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Item 3B2 - Monthly Financial ReportCITY OF S0UTHLA1<,..-E 0 MONTHLY FINANCIAL REPORT December 2025 PERFORMANCE AT A GLANCE Year to Date 3 year Trend Reference . General Fund Exp. Vs. Rev. Positive Positive Page 3 Sales Tax Revenue (2 months prior activity) Positive Positive Page 3 Property Tax Revenue Positive Positive Page 4 Permit Revenues Positive Positive Page 4 Departmental Expenditures Summary Positive Positive Page 5 Positive = Positive variance or negative variance <1 % compared to seasonal trends. Warning = Negative variance of 1-4% compared to seasonal trends Negative = Negative Variance of > 4% compared to seasonal trends. City of Southlake Monthly Financial Report 1 1/13/2026 ECONOMIC INDICATORS NATIONAL ECONOMY FINANCIAL ACTIVITY National GDP: h4. GDP is defined as thee output of goodsds and services produced by labor and property located in the United States, The Bureau of Labor and Economic Analysis reported that the "initial' estimated GDP for the 3rd 5 YEAR TREND OF • • $90,000,000 quarter of 2025 increased at a rate of 4.3%. In the 2nd quarter of 2025, GDP increased at a rate of 3.8%. $80,000,000 Housing Starts: $70,000,000 Federal reporting on construction statistics was delayed due to the government shutdown. November 2025 figures have not been published in the normal $60,000,000 Census Bureau New Residential Construction report UNEMPLOYMENT RATES $50,000,000 $40,000,000 National: 4.4% The National Unemployment rate for December 2025 decreased to 4.4%, compared to 4.5% in $30,000,000 November 2025. $20,000,000 State-wide: 4.2% The Texas Unemployment rate for November 2025 (preliminary) slightly increased to 4.2% from 4.1 % in $10,000,000 September 2025. October numbers are not available due to the government shutdown. $_ 2022* 2023* 2024* 2025* 2026* DFW Area: 1/ 4.2% The Dallas/Fort Worth/Arlington Metropolitan Area *October -December ■ Construction permit values unemployment rate for September 2025 decreased to 4.2% when compared to 4.4% in August 2025. October and November numbers are not available due to government shutdown. City of Southlake Monthly Financial Report 2 1/13/2026 GENERAL FUND OVERALL FUND PERFORMANCE: GENERAL FUND REVENUE VS EXPENDITURES 2026 FY 2026 FY 2026 FY 2026 REVENUE FY 2026 EXPENDITURE 2025 EXPEND. REVENUE EXPENDITURE VARIANCE Oct $ 660,833 $ 4,794,054 $ (4,133,221) $9,000,000 Nov $ 2,584,279 $ 3,902,817 $ (1,318,538) $8,000,000 Dec $ 7,660,757 $ 4,228,283 $ 3,432,474 Jan $ - $ - $ $7,000,000 Feb $ $ $ $6,000,000 Mar $ $ $ Apr $ $ $ $5,000,000 May $ $ $ $4,000,000 — Jun $ $ $ Jul $ - $ _ $ _ $3,000,000 Aug $ $ $ $2,000,000 Sep $ Tot $ 10,905,869 $ 12,925,154 $ (2,019,285) $1,000,000 $- CHART OUTLOOK: POSITIVE Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Year-to-date revenue is trending below budget. Staff will continue to monitor revenue and expenditures closely. REVENUE ANALYSIS GENERAL FUND SALES TAX 2026-2024 COMPARISON FY 2026 FY 2025 FY 2024 FY 2026 FY 2025 FY 2024 Oct $ 2,090,232 $ 1,792,542 $ 1,639,596 $3,000,000 Nov $ 1,911,949 $ 1,815,114 $ 1,701,432 Dec $ - $ 2,552,523 $ 2,383,801 $2,500,000 Jan $ - $ 1,722,503 $ 1,643,095 Feb $ $ 1,470,957 $ 1,458,994 $2,000,000 Mar $ - $ 1,961,273 $ 1,859,641 _ Apr $ $ 1,828,118 $ 1,749,381 $1,500,000 May $ - $ 1,836,616 $ 1,660,932 Jun $ $ 1,837,179 $ 1,777,233 $1,000,000 Jul $ - $ 1,806,454 $ 1,653,109 Aug $ 1,717,354 $ 1,710,382 $500,000 Sep $ 1,889,172 $ 1,690,978 Tot $ 4,002,181 $ 22,229,805 $ 20,928,572 $- Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep CHART OUTLOOK: POSITIVE Year-to-date collections are trending higher than FY 2025 (10.9%) and FY 2024 (19.8%) collections. November 2025 sales are higher than November 2024 (5.3%) and November 2023 (12.4%) collections. Year-to-date collections are above budget for the year, so the outlook