Item 9A - MemoM E M O R A N D U M
February 10, 2026
To: Honorable Mayor and Council Members
From: Alison Ortowski, City Manager
Subject: Approving and adopting the FY 2026-2030 Capital Improvements Program.
Action
Requested: Approve and adopt the FY 2026 – FY 2030 Capital Improvements
Program.
Background
Information: The purpose of this item is to seek City Council approval of the FY 2026 –
FY 2030 Capital Improvements Program (CIP). In accordance with the
Texas Local Government Code and the Charter of the City of Southlake,
the proposed FY 2026 – FY 2030 Capital Improvements Program was
presented to the City Council at the February 3, 2026, City Council
meeting.
The City of Southlake adopts a five-year CIP. A multi-year capital project
plan provides a strategic advantage by offering a comprehensive roadmap
for long-term infrastructure development, allowing for better resource
allocation and budgeting over an extended period. This approach
enhances project efficiency and stakeholder confidence, as it promotes
continuity, minimizes uncertainty, and fosters a more informed decision -
making process, ultimately ensuring the successful and timely completion
of complex, phased initiatives.
The City’s approach to capital budgeting continues to focus on a five- year
plan, but the process of adopting a CIP changed with the FY 2024 budget.
Previously, a detailed CIP was included as a part of the annual budget
submitted to City Council prior to the beginning of the fiscal year. However,
the process was adjusted in FY 2024 so that the City Council approved
funding allocation for the CIP with the annual operating budget adopted in
September.
This separate proposal, the Capital Improvements Program, identifies
specific projects for the five-year planning period. The proposal also offers
details on each project and provides information on funding sources and
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types. The new approach of providing a distinct operating budget and
Capital Improvements Program to City Council, on different schedules,
enhances the focus and attention to the details of each.
The first year of the CIP is referred to as the capital budget and is the only
year of the multi-year project plan that receives funding allocation, through
both cash and the issuance of debt. The remaining years shown in the plan
are used for planning purposes only and do not receive expenditure
authority until they are part of the capital budget that is considered by the
City Council each year.
CIP Development Process
Southlake’s Capital Budget cycle begins in October with the submission of
project proposals and concludes in February with City Council adoption.
The City’s CIP Governance Committee, a cross-department group that is
comprised of the Executive Leadership Te am and key department
stakeholders, review submissions at the beginning of the process and
evaluate and prioritize projects considering a variety of factors, including
alignment established strategic priorities and CIP guiding principles,
financial policies and goals, as well as asset management best practices.
Their review:
• Ensures timely construction and/or repair of city infrastructure to
effectively meet ongoing community needs, as defined by the City’s
strategic and comprehensive plans; and,
• Establish a methodical approach to public infrastructure funding and
construction to eliminate unanticipated, poorly planned, or
unnecessary capital expenditures and to avoid sharp increases in tax
rates, user fees, or debt; and,
• Align public projects with community growth patterns and development,
as defined by the City’s comprehensive plans.
These factors provide a strong framework that ensures holistic decision-
making and promotes long-term financial sustainability. The CIP provides
a long-term plan for roadway, water, wastewater, parks and other critical
capital projects. Ultimately, the proposed FY 2026 – FY 2030 CIP has
been developed to achieve the following goals:
• Strategic Alignment and High Quality Service Delivery; and,
• Financial Sustainability and Community Resiliency; and,
• Pay-As-You-Go Funding Maximized and Coupled with Strategic Use of
Debt; and,
• Multi-Year Sustainability.
Capital Improvements Program – Capital Budget Funding
For the FY 2026 Capital Budget, 27 projects were submitted by various
departments utilizing funding from nine different funding sources, totaling
$36,716,908. A total of $23,226,908 in cash has been allocated to the CIP
program, constituting 63% of the overall capital budget.
The proposed projects include funding for roadways and pathways at
$15.585 million, water projects at $9.361 million, wastewater projects at
$575,000, stormwater projects at $3.612 million, facilities projects totaling
$500,000, park improvement projects at $6.841 million, and community
enhancement projects at $243,000.
Financial
Considerations: Various funding sources are available for capital project construction. For
FY 2026, a total of $36,716,908 is programmed across 27 projects, utilizing
funding from nine sources.
The following table shows the projects recommended for funding through
the capital budget by fund and funding type.
Fund Cash Funding Reallocation
Certificates of
Obligation
Bonds
Total Funding
General Fund $1,500,000 $2,100,000 $11,578,000 $15,178,000
Utility Fund $8,000,000 $2,113,000 $0 $10,113,000
Water Impact Fee $0 $48,000 $0 $48,000
Stormwater Utility
System $500,000 $1,200,000 $1,912,000 $3,612,000
Community
Enhancement &
Development
Corporation (CEDC)
$325,000 $0 $0 $325,000
Southlake Parks
Development
Corporation (SPDC)
$6,000,000 $640,908 $0 $6,640,908
Park Dedication Fee $300,000 $0 $0 $300,000
Hotel Occupancy Tax
Fund (HOT) $200,000 $0 $0 $200,000
Public Art Fund $300,000 $0 $0 $300,000
Total $17,125,000 $6,101,908 $13,490,000 $36,716,908
Strategic Link: F1 – Safeguarding the public trust through a commitment to thoughtful
planning and responsible, conservative financial management.
