Page 43 - Grapevine FY19 Operating Budget

The assessed value of all taxable property is an important measure of the capacity of the tax base
to support present and future revenue needs, particularly in terms of debt obligations. The ratio
of net direct debt as a percentage of net taxable value is relevant for local governments that
depend on property taxes as the primary source of debt service revenues. The City’s FY18 ratio
of net direct debt as a percentage of assessed value is 1.06%.

Year Net Direct Debt Net Taxable Value Ratio

2004 $94,245,000 $4,894,958,382 1.96%
2005 $94,965,000 $5,243,478,637 1.81%
2006 $94,531,601 $5,230,966,070 1.81%
2007 $92,535,000 $5,815,838,701 1.59%
2008 $79,538,716 $5,954,088,371 1.33%
2009 $77,725,000 $5,829,604,089 1.33%
2010 $75,596,365 $5,864,643,146 1.29%
2011 $68,589,652 $5,912,257,208 1.16%
2012 $62,359,082 $6,082,785,223 1.02%
2013 $122,903,477 $6,246,787,751 1.96%
2014 $114,209,419 $6,593,129,832 1.73%
2015 $97,648,222 $6,303,722,379 1.55%
2016 $86,254,210 $7,274,810,676 1.18%
2017 $82,809,564 $8,037,334,886 1.03%
2018 $92,808,409 $8,730,311,903 1.06%

Debt Policy

The City’s policy is to use bond proceeds for capital expenditures only. Such revenues are never to
be used to fund normal City operations. The City Council has also set a goal of capping net
general debt service at 25% of the General Fund budget.

Net General Debt Service as Percentage FY16 FY17 FY18 FY19
of General Fund Expenditures Actual Actual Estimate Approved

General Debt Service 17,528,689 17,843,122 15,519,665 15,989,541
Less: Transfer Funding (2,677,080) (4,087,250) (3,097,099) (2,454,135)
Net General Debt Service 14,851,609 13,755,872 12,422,566 13,535,406

General Fund Expenditures 67,064,962 68,771,115 66,930,590 67,724,922

Percentage of General Fund Expenditures 22% 20% 19% 20%

35