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Item 6A -Memo Do SOUTHLAKE Item 6A MEMORANDUM August 23, 2026 TO: Alison Ortowski, City Manager FROM: Sharen Jackson, Chief Financial Officer SUBJECT: Approval of the amended Fiscal Year 2026 Southlake Crime Control and Prevention District Operating Budget and adoption of the Fiscal Year 2027 Operating Budget Action Requested: Approval of amended Fiscal Year 2026 Southlake Crime Control and Prevention District Operating Budget and adoption of Fiscal Year 2027 Operating Budget. Background Information: Your packet contains the operating budget adopted by the Crime Control and Prevention District Board of Directors on July 29, 2026. The proposed operating budget provides for the continuation of the SRO funding ($2,496,546), K-9 training and equipment ($20,000), and the Town Square security initiative ($53,320). The new request for FY 2027 includes the following: • Police In-car and Body Worn Camera, TASER and Technology Replacement and Consolidation $484,138 (This funding request will support the replacement and modernization of the Police Department's critical public safety technology systems, including in-car video cameras, body-worn cameras, interview room cameras, digital evidence management, drone operations, and conducted energy weapon (TASER) programs. The investment aligns with the Department's established equipment replacement schedule and ensures these mission-critical systems remain reliable, secure, and operationally effective. In addition to replacing aging equipment, this proposal will transition these technologies to a single, fully-integrated public safety platform. Consolidating these capabilities into a single enterprise solution will improve operational efficiency, streamline evidence management processes, enhance interoperability across systems, and reduce the administrative burden of managing multiple vendors, contracts, and support structures. Currently, the Department operates in a fragmented technology environment comprising separate vendor agreements for body-worn cameras, in-car video systems, TASER devices, Cradlepoint cellular routers, and a City-managed on- premises digital evidence storage infrastructure. This approach requires independent contract administration, separate maintenance and support processes, and disconnected evidence workflows across systems. In addition, the Department's on-site digital evidence storage environment is approaching capacity while the volume of digital evidence continues to grow annually, increasing both operational and infrastructure risks. All existing camera and TASER agreements are scheduled to expire during the first quarter of FY 2027. The proposed enterprise platform will replace multiple standalone contracts with a comprehensive solution that integrates body-worn cameras, in-car video cameras, interview room recording, TASER devices, cloud- based evidence storage, drone program integration, cellular connectivity, and advanced investigative and artificial intelligence tools, all under a single vendor agreement. This is a proposed five-year contract term, and the initial year's cost in FY 2027 is $484,138. The annual cost for the remaining four years will be $484,138. 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 2027 CCPD operating funds is $3,054,004, with an operating transfer of$122,872 for indirect charges. Financial Considerations: The proposed operating budget includes projected sales tax and interest income totaling $3,071,800. $3,054,004 for operating expenditures, and a transfer out of $122,872, with an ending fund balance of$5,588,309. 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 1, 2026. 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 2026 and adoption of the proposed FY 2027 operating budget. SOUTHLAKE CRIME CONTROL AND PREVENTION DISTRICT - OPERATING FUND FY 2027 Proposed Budget 09:32 PM October 1,2026 through September 30,2027 07rzv26 $Increase/ $Increase/ 2025 2026 2026 (Decrease) %Increase/ 2027 (Decrease) %Increase/ Actual Adopted Amended Adopted -Decrease Proposed Adopted -Decrease REVENUES Sales Tax $2,602,813 $2,705,040 $2,854,000 $148,960 5.5% $2,896,800 $191,760 7.1% Miscellaneous Income 33,948 0 0 $0 0.0% $0 ($0) 0.0% Interest Income $219,586 $175,000 $175,000 LO 0.0% $175,000 LO 0.0% Total Revenues $2,856,347 $2,880,040 $3,029,000 $148,960 5.2% $3,071,800 $191,760 6.7% EXPENDITURES Personnel $2,156,927 $2,268,657 $2,268,657 $0 0.0% $2,366,535 $97,878 4.3% Operations $475,895 $431,239 $431,239 0 0.0% $687,469 256,230 59.4% Capital _$_0_ LO LO 0 0.0% Lo 0 0.0% Total Expenditures $2,632,822 $2,699,896 $2,699,896 $0 0.0% $3,054,004 $354,108 13.1% Net Revenues $223,525 $180,144 $329,104 $148,960 $17,796 ($162,348) Financed Proceeds $0 $0 $0 $0 Transfers Out-General Fund (113,480) (115,202) (121,160) (122,872) Transfers Out-Crime Control Project Fund 0 0 0 0 Total Other Sources(Uses) (113,480) (115,202) (121,160) (122,872) Beginning Fund Balance $5,375,396 $5,485,441 $5,485,441 $5,693,385 Ending Fund Balance $5.485.441 $5.550.383 $5.693.385 $5.588.309 (Reference to Section 363.203,Local Government Code,Annual Budget Proposal.) 1. The District does not have any outstanding obligations. 2. There is$5,693,385 in the Operating Fund and$1,002,182 in Capital Projects Fund estimated to be on hand as of the beginning of FY 2027 3. An estimated$2,896,800 is expected to be received by the District during FY 2027 in sales tax revenues. 4. Total revenue is estimated at$3,071,800,consisting of sales tax and interest income. 5. Total money requested to fund programs is$3,054,004 for personnel,equipment and technology. 6.Total operating transfer of$122,872 requested for indirect charge. 7. The sales tax rate is.125%. 8. There is$5,588,309 in the Operating Fund and$1,122,099 in the Capital Projects Fund estimated to be on hand as of the end of FY 2027. 9. Total revenues available to cover the proposed budget are$3,071,800 and fund balance.