Citizen Input/
Board Review: The Southlake Parks Development Corporation and the Parks Board held
a joint meeting on January 20, 2026, and recommended approval of the
Proposed FY 2026 - 2030 SPDC Capital Improvements Program priorities.
Legal Review: None required.
Supporting
Documents: Attachment A: CIP Guiding Principles, Attachment B: Capital
Improvements Program – All Funds, Attachment C: Projects Proposed for
FY 2026 -2030
Staff
Recommendation: Approval of the FY 2026 - 2030 Capital Improvements Program
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Attachment A: Capital Improvements Program Guiding Principles
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Attachment B: Capital Improvements Program – All Funds
Fund
Total Prior
Funding
FY 2026
FY 2027
FY 2028
FY 2029
FY 2030
Beyond
Total
General Fund $60,817,804 $15,178,000 $8,786,563 $8,616,391 $36,951,210 $9,816,520 $69,703,038 $209,869,526
Utility Fund $7,442,000 $10,113,000 $17,875,000 $19,830,000 $16,095,000 $33,075,000 $98,855,000 $203,285,000
Roadway Impact
Fee Fund
$1,735,000 $0 $296,100 $311,000 $327,000 $344,000 $362,000 $3,375,100
Water Impact Fee $1,385,000 $48,000 $406,000 $64,000 $73,000 $932,000 $1,456,000 $4,364,000
Sanitary Sewer
Impact Fee
$1,201,500 $0 $115,000 $121,000 $128,000 $135,000 $1,410,000 $3,110,500
Storm Water Utility
System
$3,603,000 $3,612,000 $4,175,000 $500,000 $1,125,000 $2,950,000 $16,175,000 $32,140,000
Community
Enhancement &
Development
Corporation Fund
$1,616,000 $325,000 $0 $0 $0 $0 $0 $1,941,000
Southlake Parks
Development
Corporation
$29,796,428 $6,640,908 $6,000,000 $6,339,039 $6,000,000 $34,731,114 $100,663,532 $190,171,021
Tax Increment
Reinvestment Zone
#1
$0 $0 $0 $0 $0 $0 $0 $0
Park Dedication
Fund
$1,050,000 $300,000 $300,000 $0 $0 $0 $0 $1,650,000
Hotel Occupancy
Tax Fund
$1,900,000 $200,000 $0 $0 $0 $0 $0 $2,100,000
CCPD Fund $0 $0 $0 $0 $0 $0 $0 $0
Public Art Fund $1,577,639 $300,000 $300,000 $300,000 $300,000 $300,000 $300,000 $3,377,639
Red Light Camera
Fund
$0 $0 $0 $0 $0 $0 $0 $0
Federal Funding
(Van Duyne)
$0 $0 $0 $0 $0 $0 $0 $0
Tarrant County
Bond
$0 $0 $0 $0 $0 $0 $0 $0
City of Keller $0 $0 $0 $0 $0 $375,000 $0 $375,000
Federal Funds $0 $0 $0 $0 $0 $0 $0 $0
Grand Total All
Funds
$112,124,371 $36,716,908 $38,253,663 $36,081,430 $60,999,210 $82,658,634 $288,924,570 $655,758,786
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Attachment C: Projects Proposed for FY 2026 – 2030
(Mobility)
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Attachment C: Projects Proposed for FY 2026 – 2030
(Mobility)
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Attachment C: Projects Proposed for FY 2026 – 2030
(Mobility)
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Attachment C: Projects Proposed for FY 2026 – 2030
(Mobility)
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Attachment C: Projects Proposed for FY 2026 – 2030
(Water)
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Attachment C: Projects Proposed for FY 2026 – 2030
(Water)
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Attachment C: Projects Proposed for FY 2026 – 2030
(Water)
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Attachment C: Projects Proposed for FY 2026 – 2030
(Water)
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Attachment C: Projects Proposed for FY 2026 – 2030
(Wastewater)
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Attachment C: Projects Proposed for FY 2026 – 2030
(Wastewater)
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Attachment C: Projects Proposed for FY 2026 – 2030
(Storm Water)
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Attachment C: Projects Proposed for FY 2026 – 2030
(Storm Water)
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Attachment C: Projects Proposed for FY 2026 – 2030
(Parks)
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Attachment C: Projects Proposed for FY 2026 – 2030
(Parks)
S
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Attachment C: Projects Proposed for FY 2026 – 2030
(Parks)
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Attachment C: Projects Proposed for FY 2026 – 2030
(Parks)
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Attachment C: Projects Proposed for FY 2026 – 2030
(Community Enhancements)
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Attachment C: Projects Proposed for FY 2026 – 2030
(Facilities)