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Item 6K - Staff ReportJUU 1 t-1LHl�l= Item 6K MEMORANDUM August 25, 2025 TO: Alison Ortowski, City Manager FROM: Sharen Jackson, Chief Financial Officer SUBJECT: Approval of the amended Fiscal Year 2025 Southlake Crime Control and Prevention District Operating Budget and adoption of Fiscal Year 2026 Operating Budget Action Requested: Approval of amended Fiscal Year 2025 Southlake Crime Control and Prevention District Operating Budget and adoption of Fiscal Year 2026 Operating. Background Information: Your packet contains the operating budget adopted by the Crime Control and Prevention District Board of Directors on July 29, 2025. The proposed operating budget provides for the continuation of the SRO funding ($2,402,613) and Town Square security initiative ($53,320). The new request for FY 2026 includes the following: • SWAT Ballistic Vest Replacement $37,730 (This funding will replace 11 SWAT ballistic vests for Southlake SWAT operators and SWAT medics assigned to NTR Regional SWAT in accordance with the Department's established vest replacement program and schedule. Ballistic vest manufacturers typically warranty their products for five years. Achieve the highest standards of safety and security through modern technology and equipment. • SWAT Ballistic Helmet Replacement $16,808 (This funding will replace and update nine (9) SWAT ballistic helmets for SWAT operators and a SWAT medic in accordance with the Department's established equipment replacement program and schedule. Ballistic helmets are vital protective gear designed to shield operators from ballistic and blunt force trauma during high -risk operations. Achieve the highest standards of safety and security through modern technology and equipment. • Less -lethal 40MM Impact Munitions $7,507 (This funding will purchase two (2) 40 mm less -lethal impact munitions launchers, the associated training, and training ammunition. This equipment provides an additional less lethal force option for use during situations where the potential for violence exists and enables officers to safely de-escalate, neutralize, and gain control of threats from a greater distance than other traditional less lethal equipment.) Achieve the highest standards of safety and security through modern technology and equipment and a well -trained, well- equipped, and professional police department. • Defensive Tactics Training Equipment Replacement $4,945 (This funding will purchase defensive tactics equipment to replace and upgrade aging gear. Southlake Police instructors utilize a variety of equipment, such as striking pads, training batons, training tasers, and inert spray to conduct realistic, scenario -based training and drills for officers in a controlled environment. This equipment increases training effectiveness while mitigating officer injuries during training. ) Achieve the highest standards of safety and security through modern technology and equipment and a well -trained, well-equipped, and professional police department. • Police Bicycle $2,000 (This funding will purchase one (1) Police bicycle for use by SROs who are members of the Department's Police Bike Team to support school campus patrol operations and to enhance visibility, mobility, and engagement while patrolling school grounds.) Achieve the highest standards of safety and security through modern technology and equipment and a well -trained, well- equipped, and professional police department. • Police Records Scanning Project $38,991 (This item is part of a larger city Laserfiche upgrade, and this funding will provide a one-time contract service to digitally scan existing Police records and criminal case files into a secure Laserfiche repository for preservation and safekeeping with required retention schedules. Laserfiche is a system that digitizes, secures and centralizes documents and automates workflows. This project will enhance record and file security, mitigate risk and increase efficiency in processing requests in response to the Texas Public Information Act as well as those from municipal and county courts and the Criminal District Attorney's Office.) Achieve the highest standards of safety and security through modern technology and equipment and a well -trained, well-equipped, and professional police department. The total funding requested for FY 2025 CCPD operating funds is $2,699,896, with an operating transfer of $115,202 for indirect charges. Financial Considerations: The proposed operating budget includes projected sales tax and interest income of $2,880,040. $2,699,896 for operating expenditures, and a transfer out of $115,202, with an ending fund balance of $5,421,251. Strategic Link: C2: Enhancing the sense of community by proactively creating opportunities for community partnerships, volunteer involvement, and citizen engagement. B2: Collaborating with select partners to implement service solutions. F2: Investing to provide and maintain high -quality public assets. Citizen Input/ Board Review: A Public Hearing is scheduled for September 2, 2025. Legal Review: None required. Alternatives: Approve or reject the budget submitted Supporting Documents: CCPD Fund Summary -Operating Budget Staff Recommendation: Approval of the amended FY 2025 and adoption of the proposed FY 2026 operating budget. REVENUES Sales Tax Miscellaneous Income Interest Income Total Revenues EXPENDITURES Personnel Operations Capital Total Expenditures Net Revenues Financed Proceeds Transfers Out -General Fund Transfers Out -Crime Control Project Fund Total Other Sources (Uses) Beginning Fund Balance Ending Fund Balance SOUTHLAKE CRIME CONTROL AND PREVENTION DISTRICT - OPERATING FUND FY 2026 Proposed Budget October 1, 2025 through September 30, 2026 01:08 PM 07/23/25 2024 Actual 2025 Adopted 2025 Amended $ Increase/ (Decrease) Adopted % Increase/ -Decrease 2026 Proposed $ Increase/ (Decrease) Adopted % Increase/ -Decrease $2,600,691 $2,652,000 $2,652,000 $0 0.0% $2,705,040 $53,040 2.0% 0 0 0 $0 0.0% $0 ($0) 0.0% 250 002 $185,000 $185,000 L0 0.0% $175,000 10 000 -5.4% $2,850,693 $2,837,000 $2,837,000 $0 0.0% $2,880,040 $43,040 1.5% $2,014,210 $2,177,551 $2,177,551 $0 0.0% $2,268,657 $91,106 4.2% $358,931 $565,056 $565,056 0 0.0% $431,239 (133,817) -23.7% 32 547 N0 L0 0 0.0% L0 f 0) -100.0% $2,405,688 $2,742,607 $2,742,607 $0 0.0% $2,699,896 ($42,711) -1.6% $445,005 $94,393 $94,393 $0 $180,144 $85,751 $0 $0 $0 $0 (111,400) (113,480) (113,480) (115,202) 33( 4,500) 0 0 0 (445,900) (113,480) (113,480) (115,202) $5,376,291 $5,375,396 $5,375,396 $5,356,309 $5.375.396 $5.356.309 $5.356.309 $5.421.251 (Reference to Section 363.203, Local Government Code, Annual Budget Proposal.) 1. The District does not have any outstanding obligations. 2. There is $5,356,309 in the Operating Fund and $860,000 in Capital Projects Fund estimated to be on hand as of the beginning of FY 2026 3. An estimated $2,705,040 is expected to be received by the District during FY 2026 in sales tax revenues. 4. Total revenue is estimated at $2,880,040, consisting of sales tax and interest income. 5. Total money requested to fund programs is $2,699,896 for personnel, equipment and technology. 6. Total operating transfer of $115,202 requested for indirect charge. 7. The sales tax rate is .125%. 8. There is $5,421,251 in the Operating Fund and $700,000 in the Capital Projects Fund estimated to be on hand as of the end of FY 2026. 9. Total revenues available to cover the proposed budget are $2,880,040 and fund balance.