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Item 3B-2 Monthly Financial Report Item 3B2 CITY OF SOUTHLAI<,,,,E MONTHLY FINANCIAL REPORT May 2026 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 •- •- IF-- 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 6/10/2026 ECONOMIC INDICATORS NATIONAL ECONOMY National GDP: he 1. s FINANCIAL ACTIVITY 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"second"estimated GDP for the 1st 5 YEAR TREND OF • • quarter of 2026 increased at a rate of 1.6%.In the $160,000,000 4th quarter of 2025,GDP increased at a rate of 0.5%. $140,000,000 Housing Starts: 9.00% Single-family housing starts in April 2026 were at a $120,000,000 seasonally adjusted rate of 930,000,which is 9.0% below the revised March figure of 1,022,000. $100,000,000 UNEMPLOYMENT RATES $80,000,000 National: 4.3% The National Unemployment rate for May 2026 $60,000,000 remained unchanged at 4.3%,compared to April 2026. $40,000,000 State-wide: v/ 4.3% The Texas Unemployment rate for April 2026 $20,000,000 (preliminary)remained unchanged at 4.3%when compared to March 2026. DFW Area: 3.8% 2022* 2023* 2024* 2025* 2026* *October-May ■Construction permit values The Dallas/Fort Worth/Arlington Metropolitan Area unemployment rate for April 2026 decreased to pr 3.8%when compared to 3.9%in March 2026. City of Southlake Monthly Financial Report 2 6/10/2026 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 $ 636,258 $ 4,794,258 $ (4,158,000) $18,000,000 Nov $ 2,561,295 $ 3,902,817 $ (1,341,522) $16,000,000 Dec $ 7,631,235 $ 4,371,726 $ 3,259,509 Jan $ 15,423,225 $ 3,803,387 $ 11,619,838 $14,000,000 Feb $ 11,349,792 $ 4,138,303 $ 7,211,489 $12,000,000 Mar $ 3,196,501 $ 4,412,803 $ (1,216,302) Apr $ 2,454,592 $ 4,049,814 $ (1,595,222) $10,000,000 May $ 3,821,199 $ 4,610,389 $ (789,190) $8,000,000 Jun $ $ $ Jul $ $ $ $6,000,000 U Aug $ $ $ $4,000,000 Sep $ Tot $ 47,074,097 $ 34,083,497 $ 12,990,600 $2,000,000 CHART OUTLOOK:—F 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 $3,000,000 432 Nov $ 2,832,105 $ 2,552,523 $ 2,383,801 Dec $ 2,832,305 $ 2,552,523 $ 2,383,801 $2,500,000 Jan $ 1,815,479 $ 1,722,503 $ 1,643,095 Feb $ 1,423,796 $ 1,470,957 $ 1,458,994 $2,000,000 Mar $ 2,062,221 $ 1,961,273 $ 1,859,641 -� __ Apr $ 2,283,345 $ 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 $ 14,419,127 $ 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(9.7%)and FY 2024 (15.9%)collections.April 2026 sales are higher than in April 2025(24.9%)and April 2024(30.5%). Year-to-date collections are above budget,so the outlook is considered positive.Staff will continue to monitor collections closely. City of Southlake Monthly Financial Report 3 6/10/2026 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 $ 415,744 $ 577,913 $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 $ 12,750,099 $ 14,130,006 $ 10,376,818 $10,000,000 Feb $ 7,078,383 $ 5,620,386 $ 5,623,897 Mar $ 511,848 $ 640,868 $ 532,180 $8,000,000 Apr $ 182,514 $ 295,560 $ 257,466 $6,000,000 May $ 176,139 $ 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 lu Aug Sep $ - $ 21,654 $ 16,945 Tot $ 28,000,833 $ 27,688,435 $ 27,299,042 *Net transfer of TIF revenues to CHART OUTLOOK: POSITIVE TIF fund As of May,the 2026 YTD property tax collections($28,000,833)are relatively flat when compared to 2025 YTD($28,187,738)and FY 2024 YTD($27,816,096). 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. PERMIT REVENUE 2026-2024 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 $ 119,083 $ 133,336 $ 90,986 Feb $ 127,714 $ 145,396 $ 93,595 $250,000 Mar $ 121,047 $ 135,536 $ 226,182 Apr $ 238,925 $ 137,408 $ 121,572 $200,000 May $ 165,017 $ 192,289 $ 198,453 / Jun $ - $ 152,593 $ 159,935 $150,000 Jul $ - $ 124,896 $ 135,053 $100,000 Aug $ $ 112,085 $ 100,564 Sep $ 117,989 $ 156,642 $50,000 Tot $ 1,164,198 $ 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($94.910+)issued for FY 2026 YTD is approximately 22.9% and 29.1%less than in FY 2025 and FY 2024, respectively. FY 2026 YTD permit revenue is 10.6%less than the FY 2025 revenue and 2.6%less than FY 2024 revenue.The permit revenue year-to-date is trending slightly above budget,so the outlook is considered positive. City of Southlake Monthly Financial Report 4 6/10/2026 EXPENDITURE ANALYSIS DEPARTMENTAL EXPENDITURES SUMMARY FY 2026 ACTUAL FY 2025 ACTUAL FY 2026 BUDGET FY 2025/2026 YTD YTD(MAY) YTD(MAY) YTD (MAY) VARIANCE BUDGET VARIANCE FY 2025%SPENT CIVIC) $ 831,835 $ 780,205 $ 938,147 $ 51,630 $ 106,312 88.67% COMM $ 564,544 $ 590,816 $ 649,421 $ (26,272) $ 84,877 86.93% CS $ 4,018,971 $ 4,193,099 $ 5,053,252 $ (174,128) $ 1,034,281 79.53% CSO $ 379,215 $ 398,684 $ 495,168 $ (19,469) $ 115,953 76.58% DPS $ 15,505,616 $ 15,503,741 $ 18,645,333 $ 1,875 $ 3,139,717 83.16% ED $ 270,406 $ 335,528 $ 352,746 $ (65,122) $ 82,340 76.66% FIN $ 2,257,550 $ 2,136,088 $ 2,411,517 $ 121,462 $ 153,967 93.62% HR $ 459,694 $ 461,376 $ 749,259 $ (1,682) $ 289,565 61.35% IT $ 2,915,417 $ 2,661,092 $ 3,573,178 $ 254,325 $ 657,761 81.59% PDS $ 1,610,097 $ 1,562,942 $ 1,851,894 $ 47,155 $ 241,797 86.94% PW $ 3,382,418 $ 3,483,236 $ 4,212,524 $ (100,818) $ 830,106 80.29% SS $ 1,887,734 $ 1,598,486 $ 2,205,492 $ 289,248 $ 317,758 85.59% Totals $ 34,083,497 $ 33,705,293 $ 41,137,931 $ 378,204 $ 7,054,434 82.85% FY 2026 ACTUAL YTD(MAY) FY 2025 ACTUAL YTD(MAY) FY 2026 BUDGET YTD (MAY) $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 $- ,. CMO 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,up 1.12%,primarily due to compensation changes and contract cost increases.The outlook is positive,as expenditures are on pace to stay within budget for the fiscal year. City of Southlake Monthly Financial Report 5 6/10/2026