state law (unless so waived by the governmental unit).
The market value of the pledged securities in the collateral pool must equal at least the bank balance
less the FDIC insurance at all times. As of September 30, 2022, none of the City’s cash deposits were
uncollateralized.
The City categorizes its fair value measurements within the fair value hierarchy established by generally
accepted accounting principles. GASB Statement No. 72, Fair Value Measurement and Application,
provides a framework for measuring fair value which establishes a three-level fair value hierarchy that
describes the inputs that are used to measure assets and liabilities.
• Level 1 inputs are quoted prices (unadjusted) for identical assets or liabilities in active markets that
a government can access at the measurement date.
• Level 2 inputs are inputs—other than quoted prices included within Level 1—that are observable
for an asset or liability, either directly or indirectly.
• Level 3 inputs are unobservable inputs for an asset or liability.
The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs.
If a price for an identical asset or liability is not observable, a government should measure fair value using
another valuation technique that maximizes the use of relevant observable inputs and minimizes the use
of unobservable inputs. If the fair value of an asset or a liability is measured using inputs from more than
one level of the fair value hierarchy, the measurement is considered to be based on the lowest priority
level input that is significant to the entire measurement.
City of Southlake, Texas
Notes to Basic Financial Statements
63
The City has recurring fair value measurements as presented in the table below. The City’s investment
balances and weighted average maturity of such investments are as follows:
Value at
9/30/22 Level 1 Inputs Level 2 Inputs
Level 3 Inputs
Percent of
Total
Investments
Investments not subject to Fair Value
Investment Pools
TexPool 47,370,966$ -$ -$ -$ 22%25
TexStar 19,370,978 - - - 9%16
Lone Star 25,038,348 - - - 12%49
Texas CLASS 5,360,721 - - - 2%31
Investments by Fair Value Level
Commercial Paper 27,465,485 27,465,485 13%167
U.S. Treasury Notes & Bonds 44,105,404 44,105,404 20%194
U.S. Government securities 19,404,165 - 19,404,165 - 9%407
Municipal Bonds 6,879,457 - 6,879,457 - 3%459
Mutual Funds Short-Term Investments Trust 20,564,459 20,564,459 - - 10%10
Total 215,559,983$ 20,564,459$ 97,854,511$ -$ 100%136
Fair Value Measurements Weighted
Average
Maturity
(Days)
Mutual funds reported as level 1 are valued at the net asset value (NAV) of shares held by the City at
year end. The NAV is a quoted price in an active market.
U.S. Government Securities, commercial paper and municipal bonds classified in Level 2 of the fair value
hierarchy are valued using a matrix pricing technique. Matrix pricing is used to value securities based on
the securities’ relationship to benchmark quoted prices.
Investment in State Investment Pools
The City is a voluntary participant in four investment pools: TexPool, TexStar, Texas CLASS and Lone Star.
State Comptroller of Public Accounts exercises responsibility over TexPool. This oversight includes the ability
to significantly influence operations, designation of management, and accountability for fiscal matters.
Additionally, the State Comptroller has established an advisory board composed of both participants in
TexPool and other persons who do not have a business relationship with TexPool. TexPool operates in a
manner consistent with the SEC’s Rule 2a7 of the Investment Company Act of 1940. TexPool uses
amortized costs rather than market value to report net position to compute share prices. Accordingly, the
fair value of the position in TexPool is the same as the value of TexPool shares.
TexStar is administered by First Southwest Asset Management, Inc. and JPMorgan Chase. TexStar is a local
government investment pool created under the Interlocal Cooperation Act specifically tailored to meet
Texas state and local government investment objectives of preservation of principal, daily liquidity, and
competitive yield. TexStar uses amortized costs rather than market value to report net position to compute
share prices. Accordingly, the fair value of the position in TexStar is the same as the value of TexStar shares.
Texas CLASS is organized under the Sixth Amended and Restated Trust Agreement in accordance with all
the requirements contained in section 2256.016 of the Public Funds Investment Act. Texas CLASS is
administered by Public Trust Advisors, LLC and all funds are held by the custodial agent, Wells Fargo N.A.
Texas CLASS may invest in obligations of the U.S. or its agencies and instrumentalities; repurchase
agreements; SEC-registered money market funds rated in the highest rating category by at least one
NRSRO; and commercial paper rated A-1, P-1 or equivalent by two nationally recognized rating agencies.
Texas CLASS is measured at fair value (i.e., net asset value).
City of Southlake, Texas
Notes to Basic Financial Statements
64
The Lone Star Investment Pool (the Pool) is organized in conformity with the Interlocal Cooperation Act,
Chapter 791 of the Texas Government Code, and the Public Funds Investment Act, Chapter 2256 of the
Texas Government Code. The Pool is governed by an 11 member Board of Trustees, consisting of
individuals representing entities participating in the Pool. The fair value of the City’s position in the Pool is
the same as the value of the Pool shares.
Note 3. Receivables
Receivables at September 30, 2022, for the government’s individual major, non-major, internal service,
and fiduciary funds in the aggregate, including the applicable allowances for uncollectible accounts,
consist of the following:
General Tax
Obligation General SPDC Increment
Debt Capital Special Rev.Financing
General Service Projects Fund District
Receivables:
Property taxes 440,817$ 88,164$ -$ -$ -$
Sales taxes 3,392,571 - - 1,681,020 -
Franchise taxes 741,575 - - - -
Accounts - - 48,290 - -
Interest 40,567 3,053 45,471 12,043 6,215
Leases 870,124 - - 188,613 -
Other 93,444 197 - - 490
Gross receivables 5,579,098 91,414 93,761 1,881,676 6,705
Less: allowance 388,556 77,711 - - -
Net total receivables 5,190,542$ 13,703$ 93,761$ 1,881,676$ 6,705$
CEDC Water Primary
Special Non-Major and Internal Government
Revenue Governmental Sewer Service Total
Receivables:
Property taxes -$ -$ -$ -$ 528,981$
Sales taxes 1,245,200 651,274 - - 6,970,065
Franchise taxes - - - - 741,575
Accounts - 220,437 6,092,229 - 6,360,956
Interest 14,940 31,236 59,590 9,187 222,302
Leases - - - - 1,058,737
Other 174,939 - - - 269,070
Gross receivables 1,435,079 902,947 6,151,819 9,187 16,151,686
Less: allowance - - 74,449 - 540,716
Net total receivables 1,435,079$ 902,947$ 6,077,370$ 9,187$ 15,610,970$
City of Southlake, Texas
Notes to Basic Financial Statements
65
The Water and Sewer Fund and the Storm Water Utility Fund accounts receivable include unbilled charges
for services rendered through September 30, 2022, of $2,923,305.
Lease Receivables
The City is a lessor for non-cancelable leases of the right-to-use of land, buildings, and infrastructure for
which the City recognizes a lease receivable and a deferred inflow of resources in the government-wide
and governmental fund financial statements. The interest rates for the leases approximate 2.9% annually,
and the terms range from 5 to 25 years. The lease receivables that exist at September 30, 2022, relate to
leases whose terms expire between December 2023 and January 2028.
At the commencement of a lease, the City initially measures the lease receivable at the present value of
payments expected to be received during the lease term. Subsequently, the lease receivable is reduced
by the principal portion of lease payments received. The deferred inflow of resources is initially measured
as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease
commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the
life of the lease term. The City has $1,058,737 remaining in lease receivables and $706,608 remaining in
deferred inflow as of September 30, 2022. The City recorded lease revenue including interest of $224,170
in the fiscal year.
As of September 30, 2022, the expected lease receipts through the expiration of all leases for which the
City is a lessor is as follows:
Principal Interest Total
301,277$ 27,439$ 328,716$
199,442 19,651 219,093
171,998 14,670 186,668
183,448 9,553 193,001
155,555 4,097 159,652
47,017 284 47,301
1,058,737$ 75,694$ 1,134,431$
2027
2028
Total
Fiscal Year Ending
September 30,
2023
2024
2025
2026
City of Southlake, Texas
Notes to Basic Financial Statements
66
Note 4. Capital Assets
Capital asset activity for the year ended September 30, 2022, was as follows:
Beginning Capital Sales or Adjustments/Ending
Balance Acquisitions Disposals Transfers Balance
Governmental Activities:
Capital assets not being
depreciated/amortized:
Land 96,943,211$ 13,638$ -$ -$ 96,956,849$
Street infrastructure 216,914,845 18,312 - 15,425,394 232,358,551
Construction-in-progress 17,742,871 8,809,241 - (16,507,011) 10,045,101
Total capital assets not
being depreciated/amortized 331,600,927 8,841,191 - (1,081,617) 339,360,501
Capital assets being depreciated/amortized:
Land improvements 41,293,282 - - 428,024 41,721,306
Buildings and building improvements 142,247,034 - - - 142,247,034
Public art 1,804,405 - - 10,000 1,814,405
Equipment 19,291,034 2,856,739 (312,876) 85,761 21,920,658
Vehicles 15,863,822 499,370 (1,045,589) - 15,317,603
Drainage 63,244,266 366,714 - 557,832 64,168,812
Right to use leased equipment 545,069 - - - 545,069
Total capital assets being
depreciated/amortized 284,288,912 3,722,823 (1,358,465) 1,081,617 287,734,887
Accumulated depreciation/amortization:
Land improvements (24,208,336) (1,981,233) - - (26,189,569)
Buildings and building improvements (29,915,685) (3,251,335) - - (33,167,020)
Public art (1,064,188) (108,565) - - (1,172,753)
Equipment (15,520,888) (1,427,047) 312,876 - (16,635,059)
Vehicles (9,848,885) (1,213,033) 996,033 - (10,065,885)
Infrastructure (29,526,672) (1,738,285) - - (31,264,957)
Right to use leased equipment (93,048) (118,382) - - (211,430)
Total accumulated
depreciation/amortization (110,177,702) (9,837,880) 1,308,909 - (118,706,673)
Total capital assets being
depreciated/amortized, net 174,111,210 (6,115,057) (49,556) 1,081,617 169,028,214
Governmental activities capital assets, net 505,712,137$ 2,726,134$ (49,556)$ -$ 508,388,715$ Beginning Capital Sales or Adjustments/Ending
Balance Acquisitions Disposals Transfers Balance
Business Type Activities:
Capital assets not being depreciated/amortized:
Land 21,009,675$ 23,921$ -$ -$ 21,033,596$
Construction-In-Progress 579,184 944,737 - (109,248) 1,414,673
Total capital assets not
being depreciated/amortized 21,588,859 968,658 - (109,248) 22,448,269
Capital assets being depreciated/amortized:
Buildings and building improvements 935,501 - - - 935,501
Equipment 2,553,907 10,176 (66,074) - 2,498,009
Vehicles 553,002 - (41,185) - 511,817
Capacity rights 9,190,988 - - - 9,190,988
Distribution system 153,042,758 774,552 - 109,248 153,926,558
Total capital assets being
depreciated/amortized 166,276,156 784,728 (107,259) 109,248 167,062,873
Accumulated depreciation/amortization:
Buildings and building improvements (767,222) (30,318) - - (797,540)
Equipment (2,424,122) (81,454) 66,074 - (2,439,502)
Vehicles (541,414) (4,879) 41,185 - (505,108)
Capacity rights (4,806,955) (183,820) - - (4,990,775)
Distribution system (78,445,619) (4,857,896) - - (83,303,515)
Total accumulated
depreciation/amortization (86,985,332) (5,158,367) 107,259 - (92,036,440)
Total capital assets being
depreciated/amortized, net 79,290,824 (4,373,639) - 109,248 75,026,433
Business type activities capital assets, net 100,879,683$ (3,404,981)$ -$ -$ 97,474,702$
City of Southlake, Texas
Notes to Basic Financial Statements
67
Depreciation/amortization expenses were charged as a direct expense to functions of the primary
government as follows:
Governmental activities:
General government 1,808,266$
Public safety 1,987,484
Public works 1,991,761
Culture and recreation 4,050,369
Total depreciation/amortization
expense - governmental activities 9,837,880$
Business-type activities:
Water and Sewer 5,158,367$
Note 5. Long-Term Debt
The City issues general obligation bonds, combination tax and revenue certificates of obligation and tax
notes to provide for the acquisition and construction of major capital facilities and infrastructure.
Combination tax and revenue certificates of obligation are issued for both governmental and business-
type activities. General obligation bonds, governmental revenue bonds and tax notes pledge the full
faith and credit of the City. Combination tax and revenue certificates of obligation are payable from
the net revenues of the water and sewer system and general debt service tax.
In prior years, the City has legally defeased certain outstanding general obligation and revenue debt by
placing funds into irrevocable trusts pledged to pay all future debt service payments of the refunded
debt. Accordingly, a liability for the defeased debt issues is not included in the City’s financial statements.
As of September 30, 2022, the City had no additional outstanding bonds that were legally defeased.
City of Southlake, Texas
Notes to Basic Financial Statements
68
General obligation bonds, combination certificates of obligation, tax notes, and governmental revenue
bonds are as follows as of September 30, 2022:
Final Interest Business-
General Obligation Bonds and Certificates of Obligation Maturity Rates Governmental Type
$11,300,000 Series 2012, Tax and Waterworks and Sewer
System (Limited Pledge) Certificates of Obligation 2032 3.0 - 4.25%-$ 1,585,000$
$9,965,000 Series 2012, General Obligation
Refunding Bonds 2026 3.0 - 4.25%3,285,000 60,000
$14,250,000 Series 2013, Tax and Waterworks and Sewer
System (Limited Pledge) Certificates of Obligation 2033 2.0 - 5.0%- 1,565,000
$22,295,000 Series 2013, General Obligation
Refunding Bonds 2026 2.0 - 5.0%9,335,000 315,000
$21,330,000 Series 2014, General Obligation
Refunding Bonds 2026 2.0 - 5.0%240,000 450,000
$8,780,000 Series 2014, Tax and Waterworks and Sewer
System (Limited Pledge) Certificates of Obligation 2034 2.0 - 3.5%- 2,935,000
$3,295,000 Series 2015, Tax and Waterworks and Sewer
System (Limited Pledge) Certificates of Obligation 2035 2.75 - 4.0%- 2,400,000
$7,910,000 Series 2017, General Obligation
Refunding Bonds 2028 3.0 - 4.0%2,476,669 2,638,331
$5,400,000 Series 2017, Tax and Waterworks and Sewer
System (Limited Pledge) Certificates of Obligation 2037 2.25 - 5.0%- 4,465,000
$4,205,000 Series 2018, Tax and Waterworks and Sewer
System (Limited Pledge) Certificates of Obligation 2038 3.0 - 4.0%- 3,600,000
$17,290,000 Series 2019, General Obligation
Refunding Bonds 2030 3.0 - 5.0%3,745,000 4,870,000
$4,240,000 Series 2021, General Obligation
Refunding Bonds 2031 1.21%1,807,000 1,894,000
$8,595,000 Series 2022, Tax and Waterworks and Sewer
System (Limited Pledge) Certificates of Obligation 2037 4.0 - 5.0%8,595,000 -
29,483,669$ 26,777,331$
City of Southlake, Texas
Notes to Basic Financial Statements
69
Final Interest
Governmental Revenue Bonds Maturity Rates Governmental
$11,300,000 Series 2012, Tax and Waterworks and Sewer
System (Limited Pledge) Certificates of Obligation 2032 3.0 - 4.25%3,365,000$
$16,000,000 Series 2014, Southlake Parks Development
Corporation, Sales Tax Revenue Refunding Bonds 2027 3%6,030,000
$24,450,000 Series 2016, Southlake Community Enhancement
and Development Corporation, Sales Tax Revenue Bonds 2036 3.00 - 5.00%19,715,000
$9,945,000 Series 2017, Southlake Community Enhancement
and Development Corporation, Sales Tax Revenue Bonds 2036 2.00 - 5.00%7,985,000
37,095,000$
Final Interest
Governmental Tax Notes Maturity Rates Governmental
$3,753,000 Series 2021, Tax Notes 2026 0.83%2,686,000$
During 2022, the City issued $8,595,000 of Tax and Waterworks and Sewer System (Limited Pledge)
Revenue Certificates of Obligation, Series 2022. The debt was issued for the purpose of paying contractual
obligations incurred for constructing, improving, and renovating streets, alleys, culverts, and bridges,
including drainage and erosion control.
The following is a summary of long-term liability transactions for the year ended September 30, 2022:
Amount
Beginning Ending Due within
Balance Additions Reductions Balance One year
Governmental activities:
General obligation bonds and
certificates of obligation 25,098,975$ 8,595,000$ (4,210,306)$ 29,483,669$ 5,756,832$
Sales tax revenue bonds 40,240,000 - (3,145,000) 37,095,000 3,250,000
Tax notes 3,753,000 - (1,067,000) 2,686,000 663,000
Bond premiums (discounts)4,705,133 737,765 (692,511) 4,750,387 -
Total bonds payable 73,797,108 9,332,765 (9,114,817) 74,015,056 9,669,832
Total OPEB liability - SDBF 978,660 81,063 - 1,059,723 -
Net pension liability 7,732,031 - (6,399,296) 1,332,735 -
Compensated absences 1,539,325 3,464,899 (2,282,783) 2,721,441 1,885,323
Financed purchase liabilities - 514,162 (108,794) 405,368 97,039
Other lease liabilities 452,688 - (114,637) 338,051 109,357
Total governmental activities 84,499,812$ 13,392,889$ (18,020,327)$ 79,872,374$ 11,761,551$
City of Southlake, Texas
Notes to Basic Financial Statements
70
Typically, liquidation of the liabilities for compensated absences, total OPEB, and net pension occurs
within the General Fund, Community Enhancement Development Corporation Special Revenue Fund,
and the Water and Sewer Enterprise Fund where the payroll costs are incurred.
Typically, liquidation of bonds payable occurs from the General Obligation Debt Service Fund, Southlake
Parks Development Corporation Debt Service Fund, and Community Enhancement Development
Corporation Debt Service Fund.
