Budget 101Budget 101
A guide to understanding
Southlake’s budgeting techniques,
approach, and structure
Understanding the Budget
Budget Basics
Alignment with Strategic Plan
Annual preparation process
Fund accounting
Opportunities for review & input
FY 2009 Budget
Tentative schedule
Annual Preparation Process
Budget is prepared annually
Fiscal year runs from Oct. 1 – Sept. 30
Target budget process
Modified zero-based approach
Base budget vs. supplemental requests
Structural balance
Budget calendar
Budget Calendar
Southlake
Budget
Process
Fund Accounting
Fund accounting provides a method for segregating revenues generated from a variety of sources and also provides a means for the city to track expenses directly related to those fund
sources.
General Fund
Principal operating fund
Supported by tax & other revenues
Property taxes
Sales taxes
Franchise fees
Fines
Permits
Service charges, misc. fees
Property tax rate allocation
Maintenance & operations
Debt service
General Fund
Tax rate = $.462 per $100 valuation
$.32 for general operations
$.14 for debt service
Fund balance requirements (15% - 25%)
Strategic Initiative Fund
Strategic Initiative Fund
Fast Facts
Minimizes borrowing for needed projects
No dipping into reserves for operational expenses
Limited to one time, non-recurring expenses
Funds high impact projects
Strategic Initiative Fund
Funded Projects
Capital projects
$3 million transfer to CIP
Sidewalks
Facility Maintenance Reserve Fund
Facility maintenance projects
Community enhancement projects
Technology infrastructure
Fire Service ladder truck
Ambulance
Outdoor warning system
Strategic Initiative Fund (’08)
“Southlake’s financial performance has been consistently strong. Despite growth pressures and a high debt service carrying charge, management has achieved operating surpluses in each
of the past five fiscal years. Beginning in fiscal 2006, the city council established a strategic initiative fund to finance one-time expenditures or capital projects.”
-Standard & Poors
“The utilizing general city's financial position continues to be favorable. The city recently began fund balances in excess of 25% of operating expenditures to self-fund a portion of
the city's capital needs. Moody's believes the city's conservative financial planning and commitment to maintaining sizable general fund reserves is a positive indication of credit
quality consistent with a Aa2 rating level.”
-Moody’s Investor Services
“The City’s financial position has been historically strong…”
-Fitch Ratings
What do bond rating agencies say about the
Strategic Initiative Fund?
Strategic Initiative Fund
Benefits:
Interest savings
Eliminates need to “max out” credit
Seed money for future facility maintenance
$34 million in facility assets today
DPS headquarters will be $28 million
Optimizes use of technology by funding initiatives
Critical, but expensive Public Safety equipment replaced timely
Debt Service
Supported by tax revenue (property)
Revenues used to pay debt
Debt supports the Capital Improvement Program budget
Utility Fund
Enterprise Fund
Supported by fees/rates
Intended to be self-supporting
Provision of water, wastewater and refuse services
Working capital requirement: 60 days minimum
Stormwater Utility Fund
Used to maintain & improve drainage ways
Flat residential fee = $8/month
Non-residential is based on impervious coverage or runoff potential
Southlake Park Development Corp.
Supported by ½ cent special
levy sales tax
Tax allocation
Operating Fund
Capital Projects Fund
Use restricted to allowable expenses under Section 4B of state economic development statute (parks)
Crime Control & Prevention District
Supported by ½ cent special levy sales tax
Tax allocation
Operating Fund
Capital Projects Fund
Use restricted to allowable expenses under Chapter 363 of the Texas Local Government Code
Tax Increment Financing District
Supported with property taxes captured in Tax Increment Reinvestment Zone #1
Supported by other taxing jurisdictions
Project and Financing Plan, August 1999
Town Square associated projects
(infrastructure, parks, Town Hall, etc.)
Special Revenue Funds
Dedicated income stream with particular purposes:
Reforestation
Bicentennial Concessions
Court Security
Court Technology
Recycling Funds
Library Donations
Park Dedication
Vehicle Replacement
Strategic Initiative
Hotel Occupancy Tax
Capital Improvement Program
FY 2009 = $30.4 million (all sources)
Facilities
Roads
Stormwater
Water
Parks & Trails
Sewer
Sidewalks
Opportunities for Input
SPIN meeting
Board meetings
Council Worksessions*
Public Hearings
*Presentation schedule on upcoming slide
Can I review the budget?
Filed on August 15
Online at the city’s website:
www.cityofsouthlake.com
Southlake Public Library
Presentation Schedule
Questions?
Contact:
Southlake Community Relations Office
(817) 748-8006