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Item 3B2 - Monthly Financial ReportReference Page 3 Page 3 Page 4 Page 4 Page 5 MONTHLY FINANCIAL REPORT January 2026 = Negative Variance of > 4% compared to seasonal trends. Positive Negative PERFORMANCE AT A GLANCE Year to Date 3 year Trend Positive PERFORMANCE INDICATORS Positive Warning Permit Revenues Positive Positive Departmental Expenditures Summary Positive = Negative variance of 1-4% compared to seasonal trends = Positive variance or negative variance <1% compared to seasonal trends. GENERAL FUND PositiveGeneral Fund Exp. Vs. Rev. Sales Tax Revenue (2 months prior activity) Property Tax Revenue Positive Positive Positive Positive City of Southlake Monthly Financial Report 1 2/11/2026 National GDP: Housing Starts: Federal reporting on construction statistics was delayed due to the government shutdown. December 2025 figures have not been published in the normal Census Bureau New Residential Construction report UNEMPLOYMENT RATES 4.3% The Dallas/Fort Worth/Arlington Metropolitan Area unemployment rate for December 2025 decreased to 3.6% when compared to 4.0% in November 2025. 3.6% State-wide:4.3% The Texas Unemployment rate for December 2025 (preliminary) slightly increased to 4.3% from 4.2% in November 2025. DFW Area: ECONOMIC INDICATORS NATIONAL ECONOMY FINANCIAL ACTIVITY4.4% GDP is defined as the output of goods and services produced by labor and property located in the United States, The Bureau of Labor and Economic Analysis reported that the "updated" estimated GDP for the 3rd quarter of 2025 increased at a rate of 4.4%. In the 2nd quarter of 2025, GDP increased at a rate of 3.8%. The National Unemployment rate for January 2026 decreased to 4.3%, compared to 4.4% in December 2025. National: 5 YEAR TREND OF NEW CONSTRUCTION PERMIT VALUES $- $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000 $70,000,000 $80,000,000 $90,000,000 2022*2023*2024*2025*2026* Construction permit values*October-January City of Southlake Monthly Financial Report 2 2/11/2026 GENERAL FUND FY 2026 REVENUE FY 2026 EXPENDITURE VARIANCE Oct 658,832$ 4,794,054$ (4,135,222)$ Nov 2,584,279$ 3,902,817$ (1,318,538)$ Dec 7,660,757$ 4,371,726$ 3,289,031$ Jan 15,366,755$ 3,710,493$ 11,656,262$ Feb -$ -$ -$ Mar -$ -$ -$ Apr -$ -$ -$ May -$ -$ -$ Jun -$ -$ -$ Jul -$ -$ -$ Aug -$ -$ -$ Sep -$ Tot 26,270,623$ 16,779,090$ 9,491,533$ POSITIVE FY 2026 FY 2025 FY 2024 Oct 2,090,232$ 1,792,542$ 1,639,596$ Nov 1,911,949$ 1,815,114$ 1,701,432$ Dec 2,832,105$ 2,552,523$ 2,383,801$ Jan -$ 1,722,503$ 1,643,095$ Feb -$ 1,470,957$ 1,458,994$ Mar -$ 1,961,273$ 1,859,641$ Apr -$ 1,828,118$ 1,749,381$ May -$ 1,836,616$ 1,660,932$ Jun -$ 1,837,179$ 1,777,233$ Jul -$ 1,806,454$ 1,653,109$ Aug 1,717,354$ 1,710,382$ Sep 1,889,172$ 1,690,978$ Tot 6,834,286$ 22,229,805$ 20,928,572$ GENERAL FUND REVENUE VS EXPENDITURES 2026 OVERALL FUND PERFORMANCE: REVENUE ANALYSIS GENERAL FUND SALES TAX 2026-2024 COMPARISON CHART OUTLOOK: CHART OUTLOOK: Year-to-date revenue is trending below budget. Staff will continue to monitor revenue and expenditures closely. Year-to-date collections are trending higher than FY 2025 (10.9%)and FY 2024 (19.4%)collections.December 2025 sales are higher than December 2024 (11.0%)and December 2023 (18.8%)collections.Year-to- date collections are above budget for the year, so the outlook is considered positive. Staff will continue to monitor collections closely. POSITIVE $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 FY 2026 FY 2025 FY 2024 $- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 $16,000,000 $18,000,000 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep FY 2026 REVENUE FY 2026 EXPENDITURE 2025 EXPEND. City of Southlake Monthly Financial Report 3 2/11/2026 GENERAL FUND FY 2026 FY 2025 FY 2024 Oct 312,284$ 415,744$ 577,913$ Nov 2,105,365$ 2,389,817$ 2,012,904$ Dec 4,884,201$ 4,489,786$ 8,236,314$ Jan 12,750,099$ 14,130,006$ 10,376,818$ Feb -$ 5,620,386$ 5,623,897$ Mar -$ 640,868$ 532,180$ Apr -$ 295,560$ 257,466$ May -$ 205,571$ 198,604$ Jun -$ 460,606$ 516,677$ Jul *-$ (1,089,408)$ (1,139,094)$ Aug -$ 107,845$ 88,418$ Sep -$ 21,654$ 16,945$ Tot 20,051,949$ 27,688,435$ 27,299,042$ POSITIVE FY 2026 FY 2025 FY 2024 Oct 119,457$ 332,221$ 110,053$ Nov 129,258$ 121,292$ 284,653$ Dec 143,697$ 104,932$ 69,759$ Jan 119,083$ 133,336$ 90,986$ Feb -$ 145,396$ 93,595$ Mar -$ 135,536$ 226,182$ Apr -$ 137,408$ 121,572$ May -$ 192,289$ 198,453$ Jun -$ 152,593$ 159,935$ Jul -$ 124,896$ 135,053$ Aug -$ 112,085$ 100,564$ Sep 117,989$ 156,642$ Tot 511,495$ 1,809,973$ 1,747,447$ PERMIT REVENUE 2026-2024 COMPARISON CHART OUTLOOK: REVENUE ANALYSIS (continued) PROPERTY TAX 3 YEAR TREND CHART OUTLOOK: As of January,the 2026 YTD property tax collections ($20,051,949)are lower than 2025 YTD ($24,425,353)and FY 2024 YTD ($21,203,949),approximately 6.41%and 5.43%,respectively.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 below budget. * Net transfer of TIF revenues to TIF fund The value of new construction permits ($26.3M+)issued for FY 2026 YTD is approximately 62.2%and 77.4%less than in FY 2025 and FY 2024,respectively.FY 2026 YTD permit revenue is 26.1%and 7.9%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. POSITIVE $(2,000,000) $- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 $16,000,000 Oct Nov Dec Jan Feb Mar Apr May Jun Jul *Aug FY 2026 FY 2025 FY 2024 $- $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep FY 2026 FY 2025 FY 2024 City of Southlake Monthly Financial Report 4 2/11/2026 FY 2026 ACTUAL YTD (JANUARY) FY 2025 ACTUAL YTD (JANUARY) FY 2026 BUDGET YTD (JANUARY)FY 2025 % SPENT 381,411$ 354,674$ 475,414$ 80.23% 345,018$ 342,937$ 390,391$ 88.38% 1,918,012$ 2,002,646$ 2,653,624$ 72.28% 176,136$ 181,548$ 273,193$ 64.47% 7,457,403$ 7,193,238$ 11,755,663$ 63.44% 128,688$ 164,320$ 182,068$ 70.68% 1,079,071$ 1,089,775$ 1,119,003$ 96.43% 203,343$ 210,568$ 386,100$ 52.67% 1,493,775$ 1,357,150$ 2,087,210$ 71.57% 746,468$ 726,063$ 947,394$ 78.79% 1,464,429$ 1,578,842$ 2,261,794$ 64.75% 1,385,336$ 1,163,549$ 1,601,628$ 86.50% 16,779,090$ 16,365,310$ 24,133,482$ 69.53% EXPENDITURE ANALYSIS POSITIVE 136,625$ 97,057$ 4,298,260$ 53,380$ 39,932$ 182,757$ 593,435$ CSO DPS ED FIN HR IT DEPARTMENTAL EXPENDITURES SUMMARY 2,081$ 45,373$ COMM BUDGET VARIANCE 94,003$ 735,612$ 20,405$ (114,413)$ 221,787$ 413,780$ As indicated above,2026 expenditures are higher than 2025 expenditures for the same period,with a increase of 2.5%primarily due to compensation changes for the year.The outlook is positive,as expenditures are on pace to be within budgeted expenditures for the fiscal year. FY 2025/2026 YTD VARIANCE 26,737$ (84,634)$ (5,412)$ 264,165$ (35,632)$ (10,704)$ SS Totals PW CMO CS 7,354,392$ CHART OUTLOOK: 216,292$ 797,365$ (7,225)$ 200,926$ PDS $- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 $16,000,000 $18,000,000 CMO COMM CS CSO DPS ED FIN HR IT PDS PW SS FY 2026 ACTUAL YTD (JANUARY)FY 2025 ACTUAL YTD (JANUARY)FY 2026 BUDGET YTD (JANUARY) City of Southlake Monthly Financial Report 5 2/11/2026