Amount
Beginning Ending Due within
Balance Additions Reductions Balance One year
Business-type activities:
General obligation bonds and
certificates of obligation 29,130,025$ -$ (2,352,694)$ 26,777,331$ 2,439,168$
Bond premiums 2,003,804 - (268,378) 1,735,426 -
Total bonds payable 31,133,829 - (2,621,072) 28,512,757 2,439,168
Total OPEB liability - SDBF 77,178 5,794 - 82,972 -
Net pension liability 757,402 - (457,338) 300,064 -
Compensated absences 87,370 218,659 (188,814) 117,215 95,852
Total business-type activities 32,055,779$ 224,453$ (3,267,224)$ 29,013,008$ 2,535,020$
The annual aggregate maturities for each bond type are as follows:
General Obligation Bonds and Certificates of Obligation
Fiscal Year Ending
September 30,Principal Interest Total
2023 5,756,832$ 1,109,260$ 6,866,092$
2024 5,751,358 831,199 6,582,557
2025 5,988,305 596,729 6,585,034
2026 6,240,252 350,301 6,590,553
2027 1,302,198 199,738 1,501,936
2028-2032 3,424,724 435,734 3,860,458
2033-2037 1,020,000 114,575 1,134,575
Total 29,483,669$ 3,637,536$ 33,121,205$
Governmental Activities
Sales Tax Revenue Bonds
Fiscal Year Ending
September 30,Principal Interest Total
2023 3,250,000$ 1,155,888$ 4,405,888$
2024 3,380,000 1,027,187 4,407,187
2025 3,335,000 895,662 4,230,662
2026 3,110,000 775,738 3,885,738
2027 2,970,000 678,237 3,648,237
2028-2032 11,860,000 2,300,448 14,160,448
2033-2037 9,190,000 567,037 9,757,037
Total 37,095,000$ 7,400,197$ 44,495,197$
Governmental Activities
City of Southlake, Texas
Notes to Basic Financial Statements
71
Tax Notes
Fiscal Year Ending
September 30,Principal Interest Total
2023 663,000$ 19,542$ 682,542$
2024 669,000 14,014 683,014
2025 674,000 8,441 682,441
2026 680,000 2,822 682,822
Total 2,686,000$ 44,819$ 2,730,819$
Governmental Activities
General Obligation Bonds and Certificates of Obligation
Fiscal Year Ending
September 30,Principal Interest Total
2023 2,439,168$ 883,708$ 3,322,876$
2024 2,488,642 788,662 3,277,304
2025 2,477,695 694,050 3,171,745
2026 2,565,748 598,818 3,164,566
2027 2,543,802 501,548 3,045,350
2028-2032 9,592,276 1,381,311 10,973,587
2033-2037 4,385,000 351,825 4,736,825
2038-2042 285,000 4,988 289,988
Total 26,777,331$ 5,204,910$ 31,982,241$
Business-Type Activities
The City has entered into various contractual agreements to unconditionally finance the principal and
interest or a fixed percentage of principal and interest of Trinity River Authority (TRA) Contract Revenue
Bonds. Under the agreements, the TRA utilized the bond proceeds to administer and construct various
sewer and wastewater treatment projects on the City’s behalf. Such agreements provide the City title to
the assets upon retirement of the debt or capacity rights in the use of constructed assets. The City has
included in its financial statements its proportionate share of these obligations and its investment in these
assets as capacity rights. The contract revenue obligations were paid as of September 30, 2022.
The City has entered into multiple arrangements for the purpose of financing the purchase of various
equipment. The City’s arrangements incur interest at 2.9% annually, and have 5 year terms expiring in
2026 and 2027.
The annual debt service requirement to amortize the financed purchase liabilities outstanding at
September 30, 2022, are as follows:
Financed Purchase Liabilities
Fiscal Year Ending
September 30,Principal Interest Total
2023 97,039$ 11,756$ 108,795$
2024 99,853 8,942 108,795
2025 102,748 6,046 108,794
2026 105,728 6,033 111,761
Total 405,368$ 32,777$ 438,145$
Governmental Activities
City of Southlake, Texas
Notes to Basic Financial Statements
72
The City has entered into multiple lease agreements as lessee for the right-to-use equipment over the
term of the lease. The City is required to make periodic payments at its incremental borrowing rate or the
interest rate stated or implied within the leases. Effective October 1, 2021, the City implemented GASB
Statement No. 87, Leases. At implementation of this statement, the City initially measured the lease liability
at the present value of payments expected to be made during the remaining lease term.
The City’s lessee arrangements incur interest at rates of approximately 2.9% annually; all of which are
accounted for within the City's governmental activities. All such arrangements range between 3 and 5
years in length.
The annual debt service requirement to amortize the other lease liabilities outstanding at September 30,
2022, are as follows:
Lease Liabilities
Fiscal Year Ending
September 30,Principal Interest Total
2023 109,357$ 8,343$ 117,700$
2024 89,025 5,406 94,431
2025 87,466 2,894 90,360
2026 52,203 506 52,709
Total 338,051$ 17,149$ 355,200$
Governmental Activities
Note 6. Transfers
All interfund transfers between the various funds are approved supplements to the operations of those
funds. Individual fund transfers for fiscal year 2022 were as follows:
General General Vehicle and
Obligation Capital Nonmajor Equipment
General Debt Service Projects Governmental Replacement Total
Fund Fund Fund Funds Fund transfers
Transfers out:
General Fund -$ -$ 14,638,170$ 150,000$ 2,500,000$ 17,288,170$
Southlake Parks Development
Corporation Fund 398,317 - - 6,796,796 - 7,195,113
Community Enhancement and
Development Corporation Fund - - - 2,879,195 - 2,879,195
Nonmajor Governmental Funds 876,072 173,859 730,000 571,861 - 2,351,792
Water and Sewer Enterprise Fund 1,360,830 - - - - 1,360,830
Total transfers 2,635,219$ 173,859$ 15,368,170$ 10,397,852$ 2,500,000$ 31,075,100$
Transfers in:
During the year, interfund transfers were used for the following recurring items:
• Used to allocate indirect changes to other funds including the Southlake Parks Development
Corporation, Water and Sewer Enterprise Fu, and other nonmajor governmental funds to the
General Fund.
• Used to move revenues from the fund with collection authorization to the General Obligation Debt
Service Fund and other nonmajor debt service funds as debt service principal and interest
payments become due.
• Used to move funding for vehicle and equipment replacement from the General Fund to the
internal service fund.
• Used for funding annual subsidy for commercial vehicle enforcement.
City of Southlake, Texas
Notes to Basic Financial Statements
73
Further, during the year ended September 30, 2022, the City made the following one-time transfers:
• Transfer $14,538,170 from the General Fund to the General Capital Projects Fund for infrastructure
projects.
• Transfer $100,000 from the General Fund to the General Capital Projects Fund for public art.
• Transfer $730,000 from nonmajor governmental funds to the General Capital Projects Fund for
infrastructure projects.
• Transfers between nonmajor governmental funds of $571,861 to fund parks projects.
Note 7. Retirement Plan
A. Plan Description
The City participates as one of 901 plans in the nontraditional, joint contributory, hybrid defined benefit
pension plan administered by the Texas Municipal Retirement System (TMRS). TMRS is an agency created
by the State of Texas and administered in accordance with the TMRS Act, Subtitle G, Title 8, Texas
Government Code (the TMRS Act) as an agent multiple-employer retirement system for municipal
employees in the State of Texas. The TMRS Act places the general administration and management of
the System with a six-member Board of Trustees. Although the Governor, with the advice and consent of
the Senate, appoints the Board, TMRS is not fiscally dependent on the State of Texas. TMRS’ defined
benefit pension plan is a tax-qualified plan under Section 401(a) of the Internal Revenue Code. TMRS
issues a publicly available Annual Comprehensive Financial Report that can be obtained at
www.tmrs.com.
All eligible employees of the City are required to participate in TMRS.
B. Benefits Provided
TMRS provides retirement, and disability. Benefit provisions are adopted by the governing body of the
City, within the options available in the state statutes governing TMRS.
At retirement, the benefit is calculated as if the sum of the employee’s contributions, with interest, and
the city-financed monetary credits with interest were used to purchase an annuity. Members may choose
to receive their retirement benefit in one of seven payment options. Members may also choose to receive
a portion of their benefit as a Partial Lump Sum Distribution in an amount equal to 12, 24, or 36 monthly
payments, which cannot exceed 75% of the member’s deposits and interest.
At the date the plan began, the City granted monetary credits for service rendered before the plan
began of a theoretical amount at least equal to two times what would have been contributed by the
employee, with interest, prior to establishment of the plan. Monetary credits for service since the plan
began are a percent (100%, 150%, or 200%) of the employee's accumulated contributions. In addition,
the City can grant, as often as annually, another type of monetary credit referred to as an updated
service credit which is a theoretical amount which, when added to the employee's accumulated
contributions and the monetary credits for service since the plan began, would be the total monetary
credits and employee contributions accumulated with interest if the current employee contribution rate
and City matching percent had always been in existence and if the employee's salary had always been
the average of his salary in the last three years that are one year before the effective date. At retirement,
the benefit is calculated as if the sum of the employee's accumulated contributions with interest and the
employer-financed monetary credits with interest were used to purchase an annuity.
City of Southlake, Texas
Notes to Basic Financial Statements
74
Members can retire at ages 60 and above with 5 or more years of service or with 20 years of service. A
member is vested after 5 years. The plan provisions are adopted by the governing body of the City, within
the options available in the state statutes governing TMRS and within the actuarial constraints also in the
statutes.
At the December 31, 2021 valuation and measurement date, the following employees were covered by
the benefit terms:
Inactive employees or beneficiaries currently receiving benefits 155
I nactive employees entitled to but not yet receiving benefits 270
Active employees 356
781
C. Contributions
The contribution rates for employees in TMRS are either 5%, 6%, or 7% of employee gross earnings, and the
city matching percentages are either 100%, 150%, or 200%, both as adopted by the governing body of
the city. Under the state law governing TMRS, the contribution rate for each city is determined annually
by the actuary, using the Entry Age Normal (EAN) actuarial cost method. The actuarially determined rate
is the estimated amount necessary to finance the cost of benefits earned by employees during the year,
with an additional amount to finance any unfunded accrued liability.
Employees for the City were required to contribute 7% of their annual gross earnings during the fiscal year.
The contribution rates for the City were 12.39% and 12.33% in calendar years 2021 and 2022, respectively.
The City’s contributions to TMRS for the year ended September 30, 2022 were $3,610,307, and were greater
than the required contributions by $62,449.
D. Net Pension Liability
The City’s Net Pension Liability (NPL) was measured as of December 31, 2021 and the Total Pension Liability
(TPL) used to calculate the NPL was determined by an actuarial valuation as of that date.
Actuarial Assumptions
The Total Pension Liability in the December 31, 2021 actuarial valuation was determined using the
following actuarial assumptions:
Inflation 2.5% per year
Salary Increases 3.50% to 11.50% including inflation
Investment Rate of Return 6.75%, net of pension plan investment expense, including inflation
Actuarial Cost Method Entry Age Normal
Amortization Method Level percentage of payroll; closed
There were no benefit changes during the year.
City of Southlake, Texas
Notes to Basic Financial Statements
75
Salary increases were based on a service-related table. Mortality rates for post-retirement were based on
the 2020 Municipal Retirees of Texas Mortality Tables. The rates are projected on a fully generational basis
with scale UMP. Mortality rates for pre-retirement were based on PUB(10) mortality tables, with the Public
Safety table used for males and the General Employee table used for females. The rates are projected
on a fully generational basis with scale UMP.
Actuarial assumptions used in the December 31, 2021 valuation were developed primarily from the
actuarial investigation of the experience of TMRS over the four-year period from December 31, 2014 to
December 31, 2019. They were first adopted in 2019 and first used in the December 31, 2019 actuarial
valuation.
The long-term expected rate of return on pension plan investments was determined using a building-
block method in which best estimate ranges of expected future real rates of return (expected returns, net
of pension plan investment expense and inflation) are developed for each major asset class. These ranges
are combined to produce the long-term expected rate of return by weighting the expected future real
rates of return by the target asset allocation percentage and by adding expected inflation. In
determining their best estimate of a recommended investment return assumption under the various
alternative asset allocation portfolios, GRS focused on the area between (1) arithmetic mean (aggressive)
without an adjustment for time (conservative) and (2) the geometric mean (conservative) with an
adjustment for time (aggressive).
The target allocation and best estimates of arithmetic real rates of return for each major asset class are
summarized in the following table:
Long-Term
Expected Real
Target Rate of Return
Asset Class Allocation (Arithmetic)
Global Equity 35.0%7.55%
Core Fixed Income 6.0%2.00%
Non-Core Fixed Income 20.0%5.68%
Other public and private markets 12.0%7.22%
Real Estate 12.0%6.85%
Hedge funds 5.0%5.35%
Private Equity 10.0%10.00%
Total 100.0%
Discount Rate
The discount rate used to measure the Total Pension Liability was 6.75%. The projection of cash flows used
to determine the discount rate assumed that employee and employer contributions will be made at the
rates specified in statute. Based on that assumption, the pension plan’s Fiduciary Net Position was
projected to be available to make all projected future benefit payments of current active and inactive
employees. Therefore, the long-term expected rate of return on pension plan investments was applied
to all periods of projected benefit payments to determine the Total Pension Liability.
Allocations
The City’s net pension liability, pension expense, and deferred outflows and inflows of resources related
to TMRS have been allocated between governmental activities and business-type activities using a
contribution-based method.
City of Southlake, Texas
Notes to Basic Financial Statements
76
Changes in the Net Pension Liability
Increase
Total (Decrease) Net
Pension Plan Fiduciary Pension
Liability Net Position Liability
(a)(b)(a) - (b)
Balance at 12/31/2020 120,255,557$ 111,766,124$ 8,489,433$
Changes for the year:
Service Cost 4,328,436 - 4,328,436
Interest 8,133,486 - 8,133,486
Change of benefit terms - - -
Difference between expected
and actual experience 426,450 - 426,450
Changes of assumptions - - -
Contributions - employer - 3,348,713 (3,348,713)
Contributions - employee - 1,871,403 (1,871,403)
Net investment income - 14,591,844 (14,591,844)
Benefit payments, including refunds
of employee contributions (3,847,375) (3,847,375) -
Administrative expense - (67,416) 67,416
Other changes - 462 (462)
Net Changes 9,040,997 15,897,631 (6,856,634)
Balance at 12/31/2021 129,296,554$ 127,663,755$ 1,632,799$
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
The following presents the net pension liability of the City, calculated using the discount rate of 6.75%, as
well as what the City’s net pension liability would be if it were calculated using a discount rate that is 1
percentage-point lower (5.75%) or 1 percentage-point higher (7.75%) than the current rate:
1% Decrease 1% Increase
in Discount Discount in Discount
Rate (5.75%) Rate (6.75%) Rate (7.75%)
Net pension liability 21,959,204$ 1,632,799$ (14,877,454)$
Pension Plan Fiduciary Net Position
Detailed information about the pension plan’s Fiduciary Net Position is available in a separately-issued
TMRS financial report. That report may be obtained at www.tmrs.com.
City of Southlake, Texas
Notes to Basic Financial Statements
77
E. Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to
Pensions
For the year ended September 30, 2022, the City recognized pension expense of $1,044,738. At
September 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources
related to pensions from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and actual economic experience 603,589$ -$
Changes in actuarial assumptions 133,528 -
Difference between projected and actual investment earnings - 7,475,927
Contributions subsequent to the measurement date 2,806,450 -
Total 3,543,567$ 7,475,927$
The $2,806,450 reported as deferred outflows of resources related to pensions result from contributions
subsequent to the measurement date and will reduce the net pension liability during the fiscal year ended
September 30, 2023. The other amounts reported as deferred outflows and inflows of resources related
to pensions will be recognized in pension expense as follows:
Fiscal
Year Ended
Sept. 30
2023 (1,055,514)$
2024 (2,849,791)
2025 (1,469,672)
2026 (1,363,833)
Total (6,738,810)$
Note 8. Other Postemployment Benefits (OPEB)
The City of Southlake provides for two other post-employment benefit (OPEB) plans; one provides for
postemployment health insurance benefits through an agent-multiple employer defined benefit medical
plan (Southlake Retiree Health Care Plan), and the other is the Texas Municipal Retirement System
Supplemental Death Benefits Fund, a single employer defined benefit OPEB plan. Both plans are
described in detail below. Aggregate amounts for the two OPEB plans are as follows:
Retiree
Healthcare TMRS
Plan SDBF Total
OPEB liability (asset)(717,407)$ 1,142,695$ 425,288$
Deferred outflows of resources 474,311 256,921 731,232
Deferred inflows of resources 546,940 88,324 635,264
OPEB expense (302,302) 111,995 (190,307)
City of Southlake, Texas
Notes to Basic Financial Statements
78
City of Southlake Retiree Health Care Plan
Plan Description
The City provides other post-employment healthcare benefits in accordance with City policy.
Administration of the City of Southlake Retiree Healthcare Plan trust is through Public Agency Retirement
Services (PARS) with an IRC Section 115 Irrevocable Exclusive Benefit Trust. Trustee for the plan is US Bank.
Ultimate authority for investment decisions and actions necessary to maintain the City’s participation in
the program resides with the City Manager, appointed as Plan Administrator through a 2009 resolution of
the City Council. Investment strategy is currently through the City’s selection of PARS Moderately
Conservative High Mark Plus.
A third-party administrator is utilized to provide claims administration and payment of claims. Insurance is
purchased to provide specific stop loss and aggregate stop loss protection. A separate financial
statement is not issued for the plan.
Benefits Provided
Regular full-time employees retiring from the City of Southlake have the option to continue medical
insurance coverage until the retiree becomes eligible for Medicare or is eligible to be covered under
another medical plan. The City contributes $125 per month towards the premium for retiree insurance
coverage or $225 towards the premium for retirees and dependents. Recommendations for plan benefits
are presented to City Council for their approval during the annual budget process.
Employees Covered by Benefit Terms
The following table provides a summary of the number of participants in the plan as of December 31,
2021:
Inactive employees currently receiving benefits 6
Inactive employees entitled to but not yet receiving benefits 0
Active Employees 343
349
Contributions
The City’s contributions during the fiscal year ending September 30, 2022 were $229,678 and were greater
than the required contributions by $84,950. The benefit payments were determined in a manner similar to
how the benefit payments for the measurement period were developed. The City through its budgeting
process determines the annual contributions to the Plan based on the actuarially determined contribution
and the availability of funds.
Net OPEB Asset
The City’s total OPEB asset is based on an actuarial valuation performed as of December 31, 2021.