is considered positive. Staff will continue to monitor collections closely. City of Southlake Monthly Financial Report 3 1/13/2026 GENERAL FUND REVENUE ANALYSIS (continued) PROPERTY TAX 3 YEAR TREND FY 2026 FY 2025 FY 2024 ■ FY 2026 ■ FY 2025 FY 2024 Oct $ 312,284 $ 415744 $ 577913 $16,000,000 Nov $ 2,105,365 $ 2,389:817 $ 2,012:904 $14,000,000 Dec $ 4,884,201 $ 4,489,786 $ 8,236,314 $12,000,000 Jan $ - $ 14,130,006 $ 10,376,818 $10,000,000 Feb $ $ 5,620,386 $ 5,623,897 Mar $ - $ 640,868 $ 532,180 $5,000,000 Apr $ $ 295,560 $ 257,466 $6,000,000 May $ - $ 205,571 $ 198,604 $4,000,000 Jun $ $ 460,606 $ 516,677 $2,000,000 Jul * $ - $ (1,089,408) $ (1,139,094) $- - Aug $ - $ 107,845 $ 88,418 $(2,000,000) Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep $ $ 21,654 $ 16,945 Tot $ 7,301,850 $ 27,688,435 $ 27,299,042 * Net transfer of TIF revenues to CHART OUTLOOK: POSITIVE TIF fund As of December, the 2026 YTD property tax collections ($7,301,850) are slightly higher than 2025 YTD ($7,295,347) approximately 32.6% lower than 2024 YTD ($10,827,131). As indicated on the chart, the majority of the property tax revenue is collected in the second quarter of the fiscal year. YTD collections are trending slightly below budget. PERMIT REVENUE 2024-2022 COMPARISON FY 2026 FY 2025 FY 2024 � FY 2026 � FY 2025 FY 2024 Oct $ 119,457 $ 332,221 $ 110,053 $350,000 Nov $ 129,258 $ 121,292 $ 284,653 Dec $ 143,697 $ 104,932 $ 69,759 $300,000 Jan $ - $ 133,336 $ 90,986 Feb $ $ 145,396 $ 93,595 $250,000 Mar $ - $ 135,536 $ 226,182 Apr $ $ 137,408 $ 121,572 $200,000 May $ - $ 192,289 $ 198,453 Jun $ $ 152,593 $ 159,935 $150,000 ILI Jul $ - $ 124,896 $ 135,053 $100,000 Aug $ $ 112,085 $ 100,564 Sep $ 117,989 $ 156,642 $50,000 Ir" Tot $ 392,412 $ 1,809,973 $ 1,747,447 CHART OUTLOOK: POSITIVE Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep The value of new construction permits ($19.5M+) issued for FY 2026 YTD is approximately 66.8% and 139.3% less than in FY 2025 and FY 2024, respectively. FY 2026 YTD permit revenue is 29.7% and 15.5% lower than in FY 2025 and 2024, respectively. The permit revenue year to date is trending slightly above budget, so the outlook is considered positive. City of Southlake Monthly Financial Report 4 1/13/2026 EXPENDITURE ANALYSIS DEPARTMENTAL EXPENDITURES SUMMARY FY 2026 ACTUAL FY 2025 ACTUAL FY 2026 BUDGET FY 2025/2026 YTD YTD (DECEMBER) YTD (DECEMBER) YTD (DECEMBER) VARIANCE BUDGET VARIANCE FY 2025 % SPENT CMO $ 282,035 $ 262,809 $ 339,584 $ 19,226 $ 57,549 83.05% COMM $ 284,400 $ 286,408 $ 337,896 $ (2,008) $ 53,496 84.17% CS $ 1,463,243 $ 1,550,120 $ 2,117,782 $ (86,877) $ 654,539 69.09% CSO $ 138,027 $ 139,460 $ 194,905 $ (1,433) $ 56,878 70.82% DPS $ 5,564,746 $ 4,626,642 $ 8,386,759 $ 938,104 $ 2,822,013 66.35% ED $ 97,830 $ 112,677 $ 156,754 $ (14,847) $ 58,924 62.41% FIN $ 852,262 $ 837,653 $ 787,689 $ 14,609 $ (64,573) 108.20% HR $ 152,923 $ 155,152 $ 284,811 $ (2,229) $ 131,888 53.69% IT $ 1,243,043 $ 922,906 $ 1,738,443 $ 320,137 $ 495,400 71.50% PDS $ 545,876 $ 541,759 $ 731,227 $ 4,117 $ 185,351 74.65% PW $ 1,032,225 $ 1,077,150 $ 1,704,108 $ (44,925) $ 671,883 60.57% SS $ 1,268,544 $ 1,060,835 $ 1,236,023 $ 207,709 $ (32,521) 102.63% Totals $ 12,925,154 $ 11,573,571 $ 18,015,981 $ 1,351,583 $ 5,090,827 71.74% FY 2026 ACTUAL YTD (DECEMBER) FY 2025 ACTUAL YTD (DECEMBER) FY 2026 BUDGET YTD (DECEMBER) $18,000,000 $16,000,000 $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 A'r\ $-- 1'/ COMM CS CSO DPS ED FIN HR IT PDS PW SS CHART OUTLOOK: POSITIVE As indicated above, 2026 expenditures are higher than 2025 expenditures for the same period, with a increase of 11.7% primarily due to the timing of contract payments. The outlook is positive, as expenditures are on pace to be within budgeted expenditures for the fiscal year. City of Southlake Monthly Financial Report 5 1/13/2026