Southlake’s proposed fiscal year 2026-27 budget, which is more than $133 million, will help the city maintain its existing infrastructure and increase employee compensation.
City staff presented the proposed $133.65 million budget to council during the Aug. 18 meeting. The overall budget is a reduction of around $4 million, City Manager Alison Ortowski said.
“This budget represents more than a financial plan for us,” Ortowski said. “It really is the representation of a strategic framework that’s designed to deliver on the commitments we’ve made to the community. As we approach buildout, our work is shifting from building new stuff to caring for what is currently in the community and what the community has built.”
In a nutshell
The city projects more than $159 million in revenue compared to $133.65 million in expenses, according to city documents. The budgeted revenue is a 3% increase from what was adopted for the 2025-26 fiscal year, while expenses are down by 2.9%.
Within the budget, the FY 2026-27 general fund revenues are budgeted at $61.28 million with $57.55 million in expenditures, which results in an estimated $3.72 million surplus. Per city documents, other expenditures include:
- $35.14 million for public works
- $26.77 million for public safety
- $12.74 million for general government
- $10.26 million for community services
Additionally, the proposed FY 2026-27 budget includes a reduction of 5.55 full-time equivalent positions, said Stacey Black, Southlake’s assistant city manager and senior director of human resources. There is also a 3% cost-of-living adjustment budgeted for eligible employees.
Diving deeper
The proposed tax rate for FY 2026-27 is $0.29 per $100 valuation, which is a reduction from the current tax rate of $0.295 per $100 valuation. The proposed rate also falls below the no-new-revenue rate, Chief Financial Officer Sharen Jackson said.
Mayor Shawn McCaskill said the reduced rate is one way that the city has tried to provide tax relief for residents.
“Over the last 10 years, we’ve cut the property tax rate to match ... the increases in property values by cutting the property tax rate,” McCaskill said. "That portion of your property tax bill that is paid to the city of Southlake, as opposed to Carroll ISD or the county, has been relatively flat. This will be our lowest property tax rate in the city of Southlake in almost 50 years.”
What’s next
Council members will hold public hearings on the budget and tax rate Sept. 1 and Sept. 15. During the Sept. 15 meeting, council will consider adopting the FY 2026-27 budget and tax rate.
FY 2026-27 begins Oct. 1 and runs through Sept. 30, 2027.