City of Southlake, Texas
Notes to Basic Financial Statements
79
Actuarial Assumptions
The total OPEB asset in the December 31, 2021 actuarial valuation was determined using the following
actuarial assumptions, applied to all periods included in the measurement:
Actuarial Cost Method Individual Entry-Age Normal
Amortization method
Level dollar. Closed bases are established at each
valuation for new unfunded liabilities.
Amortization period 8 years as of September 30, 2022
Asset valuation Market value
Investment rate of return
5.50%, net of investment expenses, including
inflation
Inflation rate 2.50% per year
Salary Increases 3.50% to 10.50% including inflation
Demographic Assumptions Based on the experience study covering the four-
year period ending December 31, 2014 as
conducted for the Texas Municipal Retirement
System (TMRS).
Mortality For healthy retirees, the gender-distinct RP2000
Combined Healthy Mortality Tables with Blue Collar
Adjustment are used with male rates multiplied by
109% and female rates multiplied by 103%. The rates
are projected on a fully generational basis by scale
BB to account for future mortality improvements.
Participation Rates 30% of employees who retire at age 55 or older, or
retire through disability retirement at any age, were
assumed to maintain their health coverage after
retirement.
Healthcare Cost trend rates Initial rates of 7.20% declining to ultimate rates of
4.25% after 15 years.
Single Discount Rate. Projected benefit payments are required to be discounted to their actuarial present
values using a Single Discount Rate that reflects (1) a long-term expected rate of return on OPEB plan
investments (to the extent that the plan’s fiduciary net position is projected to be sufficient to pay
benefits), and (2) tax-exempt municipal bond rate based on an index of 20-year general obligation bonds
with an average AA credit rating as of the measurement date (to the extent that the contributions for use
with the long-term expected rate of return are not met).
For the purpose of this valuation, the expected rate of return on OPEB plan investments is 5.0%; the
municipal bond rate is 1.84% (based on the daily rate closest to but not later than the measurement date
of the Fidelity “20-Year Municipal GO AA Index”); and the resulting Single Discount Rate is 5.0%.
The City’s has consistently funded the actuarially determined employer contribution, which is based on a
closed amortization policy. As a result, the plan’s fiduciary net position is projected to be sufficient to pay
benefits for all future years.
City of Southlake, Texas
Notes to Basic Financial Statements
80
Changes in the Net OPEB Asset
Total Plan Net
OPEB Fiduciary OPEB
(Asset) Liability Net Position (Asset) Liability
(a)(b)(a) - (b)
Balance at 12/31/2020 1,948,722$ 2,201,023$ (252,301)$
Changes for the year:
Service Cost 80,561 - 80,561
Interest 97,367 - 97,367
Difference between expected and
actual experience 6,855 - 6,855
Changes of assumptions (217,142) - (217,142)
Contributions - employer - 323,319 (323,319)
Net investment income - 117,346 (117,346)
Benefit payments, including refunds
of employee contributions (83,319) (83,319) -
Administrative expense - (7,918) 7,918
Net Changes (115,678) 349,428 (465,106)
Balance at 12/31/2021 1,833,044$ 2,550,451$ (717,407)$
Increase (Decrease)
Consistent with the requirements of GASB Statements No. 74, the employer contributions include
“amounts for OPEB as the benefits come due that will not be reimbursed to the employer using OPEB plan
assets.” The $83,319 in benefit payments was paid by the City using its own assets.
The plan fiduciary net position is 139% of the total OPEB liability as of the measurement date, resulting in
the Net OPEB asset.
The benefit payments during the measurement period were determined as follows:
City's explicit subsidy 12,775$
City's implicit subsidy (explicit subsidy * 5.522)70,544
Total benefit payments 83,319$
The 5.522 implicit factor equals the ratio of the expected implicit subsidy to the expected explicit subsidy.
Sensitivity of the Net OPEB Asset to Changes in the Discount Rate and Healthcare Cost Trend Rates
Regarding the sensitivity of the net OPEB asset to changes in the Single Discount Rate, the following
presents the plan’s net OPEB asset, calculated using a discount rate of 5.00%, as well as what the plan’s
net OPEB asset would be if it were calculated using a discount rate that is one percent lower or one
percent higher:
1% Increase
1% Decrease Discount in Discount
Rate (4.00%) Rate (5.00%) Rate (6.00%)
Net OPEB asset (555,348)$ (717,407)$ (863,077)$
City of Southlake, Texas
Notes to Basic Financial Statements
81
Regarding the sensitivity of the net OPEB asset to changes in the healthcare cost trend rates, the following
presents the plan’s net OPEB asset, calculated using the assumed trend rates as well as what the plan’s
net OPEB asset would be if it were calculated using a trend rate that is one percent lower or one percent
higher:
Current Healthcare
Cost Rate
1% Decrease Assumption 1% Increase
Net OPEB asset (904,065)$ (717,407)$ (496,127)$
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources
For the year ended December 31, 2021, the City recognized OPEB expense of $21,017. At September 30,
2022, the reported deferred outflows of resources and deferred inflows of resources related to OPEB from
the following sources:
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Difference between Expected and Actual Economic Experiences 16,011$ 267,432$
Changes in Assumptions 252,102 193,681
Investment Experience - 85,827
Contributions subsequent to the measurement date 206,198 -
474,311$ 546,940$
The $206,198 reported as deferred outflows of resources related to OPEB resulting from contributions
subsequent to the measurement date will increase the net OPEB asset during the year ending
September 30, 2023. Amounts reported as deferred outflows of resources and deferred inflows of
resources related to OPEB will be recognized in OPEB expense as follows:
Fiscal Year
Ended Sept. 30
2023 (38,756)$
2024 (62,596)
2025 (37,842)
2026 (18,185)
2027 (17,888)
Thereafter (103,560)
Total (278,827)$
Differences between expected and actual experience and changes in assumptions are recognized in
OPEB expense using a systematic and rational method over a closed period equal to the average of the
expected remaining service lives of all employees that are provided with OPEB through the OPEB plan
(active employees and inactive employees) determined as of the beginning of the measurement period.
The expected remaining service lives of all active employees in the plan were approximately 3,230 years.
Additionally, the total plan membership (active employees and inactive employees) was 349. As a result,
the average of the expected remaining service lives for purposes of recognizing the applicable deferred
outflows and inflows of resources established in the current measurement period is 9.2554 years.
City of Southlake, Texas
Notes to Basic Financial Statements
82
Additionally, differences between projected and actual earnings on OPEB plan investments should be
recognized in OPEB expense using a systematic and rational method over a closed five-year period. For
this purpose, the deferred outflows and inflows of resources are recognized in the OPEB expense as a level
dollar amount over the closed period identified above.
Other Post Employment Benefits Supplemental Death Benefit Fund
Plan Description
Texas Municipal Retirement System (“TMRS”) administers a defined benefit group-term life insurance plan
known as the Supplemental Death Benefits Fund (“SDBF”). This is a voluntary program in which
participating member cities may elect, by ordinance, to provide group-term life insurance coverage for
their active members, including or not including retirees. Employers may terminate coverage under and
discontinue participation in the SDBF by adopting an ordinance before November 1 of any year to be
effective the following January 1. The City has elected to participate in the SDBF for its active members
including retirees. As the SDBF covers both active and retiree participants, with no segregation of assets,
the SDBF is considered to be an unfunded single-employer OPEB plan (i.e. no assets are accumulated in
a trust that meets the criteria in paragraph 4 of GASB Statement No. 75) for City reporting.
Benefits Provided
The death benefit for active employees provides a lump-sum payment approximately equal to the
employee’s annual salary (calculated based on the employee’s actual earnings, for the 12-month period
preceding the month of death). The death benefit for retirees is considered an other postemployment
benefit (“OPEB”) and is a fixed amount of $7,500.
At the December 31, 2021 valuation and measurement date, the following employees were covered by
the benefit terms:
Inactive employees currently receiving benefits 105
Inactive employees entitled to but not yet receiving benefits 75
Active Employees 356
536
Contributions
The member city contributes to the SDBF at a contractually required rate as determined by an annual
actuarial valuation. The rate is equal to the cost of providing one-year term life insurance. The funding
policy for the SDBF program is to assure that adequate resources are available to meet all death benefit
payments for the upcoming year. The intent is not to pre-fund retiree term life insurance during
employees’ entire careers.
Contributions are made monthly based on the covered payroll of employee members of the
participating member city. The contractually required contribution rate is determined annually for each
city. The rate is based on the mortality and service experience of all employees covered by the SDBF and
the demographics specific to the workforce of the city. There is a one-year delay between the actuarial
valuation that serves as the basis for the employer contribution rate and the calendar year when the rate
goes into effect. The funding policy of this plan is to assure that adequate resources are available to meet
all death benefit payments for the upcoming year.
City of Southlake, Texas
Notes to Basic Financial Statements
83
The retiree portion of contribution rates to the SDBF for the City was 0.05% and 0.14% in calendar years
2021 and 2022, respectively. The City’s contributions to the SDBF for the year ended September 30, 2022
were $21,326, and were equal to the required contributions.
Total OPEB Liability
The City’s Total OPEB Liability (TOL) was measured as of December 31, 2021 and was determined by an
actuarial valuation as of that date.
Actuarial Assumptions
The Total OPEB Liability in the December 31, 2021 actuarial valuation was determined using the following
actuarial assumptions:
Inflation 2.5% per year
Salary increases 3.5% to 11.5% including inflation
Discount rate 1.84%
Retiree's share of benefit-related costs $0
Actuarial cost method Entry Age Normal
Amortization Method Level percentage of payroll; closed
Salary increases were based on a service-related table. Mortality rates for service retirees were based on
the 2019 Municipal Retirees of Texas Mortality Tables. The rates are projected on a fully generational basis
with scale UMP. Mortality rates for disabled retirees were based on 2019 Municipal Retirees of Texas
Mortality Tables with a 4-year set-forward for males and a 3-year set-forward for females. In addition, a
3.5% and 3% minimum mortality rate will be applied to reflect the impairment for younger members who
become disabled for males and females, respectively. The rates are projected on a fully generational
basis with scale UMP to account for future mortality improvements subject to the floor.
Actuarial assumptions used in the December 31, 2021 valuation were developed primarily from the
actuarial investigation of the experience of TMRS over the four-year period from December 31, 2014 to
December 31, 2018. They were first adopted in 2019 and first used in the December 31, 2019 actuarial
valuation.
The discount rate used to measure the Total OPEB Liability was 1.84% and was based on the Fidelity Index’s
“20-Year Municipal GO AA Index” rate as of December 31, 2021.
Changes in Total OPEB Liability
Total OPEB Liability
Balances as of 12/31/2020 1,055,838$
Changes for the year:
Service cost 66,103
Interest 21,646
Difference between expected and
actual experience (26,578)
Changes of assumptions 38,907
Contributions - employer (13,221)
Net Changes 86,857
Balances as of 12/31/2021 1,142,695$
City of Southlake, Texas
Notes to Basic Financial Statements
84
Sensitivity of the Total OPEB Liability to Changes in the Discount Rate
The following presents the total OPEB liability of the City, calculated using the discount rate of 2.00%, as
well as what the City’s total OPEB liability would be if it were calculated using a discount rate that is 1
percentage-point lower (0.84%) or 1 percentage-point higher (2.84%) than the current rate:
1% Decrease
(0.84%)
Discount Rate
(1.84%)
1% Increase
(2.84%)
Total OPEB liability 1,426,617$ 1,142,695$ 925,449$
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
For the year ended September 30, 2022, the City recognized OPEB expense of $125,216. At
September 30, 2022, the City reported deferred outflows and inflows of resources related to the OPEB plan
from the following sources:
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Difference between expected and actual economic experiences -$ 64,099$
Changes in actuarial assumptions 245,749 24,225
Contributions subsequent to the measurement date 11,172 -
256,921$ 88,324$
The $11,172 reported as deferred outflows of resources related to the OPEB plan resulting from
contributions subsequent to the measurement date will reduce the Total OPEB liability during the year
ending September 30, 2023.
The other amounts reported as deferred outflows and inflows of resources related to the OPEB plan will
be recognized in OPEB expense as follows:
Fiscal Year
Ended Sept. 30
2023 37,467$
2024 37,467
2025 28,650
2026 38,574
2027 14,356
Thereafter 911
Total 157,425$
Note 9. Deferred Compensation Plan
The City offers its employees a deferred compensation plan created in accordance with Internal
Revenue Code Section 457. The plan, available to all City employees, permits them to defer a portion of
their salary until future years. The deferred compensation is not available to employees until termination,
retirement, death, or unforeseeable emergency.
City of Southlake, Texas
Notes to Basic Financial Statements
85
All amounts of compensation deferred under the plan, all property and rights purchased with such
amounts, and all income attributable to such amounts, property, or rights are held in trust or under one or
more annuity contracts described in Internal Revenue Code Section 401(f). Except as may otherwise be
permitted or required by law, no assets or income of the plan shall be used for, or diverted to, purposes
other than for the exclusive purpose of providing benefits for participants and their beneficiaries or
defraying reasonable expenses of administration of the plan. In accordance with GASB 97, the plans as
amended are not included in the City’s financial statements.
Note 10. Risk Financing and Insurance
The City is exposed to various risks of loss related to torts, theft of, damage to, and destruction of assets;
errors and omissions; injuries to employees; and natural disasters. During the fiscal year 1990, the City joined
the Texas Municipal League Workers Compensation Joint Insurance Fund (“the Pool”) for risks related to
employees. Premiums are paid to the Pool, which retains a limit of loss. Reinsurance companies insure the
risks beyond those limits. The City retains, as a risk, only the deductible amount of each policy. The City
continues to carry commercial insurance with Texas Municipal League provided by Mutual of Omaha for
other risks including general liability, property, and errors and omissions. There were no significant
reductions in coverage in the past year and there were no settlements exceeding insurance coverage
in any of the past three years.
Note 11. Commitments and Contingencies
The City has entered into various contracts with the Trinity River Authority (TRA) and other cities. Terms of
the agreements provide the City will pay an amount equal to its proportional share of maintenance and
operations and debt service based upon volumes of wastewater transported, treated, or disposed of.
The City’s proportional share of future costs under these contracts is indeterminable and has not been
recorded. Payments to the TRA under these contracts for the year ended September 30, 2022 were
$5,227,729.
The City has authorized various contracts obligating future funds of the City as the contracted services
are performed. Significant amounts unexpended under such contracts at year-end are reflected as
reserves for authorized contracts in the applicable funds.
The City has certain claims and litigation pending with respect to matters arising in the normal course of
operations. City management is of the opinion that the settlement of these matters will not have a
material adverse impact on the City’s financial statements.
Note 12. Tax Abatement
The City enters into economic development agreements authorized under Chapter 380 of the Texas Local
Government Code. These agreements are planning tools designed to stimulate economic activity,
redevelopment, community improvement, and provide a return on investment for the community. These
programs abate or rebate property and/or sales taxes and may include other incentive payments such
as fee reductions or construction cost reimbursements. Economic development agreements are
considered on a case-by-case basis by the City Council and generally contain recapture provisions,
which may require repayment or termination if recipients do not meet the required provisions of the
economic incentives.
Chapter 380 of the Texas Local Government Code allows the City to provide grants for the purpose of
promoting local economic development. These grants are based on a percentage of property and/or
sales tax received by the City. For the fiscal year ending September 30, 2022, the City rebated $324,319
in sales taxes, $151,766 in property taxes, and $256,305 in hotel occupancy taxes.
