Page 36 - Grapevine FY19 Operating Budget

Short-term initiatives for the upcoming year

They FY 2018-19 budget reflects the City’s response to changes in the environment in which it
operates and of the key initiatives that guided its development. These initiatives reflect the choices
for the fiscal year and are consistent with the City’s long-term policies.

Continue to improve the efficiency and effectiveness of service delivery
Funding is provided for the eighth year of ‘Grapevine University’, a program which will provide
customer service and leadership development training to employees throughout the organization.
All employees are required to attend a Business Culture Guiding Values training session in which
participants are introduced to the Grapevine method of (1) How We Treat People; (2) How We
Lead Our Employees; (3) How We Manage Our Resources; (4) How We Make Decisions; and (5)
How We Confront Challenges.

Funding is also provided for the 2019 Next Generation Leadership (NGL) class. Previous classes
have implemented capstone projects designed to increase efficiency and effectiveness throughout
the organization.

Continue to explore new ways to combat spiraling health care costs
Health insurance costs are estimated at $14.9 million for FY19, which represents an increase of
18% over the previous year. Retiree claims and premiums are projected to increase by 30%, as
more “baby boomers” reach retirement age and leave the workforce. In a change from previous
years, health insurance costs are now allocated across the respective funds, rather than budgeted
solely via the General fund.

The FY19 budget continues funding for programs geared toward reducing health care cost by
developing proactive approaches for assessment and prevention. Programs include Airrosti,
Naturally Slim, FitBits, Weight Watchers at Work, and financial incentives for smoking cessation.
Also included is the popular Lunch and Learn series, which covers a wide variety of topics to
promote health and wellness.

Continue to use excess reserves to invest in “Quality of Life” capital projects
The City Council has adopted the policy of maintaining a 20% fund balance in the General Fund.
All reserves in excess of the 20% threshold are to be transferred to the Quality of Life CIP fund at
fiscal year-end. The FY19 budget projects excess reserves of $3 million to be transferred to the
Quality of Life CIP fund at fiscal year-end. To date, the General fund has made contributions in
excess of $44 million to the fund.

Continue to enhance tourism by promoting Grapevine as a “destination”
The City Council approved an ordinance increasing the hotel occupancy tax rate from 6% to the
maximum state authorization of 7%. This change took effect October 1, 2014 and allows the
Convention and Visitors Bureau more flexibility to compete with other localities for major
conventions and events. With the establishment of the CVB Incentives fund, the monies collected
by the 1% additional tax are segregated from other CVB funds and restricted for use to attract new
group business and new hotel room development as a part of our Economic Development efforts.
Since its inception, the additional tax has generated $9.9 million, and is projected to generate $2.7
million in FY19.

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