86
87
Required Supplementary Information
88
89
Budgetary Comparison General Fund
City of Southlake, Texas Exhibit A-1
General Fund
Budgetary Comparison Schedule (GAAP Basis)
For the Year Ended September 30, 2022
See Notes to Budgetary Comparison Schedules
90
VARIANCE WITH
FINAL BUDGET -
POSITIVE
ORIGINAL FINAL ACTUAL (NEGATIVE)
REVENUES
Ad valorem taxes, penalties and interest 26,662,376$ 26,662,376$ 26,713,569$ 51,193$
Franchise taxes 2,825,446 2,957,795 2,988,874 31,079
Municipal sales and mixed beverage tax 16,405,450 19,715,165 21,047,369 1,332,204
License, permits and fees 1,202,100 2,499,000 2,855,591 356,591
Charges for services 1,648,338 1,816,955 1,997,797 180,842
Fines and forfeitures 908,500 908,000 973,523 65,523
Grants 72,000 397,142 574,254 177,112
Investment income (losses)141,405 37,150 (162,864) (200,014)
Contributions 5,000 30,000 40,986 10,986
Miscellaneous 188,000 188,000 191,266 3,266
Total revenues 50,058,615 55,211,583 57,220,365 2,008,782
EXPENDITURES
General government
City secretary/mayor 579,151 593,383 587,120 6,263
City manager's office 1,039,414 1,081,377 1,085,236 (3,859)
Human resources 898,627 912,815 874,724 38,091
Support services 4,677,607 4,486,203 4,247,552 238,651
Economic development 490,495 543,193 361,298 181,895
Finance 1,578,154 1,685,224 1,607,797 77,427
Municipal court 797,220 799,259 757,460 41,799
Teen court 169,326 176,930 161,550 15,380
Information technology 4,113,280 4,041,373 3,172,551 868,822
Public safety
Police services 7,621,868 5,199,827 4,132,359 1,067,468
Fire services 9,901,234 7,515,253 6,705,764 809,489
Public safety support 1,529,464 1,602,114 1,494,011 108,103
Public works
Public works administration 2,241,100 2,241,572 1,932,212 309,360
Streets and drainage 1,128,593 1,137,844 1,006,161 131,683
Planning 1,175,810 1,223,348 1,184,574 38,774
Building inspection 1,170,606 1,172,042 1,114,921 57,121
Culture and recreation
Community services 1,435,531 1,449,832 1,329,819 120,013
Parks and recreation 4,086,236 4,157,343 3,855,677 301,666
Library services 905,449 926,733 917,538 9,195
Capital Outlay 926,712 646,201 945,293 (299,092)
Debt Service
Principal - - 114,636 (114,636)
Interest - - 11,638 (11,638)
Total expenditures 46,465,877 41,591,866 37,599,891 3,991,975
Excess of revenues over expenditures 3,592,738 13,619,717 19,620,474 6,000,757
OTHER FINANCING SOURCES (USES)
Sale of capital assets - - 52,124 52,124
Transfers from other funds 2,129,660 14,223,389 2,635,219 (11,588,170)
Transfers to other funds (6,250,000) (28,876,340) (17,288,170) 11,588,170
Total other financing sources (uses)(4,120,340) (14,652,951) (14,600,827) 52,124
Net change in fund balance (527,602) (1,033,234) 5,019,647 6,052,881
Cumulative effect of change
in accounting principle - - 368,213 368,213
Fund balances, beginning of year
as restated 44,093,776 44,093,776 44,093,776 -
FUND BALANCES, END OF YEAR 43,566,174$ 43,060,542$ 49,113,423$ 6,052,881$
BUDGETED AMOUNTS
City of Southlake, Texas Exhibit A-2
Southlake Parks Development Corporation Special Revenue Fund
Budgetary Comparison Schedule (GAAP Basis)
For the Year Ended September 30, 2022
See Notes to Budgetary Comparison Schedules
91
VARIANCE WITH
FINAL BUDGET -
POSITIVE
ORIGINAL FINAL ACTUAL (NEGATIVE)
REVENUES
Municipal sales tax 8,140,300$ 9,800,000$ 10,610,993$ 810,993$
Miscellaneous - - 133,099 133,099
Investment income (losses)8,400 4,100 (11,760) (15,860)
Total revenues 8,148,700 9,804,100 10,732,332 928,232
EXPENDITURES
Parks and recreation 1,645,223 1,648,048 1,657,795 (9,747)
Capital outlay 190,200 190,000 62,404 127,596
Total expenditures 1,835,423 1,838,048 1,720,199 117,849
Excess of revenues over expenditures 6,313,277 7,966,052 9,012,133 1,046,081
OTHER FINANCING USES
Transfers to other funds (7,128,897) (7,195,113) (7,195,113) -
Net change in fund balance (815,620) 770,939 1,817,020 1,046,081
Cumulative effect of change
in accounting principle - - 35,971 35,971
Fund balances, beginning of year,
as restated 12,199,419 12,199,419 12,199,419 -
FUND BALANCE, END OF YEAR 11,383,799$ 12,970,358$ 14,016,439$ 1,046,081$
BUDGETED AMOUNTS
City of Southlake, Texas Exhibit A-3
Tax Increment Financing District Special Revenue Fund
Budgetary Comparison Schedule (GAAP Basis)
For the Year Ended September 30, 2022
See Notes to Budgetary Comparison Schedules
92
VARIANCE WITH
FINAL BUDGET -
POSITIVE
ORIGINAL FINAL ACTUAL (NEGATIVE)
REVENUES
Ad valorem taxes, penalties and interest 10,080,279$ 9,228,696$ 9,343,619$ 114,923$
Investment income (losses)3,990 2,500 (12,950) (15,450)
Total revenues 10,084,269 9,231,196 9,330,669 99,473
EXPENDITURES
General government:
Support services 645,076 645,076 586,380 58,696
Public safety:
Police services 295,660 370,893 372,628 (1,735)
Intergovernmental 6,698,319 5,934,584 5,934,584 -
Capital outlay 1,415,000 1,415,000 1,415,000 -
Total expenditures 9,054,055 8,365,553 8,308,592 56,961
Excess of revenues over expenditures 1,030,214 865,643 1,022,077 156,434
Net change in fund balance 1,030,214 865,643 1,022,077 156,434
Fund balance, beginning of year 5,641,893 5,641,893 5,641,893 -
FUND BALANCE, END OF YEAR 6,672,107$ 6,507,536$ 6,663,970$ 156,434$
BUDGETED AMOUNTS
City of Southlake, Texas Exhibit A-4
Community Enhancement Development Corporation Special Revenue Fund
Budgetary Comparison Schedule (GAAP Basis)
For the Year Ended September 30, 2022
See Notes to Budgetary Comparison Schedules
93
VARIANCE WITH
FINAL BUDGET -
POSITIVE
ORIGINAL FINAL ACTUAL (NEGATIVE)
REVENUES:
Municipal sales tax 6,006,256$ 7,350,000$ 7,859,995$ 509,995$
Charges for services 2,878,141 3,343,765 3,512,532 168,767
Investment income (losses)13,100 4,500 (31,727) (36,227)
Contributions 7,711 5,711 4,982 (729)
Miscellaneous - - 183 183
Total revenues 8,905,208 10,703,976 11,345,965 641,989
EXPENDITURES:
Culture and recreation
Parks and recreation 4,504,910 4,867,823 4,426,956 440,867
Total expenditures 4,504,910 4,867,823 4,426,956 440,867
Excess of revenues over expenditures 4,400,298 5,836,153 6,919,009 1,082,856
OTHER FINANCING USES:
Transfers to other funds (2,807,244) (5,775,995) (2,719,195) 3,056,800
Total other financing uses (2,967,244) (2,879,195) (2,879,195) -
Net changes in fund balance 1,433,054 2,956,958 4,039,814 1,082,856
Fund balances, beginning of year 12,628,611 12,628,611 12,628,611 -
FUND BALANCES, END OF YEAR 14,061,665$ 15,585,569$ 16,668,425$ 1,082,856$
BUDGETED AMOUNTS
City of Southlake, Texas
Notes to Budgetary Comparison Schedules
For the Fiscal Year Ended September 30, 2022
94
Budgetary Data
The City Council adheres to the following procedures in establishing the budgets reflected in the financial
statements:
1. Each year the City Manager is required to submit to the City Council, between sixty and ninety
days prior to the beginning of each fiscal year, a proposed budget for the fiscal year beginning
on the following October 1. The operating budget includes proposed expenditures and the means
of financing them.
2. Public hearings are conducted to obtain taxpayers' comments.
3. Prior to October 1, the budget is legally enacted by the City Council through passage of an
ordinance.
4. Annual budgets are legally adopted for the General Fund, the Tax Increment Financing District,
Community Enhancement Development Corporation, Crime Control District, Parks Dedication,
Hotel Occupancy, Storm Water Utility, Red Light Camera, Parks and Recreation, Court Security,
Court Technology, Library, Commercial Vehicle Enforcement, and Southlake Parks Development
Corporation Special Revenue Funds and all Debt Service Funds on a basis consistent with
accounting principles generally accepted in the United States of America. Formal budgetary
integration is not employed for proprietary funds. However, the City does adopt an annual budget
for those funds for managerial control.
5. During the fiscal year, the City Council may transfer funds allocated to a department to another
department or re-estimate revenues or expenditures. The City Manager may transfer budgeted
funds within a department. Expenditures should not exceed appropriations at the department
level.
6. Budgetary data for the Police, Municipal Jury, Oil and Gas, Truancy Prevention, Disaster Recovery,
and all Capital Projects Funds are not presented, as such funds are budgeted over the life of the
respective project, and not on an annual basis. Budgetary information for the Proprietary Funds
has not been presented since reporting on such budgets is not legally required.
7. General Fund reported expenditures in excess of appropriations for the year ended
September 30, 2022 as follows:
• City manager’s office - ($3,859)
Due to additional employee and changes in employee insurance coverage.
• Capital outlay - ($299,092)
Due to implementation of GASB 87, not a true cash flow expenditure over budget.
• Debt service: Principal - ($114,636)
Due to implementation of GASB 87, not a true cash flow expenditure over budget.
• Debt service: Interest - ($11,638)
Due to implementation of GASB 87, not a true cash flow expenditure over budget.
City of Southlake, Texas Exhibit A-5
Schedule of Changes in Net Pension Liability
and Related Ratios
Texas Municipal Retirement System
Last Eight Measurement Years
95
Measurement
Year
Measurement
Year
Measurement
Year
Measurement
Year
Measurement
Year
Measurement
Year
Measurement
Year
Measurement
Year
2021 2020 2019 2018 2017 2016 2015 2014
T otal pension liability:
Service cost 4,328,436$ 4,289,132$ 4,190,311$ 3,919,389$ 3,579,734$ 3,482,384$ 3,222,126$ 2,906,949$
Interest 8,133,486 7,554,362 6,945,183 6,379,342 5,865,601 5,393,997 5,090,308 4,779,462
Changes of benefit terms - - - - - - - -
Difference between expected and actual
experience 426,450 39,572 250,630 537,249 213,937 179,076 102,364 (1,602,645)
Change in assumptions - - 324,280 - - - 760,500 -
Benefit payments, including refunds of
employee contributions (3,847,375) (2,798,825) (2,671,062) (2,506,166) (1,930,078) (2,304,726) (1,921,361) (1,680,030)
Net change in total pension liability 9,040,997 9,084,241 9,039,342 8,329,814 7,729,194 6,750,731 7,253,937 4,403,736
Total pension liability - beginning 120,255,557 111,171,316 102,131,974 93,802,160 86,072,966 79,322,235 72,068,298 67,664,562
Total pension liability - ending (a)129,296,554 120,255,557 111,171,316 102,131,974 93,802,160 86,072,966 79,322,235 72,068,298
Plan fiduciary net position:
Contributions - employer 3,348,713 3,322,051 3,212,690 2,992,110 2,682,629 2,595,919 2,425,455 2,283,310
Contributions - employee 1,871,403 1,829,612 1,773,541 1,673,450 1,520,518 1,480,965 1,409,008 1,340,870
Net investment income 14,591,844 7,731,319 13,337,326 (2,598,044) 10,284,603 4,588,256 97,252 3,463,018
Benefit payments, including refunds of
employee contributions (3,847,375) (2,798,825) (2,671,062) (2,506,166) (1,930,078) (2,304,726) (1,921,361) (1,680,030)
Administrative expense (67,416) (49,969) (75,264) (50,164) (53,258) (51,781) (59,224) (36,150)
Other 462 (1,950) (2,262) (2,623) (2,699) (2,790) (2,925) (2,972)
Net change in plan fiduciary net position 15,897,631 10,032,238 15,574,969 (491,437) 12,501,715 6,305,843 1,948,205 5,368,046
Plan fiduciary net position - beginning 111,766,124 101,733,886 86,158,917 86,650,354 74,148,639 67,842,796 65,894,591 60,526,545
Plan fiduciary net position - ending (b)127,663,755 111,766,124 101,733,886 86,158,917 86,650,354 74,148,639 67,842,796 65,894,591
Net pension liability - ending (a) - (b)1,632,799$ 8,489,433$ 9,437,430$ 15,973,057$ 7,151,806$ 11,924,327$ 11,479,439$ 6,173,707$
Plan fiduciary net position as a
percentage of total pension liability 98.74%92.94%91.51%84.36%92.38%86.15%85.53%91.43%
Covered payroll 26,441,262$ 26,137,309$ 25,334,408$ 23,710,761$ 21,721,689$ 21,156,637$ 20,113,150$ 19,154,225$
Net pension liability as a percentage
of covered payroll 6.18%32.48%37.25%67.37%32.92%56.36%57.07%32.23% Note: Only eight years of data is presented in accordance with GASB #68, paragraph 138. “The information for all periods for the 10-year
schedules that are required to be presented as required supplementary information may not be available initially. In these cases, during the
transition period, that information should be presented for as many periods as are available. The schedules should not include information that
is not measured in accordance with the requirements of this statement.” Additional years’ information will be displayed as it becomes available.
City of Southlake, Texas Exhibit A-6
Schedule of Pension Contributions
Texas Municipal Retirement System
Last Eight Fiscal Years
96
Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year
2022 2021 2020 2019 2018 2017 2016 2015
A ctuarially determined contribution 3,547,858$ 3,244,987$ 3,131,667$ 3,101,504$ 2,829,615$ 2,580,380$ 2,508,791$ 2,439,627$
Contribution in relation of the actuarially
determined contribution 3,610,307 3,297,682 3,201,451 3,182,749 2,894,219 2,654,303 2,632,209 2,439,627
Contribution deficiency (excess)(62,449)$ (52,695)$ (69,784)$ (81,245)$ (64,604)$ (73,923)$ (123,418)$ -$
Covered payroll 28,738,669$ 26,156,402$ 25,202,798$ 25,156,408$ 23,132,172$ 21,525,552$ 21,551,426$ 20,034,712$
Contributions as a percentage of
covered payroll 12.56% 12.61% 12.70% 12.65% 12.51% 12.33% 12.21% 12.18%
Note: GASB #68, paragraph 81.2.b requires that the data in this schedule be presented as of the City’s fiscal year as opposed to the time
period covered by the measurement date.
Note: Only eight years of data is presented in accordance with GASB #68, paragraph 138. “The information for all periods for the 10-year
schedules that are required to be presented as required supplementary information may not be available initially. In these cases, during the
transition period, that information should be presented for as many periods as are available. The schedules should not include information that
is not measured in accordance with the requirements of this statement.” Additional years’ information will be displayed as it becomes available.
City of Southlake, Texas Exhibit A-7
Schedule of Changes in Net OPEB Liability (Asset) and Related Ratios
Southlake Net OPEB Liability (Asset) for Health Insurance
Last Five Measurement Years
97
Measurement
Year
Measurement
Year
Measurement
Year
Measurement
Year
Measurement
Year
2021 2020 2019 2018 2017
T otal OPEB liability (asset):
Service cost 80,561$ 73,365$ 66,950$ 53,239$ 55,061$
Interest 97,367 114,848 108,953 87,706 84,496
Changes of benefit terms - - - - -
Difference between expected and actual
experience 6,855 (337,496) (1,262) 16,549 (3,965)
Change in assumptions (217,142) 87,222 8,001 297,855 -
Benefit payments, including refunds of
employee contributions (83,319) (81,362) (75,967) (75,843) (76,779)
Net change in total OPEB liability (asset)(115,678) (143,423) 106,675 379,506 58,813
Total OPEB liability (asset) - beginning 1,948,722 2,092,145 1,985,470 1,605,964 1,547,151
Total OPEB liability (asset) - ending (a)1,833,044 1,948,722 2,092,145 1,985,470 1,605,964
Plan fiduciary net position:
Contributions - employer 323,319 321,362 165,967 172,843 116,779
Net investment income 117,346 201,804 207,145 (38,598) 121,500
Benefit payments, including refunds of
employee contributions (83,319) (81,362) (75,967) (75,843) (76,779)
Administrative expense (7,918) (6,098) (5,348) (4,389) (3,483)
Net change in plan fiduciary net position 349,428 435,706 291,797 54,013 158,017
Plan fiduciary net position - beginning 2,201,023 1,765,317 1,473,520 1,419,507 1,261,490
Plan fiduciary net position - ending (b)2,550,451 2,201,023 1,765,317 1,473,520 1,419,507
Net OPEB liability (asset)- ending (a) - (b)(717,407)$ (252,301)$ 326,828$ 511,950$ 186,457$
Plan fiduciary net position as a
percentage of total OPEB liability (asset)139.14%112.95%84.38%74.22%88.39%
Covered payroll 27,287,214$ 26,994,043$ 26,143,074$ 22,468,011$ 20,607,676$
Net OPEB liability (asset)as a percentage
of covered payroll -2.63%-0.93%1.25%2.28%0.90% Note: Only five years of data is presented in accordance with GASB #75. Additional years’ information
will be displayed as it becomes available.
City of Southlake, Texas Exhibit A-8
Schedule of Contributions
Southlake Net OPEB Liability for Health Insurance
Last Five Fiscal Years
98
Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year
2022 2021 2020 2019 2018
Actuarially determined contribution 144,728$ 142,458$ 140,254$ 89,240$ 89,240$
Contribution in relation of the actuarially
determined contribution 229,678 332,082 301,318 177,639 168,167
Contribution deficiency (excess)(84,950)$ (189,624)$ (161,064)$ (88,399)$ (78,927)$
Covered payroll 22,062,303$ 25,882,453$ 24,988,882$ 24,537,271$ 23,132,172$
Contributions as a percentage of
covered payroll 1.04%1.28%1.21%0.72%0.73% Note: Only five years of data is presented in accordance with GASB #75. Additional years’ information
will be displayed as it becomes available.
City of Southlake, Texas Exhibit A-9
Schedule of Changes in the Total OPEB Liability and Related Ratios
Texas Municipal Retirement System – Supplemental Death Benefits
Last Five Measurement Years
99
Measurement
Year
Measurement
Year
Measurement
Year
Measurement
Year
Measurement
Year
2021 2020 2019 2018 2017
T otal OPEB liability:
Service cost 66,103$ 52,275$ 38,002$ 42,679$ 34,755$
Interest 21,646 24,403 25,388 23,155 21,919
Changes of benefit terms - - - - -
Difference between expected and actual
experience (26,578) (37,301) (13,112) (18,599) -
Change in assumptions 38,907 156,506 149,523 (56,421) 62,407
Contributions - employer (13,221) (2,614) (5,067) (2,371) (4,344)
Net change in total pension liability 86,857 193,269 194,734 (11,557) 114,737
Total OPEB liability - beginning 1,055,838 862,569 667,835 679,392 564,655
Total OPEB liability - ending (a)1,142,695$ 1,055,838$ 862,569$ 667,835$ 679,392$
Covered employee payroll 26,441,273$ 26,137,309$ 25,334,408$ 23,710,761$ 21,721,689$
Net pension liability as a percentage
of covered employee payroll 4.32%4.04%3.40%2.82%3.13% Note: Only five years of data is presented in accordance with GASB #75. Additional years’ information
will be displayed as it becomes available.
The TMRS Supplementary Death Benefit Fund (SDBF) is considered to be an unfunded OPEB plan;
therefore, no plan fiduciary net position and related ratios are reported in the above schedule.
City of Southlake, Texas Exhibit A-10
Schedule of OPEB Contributions
Texas Municipal Retirement System – Supplemental Death Benefits
Last Five Fiscal Years
100
Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year
2022 2021 2020 2019 2018
Actuarially determined contribution 21,326$ 10,272$ 3,206$ 3,965$ 2,846$
Contribution in relation of the actuarially
determined contribution 21,326 10,272 3,206 3,965 2,846
Contribution deficiency (excess)-$ -$ -$ -$ -$
Covered payroll 28,738,669$ 26,156,403$ 25,202,798$ 25,156,408$ 23,132,172$
Contributions as a percentage of
covered payroll 0.07%0.04%0.01%0.02%0.01% Note: Only five years of data is presented in accordance with GASB #75. Additional years’ information
will be displayed as it becomes available. GASB #75, paragraph 57 requires that the data in this schedule
be presented as of the City’s fiscal year as opposed to the time period covered by the measurement
date.
The TMRS Supplementary Death Benefit Fund (SDBF) is considered to be an unfunded OPEB plan;
therefore, no plan fiduciary net position and related ratios are reported in the above schedule.
City of Southlake, Texas Exhibit A-11
Condition Rating of Street System
September 30, 2022
101
CONDITION OF ROADWAY SYSTEM
2022 2021 2020
City Required
Minimum
International Roughness Index (IRI)73.0 73.0 55.0
Pavement Condition Index (PCI)80.5 80.0 87.0
Pavement Quality Index (PQI)81.1 80.0 82.0 78.0
COMPARISON OF NEEDED-TO-ACTUAL MAINTENANCE/PRESERVATION
Needed Actual Difference
2018 900,000 903,868 $ 3,868
2019 1,000,000 813,411 (186,589)
2020 1,100,000 1,100,285 285
2021 1,200,000 1,336,244 136,244
2022 1,900,000 1,706,384 (193,616)
Total $ 6,100,000 $5,860,192 $(239,808)
The city hired a consultant to implement a pavement management system (PMS) to cover all
public streets within the City. The condition of street pavement is measured using the Standard
for Roads Pavement Condition Index (SRPCI) as developed by the American Society for Testing
and Materials (ASTM). The SRPCI is based on a weighted average of thirteen defects found in
pavement surfaces. The consultant conducted a pavement condition survey on all City-owned
streets. This consisted of a roughness survey and a surface distress survey, along with a deflection
survey of selected roads. A present status analysis was conducted using data obtained from
pavement condition survey to determine the International Roughness Index (IRI) and the
Pavement Condition Index (PCI). These indices were then combined into the composite
Pavement Quality Index (PQI). Values of PQI can range from 0 to 100. Typical values for a newly
constructed pavement range from 95.0 to 100.0. The PQI level at which a pavement becomes
in need of rehabilitation is typically in the 50.0 to 70.0 range. It was the City’s policy to maintain
a PQI of 73.0 until 2012 when the City increased the minimum PQI to 78.0. Needed maintenance
is calculated based upon inspections and the PQI.
In accordance with GASB Statement No. 34, the City is required to report at least three complete
condition assessments at transition using the modified approach. The condition assessments
were completed by the City and concluded that the eligible infrastructure assets are being
preserved at or above the condition level established by the City. Half of the City’s public streets
will be assessed annually to ensure all public streets are assessed every two years.
The City calculates needed maintenance of its street system annually. However, the scheduling
of these road projects often crosses fiscal years. Therefore, actual maintenance may be less
than the calculated needed maintenance in one fiscal year and greater than the calculated
needed maintenance in the subsequent fiscal year.
102
103
Combining and Individual Fund
Financial Statements and Schedules
104
Major Governmental Funds
General Obligation Debt Service Fund
The General Obligation Debt Service Fund is used to account for the accumulation of resources for, and
the payment of, general obligation bonds and interest from governmental resources.
City of Southlake, Texas Exhibit B-1
General Obligation Debt Service Fund
Budgetary Comparison Schedule (GAAP Basis)
For the Year Ended September 30, 2022
105
VARIANCE WITH
FINAL BUDGET-
POSITIVE
ORIGINAL FINAL ACTUAL (NEGATIVE)
REVENUES
Ad valorem taxes, penalties, and interest 5,395,275$ 5,395,275$ 5,372,684$ (22,591)$
I nvestment income (losses)6,300 6,000 (17,970) (23,970)
Total revenues 5,401,575 5,401,275 5,354,714 (46,561)
EXPENDITURES
Principal retirement 4,675,306 4,675,306 4,675,306 -
Interest and fiscal charges 670,826 670,826 676,410 (5,584)
Total expenditures 5,346,132 5,346,132 5,351,716 (5,584)
Excess (deficiency) of revenues
over (under) expenditures 55,443 55,143 2,998 (52,145)
OTHER FINANCING SOURCES:
Transfers from other funds 173,859 173,859 173,859 -
Total other financing sources 173,859 173,859 173,859 -
Net change in fund balance 229,302 229,002 176,857 (52,145)
Fund balance, beginning of year 3,110,539 3,110,539 3,110,539 -
FUND BALANCE, END OF YEAR 3,339,841$ 3,339,541$ 3,287,396$ (52,145)$
BUDGETED AMOUNTS
106
Special Revenue Funds
The Special Revenue Funds are used to account for revenue sources that are legally restricted
or committed to expenditures for specified purposes.
Police Fund –- Established to account for resources required to be utilized by the police
department.
Parks and Recreation Fund – Established to account for resources restricted for use by the
community services department.
Parks Dedication Fund – Established to account for resources restricted for use by the
community services department.
Crime Control District Fund – Established to account for the operations of the Crime Control
District, which was established for the financing and development of crime control within the
City. The Crime Control Fund is funded primarily through the municipal sales taxes.
Hotel Occupancy Fund – Established to account for all revenues and expenditures relating
to the hotel occupancy tax received by the City.
Storm Water Utility Fund – Established to account for fees collected for the purpose of
improving, upgrading and maintaining the City's drainage system. The City is mandated by
the Texas Commission on Environmental Quality (TCEQ) to develop and maintain a Storm
Water Management Plan in order to address capacity and quality issues and protect its
residents and their properties from possible flooding and pollution problems. Drainage fees
are collected to fund the activities required to comply with TCEQ regulations.
Court Security Fund – Established to account for municipal court fees assessed to provide
court security.
Court Technology Fund – Established to account for municipal court fees assessed to provide
court technology.
Municipal Jury Fund – Established to account for municipal court fees assessed to provide
jury services.
Library Fund – Established to account for resources donated for use by library services.
Red Light Camera Fund – Established to account for fees assessed for red light violations
captured through the City’s camera monitoring system.
Oil and Gas Fund- Established to account for permits fees and the related expenditures for
oil and gas drilling.
Commercial Vehicle Enforcement Fund – Established to account for the fees assessed for
commercial vehicle violations.
Truancy Prevention - Established to account for municipal court fees assessed to provide for
juvenile case manager services.
Disaster Recovery - Established to account for grant awards to provide disaster relief.
107
Debt Service Funds
The Debt Service Funds are utilized to account for the accumulation of financial resources for,
and the payment of, long-term debt principal, interest, and related costs arising from the
issuance of bonds.
Southlake Parks Development Corporation Debt Service Fund – Established to accumulate
resources to finance the debt service of debt issues of the Southlake Parks Development
Corporation.
Community Enhancement and Development Corporation Debt Service Fund – Established to
accumulate resources to finance the debt service of debt issues for the community
entertainment and recreation center.
Capital Projects Funds
The Capital Projects Funds are utilized to account for financial resources to be used for the
acquisition or construction of specified capital improvements (other than those financed by
proprietary funds).
Southlake Parks Development Corporation Capital Projects Fund – Established to fund the acquisition and construction of park recreational facilities as approved by the SPDC board of directors. The fund has been funded primarily through the issuance of general obligation debt.
Community Enhancement and Development Corporation Capital Projects Fund - Established
to fund the acquisition and construction of a community entertainment and recreation
center as approved by the CEDC board of directors. The fund has been financed through
the issuance of sales tax revenue bonds.
Crime Control District Capital Projects Fund – Established to account for the acquisition and construction of capital assets as approved by the District’s board of directors. The fund has been funded primarily through the issuance of general obligation debt.
City of Southlake, Texas
Non-Major Governmental Funds
Combining Balance Sheet
September 30, 2022
108
Parks Crime
and Parks Control
Police Recreation Dedication District
ASSETS
Cash and cash equivalents 145,556$ 193,059$ 1,168,410$ 5,311,115$
Accounts receivable - 1,500 - 2,218
Sales tax receivable - - - 390,390
Interest receivable 136 180 1,088 4,946
TOTAL ASSETS 145,692$ 194,739$ 1,169,498$ 5,708,669$
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts payable 7,984$ -$ -$ 61,418$
Accrued liabilities - - - 55,956
Retainage payable - - - -
Total liabilities 7,984 - - 117,374
DEFERRED INFLOWS OF RESOURCES
Unavailable resources - 1,500 - -
FUND BALANCES
Restricted for:
Municipal court expenditures - - - -
Debt service - - - -
Storm water - - - -
Police expenditures 137,708 - - 5,591,295
Parks and recreation - 193,239 - -
Library - - - -
Promotion of culture and tourism - - - -
Committed for:
Parks and recreation - - 1,169,498 -
Oil and gas drilling - - - -
Total fund balances 137,708 193,239 1,169,498 5,591,295
TOTAL LIABILITIES AND FUND BALANCES 145,692$ 194,739$ 1,169,498$ 5,708,669$
SPECIAL REVENUE
Exhibit C-1 Continued
109
Storm
Hotel Water Court Court Municipal Red Light
Occupancy Utility Security Technology Jury Library Camera
2,669,665$ 1,744,318$ 438,274$ 311,090$ 1,690$ 14,590$ 331,881$
- 216,719 - - - - -
260,884 - - - - - -
2,485 1,624 408 290 2 14 309
2,933,034$ 1,962,661$ 438,682$ 311,380$ 1,692$ 14,604$ 332,190$
269,413$ 15,096$ -$ -$ -$ -$ -$
9,924 11,207 854 - - - -
- - - - - - -
279,337 26,303 854 - - - -
- - - - - - -
- - 437,828 311,380 1,692 - -
- - - - - - -
- 1,936,358 - - - - -
- - - - - - 332,190
- - - - - - -
- - - - - 14,604 -
2,653,697 - - - - - -
- - - - - - -
- - - - - - -
2,653,697 1,936,358 437,828 311,380 1,692 14,604 332,190
2,933,034$ 1,962,661$ 438,682$ 311,380$ 1,692$ 14,604$ 332,190$
SPECIAL REVENUE
City of Southlake, Texas
Non-Major Governmental Funds
Combining Balance Sheet
September 30, 2022
110
Commercial
Oil and Vehicle Truancy Disaster
Gas Enforcement Prevention Recovery
ASSETS
Cash and cash equivalents 55,215$ 234,778$ 84,290$ -$
Accounts receivable - - - -
Sales tax receivable - - - -
Interest receivable 51 219 78 -
TOTAL ASSETS 55,266$ 234,997$ 84,368$ -$
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts payable -$ -$ -$ -$
Accrued liabilities - 1,294 - -
Retainage payable - - - -
TOTAL LIABILITIES - 1,294 - -
DEFERRED INFLOWS OF RESOURCES
Unavailable resources - - - -
FUND BALANCES
Restricted for:
Municipal court expenditures - - 84,368 -
Debt service - - - -
Storm water - - - -
Police expenditures - 233,703 - -
Parks and recreation - - - -
Library - - - -
Promotion of cultural and tourism - - - -
Committed for:
Parks and recreation - - - -
Oil and gas expenditures 55,266 - - -
TOTAL FUND BALANCES 55,266 233,703 84,368 -
TOTAL LIABILITIES AND FUND BALANCES 55,266$ 234,997$ 84,368$ -$
SPECIAL REVENUE
Exhibit C-1 Concluded
111
Southlake Community Southlake Community TOTAL
Parks Enhancement Parks Enhancement Crime NON-MAJOR
Development Development Development Development Control GOVERNMENTAL
Corporation Corporation Corporation Corporation District FUNDS
1,911,444$ 550,454$ 15,614,756$ 1,243,287$ 1,528,547$ 33,552,419$
- - - - - 220,437
- - - - - 651,274
1,779 512 14,535 1,157 1,423 31,236
1,913,223$ 550,966$ 15,629,291$ 1,244,444$ 1,529,970$ 34,455,366$
-$ -$ 5,047$ -$ 32,873$ 391,831$
- - - - - 79,235
- - - 114,326 - 114,326
- - 5,047 114,326 32,873 585,392
- - - - - 1,500
- - - - - 835,268
1,913,223 550,966 - - - 2,464,189
- - - - - 1,936,358
- - - - 1,497,097 7,791,993
- - 15,624,244 1,130,118 - 16,947,601
- - - - - 14,604
- - - - - 2,653,697
- - - - - 1,169,498
- - - - - 55,266
1,913,223 550,966 15,624,244 1,130,118 1,497,097 33,868,474
1,913,223$ 550,966$ 15,629,291$ 1,244,444$ 1,529,970$ 34,455,366$
DEBT SERVICE CAPITAL PROJECTS
City of Southlake, Texas
Non-Major Governmental Funds
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
For the Year Ended September 30, 2022
112
Parks Crime
and Parks Control
Police Recreation Dedication District
REVENUES
Municipal sales tax -$ -$ -$ 2,567,974$
Licenses, permits and fees - - 215,837 -
Fines and forfeitures 116,061 - - -
Charges for services - - - -
Grants - - - -
Investment income (losses)113 (730) (4,551) (16,410)
Contributions - 25,710 - -
Total revenues 116,174 24,980 211,286 2,551,564
EXPENDITURES
Current:
General government
Municipal court - - - -
Public safety
Police services 5,358 - - 1,775,745
Fire services - - - -
Public works
Streets and drainage - - - -
Cultural and recreation
Parks and recreation - 36,880 - -
Library services - - - -
Promotion of culture and tourism - - - -
Capital outlay - - - 346,384
Debt service:
Principal retirement - - - 106,283
Interest and fiscal charges - - - -
Total expenditures 5,358 36,880 - 2,228,412
Excess (deficiency) of revenues
over (under) expenditures 110,816 (11,900) 211,286 323,152
OTHER FINANCING SOURCES (USES)
Issuance of financed purchases - - - 502,292
Transfers from other funds - - - -
Transfers to other funds - - (630,000) (1,080,171)
Total other financing sources (uses) - - (630,000) (577,879)
Net change in fund balances 110,816 (11,900) (418,714) (254,727)
Fund balances, beginning of year 26,892 205,139 1,588,212 5,846,022
FUND BALANCES, END OF YEAR 137,708$ 193,239$ 1,169,498$ 5,591,295$
SPECIAL REVENUE
Exhibit C-2
Continued
113
Storm
Hotel Water Court Court Municipal Red Light
Occupancy Utility Security Technology Jury Library Camera
1,637,159$ -$ -$ -$ -$ -$ -$
- - - - - - -
- - 36,524 30,106 1,690 - -
- 1,594,554 - - - - -
- - - - - - -
(5,594) (2,809) (1,472) (956) 2 (42) (1,725)
- - - - - 9,897 -
1,631,565 1,591,745 35,052 29,150 1,692 9,855 (1,725)
- - 43,387 8,539 - - -
- - - - - - 127,100
- - - - - - -
- 673,981 - - - - -
- - - - - - -
- - - - - 7,976 -
762,948 - - - - - -
- - - - - - -
- - 2,512 - - - -
- - - - - - -
762,948 673,981 45,899 8,539 - 7,976 127,100
868,617 917,764 (10,847) 20,611 1,692 1,879 (128,825)
- - 11,870 - - - -
- - - - - - -
(304,342) (237,279) - - - - (100,000)
(304,342) (237,279) 11,870 - - - (100,000)
564,275 680,485 1,023 20,611 1,692 1,879 (228,825)
2,089,422 1,255,873 436,805 290,769 - 12,725 561,015
2,653,697$ 1,936,358$ 437,828$ 311,380$ 1,692$ 14,604$ 332,190$
SPECIAL REVENUE
City of Southlake, Texas
Non-Major Governmental Funds
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
For the Year Ended September 30, 2022
114
Commercial
Oil and Vehicle Truancy Disaster
Gas Enforcement Prevention Recovery
REVENUES
Municipal sales tax -$ -$ -$ -$
Licenses, permits and fees - - - -
Fines and forfeitures - 18,655 36,652 -
Charges for services - - - -
Grants - - - 8,080,465
Investment income (losses)(185) (720) (147) -
Contributions - - - -
TOTAL REVENUES (185) 17,935 36,505 8,080,465
EXPENDITURES
Current:
General government
Municipal court - - - -
Public safety
Police services - 49,316 - -
Fire services - - - 8,057,625
Public works
Streets and drainage - - - -
Cultural and recreation
Parks and recreation - - - -
Library services - - - -
Promotion of culture and tourism - - - -
Capital outlay - - - 22,840
Debt service:
Principal retirement - - - -
Interest and fiscal charges - - - -
TOTAL EXPENDITURES - 49,316 - 8,080,465
EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES (185) (31,381) 36,505 -
OTHER FINANCING SOURCES (USES)
Issuance of financed purchases - - - -
Transfers from other funds - 150,000 - -
Transfers to other funds - - - -
TOTAL OTHER FINANCING SOURCES (USES)- 150,000 - -
NET CHANGE IN FUND BALANCES (185) 118,619 36,505 -
FUND BALANCES,
BEGINNING OF YEAR 55,451 115,084 47,863 -
FUND BALANCES, END OF YEAR 55,266$ 233,703$ 84,368$ -$
SPECIAL REVENUE
Exhibit C-2 Concluded
115
Southlake Community Southlake Community TOTAL
Parks Enhancement Parks Enhancement Crime NON-MAJOR
Development Development Development Development Control GOVERNMENTAL
Corporation Corporation Corporation Corporation District FUNDS
-$ -$ -$ -$ -$ 4,205,133$
- - - - - 215,837
- - - - - 239,688
- - - - - 1,594,554
- - - - - 8,080,465
(11,413) (6,646) (50,063) (5,033) (3,741) (112,122)
- - 155,000 - - 190,607
(11,413) (6,646) 104,937 (5,033) (3,741) 14,414,162
- - - - - 51,926
- - - - - 1,957,519
- - - - - 8,057,625
- - - - - 673,981
- - 86,686 36,003 - 159,569
- - - - - 7,976
- - - - - 762,948
- - 700,186 129,293 35,248 1,233,951
2,272,000 1,475,000 - - - 3,855,795
529,588 973,056 - - - 1,502,644
2,801,588 2,448,056 786,872 165,296 35,248 18,263,934
(2,813,001) (2,454,702) (681,935) (170,329) (38,989) (3,849,772)
- - - - - 514,162
2,796,796 2,451,056 4,000,000 - 1,000,000 10,397,852
- - - - - (2,351,792)
2,796,796 2,451,056 4,000,000 - 1,000,000 8,560,222
(16,205) (3,646) 3,318,065 (170,329) 961,011 4,710,450
1,929,428 554,612 12,306,179 1,300,447 536,086 29,158,024
1,913,223$ 550,966$ 15,624,244$ 1,130,118$ 1,497,097$ 33,868,474$
DEBT SERVICE CAPITAL PROJECTS
City of Southlake, Texas Exhibit C-3
Parks And Recreation Special Revenue Fund
Budgetary Comparison Schedule (GAAP Basis)
For the Year Ended September 30, 2022
116
VARIANCE WITH
FINAL BUDGET -
POSITIVE
ORIGINAL FINAL ACTUAL (NEGATIVE)
REVENUES
Investment income (losses)600$ 350$ (730)$ (1,080)$
Contributions 46,500 15,500 25,710 10,210
Total revenues 47,100 15,850 24,980 9,130
EXPENDITURES
Cultural and recreation
Parks and recreation 72,500 72,500 36,880 35,620
Total expenditures 72,500 72,500 36,880 35,620
Excess (deficiency) of revenues
over (under) expenditures (25,400) (56,650) (11,900) 44,750
Net change in fund balances (25,400) (56,650) (11,900) 44,750
Fund balances, beginning of year 205,139 205,139 205,139 -
FUND BALANCES, END OF YEAR 179,739$ 148,489$ 193,239$ 44,750$
BUDGETED AMOUNTS
City of Southlake, Texas Exhibit C-4
Parks Dedication Special Revenue Fund
Budgetary Comparison Schedule (GAAP Basis)
For the Year Ended September 30, 2022
117
VARIANCE WITH
FINAL BUDGET -
POSITIVE
ORIGINAL FINAL ACTUAL (NEGATIVE)
REVENUES:
Licenses, permits, and fees 90,000$ 200,000$ 215,837$ 15,837$
Investment income (losses)2,100 500 (4,551) (5,051)
Total revenues 92,100 200,500 211,286 10,786
OTHER FINANCING USES:
Transfers to other funds (480,000) (630,000) (630,000) -
Total other financing uses (480,000) (630,000) (630,000) -
Net change in fund balance (387,900) (429,500) (418,714) 10,786
Fund balances, beginning of year 1,588,212 1,588,212 1,588,212 -
FUND BALANCES, END OF YEAR 1,200,312$ 1,158,712$ 1,169,498$ 10,786$
BUDGETED AMOUNTS
City of Southlake, Texas Exhibit C-5
Crime Control District Special Revenue Fund
Budgetary Comparison Schedule (GAAP Basis)
For the Year Ended September 30, 2022
118
VARIANCE WITH
FINAL BUDGET -
POSITIVE
ORIGINAL FINAL ACTUAL (NEGATIVE)
REVENUES:
Municipal sales tax 1,999,550$ 2,400,000$ 2,567,974$ 167,974$
Investment income (losses)4,725 2,225 (16,410) (18,635)
Total revenues 2,004,275 2,402,225 2,551,564 149,339
EXPENDITURES:
Public safety
Police services 2,168,505 1,891,814 1,775,745 116,069
Capital outlay:65,000 65,000 346,384 (281,384)
Debt service:
Principal retirement - - 106,283 (106,283)
Total expenditures 2,233,505 1,956,814 2,228,412 (271,598)
Excess (deficiency) of revenues
over (under) expenditures (229,230) 445,411 323,152 (122,259)
OTHER FINANCING SOURCES (USES):
Issuance of financed purchases - - 502,292 502,292
Transfers to other funds (1,080,171) (1,080,171) (1,080,171) -
Total other financing (uses)(1,080,171) (1,080,171) (577,879) -
Net change in fund balance (1,309,401) (634,760) (254,727) (122,259)
Fund balances, beginning of year 5,846,022 5,846,022 5,846,022 -
FUND BALANCES, END OF YEAR 4,536,621$ 5,211,262$ 5,591,295$ (122,259)$
BUDGETED AMOUNTS
City of Southlake, Texas Exhibit C-6
Hotel Occupancy Special Revenue Fund
Budgetary Comparison Schedule (GAAP Basis)
For the Year Ended September 30, 2022
119
VARIANCE WITH
FINAL BUDGET -
POSITIVE
ORIGINAL FINAL ACTUAL (NEGATIVE)
REVENUES:
Municipal sales tax 963,855$ 1,600,300$ 1,637,159$ 36,859$
Investment income (losses)4,400 1,500 (5,594) (7,094)
Total revenues 968,255 1,601,800 1,631,565 29,765
EXPENDITURES:
Culture and recreation
Promotion of tourism 312,305 313,133 762,948 (449,815)
Excess (deficiency) of revenues
over (under) expenditures 655,950 1,288,667 868,617 (420,050)
OTHER FINANCING USES:
Transfers to other funds (394,760) (304,342) (304,342) -
Net change in fund balance 261,190 984,325 564,275 (420,050)
Fund balances, beginning of year 2,089,422 2,089,422 2,089,422 -
FUND BALANCES, END OF YEAR 2,350,612$ 3,073,747$ 2,653,697$ (420,050)$
BUDGETED AMOUNTS
City of Southlake, Texas Exhibit C-7
Storm Water Utility Special Revenue Fund
Budgetary Comparison Schedule (GAAP Basis)
For the Year Ended September 30, 2022
120
VARIANCE WITH
FINAL BUDGET -
POSITIVE
ORIGINAL FINAL ACTUAL (NEGATIVE)
REVENUES:
Charges for service 1,570,500$ 1,585,000$ 1,594,554$ 9,554$
Investment income (losses)2,100 500 (2,809) (3,309)
Total revenues 1,572,600 1,585,500 1,591,745 6,245
EXPENDITURES:
Public works
Streets and drainage 681,008 686,026 673,981 12,045
Excess revenues over expenditures 891,592 899,474 917,764 18,290
OTHER FINANCING USES:
Transfers to other funds (236,763) (237,279) (237,279) -
Net change in fund balance 654,829 662,195 680,485 18,290
Fund balances, beginning of year 1,255,873 1,255,873 1,255,873 -
FUND BALANCES, END OF YEAR 1,910,702$ 1,918,068$ 1,936,358$ 18,290$
BUDGETED AMOUNTS
City of Southlake, Texas Exhibit C-8
Court Security Special Revenue Fund
Budgetary Comparison Schedule (GAAP Basis)
For the Year Ended September 30, 2022
121
VARIANCE WITH
FINAL BUDGET -
POSITIVE
ORIGINAL FINAL ACTUAL (NEGATIVE)
REVENUES
Fines and forfeitures 23,000$ 32,500 36,524$ 4,024$
Investment income (losses)1,300 500 (1,472) (1,972)
Total revenues 24,300 33,000 35,052 2,052
EXPENDITURES
General government
Municipal court 72,435 65,715 43,387 22,328
Debt service:
Principal retirement - - 2,512 (2,512)
Total expenditures 72,435 65,715 45,899 19,816
Excess (deficiency) of revenues
over (under) expenditures (48,135) (32,715) (10,847) 21,868
OTHER FINANCING SOURCES
Issuance of financed purchases - - 11,870 11,870
Total other financing sources - - 11,870 11,870
Net change in fund balance (48,135) (32,715) 1,023 33,738
Fund balances, beginning of year 436,805 436,805 436,805 -
FUND BALANCES, END OF YEAR 388,670$ 404,090$ 437,828$ 33,738$
BUDGETED AMOUNTS
City of Southlake, Texas Exhibit C-9
Court Technology Special Revenue Fund
Budgetary Comparison Schedule (GAAP Basis)
For the Year Ended September 30, 2022
122
VARIANCE WITH
FINAL BUDGET -
POSITIVE
ORIGINAL FINAL ACTUAL (NEGATIVE)
REVENUES
Fines and forfeitures 24,225 26,125 30,106 3,981$
Investment income (losses)1,300 500 (956) (1,456)
Total revenues 25,525 26,625 29,150 2,525
EXPENDITURES
General government
Municipal court 8,830 8,830 8,539 291
Excess revenues over expenditures 16,695 17,795 20,611 2,816
Net change in fund balance 16,695 17,795 20,611 2,816
Fund balances, beginning of year 290,769 290,769 290,769 -
FUND BALANCES, END OF YEAR 307,464$ 308,564$ 311,380$ 2,816$
BUDGETED AMOUNTS
City of Southlake, Texas Exhibit C-10
Library Special Revenue Fund
Budgetary Comparison Schedule (GAAP Basis)
For the Year Ended September 30, 2022
123
VARIANCE WITH
FINAL BUDGET -
POSITIVE
ORIGINAL FINAL ACTUAL (NEGATIVE)
REVENUES
Investment income (losses)70$ 50$ (42)$ (92)$
Contributions 4,000 9,300 9,897 597
Total revenue 4,070 9,350 9,855 505
EXPENDITURES
Current:
Cultural and recreation
Library services 8,000 8,000 7,976 24
Excess (deficiency) of revenues
over (under) expenditures (3,930) 1,350 1,879 529
Net change in fund balance (3,930) 1,350 1,879 529
Fund balances, beginning of year 12,725 12,725 12,725 -
FUND BALANCES, END OF YEAR 8,795$ 14,075$ 14,604$ 529$
BUDGETED AMOUNTS
City of Southlake, Texas Exhibit C-11
Red Light Camera Special Revenue Fund
Budgetary Comparison Schedule (GAAP Basis)
For the Year Ended September 30, 2022
124
VARIANCE WITH
FINAL BUDGET-
POSITIVE
ORIGINAL FINAL ACTUAL (NEGATIVE)
REVENUES:
Investment income (losses)1,200$ 100$ (1,725)$ (1,825)$
EXPENDITURES:
Public safety
Police services 128,705 128,705 127,100 1,605
Excess (deficiency) of revenues (127,505) (128,605) (128,825) (220)
over (under) expenditures
OTHER FINANCING USES:
Transfers to other funds (100,000) (100,000) (100,000) -
Total other financing uses (100,000) (100,000) (100,000) -
Net change in fund balance (227,505) (228,605) (228,825) (220)
Fund balances, beginning of year 561,015 561,015 561,015 -
FUND BALANCES, END OF YEAR 333,510$ 332,410$ 332,190$ (220)$
BUDGETED AMOUNTS
City of Southlake, Texas Exhibit C-12
Commercial Vehicle Enforcement
Budgetary Comparison Schedule (GAAP Basis)
For the Year Ended September 30, 2022
125
VARIANCE WITH
FINAL BUDGET -
POSITIVE
ORIGINAL FINAL ACTUAL (NEGATIVE)
REVENUES
Fines and forfeitures 25,000$ 20,000$ 18,655$ (1,345)$
Investment income (losses)300 150 (720) (870)
Total revenues 25,300 20,150 17,935 (2,215)
EXPENDITURES
Public safety
Police services 157,095 157,095 49,316 107,779
Excess (deficiency) of revenues
over (under) expenditures (131,795) (136,945) (31,381) 105,564
OTHER FINANCING SOURCES
Transfers from other funds 150,000 150,000 150,000 -
Total other financing sources 150,000 150,000 150,000 -
Net change in fund balance 18,205 13,055 118,619 105,564
Fund balances, beginning of year 115,084 115,084 115,084 -
FUND BALANCES, END OF YEAR 133,289$ 128,139$ 233,703$ 105,564$
BUDGETED AMOUNTS
City of Southlake, Texas Exhibit C-13
Southlake Parks Development Corporation Debt Service Fund
Budgetary Comparison Schedule (GAAP Basis)
For the Year Ended September 30, 2022
126
VARIANCE WITH
FINAL BUDGET-
POSITIVE
ORIGINAL FINAL ACTUAL (NEGATIVE)
REVENUES:
Investment income (losses)1,900$ 900$ (11,413)$ (12,313)$
EXPENDITURES:
Debt service:
Principal retirement 2,272,000 2,272,000 2,272,000 -
Interest and fiscal charges 530,796 530,796 529,588 1,208
Total expenditures 2,802,796 2,802,796 2,801,588 1,208
Excess (deficiency) of revenues
over (under) expenditures (2,800,896) (2,801,896) (2,813,001) (11,105)
OTHER FINANCING SOURCES:
Transfers from other funds 2,796,796 2,796,796 2,796,796 -
Total other financing sources 2,796,796 2,796,796 2,796,796 -
Net change in fund balance (4,100) (5,100) (16,205) (11,105)
Fund balances, beginning of year 1,929,428 1,929,428 1,929,428 -
FUND BALANCES, END OF YEAR 1,925,328$ 1,924,328$ 1,913,223$ (11,105)$
BUDGETED AMOUNTS
City of Southlake, Texas Exhibit C-14
Community Enhancement Development Corporation Debt Service Fund
Budgetary Comparison Schedule (GAAP Basis)
For the Year Ended September 30, 2022
127
VARIANCE WITH
FINAL BUDGET-
POSITIVE
ORIGINAL FINAL ACTUAL (NEGATIVE)
REVENUES:
Investment income (losses)1,050$ 1,000$ (6,646)$ (7,646)$
EXPENDITURES:
Debt service:
Principal retirement 1,475,000 1,475,000 1,475,000 -
Interest and fiscal charges 976,056 976,056 973,056 3,000
TOTAL EXPENDITURES 2,451,056 2,451,056 2,448,056 3,000
Excess (deficiency) of revenues
over (under) expenditures (2,450,006) (2,450,056) (2,454,702) (4,646)
OTHER FINANCING SOURCES:
Transfers from other funds 2,451,056 2,451,056 2,451,056 -
Total other financing sources 2,451,056 2,451,056 2,451,056 -
Net change in fund balance 1,050 1,000 (3,646) (4,646)
Fund balances, beginning of year 554,612 554,612 554,612 -
FUND BALANCES, END OF YEAR 555,662$ 555,612$ 550,966$ (4,646)$
BUDGETED AMOUNTS
128
129
Statistical Section
130
131
Contents Table #s
Financial Trends 1, 2, 3 & 4
These tables contain trend information to help the reader understand how the
City's financial performance and well-being have changed over time.
Revenue Capacity 5, 6, 7 & 8
These tables contain information to help the reader assess the City's two most
significant local revenue sources, the property and sales taxes.
Debt Capacity 9, 10, 11 & 12These tables present information to help the reader assess the affordability of the
City's current levels of outstanding debt and the City's ability to issue additional
debt in the future.
Economic and Demographic Information 13 & 14
These tables offer economic and demographic indicators to help the reader
understand the environment within which the City's financial activities take place.
Operating Information 15, 16 & 17These tables contain service and infrastructure data to help the reader understand
how the information in the City's financial report relates to the services the City
STATISTICAL SECTION
This part of the City of Southlake's annual comprehensive financial report presents detailed information
as a context for understanding what the information in the financial statements,notes disclosures,and
required supplementary information says about the City's overall financial health. This information has
not been audited by the independent auditor.
Source: Unless otherwise noted, the information in these tables is derived from the annual
comprehensive financial reports for the relevant year.
City of Southlake, Texas
Net Position by Component
Last Ten Fiscal Years
(Accrual Basis of Accounting)
(Unaudited)
132
2013 2014 2015 2016
Governmental activities
Net investment in capital assets 324,928,883$ 338,303,633$ 366,796,228$ 364,161,725$
Restricted 15,178,798 15,092,604 13,624,164 11,589,350
Unrestricted 50,356,758 58,732,145 59,447,800 80,992,079
Total governmental activities net position 390,464,439$ 412,128,382$ 439,868,192$ 456,743,154$
Business-type activities
Net investment in capital assets 70,968,919$ 73,126,147$ 78,143,445$ 79,055,138$
Restricted 2,438,286 2,140,022 3,151,309 6,817,038
Unrestricted 15,235,677 13,945,038 10,509,498 12,487,875
Total business-type activities net position 88,642,882$ 89,211,207$ 91,804,252$ 98,360,051$
Primary government
Net investment in capital assets 395,897,802$ 411,429,780$ 444,939,673$ 443,216,863$
Restricted 17,617,084 17,232,626 16,775,473 18,406,388
Unrestricted 65,592,435 72,677,183 69,957,298 93,479,954
Total primary governmental net position 479,107,321$ 501,339,589$ 531,672,444$ 555,103,205$
Source: Annual Comprehensive Financial Report
Fiscal Year
Table 1
133
2017 2018 2019 2020 2021 2022
385,506,389$ 392,406,812$ 399,651,828$ 415,945,257$ 432,717,828$ 444,246,656$
49,850,439 28,492,591 32,690,100 25,518,844 39,870,051 99,360,585
45,930,426 78,585,681 87,753,906 96,924,423 95,211,152 62,641,199
481,287,254$ 499,485,084$ 520,095,834$ 538,388,524$ 567,799,031$ 606,248,440$
82,251,014$ 83,461,157$ 83,223,713$ 76,271,158$ 77,068,608$ 77,774,937$
7,804,197 8,980,312 6,215,686 10,555,032 10,966,728 9,877,167
15,721,755 17,935,009 21,579,170 29,619,463 36,831,318 45,903,642
105,776,966$ 110,376,478$ 111,018,569$ 116,445,653$ 124,866,654$ 133,555,746$
467,757,403$ 475,867,969$ 482,875,541$ 492,216,415$ 509,786,436$ 522,021,593$
57,654,636 37,472,903 38,905,786 36,073,876 50,836,779 109,237,752
61,652,181 96,520,690 109,333,076 126,543,886 132,042,470 108,544,841
587,064,220$ 609,861,562$ 631,114,403$ 654,834,177$ 692,665,685$ 739,804,186$
Fiscal Year
City of Southlake, Texas
Changes in Net Position, Last Ten Fiscal Years
(Accrual Basis of Accounting)
(Unaudited)
134
2013 2014 2015 2016
Expenses
Governmental activities:
General government 12,892,140$ 13,417,904$ 14,602,425$ 12,851,787$
Public safety 18,425,878 18,245,617 18,176,698 19,300,590
Public works 8,528,331 8,870,998 9,762,184 11,950,671
Culture and recreation 8,829,394 8,948,841 9,311,006 10,655,763
Interest on long-term debt 6,747,628 5,097,036 2,528,113 3,005,359
Total governmental activities expenses 55,423,371 54,580,396 54,380,426 57,764,170
Business-type activities:
Water and sewer 22,119,518 25,030,426 26,692,373 24,741,428
Total business-type activities expenses 22,119,518 25,030,426 26,692,373 24,741,428
Total primary government expenses 77,542,889$ 79,610,822$ 81,072,799$ 82,505,598$
Program Revenues
Governmental activities:
Charges for Services:
General government 2,755,038$ 2,657,883$ 2,309,861$ 2,363,499$
Public safety 3,650,079 3,907,068 4,427,137 4,620,030
Public works 291,926 360,529 265,432 223,533
Culture and recreation 1,422,552 1,379,658 1,399,822 1,537,185
Operating grants and contributions 639,230 443,157 455,575 310,636
Capital grants and contributions 2,244,965 4,436,346 8,967,466 2,228,863
Total governmental activities program revenues 11,003,790 13,184,641 17,825,293 11,283,746
Business-type activities:
Charges for services:
Water and sewer 22,806,432 23,591,438 24,792,619 25,474,777
Capital grants and contributions 1,981,354 3,510,936 5,776,438 1,638,842
Total business-type activities program revenues 24,787,786 27,102,374 30,569,057 27,113,619
Total primary government program revenues 35,791,576$ 40,287,015$ 48,394,350$ 38,397,365$
Net (Expenses) Revenue
Governmental activities (44,419,581)$ (41,395,755)$ (36,555,133)$ (46,480,424)$
Business-type activities 2,668,268 2,071,948 3,876,684 2,372,191
Total primary government net expenses (41,751,313)$ (39,323,807)$ (32,678,449)$ (44,108,233)$
General Revenues
and Other Changes in Net Position
Governmental activities:
General revenues:
Property taxes 31,844,930$ 33,099,007$ 33,176,285$ 34,501,608$
Sales taxes 22,659,917 26,623,661 30,090,614 29,047,285
Franchise taxes 2,646,394 2,841,025 3,327,739 2,955,114
Investment income (losses)30,110 482,607 523,954 379,342
Gain (Loss) on sale of capital assets 89,923 99,109 102,900 102,960
Miscellaneous 836,068 639,571 1,066,818 136,477
Transfers 915,475 915,116 968,160 (3,767,400)
Total governmental activities 59,022,817 64,700,096 69,256,470 63,355,386
Business-type activities:
Interest on investments 25,227 101,469 112,967 94,837
Gain (Loss) on sale of capital assets - - 23,100 317,276
Transfers (915,475) (915,116) (968,160) 3,767,400
Miscellaneous 37,527 6,963 4,521 4,095
Total business-type activities (852,721) (806,684) (827,572) 4,183,608
Total primary government 58,170,096$ 63,893,412$ 68,428,898$ 67,538,994$
Change in Net Position
Governmental activities 14,603,236$ 23,304,341$ 32,701,337$ 16,874,962$
Business-type activities 1,815,547 1,265,264 3,049,112 6,555,799
Total primary government 16,418,783$ 24,569,605$ 35,750,449$ 23,430,761$
Source: Annual Comprehensive Financial Report
Fiscal Year
Table 2
135
2017 2018 2019 2020 2021 2022
17,430,052$ 18,255,444$ 20,014,583$ 21,275,487$ 20,990,841$ 20,685,238$
21,179,963 23,962,971 23,881,485 24,054,527 23,642,969 24,915,801
8,979,020 10,040,453 10,081,721 9,839,646 9,122,951 10,111,585
11,780,022 12,775,020 15,955,201 17,665,953 15,367,103 16,970,272
3,834,897 3,047,221 2,750,037 2,171,359 2,076,809 1,979,546
63,203,954 68,081,109 72,683,027 75,006,972 71,200,673 74,662,442
24,703,007 29,068,434 29,873,788 27,490,815 25,730,741 28,397,036
24,703,007 29,068,434 29,873,788 27,490,815 25,730,741 28,397,036
87,906,961$ 97,149,543$ 102,556,815$ 102,497,787$ 96,931,414$ 103,059,478$
2,262,247$ 2,895,701$ 2,498,549$ 1,631,816$ 1,733,148$ 1,957,434$
3,929,564 2,495,288 3,001,895 2,536,553 2,166,430 803,365
143,935 1,635,163 1,724,344 1,824,434 1,658,723 4,287,138
1,814,319 1,301,793 2,145,128 2,993,552 3,387,430 4,477,031
328,288 459,006 866,518 1,807,473 894,423 8,736,294
7,714,765 1,044,834 1,437,166 1,422,315 5,882,015 2,653,556
16,193,118 9,831,785 11,673,600 12,216,143 15,722,169 22,914,818
27,939,504 32,229,361 29,929,932 32,271,341 32,071,140 37,241,976
3,851,057 2,367,774 896,652 1,315,092 3,332,452 1,376,002
31,790,561 34,597,135 30,826,584 33,586,433 35,403,592 38,617,978
47,983,679$ 44,428,920$ 42,500,184$ 45,802,576$ 51,125,761$ 61,532,796$
(47,010,836)$ (58,249,324)$ (61,009,427)$ (62,790,829)$ (55,478,504)$ (51,747,624)$
7,087,554 5,528,701 952,796 6,095,618 9,672,851 10,220,942
(39,923,282)$ (52,720,623)$ (60,056,631)$ (56,695,211)$ (45,805,653)$ (41,526,682)$
37,705,796$ 40,380,926$ 41,734,946$ 41,973,780$ 41,660,369$ 41,392,861$
29,968,331 30,822,431 31,868,204 32,119,114 38,461,312 43,723,490
2,907,537 2,972,143 3,114,117 2,811,573 2,671,726 2,988,874
843,082 2,108,804 3,247,401 1,721,876 101,746 (475,934)
71,284 - - - - -
216,881 - 476,577 1,222,231 709,736 804,354
(157,975) 1,211,036 1,178,932 1,234,945 1,284,122 1,360,830
71,554,936 77,495,340 81,620,177 81,083,519 84,889,011 89,794,475
167,068 320,473 868,227 566,411 32,272 (171,020)
350 - - - - -
157,975 (1,211,036) (1,178,932) (1,234,945) (1,284,122) (1,360,830)
3,968 4,166 - - - -
329,361 (886,397) (310,705) (668,534) (1,251,850) (1,531,850)
71,884,297$ 76,608,943$ 81,309,472$ 80,414,985$ 83,637,161$ 88,262,625$
24,544,100$ 19,246,016$ 20,610,750$ 18,292,690$ 29,410,507$ 38,046,851$
7,416,915 4,642,304 642,091 5,427,084 8,421,001 8,689,092
31,961,015$ 23,888,320$ 21,252,841$ 23,719,774$ 37,831,508$ 46,735,943$
Fiscal Year
City of Southlake, Texas Table 3
Fund Balances, Governmental Funds
(Modified Accrual Basis of Accounting)
Last Ten Fiscal Years
(Unaudited)
136
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
General Fund
Nonspendable 292,356$ 46,008$ 27,826$ 86,286$ 57,997$ 86,286$ 63,189$ 40,839$ 69,373$ 401,529$
Committed for:
Police expenditures 22,643 28,647 34,609 - 46,657 - - - - -
Assigned for:
Teen Court expenditures 18,606 18,832 19,077 19,835 19,684 19,835 20,427 20,693 20,721 20,882
Senior Center expenditures 10,629 10,623 10,624 10,743 10,671 10,743 10,938 11,064 11,074 11,042
Recycling 28,629 34,609 40,612 59,163 52,811 59,163 66,253 70,395 76,458 138,291
Reforestation expenditures 69,128 44,098 101,873 111,728 112,300 111,728 63,030 35,150 54,847 96,012
Public art - - - - - 678,829 835,991 500,819 364,046 441,984
Facility maintenance - - - - - 6,708,556 7,222,995 8,813,795 9,351,441 10,064,326
Economic investment - - - - - 2,237,211 2,282,718 3,525,280 2,870,637 2,950,994
Strategic initiatives 5,988,904 7,980,605 7,673,680 5,297,998 6,052,063 5,299,595 7,585,671 10,603,712 15,096,120 20,306,807
Unassigned 14,351,627 16,399,991 18,230,317 19,762,633 18,745,735 11,799,021 12,517,340 14,022,976 15,810,846 14,681,556
Total general fund 20,782,522$ 24,563,413$ 26,138,618$ 25,348,386$ 25,097,918$ 27,010,967$ 30,668,552$ 37,644,723$ 43,725,563$ 49,113,423$
All Other Governmental Funds*
Nonspendable -$ -$ -$ -$ -$ 50,177$ -$ -$ -$ -$
Restricted for:
Debt Service 12,406,902 12,150,184 11,057,196 9,005,985 8,029,607 7,750,782 8,419,008 7,102,145 5,594,579 5,751,585
Capital projects - - - - - - - - - 26,395,656
Municipal court expenditures 823,737 860,556 878,490 838,458 868,393 851,104 847,247 739,828 775,437 835,268
Reinvestment zone expenditures 4,298,510 4,422,565 4,010,195 3,851,783 1,954,971 923,093 2,925,977 4,999,895 5,641,893 6,663,970
Parks and recreation 55,898,283 53,053,840 41,949,791 72,654,652 78,664,646 40,726,831 24,372,567 9,381,019 24,792,059 47,632,465
Storm water - - - - - - - 1,789,612 1,255,873 1,936,358
Police expenditures - - - - - - - - - 7,791,993
Library expenditures - - - - - - - - - 14,604
Promotion of culture and tourism - - - - - - - 1,834,337 2,089,422 2,653,697
Committed for:
Police expenditures 4,951,542 5,532,996 7,813,849 4,986,804 3,645,226 4,743,948 5,254,694 5,256,684 6,549,013 1,169,498
Parks and recreation 7,692,049 8,020,248 10,720,498 11,125,967 17,968,695 8,904,671 8,815,413 11,121,825 1,793,351 55,266
Oil and gas expenditures 53,220 53,160 53,168 53,227 53,404 53,719 54,754 55,424 55,541 -
Storm water expenditures 451,164 450,824 451,371 4,856,336 453,374 456,388 465,180 - - -
Library expenditures 15,844 7,967 8,832 7,132 7,432 8,338 9,528 11,323 12,725 -
Capital projects - - - - - 34,285,874 44,554,528 45,315,086 44,304,341 -
Assigned for:
Capital projects - - - - - - - - - 19,442,768
Unassigned - - - - - - - (175,833) - -
Total all other governmental funds 86,591,251$ 84,552,340$ 76,943,390$ 107,380,344$ 111,645,748$ 98,704,748$ 95,718,896$ 87,431,345$ 92,864,234$ 120,343,128$
Source: Annual Comprehensive Financial Report
Notes: a Includes encumbrances and prepaid items.
* The City started splitting parks and recreation with storm water and promotion of culture and tourism in 2020
Fiscal Year
City of Southlake, Texas Table 4
Changes in Fund Balances, Governmental Funds
(Modified Accrual Basis of Accounting)
Last Ten Fiscal Years
(Unaudited)
137
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
REVENUES
Ad valorem taxes, penalties and interest 31,844,934$ 33,174,810$ 33,294,062$ 34,445,902$ 37,688,372$ 40,484,511$ 41,744,243$ 41,980,391$ 41,675,661$ 41,429,872$
Franchise taxes 2,646,394 2,841,025 3,327,739 2,955,114 2,907,537 2,972,143 3,114,117 2,811,573 2,671,726 2,988,874
Municipal sales tax and mixed beverage tax 22,659,917 26,623,661 30,090,614 29,047,285 29,968,331 30,822,431 31,868,204 32,119,114 38,461,312 43,723,490
Licenses, permits and fees 3,517,378 3,925,956 4,385,000 4,590,477 4,103,003 2,184,965 3,161,228 2,868,166 2,041,189 3,071,428
Charges for services 1,876,302 1,778,003 1,849,747 1,797,676 1,909,922 1,984,377 4,970,991 5,013,769 5,783,552 7,104,883
Fines and forfeitures 2,473,444 2,374,221 1,943,406 2,011,137 1,969,180 2,040,036 1,798,033 968,495 954,809 1,213,211
Intergovernmental revenue 205,846 214,152 90,428 128,489 100,899 2,108,228 124,141 1,737,849 760,658 9,974,795
Capital recovery fees 794,976 474,172 866,782 1,237,552 308,095 376,004 621,715 693,293 232,525 773,745
Contributions 33,316 130,564 112,409 383,732 859,199 97,644 198,449 82,225 72,565 242,645
Investment income (losses)33,092 457,820 490,551 71,411 118,956 2,044,822 3,123,081 1,634,301 96,183 (448,117)
Miscellaneous 735,539 552,544 672,333 528,093 544,727 481,919 341,934 1,544,346 836,962 324,548
Total revenues 66,821,138 72,546,928 77,123,071 77,196,868 80,478,221 85,597,080 91,066,136 91,453,522 93,587,142 110,399,374
EXPENDITURES
General government 8,617,226 8,629,250 8,974,058 9,301,750 9,608,516 11,053,010 12,988,724 13,233,455 14,236,006 13,493,594
Public safety 17,096,436 16,924,285 16,968,939 17,376,310 18,520,588 19,806,464 21,145,351 21,534,858 22,015,080 22,719,906
Public works 5,818,028 6,303,749 5,332,402 5,483,131 19,112,170 23,225,431 5,687,428 7,834,577 7,177,205 8,861,496
Culture and recreation 6,980,508 7,227,628 7,441,366 8,456,526 8,783,323 8,026,149 21,815,043 13,226,045 11,202,609 13,118,278
Intergovernmental 3,572,221 3,834,118 4,478,312 4,623,919 5,348,444 6,045,218 6,123,926 7,214,798 6,049,200 5,934,584
Capital outlay 17,097,340 14,623,962 21,349,324 8,658,067 4,800,627 12,214,328 8,285,716 15,951,425 11,521,223 11,601,162
Debt service
Principal retirement 10,660,527 11,930,280 14,489,311 13,394,604 13,258,185 12,220,242 8,385,059 9,896,675 10,341,201 8,645,737
Interest and fiscal charges 4,839,491 4,982,567 3,894,535 3,796,740 4,084,086 3,695,048 3,175,731 3,108,014 2,629,585 2,321,838
Total expenditures 74,681,777 74,455,839 82,928,247 71,091,047 83,515,939 96,285,890 87,606,978 91,999,847 85,172,109 86,696,595
Excess (deficiency) of revenues
over (under) expenditures (7,860,639) (1,908,911) (5,805,176) 6,105,821 (3,037,718) (10,688,810) 3,459,158 (546,325) 8,415,033 23,702,779
OTHER FINANCING SOURCES (USES)
Sale of property 80 1,521 3,271 - - - 6,019 - 27,288 52,124
Issuance of tax notes payable - - - - - - - - 3,753,000 -
Issuance of general obligation bonds 11,765,000 4,380,000 - - - - - - - -
Premium (Discount) on issuance of refunding bonds - - - - 884,928 - 1,329,086 - - 8,595,000
Issuance of sales tax revenue bonds - - - 24,450,000 9,945,000 - - - - -
Issuance of refunding bonds 20,830,000 23,400,000 - - 3,830,000 - 10,860,000 - 1,989,000 -
Issuance of financed purchase obligation - - - - - - - - - 514,162
Premium (Discount) on issuance of general obligation bonds 3,753,175 1,301,376 - 2,168,153 - - - - - 737,765
Payment to refund bond escrow agent (24,030,579) (25,547,122) - - (4,309,151) - (12,311,639) - (1,954,804) -
Transfer from other funds 18,730,003 20,498,983 21,925,067 23,584,605 23,332,602 23,056,973 17,941,263 15,937,424 14,161,081 28,575,100
Transfer to other funds (18,214,528) (20,383,867) (22,156,907) (28,352,005) (24,940,577) (23,345,937) (20,662,331) (16,702,479) (14,876,959) (29,714,270)
Total other financing sources (uses)12,833,151 3,650,891 (228,569) 21,850,753 8,742,802 (288,964) (2,837,602) (765,055) 3,098,606 8,759,881
NET CHANGE IN FUND BALANCES 4,972,512$ 1,741,980$ (6,033,745)$ 27,956,574$ 5,705,084$ (10,977,774)$ 621,556$ (1,311,380)$ 11,513,639$ 32,462,660$
Debt service as a percentage
of noncapital expenditures 25.9%27.7%29.1%27.0%25.5%21.8%16.1%17.1% 17.6% 14.6%
Source: Annual Comprehensive Financial Report
Fiscal Year
City of Southlake, Texas Table 5
Assessed Value and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
(Unaudited)
138
Fiscal Year Real Property Personal Property
Less:
Tax-Exempt
Property
Total Taxable
Assessed Value
Total Direct Tax
Rate
2013 5,841,369,884$ 438,836,614$ 631,016,684$ 5,649,189,814$ 0.46200
2014 5,935,122,961 588,389,191 638,106,472 5,885,405,680 0.46200
2015 6,341,625,915 614,607,452 756,399,951 6,199,833,416 0.46200
2016 6,635,586,201 542,023,423 1,039,819,893 6,137,789,731 0.46200
2017 7,556,442,291 543,192,799 1,364,174,169 6,735,460,921 0.46200
2018 8,254,704,348 602,971,804 1,683,599,421 7,174,076,731 0.46200
2019 9,002,807,317 614,999,492 1,845,495,105 7,772,311,704 0.44700
2020 9,653,389,547 659,212,511 1,967,287,039 8,345,315,019 0.41000
2021 9,802,447,688 667,695,748 2,040,326,726 8,429,816,710 0.40500
2022 10,643,270,202 653,950,010 2,094,175,854 9,203,044,358 0.39000
Source: Tarrant Appraisal District
Estimated Market Value
City of Southlake, Texas Table 6
Direct and Overlapping Property Tax Rates (Per $100 of Assessed Value)
Last Ten Fiscal Years
(Unaudited)
139
Fiscal Year
Operating/
General Rate
General
Obligation
Debt Service Total Direct
Carroll
Independent
School District
Tarrant
County
Tarrant
County
Hospital
District
Tarrant
County
College
District
2013 0.34200 0.12000 0.46200 1.40000 0.264000 0.227897 0.14897
2014 0.34200 0.12000 0.46200 1.40000 0.264000 0.227897 0.14950
2015 0.34200 0.12000 0.46200 1.40000 0.264000 0.227897 0.14950
2016 0.36200 0.10000 0.46200 1.39500 0.264000 0.227897 0.14950
2017 0.36200 0.10000 0.46200 1.39500 0.254000 0.227897 0.14473
2018 0.36200 0.10000 0.46200 1.38500 0.244000 0.224429 0.14006
2019 0.35700 0.09000 0.44700 1.38000 0.234000 0.224429 0.13607
2020 0.33000 0.08000 0.41000 1.30000 0.234000 0.224429 0.13017
2021 0.33000 0.07500 0.40500 1.28640 0.234000 0.224429 0.13017
2022 0.32500 0.06500 0.39000 1.26860 0.229000 0.224429 0.13017
Source: Tarrant Appraisal District
City Direct Rates Overlapping Rates
City of Southlake, Texas Table 7
Principal Property Tax Payers
Current Year and Five Years Ago
(Unaudited)
140
Taxpayer
Taxable
Assessed Value
Percentage
of Total City
Taxable
Assessed
Valuea Taxpayer
Taxable
Assessed Value
Percentage
of Total City
Taxable
Assessed
Valueb
Town Square Ventures LP 241,812,229$ 2.63%Town Square Ventures LP 158,179,461$ 2.34%
Cellco Partnership 128,384,164 1.40%Dallas MTA LP 157,999,838 2.34%
TD Ameritrade Services Company INC 82,383,719 0.90%SLTS Grand Avenue/II LP 85,552,199 1.26%
SC Southlake Owner LLC 71,288,856 0.77%Carroll/1709 LTD 61,040,200 0.90%
Wyndham Properties LTD 52,687,728 0.57%Wyndham Properties LTD 57,166,286 0.85%
Carroll/1709 LTD 48,437,955 0.53%GAHC3 Southlake TX Hospital LLC 44,000,000 0.65%
Excel Southlake LP 46,005,178 0.50%Sabre Headquarters LLC 43,148,431 0.64%
DSL Landlord II LLC 38,300,000 0.42%Excel Southlake LP 38,525,000 0.57%
Varispace Southlake LLC 33,359,722 0.36%H & C Southlake Hilton LLC 37,250,579 0.55%
3503 RP Southlake Corners Kimball LP 33,260,000 0.36%Inland Western Southlake Corners Ltd 29,500,000 0.44%
Total 775,919,551$ 8.44%Total 712,361,994$ 10.54%
Total Assessed Valuation 9,203,044,358$ 100.00%Total Assessed Valuation 6,735,460,921$ 100.00%
Source: Tarrant Appraisal District
Notes: aTaxpayers are assessed on January 1, 2021 (2021 tax year) for the 2022 fiscal year.
bTaxpayers are assessed on January 1, 2016 (2016 tax year) for the 2017 fiscal year.
2022 2017
City of Southlake, Texas Table 8
Ad Valorem Tax Levies and Collections
Last Ten Fiscal Years
(Unaudited)
141
Fiscal Year
Taxes Levied for
the Fiscal Year Amount
Percentage of
Levy
Collections in
Subsequent
Years Amount
Percentage of
Levy
2013 26,053,160$ 25,762,457$ 98.88 165,611$ 25,928,068$ 99.52
2014 27,136,997 26,865,897 99.00 71,124 26,937,021 99.26
2015 27,791,839 27,556,790 99.15 106,945 27,663,735 99.54
2016 28,965,792 28,684,131 99.03 169,955 28,854,086 99.61
2017 31,410,934 31,054,006 98.86 95,328 31,149,334 99.17
2018 33,358,429 32,975,600 98.85 62,843 33,038,443 99.04
2019 34,957,519 34,486,820 98.65 2,758 34,489,578 98.66
2020 34,109,141 33,572,469 98.43 71,742 33,644,211 98.64
2021 34,329,457 33,833,652 98.56 (105,025) 33,728,627 98.25
2022 34,526,168 34,013,771 98.52 - 34,013,771 98.52
Source: Tarrant County Tax Office
Total Collections
Collected within the Fiscal Year of
the Levy
City of Southlake, Texas Table 9
Ratio of Outstanding Debt by Type
Last Ten Fiscal Years
(Unaudited)
142
Fiscal Year
General
Obligation
Bonds
Certificates of
Obligation
Revenue
Bonds Tax Notes
General
Obligation
Bonds
Certificates
of
Obligation
Revenue
Bonds
Contract
Revenue
Obligations
Total Primary
Government
Percentage
of Personal
Income a Per Capitaa
2013 49,975,889$ 44,402,760$ 28,910,000$ -$ 23,163,624$ 24,660,985$ -$ 1,435,000$ 172,548,258$ 9.81 6,372$
2014 45,355,674 41,553,855 27,150,000 - 18,923,955 28,009,860 - 1,100,000 162,093,344 10.93 5,910
2015 40,847,363 33,182,855 25,540,000 - 15,422,270 30,035,860 - 750,000 145,778,348 9.03 5,238
2016 40,733,282 29,511,905 48,330,000 - 12,974,232 29,143,202 - 385,000 161,077,621 9.30 5,694
2017 39,022,933 18,706,525 57,207,643 - 13,846,422 28,963,708 - - 157,747,231 8.08 5,358
2018 30,112,187 11,050,000 53,605,000 - 9,187,813 30,550,000 - - 134,505,000 6.14 4,547
2019 40,949,900 - 51,198,945 - 14,816,097 22,463,654 - - 129,428,596 6.01 4,270
2020 33,224,148 - 47,939,806 - 12,678,798 21,352,753 - - 115,195,505 5.29 3,793
2021 27,428,338 - 42,615,770 3,753,000 12,916,025 18,217,805 - - 104,930,938 5.31 3,692
2022 32,055,836 - 39,273,219 2,686,000 11,319,357 17,193,400 - - 102,527,812 4.09 3,248
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
aSee Table 13 for personal income and population data.
Business-Type ActivitiesGovernmental Activities
City of Southlake, Texas Table 10
Ratio of General Bonded Debt Outstanding
Last Ten Fiscal Years
(Unaudited)
143
Fiscal Year
General
Obligation
B onds
Certificates
of Obligation Total
Less:
Available
Debt Service
Funds
Net General
Bonded Debt
Percentage
of Actual
Taxable
Value of
Propertya Per Capita b
2013 73,139,513$ 69,063,745$ 142,203,258$ 10,056,551$ 132,146,707$ 2.30%4,793$
2014 64,279,629 69,563,715 133,843,344 9,809,483 124,033,861 2.07%4,437
2015 56,269,633 63,218,715 119,488,348 8,735,479 110,752,869 1.75%3,896
2016 53,707,514 58,655,107 112,362,621 6,899,109 105,463,512 1.68%3,653
2017 52,869,355 47,670,233 100,539,588 7,444,512 93,095,076 1.37%3,142
2018 39,300,000 41,600,000 80,900,000 7,345,622 73,554,378 1.02%2,473
2019 55,765,997 22,463,654 78,229,651 8,009,333 70,220,318 0.90%2,303
2020 45,902,946 21,352,753 67,255,699 6,774,153 60,481,546 0.72%1,981
2021 40,344,363 18,217,805 58,562,168 5,315,367 53,246,801 0.63%1,698
2022 43,375,193 17,193,400 60,568,593 5,436,574 55,132,019 0.66%1,919
Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements.
aSee Table 5 for property value data.
bSee Table 13 for population data.
General Bonded Debt Outstanding
City of Southlake, Texas Table 11
Direct and Overlapping Governmental Activities Debt
As of September 30, 2022
(Unaudited)
144
Gross Bonded Debt
Percentage of Debt
Applicable to Area
Share of Overlapping
Debt
Debt repaid with property taxes
Carroll ISD 311,395,000$ 85.02%264,748,029$
Denton County 559,930,000 0.15%839,895
Grapevine-Colleyville ISD 311,711,018 1.62%5,049,718
Keller ISD 836,595,184 2.43%20,329,263
Northwest ISD 1,353,929,040 0.93%12,591,540
Tarrant County 404,360,000 4.09%16,538,324
Tarrant County College District 610,315,000 4.09%24,961,884
Tarrant County Hospital District 12,825,000 4.09%524,543
Subtotal, overlapping debt 345,583,196
City of Southlake (direct debt)74,015,056$ 100.00%74,015,056
Total direct and overlapping debt 419,598,252$
Source: Municipal Advisory Council of Texas.
Note: Includes only debt of the City's governmental activities.
Note: Per the Municipal Advisory Council of Texas, the overlapping percentages are calculated by
determining the estimated share assessed valuation of taxable property within the overlapping
taxing bodies and the City, and then dividing that share value by the total assessed value of
taxable property within the overlapping tax body.
Governmental Unit
City of Southlake, Texas Table 12
Pledged-Revenue Coverage
Last Ten Fiscal Years
(Unaudited)
145
Fiscal Year Total Revenues a
Less: Operating
Expensesb
Net Available
Revenue
Annual
Requirement c Times Coverage
2013 24,852,430$ 14,846,831$ 10,005,599$ 4,894,720$ 2.04
2014 24,702,585 17,270,262 7,432,323 5,120,685 1.45
2015 26,112,528 18,238,461 7,874,067 5,335,396 1.48
2016 26,987,100 19,424,610 7,562,490 5,466,814 1.38
2017 28,110,890 20,039,979 8,070,911 6,090,382 1.33
2018 32,554,350 24,273,419 8,280,931 5,181,837 1.60
2019 31,390,422 25,607,271 5,783,151 4,263,334 1.36
2020 32,837,752 22,792,769 10,044,983 3,798,047 2.64
2021 32,008,486 22,835,444 9,173,042 3,329,146 2.76
2022 37,070,956 23,870,297 13,200,659 3,322,878 3.97
Note: a Includes operating and non-operating revenues.
b Includes operating expenses minus depreciation plus transfers out.
cIncludes Principal and Interest.
Water and Sewer System Revenue Bonds
City of Southlake, Texas Table 13
Demographic and Economic Statistics
Last Ten Calendar Years
(Unaudited)
146
Fiscal Year
Estimated
Populationa Personal Income
Per Capita
Personal Income School Enrollment c
Unemployment
Rated
2013 27,080 1,758,105,132$ 64,923$ 7,665 5.6%
2014 27,425 1,483,496,607 54,093 7,864 4.4%
2015 27,833 1,613,950,961 57,987 7,884 3.5%
2016 28,290 1,732,874,762 61,254 8,177 3.5%
2017 29,440 1,951,900,038 66,301 8,190 3.0%
2018 29,580 2,189,030,472 74,004 8,341 3.2%
2019 30,310 2,151,828,140 70,994 8,344 2.7%
2020 30,370 2,177,861,595 71,711 8,509 5.2%
2021 31,199 2,169,765,423 69,546 8,318 3.6%
2022 31,569 2,506,861,770 79,409 8,382 3.0%
Note: a City of Southlake Economic Development
b Carroll Independent School District
cTexas Workforce Commission
City of Southlake, Texas Table 14
Principal Employers
Current Year and Nine Years Ago
(Unaudited)
147
Employer a Employeesa
Percentage
of Total City
Employment Employer a Employeesa
Percentage
of Total City
Employment
Sabre Holdings 2,200 14.05%Sabre Holdings 3,500 26.35%
TD Ameritrade 1,867 11.92%
Carroll ISD 1,176 7.51%
Gateway Church 706 4.51%
Verizon Wireless 650 4.15%Verizon Wireless 637 4.80%
Keller Williams 650 4.15%
City of Southlake 564 3.60%
Central Market 390 2.49%Central Market 360 2.71%
CISD - Administration Building 1,123 8.46%
City of Southlake 357 2.69%
Hilton Southlake Hotel 245 1.84%
Costco Wholesale 200 1.51%
Century 21 Mike Bowman, Inc.200 1.51%
Total 8,203 52.37%Total 6,622 49.86%
Total Southlake Daytime Employees b 15,663 Total Southlake Daytime Employees b 13,282
Source: aCity of Southlake Economic Development
bTexas Workforce Commission
2022 2013
City of Southlake, Texas Table 15
Full-Time Equivalent City Government Employees by Function/Program
Last Ten Fiscal Years
(Unaudited)
148
Function/Program 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
General Government and
Administration 49.00 55.75 52.00 59.00 57.00 60.00 74.00 75.75 78.14 80.64
Public Safety 138.45 140.45 140.95 140.95 139.95 141.45 141.15 145.15 145.15 145.15
Public Works 29.95 27.25 33.25 28.25 34.50 35.50 35.00 35.00 35.00 34.35
Culture and Recreational 62.15 62.15 65.65 71.40 72.03 114.78 108.93 111.80 113.93 113.93
Water and Sewer 29.30 29.50 29.50 30.25 31.00 31.00 31.00 30.00 30.00 31.65
Community Development 21.00 23.00 23.00 23.00 23.00 23.00 22.00 23.00 22.50 22.50
Economic Development 3.50 4.00 4.00 4.00 1.00 1.00 2.00 3.63 3.63 4.00
Total 333.35 342.10 348.35 356.85 358.48 406.73 414.08 424.33 428.35 432.22
Source: City Budget
Fiscal Year
City of Southlake, Texas Table 16
Operating Indicators by Function/Program
Last Ten Fiscal Years
(Unaudited)
149
Function/Program 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Public Safety
Police
Number of Employees 53 68 68 68 67 68 72 72 72 72
Number of Violations (Citations)21,497 32,641 30,451 14,858 13,840 13,492 13,759 9,095 8,230 9,551
Number of Arrests 1,079 1,284 1,095 513 1,148 1,027 719 1,025 838 1,199
Number of Alarm calls 3,889 3,087 3,497 3,673 3,284 3,434 3,171 2,465 2,549 2,509
Fire
Number of Employees 68 72 72 73 73 73 73 73 73 73
Number of Fire runs 1,215 1,245 1,220 760 807 811 748 999 1,036 834
Number of EMS runs 1,356 1,492 1,448 1,745 1,808 1,802 1,875 1,517 1,994 2,256
Number of Hazardous materials runs 80 56 43 95 105 109 90 94 92 111
Number of Alarm calls 448 461 501 608 652 651 678 602 748 659
Development Services
Streets maintained (miles)245 268 204 209 199 211 213 214 214 214
Streets crack sealed (blocks)121 94 N/A N/A 75 391 384 5 0 68
Roadway signage replaced/installed 216 188 N/A 568 N/A 21 136 13 132 128
Asphalt repairs (tons)2,414 2,802 4,849 4,667 6,671 5,191 6,100 213 7,747 151
Concrete repairs to roads/sidewalks (cu. yds.)294 240 2,421 308 1,462 1,188 503 41 1,269 11
Right-of-way maintenance (miles)484 484 N/A N/A 5 417 417 558 55 7
Building Permits Issueda 2,917 3,051 2,979 2,703 3,163 3,453 3,133 2,834 3,209 3,372
Planning & Zoning cases heard 121 143 136 190 100 110 76 62 82 53
Cultural and Recreational
Parks and Recreation
Park maintain & operate per acre 800 1,205 1,200 1,106 1,106 1,106 1,106 1,106 561 561
Participants in Leisure Service Programs 13,170 6,227 6,200 8,687 8,735 9,844 17,555 8,065 7,360 13,010
Participants in Special Events 46,500 47,000 60,000 66,000 72,625 71,400 65,000 900 36,300 44,000
Participants in Senior Center Programs 10,609 4,935 4,900 8,868 13,449 13,552 14,068 4,989 6,390 6,691
Library
Volumes in Collection 50,250 46,781 44,971 45,416 44,899 43,947 41,789 43,699 41,895 42,607
Patrons 21,622 16,662 16,838 13,461 13,764 14,327 15,267 13,274 14,467 15,446
Water and Sewer
Number of Water Consumers 9,765 9,825 10,183 10,581 10,941 11,009 11,133 11,236 11,349 11,461
Number of Sewer accounts 7,918 7,770 8,167 8,470 8,889 9,111 11,886 9,053 9,142 9,229
Line inspections (feet)190,000 217,000 1,086,624 789,266 687,246 574,136 641,941 377,081 214,789 141,503
Water meters installed/repaired/replaced 565 745 1,284 10,566 135 191 279 186 359 -
Transmitters installed/replaced 140 610 N/A 10,566 489 124 113 466 1,327 -
Gallons purchased from Ft. Worth (millions)3,472,212 3,220,075 3,069,971 2,904,048 3,206,363 3,156,019 2,762,227 3,013,801 3,057,825 3,914,878
Gallons distributed (millions)3,125,358 2,964,457 3,069,971 2,935,818 2,900,926 3,229,438 2,363,542 2,957,582 2,731,697 3,569,090
Maximum Storage Capacity (million of gallons)21 21 21 21 21 21 21 21 21 21
Source: City Departments
Notes: N/A Data not available
aIncludes residential, commercial, and miscellaneous (e.g. pools, fences) permits.
Fiscal Year
City of Southlake, Texas Table 17
Capital Asset Statistics by Function/Program
Last Ten Fiscal Years
(Unaudited)
150
Function/Program 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Public Safety
Police Stations 2 3 3 3 3 3 3 3 3 3
Police Patrol Units 23 26 25 25 25 25 25 21 23 20
Fire Stations 2 3 3 3 3 3 3 3 3 3
Police Motorcycle Units 5 5 5 5 5 5 5 5 5 5
Cultural and Recreational
Parks 18 18 18 18 18 18 18 18 35 35
Playgrounds 3 5 7 6 6 6 7 7 6 7
Dog Park 1 1 1 1 1 1 1 1 1 1
Senior Center 1 1 1 1 1 1 1 1 1 1
Tennis Courts 21 21 21 21 21 21 21 21 21 21
In-line hockey rink/turf fielda 1 1 1 1 1 1 1 1 1 1
Ballfields 21 44 32 27 29 29 29 29 22 22
Soccer Fields 17 17 13 12 21 21 21 21 21 21
Nature Center 1 1 1 1 1 1 1 1 1 1
Water and Sewer
Water Mains (miles)206 294 285 290 284 298 301 304 293 294
Lift Stations 15 14 13 13 14 15 15 15 9 13
Sanitary Sewer Mains (miles)206 209 206 209 212 216 218 220 220 222
Drainage, ditches/creeks (miles)91 91 36 36 48 52 51 51 42 51
Fire hydrants 2,395 2,486 2,594 2,643 2,723 2,774 2,809 2,854 2,919 2,938
Water valves 6,388 6,686 N/A 7,154 7,360 7,553 7,673 7,818 8,023 8,104
Source: City Departments
Note: N/A - Data not available
aIn-line hockey rink converted to turf field in 2020.
Fiscal Year